CANCELLATION BY CHARTERER & CONSEQUENCES OF NON-PAYMENT

i) Should the CHARTERER give notice of cancellation of this Agreement on or at any time before the commencement of the Charter Period, some or all of the Charter Fee may be retained by the OWNER determined as follows:

After this Agreement is signed but before the final instalment is due to be paid, the OWNER shall be entitled to retain the first instalment.

After any subsequent instalments are due to be paid, the OWNER shall be entitled to retain the first instalment and any subsequent instalments due.

If any of the instalments are due to be paid but have not been paid then the OWNER shall have a claim against the CHARTERER for the amount so due.

ii) DEFAULT OF PAYMENT OR FAILURE TO PAY

Should the CHARTERER fail to pay, after having been given written notice by the OWNER, any amount due under this Agreement, the OWNER reserves the right to treat this Agreement as having been repudiated by the CHARTERER and to retain the full amount of all payments and to recover all sums unpaid and due up to the date of the repudiation.

Notwithstanding the OWNER’s right to receive or retain all payments referred to above, the OWNER shall be under a duty to mitigate the CHARTERER’s loss and in the event that the OWNER is able to re-let the Boat/Tender for all or part of the Charter Period under this Agreement, the OWNER will give credit for the net amount of charter hire arising from such re-letting after deduction of all commissions and other consequential expenses arising from such re-letting. The intention is that the OWNER shall receive the same in net proceeds from any re-letting as would have been received under this Agreement had it not been cancelled or repudiated, so that the OWNER shall reimburse or forgive payments received or due from the CHARTERER only to the extent that the net proceeds from any re-letting which correspond to part or all of the Charter Period exceed the amounts which would have been received under this Agreement. The OWNER shall use his best endeavors to re-let the Boat/Tender and shall not unreasonably withhold his agreement to re-let, although charters which may reasonably be considered detrimental to the Boat/Tender, its reputation, its Crew or its schedule may be refused.

If, prior to the date of cancellation, the Boat/Tender has taken on provisions for the Charter, or has utilised the Delivery/Re-delivery Fee as set out on Page One of this Agreement, then the CHARTERER shall pay for these expenses unless all or part can be either refunded by the supplier or transferred to the next Charter, in which case they shall be adjusted accordingly. The Captain and OWNER shall be under a duty to mitigate these expenses where possible.

If, after signature of this Agreement, the OWNER is adjudged bankrupt or, in the case of a company, a liquidator, receiver or administrator is appointed over all or part of the OWNER’s assets, the CHARTERER shall be entitled to cancel the Charter and all monies paid to the OWNER, the BROKER or the Stakeholder pursuant to this Agreement shall be refunded without further deduction.

Details are provided within the charter contract that must be signed before completion of this booking.