Vessel Charter Agreement

Vessel Charter Agreement

This Vessel Charter Agreement (the Agreement) is made as of by and between Owner: , Owner Address: (hereafter referred to as Owner), and Charterer: , Charterer Address: (hereafter referred to as Charterer). Owner and Charterer are each a party and collectively the Parties.

RECITALS

WHEREAS, Owner is the lawful owner of the vessel described below and has full authority to grant possession thereof for the purposes and upon the terms set forth herein; and

WHEREAS, Charterer desires to hire the vessel for commercial use consistent with the terms of this Agreement and Owner is willing to deliver possession of the vessel to Charterer for the agreed Charter Period; and

WHEREAS, the Parties intend by this Agreement to set forth their entire agreement with respect to the chartering of the vessel, the obligations of each party, and remedies for breach.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "Vessel" means the vessel identified below, including its hull, equipment, gear and appurtenances, and any replacements or substitutions thereof.

1.2 "Charter Period" means the period commencing on the Delivery Date and ending on the Redelivery Date as set forth in Section 3.

Vessel Particulars

2. CHARTER

2.1 Owner hereby grants to Charterer, and Charterer accepts from Owner, the use and possession of the Vessel for the Charter Period, subject to the terms, conditions and limitations set forth in this Agreement. The grant of possession is exclusive to Charterer for the agreed operations and will include the Vessel's certificates and documents necessary for legal operation while under Charterer's control.

2.2 Permitted Use: Charterer shall use the Vessel only for lawful commercial activities expressly permitted by Owner in writing and shall not employ the Vessel in contravention of applicable laws, for illegal cargo, or in any manner that would render the Vessel unseaworthy.

3. CHARTER PERIOD

The Charter Period shall commence on Delivery Date: and shall terminate on Redelivery Date: , unless sooner terminated in accordance with this Agreement.

4. DELIVERY AND REDELIVERY

4.1 Delivery Location: Owner shall deliver the Vessel at in safe, seaworthy condition, with certificates valid as of delivery.

4.2 Redelivery: Charterer shall redeliver the Vessel at the termination of the Charter Period to in the same reasonable condition as received, ordinary wear and tear excepted. Any deficiencies shall be itemized and charged to Charterer in accordance with Section 6.

5. HIRE AND PAYMENT

5.1 Hire: Charterer shall pay Owner hire in the aggregate amount of per , payable in advance on the first day of each period unless otherwise agreed in writing.

5.2 Payment Terms: Payments shall be made to Owner at Owner's bank or account details provided in writing. Late payments shall accrue interest at a rate of per annum or the maximum permitted by law, whichever is less.

6. SECURITY AND DAMAGE

6.1 Security Deposit: Upon execution of this Agreement, Charterer shall deposit with Owner a security deposit of to secure Charterer's performance. Owner may apply such deposit to repair damage, unpaid hire or other charges; any balance shall be returned within thirty (30) days of redelivery.

6.2 Damage Repair: Charterer shall be responsible for damage to the Vessel caused by Charterer's negligence or breach, and shall promptly reimburse Owner for the reasonable cost of repair, as evidenced by invoices or repair statements.

7. OPERATION, MAINTENANCE AND REPAIRS

7.1 Charterer shall operate and maintain the Vessel in a prudent, workmanlike manner consistent with industry standards. Routine maintenance, cleaning and minor repairs during the Charter Period are the responsibility of Charterer at Charterer's expense unless otherwise agreed in writing.

7.2 Major repairs required due to preexisting defects, Owner's failure to disclose, or inherent structural issues shall be the responsibility of Owner, provided Charterer notifies Owner promptly and gives Owner a reasonable opportunity to remedy such condition.

8. CREW AND MANNING

8.1 Unless otherwise agreed, Charterer shall provide, at Charterer's expense, competent crew and officers required for lawful operation of the Vessel. All crewing arrangements must comply with applicable flag state and port state requirements.

9. INSURANCE AND INDEMNITY

9.1 Insurance: Owner shall maintain hull and machinery insurance and protection & indemnity insurance covering Owner's interests in the Vessel up to commercially reasonable limits. Charterer shall maintain, at Charterer's expense, liability insurance, cargo insurance (where applicable), and any other insurance required by law or by Owner.

9.2 Indemnity: Charterer shall indemnify, defend and hold Owner and its officers, agents and employees harmless from and against any loss, damage, claim, liability, cost or expense arising from Charterer's use of the Vessel, Charterer's breach of this Agreement, or the acts or omissions of Charterer's employees, agents or subcontractors, except to the extent caused by Owner's gross negligence or willful misconduct.

10. LIENS AND ENCUMBRANCES

Charterer shall not permit any liens, mortgages or encumbrances to be placed upon the Vessel by reason of Charterer's acts or omissions. Charterer shall promptly discharge any such lien at Charterer's expense and shall indemnify Owner for any cost, expense or loss resulting from such lien.

11. SUBCHARTER AND ASSIGNMENT

Charterer shall not subcharter, transfer or assign its rights or obligations under this Agreement, in whole or in part, without the prior written consent of Owner, which consent shall not be unreasonably withheld. Any unauthorized assignment shall be void and constitute a material breach.

12. TERMINATION

12.1 Either Party may terminate this Agreement upon material breach by the other Party that remains uncured for a period of thirty (30) days after written notice specifying the breach. If the breach cannot reasonably be cured within thirty (30) days and the breaching Party commences cure within the thirty (30) day period and diligently proceeds to cure, the cure period may be extended.

12.2 Upon termination, Charterer shall promptly redeliver the Vessel in accordance with Section 4 and shall remain liable for all accrued obligations, including unpaid hire, damages and costs of redelivery.

13. SURVEY AND INSPECTION

Owner or its designated surveyor shall have the right to inspect and survey the Vessel at reasonable times upon reasonable notice to Charterer, except in case of emergency where immediate access shall be permitted. Any such survey shall not unreasonably interfere with Charterer's operations.

14. FORCE MAJEURE

Neither Party shall be liable for failure or delay in performing its obligations hereunder if and to the extent such failure or delay is caused by an event beyond the Party's reasonable control, including but not limited to acts of God, war, strikes, lockouts, epidemics, governmental actions, or natural disasters; provided the affected Party gives prompt notice and uses commercially reasonable efforts to resume performance.

15. NOTICES

All notices, demands or other communications required or permitted under this Agreement shall be in writing and shall be deemed duly given when delivered personally, by certified mail, return receipt requested, or by overnight courier to the addresses below or to such other address as either Party may designate by notice in accordance with this Section.

16. AMENDMENTS; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties. No waiver of any breach shall be deemed a waiver of any subsequent breach.

17. COUNTERPARTS

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by electronic means shall be binding.

18. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction designated by the Parties: without regard to its conflict of laws principles.

19. ENTIRE AGREEMENT

This Agreement, together with any schedules, attachments or written addenda signed by the Parties, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written.

20. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the Parties shall negotiate in good faith to replace any invalid provision with a valid provision that most closely approximates the intent of the invalid provision.

21. MISCELLANEOUS

21.1 Remedies: The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law. Equitable relief, including injunctive relief, shall be available to either Party for breaches for which monetary damages are inadequate.

NOTICES CONTACTS

Sign Now