Sigma Yacht Serenity Yachting – Covid 19 Addendum (3d Party)
ADDENDUM TO CHARTER AGREEMENT
For the charter of (name of yacht)
For the charter period (date of charter)
Between the Undersigned Parties
(referred to herein individually as a Party and collectively as the Parties)
IT IS AGREED AS FOLLOWS
- For the purpose of this Addendum, the definitions of below terms set forth in this Article 1 will
apply to the Addendum:
“Covid 19 Disease” shall mean the new type of coronavirus, known as “COVID 19”.
“Govermental Entity” shall mean the competent authorities of the flag state of the Vessel,
country/countries of embarkation and disembarkation and country/countries in which the Vessel is
navigating during the Charter Period.
- The Parties agree that the Covid 19 Disease and any direct consequences (such as general
quarantine, general travel ban, general entry/exit restrictions from local or national authorities), shall
be considered as a cause of force majeure under the original the Charter Agreement.
- In the event before the beginning of the Charter Period any of the CHARTERER or the OWNER is
directly prevented from performing its material obligations under the Charter Agreement by reason
of force majeure due to the Covid 19 Disease (an “Affected Party”), or it is reasonably expected that
the performance of the Charter Agreement during the Charter Period could be materially affected by
the Covid 19 Disease, which shall include without limitation failure by the OWNER to deliver or
failure by the CHARTERER to take delivery of the Vessel or cruising limitations during the charter as a
result of general bans or precautionary measures announced by Governmental Entities, the Affected
Party shall notify the other Parties of the relevant circumstances and on the effect on its
performance of the Charter Agreement, and the Parties shall discuss in good faith to mitigate the
effects of such occurrence on the performance of the Charter Agreement, including without
limitation, if applicable, by way of changing the port of Delivery or Redelivery, changing the Cruising
Area and/or changing the Charter Period (to a date not longer than 18 months after the original
Charter Period) with CHARTERER booking the charter through the same BROKER. Failing to reach an
agreement, the CHARTERER or the OWNER shall be entitled to cancel the Charter Agreement by
notice in writing to the other Parties. Upon such termination, all payments made by the CHARTERER
under the terms of the Agreement shall be immediately repaid to it without interest, and without
deduction or penalty, except as may be the case under Article 6 below.
- In case of outbreak of the Covid 19 Disease on board the Vessel, or in the event the Captain
reasonably suspects the outbreak of the Covid 19 Disease on board, during the cruising, Parties
undertake to discuss in good faith solutions enabling first the protection of the life of the
CHARTERER, guests and Crew, and secondly mitigating the effects on the Charter Agreement, to
enable the Parties to perform their rights and obligations under the Charter Agreement, such
possible solutions to include, without limitation taking protective measures on board and continuing
the Charter, or deviating to a port to disembark any relevant person(s), and/or terminating by
anticipation the Charter Agreement.
- In case of termination of the Charter Agreement during the Charter Period under Article 4 above:
a. If the Charter termination is due as a result of the CHARTERER and/or a guest being infected by the
Covid 19 Disease or because the Captain reasonably considers that there is a risk of the Charterer
and/or a guest being infected by the Covid 19 Disease (as evidenced by customary symptom(s)
identified by the World Health Organisation), the Charter Fee shall remain due and payable in full.
b. If the Charter termination is due as a result of a crew member being infected by the Covid 19
Disease or because the Captain reasonably considers that there is a risk of the crew being infected by
the Covid 19 Disease (as evidenced by customary symptom(s) identified by the World Health
Organisation), the Charter fees shall be reimbursed to the Charterer on a pro rata basis according to
the CHARTERER’s use of the Vessel, if the Charter Agreement is partly performed.
- Provisions purchases or expenses incurred during the time the CHARTERER is on board or paid in
advance by the OWNER for the CHARTERER’s account shall be deducted from the APA, and in any
case at the cost of the CHARTERER.
- In case of cancellation or termination of the Charter Agreement, in whole or in part of the Charter
Period, in relation to the Covid 19 Disease as contemplated by this Addendum, the Broker will retain
the percentage of the commission corresponding to the pro rata period of the Charterer’s use of the
Vessel, if the Charter Agreement is partly performed.
- The Captain shall always be entitled:
a. not to follow any instructions from the CHARTERER if and to the extent that the Captain
reasonably considers that it may expose the CHARTERER, the guests, the crew and/or the Vessel to a
risk of exposure to the Covid 19 Disease which cannot be avoided by protective measures and/or
which could prevent the Vessel and/or the crew from performing the Charter Agreement or any
successive charter commitments;
b. to follow any instructions, regulations, laws, recommendations, good practices issued by any
Governmental Entity or the World Health Organisation in connection with the Covid 19 Disease, so as
to protect the life and health of persons on board the Vessel, whether or not it may impact the
performance of the Charter Agreement and/or the enjoyment of the Vessel by the CHARTERER.
- Each Party shall be entitled to send reasonable requests to obtain useful information from the
other Party in relation to the Covid 19 Disease, including but not limited to any country where the
Charterer or a guest or a crew member or the Vessel has travelled within the 14 days before the
beginning of the Charter Period, and the other Party(ies) shall promptly reply to such request(s).
- Each Party shall promptly notify the other if it is aware of any information in relation to the Covid
19 Disease that may affect the performance of the Charter Agreement and/or enjoyment of the
Vessel during the Charter Period, including but not limited to the CHARTERER and/or a guest and/or
a crew member being infected or suspected of being infected by the Covid 19 Disease.
- All other terms and conditions remain unaltered.
REVISED TERMS FOR EARLY CANCELLATION BY CHARTERER
- Should the CHARTERER wish to give notice of cancellation due to concern/fear of future travel
due to Covid 19 Disease, but not due to any travel restrictions as a direct consequence of Covid 19
Disease that would prevent the CHARTERER from performing its material obligations under the
Charter Agreement and accept delivery of the yacht during the charter period, the following
cancellation fees will be applicable if the cancellation notice is given;
91 or more days before embarkation date: 25% of Charter Fee + VAT
90 days to 61 days before embarkation date: 30% of Charter Fee + VAT
60 days to 31 days before embarkation date: 40% of Charter Fee + VAT
30 days to 21 days before embarkation date: 50% of Charter Fee + VAT
20 days or less before embarkation date: 100% of Charter Fee + VAT
Any APA payments or Fixed Meal Plan payments that stand outside of the Charter Fee and VAT as
stated on the Charter Agreement will be fully refunded to the CHARTERER in all of the above early
cancellation cases with the exception of APA funds already paid in advance by the OWNER for the
CHARTERER’s account as requested/required in order to have timely provisioned for the charter
before notice of cancellation is given.
- Should the CHARTERER give notice of cancellation due to concerns/fear of future travel due to
Covid 19 Disease, but at a later date decide, for any reason, to request to charter the same vessel for
the same period, and the vessel is still available at that moment, the OWNER will allow the
CHARTERER to re-charter the vessel for the original charter fee and count the already applied
cancellation fee as part of total charter fee already paid for the charter.
- In the case of early cancellation by the CHARTERER, the CHARTERER shall be fully refunded if the
vessel is re-chartered to another client during the same period for the same or higher charter fee.
Should the vessel be re-chartered to another client for fewer number of days within the same period,
or, for a lower charter fee during the entire same period, the CHARTERER shall be refunded the
maximum amount possible, taking into consideration that the OWNER will not earn any less than
what he would have earned under the original charter agreement. Refunds under this clause shall be
payable to the CHARTERER on the completion date of the charter.
- If, instead of cancelling and paying the above mentioned cancellation fees, the CHARTERER would
like to postpone their charter on the same vessel in the same cruising area for the same or longer
length of time to another period within 18 months of the charter period in the Charter Agreement,
the OWNER shall agree to accept this. In such a case, the CHARTERER shall not be refunded any
deposit payments made until the date that notice of cancellation is given, and those payments shall
be treated as part of total charter fee already paid for the CHARTERER’s next booking of the same
vessel within the above mentioned 18-month period. For this postponement clause to be applicable,
notice of cancellation must be given by the CHARTERER 61 or more days before embarkation date
that is stated on the Charter Agreement. The dates of charter for the re-booking within the 18-month
period should ideally be confirmed by the CHARTERER latest by 31 January 2021 and it shall be based
on the vessel’s availability at the time of notification. In the event that the vessel is sold to another
owner or becomes unavailable as a charter vessel during this period, the CHARTERER shall either be
refunded all past payments made, or, such payments can be refunded by the OWNER to the BROKER
to be used as credit for the charter of a different vessel for the same CHARTERER.
- If the CHARTERER should decide to wait until 21 to 30 days before embarkation date to give
notice of cancellation and if on the date of cancellation there are travel restrictions imposed by
Governmental Entities by reason of the Covid 19 Disease that would in the future directly prevent
the CHARTERER or OWNER from performing its material obligations under the Charter Agreement,
which shall include without limitation failure by the OWNER to deliver or failure by the CHARTERER
to take delivery of the Vessel, then the CHARTERER will be entitled to cancel the charter and receive
a full refund or mitigate terms with the OWNER to postpone the charter to a later date. Such general
travel restrictions shall include cancellation of all flights from the CHARTERER’s origin to the country
where the charter is to take place, however, cancellation of just certain individual flights shall not be
considered force majeure. Other general restrictions shall include, but not be limited to,
Governmental Entity decisions to close borders between the CHARTERER’s country and the cruising
area stated in the Charter Agreement which would make it impossible for the CHARTERER to either
arrive at the port of embarkation or make it impossible to return to his home country at the end of
the charter. Contraction of Covid 19 Disease by one or more of the guests in the CHARTERER’s party
shall be treated as any other medical condition that may prevent the CHARTERER from performing its
material obligations under the Charter Agreement and this shall not entitle the CHARTERER to the
cancellation terms set forth in this addendum. If the CHARTERER shall decide to wait until 21-30 days
before embarkation date to give notice of cancellation and if on the day of cancellation there are no
travel restrictions related to Covid 19 Disease that would prevent the CHARTERER or OWNER from
performing his material obligations, then the cancellation terms under clause 12 of this addendum
shall be applicable and the CHARTERER shall pay a cancellation fee equal to 50% of the total charter
fee. Should the CHARTERER decide not to cancel but proceed with the charter at this point, the
remaining balance of the charter fee shall be paid by the CHARTERER 20 days before embarkation
date otherwise non-payment shall be treated as cancellation by the CHARTERER and terms and
conditions stated in Clause 12 of this addendum shall be applicable.
- In the event that any signature is delivered by facsimile transmission or by email delivery of a pdf
format data file such signature shall create a valid and binding obligation upon the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile or
pdf signature were an original thereof regardless of the jurisdiction in which the Addendum
For and on behalf of the OWNER
For and on behalf of the CHARTERER
For and on behalf of the BROKER