FRACTIONAL OWNERSHIP C HRISTOPHER J. A NDERSON
EXAMPLE OF BASIC STRUCTURE CORPORATE ENTITY (LLC or INC) OWNER 1 (25%) OWNER 2 (25%) OWNER 3 (25%) OWNER 4 (25%) OWNER 4 (25%) VESSEL
TYPICAL DOCUMENTS FOR FRACTIONAL OWNERSHIP PURCHASE AGREEMENT POWER OF ATTORNEY ESCROW AGREEMENT OPERATING AGREEMENT/SHAREHOLDERS AGREEMENT YACHT USAGE AGREEMENT YACHT MANAGEMENT AGREEMENT
LEGAL HURDLES/ISSUES SEC Pitfalls (Securities and Exchange Commission) Finding sufficient shareholders (what happens if you can’t find enough potential shareholders) Sale of the yacht Damage to the yacht Non-payment/Non- performance by a shareholder
C HRISTOPHER J. A NDERSON (305) A copy of this presentation can be found at: Click on “News and Resources” THE SMALL PRINT: T HE STATEMENTS CONTAINED IN THIS PRESENTATION (1) DO NOT REPRESENT OUR OPINION OR RECOMMENDATION, (2) ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY, AND (3) ARE LIMITED AND DO NOT REPRESENT A COMPREHENSIVE OVERVIEW OF ALL LAWS THAT MAY APPLY TO YOUR SPECIFIC CIRCUMSTANCES. W E SUGGEST THAT YOU CONSULT YOUR ATTORNEY REGARDING YOUR PARTICULAR SITUATION. © 2012 R OBERT A LLEN L AW