360 Yachting –
Stiletto 27
Fractional Purchase
Agreement and Terms
Vessel: 1979 Stiletto
27 Standard – Refit to New Condition 2007
1) Fractional Ownership Structure - The
Vessel shall be owned by a Florida Corporation or LLC Entity. Nonvoting shares in the Corporation shall be
distributed to owners upon payment of $5000.
Shares are transferable or resalable to anyone who meets the
requirements of this agreement and any future amendments to this agreement. The
value of these shares shall be market value.
2) Storage Location
a.
Vessel
shall be kept in the water, at anchor or mooring, in
b.
In
the event of a Hurricane Threat, the vessel shall be trailered
and stored at a storage facility on land.
Trailering shall be handled by the Management Company and a fee may be
assessed for time spent breaking down, storing and setting the boat back up.
3) Insurance - The boat shall be insured
for personal use. A copy of the
insurance binder shall be available online at
http://www.360yachting.com/WebShare.
4) Number of Owners - The number of
owners shall be 6
5) Sublet or Lease – This vessel may not
be chartered, subleased, or rented.
Furthermore, the vessel may only be operated if an OWNER is on board.
6) Online Booking System
a.
The
Management Company shall maintain an Online Booking System for the owners to
manage their usage of the vessel.
b.
Owners
are required to use the provided online booking system.
c.
360
Yachting shall maintain the booking system.
d.
360
Yachting reserves the right to take the system offline
for maintenance as needed.
e.
Currently
this system only works with Mozilla Firefox Browser.
Management will show you how to upload and install.
7) Booking Rules and Restrictions
a.
Time
slots shall be defined as AM and PM
i.
AM
Time Slots run from
ii.
PM
Time Slots run from
iii.
Owners
shall have the boat back at its mooring at the end of their time slot in clean
“Ready To Go” condition for the next user.
b.
Owners
are guaranteed use of the vessel approximately 120 time slots per year
(calculated by multiplying
( ( 365 days * 2 time slots per day )/12 months
)/ 6 owners). A monthly usage limit of
approximately 10 time slots shall be enforced to keep any one owner from
dominating usage of the vessel during any one month.
c.
To
equally distribute higher demand weekend time, weekend time slots are grouped
monthly and divided by 6. For
example: January has 4 weekends
(sat/sun). This equals 8 days and 16
time slots. Divided by 6 owners = 2.667.
The booking system will allow owners to book 2 time slots each on weekends.
d.
Owners
may book time up to 12 months in advance and as short as 24 hours
e.
Confirmations
of Bookings must be made no later than 24 hours in advance
f.
Last
minute usage is unlimited and shall not count against any owner’s time. Last minute usage must be registered on the
system prior to departure so that the user of the boat is recorded in case of
any damages.
g.
Owners
may book up to all 10 of their monthly time slots in one block.
h.
Owners
may swap and trade time slots with each other using the online bulletin
board. Swaps and trades must be noted in
the reservation.
8) Sailing Competency
a.
New
owners are required to attend a complementary one day orientation to the boat
and the fractional program before they may start booking their time on the
vessel.
b.
During
the orientation, 360 Yachting will determine the owner’s sailing competency and
recommend any plans for improvement if sailing skills are not sufficient enough
to guarantee the reasonable safety of the vessel and passengers.
c.
If
additional experience is needed. Owners may take sailing lessons through the
360 Yachting Sailing School. Rates for
sailing school lessons are posted on the 360 Yachting Website.
d.
Prior
to certification as a competent operator, the owner may use the boat only with
an instructor or captain on board.
9) Responsibility for Damages
a.
Any
damages must be reported immediately to 360 Yachting by phone 866-561-2175.
b.
Owners
are responsible for reading and understanding the insurance policy and its
limitations. Any operation outside the coverage of the insurance is prohibited.
c.
The
boat shall be insured for a replacement value of $30,000. The insurance deductible is $1500. The owner
who damaged the vessel shall have to pay the damage invoice if less than the
deductible and the full deductible amount if in excess of $1500.
Any damages in excess of the deductible will be covered by the insurance
policy unless the operator used the boat in a way prohibited by the insurance policy.
The deductible must be paid by the owner who booked the boat for the time
period in which the damage occurred.
d.
Damage
from Improper docking – If an owner fails to secure the boat properly to the
dock or mooring and damages result from this negligence, that owner shall be
liable for the cost to repair the damage.
Payment will be due upon receipt of the invoice.
e.
360
Yachting shall make the final decision to file any insurance claims.
10) Check in and Check out
a.
Checklists
for check in and checkout are located over the chart table inside the boat.
Owners are responsible for properly filing the check in and check out
checklists.
b.
Check in procedures are mandatory. If forms are not filed properly by an
owner, then they are responsible for any damage that they did not document with
the necessary forms.
c.
Upon
arrival, thoroughly go through the checklist, sign and file in the appropriate
place on the boat.
d.
Upon
departure, also go through the departure checklist, sign and file appropriately
on the boat.
e.
If
an owner does not fully complete the items on the checkout, 360 Yachting may
complete the procedure at the Owner’s Expense at a rate of $40 per hour.
11) Maintenance and Upgrades
a.
For
the vessel to stay well maintained without causing yearly costs to increase, it
is necessary for the owners to thoroughly follow the checklists for check in
and check out. General good habits for
cleaning and organization are expected to be maintained by those who use the
boat.
b.
General
Wear and Tear is expected and normal.
This however is greatly minimized by proper care and cleaning of the
vessel
c.
Upgrades
to the vessel are at the disgression of the
Management Company, 360 Yachting.
d.
360
Yachting may at any time take the boat out of commission for maintenance and
repairs.
12) Management - Yacht is solely managed
by 360 Yachting.
13) Dispute Arbitration - Any disputes
between owners are to be resolved by the Management Company. If satisfaction is still not reached than the
matter is to be arbitrated.
14) Trailering the boat to different
locations - The boat may be trailered to alternate
locations as long as the usage time does not exceed the reservation. Owners who wish to trailer the boat are
responsible for putting it back at the dock where it belongs by the end of
their reservation time. Any traveling
wear and tear and/or damage is to be paid for by the owner who trailered the boat.
15) Personal Upgrades - Owners may
purchase upgrades to the vessel for their own personal use with their own
personal money. They may use these
improvements during their reservation time.
Examples may be – racing sails, spinnakers, electronics, etc.
16) Racing - The boat may be raced.
17) Check in and Check out Procedures
a.
Arrival
– Inspect the vessel and fill out the Pre-departure Checklist
b.
Return
– Follow procedures in the Return Checklist.
c.
If
check-in/check-out procedures are not completed by the owner using the vessel,
360 Yachting will complete the unfinished items at owner’s expense at a rate of
$40 per hour.
18) Operating under the influence of
drugs or alcohol - Operating any vessel intoxicated is illegal and in violation
of the insurance and i
19) Valet Services – If you wish to have
the management company do the checklists for you, we can do so for a fee and
with proper notification.
a.
Valet
Check In – Check the boat in, clean and tidy up, wash down, refuel fuel and
water tanks. $100
b.
Valet
Check Out – Fill out checkout form and prepare the boat for use. Fill coolers with ice. $100
20) Captain Services – If you are not
confident with your sailing skills or just want to party and have fun and be
within insurance rules, then you can hire a captain to be on board and oversee
operation of the vessel for you. Captain’s fees are $40 per hour. Captains must
be contracted through 360 Yachting.
21) Sailing Instruction – After the complementary
orientation, if you still feel the need to have more instruction, please do so
by booking an instructor to put you through a more thorough sailing course. 360
Yachting is a certified US Sailing School and can offer excellent instruction
for you. Instructor cost is $40 per
hour, and course fees are online at our website.
22) Selling Your Share – If you want to
sell your share:
a.
360
Yachting reserves the right of first refusal on all sales of ownership shares.
b.
360
Yachting is the exclusive broker for all ownership transfers and sales.
c.
Because
of the paperwork involved with the LLC Entity, orientation, and other rules
written within – there will be a transfer fee of $500 payable to 360 Yachting
after the sale of your share.
d.
360
Yachting will put all new owners through the same orientation as the original
owners.
23) Maintenance Fees and special
assessments
a.
The
First Years Maintenance Fee is $900 and includes Insurance, Touch and Go
Dockage at the Channel Mark, Online Reservation System, General Maintenance and
Management.
b.
Maintenance
fees are due every six months (i.e. $450 every six months) First payment starts
with your purchase date.
c.
Non
Payment – If fees are not paid on time, use of the vessel may be suspended
until all fees are made current.
d.
Fees
are re-evaluated yearly based on the cost of service, insurance, dockage etc.
If costs go up then the yearly fees must also go up to properly maintain the
vessel. 360 Yachting agrees that fees shall not increase by more than 15% per
year.
e.
360
Yachting reserves the right to make special
assessments due to emergencies.
Assessments shall be split evenly amongst all owners.
24) Non Payment
a.
Delinquency
on any fees will result in suspension from the booking system.
b.
If
an owner does not pay for damages or insurance deductible for damages,
suspension from the Reservation System will occur. Damage costs are due upon receipt of the
invoice.
c.
If
non payment goes beyond 90 days, 360 Yachting has the right to put a lien on
the owner’s equity in the boat and offer that share for sale to recover unpaid
fees. Remaining funds will be paid to the owner.
25) Non Compliance - Owner agrees that
the terms of this agreement are both reasonable and necessary to properly
maintain and manage a yacht amongst several owners. Owner agrees to abide by
the rules set forth herein. Any action taken by an owner that is in direct
violation of the terms of this agreement will jeopardize said owners right to
use the vessel and result in a forced sale of that owner’s equity.
26) Jurisdiction - This agreement is signed
and agreed upon in the State of
27) Terms Subject to Change
a.
The
terms of this agreement are subject to periodic review and modification by the
management company, based on the feedback of the Owners. Owner agrees to not to
unreasonably withhold his consent to future changes in this agreement.
b.
Amendments
shall be presented to Owners in writing with 30 days to approve and sign. If Owner does not agree to approve
amendments, they have 30 days to submit their reasoning in writing to the
management company. 360 Yachting will
take this into consideration and return a reply. If Owner can not agree to the new or modified
amendment after this, they may exit by selling their share. 360 Yachting is in
no way obligated to modify this agreement upon request.
28) Deposit – If full payment can not be
made, one can reserve a spot on the yacht with a nonrefundable deposit of
$2500. The final balance of $2500 and maintenance fee $450 are due within 60 days.
Upon receipt of the final balance, first maintenance payment, signed contract,
and orientation attendance—owners may begin scheduling your use on the vessel.
29) Agreement – By signing below, you
agree to all the terms set forth herein.
Shareholder
Name: _______________________________________
Signature: ________________________________ Date: _______________
360
Yachting: ___________________________________________ Signature: ________________________________ Date: _______________
Witness:
________________________________________________ Signature:
_______________________________ Date: _______________