The Financial Bottomline

1. Interval Yachts Ownership
(Only Pay for what you use)
-OR-
Why pay for 365 days when the average person only uses the yacht for 20 to 30 days annually)
Welcome to the world of Interval Yacht Ownership.
The attachment contains several Facts and Figure sheets which clearly demonstrate the
overwhelming benefits of our Interval ownership program on an individual and
business level when compared with other vacation choices.
Fact and Figure sheets:
1) Overview (WHITE) addresses the mechanics and benefits of the Interval
Program.
2) Personal Opportunity (GREEN) outlines and explains the financial investment
aspects of a 10% purchase in a $5M yacht.
3) Why Charter (PINK) compares the advantages of Interval ownership vs.
chartering. Why rent when you can own?
4) Business Opportunity (YELLOW) shows how your ownership share can be
used for business advantages.
5)Moving Up (GREY) illustrates how a 50' boat Owner can step up to a 100' yacht
with all of its privileged treatment and luxuries for less money.
6) Yacht Ownership vs. Destination Purchase (BLUE) clearly demonstrates many
overwhelming advantages of owning a share in a Interval Yacht instead of making
a purchase in a land based vacation house.
7) CNN Interview excerpts.
8) The Offer to Purchase and Wiring instructions are included for your
convenience once you have selected a yacht.

2. INTERVAL YACHT OWNERSHIP
PROGRAM OVERVIEW
The Interval Ownership Concept:
The Yacht Management Company divides its cost of a yacht into 10 Interval shares. Each share entitles
you to 4 weeks per year of "on board" time typically taken two weeks the fIrst half of the year and two
weeks the second half of the year. The remaining 12 weeks are allocated for yacht relocation, shipyard
maintenance, and crew down time. The owners use schedule is formulated on a rotating basis. The
annual operating expenses are also divided among the shareholders on a percentage of ownership.
Each yacht is owned by an LLC to insure personal liability, which also allows individual tax benefits.
Your share can be sold at any time or can be used as a source of income through our charter division.
The Best Selection of Luxury Yachts:
The Yacht Management Company, Interval Program works with leading luxury yacht manufacturers
throughout the world, yacht brokers and current yacht owners to bring you the largest selection of
Interval luxury yachts available.
Challenges of Ownership:
Yachting should be a Joy. But the ownership burden gets in the way. Problems with recruiting and
monitoring crew, securing a berth or just making sure the right provisions and correct maintenance
supplies are on board can be a major hassle.
Tracking routine maintenance becomes a major time consuming responsibility. Most yacht owners
work year round to support their yacht, but only enjoy a few weeks a year on the water.
The Yacht Management Company Management Solution:
The Yacht Management Company eliminates all the headaches and hassles of yacht ownership. The
Yacht Management Company's team of expert managers, with their 75 years of experience, will
initiate, oversee and control every aspect of your yacht such as maintenance, human resources,
purchases, repairs, and site inspections. With our fleet purchasing power, we are able to secure the
best pricing from yacht manufacturers, vendors and shipyards for our clients. There are no mark‐ups
whatsoever and no incentive to waste your money. When you're working with The Yacht Management
Company you're working with yacht owners who understand the challenges in managing a major
capital investment.
Please call us at 315 482 6415 to speak to a WME YACHTS LTD Representative. Visit our
website@www.IntervalYachtOwnership.com

3.
Interval Opportunity for Individuals
In this example you purchase a 10% share of a $5,000,000 yacht for $500,000. This "one time"
purchase entitles you to use her 4 weeks per year forever (two weeks in the winter and two weeks in
the summer) in different locations. Twelve weeks are reserved for ship yard maintenance,
transporting and crew time off. The annual operating expenses are shared among the Interval owners
on a percentage of ownership basis. The total projected annual operating expenses, which include
crew payroll, insurance, repairs and maintenance, management and supplies which in this example are
$400,000. Your 10% annual share would be $40,000.
The Yacht Management Company Interval Program saves you millions on your initial capital
investment as well as huge savings on the annual operating expenses because of our fleet purchasing
power and purchasing wisdom. Should you elect to finance your purchase the interest on the loan is
tax deductible as this could be considered a second home.
Example:
TOTAL YACHT PURCHASE PRICE $5,000,000
YOUR TOTAL 10% PURCHASE PRICE $500,000
TOTAL ANNUAL OPERATING EXPENSES $400,000
YOUR 10% SHARE CONTRIBUTION $40,000
THE ONLY OTHER COSTS ARE YOUR CONSUMABLES WHILE ON BOARD.
Comments:
The Yacht Management Company Management with its 75 years of asset management experience
removes all of the aggravation of yacht ownership allowing our Interval Owners the benefit of
traveling on their own yacht to all of the exotic locations in a relaxing and spoiling atmosphere.
TO SCHEDULE AN APPOINTMENT TO SEE ONE OF OUR INTERVAL YACHTS
PLEASE CALL US AT 315‐482‐6415 OR EMAIL US AT
IYOWorldoffice.ning.com

4.
WHY CHARTER (RENT)
WHEN YOU CAN OWN FOR 1/3 THE COST?
The Yacht Management Company INTERVAL YACHT OWNERSHIP PROGRAM
This sheet reflects a brief but important financial comparison of chartering a yacht over a five year period
vs. making a one time Interval purchase in a yacht that is completely outfitted with all the amenities and
features that you would want if you were purchasing a whole yacht for yourself and your family.
It is designed to illustrate why Interval ownership is financially superior to renting. The concept of
chartering is one of carefree yet expensive vacations on someone-else's unused toy and until now has been
the only accepted choice to enjoy the yachting experience.
The Yacht Management Company's Interval Program allows you all the same carefree benefits of
chartering along with the pride of ownership and resale residuals at a fraction of the cost.
So, why rent when you can own for 1/3rd the cost?
CHARTER SCENARIO:
Charter a 100' yacht, 2 years old with 4 staterooms for $50,000 a week.
4 weeks of chartering @ $50,000 = $200,000 annually.
5 years of chartering is $1,000,000 plus tips = $1,200,000
INTERVAL OWNERSHIP SCENARIO:
Purchase a 10% share in a brand new $6M 100' fully loaded 4 stateroom yacht. Your total purchase price
is $600,000.
Use 4 weeks annually or receive the charter income
• Your estimated annual Interval share of the operational expenses and reserves is $40,000 (based
on a total annual expense of $400,000)
• Upon the resale of your share at any time, you receive the residuals.
• If you finance 80% of your purchase price of $600,000 and pay your annual share of the
operating expense, it is still 1/3 the cost of chartering.
THE PROOF:
Down 20% ($120,000) of the $600,000 purchase price. Finance the $480,000 balance @ 6% interest
which is tax deductible.
Annual Finance Cost $28,800
Annual Share of Operating Expense $40,000
Your Total Annual Cost $68,800
5 years of Interval ownership @ $68,800=$344,000
$344,000 (Interval ownership cost) VS. $1,200,000 (chartering cost)
When your share is sold, your portion of the residuals should be sufficient to payoff the lender *
Individuals should review this information with their personal accountant and attorney.

5.
Interval Concept Business
Ownership Example with 4 Weeks of Charting
and 75% Bank Financing
In this example you establish a business entity to own your share or shares in the LLC that owns your
yacht. As a business investment, you can deduct 100% of your share of the annual operating expenses,
the interest on the loan, plus 10% annual depreciation of the total investment. In this example, the
entire yacht is purchased for $5M. Your 10% share costs $500,000 and you put 25% or $125,000
down and finance the balance at 6% interest only. The yacht will charter for $40,000 weekly. With
each 10% share 4 weeks of use per year are allocated. The total operating expenses for the entire
yacht are estimated at $400,000 annually or $40,000 for each 10% share. In this example, you decide
to sell your share at the end of year seven for $470,000.
SUMMARY
Purchase Price $5,000,000
Your 10% Interest Investment $500.000
Your Cash Down Payment (25%) ‐$125,000
75% Financing @ 6% interest only $375,000
Your Depreciation tax Basis $500,000
IN THIS EXAMPLE YOUR TAX STATEMENT WOULD LOOK LIKE:
Charter Income (4 weeks @ $40,000) $160,000
Less: Charter Broker Commissions $32,000
Net: Charter Income $128,000
Expenses Annually (Deductible)
10% Share of Operating Expenses $40,000
6% Loan Interest on $375,000 $22,500
10% Annual Depreciation $50,000
Total Expenses ‐$112,500
Net Taxable Income $15,500

6. Interval Option for Businesses Page 2
The net taxable income is decreased by the depreciation amount which is paper loss only for income
tax purposes.
There are many advantages for you to establish a business ownership program. One is the liability and
the second is the tax advantage. 100% of your share of the annual operating expenses plus the annual
depreciation, plus the interest on the loan are all deductible for income tax purposes for each year of
ownership.
CASH FLOW STATEMENT SHOWS RETURN ON YOUR INVESTMENT:
Net Charter Income $128,000
Less:
10% Share of Operating Expenses $40,000
6% Loan Interest $22,500
Total Cash Expenses $62,500
Actual Cash Income $65,500
ACTUAL CASH RETURN ON YOUR INVESTMENT:
Cash Income $65,500 = 52.4% Return
Initial Investment $125,000 on Investment
From a purely cash return on cash invested standpoint the return is 52.4%. This assumes a net charter
income of $128,000. In the unlikely event you fail to charter one, or even two, of your four weeks you
would still realize a positive cash return. Although a smaller return, the benefit would be increased
because in that year the business might show a tax loss, which would lower your overall taxes.
ASSUME FUTURE SALE IN YOUR EXAMPLE
Future SaIe Price $470,000
Payoff Existing Loan ‐ 375,000
Your Proceeds from Sale $ 95,000
Since you will owe about half this amount in capital gains taxes, based on the depreciated cost of your
yacht, this may not seem like a lot. But remember, you've had a positive cash flow of over $65,000
EVERY year and have only been taxed on about $15,000 each year.
(Individuals should review this information with their personal accountant and attorney.)

7.
COMPARISON OF:
OWNING A BOAT INDIVIDUALLY OR:
OWNING A 10% SHARE IN A INTERVAL YACHT
In our example Smith owns a 50' 3 stateroom boat that cost him $700,000 new. The boat is docked at a
marina and Smith has a part time maintenance man that checks the boat twice a week. Smith uses the
boat on occasional weekends taking short trips with his friends and family. The boat is now five years
old and requires some major mechanical and cosmetic work.
Smith is considering selling his boat and purchasing a 10% interest in a brand new 4 stateroom
Interval yacht for $495,000. Smith likes the idea of owning a brand new yacht complete with
warranties, competent management and a professional crew. He also resents being tied to the helm
while his guests enjoy themselves on his boat.
Cost of ownership for his 50' boat:
Investment $700,000
Annual expenses:
Dockage $18,000
Maintenance checks $20,000
Repairs $15,000
Supplies $6,000
Insurance $10,000
Miscellaneous $6,000
Total annual expenses $75,000
Cost of owning a 10% share in a brand new fully outfitted 100' 4 stateroom yacht complete with a top
deck Jacuzzi, 2 jet skis, a 25' Wellcraft tender, and a professional crew of 4 to serve him and his guests
4 weeks annually in exotic locations.
Cost of owning a share of a new 100' yacht:
Investment $495,000
Annual Expenses $40,000
Responsibilities NONE
Aggravation NONE
Enjoyment ALL

8.
VACATION DESTINATION
COMPARISON
We've attempted to compare the vacation destination clubs with owning your own yacht but we've
come to the conclusion that there is NO comparison.
The Smith family is considering purchasing a vacation destination and is focusing on two alternatives.
Joining a Destination Home Club or purchasing a share in a luxurious Mega Yacht. The Smith family
members have voiced their opinions of the many activities they would like to enjoy while at their
vacation destination. Mrs. Smith absolutely does not want to cook or clean, she just wants to lounge by
the water and be pampered. Mr. Smith wants to go golfing and deep sea fishing. The kids want to go
swimming, jet skiing, snorkeling, fishing and beaching.
Mr. Smith's biggest concern with the "Destination Clubs" is that he is simply buying the right to use a
residence. Sold by a profit‐motivated developer it carries a high degree of financial risk. The other
complaints from the Smith family members are the limited activities. It's the same window view, TV
programs and restaurants everyday.
On the other hand the Interval Yacht purchase buys you a luxury hotel atmosphere in a beautiful
environment with full services including your own private chef and stewardess catering to your every
whim while waking up to a different vista every day. Bask in the sun in your own private Jacuzzi while
listening to your favorite music. Enjoy gourmet dinners under the stars or explore dining ashore or
picnic in a private cove just for you. Owning a share in a yacht gives you the ability and opportunity to
visit any destination you choose like wintering winter in the Caribbean with its unlimited choices of
golf courses, prime fishing spots, and water activities for the family on your own water toys whenever
you want.
Unlike a destination club, Mr. Smith will receive a title for his share in the LLC that owns his yacht, will
receive the tax benefits of ownership and collect full residuals upon the sale.

9. EXCERPTS FROM THE CNN & Interval Yacht Ownership INTERVIEW
This interview was conducted on November 4, 2006 between
President of The Yacht Management Company Interval Yachts and CNN.
Interval ownership is a form of ownership where you buy the portion of the yacht and experience that
you will use or sell. You do buy or pay for the portion/fraction that you do not use. It is perfect for
yacht owners and buyers who want the yachting experience with no hassles and no waste of their
financial resources.
The Yacht Management Company takes the net cost of the yacht and divides it into Interval shares
entitling each owner a percentage of use per year forever. The total annual operating expenses such as
crew, insurance, supplies and shipyard are also divided on a percentage of ownership. It operates very
much like a condominium. I call it a "Yacht‐o‐Minium".
There are multiple benefits of Interval yacht ownership. In addition to the obvious ones of sharing in
the cost of the initial purchase and the annual operating expenses, there are:
1. You receive all the pride and privileges of sole ownership at a fraction of the price.
2. You do not pay for something 365 days a year and only use it a few weeks a year. Reports tell us
that the average usage of a yacht, by its owners is 3 weeks a year.
3. Owners are able to exchange their weeks on other yachts in the program throughout the world.
4. Our owners are not burdened with any aspects of the daily operations such as crew, crew
replacement, benefit package, vendor negotiations, repairs & maintenance, scheduling and accounting.
5. Current owners can turn their idle asset into immediate cash, by simply selling the portion they
don't use. They can pull out those tied up equity dollars and simultaneously spread the annual costs of
ownership by selling 10%,20%,50% or any percentage they choose through the “The Yacht Management
Company” Interval Program. Closings are timely so current owners realize immediate benefits.
Each 10% share receives 4 weeks of annual use based on a rotating calendar schedule: two weeks in
the summer location and two weeks in a winter location offering multiple yachting experiences.
Each yacht is individually owned by an LLC, therefore as in any company, the shareholder simply sells
their share independently or through The Yacht Management Company Interval Yachts.
As the pioneer of the Interval yacht ownership program six years ago, I have seen the demand for
these benefits increase exponentially. The success is not proven by The Yacht Management Company's
growth alone, but also by world wide demand, increased media coverage and yacht manufacturers
who are entering into the Interval yacht industry. Interval yacht ownership is the only viable
alternative as the cost of yachts and yacht ownership has become prohibitive to many.
What about current yacht owners? Can they benefit?
We encourage current yacht owners to enroll the unused portion of their yacht into the The Yacht
Management Company Fraction Program.

10. OFFER TO PURCHASE
The Interval Yacht Management Company
WME Luxury Ltd Corp.
YACHT(S) NAME: ___________________ _____
I desire more information on the (CIRCLE ONE) INDIVIDUAL OWNERSHIP, BUSINESS
OWNERSHIP Interval
yacht ownership program and specifically the yachts described above. I am not relying on representations
by broker, and I have or will personally inspect the program conditions to determine how this opportunity
and agreement will benefit me. I understand that no promises or warranties have been implied or
expressed by Broker unless contained herein. Seller warrants that the Interval Yacht Ownership offering
will be explained in full. I confirm that the costs of the program are within my current financial ability to
pay.
Buyer: Name Phone:
Address Cell:
City State Zip email:
Dated:
Down Payment to hold ______ ownership shares on vessel ________________. Amt $___________
Amount will be held in WME Yachts Ltd Escrow, and will be returned if the below listed contingencies
are
not met. This amount when the agreement for Interval yachts is accepted will be applied to the purchase
price of the ownership share and to commission on the sale to WME Yachts Ltd.
Conditions Regarding Offer to Purchase:
1. This offer may be withdrawn at anytime prior to its acceptance.
2. This offer may be voided by the Buyer upon an unsatisfactory personal inspection of the
Interval
Ownership Share offering.
3. This offer is valid for a period of 10 days, of signing. This can be extended by approval of the
buyer.
Signature of Buyer(s): Witness: ________________________
________________________