Charter Agreement

Charter Agreement for Boat (E.G., Sailboat or Motor Yacht)

Charter Agreement made on the day of , 20, between

of , referred to herein as Charterer, and , Inc., a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Owner.

Owner hereby leases to Charterer the , , registration no. (the Vessel), subject to the following terms, conditions, and agreements:

I. Condition on Delivery

A. The Vessel is a -year-old , valued at $, with an overall length of feet, a beam of feet, and a mean draft of feet, inches, with accommodations for persons total. The Vessel was overhauled and inspected by Owner on , and at that time was found or made to be seaworthy and otherwise in good condition.

B. Charterer, at the expense of Charterer, may obtain a survey of the Vessel by a qualified marine surveyor prior to acceptance. If the report of this survey is that the Vessel is not seaworthy and in good condition, then this Agreement shall terminate and Owner shall reimburse Charterer for all of expenses incurred by Charterer in connection with this Agreement, including those of the survey.

III. Term and Rent

The initial term of this Agreement is months at a rate of $ per month payable in advance at the office of Owner at . Receipt of the first month's rent is acknowledged by Owner. After the expiration of the initial term, this Agreement shall continue on a month-to-month basis subject to termination by either party by written notice at least days prior to the end of any month.

IV. Security Deposit

Owner acknowledges that Charterer has deposited with Owner as security $ and Charterer agrees that this deposit shall be security for performance of Charterer's obligations under this Agreement. At Owner's option, this sum may be applied to satisfy any obligation of Charterer that may be in default, but neither the making of this deposit nor its use by Owner shall excuse Charterer from performance of any such obligation.

V. Location of Use

The vessel will be permanently berthed at at . Charterer shall give Owner days' written notice of any change in permanent berthing of the Vessel.

Charterer shall not remove the Vessel from the following defined geographic area without the prior written permission of Owner:

VI. Limitation on Use

The Vessel shall be used only for general pleasure cruising and recreation, and Charterer shall not carry passengers or cargo for hire.

VII. Liability for Loss or Damage

Charterer assumes all risk of loss of and damage to the Vessel from any cause. In the event of loss of or damage to the Vessel, Charterer at the option of Owner shall:

A. Place the vessel in good repair;

B. Surrender the Vessel to Owner and pay the lowest of three shipyard repair estimates obtained by Owner, and this Agreement shall terminate upon such payment; or

C. If the Vessel is lost, pay Owner in cash the value of the Vessel as set forth in Section I, and this Agreement shall terminate upon such payment.

Obligations of Charterer established in this Section shall be abated to the extent of insurance payments received by Owner.

VIII. Return of Vessel

On expiration or earlier termination of this Agreement, Charterer shall return Vessel to Owner by delivering it to the harbor at which Charterer accepted it, or at such other location within miles of the harbor as Owner shall direct, free of all liens and encumbrances and in good repair, ordinary wear and tear resulting from proper use alone excepted.

IX. Insurance

Charterer shall purchase from an insurance company acceptable to Owner, and subsequently maintain in full force and effect, insurance policies made payable to Owner in the following amounts:

A. Standard yacht hull insurance providing full marine coverage of $.

B. Protection and indemnity insurance of $.

X. Inventories of Fuel and Stores

The Vessel shall be delivered to Charterer with fuel and potable water tanks topped off, and with the following provisions and stores:

Charterer shall return the Vessel to Owner at the expiration of this Agreement with the same stores and fuel on board, or pay Owner for any shortages at retail prices.

XI. Alterations

Charterer shall make no alterations in or to the Vessel without the prior written permission of Owner. Any such alterations permitted by Owner shall be at the sole expense of Charterer and shall be the property of Owner.

XII. Defaults

The difficulty of securing an owner's interest in a chartered vessel requires Owner to reserve the right of summary repossession. Accordingly, Charterer agrees that any failure to pay rent as required by this Agreement within days of the due date or any failure to perform in accordance with the terms and conditions of this Agreement shall constitute an immediate default, and Owner shall have the right to seize Vessel wherever it may be found, summarily and without notice.

In the event of such default and consequent repossession by Owner, this Agreement shall terminate after Charterer has paid all rent due and any other amounts payable pursuant to this Agreement.

XIII. Maritime Liens

Charterer shall not incur any maritime liens or other encumbrances on the vessel other than for salvage, and shall not remove or deface any notice that may be posted on Vessel by owner as evidence of Owner's interest.

XIV. Indemnity

This Agreement is a demise charter, and Owner maintains no control over Charterer's use of Vessel except as set forth in this Agreement. Therefore, Charterer shall indemnify and hold harmless Owner from and against all claims, actions, proceedings, damages, and liabilities, arising from or connected with Charterer's possession, use, and return of Vessel.

XV. Assignment

Charterer shall not assign or sublet Charterer's interest in Vessel without the prior written consent of Owner. Owner may assign Owner's right to payments under this Agreement by written notice to Charterer.

XVI. Attorney’s Fees

If any action is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all other sums that either party may be called upon to pay, a reasonable sum for the successful party's attorney's fees.

XVI. Operation of Vessel

Charterer certifies that Charterer is at least years old and that he/she understands fully, and is experienced in, the navigation of the class of vessel chartered and is experienced in the use of the equipment provided.

Charterer further certifies that he/she will not operate the Vessel while under the influence of alcohol or narcotics or permit any other person to operate it in such condition, and that Charterer will neither use it nor permit it to be used for any illegal purpose.

XVII. Limitation of Warranty

Owner has not made and does not make any representation, warranty, or covenant, express or implied, with respect to the condition, quality, durability, or suitability for Charterer's intended use of the Vessel excepting only that the Vessel was seaworthy and in good condition when last inspected on . Owner will not be liable to Charterer for any liability, loss, or damage caused or alleged to be caused directly or indirectly by the Vessel, by any inadequacy of, or defect in, or any incident in connection with, the Vessel.

XVII. Mandatory Arbitration

Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

WITNESS our signatures as of the day and date first above stated.

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