DISCLOSURE STATEMENT
RECITALS AND CERTAIN DEFINITIONS,
ARTICLE I - ADDITIONAL DEFINITIONS

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  THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR World Yacht Club Ltd, an Association of Condominium Owners,  is made this 15th day of May, 2003, by Jack H. Hinshaw, Cruise Ship Condos LLC ("Declarant").

Recitals and Certain Definitions

A. Declarant is the manager of the personal property ("Initial Property") described in Exhibit A.

B. Declarant desires to create on the Initial Property and such additional property ("Annexed Property") as may be annexed to the Initial Property pursuant to the Article entitled "Annexation" an interrelated and interdependent residential personal property development.

C. As used in this Declaration, the term "Property" shall mean the Initial Property. 

D. For the purpose of enhancing and protecting the value, desirability and attractiveness of the Property, Declarant has deemed it desirable to establish covenants, conditions, restrictions and easements upon the Property which will constitute a general plan for the maintenance, improvement, use and enjoyment of the Property.

E. For the efficient management of the Property and the preservation of the value, desirability and attractiveness of the Property, it is desirable to create a corporation to which will be delegated the powers of administering and enforcing these covenants, conditions, restrictions and easements.

F. Cruise Ship Condos is a dba (doing business as) division of NWDir.com LLC incorporated under the laws of the State of Nevada created for the purpose of exercising the foregoing powers.

G. Declarant intends to convey all of the Property subject to the provisions of this Declaration.

NOW, THEREFORE, Declarant hereby establishes covenants conditions, restrictions and easements upon and subject to which all of the Property shall be held and conveyed, which are hereby declared to be for the benefit of all of the Property and each present and each future owner of the Property. These covenants, conditions, restrictions and easements shall run with the Property and shall be binding upon all parties having or acquiring any right, title or interest in the Property and shall inure to the benefit of and bind each present and each future owner of the Property and are imposed upon the Property as equitable servitudes in favor of the Property as the dominant tenement or tenements.

ARTICLE I – ADDITIONAL DEFINITIONS

As used in this Declaration, the terms set forth below shall have the following meanings:

Section 1.01. "Architectural Committee" means the committee provided for in the Article entitled "Architectural Control".

Section 1.02. "Articles" means the Articles of Incorporation of the Association.

Section 1.03. "Assessment" means any or all demands for money by the Association that were determined to be necessary by a majority vote of the Association, as the context in which the term is used, and that are required for any of the categories defined below:

(a) "Capital Improvement Assessment" means a charge against each Owner and his Unit representing a portion of the cost to the Association for the installation or construction of any capital improvement on any of the Common Area within the Property or any Association Property or Maintenance Area as provided for in this Declaration.

(b) "Reconstruction Assessment" means a charge against each Owner and his Unit representing a portion of the cost to the Association for the reconstruction of any portion of the Common Area within his Project or any Association Property as provided for in this Declaration.

(c) "Regular Assessment" means a charge against each Owner and his Unit representing that portion of the Common Expenses attributable to such Owner and his Unit as provided for in this Declaration, also referred to as ‘Homeowner’s Dues’.

(d) "Reimbursement Assessment" means a charge against a particular Owner and his Unit, directly attributable to such Owner, for certain costs incurred by the Association as provided for in this Declaration.

Section 1.04. "Association" means World Yacht Club Ltd, an association of shareholders of The Ship, a new corporation to be incorporated under the laws of the country of registry of The Ship and its successors or assigns.

Section 1.05. "Association Property" means any ship that is acquired and conveyed to the Association of Condominium Owners, aka World Yacht Club Ltd, including the common areas of The Ship as well as all of The Ship, with the exception of the Units (owned cabins or suites, private balconies, and private verandas) and any other property, facilities and improvements owned by the Association for the common use and enjoyment of the Owners.

Section 1.06. "Association Rules" means the rules adopted by the Association pursuant to the Article entitled "Duties and Powers of the Association".

Section 1.07. "Board" means the Board of Directors of the Association.

Section 1.08. "Bylaws" mean the Bylaws of the Association.

Section 1.09. "Common Area" means the entirety of The Ship except the Units (Living Units including cabins, suites, private balconies, and private verandas), without limiting the generality of the foregoing, specifically including all structural projections within a Unit which are required for the support of the ship, including water and waste pipes, all sewers, all pipes, ducts, flues, chutes, conduits, wires and other utility installations wherever located (except the outlets of such installations when located within Units), The Ship upon which the structures are located, the air space above these structures, all bearing walls, columns, floors, roofs, foundations, common stairways, window glass and the like.

Section 1.10. "Common Expenses" means the actual and estimated costs of: maintenance, management, operation, repair, reconstruction and replacement of Common Area and any Association Property (unless the cost of such repair, reconstruction or replacement is otherwise provided for in the Article entitled "Destruction") and any Maintenance Area; unpaid Assessments; management and administration of the Association, including, but not limited to, compensation paid by the Association to managers, accountants, attorneys and employees; utilities, trash and garbage disposal, and other services which benefit the Common Area or Association Property; insurance obtained pursuant to this Declaration; adequate reserves as appropriate, including any expressly required by this Declaration; bonding of the members of the Board; taxes paid by the Association; amounts paid by the Association for the discharge of any lien or encumbrance levied against any of the Common Area or any Association Property; amounts paid or incurred by the Association in collecting Assessments, including amounts expended to purchase a Unit in connection with the foreclosure of an Assessment lien against such Unit; and other expenses incurred by the Association for any reason in connection with any of the Common Area, any Association Property, any Maintenance Area, this Declaration, the Articles, the Bylaws, the furtherance of the purposes of the Association or the discharge of any obligations imposed on the Association or the Board by this Declaration, the Articles, or Bylaws.

Section 1.11. "Unit" means a Living Unit including cabins, suites, private balconies, and private verandas, estate in property consisting of a fractional undivided fee interest in common with the other Owners in the Project in the Common Area of such Project, together with a separate fee interest in a Unit and all appurtenant right, title and interest (including, without limitation, the Exclusive Use Common Area of the Unit). Such fractional undivided fee interest in common of each Owner in Project No. l shall be a l/20th undivided interest. Such fractional undivided interest in common of each Owner shall also be described in the instrument conveying a Unit to such Owner and shall not be changed except as provided in this Declaration.

Section 1.12. "The Ship" means the entire ship of that name, containing one or more Units.

Section 1.13. "Unit Elements" means the following:

(a) "Balcony", which means that portion of a Unit designed for use as a private balcony. The description of each private balcony (including its boundaries) shall be as set forth in the Unit Plan for the Project in which the balcony is located.

(b) “Veranda”, which means that portion of a Unit designed for use as a private veranda. The description of each private veranda (including its boundaries) shall be as set forth in the Unit Plan for the Project in which the private veranda is located.

(c) "Residential Element", which means that portion of a Unit designed for use as a residence, and shall be identified on the Unit Plan by a Unit number only or the Unit number and the letters "R.E." The description of each Residential Element (including its boundaries) shall be as set forth in the Unit Plan for the Project in which the Residential Element is located.

Section 1.14. "Unit Plan" means the Unit plan for The Ship recorded by the Declarant with The Ship classification society and any amendments or modifications to such plan.

Section 1.15. "Declarant" includes such of the Declarant’s successors as shall acquire the Declarant’s entire fee interest in the Property as of the date of acquisition. Persons or entities who acquire less than all of such fee interest (including without limitation, those acquiring less than all of the Units owned by the Declarant for purposes of development or residential use) shall not be successors of the Declarant for purposes of this Declaration, but rather shall be Owners. However, nothing in this Section shall be deemed to preclude the Declarant from assigning or delegating any of its rights or duties to anyone as provided in this Declaration.

Section 1.16. "Declaration" means this Declaration of Covenants, Conditions and Restrictions as the same may be amended or supplemented from time to time.

Section 1.17. "Exclusive Use Common Area" means the following:

(a) "Telephone Wiring", which means internal and external telephone wiring designed to serve a single Unit, but located outside the boundaries of the Unit and within the Common Area or Association Property.

(b) "Unit Appurtenances", which means any shutters, awnings, window boxes, and hardware incident thereto, screens and windows and other fixtures (including lighting) designed to serve a single Unit, but located outside the boundaries of the Unit and within the Common Area.

In interpreting deeds, leases, declarations and Unit and other plans, the existing physical boundaries of the Exclusive Use Common Area of a Unit, or of the Exclusive Use Common Area of a Unit reconstructed in substantial accordance with the original plans of such Exclusive Use Common Area and Unit, shall be conclusively presumed to be their boundaries rather than the description expressed in the deed, lease, declaration or Unit or other plan regardless of settling or lateral movement of The Ship and regardless of minor variances between boundaries as shown on the Unit or other plan or in the deed, lease or declaration and those of The Ship {including such Exclusive Use Common Area and Unit) as constructed.

Section 1.18. "Family" means one or more persons related to each other by blood, marriage or legal adoption, or a reasonable number of persons not so related who constitute a bonafide single housekeeping unit, together with his or their domestic servants.

Section 1.19. "First Mortgagee" means the Mortgagee of a Mortgage which Mortgage or similar encumbrance has priority over any other Mortgage or similar encumbrance encumbering a specific Unit. "First Mortgage" means a Mortgage which has priority over any other Mortgage encumbering a specific Unit.

Section 1.20. "Maintenance Area" means any area within or outside of the Property which is not Common Area or Association Property, but which the Association is required to maintain by this Declaration or any Supplementary Declaration or by contract between the Association and the Declarant or any other person or entity, including without limitation, any governmental authority. Any electrical pipes, conduits, wires, facilities and installations located within a Unit which serve one or more other Units shall be Maintenance Area.

Section 1.21. "Member" means every person or entity that holds membership in the Association as provided in the Section entitled "Membership".

Section 1.22. "Mortgage" means any recorded mortgage or deed of trust which encumbers a Unit.

Section 1.23. "Mortgagee" means a mortgagee (including a First Mortgagee) under a Mortgage and includes the beneficiary under a deed of trust.

Section 1.24. "Owner" means one or more persons or entities that are the record owner, including the Declarant and the record vendee of a Unit under an installment sales contract, of the fee title to any Unit, but shall not mean those having such interest merely as security for the performance of an obligation.

Section 1.25. "Project" means any areas of The Ship or ships that may be used or modified for the common benefit of all Unit Owners.

Section 1.26. "Supplementary Declaration" means any Supplementary Declaration of Covenants, Conditions and Restrictions or other similar instrument covering property to be annexed to the Initial Property as provided in the Article entitled "Annexation".

Section 1.27. "Unit" means the elements of a Unit which are not owned in common with the Owners of other Units in a Project and shall consist of a Residential Element and may or may not include a balcony or veranda, together with one or more of the other Unit Elements. In interpreting deeds, leases, declarations and Unit and other plans, the existing physical boundaries of a Unit, or of a Unit reconstructed in substantial accordance with the original plans of such Unit, shall be conclusively presumed to be its boundaries, rather than the description expressed in the deed, lease, declaration or Unit or other plan, regardless of settling or lateral movement of The Ship in which such Unit is located and regardless of minor variances between boundaries as shown on the Unit or other plan or in the deed, lease or declaration and those of The Ship as constructed.