Charter Broker Terms

In order to conduct business and reserve any of our fleet for your clients. Your yacht brokerage must:

Provide proof of escrow and business bank accounts, a valid business/trade license, a charter yacht website and a separate business phone
Agree that Broker commission is fifteen percent (15%) of the base charter rate, unless otherwise specified. Always double check current commission rates.
Abide by the CYBA code of ethics: http://www.cyba.net/wp-content/uploads/2009/01/Standing-Rules-2013.pdf

CONFIRMATIONS: Paradise Yacht Clearing, LLC (PYC), the Clearing House for Whiskey Business & Raisin Sail Island Charters will issue a booking confirmation number to the entitled charter yacht broker automatically. No need to request it.

CANCELLATIONS: Should the charterer cancel before the charter begins, deposits will be refunded under the following conditions; If the yacht is rebooked for the same period or portion thereof, deposits paid will be refunded pro rata. If rebooking is not possible, no refund will be made.

SHORT TERM CHARTERS: In conformance with other Virgin Islands-based clearinghouses, PYC uses the “divide-by-six rule” for calculating short term charter premiums. Charter fees shown on PYClearing.com are for 7 nights aboard. For charters of six (6) nights, use six sevenths (6/7ths) of a weekly rate. For charters of 5 nights or less, the fee is calculated by dividing the weekly rate by six (6), then multiplying that figure by the number of nights of charter.

Other Terms are in accordance with CYBA guidelines shown below:

From the Charter Yacht Brokers Association International (CYBA):
Confirmation

Once you have received a deposit in cleared funds, and a signed agreement, contact the clearinghouse to confirm the charter. PYC will issue a confirmation number.
Once the confirmation number is issued, cancellation penalties will apply. For this reason, it is important to have the signed agreement from your client and the deposit in cleared funds before committing to a confirmation.
Ensuring that the owner has signed the charter agreement is the best guarantee that he/she is willing to perform the charter according to the terms outlined in the agreement. Insist that the owner submit a preliminary, signed agreement prior to remitting the client’s funds to escrow.
Deposit money, less your commission, must be received by US Bank or the clearinghouse’s trust account within twenty-one (21) days of confirmation. Late payments are a breach of contract and cancellation penalties can be imposed. It is strongly recommended that you use the CYBA Charter Yacht Escrow Account, whenever possible, in order to safeguard your client’s funds.
Always check with the PYC as to the payment schedules of each yacht booked, and the name of the account the check should be made out to, to ensure that the payment is applied correctly.
All communications to PYC should include the confirmation number, lead charterer’s name, start/end dates, ports, the charter rate, any additional fees, and payments.
Once the booking is confirmed; any material changes to the charter (ports, dates, number of guests etc.) should be confirmed by addendum to the original agreement.
Anytime you use the CYBA Charter Yacht Escrow Account, a copy of both the deposit form and your agency check should be sent to PYC, confirming that the payment terms are being adhered to.
Any broker who habitually violates a clearinghouse’s payment procedures may be placed on a cash only basis. This means future bookings will not be guaranteed until PYC receives payment in cleared funds.

Commissions:
Deducting Your Commission

Brokers normally deduct their commission from the first deposit and send the balance to US Bank or the clearinghouse.
On charters booked more than six months in advance, brokers take half of their commission from the first twenty-five percent (25%) and the other half from the second twenty-five percent (25%) deposit.
No commission is paid on sleep-aboard fees, relocation fees or taxes.

Direct Booking
Brokers earn fifteen percent (15%) of the base charter-rate – unless otherwise specified by the yacht. Always check to ensure that you know the current commission rate.

Travel Agent Booking
Many, but not all vessels operating on CT/CIT terms increase commissions to twenty percent (20%) when brokers book a charter involving a travel agent. In this case it is customary to split the commission evenly: ten percent (10%) to the broker and ten percent (10%) to the travel agent. Upon confirmation of a charter with a travel agent, a copy of the travel agency’s check, payable to the broker’s company, should be faxed to PYC to confirm that a twenty percent (20%) commission is due.

Payment Schedules
In most cases charters booked more than six months in advance, the following deposit schedule applies:

Twenty-five percent (25%) of the charter rate is required to confirm the charter.
Twenty-five percent (25%) of the charter rate is due six months prior to the charter.
Fifty percent (50%) of the charter rate (plus any additional fees – APA, taxes, delivery, etc.) is due thirty days (30) prior to the departure date.
For charters booked less than six months in advance, the following deposit schedule usually applies:
- Fifty percent (50%) of the charter rate is required to confirm the charter.
- Fifty percent (50%) of the charter rate (plus any additional fees – APA, taxes, delivery, etc.) is due thirty days (30) prior to the departure date.

Note – Final Payment:
You must submit the final payment in a timely manner to ensure that the funds reach the clearinghouse no later than thirty (30) days prior to departure date. Most brokers request that the final balance be in their hands forty-five (45) days prior to the departure date, unless received by wire transfer or direct deposit.

SPECIAL CONDITIONS

If an official government travel ban and/or quarantine is issued due to Covid-19 (Coronavirus) be it for either incoming or departures, by the country of residence, the country of charter embarkation, or country of charter disembarkation for the YACHT, as noted on page one of the Agreement, prior to the commencement of the CHARTER PERIOD, the CHARTERER & OWNER shall agree in writing to re-schedule the original CHARTER PERIOD to a one-time mutually agreed period, based upon location and availability of the YACHT, and to take place within one year of the original charter dates.

The CHARTER has agreed to cruise the sailing area of the U.S. Virgin Islands(USVI) only. If the British Virgin Islands(BVI) reopens to marine traffic between the BVI and the USVI, the OWNER & CREW agrees to include the British Virgin Islands in the yachts area of sail. The CHARTER and all guests must have a valid passport and/or Visas to travel to the BVI. The CHARTER recognizes that the port & customs fees required by the British Virgin Island upon entry may increase. The CHARTER agrees to pay the difference in cost for port & customs fees for anything above $1,000 if any is due upon entry to the BVI.

CLAUSE 1. AGREEMENT TO LET AND HI RE: The OWNER agrees to deliver the Yacht at the time and place stated on the first page of this agreement and the CHARTERER agrees to pay the fee and other agreed charges on or before the dates specified in this Agreement.

CLAUSE 2. CHARTER FEE/ TERMS AND CONDITIONS:

Unless specified otherwise under Special Conditions, the Total Charter Fee includes the hiring of the vessel, the services of a fully licensed Crew, meals, standard ship's bar, fuel, cruising taxes and permits, clearance taxes, mooring fees and all expenses related to running of the Yacht and use of on-board leisure and sports equipment.

Unless otherwise specified under Special Conditions, the Total Charter Fee excludes suggested Crew gratuities (discretionary) at customary rate of 15-20% of Charter Fee, at guest discretion; scuba diving and equipment; premium beverages and fine wines; excessive alcohol requests and/or consumption; off yacht excursions; dockage as requested by the CHARTERER; fishing licenses (if required); communications; airport transfers; or similar expenses incurred by the CHARTERER.
Any excluded expenses detailed in Clause 2.B, above, shall be settled by the CHARTERER in cash, or upon other agreed means, prior to disembarking the Yacht.

If the number of charter guests changes before the CHARTERER makes the final payment, the OWNER and the CHARTERER will enter into an addendum and the Charter Fee will be adjusted upward or downward based on the Charter Fee for that number of guests at the time of the signing of this Agreement.

The CHARTERER shall not bring pets on board unless by prior arrangement of the OWNER and the Crew.

CLAUSE 3. GENERAL CONDITIONS:

Conduct, safety and entertainment of children on board are the responsibility of the CHARTERER.

The CHARTERER and all Guests understand that passports shall be required to legally clear through Customs if a foreign country is visited during the Charter. The CHARTERER and all Guests are responsible for ensuring they have a valid passport and acquiring a travel Visa if required due to their citizenship.

If smoking is permitted by the Crew, smoking is only permitted in a designated area and only on deck. No smoking below deck.

The OWNER shall not be held responsible for expenses, travel-related or otherwise, incurred by the CHARTERER or his/her Guests in connection with this Agreement.

CLAUSE 4. PAYMENTS: Unless otherwise agreed between all parties, the CHARTERER shall pay the Charter Fee according to schedule outline on page 1 to the BROKER'S Escrow or Client Account for onward transmission of cleared funds less commission fees to a Trust Account or STAKEHOLDER's Escrow or Client Account upon BROKER's receipt of the fully executed Agreement. The funds will be disbursed to the OWNER by the STAKEHOLDER as follows: Ten (10) calendar days prior to the start of the charter or the next banking day, the STAKEHOLDER will disburse to the OWNER not more than 35% of the Charter Fee, plus any delivery fees or additional expenses as may be applicable. The balance of the Charter Fee shall be disbursed by the STAKEHOLDER to the OWNER on the first day of the Charter Period (or the next banking day if the Charter Period commences on a banking holiday). It is further understood that all Charter Fee payments shall be deemed earned and non-refundable unless otherwise set forth herein.

CLAUSE 5. DEFAULTS IN PAYMENT: If the CHARTERER fails to pay any sum due under this Agreement when due, the BROKER shall immediately notify the CHARTERER in writing. If the CHARTERER fails to cure the payment default within ten (10) calendar days of such notice, the OWNER shall have the right to deem this Agreement repudiated and thereby cancelled by the CHARTERER and all deposits, less BROKER's commission, shall be immediately payable to the OWNER upon the OWNER'S written demand made via the BROKER to the STAKEHOLDER.

CLAUSE 6. CANCELLATIONS: Any cancellation of this Agreement before the start of the Charter Period must be made in writing to the BROKER, who shall immediately notify all other parties. The following terms shall apply:

CANCELLATION BY CHARTERER: If the CHARTERER cancels the charter before the start of the Charter Period, the OWNER may retain any amounts paid by the CHARTERER as of the date of cancellation and any amounts due but unpaid as of the date of cancellation will remain payable. The OWNER and the BROKER shall use reasonable efforts to book a new charter for all or part of the Charter Period. If the OWNER books a new charter for all or part of the Charter Period, the CHARTERER will receive a refund equal to the net proceeds of the new charter after deducting 20% of the Charter Fee (covering the BROKER's commission, the STAKEHOLDER's fee, and administrative costs) and any expenses incurred by the OWNER due to the CHARTERER's cancellation for the cost of provisions and special requests. If, despite reasonable efforts, the OWNER is unable to book a new charter, the CHARTERER will receive no refund.

CANCELLATION BY OWNER: If the OWNER gives notice to cancel this Agreement for any reason other than Force Majeure (as defined in Clause 9), then the OWNER shall reimburse the CHARTERER (through the BROKER) for the full amount of all payments made by the CHARTERER under this Agreement. The OWNER shall pay all commissions due to the BROKER and fees due to the STAKEHOLDER.

CLAUSE 7. BROKERAGE: The OWNER and the CHARTERER recognize the BROKER named on the first page of this Agreement as the sole broker in connection with this Agreement. The BROKER and the designated STAKEHOLDER shall be collectively referred to as AGENTS for the purpose of this clause. The OWNER agrees to pay said AGENTS their customary and usual agents' fees in connection with this charter, deemed earned as of the effective date hereof and upon receipt of the first deposit. If the OWNER and the CHARTERER agree to extend the Charter Period, the OWNER shall pay the STAKEHOLDER and the BROKER their fee and commission on the extension on the same basis as for the original Charter Period. For a period of 2 years from the end of the Charter Period, the OWNER agrees to instruct the Yacht's Captain and Crew and the OWNER'S other employees and agents to not solicit future business from the CHARTERER without the written consent of the BROKER. The CHARTERER understand and agree that the function of the BROKER is solely that of arranging the Charter and the function of the STAKEHOLDER is solely to perform the duty of maintaining funds, disbursing same pursuant to this Agreement, and abiding by any further agreement entered into by the CHARTERER and OWNER regarding funds in her/his/its possession or control. The AGENTS are not responsible for the CHARTERER'S, OWNER'S or Crew's actions at any time, nor will the AGENTS be liable for any delays, substitutions, equipment, change in services, accommodations, or any changes in the itinerary deemed necessary. The OWNER and the CHARTERER, jointly and severally, agree to indemnify, hold harmless, and defend the AGENTS from any and all claims by either of them (including any of the CHARTERER's guests, invitees, employees, agents, and third parties) for any liabilities for loss, damage, personal injury, death, or any claims whatsoever arising in relation to this Agreement, but excluding any claims connected to mishandling or mismanagement of Charter Fees held in Escrow, Trust, or a Client Funds account. Further, the OWNER shall not be responsible to the CHARTERER for any breach of duty by the BROKER or STAKEHOLDER as regards the deposit funds. The BROKER agrees to indemnify, hold harmless and defend the OWNER and STAKEHOLDER for any claims related to mishandling or mismanagement or the like of Charter Fees held in the BROKER's Escrow or Client account. The STAKEHOLDER agrees to indemnify, hold harmless and defend the OWNER and the BROKER for any claim related to the mishandling or mismanagement or the like of Charter Fees held in the STAKEHOLDER's Escrow or Client Funds account.

CLAUSE 8. DELIVERY: The OWNER shall deliver the Yacht at the port of Boarding in full commission and in proper working order, having all licenses required for any jurisdiction within the CRUISING AREA, outfitted as a yacht of her size, type and accommodations, with full equipment, inclusive of that required by law, and fully furnished, including a fully equipped galley, linens and towels; in staunch, clean and good condition throughout and ready for service as per requirements set forth herein. The OWNER does not warrant the Yacht's comfort in bad weather conditions. The OWNER and Crew shall apply best efforts to have onboard at time of Charter those on-board leisure and sports items as set forth in the Yacht's specifications as of date hereof, or a reasonable comparable alternative item of sports gear, water toys and other amenities. If any such item is of significant importance to the CHARTERER this has been addressed within SPECIAL CONDITIONS herein. The absence of any such notation indicates the acceptance by the CHARTERER of a reasonable comparable or alternative item.

CLAUSE 9. FORCE MAJEURE: "Force Majeure" means any cause beyond the OWNER's reasonable control, including war, terrorist acts, civil unrest, strikes, government action (including travel restrictions and quarantines), accidents, tropical storms, hurricanes, lightning strike, and other natural disasters. Shipyard delays, crew changes, and mechanical/machinery breakdown, do not constitute Force Majeure and will be resolved per Clause 6. B. Although lightning strike is force majeure, the CHARTERER will be entitled to a full refund in this circumstance, and the OWNER shall not be liable to pay commissions.

An event of Force Majeure will not terminate this Agreement or alter the party's rights and obligations except as expressly set forth in this Agreement.

CLAUSE 10. DELAY IN DELIVERY/ FAILURE TO DELIVER:

If by reason of Force Majeure, the OWNER fails to deliver the Yacht to the CHARTERER at the port of Boarding at the commencement of the Charter Period, but delivery is made within twenty-four (24) hours, or within one-seventh (117th) of the Charter Period, whichever is shorter, the OWNER shall pay to the CHARTERER a refund of the Charter Fee for the missed time at a pro rata rate, OR, if mutually agreed, the Charter Period shall be extended by a time equivalent to the delay. The OWNER shall invoke Force Majeure in such instance by providing written notice to the CHARTERER (through the BROKER) as soon as is practicable, but in no event more than five (5) business days after the triggering event.

If, for reasons other than Force Majeure, the OWNER fails to deliver the Yacht to the CHARTERER at the port of Boarding within the time period of twenty-four (24) hours or within one-seventh (1/7) of the Charter Period, whichever is shorter, without the prior consent of the CHARTERER in writing (through the BROKER), the CHARTERER shall be

entitled to treat this Agreement as repudiated and cancelled by the OWNER which will invoke Clause 6.B of this Agreement and the CHARTERER shall have the same entitlements as referred to therein.

If, due to Force Majeure, the OWNER cannot make the Yacht available to the CHARTERER at the Port of Boarding, the OWNER shall notify the CHARTERER (through the BROKER) as soon as reasonably practicable, but in any case within fifteen (15) days after the occurrence of the relevant event. If the Force Majeure event occurs within 14 days of the commencement of the Charter Period then the OWNER shall notify the CHARTERER within 24 hours of the occurrence of the event. The CHARTERER shall elect one of the following within fifteen (15) days after receiving such notice:

The CHARTERER will receive a credit equal to the Charter Fee to be applied to a rebooked charter of the Yacht within twelve (12) months after the original Charter Period. The CHARTERER shall provide dates for the rebooked charter no later than sixty (60) days after cancellation. These dates must be when the Yacht is available according to its public calendar. The CHARTERER and the OWNER will enter into an addendum to this Agreement recording the new Charter Period and any other changes. The CHARTERER will not incur a rebooking fee and all funds paid by the CHARTERER as of cancellation will remain in the STAKEHOLDER's or mutually agreed Trust Account. If the CHARTERER fails to provide new dates within sixty (60) days after cancellation, the Charter Fee, less the STAKEHOLDER's and the BROKER's fees and commissions, will be disbursed to the OWNER. If the Yacht is not available within the cruising area at any time within twelve (12) months after cancellation, or if, after rebooking, the Yacht is sold and the purchaser is unwilling to assume the rebooked charter, the CHARTERER's credit may be applied toward a different Yacht booked by the BROKER. In that case, any funds held by the STAKEHOLDER will be transferred to the BROKER. The BROKER shall hold the funds until the CHARTERER enters into a charter agreement with another owner. Once the CHARTERER enters into an agreement with another owner, the funds will be held and disbursed subject to that agreement and this Agreement will terminate. If the CHARTERER does not enter into a charter agreement with another owner within twelve (12) months after cancellation, this Agreement will terminate, and the CHARTERER will receive a refund for the credit less the BROKER's commission.

The CHARTERER will receive a refund of all the payments made less a 35% cancelation charge from the Charter Fee. The BROKER and the STAKEHOLDER will be entitled to retain their commission and fee, respectively.

If, due to governmental mandate or travel ban, the CHARTERER cannot reach the Port of Boarding within twenty-four

(24) hours, or one-seventh (1/7) of the Charter Period, whichever is shorter, after the commencement of the Charter Period, the CHARTERER shall notify the OWNER (through the BROKER) as soon as reasonably practicable, provide proof of such inability to the OWNER, and elect one of C (i) or (ii) above within fifteen (15) days after giving such notice.

CLAUSE 11. BREAKDOWN/DISABLEMENT: If, without the CHARTERER's fault and once the Charter has commenced, the Yacht breaks down or becomes disabled or damaged by any cause, including, without limitation, collision, fire, or lightning strike, so as to prevent the CHARTERER from using the Yacht for a period of twenty-four (24) consecutive hours or longer, the CHARTERER may terminate the charter by giving written notice to the captain or the OWNER, in either case with a copy to the BROKER. In that case, the OWNER shall refund the Charter Fee to the CHARTERER pro rata for the portion of the Charter Period after such breakdown, disablement, or damage occurred or began, and the OWNER will remain liable to pay the full commission and fee to the BROKER and the STAKEHOLDER, respectively.

CLAUSE 12. CAPTAIN'S AUTHORITY: The OWNER warrants that the Captain meets all requirements necessary to legally command the Yacht in the Cruising Area(s). The Captain remains in full command, with responsibility for the safety of the Yacht and all persons aboard, and shall have the absolute authority to terminate or cancel this Charter at any time he or she deems necessary in an event of Force Majeure or safety concern. Captain has the authority to make final calls regarding all aspects of the Charter, including but not limited to, anchoring, sailing, use of water toys and equipment and health hazards that he/she will affect the safety and well being of all aboard. The Crew shall advise the OWNER and BROKER of any such concerns as early as practicable, but the Captain's decision-making authority on all such matters shall remain absolute.

Without prejudice to Clause 17, if there is a breach of the restrictions in Clauses 13, 14, 16, 18, or 19 of this Agreement and that breach continues after the Captain has given first a oral and then a written warning to the CHARTERER, he shall inform the

BROKER and OWNER, and the OWNER may terminate this Agreement. The CHARTERER and all Guests shall immediately disembark the Yacht (or shall do so at the next port of call) and shall not be entitled to any refund.

CLAUSE 13. RESTRICTED USE: The CHARTERER shall not assign this Agreement or subcharter the Yacht without the OWNER's prior written consent. The CHARTERER shall use the Yacht for pleasure purposes only and shall not carry any merchandise or passengers for hire. The CHARTERER shall comply, and ensure his or her guests comply, with the laws of any jurisdiction to which the Yacht may travel and any other law applicable to the CHARTERER. The CHARTERER shall indemnify the OWNER against any liability for any loss, damage, or expense, including any penalties or fines and any cost to release the Yacht from arrest or detention, arising from any unlawful act by the CHARTERER or his or her guests.

CLAUSE 14. NAVIGATION LIMITS: The CHARTERER agrees to restrict the cruising of the Yacht to the area specified on the first page of this Agreement as the designated Cruising Area and to areas within such Cruising Area in which Yacht is legally allowed to cruise during the Charter Period.

CLAUSE 15. INSURANCE AND LIABILITY: The OWNER agrees to keep the Yacht fully insured against all customary risks and with protection and indemnity coverage for the full term of the Charter Period. The CHARTERER shall not be liable for any such loss or damage which is covered by such insurance or would have been had the OWNER complied with this clause. The CHARTERER may purchase additional charter liability insurance at his or her expense. During the term of this Charter, each Party, including all of the CHARTERER's Guests, shall be responsible for their own negligence. Any party having a claim for loss, injury, or damage, regardless of whether any such loss, injury, or damage occurs on board the Yacht or elsewhere, shall not bring a claim against another party related to this Agreement where the cause is the claiming party's own negligence. The OWNER shall not be held responsible for loss or damage to personal property or for any injury suffered by the CHARTERER any of his/her guests, during the term of charter, regardless of whether such loss or injury occurs onboard the Yacht or elsewhere, unless such loss, damage, or injury is the direct and proximate result of the OWNER's gross negligence. More specifically, but without limiting the foregoing, the CHARTERER and all of his/her guests accept all risks for accidents, injuries, or death related to the Yacht's dinghy or outboard motor, swimming and/or the use of (by way of example, not limitation) snorkels, masks, or allied equipment (such as scuba equipment), water skiing, wakeboarding, tubing, windsurfing, kiteboarding, personal watercraft, spinnaker flying, halyard flying, floating toys, and other sports equipment, whether or not supplied by the OWNER or the CHARTERER, and shall indemnify and hold the OWNER, Crew, BROKER and STAKEHOLDER harmless for such occurrences. If the CHARTERER or any of his or her guests does anything to void or limit coverage under the OWNER's insurance, the CHARTERER shall indemnify and hold the OWNER harmless against and from any liability for any loss, damage, or expense to the extent that it would otherwise have been covered under the OWNER's insurance.

CLAUSE 16. DRUGS AND OTHER ILLEGAL ACTIVITIES: The Yacht has a Zero-Tolerance policy regarding illegal drugs and controlled substances without a valid prescription and other illegal activities. The use, transportation or possession of illegal drugs or narcotics (INCLUDING MEDICAL MARIJUANA and CBD PRODUCTS) or of any other contraband, or the participation in any other unlawful activity, is strictly prohibited. The participation in any of these activities by the CHARTERER or any Guest constitutes a serious breach of this Agreement. Contraband on board the Yacht exposes the Yacht to the risk of seizure and forfeiture. Therefore, if any illegal substances or controlled substances without a valid prescription are used by or found in the possession of the CHARTERER or any Guest, this Agreement will be immediately terminated, and the CHARTERER and all Guests shall immediately disembark the Yacht at the next port of call without a refund of any portion of the Total Charter Fee. The CHARTERER will be held responsible for any loss (expenses) or damage to the OWNER and/or the Yacht due to any such violations. The OWNER shall have no liability for any travel or accommodation expenses of the CHARTERER or any of the Guests (including, without limitation, any cost or expense of hotels, meals, flights, ground transportation, or the like).

CLAUSE 17. COMPLAINTS: Should the CHARTERER have any complaint about the Charter, Yacht or Crew, the CHARTERER shall notify the Captain in the first instance and, if the matter is not resolved within 12 hours, the CHARTERER shall then notify the OWNER, through the BROKER, within forty-eight (48) hours maximum of the triggering event (or as soon as wifi, cell, satellite, landline or other communications will allow). If the complaint arises less than forty-eight (48) hours before the end of the charter, written notice must be made to the OWNER and BROKER by the last day of the Charter Period at the latest. Should the OWNER have a complaint against the CHARTERER arising under this Agreement (including, but not limited to, loss or damage claims), written notice must be made to the CHARTERER, through the BROKER, within forty-eight (48) hours of end of charter. The OWNER and the CHARTERER shall be accorded fourteen (14) calendar days to resolve any complaints. However, failure to enter into a written agreement that fully resolves all issues between the parties within fourteen (14) calendar days from end of the Charter Period shall provide cause for Clause 20 (Dispute Resolution), to be invoked by either the CHARTERER or the OWNER.

CLAUSE 18. REDELIVERY: The CHARTERER shall redeliver the Yacht, equipment, and furnishings to the OWNER at the port of disembarkation free of any debts incurred for the CHARTERER's account during the Charter Period and in the same condition as when delivery was taken, except for fair wear and tear arising from ordinary use, and will make good to an as-new standard any damage caused by the CHARTERER or his or her guests. If the CHARTERER hinders such redelivery, he or she shall pay demurrage to the OWNER pro rata for additional charter time, plus any other losses the OWNER sustains as a result of the delayed redelivery. If the delay is due to Force Majeure the CHARTERER shall not be held responsible for any additional charter fees.

CLAUSE 19. LIENS: The CHARTERER, his agents, and/or employees, have no right or power to permit or suffer the creation of any Maritime Liens against the yacht. The CHARTERER agrees to indemnify the OWNER for any charges or losses incurred as a result of a breach of this paragraph, including reasonable attorney's fees.

CLAUSE 20. DISPUTE RESOLUTION: Any dispute arising under this Agreement shall be attempted to be resolved under Clause 17 (Complaints) above, by the Parties applying best efforts to enter into a written or electronic agreement that fully resolves all issues between the Parties within fourteen (14) calendar days from end of charter. Any dispute arising under this Agreement that is not resolved under Clause 17 shall be resolved through the mediation- arbitration approach. If the CHARTERER made a complaint pursuant to Clause 17 and the Parties failed to resolve all pending issues between them within the time frame set forth therein, then within twenty-one (21) calendar days from the end of the Charter Period, the CHARTERER must serve a written Request for Mediation on the OWNER (through the BROKER), failing which any claims the CHARTERER may have against the OWNER shall be deemed to have been waived. If the OWNER has made a complaint pursuant to Clause 17 against the CHARTERER, a failure by the OWNER to serve a Request for Mediation as set forth herein above shall be deemed a waiver of any claims against the CHARTERER.

Within ten (10) business days of the Request for Mediation being served, the Parties agree to select a mutually agreeable, neutral third party to help them mediate any disputes. The mediation is to be held within twenty-one (21) calendar days of selection of mediator. The Parties specifically agree that any mediation may be held by video conference and at mutually agreed upon hours. Costs and fees associated with the mediation (mediator fee, video conference fees, and the like) shall be shared equally, but each Party shall be solely responsible for their own attorneys fees, if any, as well as any personal expenses incurred in participating in mediation. If mediation is unsuccessful, then either Party may refer the dispute to arbitration. A failure by either Party to refer the dispute to arbitration within ninety (90) calendar days from the end of the Charter Period shall be deemed a waiver by each Party of any claims against the other. The Parties agree that any arbitration may be held via videoconference. The decision of the arbitrator shall be final and binding on the Parties and may be enforced in any court of competent jurisdiction. The place of arbitration is Florida and this Agreement shall be governed by the Laws of the State of Florida and the Laws of the United States under the rules of the Miami Maritime Arbitration Council, unless otherwise mutually agreed.

CLAUSE 21. NOTICES: Any notices required to be served hereunder shall be in writing and shall be served via electronic means (email or fax) upon the designated Party in the manner set forth herein. A notice sent via email or fax shall be deemed successfully sent when and if transmitted without any error or non-delivery message. Any Party may also, in addition to email or fax, send written notice by mail, with such delivery being affected when dispatched prepaid and properly addressed by mail or courier service.

CLAUSE 22. TRIP CANCELLATION INSURANCE: The CHARTERER acknowledges that trip insurance plus Cancel For Any Reason policy upgrade is recommended to minimize the CHARTERER'S financial risks pertaining to this Agreement. If the CHARTERER elects not to purchase trip insurance, the CHARTERER assumes all expenses and losses related to non-refundable payments of this Agreement. Should the CHARTERER elect to purchase trip insurance, the cost to purchase such insurance is the sole expense of the CHARTERER, and the CHARTERER has sole discretion to choose whichever insurance policy to purchase, and accepts the full responsibility of understanding the coverage offered from the insurance provider of the CHARTERER'S choice. The OWNER, BROKER, and/or STAKEHOLDER shall not be held liable for any claims related to trip insurance.

CHARTERER'S acknowledgment re Trip Cancellation Insurance. Initials:

CLAUSE 23. EXECUTION OF AGREEMENT: This Agreement will be deemed withdrawn by the CHARTERER if not signed by the OWNER within ten (10) business days after the CHARTERER signs. This Agreement may be executed via facsimile or other electronic means, in any number of counterparts, each of which when so executed shall be deemed an original, but such counterparts shall together constitute one and the same Agreement.