"HOW IT WORKS"

Fractional Yacht Ownership has become hugely popular in Europe in the past 3 years especially on the Mediterranean, in which half million and million dollar yachts are more the norm, than smaller boats these days. Many of the wealthy entrepreneurs have seen that this idea has allowed them to obtain the huge watercraft, without tying up millions of dollars in money that could have been invested in other more profitable ventures, then the recreational watercraft for the rich. In America, in the past 2 years, Partial or Fractional Yacht Ownership has been introduced by way of "Net Jet" and its corporate success in the multi-million dollar jet aircraft industry. As more and more jet aircraft are being obtained in this fashion, the corporate world is finding this "fractional" ownership process to be the catalyst for increased multimillion dollar aircraft flying in the skies over America. So, likewise, it has become a natural evolution for this intelligent and successful form of financing to "catch on like wildfire" in the boating and yachting industry.

Destin Fractional Yachts, LLC is the only brainchild in the Northern Panhandle of Florida for this innovative way of enabling more water-lovers to enjoy the adventure of bigger watercraft here in Destin.

1. Destin Fractional Yachts, LLC has the experience and business skill to put this "yacht enabling" model into play here in Destin. The first step occurs when Destin Fractional Yachts, LLC (or Destin FY, LLC) coordinates 10 like minded boat and yacht enthusiasts together. Particular attention is taken in order to organize a group of 10 like minded boat owners, similar to E-Harmony does as they combine those compatible psychological traits for a long term relationship. This group of boating enthusiasts then choose the boat and cost range in which they desire. Once they have chosen the boat and agreed upon the amenities and electronics and other watercraft facilities for this yacht, they come together to form a "loose" LLC. All the legal processes are guided over closely by Destin FY, LLC in order to reduce any problems or errors down the line. Destin FY, LLC additionally produces the legal documents, which have already been analyzed by attorneys, so that this process can be done quickly and with a minimum of error. Each owner then deposits 1/10 of the cost of the boat or yacht into the LLC bank account, and the boat is then purchased completely, and without any mortgage or other encumbrances. Destin FY, LLC owns no share or portion of the boat, only the 10 boat owners have legal ownership of this chosen boat. Destin FY, LLC simply plays the role of administrative guide, and executor of the processes, as well as later on , it is the administrative body and management for the dock fees, insurance payments, and maintenance, and any other office duties. Furthermore, Destin FY, LLC additionally delivers the boat to the owners on their chosen days of usage, and picks the boat back up when the owners are finished with their usage days. Each owner has 4 weeks usage of the boat, or 28 days. The boat is used in a minimum of 2 day increments. There is a monthly service charge (not to exceed 2% of the original cost of the boat), which each of the owners pays to the Destin Fractional Yachts, LLC. This fee covers the following items;

1)  Full Coverage Insurance for the watercraft
2)  The deductible in the event of an insurance claim
3)  Administrative costs
4)  Cleaning costs for each usage
5)  Transport cost, fuel, for placement of the boat where the owner requests, and to pick the boat up after usage.
6)  5 Year Service Warranty, and any mechanical costs for repairs etc.
7)  Any purchase of new items, lost or broken, such as life vests, etc.

There shall always be made available, any invoices, and administrative cost spreadsheets available to all owners upon request. Each owner is responsible for paying their 2% monthly fee by the first of each month. There will be made readily available, a calendar on the Destin FY, LLC Website at all times in which each owner may post their chosen use dates. Each owner will have the very same and equal opportunity for booking their preferred days on the calendar, and within 2 business days, Destin FY, LLC will send a written acknowledgment that they have received each owners new usage dates. Each group of owners may organize separate rules as to whether they wish to have Destin FY, LLC to charter their watercraft or not. If they choose to have their watercraft placed on the charter profile, each owner may "turn in" their usage days and be compensated monetarily for those days not used, (turned in, for use on the charter board). Other owner groups may wish to not have their boat chartered at all. Owners may trade days or "swap" extra days to other owners for agreed upon compensations amongst themselves.

Each owner will have an allotted number of usage days per month, during the peak seasons of the spring, summer and fall, so that each owner may enjoy the same fair amount of days as any other owner. The fairest organization of usage days will be considered the utmost important factor by Destin FY, LLC. No one owner shall have a monopoly of "choice" holidays, but all shall receive a fair "measure' of good days, weekends and week days.

The owners shall only pay the initial deposit of 10% of the cost of the watercraft upon purchase, and the above mentioned monthly fee. There shall not be any other fees attached, unless there is additional costs incurred by the watercraft that exceed the excellent insurance policy, or excellent service warranty, and any other fees that would ever go above and beyond the one time 10% payment and monthly fee. On the 5 year of the purchase date of the boat, the vessel shall be sold, unless one or more of the current owners wish to keep ownership beyond that point. But most usually at that time, the vessel will be sold with the utmost possible yielding price, and the purchase amount will be divided evenly among the 10 owners.

Destin FY, LLC shall make available to all owners, many various documents and instructional documents, which will allow each owner to be capable of filing each year on income tax, a sufficient "Accelerated Depreciation" related to the boat, in which each owner, my add to his income tax, for further savings during the income tax year, as relief. It should be remembered that each owner may execute his right to utilize the watercraft as a business expense, and therefore further appreciate additional tax breaks each of the 5 years. Now, the group of owners may also elect to choose to sell the boat in 3 years instead of 5 years.

The insurance shall be fore total replacement of the boat, as well as a very excellent policy indeed. Therefore, while every effort will be made to evacuate the boat in the event of a hurricane, there shall be no expectable risk that an owner would suffer any significant losses during some unforeseen catastrophe. Destin FY, LLC shall have the position of doing all in its powers to safeguard the watercraft, in the event of such severe weather.

Now, there shall be periodic meetings of the owners, as seen fit by the group. They may also be organized in a such fashion in which they all may be very  obtainable by email, telephone, fax, etc. Destin FY, LLC shall in advance arrange to have the boat at each owners chosen location on Choctawhatchee Bay, each time they are to embark upon the boat for their journey. Destin, FY, LLC shall pre-announce perhaps 5 or 6 different acceptable locations, such as Destin Harbor, and Brooks Bridge, and BlueWater Bay Yacht Club, and 331 Bridge Landing etc., but these shall not be the final choices but examples.
 

, and the boat will be delivered to the owners and returned free of charge, all within the service agreement that comes with the ownership of the vessel. There is a monthly service charge