Q. Can I watch Television or use the Internet while we are at sea?
Yes.  Satellite television reception is available virtually everywhere the ship may sail.  High speed  Internet service is also available for a nominal fee.  Data ports are planned for the office, lounges, business center and staterooms. 

The cost of Satellite service is higher than fixed location service.  We will need to install a satellite antenna and wire the ship.  The cost is estimated at $50 per month.

Q. Is on-board education available for children?  What are the monthly fees?
This will create an excellent opportunity for some cabin owners to teach and earn a little extra money.  Included will be basic computer skills.  Many of the cabin buyers will be more than qualified to teach, and will enjoy the opportunity.  We will establish a volunteer teaching organization with compensation for volunteer teachers.

Q. What language is used on the ship?
All of the crew and staff you will come in contact with speak English.  Most of the ship's crew are from Europe and Asia.  All deck officers will most likely be American or European.  The housekeeping staff, including room stewards, are more international but most speak fluent English.  For our visits we should all brush up on our Spanish, Italian, German, French as appropriate.  Even a few words of greeting in the local language is always appreciated.

Q. Are excursions and sightseeing included in the maintenance fees?
Shoreside activities include sightseeing, shopping, adventure tours such as submarine rides, recreational pursuits such as snorkeling and sailing, and simply relaxing on a beach.  We offer organized shore excursions for the convenience of our passengers.  On-board presentations are given by the ship's excursion manager or directly from the excursion provider.  There is a charge for these excursions but we only deal with value oriented excursion providers and our negotiated group rates are highly competitive.  These excursions to places of interest include ground transportation and English speaking tour guides. You are transported to and from the ship, any needed equipment is provided, and you know ahead of time how long the tour will last and how much it will cost.  Most of our scheduled ports of call have public golf courses.  Tour and cruise schedules may vary.  On some excursions, the only fees you may have to pay are for port departure passenger tax. 

Q. Can a disabled person buy a Cabin or a Suite? 
Some staterooms and public areas are being equipped with wider doors and assist bars and easily accessible light switches.  Boarding ramps are wide enough for wheelchair access and have a lower than usual slope.  Most of the ships we are looking at have elevators.

If special treatment or attention is required due to physical disability, we must must be notified at the time the reservation is made.  Handicapped passengers who require any form of assistance must be accompanied by a helper who would be responsible for that passenger.  In lieu of a helper, World Yacht Club can provide needed assistance to handicapped passengers with advance notification as to their needs.  We reserve the right to decline, accept or retain any tour passengers whose health or condition renders them unfit for travel, or whose condition may be detrimental for that person or other passengers. 

Q. Is medical assistance available?
Our ship’s medical staff have current medical licenses, extensive experience with cardiac and primary care, trauma, internal, and emergency medicine.  Our ship's medical clinic is equipped with an automatic external defibrillator (AED), and other emergency medical equipment.  The ship’s doctor can work with you to keep your prescriptions current or to provide follow up treatment to your shore side medical treatments.

ASSESSMENTS

Q. How much are the annual Maintenance Fees and what do they cover?
Maintenance dues (Assessments) are designed to cover the actual costs of operating the ship and provide for funding of annual maintenance including unforeseen and catastrophic happenings.  Much of the risk is protected by insurance.  A reserve fund will be maintained for annual maintenance.  These costs are distributed among the staterooms with some adjustment for size, and the residents.  Current costs are shown on the price list at www.nwdir.com/price list.htm.

Maintenance Costs include operation of the ship – fuel, oil, maintenance, utilities, insurance, professional fees, crew and staff wages and benefits, and standard services for Owners including room service, housekeeping, assistance with luggage and storage, entertainment, and subsidized spa functions.

Q. How can I minimize my annual Maintenance costs?
Rent or lease your unit when you don’t plan to be aboard.  You can do this directly or through Cruise Ship Condos.

BENEFITS

• Freedom from much of the daily tasks and strife of life.  No lawns to mow, leaves to rake, snow to shovel, cows to milk, housekeeping chores, telemarketing calls. 

• No utility bills (except optional services – telephone, TV, internet)

• No Rent or Mortgage Payments

• No property taxes

• Housekeeping is included

• Nightly entertainment included

• Onboard activities included

• Internet access is available in the business center and your cabin at an additional fee

• Full-time medical doctor onboard - save up to 60% on Prescribed Drug and Medical costs at our well-equipped Medical Clinic (including defibrillator and emergency equipment)  

• Assistance with keeping your prescriptions current

• Follow-up medical attention to possible shore-side treatments

• Rent, loan, exchange or sell unused cruise time 

• Purchase live aboard accommodations with friends or family and share the cruise time

• Exchange your cruise time for shore side vacations

CONDOMINIUM OWNERSHIP - WHAT IS IT?

Q. Just what am I buying?
Similar to a shore condominium, you are purchasing a fee-simple stateroom, and an undivided interest in all common areas in the ship.  You are purchasing in common with other shareholders the services of the deck and engine room crew and hotel staff.  The value of the shareholders certificate indicates the value and voting points of your interest as a percentage of the value of all staterooms.

Owners may make cosmetic changes – beds, night stands, carpet, wall and ceiling finish plumbing and electrical fixtures at their expense.  Minimum standards must be complied with as you would expect in a hotel.  Each dwelling unit will have a phone, TV, and internet data terminal.  These standards and samples will be provided by the Architecture Committee.  You may make improvements to the interior of the unit but may not make any structural changes.  A permit from the Architectural committee.  Our maintenance and rehabilitation crew will be made available for completion of the work on a time available basis.

 ENTERTAINMENT

Q. What kind of entertainment is planned. Will there be movies onboard?
Shareholder will determine the type of entertainment as determined by your requests and the actions of the Entertainment and Budget Committees.  It is expected that it will be a combination of stage shows, local entertainers from the places we visit and vocal and piano or instrumental singles or groups living on the ship.

Q. Will there be movies onboard?
There is a movie theatre and most ships have movies by TV from the ship's library.  CD videos will be available from the Library or for purchase from the gift shop.

Q What is the cost of food?
The cost of meals is not included. We purchase food wholesale in very large quantities.  We estimate average per person costs of about $12 per day. 

Choose from 5 course, 4 star meals and service in the dining room, lavish buffets, quick and economical cafeteria, poolside, catered beach parties and stateroom service.  Your meals will probably cost you less than you are paying now.

INVESTMENT POTENTIAL

Q. Can I make money with my cabin?
Yes.  You can place your unit in our Rental Pool or sell, lease or rent the unit yourself.  Owners will continue to pay monthly Maintenance Fees but this cost is included in the rental fee. Marketing professionals will be handling the rentals and sales.  An elaborate marketing system has been developed including the use of Realtors, Travel Agents, Direct Internets sales, listing with charter marketing firms, direct mail/e-mail, TV and radio infomercials.

Appreciation of Condo Values:  The price you are paying is an introduction price.  Appreciation of 10% per year initially is expected.  Market price once the vessel is cruising is expected to be much higher.  Some investors are expecting a doubling of their investment in the first two years.. 

Leasing / renting your Unit:  Cruise Vacations including food generally cost $100 per passenger per day.  Ignoring interest and other costs, 27 rentals per year will pay for your unit in 4 years.

Resale of your stateroom and undivided interest in the ship to others.  You will realize current values at the time of sale plus income you have received during your ownership, less your “adjusted basis” = acquisition cost, plus interest, maintenance and selling expense.

If you place it in our Rental Pool we will take care of all details and direct deposit income to your banks account using USPS (United States Postal Service) ePay service.  Using e-mail we can transfer funds directly to your bank account electronically.  We will handle all details – marketing, accounting, greeting and indoctrination of the lessee, welcome gift – and transfer of your income to your bank account for a commission less than market.

Trade-it on other vessels to be added to the fleet – the World Renaissance or Paul Gauguin.

(Note:  These estimates of value and income potential are the Writers and may bear little resemblance to actual performance)

Q.  I am concerned about rental income for our cabin.  It is a financial stretch for us and very important to realize as much income as possible.  Are there any guarantees?
We take the marketing obligation very seriously.  We have 5 people who will be directly involved and many others on a commission basis.  The marketing program is developed by professionals and with years of cruise ship marketing experience  It is now working for residence sales and bringing in leads every day.  It will be a combination of direct solicitation, e-mail, 4 web sites, periodical advertising, special promotions, press releases, travel agencies, ebaY, Google and on-line brokerage.  We will use it as a method to sell Interval Vacations where they purchase a week and 'trade-up.'  Our on-line offerings will be sent to a e-mail list of hundreds now and the list will grow to thousands.  When we are within 60 and 30 days the ads change to an auction format.  Unfortunately there are no guarantees.  The earlier you place your stateroom weeks in the rental pool the better your opportunities.  Our procedures include a "first in - first out." plan.  Once rented it goes to the bottom of the list so all owners will have exposure.  There is no priority for anyone including Developers.

Q. What taxes or fees will we have to pay?
Ports usually charge a disembarkment fee similar to airport use charges.  They are usually less than airport use charges.  Expect about $10 per person at most ports.  If you stay aboard you will not need to pay port departure taxes.

Q. I like the residence cruise ship idea and imagine it has investment potential.  Are there other opportunities other than buying a unit on speculation?
We have had other expressions of interest and have a few discussions.  Once we are sailing we propose an Investment Group made up of residents ont he ship that will meet periodically and discuss opportunities.  The concept most favored is a REIT (Real Estate Investment Trust).  A General Partner does the "heavy lifting" and members can purchase shares sharing the risks and rewards.  Members will propose ideas and assist in their development.  Investment opportunities can include stocks, bonds, IPO's (initial public offerings), distressed staterooms, real estate opportunities in the areas we visit, purchase and lease of water sports equipment for the Association, personal lending, financing stateroom acquisitions, waterfront property in the Caribbean or Mediterranean that could be lease-optioned and leased to the Association and other cruise lines. Most of us enjoy the exploration, investigations and discussions.

ITINERARY

Q. I would like more information about the dates and locations.
The itinerary is developed from recommendations of the Owners / Members to the Board of Directors.  An itinerary committee will develop a logical itinerary based on your wishes but also in consideration of safety of the vessel, political climate, logistic information such as refueling, access and port charges.

Q. Is the itinerary fixed or can it be modified?   
Our itinerary is planned for a year in advance.  Input will be solicited from cabin owners for determination of future itineraries.

Q. Is there any way of 'trying it out'?  Or do you just buy sight unseen?
Yes, you may try it out.  In fact, please do.  We urge anyone considering buying a cabin to plan to visit the ship to select a cabin.  Information about this will be available in Newsletters and by contacting us for updates.. 

PETS

Q. Can I have a Pet on the ship?
The short answer is No.  The long answer - Pets will be permitted if approved or prescribed for health or security reasons.  (Apply to the Risk Management committee who will study the situation and recommend to the Board)  Dangerous and typically aggressive breeds will not be approved.  There may be a pet fee or deposit.  Owners will be responsible for the actions of your pet including financial responsibility and must insure that they do not bother other passengers or cabin owners with noise, biting, animal waste, or other problems.  This is a very close environment and we can’t avoid your pet.  Be prepared for the possibility of being asked to remove it.  Also, being confined to a ship and cooped of in a small cabin is not fair to the pet. 

Pet owners should be aware that many countries we visit will not permit pets to enter the country without quarantine, vet exam, and fees.  We suggest that you visit your veterinarian, obtain shots and discuss your plans to preempt problems.

Q. Can I take my motorcycle or Moped aboard the ship?
Yes, you can.  Cargo Space is in short supply and there may be a cost.  Fire and safety concerns will guide decisions. 

Q. What happens if I change my mind?
We ask for a non-binding Letter of Intent (LOI) to reserve a unit and/or a Purchase Options and Contract for Purchase.  This gives you priority for stateroom selection in the order they are received.  These are non-binding subject to inspection of the ship and available staterooms and acceptance or rejection.  After you choose and pay for your stateroom You can take possession immediately.  Keep in mind that the number of staterooms is limited and when sold there will be no more on this ship, except for resale’s.  You can limit your investment to a 50% or 25% share.  You can rent available units while you get used to the idea.

Once you buy a unit, you have the usual rights of any real property owner – the right to sell it.  Cruise Ship Condo’s will be selling units and will list and sell yours for a normal real estate commission.  We will also assist you to transfer your interest to other ships that will be available later without a fee.  The Declarants have agreed to permit you to trade your equity on other ships we may acquire.

DOCUMENTS REQUIRED

Q. What travel documents will I need?
You must always have proof of citizenship.  A passport is always the best source of identification and is required by some countries. Some coutries will accept a certified copy of your Birth certificate and a drivers license with photo or other government issued photo Id.  The Birth Certificate without photo Id does not identify you as the bearer.  It could be carried by anyone.  The Department of State is the best source of information for access and security information.  Your Airline, Travel Agent and the Ships Agent or Purser are also good sources.

q. is an international drivers license required?
You will need to meet the visitors licensing requirements of the area you are visiting.  Most accept a current and valid license from the U.S. Canada and Euro countries.  There are others who insist that an international drivers license is important.  We recommend the International Drivers License.  It is available from most licensing agencies in your home state or province or AAA or CAA.

DISPUTE RESOLUTION

Q. Is there a process to resolve disputes?
We will make every effort to adhere to all the terms and stipulations as defined in this brochure and our contracts.  Some misunderstandings or circumstances beyond our control may arise. 

In the event that you are dissatisfied with our performance at any time, we prefer to settle the matter internally.  If you cannot find satisfaction with our internal resolution process, we will submit the matter to binding arbitration from an external and independent mediator. 

All buyers sign an agreement to submit disputes for resolution by arbitration as provided under the U.S. Federal Arbitration Act, United States Code, Title 9. 

A Disputed Resolution Committee of your Board of Directors composed of fellow owners and presided over by an elected chairman or the master of the vessel is a good first step.  The writer is a member of such a committee that works well.  There have been no appeals from decisions during my term on the committee.  This option will be available for all conflicting parties who are willing to sign a waiver and accept the judgment of the ship's court. 

A good preemptive measure is a good Rules and Regulations document covering common anticipated areas of conflict with appropriate fines for noncompliance.  The most commons concerns will be noise, housekeeping, pets and behavior.

The world today is becoming increasingly litigious.  Lawyers and the legal process are expensive and usually take many months to resolve.  The hidden costs are passed on to consumers.  We prefer to save us all the grief and expense of litigation for all of us.  In order for us to offer such stunningly attractive prices; you agree, in writing, to compulsory, binding arbitration in the event of a dispute.  

For more information, contact the Society of Maritime Arbitrators, Inc - Information info@smany.org

SOCIETY OF MARITIME ARBITRATORS, INC.
14 Wall Street - Suite 8A-15 - New York, NY 10005-2101

FINANCIAL MATTERS

THE SHIP

Q. What is the life expectancy of the ship?
Count on a minimum of 20 years and a maximum of 50 years. A well maintained ship can theoretically last forever.  At some point the maintenance costs exceed the cost of replacement and utility and efficiency are no longer competitive with newer vessels.  Engines and generators wear out and can be replaced or rebuilt.  Vessels will be inspected and surveyed, an inventory taken and an assessment of current licensing, inspections, maintenance, SOLAS and US future requirements and the forecast present and future cost of these and optional items.  An annual two week maintenance period is scheduled to take care of items that aren’t handled during the active cruise season. 

Q. Who will be running the Ship on a daily basis?
Take a look at the Declarations, and Committees web pages. 

• The Captain has responsibility for the safety, security, discipline and operations of the ship through his officers, deck crew, engine room crew and hotel staff.

• General Management issues will be managed by your Committees and Board of Directors.  This includes Budget, Itinerary Risk Management, entertainment, concessions, food, beverage and service recommendations.

• Cruise Ship Condos has continuing responsibly for Technical Management and Financial Oversight.  We will assure that the ship remains in compliance with SOLAS, USCG, US Health Department, Marpol, ISP, ABS and other governing authorities.  We will assure that there are funds available to take care of reoccurring and special financial needs for the ship through the Reserve Account.  Our authority will include development and start-up activities.  The authority and responsibilities will change when the WHC Board is prepared to assume them.

Q. How do you refuel the ship?
We plan our replenishment of fuel, oil, lubricants, water, waste removal, food and supplies for the hotel and dining room based on cost and convenience.  Fuel and food costs vary widely between ports.

Q. What is the Ships Registry?
The ship will be "flagged" in a country where costs and benefits are appropriate for our use.  The ship and World Yacht Club will most likely be registered in Panama.  Although the ownership will most likely be primarily U.S., the Jones Act determines that we may land at U.S. ports but cannot go from one U.S. port and another without first touching at a foreign port.

STATEROOMS AND SUITES

Q    We want to have a custom interior.  Is this possible?Yes, but there are some restrictions.  All units must meet minimum standards of design, housekeeping, and equipment.  When rented or for resale they must all be comparable.  There will be some latitude of interior finish, carpet, wall covering, furnishings and equipment.  Your Architectural committee and technical staff will make the final decisions.  We must be concerned with ship stability, safety, ease of maintenance and compliance with applicable SOLAS, USCG and Health Department requirements.  The staterooms will be in functional condition when your purchasing.  We will have redecorating and furnishing options available and plan to have FF&E (furniture, fixtures, equipment and supplies and staff available for assistance and installation.

Q   How would we go about inspecting and selecting a unit?  You are invited to visit the ship at any time.  Please make an appointment to make certain that someone appropriate is insure effectiveness of your visit.  During the introductory period you can apply the cost of a weeks vacation, not including food, on an interval vacation (timeshare) or residence, either full-time or a fractional interest.  You can trade the cost of your residence or timeshare to a stateroom on another ship, when that is available.   You can also enter into a purchase agreement that is non-binding beyond the initial trial period.  Simply contact us with your intentions and make no further payments.  The ship will normally be at a port with a major airport nearby every Sunday. 

Q   What is a suite?
Merriam Webster says a suite is "a group of rooms used as a single living unit."  We have one prospect who wants 3,000 sf and others who want suites and internet or computer business space.   We hope to add suites on the boat deck.  Most of the original units were 104 sf.  They can be put together in any combination.  Two are combined into a Premium 208 sf unit.  If you leave the partition and put a door in it you have a suite, and some are doing that.  Two of those together for a 416 sf suite.  Balconies can be added on some units.  
 

Q   How many full-time shares do you have available?  
We are planning for a ship of 350 or more staterooms.  We may have a smaller ship during the 'start-up' phase.
 

Q.  On the price list you mention "rack rate pp/do", what does the "do" stand for?
The rack rate is the normal rate for a stateroom.  We will have special offers during the introductory and discounts for internet reservations and to fill cabins close to cruise dates.  "pp" means the charge is per person.  "do" means double occupancy.  For instance, two people sharing a cabin might each pay $800 for a weeks cruise for each person, or a total of $1,600.  There may be a special price for a third person - say 75%.  A single in a double unit might be charged 75% of the total for two persons.    If the maintenance fee is $400 pp/do the total per stateroom is $800

Q. How are maintenance fees paid?
Residents pay maintenance dues monthly in advance. Two months are paid in advance when first occupying the ship to assist with working capital.  Fractional interests or 25%, or less pay maintenance fees a year in advance.   

Q.  How do you charge for food? 
A deposit equal to one months worth of food and other anticipated expenses will be paid a month in advance.  You will be notified when the deposit is depleted and subsequent deposits are required.

Q.  If we wanted guests to visit and stay with us, would they be charged full rate?
If they are staying in your residence for two weeks there would be no charge for lodging. You will be responsible for food and charges.  When necessary payments can be made at the time of purchase. 

Q.  How big are the suites? 
They can be of any size and are usually combinations of staterooms, We plan to  remodel some of the former crews quarters and public areas we will not need in resident configuration.  We have customers who want suites or apartments up to 3,000 sf.  Others want a stateroom with an adjacent space for a sitting room.  Most of the deluxe cabins will be approximately 130 sf Two units combined into a nice suite with sitting room with a hide-a-bed or Murphy bed.  With a "lockout" door the adjacent room can be closed off for guests or rented separately from the primary stateroom. or used for business use.  

Q. We would like to purchase a week or two for vacations.  How do we handle that?
WE have created a situation where you can purchase a  "fractional interest."  A 4% interest is 2 weeks a year.  This will also give you exchange privileges - in house for any properties we own and with RCI, Interval International, Ice Gallery, or other oportunities at which we are looking. 

Q. Is financing available?
Yes!  Financing is available for full ownership or fractional interests through Financial Service Corporation.  No credit check is required to qualify but a credit report or other report may be used to determine paying habits and charactor evaluation.

Q. Will you go to any dangerous places.
We take several precautions.  The recommendations of the you for destinations must be approved by the Itinerary Committee, Board of Directors, the Master of the Vessel (Captain) and the U.S. Department of State's Consular Information Program who provide Consular Information Sheets, Travel Warnings, and Public Announcements. Consular Information Sheets exist for all countries and include information on entry requirements, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Consular Information Sheets and Travel Warnings also are available on the Consular Affairs Internet home page: http://travel.state.gov. Consular Affairs Tips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad are on the internet and hard copies can be purchased from the Superintendent of Documents, U.S. Government Printing Office, telephone: 202-512-1800; fax 202-512-2250. 

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including  Background Notes; daily press briefings; Country Commercial Guides; directories of key officers of Foreign Service posts and more.

Q.  How is a financial interest in the common areas and voting percentage calculated?
In order to meet the requirements of Fractional Interests Statutes, in the Declaration and define the percentage interest and voting rights of shareholders a calculation template has been developed considering prescribed factors.  These factors are identified and fixed at the time of the initial sale / purchase of shares.  No change is made for historical market price of shares sold.  Each ship will be a Phase.  Each Phase will have Projects to accommodate changes in the number of staterooms resulting from change of use, addition of sports and other equipment and adapted other Projects.  The first ship is Phase I and the initial group of staterooms available for sale is Project I.

• The number, size and list price of dwelling units and number of occupants.

• The value of common areas 

• The value of working capital, reserve accounts, inventory, spares, furniture fixtures and equipment.

The sharing of Maintenance Fees will follow a similar analysis based on the number of residents sharing the ship as as amended by a consideration for the relative values of the dwelling units.