SYDNEY BY SAIL - INVEST IN A GROWTH INDUSTRY

Hunter 49 Shared Ownership

A unique opportunity exists for shared ownership of a Hunter 49 luxury yacht under management with Sydney By Sail at Darling Harbour. It will be offered for skippered charter on Sydney Harbour and be available for unlimited personal use by shareholders. The yacht will also perform coastal and ocean passages during the Sydney Harbour charter off-season.

The Hunter 49 will be constructed to Bureau Veritas certification. It will be registered as a commercial vessel with NSW Maritime and have all the necessary safety equipment for charter work and coastal/ocean passages.

It is envisaged that the Hunter 49 will be chartered for between 50 and 75 days per year. This includes peak times such as Boxing Day, New Years Eve and Australia Day. When on charter a qualified skipper will be the master of the vessel at all times. It is anticipated that revenue generated from the chartering of the yacht will cover all running expenses before depreciation and interest. (see attached revenue/expenses forecast). Profit from charter activities will be equally distributed to shareholders. There may be tax advantages however you will need to consult with your accountant. Changes to the tax ruling for the treatment of charter boats was announced in the 2006 Federal Budget. From 1 July 2007. All income generated from charter activities may be offset by expenses even if the yacht does not meet the ATO's business test. Please read the attached correspondence from the Deputy Commissioner of Taxation for further clarification of the recent budget announcement.

The Hunter 49 will be berthed at Sydney By Sail, Festival Pontoon Darling Harbour. This private facility has 24-hour security, shore power and fresh water supply. There is ample parking nearby. Sydney By Sail have arrangements with caterers and beverage suppliers who can provide provisioning when under personal and charter use.

In addition to charter activities the Hunter 49 will be on display at major Boat shows. It will also cruise to many Australian and International destinations. Shareholders will have access to the yacht and are welcomed/encouraged to join the passage sails.Draft Schedule for 2007 is as follows.

March/April 2007 Hunter 49 arrives to Sydney and is commissioned
May 2007 Sydney to Sanctuary Cove
May 2007 Sanctuary Cove International Boat Show
June 2007 Sanctuary Cove to Sydney
July 07 Sydney International Boat Show
August 07 Hamilton Island Race Week (delivery weather dependent for arrival in time)
August/September 2007 Cruising Whitsunday Islands
Late September early October delivery to Sydney
October to May Sydney Harbour Owner and charter use

For 2008 and beyond a program of international passages are planned including to Noumea via Lord Howe Island, Vanuatu, Fiji, Thailand via Darwin, Bali, Singapore Auckland and the Bay of Islands. Shareholders will be invited to participate in these sailing trips and have use of the vessel when at the destinations. These trips will be planned around the off-season to minimise any disruption to charter income.

The Hunter 49 will be fitted with the latest state of the art communication, navigation systems and will be have no expense spared with many creature comforts.
Please see specification sheet. Some of these options include the latest Chart plotters, Radar, VHF and long range HF radios, autopilot, additional refrigeration and freezer capacity, washer/dryer, generator, water maker, additional fuel tanks, air conditioning self tacking jib and spinnaker.

There are four equal shares on offer representing 25% ownership of the yacht.
Shares are secured with a 10% deposit. A sale agreement is entered in to with US Yachts who are the Australian importers/distributors for Hunter Marine. The payment schedule is as follows.

10% deposit Yacht Ordered
65% 2nd instalment 7 days prior to factory completion Yacht shipped
20% 3rd instalment four days before arrival to Sydney Yacht lands
5% on completion Approx 3 weeks

The yacht is ordered when all shareholders pay the 10% deposit and execute the sales agreement.

The management agreement with Sydney By Sail will be for a five-year period. At the end of this period the yacht will be sold. If a shareholder wishes to purchase the other shareholders interest or sell their own interest at any stage during the five-year agreement the value of each 25% share will be calculated as follows.
Independent valuations from three reputable yacht Brokers are obtained. The mean valuation divided by four each 25% shareholding excluding any selling expenses.

Summary

This is a unique opportunity for affordable ownership of a luxury yacht without the hassles of upkeep and maintenance. Plus there are considerable benefits such as extended cruising to and from and while at many exotic destinations.

For further information
Contact Matt Hayes
Sydney By Sail
02 9280 1110