1. FRACTIONAL OWNERSHIP C HRISTOPHER J. A NDERSON

2. 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

3. TYPICAL DOCUMENTS FOR FRACTIONAL OWNERSHIP  PURCHASE AGREEMENT  POWER OF ATTORNEY  ESCROW AGREEMENT  OPERATING AGREEMENT/SHAREHOLDERS AGREEMENT  YACHT USAGE AGREEMENT  YACHT MANAGEMENT AGREEMENT

4. 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

5. C HRISTOPHER J. A NDERSON canderson@robertallenlaw.com (305) 372-3300 A copy of this presentation can be found at: www.robertallenlaw.com 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