Home Journeys Western Med / / Classic Côte Country(ies: Currency(ies): Time zone(s): Sunshine: (daily average) Temperature: Humidity: (daily average) (daily average) Italy, Monaco, France Euro (EUR) CEST (UTC+2) / CEST (UTC+2) February: 5 hours August: 14 hours February: 11°C / 52°F August: 24°C / 75°F February: 68% August: 65% The Owners Club is dedicated to helping Members unlock the full potential of their vessels. Beyond being valuable assets, yachts are vibrant communities of seafarers. By cruising widely and sharing their experiences, Members not only get the most from their investments, they enhance the vessel’s reputation and reduce crew turnover. All of which creates a smoother, more rewarding ownership experience. If St-Tropez is a wild party, Porquerolles is the gentle, sun-kissed morning after. Effortlessly beautiful, Porquerolles is what the French Riviera looked like before casinos and boutiques. Notre Dame beach has sugar-soft white sand and crystal-clear turquoise water. The diving’s excellent here. But there are no blinged-up beach clubs, and absolutely no traffic jams - because cars aren’t allowed. Instead, visitors swap Bugattis for bicycles, gliding along sun-dappled paths through pine forests and vineyards that produce some of the finest rosé in existence. It’s the perfect antidote to the excess of the Riviera: luxury served with a side of serenity. Waypoint 7 Île de Porquerolles Once a sleepy fishing village, now the undisputed capital of excess. The harbour’s charming, but prepared to be gawped at by tourists when you're on board. The old town is a maze of cobbled streets, quaint cafés, and markets selling everything from truffle-infused cheese to handmade sandals. Nearby Pampelonne Beach (best reached by tender) is an institution. A place where bronzed bodies recline on perfectly arranged sunbeds while waiters at beach clubs sprint across the sand delivering magnums of Dom Pérignon. If you tire of the glitz, the surrounding countryside offers a retreat into vineyards and rolling hills. St Tropez's not just a destination: it’s a lifestyle. Waypoint 6 St Tropez Home of the most glamorous traffic jam on Earth - the Cannes Film Festival. Best avoided unless you’re part of that circus. The Boulevard de la Croisette is the centrepiece—a sun-drenched promenade lined with high-end boutiques. At one end is the charming Old Port, but large vessels must use Port Pierre Canto at the other end. Le Suquet (the old town) is charming, with cobbled streets, authentic French bistros, and panoramic views. Offshore, the Lérins islands offer an escape from the madness, complete with a fortress that once housed the mysterious Man in the Iron Mask – proving that even in the 17th century, Cannes had an exclusive guest list. Waypoint 5 Cannes Nestled between Nice and Cannes, Antibes has all the glamour of the Riviera but with an old-world charm that doesn’t try too hard. Step ashore at Port Vauban and you’re soon in the stunning medieval Old Town where cobbled streets lead you to chic boutiques. For lovers of culture, the nearby Picasso Museum sits proudly within the Château Grimaldi. Then there’s Cap d’Antibes, a scenic headland where the walking trails offer jaw-dropping views over the Med.If you really want to indulge, Hotel du Cap-Eden-Roc offers a range of stunning bars and restaurants. If you have money and taste, you’ll love Antibes. If you only have money, well, Cannes is just down the road… Waypoint 4 Antibes A place so absurdly beautiful it looks like it was designed by a Hollywood set designer with an unlimited budget. Nestled between Nice and Saint-Jean-Cap-Ferrat, this is where the Riviera dials down the excess of Monaco and swaps it for something altogether more refined. The bay is one of the deepest in the Med. Ashore, pastel-coloured buildings tumble down to the water, and charming little cafés serve seafood so fresh it practically waves at you. Atop Cap Ferrat, Villa Ephrussi de Rothschild is filled with priceless art. Villefranche-sur-Mer is the Riviera’s best-kept secret. A place where wealth merely whispers and never shouts. Waypoint 3 Villefranche-sur-Mer A tiny nation where the world’s wealthiest naturally coalesce. There's an undeniable magic about the place. Both glamorous and ludicrous, and it’s the ultimate playground for those who think a Bugatti is a sensible runabout. One moment, you’re sipping Dom Pérignon '76 at the Café de Paris, the next, you’re strolling through the same tunnel where Ayrton Senna once danced on the edge of disaster. It’s flashy and over-the-top - and that’s precisely the point. Monaco isn’t just a destination. It’s a statement: je suis arrivé. Enjoy some downtime at the Oceanographic Museum and La Collection De Voitures - right by Port Hercule. Waypoint 2 Monaco Known as la Città dei Fiori (City of Flowers), understated Sanremo is where old-school glamour meets a dash of delightful Italian disarray. The streets are lined with faded Belle Époque hotels, while cafés overflow with locals arguing loudly over espresso. Your berth in Portosole Marina is centrally located, with exclusive shopping along Corso Matteotti and the historic Casino di Sanremo within easy walking distance. Enjoy a lazy lunch at the Michelin-starred Paolo e Barbara on via Roma, before visiting Villa Nobel - a museum dedicated to Swedish inventor Alfred Nobel who lived here. Then a luxury spa treatment at the Royal Hotel. or a round at Circolo Golf degli Ulivi, before rejoining your yacht for dinner. Waypoint 1 Sanremo Country(ies): Local agent(s): See this and other journeys in our world map Monaco Sanremo Villefranche-sur-Mer Antibes Cannes St Tropez Île de Porquerolles 1. Sanremo 2 Monaco 3. Villefranche-sur-Mer 4. Antibes 5. Cannes 6. St Tropez 7. Île de Porquerolles Country(ies): Local agent(s): See this and other journeys in our world map

Home Journeys Western Med / / Italian Riviera Country(ies: Currency(ies): Time zone(s): Sunshine: (daily average) Temperature: Humidity: (daily average) (daily average) / February: August: February: August: February: August: The Owners Club is dedicated to helping Members unlock the full potential of their vessels. Beyond being valuable assets, yachts are vibrant communities of seafarers. By cruising widely and sharing their experiences, Members not only get the most from their investments, they enhance the vessel’s reputation and reduce crew turnover. All of which creates a smoother, more rewarding ownership experience. Waypoint 7 Waypoint 6 Waypoint 5 Waypoint 4 Waypoint 3 Waypoint 2 Waypoint 1 Country(ies): Local agent(s): See this and other journeys in our world map 1. 2 3. 4. 5. 6. 7. Country(ies): Local agent(s): See this and other journeys in our world map

A map of all the world's major yacht and superyacht shows, conferences, races and rendezvous. A comprehensive guide to all the world's leading yacht and superyacht shows, races, conferences and related events. Such events are a must for those looking to buy or charter a yacht, or looking to source services such as yacht builders, naval architects or interior designers. Home Insights Events / / Events Map This page aims to map all yacht-related events which may be of interest to our Members and their representatives. You can also see a list of events, in date order, here . The Club has no commercial relationships with any organisers. Listings are not endorsements. Events can be subject to change or cancellation without notice, and may not take place every year. Please check with the organisers directly before making any arrangements. Map locations are approximate. Have we missed an event? Please tell us .

It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. Home Handbook White Papers / / A Flood Not a Trickle By far the majority of large, permanently-crewed yachts in existence today have only been launched since 2000. They’re new, and their positive impact is poorly understood by the general public, pressure groups and authorities alike. Yachts are increasingly becoming the targets of conflated environmental and political protests. As well as causing inconvenience in the short term, politicians may, in the long term be more reluctant to allow more marina developments, for example. After all, a small numbers of owners can only wield a small number of votes. It’s clear that yachting’s positive impact is woefully underestimated and misunderstood. Being confrontational will be counterproductive. As owners, we don’t want yachts to be on the political agenda. They exist, after all, for quiet enjoyment. But it’s as well to be prepared, with facts and figures at the ready, to respond to false accusations. And we may need to educate stakeholders and agitators quietly behind the scenes. PORTALS FOR THE REDISTRIBUTION OF WEALTH The most fundamental error is to consider a yacht purely as an asset – rather than a place of employment and worker accommodation. They are communities of individuals, most of whom are very well paid, and many of them are also entrusted to spend significant amounts of their employer’s hard-earned money. Whatever one’s views on the technical efficacy of trickle-down economics as part of a macroeconomic strategy, the boost to coastal economies is difficult to ignore. And this isn’t money being paid to an élite of lawyers and investment managers: it’s being paid directly into the accounts of waterside retailers and suppliers. Who, in turn, buy stock, employ staff and pay tax, leading to a significant quasi-Keynesian multiplier effect. BUYERS ALREADY PAY A PREMIUM Yachts are easy targets, because they are perceived – rightly – as being luxurious. But luxury isn’t just about opulence. Luxury is the combination of desirability and scarcity. Taking this to an extreme to illustrate the point, consider an expensive 50 year-old single malt Scotch whiskey. It’s matured in white oak barrels which – very slowly – allow some of the liquid to evaporate. There’s less and less of it as the years pass. So if this is what your heart desires you’ll pay more for it. The whiskey may or may not be any better than a 10 year-old dram, but it’s subjectively more desirable and objectively much scarcer. A yacht’s component parts are made in small numbers and/to an unusual specification. Producing them can be risky and unattractive for suppliers so they will demand higher prices. And precious few yards have the experience or equipment to craft the vessels themselves. All of this means that buyers pay significant premiums for yachts. As Mark Twain put it in The Adventures of Tom Sawyer (1876): " Tom … had discovered a great law of human action, without knowing it – namely, that in order to make a man or a boy covet a thing, it is only necessary to make the thing difficult to attain. " MODEST CREW BACKGROUNDS Long gone are the days when crewmembers came from privileged backgrounds – perhaps the children of the owner’s friends, or just sporty types whose leisure and social lives centred around prestigious yacht clubs. Like owners today, crew come from a wide variety of backgrounds – maybe having grown up in workaday towns situated far from the sea. They also come from all over the world, and must adapt quickly to a life afloat. The Owners Club is actively looking into ways to widen further the appeal of a career working on yachts – helping to make the industry as professional and meritocratic as possible. STATE-OWNED HARBOURS Mooring fees – together with harbour dues and associated services costs – form a significant outgoing for many yachts. While most marinas operate on a concession basis, it is usually the government or local municipal authority which owns the facility, and to whom the operator pays significant sums. These boost local coffers which are used to pay for vital local services which the whole community benefit from. REDUCING DEMAND FOR PROPERTY Recent decades have seen demand for property rise steeply. And as, in the most part, they stopped making land years ago, prices have risen accordingly. Starting in European capitals, a ripple effect then affects all parts of the relevant country. The result is property which is too expensive for most first-time buyers. They end up without a physical stake in society. Their lives are more transient, less settled and less secure. At the top of the property-owning tree, the world’s wealthiest can own multiple residences, each of which is perhaps only occupied for part of the year. Reducing a property portfolio in favour of a yacht purchase reduces demand at the highest end of the market, which should – eventually – reduce inflationary pressures at the bottom. Not by much, one suspects, but every little helps. HIGHLIGHTING MARINE POLLUTION The more time one spends afloat, the more one is aware of the amount of pollution entering the sea and the food chain – especially in the form of plastics. The owners of large yachts are better placed than anyone to actually address the issues beyond making changes to their own habits. They are likely to own companies which can introduce behavioural changes on a massive scale. Or they may own media outlets which bang the drum of change. Or they may know politicians who can enact change. It is impossible not to be moved by the beauty of the marine environment, or outraged at seeing it compromised. Owners are in the position to act. YACHTS INSPIRE SOCIETY French philosopher Roland Barthes wrote in Mythologies (1957): “ I think that cars today are almost the exact equivalent of the great Gothic cathedrals; I mean the supreme creation of an era, conceived with passion by unknown artists, and consumed in image if not in usage by a whole population which appropriates them as a purely magical object. ” In today’s context, this description applies to yachts far more than cars. And such sentiment is nothing new. Economist and key Enlightenment figure Adam Smith opined in his 1759 book The Theory of Moral Sentiments : “ The pleasures of wealth and greatness … strike the imagination as something grand and beautiful and noble, of which the attainment is well worth all the toil and anxiety which we are so apt to bestow upon it .” And so it is that, by symbolising wealth and success, yachts serve to inspire entrepreneurs to redouble their efforts. They encourage everyone inclined to do so, to work hard, take risks and use their imaginations. OWNERS INSPIRE CREWMEMBERS Owners’ energy, work ethic and meritocratic outlook often rubs off on the crewmembers who work for them. As crew usually do not have to pay income tax, and have little in the way of daily outgoings, when the time comes for them to come ashore they often do so with sufficient capital set aside to fund a new business. Many such enterprises will be related to yachting, but some will have nothing to do with their previous seagoing careers. Either way, yet more of the owners’ capital will be injected into economies far and wide. CONCLUSION Since the detention of certain Russian-owned yachts in early 2022, it looks at last as if large yachts can be rehabilitated from being seen in the popular imagination as icons of oligarchy to that which they were in previous times: symbols of success and the rewards for hard work and entrepreneurial élan. The possibility of future minority kickback shouldn’t be ignored. The benefits of yacht ownership are manifold for society generally. It is incumbent us owners to ensure, by supporting the Club and its aims, that all stakeholders understand the scope and extent of such benefits. The good news will be developed and deployed as needed. Other than that, let’s just get on enjoying the fruits of our labours and investments. To quote Eleanor Roosevelt: “ The purpose of life is to live it, to taste experience to the utmost, to reach out eagerly and without fear, for newer and richer experience .” Return to top Thank you to all our Members who provided perspectives for this white paper. It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. 15 November 2022 Last revised minutes 6 Reading time minutes 6 Reading time 15 November 2022 Last revised It is possible that political protests targeted at yachts and yachting infrastructure become more common. But such outcries are based on a complete ignorance about the nature and scope of the societal benefits flowing from ownership. It is up to us owners to inform and educate, as and when this is needed, and undertake research to support axiomatic assertions. Large, permanently-crewed yachts face misconceptions and challenges related to their environmental impact and public perception. It is important for us, as owners, to understand and communicate the positive aspects of yachting to counter this. Yachts are not just assets; they are floating communities, providing employment and contributing massively to local economies. Crewing provides employment for indivuals from all backgrounds. Yacht purchases can also reduce demand for expensive property and inspire society as symbols of success. We are in a position to drive environmental change through our businesses. Yachts can also inspire crewmembers to pursue entrepreneurial endeavors. Ownership should be seen as a positive contribution to society, and we have a responsibility to promote and educate others about its benefits. You can also read about Blue is the New Green Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Blue is the New Green Questions or comments? Please contact us

The Owners Club's Members' details are held in confidence by our General Secretary, and aren’t revealed to any third party, or other Members. The better part of valour being discretion isn’t just the Club’s guiding ethos. It’s a binding legal obligation. Home About Discretion / / The Soul of Discretion THE LAST GREAT LUXURY Privacy Policy Privacy is the last great luxury of our times. Highly prized by owners, it’s usually a contributing factor in buying a yacht. In an age where data has become a commodity, Members are glad to know that our discretion is absolute. Members' details are held in confidence by the Club’s General Secretary, and aren’t revealed to any third party, or other Members. The better part of valour being discretion isn’t just the Club’s guiding ethos. It’s a binding legal obligation. Some in the yachting industry can be fairly indiscrete. If we, as owners, are going to come together as a club, then we need to safeguard our privacy. This has been achieved. OWNER, 35M MY DISCRETION IS OUR DUTY Learn More Our General Secretary is an English lawyer, for whom discretion isn’t just a promise but a regulated professional requirement. Used to maintaining client confidentiality, he is a Partner at a leading international firm, regulated by the Solicitors Regulation Authority, the Financial Conduct Authority and the London Stock Exchange. The Club’s management company is registered with the United Kingdom Information Commissioner’s Office pursuant to the UK General Data Protection Regulation and the Data Protection Act 2018. By law, the data the Club holds must be held securely and protected against unlawful processing and accidental loss.

Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. Home Handbook Financing / / Loan Security 4 April 2017 Last revised minutes 6 Reading time Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. minutes 6 Reading time 4 April 2017 Last revised Without sufficient security in place, having provided a loan to a shell company to buy an expensive, mobile asset, lenders could be left out-of-pocket and finance would be impossible to obtain. While loan security can be found in various documents, the requirements themselves can always be traced back to the loan agreement. Unpaid crew, suppliers, and collision victims have liens over yachts, creating competing claims for lenders. Port authorities can detain a yacht for unpaid dues, further complicating the lender's position. Yards can have possessory liens on yachts if the owner hasn't paid for works carried out. Mortgages grant lenders rights against the yacht itself in the event of default, and they are the most important type of security. Mortgage registration is essential, either as a statutory mortgage or a common law mortgage, to establish priority and enforceability. Covenants and assignments supplement the mortgage document and dictate obligations and transfers of rights. Deeds of covenant and collateral security documents cannot be registered but are still important for additional protection. Non-statutory mortgages serve as a backup when statutory mortgages are invalid, but they have limitations in enforcement. Yacht registration is required, and the deed ensures the yacht remains registered throughout the mortgage term. Insurance covenants are crucial, and policies must cover the yacht and third-party liabilities to safeguard the lender's interests. Covenants and assignments supplement the mortgage document and dictate obligations and transfers of rights. Deeds of covenant and collateral security documents cannot be registered but are still important for additional protection. Non-statutory mortgages serve as a backup when statutory mortgages are invalid, but they have limitations in enforcement. Yacht registration is required, and the deed ensures the yacht remains registered throughout the mortgage term. Insurance covenants are crucial, and policies must cover the yacht and third-party liabilities to safeguard the lender's interests. Unpaid crew, suppliers, and collision victims have liens over yachts, creating competing claims for lenders. Port authorities can detain a yacht for unpaid dues, further complicating the lender's position. Yards can have possessory liens on yachts if the owner hasn't paid for works carried out. Mortgages grant lenders rights against the yacht itself in the event of default, and they are the most important type of security. Mortgage registration is essential, either as a statutory mortgage or a common law mortgage, to establish priority and enforceability. At the outset, it’s important to note that, with regards the yacht, the lender can still be left competing with the following who may automatically have claims against a yacht – which is why security has to be so wide-ranging: Unpaid crew and suppliers, collision victims, etc, all have liens over yachts Port authorities can have a statutory right to detain a yacht for unpaid dues Yards can have possessory liens where works have been carried for which the owner hasn’t paid: where the yacht is out of the water, it’s a case of no-cash-no-splash MORTGAGES A mortgage grants a lender (the ‘mortgagee’) rights against the yacht itself (known as rights ‘in rem’), rather than just against the owner (the ‘mortgagor’) in the event of default. While it still needs to be beefed-up by other types of security, such as covenants, and assignments of earnings and insurances, the mortgage is the most important type of security taken by a lender. Mortgages over yachts are known as ship mortgages to distinguish them from real estate mortgages. A mortgage can be taken over the whole yacht or just a number of the 64 available shares. MORTGAGE REGISTRATION The mortgagee’s power to sell the yacht in the event of default is specifically granted by statute. A mortgage is said to be ‘statutory’ where it has been set out and registered as prescribed by statute (in this case, regulation 57 of, Merchant Shipping (Registration of Ships) Regulations 1993 (SI 1993/3138) and paragraph 7 of Schedule 1 to the Merchant Shipping Act 1995. Otherwise, they are known as ‘common law’ mortgages but these are very unusual. A statutory mortgage can only be created over a yacht registered under Part I (but not the Part III ‘Small Ships Register’). The mortgagee will likely use a Form 4736 ‘Account Current’ statutory mortgage to secure not just the principal sum and interest but also costs and expenses. A Notice of Mortgage Intent MSF 4739 can be lodged in advance in order to record as early a date as possible for the mortgage: this is important when establishing the priority of debts in the event of later default. The mortgage is a brief document, just setting out the names of the parties, details of the yacht, and a short description of the secured obligation with reference to the agreement and the deed of covenant that supplements the mortgage. It must be lodged with the Registrar General of Shipping and Seamen, and the relevant fee paid. The Registrar will the register and returned the mortgage document. Where the mortgagor is a company registered in England and Wales, then, by virtue of section 860 of the Companies Act 2006, details of the statutory mortgage, the deed of covenant and any other security documents must be sent to the Registrar of Companies within 21 days, failing which such documents will be void as against a creditor, liquidator or administrator. COVENANTS & ASSIGNMENTS As the mortgage document itself is so brief, and there’s no scope for amending or adding to it, and also as the mortgage attaches to the yacht rather than the owner, it must be supplemented by covenants and assignments. Covenants dictate various dos and don’ts, and may be set out in the loan agreement and/or separately in a deed of covenant according to the lender’s house style. Assignments transfer rights from one party to another. The remainder of this article considers common covenants and assignments. For convenience, it is assumed that all covenants are set out in a deed. Unlike mortgages, deeds of covenant, and any other collateral security documents, cannot be registered with the Registrar of Ships. NON-STATUTORY MORTGAGE While a deed supports the mortgage, deeds can still have a clause by which the yacht is mortgaged. This is needed as a backup in case the statutory mortgage is invalid – which can be the case where, for example, the mortgage hasn’t been registered with the Companies Register. The deed will create a non-statutory mortgage which, while better than nothing, won’t be enforceable against a buyer who buys in good faith and isn’t aware of the mortgage, and will be ranked below a statutory mortgage should the mortgagor default. YACHT REGISTRATION The mortgagor will promise in the deed the yacht will be registered as a ship in the United Kingdom, and will remain, so, under the same registered name, for as long as the yacht is mortgaged. This is necessary as UK Part I ship registrations expire after only five years unless renewed. CHARGE REGISTRATION The deed will require, where the owner is a company registered in England or Wales, the mortgage to be registered as a charge with the United Kingdom companies register (known as Companies House). This is fallback requirement as the mortgagee isn’t going to leave anything to chance and will (or should) have registered the mortgage as soon as possible as not doing so risks the mortgagee loosing both the security and priority. INSURANCE Arguably just as important as the mortgage is the borrower’s covenants in respect of insurance, and policy assignments. In particular, the borrower covenants to: At the borrower’s expense, insure the yacht, for a value, on terms, and with an underwriter(s), all agreed with the lender. Comply with all policy terms throughout the term of the loan, including, of course, prompt payment of insurance premiums. Renew policies as needed to maintain cover. Not settle a claim without the lender’s consent It’s not only the yacht itself which must be insured, but third party liabilities which, if not satisfied, will expose the yacht itself to claims which might rank higher than the lender’s as mortgagee. Particular risks must also be covered, such as war risks, and mortgagee’s interest insurance. The latter provides cover where a failing on the borrower’s part means that other policies are rendered ineffective. For larger yachts, the policies must be assignable to the lender, and confirmation will have to be provided by underwriters that such assignments are noted on the policies and that proceeds of the insurance will be paid to the lender if necessary. For smaller yachts, it may be sufficient for the lender to be named as a co-assured on the policy. CLASSIFICATION SOCIETY An explanation as to the role of classification societies (often known as ‘class’) can be found here . Assuming the yacht must be classed, if the yacht isn’t maintained and surveyed as Class Rules stipulate, the yacht is said to be ‘out of class’ – which can lead to insurance policies being invalidated, as well as the yacht not being maintained properly. As this would jeopardise the mortgagee’s security, the deed of covenant will stipulate maintenance in class. REGULATORY COMPLIANCE Depending on the yacht’s length, gross tonnage and whether it’s registered for chartering, it will be subject to various regulations which help ensure it’s used safely. H ere’s a summary of those affecting your yacht . As well as being detained by port officials, non-compliance can render insurances void, which has obvious implications for the mortgagee’s financial security. Compliance with such regulations will be a key provision. INSPECTION As Class rules and flag state regulations only help to ensure the safe construction, maintenance and operation of the yacht, the mortgagee will want to have the opportunity to inspect the vessel to ensure that aesthetic aspects, and with them much of her value, are also being maintained. The mortgagee must therefore have a right to inspect, and this can be supported by a specific minimum value. MANAGEMENT While ‘yacht management’ can cover a broad spectrum of support services, regulations may require management of a specific type and quality, failing which the vessel may be off-cover for insurance purposes and liable to detention following a port state inspection. Managers also vary in approach and quality. Unsurprisingly, therefore, mortgagees will want to approve which manager is appointed. OPERATIONS The mortgagee may wish to restrict the movement of the yacht, not only by stipulating that she is to be kept out of waters close to areas known for piracy or adjacent to unstable countries, but also away from areas where actions in the event of default may be difficult or impractical. It may also be necessary for the deed to spell out that the yacht is to be used in a legal way – for example, not chartering out where the yacht is not registered as a commercial vessel and insured accordingly. CHARTERING An assignment of chartering income (if any) can be a helpful tool for a lender looking to recoup money, especially while awaiting the sale of a yacht in the event of default. Written notice will need to be served on the charterers – which can be commercially awkward for the borrower and a good incentive to keep on track with loan repayments. INCIDENTS Where any kind of incident occurs involving the yacht, whether that be a fire, grounding, flooding, or a legal action such as arrest or other formal court proceedings, the mortgagee will want to know right away, and the deed of covenant will reflect this. Crucially, liens can rank higher than a mortgage. MODIFICATIONS Refits don’t always improve or even add value to yachts: an owner’s ‘personal stamp’ can adversely affect value and may not even be carried in compliance with regulations. The mortgagee will want to know about, and if necessary veto, any proposed modifications. DISPOSAL While obvious, it needs to be set out in the deed of covenant that the mortgagor cannot sell the yacht while it provides security. COLLATERAL SECURITY As well as the mortgage and deed of covenant, the lender may want a mortgage or charge over the shares in the yacht owning company, involving share certificates being deposited with the lender, together with signed but undated stock transfers. Going one stage further, the lender may also require a personal guarantee from the beneficial owner. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Loan Enforcement Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Loan Enforcement

Our Members expect complete privacy. The Owners Club Privacy Policy establishes a fair and balanced framework which safeguards the privacy of superyacht owners and their representatives. Home / Privacy Privacy is Respect The Owners Club Privacy Policy establishes a fair and balanced framework to safeguard your privacy. Please take a moment to read this page. 1. INTRODUCTION 1.1. Welcome to The Owners Club’s privacy policy. 1.2. The Owners Club respects your privacy and is committed to protecting your personal data. This privacy policy will inform you as to how we look after your personal data when you visit our website (regardless of where you visit it from) and tell you about your privacy rights and how the law protects you. 1.3. This privacy policy is provided in a layered format so you can click through to the specific areas set out below. Please also use the Glossary to understand the meaning of some of the terms used in this privacy policy. 2. PURPOSE OF THIS PRIVACY POLICY 2.1. This privacy policy aims to give you information on how The Owners Club collects and processes your personal data through your use of this website, including any data you may provide through this website when you purchase a product or service. 2.2. This website is not intended for children and we do not knowingly collect data relating to children. 2.3. It is important that you read this privacy policy together with any other privacy policy or fair processing policy we may provide on specific occasions when we are collecting or processing personal data about you so that you are fully aware of how and why we are using your data. This privacy policy supplements other notices and privacy policies and is not intended to override them. 3. CONTROLLER 3.1. The Owners Club Limited is the controller and responsible for your personal data (collectively referred to as The Owners Club, “we”, “us” or “our” in this privacy policy). 3.2. We have appointed a data protection officer (DPO) who is responsible for overseeing questions in relation to this privacy policy. If you have any questions about this privacy policy, including any requests to exercise your legal rights, please contact the DPO using the details set out below. 4. CONTACT DETAILS 4.1. If you have any questions about this privacy policy or our privacy practices, please contact our DPO by email at info@theownersclub.org . 4.2. You have the right to make a complaint at any time to the Information Commissioner’s Office (ICO), the UK regulator for data protection issues (ico.org.uk). We would, however, appreciate the chance to deal with your concerns before you approach the ICO so please contact us in the first instance. 5. CHANGES TO THE PRIVACY POLICY AND YOUR DUTY TO INFORM US OF CHANGES 5.1. We keep our privacy policy under regular review. This version was last updated on 1 November 2021. Historic versions can be obtained by contacting us. 5.2. It is important that the personal data we hold about you is accurate and current. Please keep us informed if your personal data changes during your relationship with us. 6. THIRD-PARTY LINKS 6.1. This website may include links to third-party websites, plug-ins and applications. Clicking on those links or enabling those connections may allow third parties to collect or share data about you. We do not control these third-party websites and are not responsible for their privacy statements. When you leave our website, we encourage you to read the privacy policy of every website you visit. 7. THE DATA WE COLLECT ABOUT YOU 7.1. Personal data, or personal information, means any information about an individual from which that person can be identified. It does not include data where the identity has been removed (anonymous data). 7.2. We may collect, use, store and transfer different kinds of personal data about you which we have grouped together as follows: 7.2.1. Identity Data includes first name, maiden name, last name, username or similar identifier, marital status, title, date of birth and gender. 7.2.2. Contact Data includes billing address, delivery address, email address and telephone numbers. 7.2.3. Financial Data includes bank account and payment card details. 7.2.4. Transaction Data includes details about payments to and from you and other details of products and services you have purchased from us. 7.2.5. Technical Data includes internet protocol (IP) address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform, and other technology on the devices you use to access this website. 7.2.6. Profile Data includes your username and password, purchases or orders made by you, your interests, preferences, feedback and survey responses. 7.2.7. Usage Data includes information about how you use our website, products and services. 7.2.8. Marketing and Communications Data includes your preferences in receiving marketing from us and our third parties and your communication preferences. 7.3. We also collect, use and share Aggregated Data such as statistical or demographic data for any purpose. Aggregated Data could be derived from your personal data but is not considered personal data in law as this data will not directly or indirectly reveal your identity. For example, we may aggregate your Usage Data to calculate the percentage of users accessing a specific website feature. However, if we combine or connect Aggregated Data with your personal data so that it can directly or indirectly identify you, we treat the combined data as personal data which will be used in accordance with this privacy policy. 7.4. We do not collect any Special Categories of Personal Data about you (this includes details about your race or ethnicity, religious or philosophical beliefs, sex life, sexual orientation, political opinions, trade union membership, information about your health, and genetic and biometric data). Nor do we collect any information about criminal convictions and offences. 7.5. Where we need to collect personal data by law, or under the terms of a contract we have with you, and you fail to provide that data when requested, we may not be able to perform the contract we have or are trying to enter into with you (for example, to provide you with goods or services). In this case, we may have to cancel a product or service you have with us but we will notify you if this is the case at the time. 8. HOW IS YOUR PERSONAL DATA COLLECTED? 8.1. We use different methods to collect data from and about you including through: 8.1.1. Direct interactions. You may give us your Identity, Contact and Financial Data by filling in forms or by corresponding with us by post, phone, email or otherwise. This includes personal data you provide when you apply for our products or services, create an account on our website, subscribe to our service or publications, request marketing to be sent to you, enter a competition, promotion or survey, or give us feedback or contact us. 8.1.2. Automated technologies or interactions. As you interact with our website, we will automatically collect Technical Data about your equipment, browsing actions and patterns. We collect this personal data by using cookies, server logs and other similar technologies. We may also receive Technical Data about you if you visit other websites employing our cookies. 8.1.3. Third parties or publicly available sources. We will receive personal data about you from various third parties and public sources as set out: 8.1.3.1. Technical Data from the following parties: 8.1.3.2. analytics providers such as Google; 8.1.3.3. advertising networks; and 8.1.3.4. search information providers. 8.1.4. Contact, Financial and Transaction Data from providers of technical, payment and delivery services. 8.1.5. Identity and Contact Data from data brokers or aggregators. 8.1.6. Identity and Contact Data from publicly available sources. 9. HOW WE USE YOUR PERSONAL DATA 9.1. We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances: 9.2. Where we need to perform the contract we are about to enter into or have entered into with you. 9.3. Where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests. 9.4. Where we need to comply with a legal obligation. 9.5. Generally, we do not rely on consent as a legal basis for processing your personal data although we will get your consent before sending third party direct marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by contacting us. 10. PURPOSES FOR WHICH WE WILL USE YOUR PERSONAL DATA 10.1. We have set out below, in a table format, a description of all the ways we plan to use your personal data, and which of the legal bases we rely on to do so. We have also identified what our legitimate interests are where appropriate. 10.2. Note that we may process your personal data for more than one lawful ground depending on the specific purpose for which we are using your data. Please contact us if you need details about the specific legal ground we are relying on to process your personal data where more than one ground has been set out in the table below: Purpose/ Activity To register you as a new customer To process and deliver your order including: Manage payments, fees and charges Collect and recover money owed to us To manage our relationship with you which will include: Notifying you about changes to our terms or privacy policy Asking you to leave a review or take a survey To enable you to partake in a prize draw, competition or complete a survey To administer and protect our business and this website (including troubleshooting, data analysis, testing, system maintenance, support, reporting and hosting of data) To deliver relevant website content and advertisements to you and measure or understand the effectiveness of the advertising we serve to you To use data analytics to improve our website, products/services, marketing, customer relationships and experiences To make suggestions and recommendations to you about goods or services that may be of interest to you Type of data Identity Contact Identity Contact Financial Transaction Marketing and Communications Identity Contact Profile Marketing and Communications Identity Contact Profile Usage Marketing and Communications Identity Contact Technical Identity Contact Profile Usage Marketing and Communications Technical Technical Usage Identity Contact Technical Usage Profile Marketing and Communications Lawful basis for processing including basis of legitimate interest Performance of a contract with you Performance of a contract with you Necessary for our legitimate interests (to recover debts due to us) Performance of a contract with you Necessary to comply with a legal obligation Necessary for our legitimate interests (to keep our records updated and to study how customers use our products/services) Performance of a contract with you Necessary for our legitimate interests (to study how customers use our products/services, to develop them and grow our business) Necessary for our legitimate interests (for running our business, provision of administration and IT services, network security, to prevent fraud and in the context of a business reorganisation or group restructuring exercise) Necessary to comply with a legal obligation Necessary for our legitimate interests (to study how customers use our products/services, to develop them, to grow our business and to inform our marketing strategy) Necessary for our legitimate interests (to define types of customers for our products and services, to keep our website updated and relevant, to develop our business and to inform our marketing strategy) Necessary for our legitimate interests (to develop our products/services and grow our business) 11. MARKETING 11.1. We strive to provide you with choices regarding certain personal data uses, particularly around marketing and advertising. 12. PROMOTIONAL OFFERS FROM US 12.1. We may use your Identity, Contact, Technical, Usage and Profile Data to form a view on what we think you may want or need, or what may be of interest to you. This is how we decide which products, services and offers may be relevant for you (we call this marketing). 12.2. You will receive marketing communications from us if you have requested information from us or purchased goods or services from us and you have not opted out of receiving that marketing. 13. THIRD-PARTY MARKETING 13.1. We will get your express opt-in consent before we share your personal data with any third party for marketing purposes. 14. OPTING OUT 14.1. You can ask us or third parties to stop sending you marketing messages at any time by contacting us at any time by email. 14.2. Where you opt out of receiving these marketing messages, this will not apply to personal data provided to us as a result of a product/service purchase, warranty registration, product/service experience or other transactions. 15. COOKIES 15.1. You can set your browser to refuse all or some browser cookies, or to alert you when websites set or access cookies. If you disable or refuse cookies, please note that some parts of this website may become inaccessible or not function properly. 16. CHANGE OF PURPOSE 16.1. We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose. If you wish to get an explanation as to how the processing for the new purpose is compatible with the original purpose, please contact us. 16.2. If we need to use your personal data for an unrelated purpose, we will notify you and we will explain the legal basis which allows us to do so. 16.3. Please note that we may process your personal data without your knowledge or consent, in compliance with the above rules, where this is required or permitted by law. 17. DISCLOSURES OF YOUR PERSONAL DATA 17.1. We may share your personal data with third parties to whom we may choose to sell, transfer or merge parts of our business or our assets. Alternatively, we may seek to acquire other businesses or merge with them. If a change happens to our business, then the new owners may use your personal data in the same way as set out in this privacy policy. 17.2. We require all third parties to respect the security of your personal data and to treat it in accordance with the law. We do not allow our third-party service providers to use your personal data for their own purposes and only permit them to process your personal data for specified purposes and in accordance with our instructions. 18. INTERNATIONAL TRANSFERS 18.1. Many of our external third parties are based outside the UK so their processing of your personal data will involve a transfer of data outside the UK. 18.2. Whenever we transfer your personal data out of the UK, we ensure a similar degree of protection is afforded to it by only transferring your personal data to countries that have been deemed to provide an adequate level of protection for personal data. 19. DATA SECURITY 19.1. We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality. 19.2. We have put in place procedures to deal with any suspected personal data breach and will notify you and any applicable regulator of a breach where we are legally required to do so. 20. HOW LONG WILL YOU USE MY PERSONAL DATA FOR? 20.1. We will only retain your personal data for as long as reasonably necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, regulatory, tax, accounting or reporting requirements. We may retain your personal data for a longer period in the event of a complaint or if we reasonably believe there is a prospect of litigation in respect to our relationship with you. 20.2. To determine the appropriate retention period for personal data, we consider the amount, nature and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal, regulatory, tax, accounting or other requirements. 20.3. We keep basic information about our customers (including Contact, Identity, Financial and Transaction Data) for six years after they cease being customers for tax and other purposes. 20.4. In some circumstances you can ask us to delete your data. 20.5. In some circumstances we will anonymise your personal data (so that it can no longer be associated with you) for research or statistical purposes, in which case we may use this information indefinitely without further notice to you. 21. YOUR LEGAL RIGHTS 21.1. Under certain circumstances, you have rights under data protection laws in relation to your personal data., including: 21.1.1. Request access to your personal data. 21.1.2. Request correction of your personal data. 21.1.3. Request erasure of your personal data. 21.1.4. Object to processing of your personal data. 21.1.5. Request restriction of processing your personal data. 21.1.6. Request transfer of your personal data. 21.1.7. Right to withdraw consent. 21.2. If you wish to exercise any of the rights set out above, please contact us. 22. NO FEE USUALLY REQUIRED 22.1. You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee if your request is clearly unfounded, repetitive or excessive. Alternatively, we could refuse to comply with your request in these circumstances. 23. WHAT WE MAY NEED FROM YOU 23.1. We may need to request specific information from you to help us confirm your identity and ensure your right to access your personal data (or to exercise any of your other rights). This is a security measure to ensure that personal data is not disclosed to any person who has no right to receive it. We may also contact you to ask you for further information in relation to your request to speed up our response. 24. TIME LIMIT TO RESPOND 24.1. We try to respond to all legitimate requests within one month. Occasionally it could take us longer than a month if your request is particularly complex or you have made a number of requests. In this case, we will notify you and keep you updated. 25. GLOSSARY 25.1. Legitimate Interest means the interest of our business in conducting and managing our business to enable us to give you the best service/product and the best and most secure experience. We make sure we consider and balance any potential impact on you (both positive and negative) and your rights before we process your personal data for our legitimate interests. We do not use your personal data for activities where our interests are overridden by the impact on you (unless we have your consent or are otherwise required or permitted to by law). You can obtain further information about how we assess our legitimate interests against any potential impact on you in respect of specific activities by contacting us. 25.2. Performance of Contract means processing your data where it is necessary for the performance of a contract to which you are a party or to take steps at your request before entering into such a contract. 25.3. Comply with a legal obligation means processing your personal data where it is necessary for compliance with a legal obligation that we are subject to. 26. YOUR LEGAL RIGHTS 26.1. You have the right to: 26.1.1. Request access to your personal data (commonly known as a “data subject access request”). This enables you to receive a copy of the personal data we hold about you and to check that we are lawfully processing it. 26.1.2. Request correction of the personal data that we hold about you. This enables you to have any incomplete or inaccurate data we hold about you corrected, though we may need to verify the accuracy of the new data you provide to us. 26.1.3. Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have successfully exercised your right to object to processing (see below), where we may have processed your information unlawfully or where we are required to erase your personal data to comply with local law. Note, however, that we may not always be able to comply with your request of erasure for specific legal reasons which will be notified to you, if applicable, at the time of your request. 26.1.4. Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this ground as you feel it impacts on your fundamental rights and freedoms. You also have the right to object where we are processing your personal data for direct marketing purposes. In some cases, we may demonstrate that we have compelling legitimate grounds to process your information which override your rights and freedoms. 26.1.5. Request restriction of processing of your personal data. This enables you to ask us to suspend the processing of your personal data in the following scenarios: 26.1.5.1. If you want us to establish the data’s accuracy. 26.1.5.2. Where our use of the data is unlawful but you do not want us to erase it. 26.1.5.3. Where you need us to hold the data even if we no longer require it as you need it to establish, exercise or defend legal claims. 26.1.5.4. You have objected to our use of your data but we need to verify whether we have overriding legitimate grounds to use it. 26.1.6. Request the transfer of your personal data to you or to a third party. We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format. Note that this right only applies to automated information which you initially provided consent for us to use or where we used the information to perform a contract with you. 26.1.7. Withdraw consent at any time where we are relying on consent to process your personal data. However, this will not affect the lawfulness of any processing carried out before you withdraw your consent. If you withdraw your consent, we may not be able to provide certain products or services to you. We will advise you if this is the case at the time you withdraw your consent. Contact Us The Owners Club Privacy Policy establishes a fair and balanced framework to safeguard your privacy. Please take a moment to read this page thoroughly. 1. INTRODUCTION 1.1. Welcome to The Owners Club’s privacy policy. 1.2. The Owners Club respects your privacy and is committed to protecting your personal data. This privacy policy will inform you as to how we look after your personal data when you visit our website (regardless of where you visit it from) and tell you about your privacy rights and how the law protects you. 1.3. This privacy policy is provided in a layered format so you can click through to the specific areas set out below. Please also use the Glossary to understand the meaning of some of the terms used in this privacy policy. 2. PURPOSE OF THIS PRIVACY POLICY 2.1. This privacy policy aims to give you information on how The Owners Club collects and processes your personal data through your use of this website, including any data you may provide through this website when you purchase a product or service. 2.2. This website is not intended for children and we do not knowingly collect data relating to children. 2.3. It is important that you read this privacy policy together with any other privacy policy or fair processing policy we may provide on specific occasions when we are collecting or processing personal data about you so that you are fully aware of how and why we are using your data. This privacy policy supplements other notices and privacy policies and is not intended to override them. 3. CONTROLLER 3.1. The Owners Club Limited is the controller and responsible for your personal data (collectively referred to as The Owners Club, “we”, “us” or “our” in this privacy policy). 3.2. We have appointed a data protection officer (DPO) who is responsible for overseeing questions in relation to this privacy policy. If you have any questions about this privacy policy, including any requests to exercise your legal rights, please contact the DPO using the details set out below. 4. CONTACT DETAILS 4.1. If you have any questions about this privacy policy or our privacy practices, please contact our DPO by email at gensec@theownersclub.org . 4.2. You have the right to make a complaint at any time to the Information Commissioner’s Office (ICO), the UK regulator for data protection issues (ico.org.uk). We would, however, appreciate the chance to deal with your concerns before you approach the ICO so please contact us in the first instance. 5. CHANGES TO THE PRIVACY POLICY AND YOUR DUTY TO INFORM US OF CHANGES 5.1. We keep our privacy policy under regular review. This version was last updated on 1 November 2021. Historic versions can be obtained by contacting us. 5.2. It is important that the personal data we hold about you is accurate and current. Please keep us informed if your personal data changes during your relationship with us. 6. THIRD-PARTY LINKS 6.1. This website may include links to third-party websites, plug-ins and applications. Clicking on those links or enabling those connections may allow third parties to collect or share data about you. We do not control these third-party websites and are not responsible for their privacy statements. When you leave our website, we encourage you to read the privacy policy of every website you visit. 7. THE DATA WE COLLECT ABOUT YOU 7.1. Personal data, or personal information, means any information about an individual from which that person can be identified. It does not include data where the identity has been removed (anonymous data). 7.2. We may collect, use, store and transfer different kinds of personal data about you which we have grouped together as follows: 7.2.1. Identity Data includes first name, maiden name, last name, username or similar identifier, marital status, title, date of birth and gender. 7.2.2. Contact Data includes billing address, delivery address, email address and telephone numbers. 7.2.3. Financial Data includes bank account and payment card details. 7.2.4. Transaction Data includes details about payments to and from you and other details of products and services you have purchased from us. 7.2.5. Technical Data includes internet protocol (IP) address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform, and other technology on the devices you use to access this website. 7.2.6. Profile Data includes your username and password, purchases or orders made by you, your interests, preferences, feedback and survey responses. 7.2.7. Usage Data includes information about how you use our website, products and services. 7.2.8. Marketing and Communications Data includes your preferences in receiving marketing from us and our third parties and your communication preferences. 7.3. We also collect, use and share Aggregated Data such as statistical or demographic data for any purpose. Aggregated Data could be derived from your personal data but is not considered personal data in law as this data will not directly or indirectly reveal your identity. For example, we may aggregate your Usage Data to calculate the percentage of users accessing a specific website feature. However, if we combine or connect Aggregated Data with your personal data so that it can directly or indirectly identify you, we treat the combined data as personal data which will be used in accordance with this privacy policy. 7.4. We do not collect any Special Categories of Personal Data about you (this includes details about your race or ethnicity, religious or philosophical beliefs, sex life, sexual orientation, political opinions, trade union membership, information about your health, and genetic and biometric data). Nor do we collect any information about criminal convictions and offences. 7.5. Where we need to collect personal data by law, or under the terms of a contract we have with you, and you fail to provide that data when requested, we may not be able to perform the contract we have or are trying to enter into with you (for example, to provide you with goods or services). In this case, we may have to cancel a product or service you have with us but we will notify you if this is the case at the time. 8. HOW IS YOUR PERSONAL DATA COLLECTED? 8.1. We use different methods to collect data from and about you including through: 8.1.1. Direct interactions. You may give us your Identity, Contact and Financial Data by filling in forms or by corresponding with us by post, phone, email or otherwise. This includes personal data you provide when you apply for our products or services, create an account on our website, subscribe to our service or publications, request marketing to be sent to you, enter a competition, promotion or survey, or give us feedback or contact us. 8.1.2. Automated technologies or interactions. As you interact with our website, we will automatically collect Technical Data about your equipment, browsing actions and patterns. We collect this personal data by using cookies, server logs and other similar technologies. We may also receive Technical Data about you if you visit other websites employing our cookies. 8.1.3. Third parties or publicly available sources. We will receive personal data about you from various third parties and public sources as set out: 8.1.3.1. Technical Data from the following parties: 8.1.3.2. analytics providers such as Google; 8.1.3.3. advertising networks; and 8.1.3.4. search information providers. 8.1.4. Contact, Financial and Transaction Data from providers of technical, payment and delivery services. 8.1.5. Identity and Contact Data from data brokers or aggregators. 8.1.6. Identity and Contact Data from publicly available sources. 9. HOW WE USE YOUR PERSONAL DATA 9.1. We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances: 9.2. Where we need to perform the contract we are about to enter into or have entered into with you. 9.3. Where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests. 9.4. Where we need to comply with a legal obligation. 9.5. Generally, we do not rely on consent as a legal basis for processing your personal data although we will get your consent before sending third party direct marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by contacting us. 10. PURPOSES FOR WHICH WE WILL USE YOUR PERSONAL DATA 10.1. We have set out below, in a table format, a description of all the ways we plan to use your personal data, and which of the legal bases we rely on to do so. We have also identified what our legitimate interests are where appropriate. 10.2. Note that we may process your personal data for more than one lawful ground depending on the specific purpose for which we are using your data. Please contact us if you need details about the specific legal ground we are relying on to process your personal data where more than one ground has been set out in the table below: Purpose/Activity To register you as a new customer To process and deliver your order including: Manage payments, fees and charges Collect and recover money owed to us To manage our relationship with you which will include: Notifying you about changes to our terms or privacy policy Asking you to leave a review or take a survey To enable you to partake in a prize draw, competition or complete a survey To administer and protect our business and this website (including troubleshooting, data analysis, testing, system maintenance, support, reporting and hosting of data) To deliver relevant website content and advertisements to you and measure or understand the effectiveness of the advertising we serve to you To use data analytics to improve our website, products/services, marketing, customer relationships and experiences To make suggestions and recommendations to you about goods or services that may be of interest to you Type of data Identity Contact Identity Contact Financial Transaction Marketing and Communications Identity Contact Profile Marketing and Communications Identity Contact Profile Usage Marketing and Communications Identity Contact Technical Identity Contact Profile Usage Marketing and Communications Technical Technical Usage Identity Contact Technical Usage Profile Marketing and Communications Lawful basis for processing including basis of legitimate interest Performance of a contract with you Performance of a contract with you Necessary for our legitimate interests (to recover debts due to us) Performance of a contract with you Necessary to comply with a legal obligation Necessary for our legitimate interests (to keep our records updated and to study how customers use our products/services) Performance of a contract with you Necessary for our legitimate interests (to study how customers use our products/services, to develop them and grow our business) Necessary for our legitimate interests (for running our business, provision of administration and IT services, network security, to prevent fraud and in the context of a business reorganisation or group restructuring exercise) Necessary to comply with a legal obligation Necessary for our legitimate interests (to study how customers use our products/services, to develop them, to grow our business and to inform our marketing strategy) Necessary for our legitimate interests (to define types of customers for our products and services, to keep our website updated and relevant, to develop our business and to inform our marketing strategy) Necessary for our legitimate interests (to develop our products/services and grow our business) 11. MARKETING 11.1. We strive to provide you with choices regarding certain personal data uses, particularly around marketing and advertising. 12. PROMOTIONAL OFFERS FROM US 12.1. We may use your Identity, Contact, Technical, Usage and Profile Data to form a view on what we think you may want or need, or what may be of interest to you. This is how we decide which products, services and offers may be relevant for you (we call this marketing). 12.2. You will receive marketing communications from us if you have requested information from us or purchased goods or services from us and you have not opted out of receiving that marketing. 13. THIRD-PARTY MARKETING 13.1. We will get your express opt-in consent before we share your personal data with any third party for marketing purposes. 14. OPTING OUT 14.1. You can ask us or third parties to stop sending you marketing messages at any time by contacting us at any time by email. 14.2. Where you opt out of receiving these marketing messages, this will not apply to personal data provided to us as a result of a product/service purchase, warranty registration, product/service experience or other transactions. 15. COOKIES 15.1. You can set your browser to refuse all or some browser cookies, or to alert you when websites set or access cookies. If you disable or refuse cookies, please note that some parts of this website may become inaccessible or not function properly. 16. CHANGE OF PURPOSE 16.1. We will only use your personal data for the purposes for which we collected it, unless we reasonably consider that we need to use it for another reason and that reason is compatible with the original purpose. If you wish to get an explanation as to how the processing for the new purpose is compatible with the original purpose, please contact us. 16.2. If we need to use your personal data for an unrelated purpose, we will notify you and we will explain the legal basis which allows us to do so. 16.3. Please note that we may process your personal data without your knowledge or consent, in compliance with the above rules, where this is required or permitted by law. 17. DISCLOSURES OF YOUR PERSONAL DATA 17.1. We may share your personal data with third parties to whom we may choose to sell, transfer or merge parts of our business or our assets. Alternatively, we may seek to acquire other businesses or merge with them. If a change happens to our business, then the new owners may use your personal data in the same way as set out in this privacy policy. 17.2. We require all third parties to respect the security of your personal data and to treat it in accordance with the law. We do not allow our third-party service providers to use your personal data for their own purposes and only permit them to process your personal data for specified purposes and in accordance with our instructions. 18. INTERNATIONAL TRANSFERS 18.1. Many of our external third parties are based outside the UK so their processing of your personal data will involve a transfer of data outside the UK. 18.2. Whenever we transfer your personal data out of the UK, we ensure a similar degree of protection is afforded to it by only transferring your personal data to countries that have been deemed to provide an adequate level of protection for personal data. 19. DATA SECURITY 19.1. We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality. 19.2. We have put in place procedures to deal with any suspected personal data breach and will notify you and any applicable regulator of a breach where we are legally required to do so. 20. HOW LONG WILL YOU USE MY PERSONAL DATA FOR? 20.1. We will only retain your personal data for as long as reasonably necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, regulatory, tax, accounting or reporting requirements. We may retain your personal data for a longer period in the event of a complaint or if we reasonably believe there is a prospect of litigation in respect to our relationship with you. 20.2. To determine the appropriate retention period for personal data, we consider the amount, nature and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal, regulatory, tax, accounting or other requirements. 20.3. We keep basic information about our customers (including Contact, Identity, Financial and Transaction Data) for six years after they cease being customers for tax and other purposes. 20.4. In some circumstances you can ask us to delete your data. 20.5. In some circumstances we will anonymise your personal data (so that it can no longer be associated with you) for research or statistical purposes, in which case we may use this information indefinitely without further notice to you. 21. YOUR LEGAL RIGHTS 21.1. Under certain circumstances, you have rights under data protection laws in relation to your personal data., including: 21.1.1. Request access to your personal data. 21.1.2. Request correction of your personal data. 21.1.3. Request erasure of your personal data. 21.1.4. Object to processing of your personal data. 21.1.5. Request restriction of processing your personal data. 21.1.6. Request transfer of your personal data. 21.1.7. Right to withdraw consent. 21.2. If you wish to exercise any of the rights set out above, please contact us. 22. NO FEE USUALLY REQUIRED 22.1. You will not have to pay a fee to access your personal data (or to exercise any of the other rights). However, we may charge a reasonable fee if your request is clearly unfounded, repetitive or excessive. Alternatively, we could refuse to comply with your request in these circumstances. 23. WHAT WE MAY NEED FROM YOU 23.1. We may need to request specific information from you to help us confirm your identity and ensure your right to access your personal data (or to exercise any of your other rights). This is a security measure to ensure that personal data is not disclosed to any person who has no right to receive it. We may also contact you to ask you for further information in relation to your request to speed up our response. 24. TIME LIMIT TO RESPOND 24.1. We try to respond to all legitimate requests within one month. Occasionally it could take us longer than a month if your request is particularly complex or you have made a number of requests. In this case, we will notify you and keep you updated. 25. GLOSSARY 25.1. Legitimate Interest means the interest of our business in conducting and managing our business to enable us to give you the best service/product and the best and most secure experience. We make sure we consider and balance any potential impact on you (both positive and negative) and your rights before we process your personal data for our legitimate interests. We do not use your personal data for activities where our interests are overridden by the impact on you (unless we have your consent or are otherwise required or permitted to by law). You can obtain further information about how we assess our legitimate interests against any potential impact on you in respect of specific activities by contacting us. 25.2. Performance of Contract means processing your data where it is necessary for the performance of a contract to which you are a party or to take steps at your request before entering into such a contract. 25.3. Comply with a legal obligation means processing your personal data where it is necessary for compliance with a legal obligation that we are subject to. 26. YOUR LEGAL RIGHTS 26.1. You have the right to: 26.1.1. Request access to your personal data (commonly known as a “data subject access request”). This enables you to receive a copy of the personal data we hold about you and to check that we are lawfully processing it. 26.1.2. Request correction of the personal data that we hold about you. This enables you to have any incomplete or inaccurate data we hold about you corrected, though we may need to verify the accuracy of the new data you provide to us. 26.1.3. Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have successfully exercised your right to object to processing (see below), where we may have processed your information unlawfully or where we are required to erase your personal data to comply with local law. Note, however, that we may not always be able to comply with your request of erasure for specific legal reasons which will be notified to you, if applicable, at the time of your request. 26.1.4. Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this ground as you feel it impacts on your fundamental rights and freedoms. You also have the right to object where we are processing your personal data for direct marketing purposes. In some cases, we may demonstrate that we have compelling legitimate grounds to process your information which override your rights and freedoms. 26.1.5. Request restriction of processing of your personal data. This enables you to ask us to suspend the processing of your personal data in the following scenarios: 26.1.5.1. If you want us to establish the data’s accuracy. 26.1.5.2. Where our use of the data is unlawful but you do not want us to erase it. 26.1.5.3. Where you need us to hold the data even if we no longer require it as you need it to establish, exercise or defend legal claims. 26.1.5.4. You have objected to our use of your data but we need to verify whether we have overriding legitimate grounds to use it. 26.1.6. Request the transfer of your personal data to you or to a third party. We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format. Note that this right only applies to automated information which you initially provided consent for us to use or where we used the information to perform a contract with you. 26.1.7. Withdraw consent at any time where we are relying on consent to process your personal data. However, this will not affect the lawfulness of any processing carried out before you withdraw your consent. If you withdraw your consent, we may not be able to provide certain products or services to you. We will advise you if this is the case at the time you withdraw your consent. Contact Us

It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. Home Handbook White Papers / / Speaking Volumes Browse the website of any large brokerage and you will find numerous vessels said to have a “GT” of 499. This refers to Gross Tonnage. Owners of these are relieved from having to comply with a raft of regulations which apply to chartered vessels of 500 GT and above. Not doing so can lead to the yacht being detained and will lead to insurance policies being invalid. To be clear, this paper isn’t suggesting that the relevant safety regulations shouldn’t apply to certain larger yachts - it’s just that Gross Tonnage creates peculiar regulatory thresholds which can lead to compromised designs. Whether or not owners are looking to shave money off compliance costs, designers certainly consider there to be a market for such “paragraph” yachts. Keep in mind, also, that many such safety regulations don’t apply to private (i.e. non-chartered) yachts - even though they require the same number of permanent, full-time crewmembers. WHAT IS GROSS TONNAGE? The word ‘tonnage’ here does not mean weight. It is derived from the old English term ‘tun’ meaning a large wooden barrel – used for measuring, storing and transporting wine, oil or honey. They usually held 252 gallons, but other sizes were common. As it happens, a tun of wine weights about one long ton, which is 2240 pounds or 1016 kg, but the key point is that Gross Tonnage reflects volume – not weight, mass or displacement. Gross Tonnage is an abstract, unitless calculation, being the vessel’s total enclosed volume but modified by a logarithmic factor based on that volume. It was a compromise which met the needs of the shipping community of the 1960s. Yet these arcane rules still govern the design and specification of certain yachts over half a century later. Crucially, the figure is calculated as much as it is measured. It is defined by the Regulation 3 of Annex I of the International Convention on Tonnage Measurement of Ships, 1969 (normally abbreviated to “ITC 69”) by the formula: GT=K1V Where: V = the total volume of all enclosed spaces of the ship in cubic metres, and K1 = 0.2 + 0.02 log10V (or as set out in Appendix 2 of ITC 69) Calculating this requires a good grasp of both naval architecture and mathematics. UNDERLYING RATIONALE The reason why volume is used rather than weight is that, historically, ships were measured in order to calculate taxes. Aside from warships, all vessels were cargo ships of some description. And the easiest and fairest way to fund port operations and levy foreign trade was to tax ship owners according to cargo carrying capacity and, therefore, profitability. Overall vessel size was not the key factor. The same principles were applied to later passenger ships. Different countries used a variety of methods, which is why the ITC 69 was needed. This also did away with Gross Register(ed) Tonnage (GRT) - a measure of total internal capacity which is confused with GT even to this day – and at least ten other key measurements in use internationally. PROBLEMS CAUSED Inevitably, there is pressure on ship designers to minimise enclosed volume and reduce Gross Tonnage-based taxes and dues. Such amounts are minimal on relatively small vessels, such as yachts, but squeezing beneath a particular tonnage threshold seems to be a common aim. This can lead to freeboards (the distance between the waterline and the deck) being reduced to the minimum legal requirement. In turn, this reduces the available reserve buoyancy – those internal areas, above the waterline, which can be made watertight in the event of an emergency and help keep the vessel afloat for longer. Further, crew areas are reduced to the bare minimum in terms of floor space and headroom, and engine rooms are made as small as possible with machinery crammed in. Most pertinently for yachts, sterns tend to be cut off and slab-sided, sheer (the curving of the main deck upwards towards bow and stern) is reduced or eliminated, and swathes of the upper decks are given over to sundecks. Arguably, yachts are less elegant as a result. SHORT-TERM SOLUTION? Help could be at hand – if only more ship registry officials knew where to look. Regulation 1(3) of Annex I of ITC 69 states – arguably, in effect – that where there are “novel” aspects of a vessel’s design these aspects can be ignored when calculating Gross Tonnage. There is a small number of precedents for this in the context of trading ships, but this loophole does not appear to have been exercised when assessing yachts. This is surprising given that the latter are usually, almost by definition, full of novel features be they aesthetic elements or technical innovations. While there is Regulation 1(3) is written in vague terms, individual ship registries’ determination as to what “novel” means is definitive. Article 11 of ITC 69 makes it clear that tonnage certificates must be accepted at face value by other port states. It is perhaps surprising how this apparent loophole hasn’t been exploited more – especially by those registries marketing themselves at large yacht owners. But it would be better to change the rules than bend them. LONG-TERM SOLUTION The shortcomings of ITC 69 have been raised with the International Maritime Organisation (IMO), over the years, in respect of various types of cargo ships. Yet the convention has yet to be amended. Ship registries and owners have observed that too little or too much tonnage tax is being paid relative to other vessels of a similar displacement – depending on the point of view. The IMO’s view is that it doesn’t control tonnage tax and is unable to disallow the use of the gross tonnage in its calculation as this is a matter for individual port authorities. The most promising alternative has been mooted by the Australian government. Known informally as the “maritime real estate” and more formally as “Register Tonnage”, this is simply the length overall x breadth x summer draught. This seems fair as ports can charge ships on the basis of the amount of the port they take up, and the amount of dredging required. Yacht owners will need to work with trading ship owners in order to bring pressure to bear on the IMO. The procedure for amending the ITC 69 is particularly lengthy and involved. But surely worthwhile if yacht owners are going to put an end to this bureaucratic tail waging a very expensive dog. CONCLUSION No one system of measurement is going to satisfy all owners. ITC 69 is a compromise which has endured where numerous previous regimes have not. From a regulatory perspective, for nearly all trading and passenger vessels size doesn’t matter: all regulations will apply. And rightly so. Crew have every right to work in a safe and comfortable environment, and third parties have every right not to suffer the effects of collisions and pollution. But large, crewed yachts are different. Very few even existed when ITC 69 was drafted. Their crew live in comfortable quarters and are well paid (competition for the most able crewmembers ensures this). It can’t be right for yacht designers to be working around a figure to which vessel measurements form just one part, and which in any event attempts to satisfy the needs of a trading shipping community from a bygone era. It will be useful for Members to engage with ship registries at the outset regarding, via the Club Secretary, about Regulation 1(3) and what it could mean for the design of their yacht. Return to top Thank you to all our Members who provided perspectives for this white paper. It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. 8 February 2019 Last revised minutes 4 Reading time minutes 4 Reading time 8 February 2019 Last revised It’s time to free ourselves from a tun of unnecessary paperwork. In this white paper, drawn up at the suggestion of, and following consultations with, some of our Members, our General Secretary considers what Gross Tonnage is, why it’s used as the primary regulatory threshold, and what workarounds could be utilised to circumvent its blunt impact. Gross Tonnage (GT) is the key factor in determining which regulations apply, and this is vital to ensuring that insurance policies remain valid . GT is based on the total enclosed volume of the yacht and is derived from historical measurements used for taxation. The use of GT as a regulatory threshold can lead to compromised designs as owners and designers aim to minimize ongoing mangement costs. There is a loophole in the regulations that allows "novel" aspects of a yacht's design to be ignored when calculating GT, but this option has not been widely utilized. A potential alternative to GT is "Register Tonnage," which considers the physical dimensions of the yacht, and, as owners, perhaps we should engage with ship registries and pressure the International Maritime Organisation to change the regulations. You can also read about Language of Luxury Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Language of Luxury Questions or comments? Please contact us

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 96 m Length Builder & Co Builder 2021 Build year 1400 Gross tonnage Italy Registry Particulars Pattern

As Members know, yachts aren’t run on shoestring budgets. And most of the money is spent not by them in person, but by their captains and other trusted third parties. In highly competitive marketplaces, there is an incentive to buy business with formal ‘commissions’, extravagant ‘thank you’s – or perhaps just a good old brown envelope. Home Handbook Employing / / Commission or Kickback? 2 November 2013 Last revised minutes 3 Reading time As Members know, yachts aren’t run on shoestring budgets. And most of the money is spent not by them in person, but by their captains and other trusted third parties. In highly competitive marketplaces, there is an incentive to buy business with formal ‘commissions’, extravagant ‘thank you’s – or perhaps just a good old brown envelope. minutes 3 Reading time 2 November 2013 Last revised As Members know, yachts aren’t run on shoestring budgets. And most of the money is spent not by them in person, but by their captains and other trusted third parties. In highly competitive marketplaces, there is an incentive to buy business with formal ‘commissions’, extravagant ‘thank you’s – or perhaps just a good old brown envelope. T he Bribery Act 2010 in th e UK is considered one of the toughest anti-bribery laws globally, with similar principles found in the US Foreign Corrupt Practices Act. The Act applies extraterritorially, meaning that a crime can be committed even if the transaction occurs outside of the UK. There are four key offences under the Act: bribing, receiving a bribe, bribing a foreign public official, and failing to prevent bribery. Bribing involves offering or promising a financial or other advantage in exchange for improper performance of a function or activity, while receiving a bribe includes requesting or accepting such an advantage. Local practices should be disregarded when determining improperness, unless they are part of the written local law. Hospitality can be considered bribery if it is disproportionately generous, especially in industries focused on luxury. The offence of failing to prevent bribery applies to all commercial organizations, including companies and partnerships operating in the UK. Bribery crimes committed outside the UK can be investigated and prosecuted if there is a "close connection" to the UK, such as being a UK passport holder or ordinarily resident. The Serious Fraud Office (SFO) in the UK handles corruption allegations involving UK nationals or incorporated bodies overseas, and there is international cooperation in investigating and prosecuting bribery and corruption. The United States' Foreign Corrupt Practices Act allows payments to foreign public officials to expedite their duties, even if it violates local laws. Civil actions can also be taken against individuals involved in bribery, and a criminal conviction serves as proof of civil liability. The offence of failing to prevent bribery applies to all commercial organizations, including companies and partnerships operating in the UK. Bribery crimes committed outside the UK can be investigated and prosecuted if there is a "close connection" to the UK, such as being a UK passport holder or ordinarily resident. The Serious Fraud Office (SFO) in the UK handles corruption allegations involving UK nationals or incorporated bodies overseas, and there is international cooperation in investigating and prosecuting bribery and corruption. The United States' Foreign Corrupt Practices Act allows payments to foreign public officials to expedite their duties, even if it violates local laws. Civil actions can also be taken against individuals involved in bribery, and a criminal conviction serves as proof of civil liability. T he Bribery Act 2010 in th e UK is considered one of the toughest anti-bribery laws globally, with similar principles found in the US Foreign Corrupt Practices Act. The Act applies extraterritorially, meaning that a crime can be committed even if the transaction occurs outside of the UK. There are four key offences under the Act: bribing, receiving a bribe, bribing a foreign public official, and failing to prevent bribery. Bribing involves offering or promising a financial or other advantage in exchange for improper performance of a function or activity, while receiving a bribe includes requesting or accepting such an advantage. Local practices should be disregarded when determining improperness, unless they are part of the written local law. Hospitality can be considered bribery if it is disproportionately generous, especially in industries focused on luxury. In the United Kingdom, giving incentives and rewards may be a criminal offence – or not – according to whether it falls foul of the Bribery Act 2010 . This law is widely recognised as the toughest of its kind in the world, but its principles are much the same in the rest of the world, including the United States’ Foreign Corrupt Practices Act. Significantly, under the Bribery Act, a crime may be committed even if the transaction takes place outside of the UK. This was already the effect of a small and little-known piece of anti-terror legislation introduced in 2001, but the globe-trotting aspects of the 2010 Act are clearer and more coherent. COMMISSIONS To be clear, a lot of commission arrangements are perfectly legal – but it’s easy to overstep the mark, and there can be a false assumption that formality means legality. The penalties for getting it wrong include an unusually long prison sentence and unlimited fines. OFFENCES There are four key offences: Bribing Receiving a bribe Bribing a foreign public official, and Failing to prevent bribery Bribing occurs when a person offers, gives, or promises to give, a financial or other advantage to someone else in exchange for ‘improperly’ performing a function or activity. Receiving a bribe is defined as requesting, accepting or agreeing to accept such an advantage. An activity will be ‘improperly’ performed when any expectation of good faith or impartiality has been breached, or when the function has been performed in a way not expected of a person in a position of trust. Helpful, this now clarifies what is expected when a commission is an overt element of any business model – even where this may lead to a reduced commission. GREASING PALMS So what about those instances where greasing palms to get things to happen is just the way things work? The Act states that local practises should be disregarded when deciding on improperness – unless they form part of the written local law. While the UK authorities are alive to the necessity of ‘facilitation payments’, official tolerance relates only to small payments, made by companies with the right bribery policies and procedures in place. HOSPITALITY Hospitality can constitute bribery if it is disproportionately generous. In an industry devoted to luxury, it can be easy for crewmembers to confuse the lifestyle of their wealthy employers with their own – and not think twice about receiving hospitality which, seen from afar, is completely over the top. PREVENTION The offence of failing to prevent bribery applies only to ‘commercial organisations’, but this includes any company or partnership carrying on any business in the UK. Conceivably, this could yacht owning companies managed from the UK. With regard to the first three offences, while crimes committed outside the UK (except on board UK-flagged vessels) are normally beyond the jurisdiction of the courts, this is not the case with bribery. Given its seriousness, it’s one of a unique group of crimes (along with terrorism and war crimes) that the authorities can and will investigate worldwide. All that’s needed is a ‘close connection’ with the UK – including just being a passport-holder or ordinarily resident. INVESTIGATION The UK’s Serious Fraud Office (SFO) acts as the focal point for any allegations of corruption by UK nationals or incorporated bodies overseas, while the City of London Police has an Overseas Anti-Corruption Unit with the specific function of supporting overseas corruption investigations undertaken by the SFO. The idea that prosecuting authorities have tentacles that can reach worldwide is not limited to the UK. As with many areas of the criminal law, most countries’ laws are broadly similar, and both European Union and United Nations conventions provide for international co-operation with regard to both the investigation and prosecution of bribery and corruption. UNITED STATES While the reach of law enforcers in the United States is equally global in nature, however, a slight difference can be seen in their approach, as the Foreign Corrupt Practices Act of 1977 allows payments to be made to foreign public officials to facilitate or expedite their performance of the duties they’re already bound to perform, even if this still violates local laws. So making a payment to an official to speed up a visa application, for example, would be acceptable. CIVIL ACTION In addition to the threat of prosecution, an owner may sue an employee or other agent for any loss – and, while a criminal conviction is not necessary for a civil action, it would be undeniable proof of civil liability. The owner may also be able to withdraw from the contract agreed to by the agent, whether or not he or she brings an action against the agent, and this option may be useful if, for example, the owner has managed to find a better deal elsewhere. CONCLUSION While it might seem that the authorities are coming down rather hard on corruption, it’s not because they are trying to spearhead some kind of moral crusade but simply because corruption distorts rational product and service choices, which can ultimately prevent the cream of the industry from rising to the top, distort markets and threaten economic growth. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Harassment Prevention Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Harassment Prevention

Building a large, custom yacht is a complex process which must be carefully choreographed. There’re a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. Home Handbook Building / / The Build Process 10 May 2023 Last revised minutes 4 Reading time Building a large, custom yacht is a complex process which must be carefully choreographed. There are a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. minutes 4 Reading time 10 May 2023 Last revised Building a large, custom yacht is a complex process which must be carefully choreographed. There are a lot of specialists involved, and much which can wrong. Here we look at what construction actually involves, and why building your team at the outset is such a vital first step. Large yacht construction involves a tightly-controlled sequence of events, and adherence to classification society standards for welding and quality control. Machinery and larger systems must be installed before the superstructure is joined ot the hull. Filling, fairing, insulation, and the addition of cable trays and pipework must be carefully choreographed. Interior panels are prefabricated and should be removable for access and maintenance. The sooner the build captain is recruited the better. Project managers should be present at all stages of the build and provide progress reports. Crewmembers, other than the build captain, are engaged as the build nears completion, with the build captain overseeing recruitment. Insurance coverage should be clarified in the build agreement, including employer's liability insurance for crew. Sea trials are conducted to test the yacht's systems and performance, followed by formal legal delivery and a warranty period to address any issues that arise. Project managers should be present at all stages of the build and provide progress reports. Crewmembers, other than the build captain, are engaged as the build nears completion, with the build captain overseeing recruitment. Insurance coverage should be clarified in the build agreement, including employer's liability insurance for crew. Sea trials are conducted to test the yacht's systems and performance, followed by formal legal delivery and a warranty period to address any issues that arise. Large yacht construction involves a tightly-controlled sequence of events, and adherence to classification society standards for welding and quality control. Machinery and larger systems must be installed before the superstructure is joined ot the hull. Filling, fairing, insulation, and the addition of cable trays and pipework must be carefully choreographed. Interior panels are prefabricated and should be removable for access and maintenance. The sooner the build captain is recruited the better. Generally speaking, yachts are far more complex than working vessels of a similar size, and finishes must, of course, be of a far higher standard. Yard cleanliness and orderliness make ensuring this much easier. You’ll have gotten a feel for the builder’s work practices having visited beforehand . Once the build is underway, there’s a lot going on and a lot to go wrong. For steel-hulled yachts, huge plates are cut to shape before being assembled and welded into place. Steps must be taken in precisely the right order. Where the vessel will be classed, welders must be qualified in accordance with the classification society standards. The welds themselves must conform to measurable standards with tolerances measuring less than a millimetre. If it’s not right it must be corrected until it is. It can take a year and half to complete a bare 100-metre hull, during which about 1,000 tonnes of steel will be used. Superstructures are typically made from aluminium – requiring even greater welding skills. They are usually constructed in sections, away from the hull, then bonded together. Larger items of machinery, such as engines and generators, must be installed before superstructure encloses the internal spaces. The project will then typically be moved way from under the gantry cranes of the construction facility, to a fitting-out facility, where the machinery and systems will be fitted. The hull’s surface will be slightly rippled and will need filling and fairing: a skilled and labour-intensive process. The epoxy fillers, and paints covering them, are sensitive to temperature and humidity. Insulation, cable trays and pipework can now be installed – in exactly the right sequence. Interior panels are normally prefabricated by subcontractors, before being brought to the yard for installation. They will normally produce full-scale mock-ups of various interiors which you can check before they are installed. It’s important that the bulkhead and deckhead panels be removeable to allow access as needed for regular system maintenance. It's vital that photographs are taken during construction so that what’s behind the panels can be checked easily. SUPERVISION The builder will employ its own project manager(s), but with so much going on it’s easy to see why your project manager needs to be present at all stages of the build. Your project manager should compile monthly reports showing progress, with photos and detailing how this compares to the agreed time schedule. Your project manager should also know the build agreement inside-out, and must remind you of upcoming decision deadlines in good time. As with any large project, communication is key. ENGAGING CREW More and more crew are brought in as the build nears completion. The build captain is first – and in the case of larger projects may have been engaged at the outset. Where the build is on a more modest scale, the project manager also performs the role of build captain and may be the vessel’s first captain following launch. Build captains perform two roles: firstly they add a helpful seagoing captain’s perspective to the build, and secondly they recruit and oversee other crewmembers. The build captain will need excellent organisational skills, an analytical mindset and be a superb manager and motivator. Next comes the Chief Engineer, who can bring real value right away, followed by other heads of departments, who will be key in recruiting those who report to them – and may already have contacts waiting in the wings. Some hires may have been misjudged and just aren’t the right fit. This is to be expected. Not hiring crew until absolutely necessary can be a false economy. There’s much to be got ready before launch. Aside from completing the build, operational and regulatory procedures need to be established, and if these are rushed they may not be fit for purpose. INSURANCE The build agreement should be clear on when the build no longer bears the risk of damage occurring to the yacht, or the liabilities incurred to third parties. There should be no gaps in cover. Keep in mind, too, that you will need employers’ liability insurance in respect of crew as soon as they are engaged. While insurance brokers owe a legal duty to you, as insured, in reality they can value their commercial relationships with underwriters more. Indeed, some will expressly be your agent at the time of inception, but become the underwriter’s agent once a claim has been made. Be warned, and examine the policies in detail. TRIALS At last, your new yacht is complete and is ready for her first sea trial. You may like to come along – but it’s not going to be the most exciting cruise. Before she goes anywhere, there’s a dock trial. The generators and main engines are started and their cooling systems checked for leaks. Once the captain is satisfied that she is ready, she can head out to sea. Aboard will be representatives from the builder, subcontractors and classification society, as well as your own team. All kinds of objective measurements are made which can be checked against the contractual specification. The trial will take most of the day, or a few days for a large, complex vessel. DELIVERY At last your yacht is ready for formal, legal delivery. There may still be teething problems evident at the time of delivery, which the builder hasn’t had time to correct, but which you’re happy to live with for now. The scope and nature of such works must be formally agreed. The build documentation will have been examined and approved by your lawyer, and will be released to you against receipt of the penultimate payment – the final payment being made upon successful completion of the warranty period. WARRANTY PERIOD Because yachts are, in essence, a matrix of complex systems operating together in a harsh environment, it is inevitable that some systems will fail, or fail to perform as expected. The warranty period should be clearly set out in the build agreement. It is vital for crewmembers to inform the captain, and the captain to inform you and the builder, right away and in writing, of any faults. Documentation and record keeping are key. Keep in mind any notice formalities which must be observed. It's in the builder’s interests to work with you to create a yacht which will serve as a masterpiece – quite literally a shining example of what that yard is able to produce. Finding new clients is expensive and time-consuming. It’s far easier to keep existing clients happy and work towards selling them a larger yacht. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about A Firm Foundation Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about A Firm Foundation

Answers to questions often asked about The Owners Club, the worldwide association of superyacht owners. By pooling expertise and experience, we’re making ownership easier, more transparent and better value. Home About FAQs / / Any Questions? Have a question? Just contact us . Some regularly asked questions are set out below. Contact Us How do I become a member? Membership so far has been on an informal basis. To meet the needs of today’s rapidly growing numbers of owners and their representatives, we are now working towards online onboarding. This will allow immediate access to the Club’s suite of standard documents and specialist guidance. How long has the Club been in existence? The idea of creating the Club was first floated back in 2008. Only recently, with the return to pre-global financial crisis levels of building, and increasing public scrutiny of large yacht ownership, have Members sought to formalise their association. Which yacht broker do you recommend? While brokers play a vital role in the yacht market, we cannot recommend particular brokers. Each brokerage, and each individual broker, has its, his and her advantages and disadvantages in terms of contacts, experience and location. For the sake of simplicity and ease of completion, we would urge would-be buyers to ensure that they are dealing with central sales agents. Can we advertise with you? Yes – as long as your business isn’t selling yachts or any yachting-related goods or services. Members trust the Club to provide information and assistance without fear or favour. As we provide object owner-focused guidance, allowing yachting businesses to advertise might create a conflict of interest. Find out more here . Can I network with Members? If Members agree, the Club may organise social and networking events for Members and their representatives in future. Can you help find me a captain? Crew agencies, aside, our General Secretary is happy to publicise direct crew and shoreside staff vacancies. Just contact us . Can you manage my yacht? No, but Members will soon be able to use the Club’s standard yacht management agreement to contract with third party managers. Indeed, Members may consider that, using the Club’s suite of documents, there may be certain aspects of management which can be undertaken by their own family offices. Why doesn’t the Club use the term ‘superyacht’? It turns out that most of our Members don’t actually like the terms ‘superyacht’, ‘megayacht' or ‘gigayacht’. They generally feel that it isn’t helpful to be seen by authorities and the media as a special type of yacht. They feel there’s a fine line between label and target.

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 54 m Length DMS & Co Builder 2008 Build year 497 Gross tonnage British Virgin Islands Registry Particulars Benchmark

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 88 m Length Thompson Yachts Builder 2010 Build year 1502 Gross tonnage Malta Registry Particulars Representation

Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. Home Handbook Building / / Build Your Team 10 May 2023 Last revised minutes 4 Reading time Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. minutes 4 Reading time 10 May 2023 Last revised Life’s short: build a yacht. Seems simple enough. For some, only new will do. But building a large yacht is a complicated process, the result of which is a complex series of systems, which need to work reliably, and in harmony. With the right guidance, the process is an exciting and satisfying journey. If you’re not already a Member, your first step's to contact us so we can help you find the right people. Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential. Small projects allow individuals to combine roles, especially in design. Trusted brokers with industry knowledge add value and may help in maintaining resale value. Exterior and interior designers, naval architects, and project managers are essential team members. Project managers coordinate efforts and seek compromises: some seagoing experience is helpful. Yachts are typically owned through companies for liability and privacy reasons. Cost savings can be achieved through proven hull designs and repurposing existing designs. Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important. Project managers coordinate efforts and seek compromises: some seagoing experience is helpful. Yachts are typically owned through companies for liability and privacy reasons. Cost savings can be achieved through proven hull designs and repurposing existing designs. Clear definitions of team roles, strict timescales, and engaging a lawyer with build experience are important. Exceptional projects require exceptional teams, and building a good working relationship with all team members from the start is essential. Small projects allow individuals to combine roles, especially in design. Trusted brokers with industry knowledge add value and may help in maintaining resale value. Exterior and interior designers, naval architects, and project managers are essential team members. As with the counterparts building trading and passenger vessels, yacht builders tend to be conservative in their outlook. Why change what’s worked before? They’re also in business to make money and will look to save costs where they can – in particular by interpreting poorly-drafted build agreements to suit themselves. To a certain extent, builders’ yards are, in reality, pieces of waterside real estate where a multitude of suppliers and subcontractors come together to create the finished article. So putting the right team in place is a vital first step, whose members will advise, negotiate and integrate the efforts and wares of countless third parties. And the more exceptional the project, the more exceptional your team needs to be. All the participants need to be involved right from the start and an excellent working relationship must be built up and maintained. The smaller the project, the greater the scope for individuals to combine roles, especially when it comes to the vessel’s design. KEY TEAM MEMBERS Having decided on how and where they wish to use their yacht, a trusted broker is the best starting point for some Members. Trusted is the key word here. Brokers usually work on commission. Are they looking to build a relationship which could last many happy years, or are they just looking to complete the next deal? Good brokers will have excellent industry knowledge and will add real value. They are sounding boards for ideas, and arbiters of practicality and good taste: the latter two elements being essential in maintaining resale value. The next team members to have on board are the exterior and interior designers, plus a naval architect where a custom yacht is envisaged, and a project manager. Designers produce designs, not technical solutions. Even the most accomplished designers won’t know exactly how workable their designs are, and architects don’t always have an eye for design. So a project manager will also be needed to coordinate all their efforts, and – diplomatically – seek compromises here and there. The project manager should have recent seagoing experience, as captain or engineer, on a vessel of similar type and size. Everyone in the team – you included – need honest feedback on what is and isn’t going to work. Because yachts are sources of liability as well as being assets, and to provide privacy and make accounting easier, yachts are nearly always owned through companies. Trusts can provide an additional layer of secrecy, but keep in mind that obtaining justice can be challenging in some far-flung jurisdictions should your expectations not be met. DON’T ECONOMISE Costs can be kept down by using a proven hull design. Many builders offer semi-custom yachts, where you’ll be making mostly aesthetic choices. If you want to stand out from the crowd, commercial and even military designs can be repurposed to make striking yachts. You need to be clear on who owns the intellectual property and that you have the right to use such designs. Some team roles can be taken on by the same individual or company. Exterior and interior design can be carried out by the same person – arguably leading to more harmonious aesthetics. But trying to save costs by omitting any of the core technical skills sets can have significant adverse effects. Oversights at this first stage can require expensive modifications later, causing lengthy delays. Everyone’s remit must be clearly defined and dovetailed, with strict timescales baked-in to their service contracts. Engaging a good lawyer, with build experience, is crucial here. DESIGN ESSENTIALS A yacht’s design will be determined, in part, by the minimum technical standards dictated by the Flag State , which in turn may require your yacht to be built in compliance with classification society Rules. These are based on internationally agreed-to standards, which must be adhered to if your yacht is going to ever to sail anywhere, and without which you will find it near impossible to insure the vessel. They vary according to length, internal volume and use. But such standards do not generally cover some aspects, such as preventive maintenance, which, over time, will help support the vessel’s condition and resale value. Remove the panels of any yacht and you’ll see an array of pipes, wires and items of equipment. If it’s too difficult or time-consuming to reach such items, they can be overlooked and, eventually, fail. The result is not just you and your guests being inconvenienced. Some repairs can be disproportionately expensive, and in extreme cases this can lead to your yacht not being accepted by a buyer when it’s time to sell. With regards aesthetics, most buyers are reasonably conservative. Avant garde designs are going to look newer for longer, and this will help to maintain their value. But when futuristic tips into plain weird the resale market shrinks rapidly and cost of ownership skyrockets. THE END RESULT Playwright George Bernard Shaw once quipped that reasonable people adapt themselves to the world, while unreasonable people adapt the world to themselves – hence progress depends on unreasonable people. Challenging the innate conservativeness of builders and regulatory authorities requires an experienced, imaginative and practical team. In the case of a full custom yacht, the end result of this exciting pre-build stage should be a design and specification you’re happy with, which is ready to be put out to tender with shortlisted builders, and a team ready to oversee the build. If a semi-custom or series production yacht is your preference, the result is a team which understands your vision and is ready to review, negotiate and modify the builders’ pre-existing designs and specifications. With your team in place, it's time to chose a Flag State , and possibly a classification society , before engaging a builder . Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Choose a Flag Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Choose a Flag

Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. Home Handbook Managing / / Limiting Liability 26 February 2011 Last revised minutes 5 Reading time Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. minutes 5 Reading time 26 February 2011 Last revised Some liabilities, such as those arising from collisions or the injury of a guest or crew member, are obvious. Other liabilities are less obvious: a large wash made by excessive speed can damage both fixed and floating objects some distance away. Occasionally, it may be possible to limit liability just by spelling this out in a well-drafted charter agreement or employment contract. Often, however, there will be no such contractual relationship with an aggrieved party. Yacht owners who are considered the legal owners, rather than just beneficial owners, can be held personally liable for incidents involving their yacht, putting their other assets at risk. Effective insurance, known as Protection & Indemnity (P&I) insurance, is crucial to protect owners against liabilities to third parties. International conventions allow owners to limit their liability, which provides a maximum payout for insurers and encourages trade. The limitation figure for liability does not differentiate between trading ships and yachts, even though yachts are often worth more. International conventions have specific requirements and standards of behavior that must be met to qualify for limitation. The limitation amount is determined based on the tonnage of the yacht in most countries, except for Italy, the United States, and parts of South America. The 1957 and 1976 Limitation Conventions have subtle differences, such as the circumstances under which the right to limit can be lost. Besides the owner, charterers, managers, captains, crew, employees, salvors, and insurers may also have the right to limit liability under the conventions. Owners can set up a fund with a court or competent authority, depositing an amount up to the limitation, to prevent the yacht from being detained in the future and protect other assets. Jurisdictional issues can arise, and different jurisdictions may apply different conventions and rules, making it crucial to seek legal advice promptly and establish jurisdiction in a favorable location with a lower limitation figure. The limitation amount is determined based on the tonnage of the yacht in most countries, except for Italy, the United States, and parts of South America. The 1957 and 1976 Limitation Conventions have subtle differences, such as the circumstances under which the right to limit can be lost. Besides the owner, charterers, managers, captains, crew, employees, salvors, and insurers may also have the right to limit liability under the conventions. Owners can set up a fund with a court or competent authority, depositing an amount up to the limitation, to prevent the yacht from being detained in the future and protect other assets. Jurisdictional issues can arise, and different jurisdictions may apply different conventions and rules, making it crucial to seek legal advice promptly and establish jurisdiction in a favorable location with a lower limitation figure. Yacht owners who are considered the legal owners, rather than just beneficial owners, can be held personally liable for incidents involving their yacht, putting their other assets at risk. Effective insurance, known as Protection & Indemnity (P&I) insurance, is crucial to protect owners against liabilities to third parties. International conventions allow owners to limit their liability, which provides a maximum payout for insurers and encourages trade. The limitation figure for liability does not differentiate between trading ships and yachts, even though yachts are often worth more. International conventions have specific requirements and standards of behavior that must be met to qualify for limitation. Even though yachts tend to be the only asset of an offshore owning company, it is possible, after a serious incident, for the individual ‘beneficial’ owner to be seen as the legal owner. This means that all the beneficial owner’s other assets are at risk. The need for effective insurance against liabilities to third parties, often known as Protection & Indemnity (‘P&I’) insurance, is therefore all the more important. Fortunately, throughout much of the world, the law gives owners the opportunity to restrict their liability. This is for two reasons. Firstly, insurers are more comfortable giving cover if they know what their maximum pay-out could be. Secondly, it is normally government policy to encourage trade. The owners of trading ships are more likely to put to sea if they know what their maximum liability could be. As an English judge recently put it, a ship owner might be prepared to lose his shirt, but not his entire wardrobe. As far as limitation is concerned, the law does not distinguish between trading ships and yachts, and, even though yachts are usually worth much more than similar-sized trading ships, the limitation figure will still be the same. CONVENTIONS But with the appropriate insurance in place, why should the owner need to even think about limitation? The answer is that the international conventions providing the limitation require certain standards of behaviour to be met before granting this invaluable right. That way, it is hoped, the sea is made a safer place for everyone. To understand how the opportunity to limit can slip through the owner’s fingers, it is necessary to look a little more closely at the international rules. It used to be that an owner could give up his ship to a claimant and walk away. As the ship would have been the beneficial owner’s largest asset, this was as much as a claimant could sensibly hope for anyway. This principal survives in Italy, the United States and parts of South America, but in most other countries the tonnage of the yacht will determine the owner’s limit in purely financial terms. A few nations still have no limitation regime whatsoever. EXAMPLE For example, a 35-metre yacht, with a gross tonnage of 120, negligently rams a cargo ship at night. Neither sinks, although the ship requires repairs costing £500,000. A further £500,000 of cargo is damaged, and the time spent carrying out repairs costs the owner another £500,000 in lost business. The yacht owner’s total liability in the UK would be just £650,000 approximately, not £1,500,000. The exact figure is determined using a basket of major currencies, and therefore changes daily. Most countries are party to either the 1957 or 1976 Limitation Conventions. There are subtle but vital differences between the two. The 1957 Convention contains a lower limitation figure, but no limitation is allowed where an incident was the owner’s fault or was the result of something the owner knew about. The 1976 Convention sets a higher figure, but the right to limit will only be lost where the owner did (or failed to do) something with the actual intention of causing loss, or not caring whether or not loss will be caused. Whether or not ‘owner’ here refers to the beneficial owner who chooses to skipper his own yacht, will depend on how transparent the owning company will be to the courts concerned. CHARTERER & MANAGER Aside from the owner, the 1957 Convention allows a charterer or manager, and the captain, crew and any other employees, to limit liability. The 1976 Convention adds salvors and insurers to that list. Broadly, both Conventions limit claims for loss of life or personal injury to any person carried on board, loss of or damage to property, liabilities for dealing with a wrecked or abandoned yacht, and the infringement of any non-contractual rights. The Convention limits do not apply to payments to salvors, or claims by the captain, crew or any of the owner’s employees where the law, or the employment contact itself, does not limit liability. Each Convention has lower limits for property claims than for injury or loss of life. FUND Under the Conventions, where the owner could benefit from limitation, a fund can be set up with a court, or other competent authority. The owner can then make a deposit or present a guarantee of no more than the limitation amount. The setting up of the fund is not a prerequisite to limitation, but will help prevent the yacht being detained in future over the same incident, which would require the security to be provided anyway prior to release, seriously disrupting any charter. The owner’s other assets are also placed out of the reach. This is particularly important where a court considers the owner to mean the beneficial owner. Where the yacht has been detained as security for a claim before a fund is established, it will have to be released. JURISDICTION Of course, any Convention will only be as effective as the law implementing it allows. Details, even the limits themselves and those entitled to them, can vary, as countries embroider the Conventions with their own unique thinking. A claim may be subject to a number of possible jurisdictions, each applying different Conventions in different ways. What’s more, each jurisdiction applies it’s own rules in deciding whether or not their courts can hear a claim, and if so whether their own law should apply. Jurisdiction can be founded by an owner, by bringing a pre-emptive action, in a jurisdiction with a favourably low limitation. Otherwise, there is a risk that an aggrieved party may arrest the yacht in a less favourable jurisdiction, presenting a vague case at that stage, leading to the case being later tried in those courts. Jurisdictional arguments are highly complex and an adventure playground for unscrupulous lawyers looking to rack up large bills! Lawyers have also been known to contrive to keep the business in their own courts, even where this is not in the owner’s best interest. INSURANCE Insurance policies normally state that where the assured would have been entitled to limit liability, but failed, unreasonably, to take the necessary steps to do so, the insurers’ liability will not exceed what would have been the limitation figure. This implies that there is an obligation to ensure, if possible, that the claim is subject to a jurisdiction with a relatively low limitation figure. What’s more, the burden of proving that any failure to limit is not unreasonable often rests with the assured. The assured is also normally under a separate obligation to obtain the necessary legal advice and assistance, as and when required. ADVICE The important point is for owners (or their managers) to seek advice promptly in the event of an incident, in order for the jurisdiction to be established where the limitation is lowest. At the outset, a trusted lawyer in a reputable jurisdiction must be instructed, with the guidance and consent of the insurer, in order to work out a strategy for minimising liability. Other local lawyers in the most favourable jurisdiction can then be appointed. The insurers will have a network of reliable lawyers covering most maritime jurisdictions. Liaising with insurers, from the moment an incident occurs, will bring the insurers’ considerable expertise to bear and prevent the insurer from later claiming that the assured failed to do everything possible to limit liability. As well as being a source of unrivalled pleasure and prestige, yacht ownership also carries with it certain responsibilities. As long as owners appreciate the importance of taking timely advice, from a reputable source, and of liaising closely with their insurers, they can rest assured that they have done everything possible to limit any liability. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Piracy & Protection Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Piracy & Protection

Unavailable at present Latest Position Wright A Way & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 36 m Length Builder & Co Builder 1997 Build year 360 Gross tonnage France Registry Particulars Marker

The Owners Club started with a chance meeting between two owners racing in the Superyacht Cup. They wondered if yacht owners, could speak with one voice, and share best practice, when buying, building, owning and selling. They also thought to pool their considerable buying power to negotiate discounts for insurance, finance and lawyers fees. Home About Genesis / / A Fresh Start COMMON SENSE FOR UNCOMMON WEALTH FAQs Why is it that, while we can innovate, build strong businesses and drive economies forward, our voice as yacht owners remains so quiet? Sure, our brokers, managers and captains have our backs, but they’ve got their hands full. Who’s there to take a high-level view of ownership? Who’s there to provide guidance so we’re not each taking advice and reinventing the wheel? Who’s drafting the agreements and documents we have to have in place? Shouldn’t we be working together? Yes. It’s common sense. I can’t believe we’re all taking advice on pretty much the same things – crew employment, taxes, etc. It’s great to see owners and their reps come together like this. CAPTAIN 72m MY FROM COMPETITION TO COOPERATION Contact Us It all started with a chance meeting between two owners. Sitting on the rail of a Superyacht Cup competitor, they wondered why yachts were subject to so much regulation. Protecting seafarers on large ships, many of the complex rules are arbitrary and inconsistent when applied to smaller vessels. Could this be put right? Yes, if only we, the owners, could speak with one voice. And if coming together, let's share best practice, rather than seek expensive advice at every turn. And why not pool our considerable buying power to negotiate discounts?

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 26 m Length Builder & Co Builder 2012 Build year 80 Gross tonnage Marshall Islands Registry Particulars Yardstick

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Italia srl Builder 2002 Build year 612 Gross tonnage British Virgin Islands Registry Particulars Sample

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 32 m Length Thompson Yachts Builder 2018 Build year 347 Gross tonnage United Kingdom Registry Particulars Token

Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. Home Handbook Selling / / Preparing Your Crew 29 January 2025 Last revised minutes 7 Reading time Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. minutes 7 Reading time 29 January 2025 Last revised Preparing the crew for the sale of your yacht is an essential part of the selling process. Tact and transparency are key to ensuring that crewmembers play their part in a swift sale. A lack of cooperation on the part of crew can make marketing that much harder, while a disgruntled crewmember can potentially bring the sale process to a halt. With a good chance of being re-employed by the buyer, crew should be encouraged to see the sale process as a recruitment opportunity, and a normal part of a career afloat. Cooperation is crucial. The sale of a yacht typically requires terminating existing crew employment. Early engagement with the captain ensures crew cooperation, vessel upkeep, and a smooth transition. Buyers prefer a clean purchase. Rather than acquiring the owning company (which may have hidden liabilities), buyers usually re-register the yacht, necessitating crew redundancies. Most crew members are legally considered employees, though specialist technicians may be independent contractors with different rights. Employers must consult crew about redundancy, both individually and collectively if 20+ jobs are affected. Written notifications and meeting records are essential. Notice depends on service length, but if immediate sale is required, pay in lieu of notice may be agreed. Crew with at least two years’ continuous service are entitled to redundancy pay, calculated based on age, service duration, and salary. Under the Maritime Labour Convention (MLC) 2006, employers must cover costs for returning crew home, including travel and accommodation. Crew Release Letters, signed by crew confirming receipt of all owed payments, help protect sellers from future claims. Employment Tribunal claims remain a risk. Notice depends on service length, but if immediate sale is required, pay in lieu of notice may be agreed. Crew with at least two years’ continuous service are entitled to redundancy pay, calculated based on age, service duration, and salary. Under the Maritime Labour Convention (MLC) 2006, employers must cover costs for returning crew home, including travel and accommodation. Crew Release Letters, signed by crew confirming receipt of all owed payments, help protect sellers from future claims. Employment Tribunal claims remain a risk. Cooperation is crucial. The sale of a yacht typically requires terminating existing crew employment. Early engagement with the captain ensures crew cooperation, vessel upkeep, and a smooth transition. Buyers prefer a clean purchase. Rather than acquiring the owning company (which may have hidden liabilities), buyers usually re-register the yacht, necessitating crew redundancies. Most crew members are legally considered employees, though specialist technicians may be independent contractors with different rights. Employers must consult crew about redundancy, both individually and collectively if 20+ jobs are affected. Written notifications and meeting records are essential. For clarity’s sake, we’re going to look at the case of United Kingdom law, which applies to any UK-registered yacht, or any vessel operating for the UK, or to any crewmember operating from the UK (which is very broadly defined). Similar rules apply to other Red Ensign vessels. COOPERATION Buyers will usually want to buy the yacht, rather than its owning company, and re-register it in the name of their new owning company – enough though this is a more complex route than simply transferring company shares. There are various reasons for this, but the most important is that an owning company’s debts, lawsuits, unpaid taxes and other obligations may not be immediately apparent. Debts can still attach to a yacht directly, but at least such risks are minimised. The upshot of this is that the existing crew’s employment has to come to an end. But they can’t simply be ‘let go’. There are legal and financial obligations that sellers must meet ahead of the sale. As soon as you’re minded to sell your yacht, you or your representative needs to discuss this with your captain(s) to ensure their full engagement and cooperation. The captain will be instructed to disseminate this information to the crew. The vessel must look her best for photoshoots, and the pre-purchase survey must not highlight missed maintenance. Recruitment is an expensive process for buyers. Re-hiring makes sense – especially in the case of engineers who will know the vessel’s systems and technical idiosyncrasies better than anyone, but the existing crew’s expectations need to be managed. The marketing period is their opportunity to shine. STATUS Nearly all crew will, as a matter of law, have the status of employee – but this isn’t always the case. Specialist technicians might be engaged on board in respect of a specific project, but they’re likely to be contractors and won’t have the same rights. CONSULTATION With redundancy on the horizon, employers are obligated to consult with crewmembers, both on an individual basis – and a collective one if 20 or more are to lose their jobs. This is not just a formality; it's about ensuring a transparent and fair process. For both types, employers should provide a written notification of any potential redundancy, and a representative should discuss the situation in person – with records of this kept. NOTICE How much notice period is required depends on the length of service, i.e. 1 week’s notice for 1 month to 2 years of service, 1 week’s notice per year of service for 2 to 12 years17, and 12 weeks’ notice for 12 or more years of service. If the employment contract specifies a longer notice period then this must be honoured. Of course, this is a problem where the sale of a yacht is to complete within a short timeframe. So, employers can offer pay in lieu of notice if the contract allows for this, or otherwise the amount will be that which is mutually agreed. REDUNDANCY PAY Employees who have at least two years’ continuous service will be eligible for redundancy pay, calculated on the basis of age, length of service and pay. REPATRIATION Repatriation is an essential seafarer’s right, enshrined in the Maritime Labour Convention (MLC) 2006. Employers are obligated to cover all costs including travel, accommodation, and subsistence until the individual is safely home. The home country should be stated in the employment agreement, and if that’s where the vessel is then the crewmember will have been repatriated simply by stepping off the passerelle. RECORDS While the importance of record-keeping throughout cannot be over-emphasised, the most important documents to obtain are the Crew Release Letters. Drafted by the seller’s lawyer, these are addressed to the seller and signed by each crewmember, confirming that they have received everything owed to them and have not claim against the owning company or the yacht. Once signed, while not a complete bar to legal action, this provides the best evidence that the crewmember concerned has no claim against the seller. The provision of a full set of such from each and every crewmember is likely to be a condition of the sale, so a refusal to provide one can be disruptive. Crewmembers can also bring a later claim in an Employment Tribunal. This is a public forum, akin to a court, in which beneficial owners can be – and have been – named. PREPARE EARLY For a long time, it was assumed that if crew didn’t like the fact that the yacht was being sold then that was simply tough luck. But, with easier access to advice, and with seafarer unions (especially Nautilus ) more willing to act on behalf of individual members, it is important to prepare crew for a sale as early and fully as possible. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Preparing the Paperwork Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Preparing the Paperwork

Obtaining a reference for a candidate makes a lot of sense, especially in the yachting sector where standards of service are so subjective. There is a common misunderstanding among shoreside employers that they are only allowed to confirm dates of employment and role(s). This is incorrect. You may be obliged to provide one, and refences for captains and crew are commonly sought and given in any event. But care must be taken when providing them. Home Handbook Employing / / Oh Referee! 1 March 2024 Last revised minutes 7 Reading time Obtaining a reference for a candidate makes a lot of sense, especially in the yachting sector where standards of service are so subjective. There is a common misunderstanding among shoreside employers that they are only allowed to confirm dates of employment and role(s). This is incorrect. You may be obliged to provide one, and refences for captains and crew are commonly sought and given in any event. But care must be taken when providing them. minutes 7 Reading time 1 March 2024 Last revised Obtaining a reference for a candidate makes a lot of sense, especially in the yachting sector where standards of service are so subjective. There is a common misunderstanding among shoreside employers that they are only allowed to confirm dates of employment and role(s). This is incorrect. You may be obliged to provide one, and refences for captains and crew are commonly sought and given in any event. But care must be taken when providing them. Employers commonly make job offers contingent upon satisfactory references, which should be explicitly stated in the offer letter. Employers may be obligated to provide subjective references if it's customary in their industry or contractually specified. Not providing references could lead to claims of discrimination or breach of trust. References can come from individuals or corporate entities and can be either written or oral. Using third-party services like Superyacht References is recommended. Employers should ensure accuracy, fairness, and compliance with data protection laws when providing references. Policies should be established and adhered to. References should include employment duration, roles, and may cover performance, disciplinary history, and reasons for departure. Comments on suitability must be based on first-hand experience only. Employers have a duty to provide accurate and impartial references. Negligent misstatement and defamation risks exist, so references should be substantiated and labelled as private and confidential. Providing references involves handling personal data, necessitating compliance with data protection regulations. Guidance on this should be sought. Employers should disclose poor disciplinary records and ongoing proceedings in references to avoid liability for providing misleading information. Employers often include disclaimers of liability in references, though they don't absolve liability for fraud or deceit by the provider. Employers should establish clear policies on who can provide references, permissible content, and record-keeping requirements. Having template references attached to policies is recommended. Employers have a duty to provide accurate and impartial references. Negligent misstatement and defamation risks exist, so references should be substantiated and labelled as private and confidential. Providing references involves handling personal data, necessitating compliance with data protection regulations. Guidance on this should be sought. Employers should disclose poor disciplinary records and ongoing proceedings in references to avoid liability for providing misleading information. Employers often include disclaimers of liability in references, though they don't absolve liability for fraud or deceit by the provider. Employers should establish clear policies on who can provide references, permissible content, and record-keeping requirements. Having template references attached to policies is recommended. Employers commonly make job offers contingent upon satisfactory references, which should be explicitly stated in the offer letter. Employers may be obligated to provide subjective references if it's customary in their industry or contractually specified. Not providing references could lead to claims of discrimination or breach of trust. References can come from individuals or corporate entities and can be either written or oral. Using third-party services like Superyacht References is recommended. Employers should ensure accuracy, fairness, and compliance with data protection laws when providing references. Policies should be established and adhered to. References should include employment duration, roles, and may cover performance, disciplinary history, and reasons for departure. Comments on suitability must be based on first-hand experience only. It makes sense to make any offer of employment conditional upon obtaining satisfactory references. For the avoidance of doubt, this should be phrased in the job offer letter as being acceptable to the employer and not just satisfactory in a general sense. References can be given either personally or on behalf of the employer, and may be written or oral. But take care. It has been known, for example, for candidates just to give the telephone number of a friend who poses as the captain of a current or previous yacht, so it’s wise to engage an independent third party such as Superyacht References . MUST YOU PROVIDE A REFERENCE? As a present or former employer, you can be obliged to provide a subjective reference (beyond confirming dates of employment and role(s)) if there is an express obligation to do so in the employment contract, or because it’s customary in a particular industry – and is, therefore, an implied contractual term. It is, of course, very much the custom for yacht captains and departmental heads to provide references. Indeed, it’s poor form in yachting not to do so, and a refusal can be bad for a captain and/or boat’s reputation. If it’s going to be your policy, as employer, not to provide subjective references, then you should make this your formal policy, and stick to it, to avoid potential claims of discrimination or breach of the implied trust and confidence. In particular, if an employee (or former employee) has previously initiated discrimination proceedings against the employer, or alleges unlawful discrimination, a refusal to furnish a reference could lead to an additional claim of victimisation. 10 PRACTICAL TIPS ON GIVING A REFERENCE When furnishing a reference, you, as an employer, should ensure that: No statements are inaccurate The reference offers a fair overview but does not need to include every detail The reference does not convey a misleading impression The reference does not unfairly portray the subject in a negative light The subject is informed of any complaints or performance issues referred to Information regarding absence adheres to the employer's data protection obligations Comments on performance or absence abide by disability discrimination law The reference is marked as being private and confidential and for the addressee only Your policies on the subject are adhered to If providing just dates and job roles, your policy of only providing this should be referred to REFERENCE CONTENTS A reference should always set out the duration of employment and specific role(s) undertaken. The reference may also encompass other matters, such as performance, disciplinary history, perceptions of attitude and integrity, punctuality and the reason for departure. Any comments on suitability for a new role must always be – expressly – restricted to first-hand experience only. If the employee was dismissed, then this should be outlined accurately, as a favourable reference may weaken an employer's defence against an unfair dismissal claim. Maintaining consistency in providing references to different employees is vital to mitigate any allegations of discrimination or victimisation. GENERAL DUTIES When providing a reference, you (in reality, of course, your captain or head of department) must exercise reasonable care to ensure that the information provided is accurate and impartial, and does not create a false impression. There is no requirement for references to contain extensive details or be exhaustive in scope. Particular care must be taken when remarking on performance or sickness, as these could lead to a claim for disability discrimination. Employers bear legal responsibility for the content of corporate references since they are provided on the employer's behalf. So it's advisable to establish a [policy] outlining who can provide references, and the permissible content. The legal implications remain the same whether the reference is given verbally or in writing. NEGLIGENT MISSTATEMENT A referee can face legal action for negligent misstatement if it provides an inaccurate reference. Essentially, employers providing references must exercise reasonable care in their preparation. Failure to do so could render the employer liable if the employee suffers harm due to the reference. In particular, opinions expressed in the reference must be supported by the facts. DEFAMATION A false statement that damages a person's reputation in the eyes of reasonable members of society could constitute defamation – either in the form of a libel (if written) or slander (if oral). As long as the employer believed the reference to be accurate, and provided without malice, the claim for defamation won’t get far. Referees should therefore substantiate their comments where possible, demonstrating their truthfulness or honest belief in their accuracy. Further protection can be provided by labelling references " Private and Confidential " and " for the addressee only ". MALICIOUS FALSEHOOD An employee could also pursue a claim for malicious falsehood against a referee if he or she can demonstrate that the reference includes false statements published with malice (meaning the maker knew the statements were false or showed reckless disregard for their truth). While defamation safeguards reputation, malicious falsehood safeguards economic interests. LIABILITY TO THE RECIPIENT It’s easy to provide a polite, even glowing reference – especially in respect of a colleague and friend with whom the provider has spent many months together in the confines of a yacht. But risks can arise from an employer, especially through the agency of a captain or departmental head, providing an excessively positive reference. Previous employers automatically owe a duty of care to the recipient of the reference, to make sure that it is accurate. A well-worded disclaimer should be added just in case of any inaccuracies. DATA PROTECTION Providing a reference typically means handling personal data, and those involved must abide by the UK GDPR and the Data Protection Act 2018. Guidance for employers is provided in the (outdated, but still useful) Information Commissioner's Office (ICO) Employment Practices Code . Helpfully, Part two of the Code provides recommendations for employers issuing references, including establishing and communicating a clear policy regarding who can provide corporate references and under what circumstances. The Code advises against providing confidential references about an employee unless their explicit consent is obtained. It is vital to maintain the security of references and securely dispose of them when an employee leaves the organization, unless retention is required by law. DISCIPLINARY MATTERS It’s always going to be a contentious area, but it’s clear from cases on the point that have reached court that employers should disclose a poor disciplinary record, and details of any ongoing disciplinary proceedings, or risk being liable for providing a misleading reference. Unresolved disciplinary issues should also be mentioned, as not to do so could mean providing an incomplete picture. Adding a disclaimer is advisable. DISCLAIMERS It's customary for employers to add a disclaimer of liability – often specifically in respect of any negligent misstatement. This is usually effective as far as liability to the recipient is concerned, and is well worth adding, but it must such a disclaimer wouldn't absolve liability for fraud or deceit, meaning the employer cannot knowingly or recklessly make false statements. POLICIES Finally, employers ought to establish a well-defined written reference policy, outlining Which individuals are authorised to provide references; How references may be provided (in particular whether oral references may be given); The permissible content; and Any prohibited content. Having a template reference annexed to the policy is a useful further measure, and there should also be an obligation for records to be kept of oral references provided. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Commission or Kickback? Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Commission or Kickback?

The first question your naval architect is likely to ask is where your yacht will be registered. That registry’s regulations will do much to determine the design of your yacht. But, beyond that, the registry provides the legal framework for crew employment, and may determine how easily insurance and finance can be obtained. So research this in-depth rather than accepting your architect’s suggestion. Home Handbook Building / / Choose A Flag 10 May 2023 Last revised minutes 4 Reading time The first question your naval architect is likely to ask is where your yacht will be registered. That registry’s regulations will do much to determine the design of your yacht. But, beyond that, the registry provides the legal framework for crew employment, and may determine how easily insurance and finance can be obtained. So research this in-depth rather than accepting your architect’s suggestion. minutes 4 Reading time 10 May 2023 Last revised The first question your naval architect is likely to ask is where your yacht will be registered. That registry’s regulations will do much to determine the design of your yacht. But, beyond that, the registry provides the legal framework for crew employment, and may determine how easily insurance and finance can be obtained. So research this in-depth rather than accepting your architect’s suggestion. Registering a yacht in a country's ship registry determines its nationality, owner's responsibilities, and compliance with laws and regulations. The choice of registry impacts insurance availability, financing options, chartering regulations, taxation requirements, scrutiny from port officials, and service provided. Unusual flags may reduce insurance options and increase premiums. Lenders require high maintenance and safety standards and confidence in the country's rule of law for financing agreements. Chartering requires compliance with international regulations, and certain registries have simplified safety codes for cost-effective compliance. Cabotage rules may require local registration for commercial operations in specific jurisdictions. Temporary Admission allows tax avoidance in the EU for non-commercial use, but specific advice is necessary. Scrutiny by port officials can cause delays and inspections may be prioritized based on flag categorization. Helpful registries with easily accessible regulations and guidance are preferred. Local agents and service providers can assist with overcoming time zone difficulties, but may come with additional costs and risks. Cabotage rules may require local registration for commercial operations in specific jurisdictions. Temporary Admission allows tax avoidance in the EU for non-commercial use, but specific advice is necessary. Scrutiny by port officials can cause delays and inspections may be prioritized based on flag categorization. Helpful registries with easily accessible regulations and guidance are preferred. Local agents and service providers can assist with overcoming time zone difficulties, but may come with additional costs and risks. Registering a yacht in a country's ship registry determines its nationality, owner's responsibilities, and compliance with laws and regulations. The choice of registry impacts insurance availability, financing options, chartering regulations, taxation requirements, scrutiny from port officials, and service provided. Unusual flags may reduce insurance options and increase premiums. Lenders require high maintenance and safety standards and confidence in the country's rule of law for financing agreements. Chartering requires compliance with international regulations, and certain registries have simplified safety codes for cost-effective compliance. With some limited exceptions, all yachts have to be registered in a country’s ship registry, and fly that nation’s maritime flag, known as an ensign. That registry is often know as the Flag State, especially to distinguish it from the Port State – the latter being the country where a yacht is located when not in international waters. Registration is about much more than just choosing a flag to wear on the stern: it’s what gives a yacht nationality and frames owner’s, manager’s and crewmembers’ responsibilities. The choice of registry affects the laws and regulations the owner must adhere to, the ready availability of insurance and finance, whether certain taxes must be paid and the attention port officials may pay the vessel. Registration can also prove ownership and is a requirement for international cruising. Notably, there are registries entry into which proves nothing in terms of title. Examples of these include Delaware and the United Kingdom Part III Small Ships Register. Fees and expenses for registration are relatively small, but choosing the wrong registry can be a very costly error. Making that selection is a complicated process requiring independent, expert advice. A trap for the unwary is the recommendation of a certain flag with which a naval architect, project manager or other adviser happens to be familiar – without due consideration of all the owner’s particular circumstances and wishes. SIX FLAGGING FACTORS While the registries themselves are state agencies, many popular ones are managed on a commercial basis and – to an extent – compete with each other. This is a good thing since levels of service must be raised above that which one might otherwise expect from the government departments of certain countries. However, there can also be an incentive to be overly flexible when it comes to the drafting and enforcement of safety regulations. To an extent, flag choice can come down to a process of elimination. Emotions can be a factor but it’s best to let head rule heart. Here are the six main factors you should consider: Insurance Finance Chartering Taxation Scrutiny Service INSURANCE All yachts should be insured and third party cover is normally mandatory. Underwriters will want to understand the risk they’re agreeing to cover, and key to this will be the flag. An unusual flag will not make insurance impossible to find, but it will reduce the number of underwriters with an appetite to write such business thereby pushing up premiums. FINANCE Some yachts are financed, by means of a lease or loan , as a means to free-up investment capital for owners’ businesses. As with insurers, lenders will be taking a financial and legal interest in the vessel, and will want to make sure that the owner abides by high maintenance and safety standards. Lenders will also need to have confidence in the rule of law in the country of registration itself, since the mortgages will be entered in the registry. CHARTERING For the protection of paying guests, chartering requires adherence to a wide range of international regulations. Fortunately, certain registries have created safety codes to simplify compliance which reduces cost and administration. Certification by a classification society is normally required above a certain size, although this size varies. Some owners may regard classification as expensive and unnecessary (and it may not be possible for some vessels not originally built to class rules) while others choose this route for peace of mind regardless of charter activity. Chartering isn’t possible at all with some flags when the vessel is over a certain size, for example Jersey and Guernsey. The existence of any cabotage rules should also be considered. These are protectionist measures requiring vessels operating commercially to be registered locally if not engaged in international voyages. The best example of this is the United States. If the plan was to charter in US waters there would no other real choice but to fly the Stars and Stripes. TAXATION If not being used commercially, it is possible – where the beneficial owner is not tax resident in or connected with the European Union – to avoid the payment of Value Added Tax and customs in the EU on the yacht itself, for up to 18 months, through Temporary Admission. However, this requires registration outside the EU amongst other conditions. It also requires detailed, specific advice to ensure that the correct information is given and at the right time. VAT can be up to 25% and charged on the hull value. Port officials may detain a vessel pending payment (and any fines and/or interest). SCRUTINY Any yacht can be boarded, at any time, by a port official whose job it is to make sure that all the paperwork is in order – which can be invasive and can cause unexpected delays. As their time and resources are limited, inspections are often prioritised according to flag. The Paris Memorandum of Understanding, for example, is a group of 27 European and North Atlantic nations which inspect safety, security and environmental standards of more than 18,000 vessels each year. Other similar such groups exist worldwide. Information is shared between members, and flags categorised into White, Grey and Black lists. White List categorisation should mean fewer inspections but does not lead to immunity altogether. SERVICE If a registry isn’t helpful and doesn’t make its regulations and guidance easily available, in a language which managers, captains and crew can understand, then as a matter of common sense it can be ruled-out. Local agents and corporate service providers can be used to overcome time zone difficulties, but at a cost and with the risk of misunderstandings and further delays. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Keep it Classy Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Keep it Classy

Unavailable at present Latest Position New Horizons Listing Email WhatsApp +44 7773 246 246 Central Agent 30 m Length Builder & Co Builder 2004 Build year 70 Gross tonnage Cayman Islands Registry Particulars Snapshot

When a deal’s on the table, it can be annoying to be asked not only for endless documents but for documents which must be authenticated in seemingly arcane ways. In the case of Bills of Sale, there’s no often no choice: it’s what many ship registries require for (re)registration. Providing authenticated documents doesn’t have to take too much additional time or resources: it just takes planning and forethought. Home Handbook Selling / / Document Authentication 8 August 2024 Last revised minutes 6 Reading time When a deal’s on the table, it can be annoying to be asked not only for endless documents but for documents which must be authenticated in seemingly arcane ways. In the case of Bills of Sale, there’s no often no choice: it’s what many ship registries require for (re)registration. Providing authenticated documents doesn’t have to take too much additional time or resources: it just takes planning and forethought. minutes 6 Reading time 8 August 2024 Last revised When a deal’s on the table, it can be annoying to be asked not only for endless documents but for documents which must be authenticated in seemingly arcane ways. In the case of Bills of Sale, there’s no often no choice: it’s what many ship registries require for (re)registration. Providing authenticated documents doesn’t have to take too much additional time or resources: it just takes planning and forethought. Ensuring document authenticity is crucial to prevent fraud and confirm the validity and irreversibility of transactions, particularly in high value purchases like yachts. As it's easy to fake documents, multiple methods and cross-checks are necessary to build confidence in their authenticity, though no method is fool-proof. A certified copy is a true copy of an original document, usually certified by a lawyer or company director, but it doesn’t confirm the original document’s genuineness. Notarisation is the verification, certifying, and sealing of documents, which is mandatory in some jurisdictions to make documents valid and enforceable. Legalisation involves government bodies authenticating the signature or seal on a document, especially for international use, often requiring an apostille certificate if both countries are Hague Convention signatories. Certification must be done by authorized individuals like lawyers or company officials, and deliberate false certification can lead to serious legal consequences. The correct wording and format for certification and notarisation must be used, often specified by the third party requiring the document. Notaries follow strict procedures, including checking IDs and corporate documents, and may require translations for documents in foreign languages. Even notarised and legalised documents can be forged, so further verification through online searches and government registers is recommended. Proper planning and adherence to authentication requirements can prevent delays and ensure compliance with legal and registration needs, particularly for documents like Bills of Sale. Certification must be done by authorized individuals like lawyers or company officials, and deliberate false certification can lead to serious legal consequences. The correct wording and format for certification and notarisation must be used, often specified by the third party requiring the document. Notaries follow strict procedures, including checking IDs and corporate documents, and may require translations for documents in foreign languages. Even notarised and legalised documents can be forged, so further verification through online searches and government registers is recommended. Proper planning and adherence to authentication requirements can prevent delays and ensure compliance with legal and registration needs, particularly for documents like Bills of Sale. Ensuring document authenticity is crucial to prevent fraud and confirm the validity and irreversibility of transactions, particularly in high value purchases like yachts. As it's easy to fake documents, multiple methods and cross-checks are necessary to build confidence in their authenticity, though no method is fool-proof. A certified copy is a true copy of an original document, usually certified by a lawyer or company director, but it doesn’t confirm the original document’s genuineness. Notarisation is the verification, certifying, and sealing of documents, which is mandatory in some jurisdictions to make documents valid and enforceable. Legalisation involves government bodies authenticating the signature or seal on a document, especially for international use, often requiring an apostille certificate if both countries are Hague Convention signatories. When yachts are bought, there’s much which needs to be proven by the seller before the buyer feels comfortable handing over a considerable sum. Who is the vessel actually owned by? Has the owner (if a company) formally resolved to sell the vessel – and appointed an individual to represent it at the closing and sign the necessary paperwork? The list goes on. And that list must be included in the sale agreement. To be presented with documents is one thing, but how do buyers know that such documents are what they appear to be? This is especially important when it comes to a selling company’s incorporation and powers: originals of the vessel’s own documentation can be provided, but the selling company will not usually be providing originals of its incorporating documentation. No single method of authentication is foolproof, as the authenticating documents, certificates, seals and signatures can themselves all be forged with ease. It’s about building sufficient confidence, combining different approaches and cross-checking with other sources where possible. It’s always good to avoid unnecessary bureaucracy and expense, but keep in mind that third parties, such as yacht registries, may need documents to be authenticated in a particular way. Whatever methods are chosen, these need to be agreed upon at the outset. Now let’s look at the main methods. CERTIFICATION What is a certified copy? A certified copy is an accurate, complete and current copy (usually a photocopy, scan or photo) of an original document. It’s used when it’s not practical or possible to produce the original document. The certified copy will include a statement that it is a true copy of the original as at the date certified. Crucially, it does not certify that the original document is genuine, only that it is a true copy of the original. Who can certify a document? The certifying person is usually a lawyer or, in the case of a document relating to a company, a director or secretary of that company. If the document is also needed by a third party then it’s worth checking with that third party who can and can’t certify. In the United Kingdom, if an authorised person deliberately falsely certifies a document as being a true copy of the original, they can go to prison for up to 18 months. What’s the correct format? Any third party needing the copy may also specify the wording used. If not, the following wording is usually acceptable: “I [insert full name of the certifying person] certify that this document is a true and complete copy of the original.” In the case of photographic identification, the following could be used: “I [insert full name of the certifying person] certify that this document is a true and complete copy of the original and a true likeness of the individual [insert name].” The certifying person will then need to sign, write his or her full name under the signature, and add their law firm’s name and address. Finally, the date is added. The exact wording and format can vary, but the essential elements must be there. Provided all pages are attached together, then there’s not normally any need to certify each page – with the notable exception of Powers of Attorney, all pages of which must, in the UK, be certified "I certify this is a true and complete copy of the corresponding page of the original". Fees for certification There is no set fee for certification: fees must be fair and reasonable and will reflect time spent. NOTARISATION What is notarisation? The job of a notary (also known as a notary public) is to prepare, attest or certify documents (originals or copies) under an official seal, especially for use in certain jurisdictions. Notaries are usually (but not necessarily) qualified lawyers. Why is notarisation needed? Notarisation may seem unnecessary – given that a far wider range of professionals can just certify copies – but it’s simply part of the legal landscape in some countries. Failing to notarise can render a document invalid or unenforceable. What does notarisation involve? At the outset, notaries must also comply with anti-money laundering (AML) and data protection legislation, so it’s useful to have documents likely to be needed readily available so as to avoid unnecessary delays. Individuals involved will need to provide photographic identification. Where an individual presents corporate documents for notarisation, the company’s constitutional documents must also be presented, along with a Power of Attorney empowering that individual, and the appropriate resolutions. The relevant document is read in full in the notary's presence. If a foreign language document is to be notarised, a translation may be needed. A notary can only authenticate a document drawn up in a foreign language if they are satisfied as to its meaning. Scrivener notaries must be fluent in at least one language other than English. Once satisfied, the notary adds his or her notarial certificate to the document being notarised. The specific form of the certificate will depends on who needs the document to be notarised, and this information needs to be obtained beforehand. The notarial certificate is then signed by the notary and sealed with the notary's official seal. The notary keeps a set of the originals, or copies of all documents that they make, which then serves as a permanent record. These records must be made available to anyone with a right to see them including the notary's client and any other party involved. The final document should not be taken apart (for example, to scan) as notarised documents which have been tampered may not be accepted by the party requiring it. E-notarisation is available in some jurisdictions, which can make the whole proves much quicker. LEGALISATION What is legalisation? Certification and even notarisation isn’t good enough for some recipients. After all, who’s to say that the certifier or notary is duly qualified? And so it is that such document (in practice, normally notarised) may need to be ‘legalised’. This is the process by which one government body authenticates the signature, seal and/or stamp to the satisfaction of another country’s government body. As with the other forms of authentication, a failure to legalise a document may mean that the document is invalid or unenforceable (or both) in the jurisdiction where it is to be relied on. Who can legalise a document? Who needs to legalise the document in one country depends on the whether that county, and the recipient’s country, have both ratified the Hague Convention of 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents (commonly known as the Hague Convention). 91 countries are signed-up at present. Where both are Hague Convention countries, then a standardised ‘apostille’ certificate can be obtained, relatively quickly and inexpensively. In the UK, this is done by sending the document to the Legalisation Office of the Foreign, Commonwealth and Development Office (FCDO). The FCDO checks the notary's or certifier’s name and signature against its register. If all’s in order, an apostille is applied to the document and it’s returned. The increasing use of e-apostilles is reducing fees and turnaround time, but it’s worth checking how long it could take in advance and planning accordingly. Where one country isn’t a Hague Convention signatory, then it’ll be up to the recipient’s country’s local embassy or consulate to legalise the document. Under their rules, it may also be necessary to obtain a Hague Convention apostille beforehand. The parties can arrange legalisation themselves. Legalisation can also be arranged by a notary on the parties' behalf. This is often preferable as the notary will be familiar with the process. FURTHER VERIFICATION Certified copies, notarial certificates and apostilles can all be, and occasionally are, forged. At least apostilles issued by the FCDO, for example, can be checked online on a special UK government website, if the apostille date and number are available. More broadly, it makes sense to conduct broad online searches into individuals and companies. Increasingly, company documents can be viewed on, or downloaded directly from, online government company registers and/or third party corporate information providers. The UK has long-since provided a wealth of company information. Now many classic offshore jurisdictions also provide extensive information which can be used to cross-check directorships and constitutional documents. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Preparing Your Crew Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Preparing Your Crew

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 58 m Length Thompson Yachts Builder 2020 Build year 642 Gross tonnage United Kingdom Registry Particulars Specimen

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 50 m Length Finest Craft Builder 2004 Build year 498 Gross tonnage Cayman Islands Registry Particulars Manifestation

Superyacht owners have a collective worth greater than the annual GDP of Sweden. They are influencers in the truest sense. And now you can reach out to them and their gatekeepers through a platform which is independent and respected. Home About Advertise / / A Wealth of Opportunity The global fleet over 30 metres in length consisted of 5,396 superyachts in operation at the start of 2022 ... The total average final asking price for all used yachts sold, went up in 2021 to €11.8 million. The State of Yachting 2022 REACH THE GLOBAL ELITE Get In Touch Our Members are, by definition, some of the wealthiest people in the world. Working on the widely-accepted Ten Percent Rule, large yacht owners are together worth €637bn.* Which is slightly more than the annual GDP of, say, Sweden.* They are influencers in the truest sense. And now you can reach out to them and their gatekeepers through a platform which is independent and respected. *Sources: SuperYacht Times, The State of Yachting 2022, €(11.8m average value x 10 x 5,396 units), International Monetary Fund World Economic Outlook Database, April 2024 No Conflicts of Interest Contact Us Transparency and impartiality being central to the Club’s ethos and success, we will welcome advertising and sponsorship in this, our new website. We are not, however, a yachting media outlet and do not rely on advertising revenue. There are plenty of such platforms, and they do a great job. But we’re exclusively on the side of owners. In order to avoid any conflicts of interest, we cannot carry advertising in respect of yachts, or yachting products or services. If you’d like to explore promoting your non-marine business, please get in touch.

The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. Home Handbook Managing / / Going Dark 28 November 2022 Last revised minutes 4 Reading time The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. minutes 4 Reading time 28 November 2022 Last revised The automatic identification system (AIS) is a tracking system that establishes the positions of ships, and fixed and floating objects, in real time. Used as a navigational aid, it also lets the world see a yacht’s position - which isn’t always what we owners want. There are times when ‘going dark’ is allowed and times when it’s not. The Automatic Identification System (AIS) enhances safety and security by providing positional information and supplementing radar for traffic situation awareness. AIS is used in search and rescue operations, providing accurate information on the position of survival craft. It automates mandatory ship reporting to port authorities or vessel traffic service stations. Ships over 300 gross tonnage engaged in international voyages are required by SOLAS regulations to be fitted with Class A AIS equipment. Local regulations may be significantly more stringent. Yachts not subject to SOLAS requirements can carry Class B AIS devices. AIS systems consist of a small box with VHF transmitters, receivers, and a central processing unit, connected to various shipborne sensors and navigation systems. It transmits static information, dynamic information updated from ship sensors, and voyage-related information. AIS should not be solely relied upon for collision avoidance and does not replace radar target-tracking. It can be switched off under certain circumstances, but the master should report it to the competent authority and restart it when the source of danger has disappeared. Failure to operate AIS may lead to penalties by port state authorities and insurance underwriters may claim the vessel was unseaworthy in case of a collision without AIS. AIS systems consist of a small box with VHF transmitters, receivers, and a central processing unit, connected to various shipborne sensors and navigation systems. It transmits static information, dynamic information updated from ship sensors, and voyage-related information. AIS should not be solely relied upon for collision avoidance and does not replace radar target-tracking. It can be switched off under certain circumstances, but the master should report it to the competent authority and restart it when the source of danger has disappeared. Failure to operate AIS may lead to penalties by port state authorities and insurance underwriters may claim the vessel was unseaworthy in case of a collision without AIS. The Automatic Identification System (AIS) enhances safety and security by providing positional information and supplementing radar for traffic situation awareness. AIS is used in search and rescue operations, providing accurate information on the position of survival craft. It automates mandatory ship reporting to port authorities or vessel traffic service stations. Ships over 300 gross tonnage engaged in international voyages are required by SOLAS regulations to be fitted with Class A AIS equipment. Local regulations may be significantly more stringent. Yachts not subject to SOLAS requirements can carry Class B AIS devices. AIS enhances safety and security in various ways. By plotting positional information provided by nearby vessels, it supplements the picture produced by radar, so enhancing traffic situation awareness. Many of the problems common to radar, such as clutter, target swap as ships pass close by and target loss following a fast manoeuvre, do not affect AIS. AIS is also used in search and rescue operations. Search And Rescue operators, on land, at sea and in the air, get more accurate information, especially on the position of survival craft. Further, because AIS is used to exchange data ship-to-ship and with shore-based facilities, it is useful in automating mandatory ship reporting to port authorities or vessel traffic service (VTS) stations. LEGAL REQUIREMENT By virtue of Regulation 19 of Chapter V of the International Convention for the Safety of Life at Sea (SOLAS) 1974, as amended, all ships of 300 gross tonnage or more and engaged on international voyages must be fitted with Class A AIS equipment. In law, all yachts are ships – and it is irrelevant whether registered as a private or commercial vessel. Class B devices may be carried on yachts which are not subject to the SOLAS requirements. Certain national laws take this further. For example, US Federal law requires commercial vessels of just 65 feet and over to be fitted with a Class A AIS device. HOW IT WORKS The system is contained within a small box, containing one very high frequency (VHF) radio transmitter, various VHF receivers and a central processing unit. To this is attached antennae, and interfaces for heading, speed devices and other shipborne sensors, plus interfaces to radar, Automatic Radar Plotting Aids (ARPA), Electronic Chart System/Electronic Chart Display and Information System (ECS/ECDIS) and Integrated Navigation Systems (INS). There’s also a display and keyboard to input and retrieve data. The AIS can be connected either to an additional dedicated AIS display unit, possibly one with a large graphic display, or as an input to existing navigational system devices such as a radar display, ECS, ECDIS, or INS. INFORMATION SHARED The AIS information is transmitted continuously by a ship, and includes the following three types: Static information, which is entered into the AIS on installation and need only be changed if the ship changes its name, Maritime Mobile Service Identity (MMSI), location of the electronic position fixing system (EPFS) antenna, or undergoes a major conversion from one ship type to another; Dynamic information, which, apart from navigational status information, is automatically updated from the ship sensors connected to AIS; and Voyage-related information, some of which such as destination and estimated time of arrival (ETA) will need to be entered manually at the start of the voyage and kept up to date as necessary. INCOMPLETE PICTURE AIS doesn’t always give the complete picture, and – as with any navigational aid – should only be used by itself – especially for collision-avoidance. It doesn’t take the place of radar target-tracking. The officer of the watch (OOW) should always be aware that other ships, in particular smaller leisure craft, fishing boats and warships might not be fitted with AIS. The OOW should always be aware that AIS fitted on other ships as a mandatory carriage requirement might, under certain circumstances, be switched off on the master's professional judgement. SWITCHING OFF Details of yachts whose AIS is switched on maybe accessed by anyone, anywhere, simply by looking at MarineTraffic , VesselFinder or any of the other myriad of similar websites. Not all owners will be happy about this. According to the International Maritime Organisation’s Resolution A.1106(29) of 14 December 2015, entitled Revised Guidelines for The Onboard Operational Use of Shipborne Automatic Identification Systems (AIS): AIS should always be in operation when ships are underway or at anchor. If the master believes that the continual operation of AIS might compromise the safety or security of his/her ship or where security incidents are imminent, the AIS may be switched off. Unless it would further compromise the safety or security, if the ship is operating in a mandatory ship reporting system, the master should report this action and the reason for doing so to the competent authority. Actions of this nature should always be recorded in the ship's logbook together with the reason for doing so. The master should however restart the AIS as soon as the source of danger has disappeared. If the AIS is shut down, static data and voyage-related information remains stored. Restart is done by switching on the power to the AIS unit. Ship's own data will be transmitted after a two-minute initialization period. In ports AIS operation should be in accordance with port requirements. CONSEQUENCES Port state authorities will expect AIS to be operational, and may impose penalties for this not being the case – especially where there is a collision which AIS may have helped to avoid. Keep in mind, too, that non-compliance with more stringent local regulations will be punished . Even in international waters, where a yacht goes dark other than allowed by Resolution A.1106(29), while this may not be noticed by the flag state authority, if there’s a collision then insurance underwriters could claim that, without this important navigational aid working, the vessel was, in law, unseaworthy, and they are entitled to refuse payment. But going dark may not be intentional. Interference, weak radio signals and patchy satellite reception can all compromise AIS data exchange. Distinguishing intentional from unintentional signal drop-outs is difficult but not impossible. The frequency and regularity of drop-outs prior to a full blackout may be indicative. And the reason may not be malevolent. It is known, for example, that in certain parts of the world fishing vessels switch off AIS in order not to reveal productive catch areas to competitors. CONCLUSION Whether we, as owners, like it or not, AIS is governed by international convention – and it’s here to stay. If there are legitimate concerns then going dark may be permissible, but it’s as well to discuss this with the captain and insurance underwriter well in advance of a transit through waters in which it may be prudent or desirable. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about State Yachts Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about State Yachts

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Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 38 m Length Example Yachts Builder 2003 Build year 380 Gross tonnage Marshall Islands Registry Particulars Blueprint

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 67 m Length Italia srl Builder 2000 Build year 608 Gross tonnage United Kingdom Registry Particulars Simulator

Unavailable at present Latest Position Superyachts'R'Us Listing Email WhatsApp +44 7773 246 246 Central Agent 59 m Length DMS & Co Builder 2007 Build year 308 Gross tonnage Cayman Islands Registry Particulars Archetype

Unavailable at present Latest Position New Horizons Listing Email WhatsApp +44 7773 246 246 Central Agent 62 m Length Builder & Co Builder 2009 Build year 700 Gross tonnage Cayman Islands Registry Particulars Result

It’s important to understand the yacht insurance claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. Home Handbook Insuring / / Making A Claim 18 May 2023 Last revised minutes 4 Reading time It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. minutes 4 Reading time 18 May 2023 Last revised It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice. You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period. You should take reasonable steps to minimize the loss in the event of an incident. You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril. Both you and the underwriter have obligations of cooperation during the claims process. Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you. Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss. Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered. Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers. Independent advice may be necessary, as your interests anf those of the underwriter are not aligned. You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party. Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss. Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered. Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers. Independent advice may be necessary, as your interests anf those of the underwriter are not aligned. You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party. You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period. You should take reasonable steps to minimize the loss in the event of an incident. You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril. Both you and the underwriter have obligations of cooperation during the claims process. Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you. In order to receive payment or obtain the benefit(s) specified in the contract, the insured must inform the underwriter that it has experienced a loss that it believes is covered by the contract, and provide evidence demonstrating that their claim is indeed covered by the contract. A specific claims procedure may be set out in the contract. Written notice may be required – which may need to be in a particular form. Notice must be given within any specified time frame, or otherwise within a reasonable period. If the notice provision is considered a condition precedent, the underwriter may be able to deny liability. CAUSATION The insured is normally responsible for proving, on a balance of probabilities: The amount and scope of their loss; and That their loss was ‘proximately caused’ by a peril covered by the policy, unless the policy states that the loss may be ‘directly or indirectly’ caused by such a peril (or similar). Quite often, losses involve a chain of events, one or more of which are excluded from coverage. Generally, if there are two proximate causes of loss, one covered and one not covered, the underwriter will be on the hook for that loss. But if the insured cannot establish which peril (covered or not covered) caused the loss, or if none of the causes appear inherently likely, there will be no coverage. DUTY TO CO-OPERATE The insurance contract normally obligations of cooperation for both the insured and the underwriter when a claim is filed. In the case of a liability policy, the underwriter is generally required to negotiate with third party claimants in good faith, taking into account the insured's best interests – and, if necessary, assume responsibility for defending against a third party claim. The insured, meanwhile, must not admit liability without the underwriter's consent – and must obtain the underwriter's approval before settling a third party claim. PAYING CLAIMS Underwriters must pay valid claims within a ‘reasonable’ timeframe. If there is a delay or failure to pay, the insured can sue for damages for any additional losses suffered. It’s up to the insured to establish that the payment was only made after an unreasonable delay. Where the underwriter has reasonable grounds to dispute the claim, the manner in which it handles the claim can be a relevant factor in determining whether the implied term of timely payment was breached. SUBROGATION When an underwriter pays out money to an insured under an indemnity policy, such as Hull & Machinery , the rules of ‘subrogation’ allow the underwriter to recover all or part of that money from the third party who caused the loss. Subrogation means that the underwriter can step into the insured's shoes and pursue the third party itself, seeking to recover what it’s just paid out. The underwriter can not only claim the rights of the insured but also any benefits awarded by a court, such as interest on judgment debts and costs. The right of subrogation can be explicitly stated in the insurance contract, but it is also a pre-existing legal right. As set out above, it is essential for the insured not to jeopardize the underwriter's subrogation rights by settling or abandoning the claim against the third party, as this could lead to the underwriter seeking damages from the insured. FRAUDULENT CLAIMS Underwriters are always alive to the possibility of fraud. They’re seen it all before. Even where a settlement has been reached between underwriter and insured, this can be invalidated where it’s later shown that there was a fraudulent misrepresentation by the insured. Underwriters have the option to terminate the insurance contract from the date of the fraudulent act - without refunding any premiums. This means that the underwriter can refuse liability for genuine losses or claims made after the fraudulent act. Claims made before the fraudulent act will be unaffected. DOUBLE INSURANCE Recent years have seen a rise the use of support yachts, carrying large tenders and helicopters. If close attention isn’t paid to the policies of both yacht and tender (itself often a large motor yacht), it is possible to end up in a situation where the tender is ‘double insured’. In the event of a loss, the insured generally has the freedom to choose under which policy to claim payment. However, this is subject to the terms and conditions of each insurance contract, and some policies may prevent the making of a claim if there is other insurance covering the same risk. Double insurance does not provide additional protection to the insured. Instead, it may complicate the claims process and require coordination between multiple insurers. If an underwriter pays out a claim under an insurance policy, it may have the right to seek a contribution from another underwriter that provided coverage for the same loss. CONCLUSION Should any incident ever arise, potentially involving damage to the yacht or liability to a third party, sitting back is not an option. The insured is usually under an express obligation to notify the underwriter, and do everything reasonable to minimise the loss. The advice of the underwriter or broker, at the initial stages of an incident, is therefore vital, but the interests of underwriter and insured not being one and the same, and it will be prudent for you to take independent advice, right away. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Who's Who Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Who's Who

Converting working and naval ships in to yachts can save time and money, and the results can be spectacular. As each project is unique and challenging, it is crucial that terms are agreed with the yard undertaking the work which are clear, fair and practical. And each such agreement will be a one-off. Home Handbook Upcycling / / Conversion Agreements 10 August 2019 Last revised minutes 5 Reading time Converting working and naval ships into yachts can save time and money, and the results can be spectacular. Each project is unique and challenging. It is crucial that the terms agreed with the yard undertaking the work are clear, fair and practical. And each such agreement will be as unique as the project. minutes 5 Reading time 10 August 2019 Last revised Converting working and naval ships into yachts can save time and money, and the results can be spectacular. Each project is unique and challenging. It is crucial that the terms agreed with the yard undertaking the work are clear, fair and practical. And each such agreement will be as unique as the project. By choice, most shipping agreements, including yachting, are governed by English law regardless of the parties' location. Conversion agreements are subject to the Supply of Goods and Services Act 1982, which implies terms such as satisfactory quality and reasonable fitness for purpose. Yards must use reasonable care and skill in providing services, but it may not meet the high standards expected in yachts. Parties should seek legal advice to create fair and workable terms for conversion agreements. The price for conversion works is usually a fixed fee payable in installments, with adjustments for changes in specifications. The scope of works should be clearly defined, including repair and conversion components, with detailed technical specifications and objective performance standards. The agreement should address interface risks and allocate responsibility for inaccuracies in plans and specifications. A specific timeframe, known as the Redelivery Date, should be agreed upon, with provisions for liquidated damages and cancellation if the project overruns. Other key provisions include force majeure clauses, security arrangements, material ownership, insurance coverage, and warranty periods for remedying faults. The scope of works should be clearly defined, including repair and conversion components, with detailed technical specifications and objective performance standards. The agreement should address interface risks and allocate responsibility for inaccuracies in plans and specifications. A specific timeframe, known as the Redelivery Date, should be agreed upon, with provisions for liquidated damages and cancellation if the project overruns. Other key provisions include force majeure clauses, security arrangements, material ownership, insurance coverage, and warranty periods for remedying faults. By choice, most shipping agreements, including yachting, are governed by English law regardless of the parties' location. Conversion agreements are subject to the Supply of Goods and Services Act 1982, which implies terms such as satisfactory quality and reasonable fitness for purpose. Yards must use reasonable care and skill in providing services, but it may not meet the high standards expected in yachts. Parties should seek legal advice to create fair and workable terms for conversion agreements. The price for conversion works is usually a fixed fee payable in installments, with adjustments for changes in specifications. Most agreements in shipping (including yachting) are governed, by contract if not otherwise, by English law – no matter where in the world the parties are. Unlike shipbuilding agreements, which under English law are contracts for the sale and purchase of goods, conversion agreements are, broadly, contracts for the sale and purchase of labour combined with a supply of materials. As such, they are governed by the Supply of Goods and Services Act 1982 (as amended) and thereby subject to the same implied terms that apply to a contract for the sale of goods, namely that the materials must be of “ satisfactory quality ” and “ reasonably fit ” for any specific purpose expressly or implicitly disclosed to the yard. Further, in providing services, the yard must merely use “ reasonable care and skill ” – which the courts have determined means “ the ordinary skill of an ordinary competent [person] performing that particular art .” The result may be far from the highest standards of workmanship expected in the context of yachts. Far better, then, to agree to certain objective specifications being met. KEY PROVISIONS As with yacht building, there is no standard conversion agreement for parties to use and adapt. Elements of standard shipbuilding, and standard yacht refit, agreements could be used but the parties should take advice at the outset so that fair and workable terms are agreed – including some of the following key terms. PRICE Works are typically carried on for fixed fee, payable in instalments following the completion of particular stages of the conversion. Changes in specifications are reflected in adjustments agreed to the fee. Owners should insist on unit prices for labour and key materials being fixed at the outset, in order that the yard cannot raise these unduly in respect of additional works. SCOPE Setting out the scope of the works to be completed is key. There is no alternative to drafting a detailed technical specification – including plans, objective performance and/or finish standards to be achieved. It's helpful to divide the scope into two distinct components: A repair scope, setting out the elements needing repair following the thorough pre-purchase survey; and A conversion scope, setting out what needs to be added – or removed – in order for the vessel to become a yacht. The repair scope will need some inherent flexibility as the repairs themselves may reveal further issues which weren’t apparent during the survey, while the conversion scope can, and should, be very rigid. In addition, the conversion agreement will have to describe standards to be met by the yard in respect of the works. Vague standards often used in the context of trading vessels – such as “ first class ” shipbuilding standards – should be avoided, and objective standards used. Comparisons can be made to other existing vessels. But ideally, reference should be made to Classification Society Rules or other objective standards and measurements. There are few, if any, aspects which can’t be measured objectively – which is crucial especially where the yard isn’t used to the very high standards expected by yacht owners. Converting a vessel into a yacht may pose “interface risks”. These are the risks of a failure of materials and/or design where new materials and equipment are installed into an existing structure. So, if possible, the yard should bear such risks. Yards can require owners to warrant that plans and specifications of the vessel as it comes into the yard are accurate – meaning that additional expenses arising from any inaccuracies will be for the owner’s account. TIMEFRAME Parties will need to agree that the works should be finished by a specific date, typically referred to as the Redelivery Date – with fixed amounts of money (known by lawyers as “liquidated damages”) payable for each day that the project overruns. This avoids otherwise lengthy and expensive arguments about quantifying loss of use. And if the overrun goes beyond an agreed date, the owner must be allowed to cancel the agreement and take the vessel for completion elsewhere. Yards will need to prepare for the vessel’s arrival well ahead of time. In particular, other projects may need to be relocated within the yard to make space. Manpower will need to be arranged. Supplies will have been ordered and/or delivered, and third-party contractors may have been booked or will be on standby. The yard will therefore want to be notified of the actual arrival date – and be updated on her progress towards the yard – irrespective of the specific agreed starting date. The agreement will typically specify what will happen if the vessel is delivered late, with the yard usually being allowed to extend the contractual redelivery date by the same amount of time. Alternatively, the redelivery date may be replaced by an obligation on the yard’s part to finish the work and redeliver the vessel within a reasonable amount of time. FORCE MAJEURE Force majeure clauses automatically retard the redelivery date by an amount of time equivalent to that of the delaying event – where such event is due to certain circumstances beyond the yard’s control. As with the timeframe for the works, it is wise to have a long-stop date, beyond which the owner can cancel the agreement and take the vessel away elsewhere for completion. SECURITY It must be expressly agreed that the owner at all times retains title in the vessel, and all her machinery, equipment and items awaiting installation. Indeed, the owner may need to keep a skeleton crew on board, at least a build captain, for the duration of the works. The conversion agreement should also state that the owner acquires title to the works and equipment that are continuously added as the project progresses. As owner, should you wish to cancel the project prior to completion, your remedies are normally limited to removing your project for completion at a second yard, and suing the yard for any additional completion costs over and above the outstanding balance of the price agreed with the first yard. This will take time – especially where enforcement proceedings are required in the yard’s own jurisdiction – and some legal costs may not be recoverable. Far better, then, to obtain a performance guarantee or completion bond, giving security against major cost overruns when finishing the vessel elsewhere. MATERIALS With a steady throughflow of materials at the yard, there is scope for disagreement over who owns what at any given time. It is vital to establish this, as such materials must be insured, and protected from the yard’s creditors in the event of insolvency. The yard must ensure that such provisions in the conversion agreement do not contradict the terms under which such materials have been bought by the yard form third party suppliers. Where ownership has passed to the owner, the yard may want to have a contractual lien over such materials in case of a future non-payment by the owner. INSURANCE It’s vital that the owner and yard agree on how the risks of loss or damage to the vessel and materials will be covered. This includes owner-supplied items being stored ashore at the yard. Owners usually maintain their Hull & Machinery (first party) and Third Party Liability policies. And it’s vital not only to discuss the works in detail with insurance brokers , but to be as certain as possible that the underwriters themselves have been notified and agree to the scope of the works, which yard is to be used, etc. Particular attention must be paid to policy terms, especially any requiring the vessel to remain fully crewed at all times. It would be unwise to assume that underwriters will overlook such a requirement just because the vessel is subject to extensive works. WARRANTY A warranty period of twelve months is typical – during which the yard is contractually obliged to remedy faults arising – as is normally found in build agreements. However, the warranty will need to be carefully drafted to avoid disputes over whether is it the new or original parts or equipment which have failed, and if it’s the original elements whether this is due to the presence of the new elements. Yards will often only agree to limit its liability to the repair of its own defective materials or workmanship. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Conversion Projects Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Conversion Projects

The Owners Club's Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. Home About Rules / / Them's the Rules These Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. You’re bound by the Rules, so please take a moment to read them thoroughly. Please contact us if there’s anything you’d like clarified. 1. DEFINITIONS 1.1. In the Rules the following words have the following meanings: 1.1.2. IP Rights: any and all intellectual property rights, whether registered or unregistered, including but not limited to any patents, trademarks, domain names, URLs, design rights, copyright, software rights, database rights, rights in and to business names, product names and logos, processes, trade secrets, confidential information and any similar rights in any jurisdiction. 1.1.3. Link(s): link(s), provided in the Website, to third party resources and businesses; 1.1.4. Material: information, articles, guides, documents and clauses, provided by Us, whether via the Website or otherwise; 1.1.5. Membership: a paid subscription granting You access to certain Material; 1.1.6. Our: belonging to, or emanating from, Us; 1.1.7. Rules: this present document, known as the Rules; 1.1.8. Staff: any employee or representative of The Owners Club, including but not limited to the Our General Secretary; 1.1.9. We, Us: The Owners Club; 1.1.10. 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If You know or suspect that anyone other than You knows Your user identification code or password, You must notify Us promptly at gensec@theownersclub.org. 4. WEBSITE 4.1. You are responsible for making all arrangements necessary for You to have access to the Website. 4.2. You will not: 4.2.1. Use the Website for any purpose that is unlawful or prohibited by the Rules; 4.2.2. Use the Website in any manner which could damage, disable, overburden or impair the Website, or interfere with any other party’s use and enjoyment of the Website; or 4.2.3. Obtain or attempt to obtain any Material through any means not intentionally provided for on the Website. 4.3. We will use reasonable efforts to keep the Website available to You, but if necessary, We may suspend access to the Website, or close it indefinitely. We will not be liable if for any reason the Website is unavailable at any time or for any period. 4.4. The Website may include information and materials uploaded by other users of the Website, including to bulletin boards and chat rooms. Such information and materials have not been verified or approved by Us. The views expressed by other users of the Website do not represent Our views or values. 5. VIRUSES 5.1. We do not guarantee that the Website will be secure or free from bugs or viruses. 5.2. You are responsible for configuring Your information technology, computer programmes and platform to access the Website. You should use Your own virus protection software. 5.3. You must not: 5.3.1. Misuse the Website by introducing viruses, trojans, worms, logic bombs or other material that is malicious or technologically harmful. 5.3.2. Gain unauthorised access to the Website, the server on which the Website is stored or any server, computer or database connected to the Website. 5.3.3. Attack the Website via a denial-of-service attack or a distributed denial-of service attack. 6. UPLOADING 6.1. Any content You upload to the Website will be considered non-confidential and non-proprietary. You retain all of Your ownership rights in Your content, but You grant Us a licence to use, store and copy that content and to distribute and make it available to third parties. 6.2. We have the right to disclose Your identity to any third party who is claiming that any content posted or uploaded by You to the Website constitutes a violation of their intellectual property rights, or of their right to privacy. 6.3. You are solely responsible for securing and backing up Your content. 6.4. When You upload or post content to the Website, You grant Us the following rights to use that content: 6.4.1. A worldwide, non-exclusive, royalty-free, transferable licence to use, reproduce, distribute, prepare derivative works of, display, and perform that user-generated content in connection with the service provided by the Website and across different media, including to promote the site or the service, forever; and 6.4.2. A worldwide, non-exclusive, royalty-free, transferable licence for other users, partners or advertisers to use the content for their purposes, forever. 7. LINKS 7.1. Links are only provided for Your convenience and to help You identify and locate other resources that may be of interest to You. 7.2. We do not control, endorse or monitor the contents of any sites subject to a Link, including, without limitation, any further link contained in a site referenced by a Link, and any changes or updates to site referenced by a Link. 7.3. If You use any service provided on a site to which a Link refers: 7.3.1. We will not be responsible for any act or omission of any third party, including such third party’s access to or use of Your data; and 7.3.2. We do not warrant or support any product or service provided by the third party. 7.4. You may link to the Website home page, provided You do so in a way that is fair and legal and does not damage Our reputation or take advantage of it. 7.5. You must not establish a link in such a way as to suggest any form of association, approval or endorsement on Our part where none exists. 7.6. You must not establish a link to the Website in any website that is not owned by You. 7.7. Our site must not be framed on any other site, nor may You create a link to any part of the Website other than the home page. 7.8. We reserve the right to withdraw linking permission without notice. 8. MATERIAL 8.1. We do not guarantee that Material is correct, up-to-date, or suitable for particular persons or situations. 8.2. The Material may include inaccuracies or typographical errors. 8.3. From time to time, changes may be made to the Material, with or without You being notified. 8.4. Material must not be relied upon for legal, tax or financial decisions and You should consult an appropriate professional for specific advice tailored to Your situation. 8.5. Any templates within the Material are for use only as a starting point for the preparation of legal documents. They must be adapted by You to meet Your individual requirements. You should always take legal advice for Your specific situation. 8.6. We make no representations about the suitability, reliability, availability, timeliness, and accuracy of the Material. 8.7. All Material is provided ‘as is’ without warranty or condition of any kind including all implied warranties or conditions of satisfactoriness, fitness for a particular purpose, title and non-infringement. 8.8. You use the Material and the Website at Your own risk. 8.9. Neither Us nor any Staff will be liable to You or any other party for any losses or damages whatsoever or howsoever arising in connection with the Material or the Website, whether under contract or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence. 8.10. Our and the Staff’s liability to You for any loss or damage, including any losses, damages, costs or expenses whatsoever or howsoever arising in connection with the use of the Material or Website, whether under the Rules or other Rules or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence, is limited to damages of an amount equal to that received by Us from You for a year’s Membership. 9. INTELLECTUAL PROPERTY 9.1. We own and retain all rights, title, interest and IP Rights in relation to the Material. 9.2. Except in connection with the ownership or management of a yacht(s) which You own directly or indirectly or You manage, You must not reproduce, modify, translate or create derivative works of any Material. 9.3. Without exception, You may not sell, license, sublicense, rent, lease, distribute, copy, publicly display or publish any Material. 10. RELATIONSHIP 10.1. We only provide a platform for information and self-help. 10.2. Material is provided for Your private use, does not constitute legal and/or financial advice and should not be relied upon as such. 10.3. We are not a regulated or unregulated law firm. Communications between You and Us or Staff will not be protected by legal professional privilege and may be disclosable to third parties. 10.4. No communications between You and Us or Staff constitute legal advice or can be relied on as such. 10.5. Use by You of the Website or Material does not establish a duty of care (either in tort or in contract) between You and Us or Staff, or create a lawyer-client relationship between You and Us or Staff. 10.6. Names of third parties are published on the Website or in Material, or provided to Members, for information purposes only. We do not endorse or recommend any third party nor do We make any warranty as to the qualifications or competency of any third party. 10.7. You agree that no joint venture, partnership, employment, or agency relationship exists between You and Us as a result of the Rules or Your use of the Website or the Material. 11. SEVERANCE 11.1. If any part of the Rules is determined to be invalid or unenforceable under any applicable law, then the invalid or unenforceable provision will be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision will be deemed deleted. Following such modification or deletion, the remainder of the Rules will continue in effect. 12. REVISIONS 12.1. We may revise the Rules from time to time, and will always post the most current version on the Website. By continuing to use or access the Website or Material, You agree to be bound by the most recent revision of the Rules. 13. ENTIRE AGREEMENT 13.1. Unless otherwise specified, the Rules constitutes the entire Rules between You and Us with respect to the matters covered by the Rules, and extinguishes all previous Ruless, arrangements, representations and understandings between You and Us, whether written or oral, relating such matters. 14. ASSIGNMENT 14.1. You must not assign or otherwise transfer any right granted under the Rules. We can freely assign Our rights under the Rules. 15. WAIVER 15.1. A failure or delay by Us to exercise any right or remedy provided under the Rules or by law will not constitute a waiver of that or any other right or remedy, nor will it prevent or restrict any further exercise of that or any other right or remedy. 16. THIRD PARTIES 16.1. A person who is not a party to the Rules will not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Rules. 17. LAW & JURISDICTION 17.1. The Rules and any dispute or claim arising out of or in connection with it or its subject matter or formation will be governed by and construed in accordance with English law. 17.2. The courts of England and Wales will have non-exclusive jurisdiction to settle any dispute or claim arising out of or in connection with the Rules or its subject matter or formation. Contact Us These Rules from an agreement between the Club on the one hand, and all Associates, Members and Governors and anyone using this website on the other. They establish a fair and balanced framework which governs respective rights and responsibilities. You’re bound by the Rules, so please take a moment to read them thoroughly. Please contact us if there’s anything you’d like clarified. 1. DEFINITIONS 1.1. In the Rules the following words have the following meanings: 1.1.2. IP Rights: any and all intellectual property rights, whether registered or unregistered, including but not limited to any patents, trademarks, domain names, URLs, design rights, copyright, software rights, database rights, rights in and to business names, product names and logos, processes, trade secrets, confidential information and any similar rights in any jurisdiction. 1.1.3. Link(s): link(s), provided in the Website, to third party resources and businesses; 1.1.4. Material: information, articles, guides, documents and clauses, provided by Us, whether via the Website or otherwise; 1.1.5. Membership: a paid subscription granting You access to certain Material; 1.1.6. Our: belonging to, or emanating from, Us; 1.1.7. Rules: this present document, known as the Rules; 1.1.8. Staff: any employee or representative of The Owners Club, including but not limited to the Our General Secretary; 1.1.9. We, Us: The Owners Club; 1.1.10. Website: the website theownersclub.org, and all pages, parts and elements thereof; 1.1.11. You: You, whether Associate, Member or Governor of The Owners Club, or user of the Website, as the case may be, and Your employer or principal where you act on behalf of one; 1.1.12. Your: of or from You. 2. APPLICATION 2.1. For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, You agree to be bound by all of the Rules. 2.2. By using the Website, or viewing, downloading, using, sending, storing or receiving, any Material, You agree to be bound by all of the Rules, as well as Our privacy policy . 2.3. You are responsible for ensuring that all persons who access the Website through Your internet connection are aware of all of the Rules and that they comply with them. 3. MEMBERSHIP 3.1. Memberships are for one year, payable monthly. 3.2. A Membership entitles You, for one year, subject to monthly Membership fee instalments having been paid to date, to access those parts of the Website which We may from time to time restrict access to those only with Membership, and to access and download certain Material. 3.3. On each anniversary of You joining Us, We will automatically renew Membership unless You have notified Us that You want to cancel Membership by emailing us at gensec@theownersclub.org. 3.4. We may store and when possible update Your payment method on file. It is Your responsibility to maintain current credit card information on file with Us. 3.5. We reserve the right to change Membership fees from time to time. 3.6. From time to time, we may also offer different Membership terms and benefits. 3.7. Membership fees are non-refundable. 3.8. You authorise Us, to collect, without notice, Membership fees using any valid payment source We have on record for You. 3.9. If You fail to provide a payment to Us in full and on time, or We are unable to obtain payment using Your designated payment, We may deem such a failure as notice of cancellation and cancel Membership immediately. 3.10 We may cancel Membership at any time where We consider that You are in breach of any part of the Rules. 3.11. You are responsible for ensuring all contact details You provide Us with are correct and up to date. 3.12. If You choose, or You are provided with, a user identification code, password or any other piece of information as part of Our security procedures, You must treat such information as confidential, and You must not disclose it to any third party. 3.13. We have the right to disable any user identification code or password, whether chosen by You or allocated by Us, at any time, if in Our reasonable opinion You have failed to comply with any of the provisions of these terms of use. 3.14. If You know or suspect that anyone other than You knows Your user identification code or password, You must notify Us promptly at gensec@theownersclub.org. 4. WEBSITE 4.1. You are responsible for making all arrangements necessary for You to have access to the Website. 4.2. You will not: 4.2.1. Use the Website for any purpose that is unlawful or prohibited by the Rules; 4.2.2. Use the Website in any manner which could damage, disable, overburden or impair the Website, or interfere with any other party’s use and enjoyment of the Website; or 4.2.3. Obtain or attempt to obtain any Material through any means not intentionally provided for on the Website. 4.3. We will use reasonable efforts to keep the Website available to You, but if necessary, We may suspend access to the Website, or close it indefinitely. We will not be liable if for any reason the Website is unavailable at any time or for any period. 4.4. The Website may include information and materials uploaded by other users of the Website, including to bulletin boards and chat rooms. Such information and materials have not been verified or approved by Us. The views expressed by other users of the Website do not represent Our views or values. 5. VIRUSES 5.1. We do not guarantee that the Website will be secure or free from bugs or viruses. 5.2. You are responsible for configuring Your information technology, computer programmes and platform to access the Website. You should use Your own virus protection software. 5.3. You must not: 5.3.1. Misuse the Website by introducing viruses, trojans, worms, logic bombs or other material that is malicious or technologically harmful. 5.3.2. Gain unauthorised access to the Website, the server on which the Website is stored or any server, computer or database connected to the Website. 5.3.3. Attack the Website via a denial-of-service attack or a distributed denial-of service attack. 6. UPLOADING 6.1. Any content You upload to the Website will be considered non-confidential and non-proprietary. You retain all of Your ownership rights in Your content, but You grant Us a licence to use, store and copy that content and to distribute and make it available to third parties. 6.2. We have the right to disclose Your identity to any third party who is claiming that any content posted or uploaded by You to the Website constitutes a violation of their intellectual property rights, or of their right to privacy. 6.3. You are solely responsible for securing and backing up Your content. 6.4. When You upload or post content to the Website, You grant Us the following rights to use that content: 6.4.1. A worldwide, non-exclusive, royalty-free, transferable licence to use, reproduce, distribute, prepare derivative works of, display, and perform that user-generated content in connection with the service provided by the Website and across different media, including to promote the site or the service, forever; and 6.4.2. A worldwide, non-exclusive, royalty-free, transferable licence for other users, partners or advertisers to use the content for their purposes, forever. 7. LINKS 7.1. Links are only provided for Your convenience and to help You identify and locate other resources that may be of interest to You. 7.2. We do not control, endorse or monitor the contents of any sites subject to a Link, including, without limitation, any further link contained in a site referenced by a Link, and any changes or updates to site referenced by a Link. 7.3. If You use any service provided on a site to which a Link refers: 7.3.1. We will not be responsible for any act or omission of any third party, including such third party’s access to or use of Your data; and 7.3.2. We do not warrant or support any product or service provided by the third party. 7.4. You may link to the Website home page, provided You do so in a way that is fair and legal and does not damage Our reputation or take advantage of it. 7.5. You must not establish a link in such a way as to suggest any form of association, approval or endorsement on Our part where none exists. 7.6. You must not establish a link to the Website in any website that is not owned by You. 7.7. Our site must not be framed on any other site, nor may You create a link to any part of the Website other than the home page. 7.8. We reserve the right to withdraw linking permission without notice. 8. MATERIAL 8.1. We do not guarantee that Material is correct, up-to-date, or suitable for particular persons or situations. 8.2. The Material may include inaccuracies or typographical errors. 8.3. From time to time, changes may be made to the Material, with or without You being notified. 8.4. Material must not be relied upon for legal, tax or financial decisions and You should consult an appropriate professional for specific advice tailored to Your situation. 8.5. Any templates within the Material are for use only as a starting point for the preparation of legal documents. They must be adapted by You to meet Your individual requirements. You should always take legal advice for Your specific situation. 8.6. We make no representations about the suitability, reliability, availability, timeliness, and accuracy of the Material. 8.7. All Material is provided ‘as is’ without warranty or condition of any kind including all implied warranties or conditions of satisfactoriness, fitness for a particular purpose, title and non-infringement. 8.8. You use the Material and the Website at Your own risk. 8.9. Neither Us nor any Staff will be liable to You or any other party for any losses or damages whatsoever or howsoever arising in connection with the Material or the Website, whether under contract or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence. 8.10. Our and the Staff’s liability to You for any loss or damage, including any losses, damages, costs or expenses whatsoever or howsoever arising in connection with the use of the Material or Website, whether under the Rules or other Rules or as a result of any misrepresentation, misstatement or tortious act or omission, including negligence, is limited to damages of an amount equal to that received by Us from You for a year’s Membership. 9. INTELLECTUAL PROPERTY 9.1. We own and retain all rights, title, interest and IP Rights in relation to the Material. 9.2. Except in connection with the ownership or management of a yacht(s) which You own directly or indirectly or You manage, You must not reproduce, modify, translate or create derivative works of any Material. 9.3. Without exception, You may not sell, license, sublicense, rent, lease, distribute, copy, publicly display or publish any Material. 10. RELATIONSHIP 10.1. We only provide a platform for information and self-help. 10.2. Material is provided for Your private use, does not constitute legal and/or financial advice and should not be relied upon as such. 10.3. We are not a regulated or unregulated law firm. Communications between You and Us or Staff will not be protected by legal professional privilege and may be disclosable to third parties. 10.4. No communications between You and Us or Staff constitute legal advice or can be relied on as such. 10.5. Use by You of the Website or Material does not establish a duty of care (either in tort or in contract) between You and Us or Staff, or create a lawyer-client relationship between You and Us or Staff. 10.6. Names of third parties are published on the Website or in Material, or provided to Members, for information purposes only. We do not endorse or recommend any third party nor do We make any warranty as to the qualifications or competency of any third party. 10.7. You agree that no joint venture, partnership, employment, or agency relationship exists between You and Us as a result of the Rules or Your use of the Website or the Material. 11. SEVERANCE 11.1. If any part of the Rules is determined to be invalid or unenforceable under any applicable law, then the invalid or unenforceable provision will be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision will be deemed deleted. Following such modification or deletion, the remainder of the Rules will continue in effect. 12. REVISIONS 12.1. We may revise the Rules from time to time, and will always post the most current version on the Website. By continuing to use or access the Website or Material, You agree to be bound by the most recent revision of the Rules. 13. ENTIRE AGREEMENT 13.1. Unless otherwise specified, the Rules constitutes the entire Rules between You and Us with respect to the matters covered by the Rules, and extinguishes all previous Ruless, arrangements, representations and understandings between You and Us, whether written or oral, relating such matters. 14. ASSIGNMENT 14.1. You must not assign or otherwise transfer any right granted under the Rules. We can freely assign Our rights under the Rules. 15. WAIVER 15.1. A failure or delay by Us to exercise any right or remedy provided under the Rules or by law will not constitute a waiver of that or any other right or remedy, nor will it prevent or restrict any further exercise of that or any other right or remedy. 16. THIRD PARTIES 16.1. A person who is not a party to the Rules will not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Rules. 17. LAW & JURISDICTION 17.1. The Rules and any dispute or claim arising out of or in connection with it or its subject matter or formation will be governed by and construed in accordance with English law. 17.2. The courts of England and Wales will have non-exclusive jurisdiction to settle any dispute or claim arising out of or in connection with the Rules or its subject matter or formation. Contact Us

All large yachts are now subject to a considerable array of regulations, imposed both by the country whose flag they fly, and by the jurisdiction into which they sail. Thankfully, whilst complicated, most of these regulations have been agreed upon internationally. By contrast, there are no uniform principles governing yacht management. The intricate relationship between owner and manager must be set out in detail in the management agreement itself. Naturally, as with any business relationship, the key to longevity lies in establishing at the very beginning exactly who is responsible for what. Home Handbook Managing / / Engaging a Manager 18 May 2009 Last revised minutes 4 Reading time All large yachts are now subject to a considerable array of regulations, imposed both by the country whose flag they fly, and by the jurisdiction into which they sail. Thankfully, whilst complicated, most of these regulations have been agreed upon internationally. By contrast, there are no uniform principles governing yacht management. The intricate relationship between owner and manager must be set out in detail in the management agreement itself. minutes 4 Reading time 18 May 2009 Last revised All large yachts are now subject to a considerable array of regulations, imposed both by the country whose flag they fly, and by the jurisdiction into which they sail. Thankfully, whilst complicated, most of these regulations have been agreed upon internationally. By contrast, there are no uniform principles governing yacht management. The intricate relationship between owner and manager must be set out in detail in the management agreement itself. Good quality yacht management is vital, as owners can face fines, vessel detention, and criminal liability for breaching safety regulations. Sanctions can bypass corporate and trustee owning structures by being enforceable against the yacht itself. Managers should ideally agree to indemnify owners against third-party claims arising from their actions or inaction. Owners should ensure that managers have sufficient indemnity insurance to cover potential large claims. The Convention on Limitation of Liability for Maritime Claims may limit managers' financial liability in some cases. Managers may seek protection by being named as joint-assured or co-assured on the owner's insurance policy. Some managers may handle insurance, claims, and disputes for owners, requiring a detailed understanding of insurance law. Owners should ensure that managers act as "principals" rather than "agents" in contractual matters. Managers may outsource certain tasks, and the management contract should specify the tasks they have authority to sub-contract. The International Safety Management Code applies to commercially-operated yachts over 500 GT, and managers should assume responsibility under it. Managers may seek protection by being named as joint-assured or co-assured on the owner's insurance policy. Some managers may handle insurance, claims, and disputes for owners, requiring a detailed understanding of insurance law. Owners should ensure that managers act as "principals" rather than "agents" in contractual matters. Managers may outsource certain tasks, and the management contract should specify the tasks they have authority to sub-contract. The International Safety Management Code applies to commercially-operated yachts over 500 GT, and managers should assume responsibility under it. Good quality yacht management is vital, as owners can face fines, vessel detention, and criminal liability for breaching safety regulations. Sanctions can bypass corporate and trustee owning structures by being enforceable against the yacht itself. Managers should ideally agree to indemnify owners against third-party claims arising from their actions or inaction. Owners should ensure that managers have sufficient indemnity insurance to cover potential large claims. The Convention on Limitation of Liability for Maritime Claims may limit managers' financial liability in some cases. Naturally, as with any business relationship, the key to longevity lies in establishing at the very beginning exactly who is responsible for what. Yacht management agreements vary hugely from the very simple to the overly complex. Even those offered by the most prestigious brokerage houses can omit essential elements. The following is an overview of what a meaningful agreement should contain. INDEMNITY As well as having to pay fines for breaching regulations, or even having his yacht detained, an owner can be subject to criminal liability where safety regulations have been breached. By being enforceable against the yacht itself, sanctions can also sidestep corporate and trustee owning structures. As a starting point, therefore, the manager should ideally agree to indemnify the owner faced with third party claims which arose because of the manager’s actions or inaction. But there is no point handing some of the liability over to a manager, if that manager is an uninsured company without the assets to meet a large claim. In most cases, even if the individuals behind the company have been negligent, and own sufficient assets to make them worth suing, it is still only the management company which would be liable. Owners should therefore make sure that their manager carries sufficient indemnity insurance. LIMITATION Although managers may be able to limit their ultimate financial liability under the internationally-recognised Convention on Limitation of Liability for Maritime Claims 1976, there will still be many situations in which this will be unlimited. Understandably, therefore, a manager may wish to expressly cap liability to an owner in the contract itself. Although it is clearly in the interests of the owner to resist this, such a cap may be necessary to enable a manager to obtain indemnity insurance. INSURANCE Managers may seek protection from third party claims by being named as ‘joint-assured’ or ‘co-assured’ on an owner’s insurance policy, typically without significantly increasing the total premium. Whilst the manager’s premium savings can be passed onto the owner, as ‘joint assured’ the manager risks having to pay the owner’s unpaid premiums. As ‘co-assured’ the manager does not usually face this risk. This arrangement does not provide protection against claims by the owner. CLAIMS HANDLING Some managers may also like to add value by arranging insurance and handling the owner’s subsequent claims and disputes. This is not a matter of form-filling. It requires a detailed understanding of insurance law and practice. The owner should decide for himself whether the manager has the appropriately qualified staff. PRINCIPAL As far as possible, the owner should ensure that the manager agrees to deliver particular services as a fait accompli, rather than just provide advice and administrative support. This entails the manager contracting in its own name where possible, rather than the owner’s. To use the legal jargon, the manager should be obliged to act as ‘principal’ rather than ‘agent’ of the owner. Contractual disputes with third parties will not then have to involve the owner, subject to any liens which may have arisen on the yacht as a result of services rendered. OUTSOURCING After an owner has taken great care to appoint a reputable manager, there will be nothing to stop the manager then outsourcing responsibilities to anyone else. Of course, this may not be quite what the owner had in mind. The management contract should therefore state exactly what broad tasks the manager has the authority to sub-contract. Technical matters, such as the maintenance of specialist equipment, may be beyond even the crew’s or manager’s capabilities. Specifications and regulations do change over time, and the necessity for occasional expert third party advice should not be a cause for suspicion or alarm. ISM CODE The International Safety Management Code (more commonly, the ‘ISM Code’) applies to commercially-operated yachts over 500 GT. Although the ISM Code itself has no significant bearing on the balance of liabilities between owner and manager, it is vital to ensure that the manager assumes responsibility under it. This can be achieved by ensuring that the ‘Company’, as defined in the ISM Code, is said to be the manager in the relevant documentation. The ISM Code requires the Company to have such adequate resources immediately available, meaning that outside advice must be expressly obtainable without further permission where circumstances dictate. Further, a bespoke Safety Management System must have been developed, implemented and maintained. This is a lengthy and complex task. There is also a specific requirement under the ISM Code for a shore-based Designated Person to be appointed, whose role in an emergency is pivotal. It is not enough to leave safety management to the captain alone. Non-adherence may lead to the detention of the yacht by port authorities, and insurance being invalidated. CREW Crew members may prefer to be the employees or contractors of the manager rather than the owner, especially as they may have known the individuals at the management company for many years. Should the worst come to the worst, it is also best that the manager is responsible for terminating a contract of employment, or reassigning a crewmember, to prevent relations between the owner and the remaining crew being soured. Allowing a manager to employ the crew also allows for some comeback against an insured management company in the event of crew incompetence, rather than the individual crewmember who may not have much in the way of property or savings. Where the owner chooses to employ the crew, it must still be clearly stated in the contract of employment that the crewmember will obey all the manager’s reasonable orders, especially in connection with the operation of any compulsory Safety Management System in operation. The manager must agree to ensure that the crew meets the standards of training and medical fitness, as required by the yacht’s flag state, at all times. Manning levels must also be satisfactory. Ensuring that the crewmembers have a sufficient command of a common language is not just matter of practicality, but an ISM Code requirement. It should also be incumbent upon managers to ensure that drug and alcohol laws and polices are strictly adhered to. ACCOUNTS Managers must agree to allow their accounts relating to the particular yacht to be available for inspection by the owner. In some jurisdictions, such accounts may be seen as the property of the manager alone, encouraging litigation and forced disclosure in the event of a dispute. Indeed, the manager must agree to hand over all vital documents relating to the yacht when requested, so that these are not ‘ransomed’ in the event of a dispute. More generally, the obvious should never be overlooked. For example, it must be stated that the management agreement (and therefore fee payments) will end if the yacht is lost. Further, BALANCE Striking the right balance is never easy. Compromises are inevitable. In commercial ship management agreements, by comparison, managers typically agree to use their ‘best endeavours’ to provide management services to the owners in accordance with ‘sound management practice’ and to protect and promote the interests of the owners. This is a fair and time-honoured balance. ‘Best endeavours’ means nothing less than the best, although ‘sound management practice’ is said to envisage competing priorities for a manager handling more than one vessel, which may not be acceptable to a demanding yacht owner. CONCLUSION Most agreements are entered into in a spirit of genuine goodwill, at a time when a lawsuit couldn’t be further from the minds of the parties. This is especially so with yachts, which promise a temporary escape from the litigious business world. Yet it still requires attention to detail at the outset to ensure that this promise is fulfilled. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Limiting Liability Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Limiting Liability

Unavailable at present Latest Position Yachts & More Listing Email WhatsApp +44 7773 246 246 Central Agent 47 m Length DMS & Co Builder 2016 Build year 452 Gross tonnage Marshall Islands Registry Particulars Lesson

If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. Home Handbook White Papers / / Blue is the New Green Whether or not you are persuaded about the underlying causes of global temperature rises, a critical mass of democratically-elected leaders are now convinced. Protests no longer take the form of marches and placard-waving. Increasingly, activists are taking direct action. Their websites and image-curation are becoming more slick. They have an increasing grasp of public relations and social media. For now, the campaigns are self-defeating. Their disruption alienates the wider public as traffic jams build, meetings are missed and emergency services disrupted. But, increasingly, protests have started to target symbols of conspicuous consumption, such a ‘luxury’ car dealerships. And why stop at cars? Why not business jets? Why not… ‘superyachts’? At least the general public won’t be inconvenienced. And the messages can be conflated with broader political messages as well. It's beginning to happen. The blockading of general aviation terminals is becoming more commonplace. Then there was a protest at Port Vauban, Antibes, followed by one at the Superyacht Forum in Amsterdam. Massive nearby commercial airports and ports are being ignored. And while the underlying data used in academic papers owes is, to say the least, paper-thin - see our white paper Damn Lies & Statistics - the trajectory of this movement is clear. SHORT-SIGHTEDNESS In the case of yachts, this fury is short-sighted. The more time one spends afloat, the more one is aware of the amount of pollution entering the sea and the food chain – especially in the form of plastics. Not only do they bear witness first-hand, the owners of large yachts are better placed than anyone to actually address the issues beyond making changes to their own habits. They are likely to own companies which can enforce rapid behavioural change on a massive scale. Or they may own media outlets which band the drum of change. Or they may know politicians who can enact change. It is impossible not to be moved by the beauty of the marine environment, or outraged at seeing it compromised. Owners are in the position to act across a spectrum of environmental issues. NIGHTMARE SCENARIO Far-fetched today, but picture a possible scene a few years from now. A resolute Greta Thunberg, her outlook still binary and adolescent, implores her social media followers to flock to the Mediterranean – to picket ports en masse. WhatsApp groups coordinate the protests. Social media livestreams go viral. High-profile celebrity charterers cancel their summer bookings for fear of being “cancelled” themselves. The French, Italian and Spanish governments cave in to a vocal minority and introduce punitive taxes in berths and bunkers. Youngsters are discouraged from training for a role working on yachts. The costs of ownership spiral, and the assets themselves devalue alarmingly. Even financiers and insurers begin to withdraw from the market for fear of a popular backlash and a corresponding commercial impact on other business lines. TESTBEDS FOR CHANGE We have seen various new low and no-carbon yacht propulsion technologies being proposed in recent years. The 3D renderings are impressive and the press releases compelling. But this is cutting little ice with the campaigners, who just claim that this is “greenwashing”. It is incumbent on everyone within the yachting industry to urge environmental campaigners to see the broader picture of maritime transport. According to the Organisation for Economic Co-operation and Development (OECD), around 90% of traded goods are carried by sea . Yet shipping is a naturally conservative business: investments are large and the returns uncertain. The last thing trading ship owners want to do is to dabble in unproven green technology – unless obliged to by law. Any why are lawmakers going to change the law if the no technology hasn’t been proven on a smaller scale? PAST MISTAKES The yachting industry has, it must be said, singularly failed to portray the correct message to the wider society. We have worked project to project, season to season, sale to sale. Most information put out has been about yachts’ specification and features. It’s been about the wow factor – about one-upmanship, where bigger is better and consumption is king. Aside from all exciting new research going on, there are dozens of environmental and other philanthropic initiatives quietly being undertaken by owners. Yet the wider public knows nothing about this. SHORT-TERM STRATEGY Doing nothing is not an option. Carbon neutral schemes for yachts have been around since the mid 2000s. Taking up such schemes is – quite literally – the least we, as owners, can do. We also need to engage with the general media, and help them understand that, in terms of technological development, yachting is to shipping what haute couture is to everyday fashion. The wonderful work of organisations such as SeaKeepers needs to be known about far more widely – and more owners need to involve themselves. Ports and marinas also need to take advice and make preparations to ensure that, in so far as the law allows, any protests which prevent crew or suppliers going about their daily business are shut down as rapidly as possible before these patterns of behaviour become entrenched and emulated. LONG-TERM STRATEGY In the long term, those making bold claims with regard to truly viable carbon-neutral power sources need to make the investment necessary to bring these project to fruition. Aside from the tech, the refuelling infrastructure and regulatory framework must be developed. And insurance underwriters need to be onboard. For too long, owners have failed to act coherently in the face of a growing threat to our cherished liberties and way of life. It’s time to make blue the new green. Return to top Thank you to all our Members who provided perspectives for this white paper. If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. 21 November 2022 Last revised minutes 4 Reading time minutes 4 Reading time 21 November 2022 Last revised If, as owners, we are to continue to enjoy the freedoms and privileges we currently enjoy – without interruption or stigmatisation – then we need to engage with those who are beginning to target our assets and way of life. Quietly, we need to educate the press and policymakers about yachting’s current and potential positive impact on the environment generally in shipping in particular. Recent years have seen an increase in protests and direct action by climate activists. They are targeting symbols of conspicuous consumption, including luxury car dealerships and large yachts. However, this fury against yachts is short-sighted. We, the owners, have a unique position to address environmental issues. We can help to enforce behavioral change through our companies and media outlets. The yachting industry needs to portray a different message to the wider society, highlighting our environmental and philanthropic initiatives. Taking up carbon neutral schemes is the least we can do. We should engage with the media to showcase technological developments and initiatives like SeaKeepers. Ports and marinas should prepare to handle protests swiftly to prevent disruption. In the long term, investment is needed in viable carbon-neutral power sources, refueling infrastructure, and regulatory frameworks. We must act coherently to protect our liberties and way of life. You can also read about Damn Lies & Statistics Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Damn Lies & Statistics Questions or comments? Please contact us

Unavailable at present Latest Position Rapid Brokers Listing Email WhatsApp +44 7773 246 246 Central Agent 22 m Length Placeholder Yards Builder 2005 Build year 56 Gross tonnage British Virgin Islands Registry Particulars Innovation

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 37 m Length Finest Craft Builder 2011 Build year 156 Gross tonnage Cayman Islands Registry Particulars Type

Unavailable at present Latest Position Wright A Way & Co Listing Email WhatsApp Central Agent 36 m Length Thompson Yachts Builder 2014 Build year 400 Gross tonnage Cayman Islands Registry Particulars Case Study

When yacht insurance underwriters ask questions, you, the owner, must respond to as accurately as possible. But there is also a positive duty on insured to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain. Home Handbook Insuring / / Providing Information 15 April 2023 Last revised minutes 4 Reading time When underwriters ask questions, you, the owner, must respond as accurately as possible. But there is also a positive duty on you, as insured, to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain. minutes 4 Reading time 15 April 2023 Last revised When underwriters ask questions, you, the owner, must respond as accurately as possible. But there is also a positive duty on you, as insured, to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain. Insurance contracts are based on the principle of the utmost good faith, requiring parties to provide honest and complete information. Underwriters may not have detailed knowledge of each specific risk, so insured individuals have a duty to disclose material information. A fair presentation of the risk includes disclosing all material circumstances or providing sufficient information to prompt further inquiries by a prudent insurer. Disclosure should be clear and accessible to the insurer, and statements must be made in good faith. Material circumstances are those that would influence a prudent insurer's judgment in determining whether to accept the risk and on what terms. The insured's knowledge refers to the company's senior management, including captains, departmental heads, and insurance brokers. Claims history, crewing arrangements, and yacht valuations are among the practical matters that need to be disclosed. Yacht valuations can be contentious, and a specific reference to the agreed value should be included in policies. Breaching the duty of fair presentation can lead to remedies for the underwriter if it directly influenced their decision to enter the contract. Consequences for breaching the duty of fair presentation vary based on intent, ranging from no liability with no premium return to reduced claim payment or returned premiums. The insured's knowledge refers to the company's senior management, including captains, departmental heads, and insurance brokers. Claims history, crewing arrangements, and yacht valuations are among the practical matters that need to be disclosed. Yacht valuations can be contentious, and a specific reference to the agreed value should be included in policies. Breaching the duty of fair presentation can lead to remedies for the underwriter if it directly influenced their decision to enter the contract. Consequences for breaching the duty of fair presentation vary based on intent, ranging from no liability with no premium return to reduced claim payment or returned premiums. Insurance contracts are based on the principle of the utmost good faith, requiring parties to provide honest and complete information. Underwriters may not have detailed knowledge of each specific risk, so insured individuals have a duty to disclose material information. A fair presentation of the risk includes disclosing all material circumstances or providing sufficient information to prompt further inquiries by a prudent insurer. Disclosure should be clear and accessible to the insurer, and statements must be made in good faith. Material circumstances are those that would influence a prudent insurer's judgment in determining whether to accept the risk and on what terms. No two insurance risks will ever be identical. Underwriters will know about yachts in general, but they cannot be expected to know the ins and outs of your particular vessel, which will be, to a greater or lesser extent, unique, and crewed, managed and operated in a distinctive way. So while most contracts work on the basis of buyer beware – with parties doing their own homework – insurance works on the opposite basis: there’s a positive duty to provide honest information. They are said to be contracts of ‘utmost good faith’. This is manifested in the insurer, in the case of yachts owned by companies (which cannot, by definition, be considered as consumers) being under a duty to make a ‘fair presentation’ of the risk. This duty obliges the insured to disclose material circumstances that it knows (or ought to know) or put a prudent underwriter on notice that it needs to make further enquiries. FAIR PRESENTATION A fair presentation is one where the insured discloses every ‘material circumstance’ which the insured knows or ought to know, or, failing that, gives sufficient information to put a (hypothetical) ‘prudent insurer’ on notice that it needs to make further enquiries for the purpose of revealing those material circumstances. Disclosure must be made in a manner which would be reasonably clear and accessible to that hypothetical prudent insurer. Facts must ‘substantially correct’ and statements of expectation or belief must be made in good faith. A circumstance will be material if it ‘would influence the judgement of a prudent insurer in determining whether to take the risk and, if so, on what terms’. This includes special or unusual facts relating to the risk, particular concerns which led the insured to look for cover, and anything which those specialising in yachting-related risks would generally understand as being something that should be included in a fair presentation of risk. Note that we are concerned with the judgement of a prudent insurer: the opinions of the actual underwriter concerned are irrelevant. The insured’s knowledge, in the case of an owning company, is taken to mean the company’s ‘senior management’, which will include captains and departmental heads, plus those making decisions about insurance (including insurance brokers or other intermediaries acting on the owner’s behalf – whether regulated or not – such as a yacht broker). A ‘reasonable search’ for relevant information must be made – including with third parties. This might include, for example, making inquires with classification societies. PRACTICAL MATTERS The claims history of both the legal and beneficial owner will almost certainly be material – even if the proposal form simply asks in respect of the ‘insured’s claims record. If you, as beneficial owner, have criminal convictions in respect of dishonesty then this should be disclosed. While it may be obvious whether or not a yacht requires crew, the nature and extent of crewing arrangements will need to be provided in detail. The captain’s CV/résumé may be requested. You should ask a third party services provider to verify the crewmember’s qualifications and stated experience. If a survey is needed, check whether that surveyor must have been approved by the underwriter and/or hold certain qualifications. VALUATIONS Yacht valuations can, and have, been a source of contention over the years. Policies can be unvalued but given the obvious room for disagreement, nearly all on the basis of a valuation agreed at the outset. There should be a specific reference to the value being agreed – not merely to a ‘sum insured’ or similar. Unless fraud can be proved, the fixed value is usually conclusive. Problems arise where owners pay over the odds at the outset, or where renewals haven’t taken account of depreciation, so that the resulting over-valuation risks being deemed to be a material misrepresentation. This will be the conclusion where the owner has no genuine belief that the value given was a true valuation. It would be wise to obtain an independent valuation, but – being subjective – this shouldn’t be treated as conclusive. CONSEQUENCES If the insured breaches the duty of fair presentation, the underwriter is entitled to a remedy only if it can demonstrate that the breach directly influenced its decision to enter into the insurance contract, or at all. To prove this influence, the underwriter must establish that, without the breach, it would not have entered into the contract or, at least, would have done so on different terms, such as a higher premium. If the breach of the duty of fair presentation was made deliberately or recklessly, the underwriter can walk away from liability entirely – not even pausing to return premiums paid. If the breach was neither deliberate nor reckless, and the underwriter would not have provided cover on any terms, then payment of claims can be refused but premiums paid must be returned. If the underwriter would have just charged a higher premium, then the amount payable on a claim may be reduced proportionately. CONSUMERS In the unlikely ( and unwise ) event that own your yacht personally, and it’s not chartered out or otherwise used for business purposes, then your position, as a consumer, is different to that set out above. It’s then up to underwriters to ask the questions and determine the risk. The insured simply has to exercise reasonable care not to make a misrepresentation when answering questions. There’s no obligation to volunteer information. TIPS & TRICKS Be sure that the insurance broker earns its commission and tells you everything you need to disclose. It is quite possible that your broker advises you poorly, and, as a result, you fail in your duty of fair presentation. In which case, the broker will be liable. Consider where the broker is based and how it is regulated. Obtaining the requisite information takes time, so plan ahead – including when it’s time to renew. Do not assume that the underwriter already has sufficient information: disclose all material information, even if it’s obvious. Be sure to respond fully to all questions raised. Avoid data dumping, and make sure that information is indexed, categorised or otherwise easily navigable. Keep an audit trail of the searches carried out and the enquiries made, to prove that you have conducted a reasonable search. Return to top Thank you to all our Members who contributed to this article. Unless otherwise stated, this article broadly describes, by way of illustration, the situation in the United Kingdom waters in respect of United Kingdom-registered vessels. This piece does not provide or replace legal advice. Questions or comments? Please contact us You can also read about Staying Covered Join the discussion over in the Club's group Questions or comments? Please contact us You can also read about Staying Covered

Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. Home Handbook White Papers / / Cut to the Chase A RISKY BUSINESS With assets of this size and nature, people buy from people – not companies. Yachts may be advertised by brokerages, but they aren’t sold by them. It’s the individual brokers who do the selling. They often work extremely hard – especially during shows – with an uncertain outcome. They’re patient and diligent, and their commissions are well-earned. They perform a crucial role . THE CENTRAL AGENCY When instructing your broker to sell your yacht, a Central Agency (CA) agreement is imperative. The agreement makes it clear that your broker is in charge of the sale, and will be rewarded no matter who actually sells the vessel (including you – so make sure you have explored your own network first). Your CA can provide a valuation, a marketing plan and produce marketing materials (at their or your expense depending on what you negotiate). At a stroke, scope for argument as to which party was the effective cause of the sale – and so owed commission – is eliminated. Understandably, without a CA agreement in place, most brokers are unlikely to go all-in to prepare the yacht for sale and make every effort to sell: it’s just too easy for third parties to argue that the broker claiming commission wasn’t in fact the (or an) effective cause. Standard form agreements are available, but many of these are poorly drafted, so contact us to have this checked and amended. A pre-determined sales price is often the default setting, but some brokers may prefer a net-to-seller figure, which they can adjust up or down as they see fit. MULTIPLE LISTING SERVICES A Multiple Listing Service (MLS) is a database used by brokers (whether CAs or not) to share their listings, in order to reach a wider audience. MLSs usually have their own public online marketplace, and may supply listings automatically to subscribing brokers’ websites, through an application programming interface (API). The use of MLSs (and certain brokers’ associations require their use) can lead to very broad market penetration for the seller, potentially leading to a quicker sale, but there are drawbacks. Use Google Lens and you’ll find identical images posted by numerous brokers. It's not clear which broker has a direct line of communication with the seller. Where a yacht is listed on a marketplace website (and it’s these which tend to come up first when searching online) it is easy to assume – wrongly – that the broker named in the listing is the CA. The use of API-powered automatic listings may mean that the listing broker knows nothing about the vessel, and may be unaware of the listing itself until an inquiry comes in. The CA’s own website listing, meanwhile, will be languishing well behind on Google simply because the CA’s website’s SEO can’t compete with that of the MLS. The potential buyer is none the wiser. Also, by having the vessel listed everywhere, it's possible that the seller can look somewhat desperate. Nevertheless, once a second so-called ‘buyer-broker’ is involved (i.e. a broker acting for the buyer) they will be entitled to a share (a half or thereabouts) of the commission. Their brokers’ association rules may require it. With chains of communication also stretched, negotiations can become protracted while passions cool and interest fades. CLASS ACTIONS Various class actions have been brought in respect of MLSs. In Ya Mon Expeditions LLC v International Yacht Brokers Association Inc et al , the plaintiff brought an action, in February 2024, against 16 defendants, claiming, in essence, that (in violation of US federal antitrust law) brokers’ associations are requiring members (i) to list all their vessels on an MLS (which may also be owned by that association), and (ii) to follow non-negotiable commission-splitting rules. Ya Mon claimed that “ most buyer-brokers will not show vessels to their clients if a seller is offering a lower buyer-broker commission, or will show vessels with higher commission offers first ” meaning that “ sellers are incentivized when making the required non-negotiable offer to procure the buyer-brokers’ cooperation by offering a high commission ”. Ya Mon also claimed that the defendants’ business practices are anti-competitive, with buyer-broker commissions being about 4% to 5% which is artificially elevated beyond where they would be in a free market. In Defosey v Boats Group LLC et al , a plaintiff brought another class action, in May 2024, against some 18 defendants, making broadly the same claims as Ya Mon , arguing that broker associations’ rules “ force sellers to pay a portion of the commission … to the buyer-broker, someone who provided no service to the sellers ” and, as the commission paid to the buyer-broker is not subject to negotiation between the buyer and his/her broker, such rules prevent competition among buyer-brokers based on their commission rates. A similar case was pleaded in Magna Charter LLC v Boats Group LLC et al . At the time of writing (October 2024) Ya Mon is ongoing, while Defosey and Magna have been terminated, presumably because these have been settled or consolidated with other class actions. MLSs made a lot of sense where potential buyers would drop by their local harbourside brokerage and might have been interested in a vessel details of which weren’t displayed in the window. But they make less sense in a world where most buyers look online, and could reach out directly to the CA – if only they understood the pitfalls of not doing so, and knew where to look. FAKE LISTINGS Incredibly, some brokers will post on their own website, or an MLS, without even having been appointed as CA. Maybe they've had just a conversation with a friendly captain. Indeed, with so much at stake, truly unscrupulous brokers might list your yacht for sale without your broker’s permission – copying photos and plans regardless of copyright infringement. But a sales lead is a sales lead (assuming he or she has been qualified as being a bone fide UHNWI which doesn’t always happen) and such unethical business practices can be overlooked. If you see your yacht advertised with other brokerages, check to see that your CA agreement has permitted this. Unauthorised listings must be removed as soon as possible – before the content is indexed by search engines. PROPOSED SOLUTION In some cases, a commission of 10% can be perfectly reasonable – especially given the sheer amount of time, effort, outgoings and risk involved. The signing of CAs are widely (and proudly) publicised within the large yacht sector, with press releases circulated on LinkedIn and some specialist media outlets. Ideally, buyers would check through these to make sure that they’re dealing with the CA, and negotiate directly with them. Yet, seemingly, they don’t. Many buyers won’t even know what a CA is or does. They will see a yacht advertised and (not unreasonably) make inquires. As soon as they have done so, the advertiser will often have become what the law calls an “effective cause” and will be entitled to some of the commission – over and above any broker association rules requiring payment. The additional step added by the use of buyer-brokers causes delays and miscommunications – especially where there’s a mix of time zones and first languages. As well as educating would-be buyers as to the role and importance of the CA, the solution is surely to list as many CAs as possible, in one place. The CA agreements will need to be checked, prior to listing, in confidence, by a lawyer (the key information contained in the agreements (i.e. the name of the vessel and its registered owner) is freely available to the public anyway. If a potential buyer wants as second opinion on the asking price, an independent valuation can be obtained. Lawyers and surveyors are there to advise the buyer on legal and technical aspects. Return to top Thank you to all our Members who provided perspectives for this white paper. Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. 16 October 2024 Last revised minutes 5 Reading time minutes 5 Reading time 16 October 2024 Last revised Selling a yacht should be relatively easy. Assuming the price is realistic, there'll be a buyer out there. Connecting with that buyer, however, can be unnecessarily complex. Current business models mean that otherwise viable deals can sometimes fall though. This white paper considers the pitfalls in greater detail, and proposes a solution. Brokers perform a vital role i n yacht sales, with Central Agency (CA) agreements protecting commissions and streamlining the process. By contrast, while supposedly broadening market reach, Multiple Listing Services (MLSs) can lead to confusion and delays. Class actions have been brought against MLSs in the United States. The proposed solution is to independently authenticate and centralise CA listings, maximising efficiency and transparency. You can also read about Deposits Reimagined Questions or comments? Please contact us Join the discussion over in the Club's group You can also read about Deposits Reimagined Questions or comments? Please contact us

The Owners Club is the worldwide association for the owners of large, permanently-crewed yachts - often known as superyachts. We're pooling our knowledge and resources, to help each other and those looking to build or buy a superyacht. Home Welcome To The Club THE CONFLUENCE OF AFFLUENCE & INFLUENCE How it Started We are the worldwide association for the owners of large, permanently-crewed yachts often known as superyachts. The Club is fearlessly independent and has no connections with particular yacht builders, brokers, managers or suppliers. By pooling expertise and experience, we’re making ownership easier, more transparent and better value. The Club's a wonderful idea and long overdue. I've had teeth for years but that doesn't make me a dentist. I've had yachts for years, but I'm still glad of the opportunity to share knowledge and best practice, and help make ownership less opaque. OWNER, 42M MY GAINING KNOWLEDGE SHARING PASSION Secretariat As owners, we’re asking the same questions, to the same advisers, again and again. Or we’re asking our captains and managers, whose well-intentioned understanding can be out-of-date or based on hearsay. Members are free to consult the Club’s General Secretary about any aspect of ownership, from purchase, through crew employment and regulatory requirements, to a successful sale and on to bigger and better. About time! I can’t always justify taking advice on operational matters. If we can come together to share both expense and experience then that has got to be a good thing. OWNER'S REPRESENTATIVE, 35m SY GUIDANCE ON MATTERS WHICH MATTER With the relevant Members’ permission, we’ve summarised some of the guidance provided previously by our General Secretary, in the form of a handbook, for the benefit of other Members and the wider community. The information may not apply to your circumstances. If you need help in respect of specific situation, please contact us. Contact Us

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 39 m Length Builder & Co Builder 1921 Build year 210 Gross tonnage British Virgin Islands Registry Particulars Template

Unavailable at present Latest Position Example Brokerage & Co Listing Email WhatsApp +44 7773 246 246 Central Agent 72 m Length Thompson Yachts Builder 1996 Build year 1020 Gross tonnage Cayman Islands Registry Particulars Instance