Why would you want to place your yacht with us rather than with another reputable charter company??

"A professional organisation with a proven history of success and a unique perspective on Caribbean business operations".

Barefoot Yacht Charters and its predecessor, Bimini Yachts, has been successfully managing and chartering yachts since 1984. The company is the only locally-owned one in the Windward Islands and, in the Caribbean working environment, which can be challenging, this gives us a unique and unusual insight that other companies, no matter how experienced, simply cannot match.

Whether dealing with Customs, Immigration or Government, or with local contractors and suppliers, we know who to go to and we know how to get things done efficiently and cost-effectively. This has resulted in significant financial savings for our yacht owners. We even enjoy a duty-free status on the importation of our marine spares.

"Reputable and solvent"

Our custom-built charter yacht marina is owned by ourselves (most charter companies lease their premises) and offers all of the facilities normally associated with so-called "premium companies" - docks and moorings, workshops, St Vincent's only professional sail repair loft, offices, a laundromat, restaurant and bar, even an Internet café. We're also the only Caribbean charter company with our own airline (SVG Air - 9 aircraft).

"Global marketing and a high repeat customer ratio"

Barefoot Yacht Charters enjoys one of the highest repeat customer ratios in the industry. More than 40% of our customers each year have sailed with us before. Some of our customers have been sailing with us for more than 17 years. Our internationally-acclaimed web site, complemented by conventional advertising in high-profile sailing publications world-wide, is reckoned to be one of the best and most successful in the industry.

"Increasing sales - but a controlled fleet size to prevent revenue dilution"

Our charter sales increased by 99% in the period from 1996 to 2004. But our fleet size increased only by 38%. This means that there has been a substantial increase in earnings per individual yacht. It's all very well enjoying a growth in charter sales - but if a company's fleet is also expanding rapidly, revenue dilution means that the only people to gain are the operators of the charter company, not the yacht owners. We have limited our fleet size to 25 yachts. This enables us to offer the high standards of personal service for which we are well known, and to maximise revenues for each individual yacht owner. Small is beautiful. We will not be big.

"Uncompromising maintenance standards"

As yacht owners ourselves, we understand the importance of taking good care of an expensive vessel. We will not compromise our maintenance standards. Our technical team recognises that preventative maintenance is paramount and, for each vessel in our fleet, we develop an individual programme that ensures that the yacht is well maintained and that charter commitments are met. Our full-time professional staff take pride in their work and are consistently complimented by our yacht owners and charter guests.

"Generous owner's use and low fees"

We believe that the primary reason to own a charter yacht should be to enable the owner to enjoy as much sailing as possible in a beautiful cruising area. Under our Optimum Yield programme, a yacht owner is allowed unlimited use of the vessel, and under our Guaranteed Income programme, we allow a generous 6 weeks of use per year. When you use your yacht, your only cost, other than day-to-day running costs such as fuel and food, is the modest cleaning fee.

A Brief Comparison betweem us and "them"

THEM..	AND US!
Probably won't take your yacht unless they sold it to you themselves (and earned a fat commission)	Don't mind where you bought it. If it's a good charter design,less than 8 years old, and in good shape - give us a call
Forget to tell you about realistic depreciation after a few years in charter service	We'll tell you EVERYTHING (which is probably why we don't sell many new yachts)
They're bigger, they're more experienced, they're better than anyone else. Your yacht is going to make lots of money under their management	Oh, really? Well hang on a minute - in that case, why don't they buy the yachts themselves?
Will more than likely kick you out of their programme after 4 or 5 years	If you and your yacht like us, feel free to stay
Limit the owner's use to 3 or 4 weeks a year and probably charge you something for the privilege	Will tailor the programme to allow you as much use as you want. Free.
Will dazzle you with their expert local knowledge. No-one knows the Caribbean quite like they do. They've been around for years and years	Well, except, maybe, for us. We're the only locally-owned and locally-managed charter company in this part of the world
The company's run by accountants, lawyers, corporate business types and eloquent salesmen.	Our company's run by sailors, cruisers, current boat owners and business people with a proven track record

"When we entered into our chartering agreement, you committed to returning the yacht at the end of the agreement in the same condition as you received it except for normal wear. I must say that you exceeded my expectations in this regard. The yacht was in excellent condition when she was turned over to the new owner. It was a pleasure to be associated with you. You have managed to put together a team of competent people who are happy in their work, care about the business and strive for excellence in everything they do. This is no easy task for any business. Thank you, Mary and Seth, for making our association a really positive experience."

Sincerely
Gerry Wattier Owner Beneteau Oceanis 361 "Satori 1" May 2004

Yachts for Charter Management

After more than 20 years in business, Barefoot Yacht Charters is widely acknowledged as the authoritative operator of quality charter yachts in St Vincent and the Grenadines.

The combination of Barefoot's comprehensive maintenance programmes, global marketing and unique personal service enables these yachts to charter for many years, whilst simultaneously generating attractive returns for their owners.

Despite what many other companies may tell you, owning a yacht is rarely a great financial investment (if it was, one might wonder why charter companies don't own the yachts themselves). On the other hand, owning a charter yacht can eliminate most of the costs and headaches associated with traditional yacht ownership, and enable the owner to enjoy generous use of the vessel in an exquisite part of the world and at virtually no cost.

Barefoot Yacht Charters can assist the potential owner in identifying either new yachts or quality, pre-owned charter yachts and offering a charter management programme that offers high income potential and fairly predictable results. We are also flexible - and will work with prospective yacht purchasers to tailor a programme that best suits the need of the individual owner.

Whether you're an existing charter yacht owner looking for a new home for your yacht, or a prospective owner interested in a quality yacht that can pay its way, Barefoot Yacht Charters offers two of the best management programmes in the industry.

1. Optimum Yield Programme - Available for all yachts
   The more the yacht charters, the more the owner can earn.
2. Guaranteed Income Programme - Available for yachts aged 2 years or less
   We guarantee to send the owner a cheque every month and we cover all of the yacht's operating expenses other than insurance. Note that space on this programme is limited.

The following pages provide answers to frequently asked questions. We encourage you to ask questions, to speak with our current yacht owners, to visit our charter base and to meet with your professional tax and financial advisors. Our own professional staff members are also available to help you by telephone, e-mail or personal appointment.

New or Used?

Perhaps the most frequently-asked question by a prospective yacht owner is whether he/she should be buying a new yacht or a pre-owned yacht. There are advantages and disadvantages to both, and we would summarise these as follows:

NEW YACHTS

The principal reasons to consider a new yacht are:

• The financial implications are not of primary importance to you - you're happy that the charter income will greatly offset costs, but you can live with the fact that you're unlikely to make an appreciable profit, especially if you are making note repayments.
• You want the pride of owning something new
• You want the comfort of knowing that your new acquisition and her equipment are covered by a manufacturer's warranty.
• You want your yacht to enjoy a longer charter life (yachts aged 10 or more tend to book less successfully on account of market perception)
• You'd like to benefit from the higher charter rates that new yachts command

The fact is that a new charter yacht will depreciate most during the first 5 years of its life, and this can greatly alter the bottom line from a financial perspective. However, if you are planning on placing a new yacht in charter service for 4 or 5 years so that you can then go cruising yourself, new yacht ownership can make a lot of sense - chartering the yacht will substantially offset your costs, and you will be able to sail your yacht regularly so that by the time you are ready to set off cruising, you will be comfortable with your vessel and familiar with its individual traits.

But don't expect a new yacht in charter service to look as if she's just come off the showroom floor after 5 years of chartering. She will be well maintained and in good condition, but the reality is that charter yachts are always susceptible to the occasional scrape or bump. The yacht is going to be used by other people who may not always take as scrupulous care of your vessel as they would of their own - and you need to be comfortable with this notion.

We'll be very happy to find you a new yacht that best suits your need - but it's important that prospective new yacht owners embark on such a venture with their eyes open and aware of the realities. Always remember that if you have $US 300,000 to invest, there are dozens of other places where you could make a far better financial return.

NOTE:In October 2004, Mr Jean-Claude Billig proudly took delivery of his brand new Jeanneau 40.3, "WINTER'S GATE". By purchasing his yacht through Barefoot Yacht Charters, Mr Billig saved $US 28,711 off the regular retail price of the yacht and its equipment.

USED YACHTS

The financial returns on investment for pre-owned yachts are higher than for new yachts. For starters, your initial investment might be as much as half the cost of purchasing a new yacht - whereas charter rates for an older yacht are considerably more than half the charter rates for new yachts. So your note repayments are going to be lower and your return on investment greater.

Further, the depreciation on a pre-owned yacht will be much less than that on a new yacht, something to take into account for when you eventually decide to re-sell the yacht.

On the other hand, pre-owned yachts which have chartered heavily are likely to incur higher maintenance costs than new yachts, and are also likely to require earlier replacement of major items such as sails.

There are a large number of good quality, well-priced, pre-owned yachts on the market, and many of them are available for sale from reputable "primary" charter companies who have taken good care of them. There are often "deals" to be found and we'll be happy to help you find them.

Questions and Answers

What types of yacht will be considered for charter management?

Yachts that are less than 8 years old, which are in good condition, which are equipped with the required inventory and which are of a well-known (and thus marketable) design such as Jeanneau, Beneteau, C & C, CYC, Hunter, Bavaria, Dufour, Moody and Fountaine Pajot. We will consider both monohulls and catamarans in the 32 to 56-foot size range. We are familiar with most quality charter yachts currently on the market and will be happy to assist you in finding the right vessel at the right price. Note that if you are purchasing a pre-owned yacht in service with another charter company, we may be able to save you money by negotiating the purchase price, acquiring a brokerage commission, and passing part of that commission back to you.

What additional equipment will I need to purchase?

Yachts entering our fleet must be equipped with the complete Barefoot inventory which is shown on this site. Most existing Caribbean charter yachts are well equipped, often requiring purchase only of a dinghy, an outboard motor and a few other minor items. When considering purchase of a used charter yacht for placement in our fleet, we will be pleased to provide you with an estimate of cost of any additional equipment required.

Is financing available?

Barefoot Yacht Charters works with major USA-based finance companies which can offer financing at attractive interest rates, with flexible terms and with as little as a 20% down payment. We do not offer financing from St Vincent because interest rates are prohibitive.

Where should my yacht be registered?

Wherever you choose. Most owners have their yachts registered in their country of residence. Registration in the United States Virgin Islands is remarkably quick and inexpensive. There are no requirements in St Vincent and the Grenadines for yachts to be locally registered.

Are there any local taxes to pay when chartering my yacht?

There's a $200 per annum charter licence but no other taxes. Cruising Permits are payable by charter guests.

How and when do I get paid?

At the end of each month, we will send you a complete statement of account detailing all charter operations and maintenance carried out on your yacht. For yachts on our Guaranteed Income programme, the statement will be accompanied by a cheque. For yachts on our Optimum Yield programme, if there is a credit on the account, the statement will be accompanied by a cheque. Payment is usually made by cheque drawn on a USA bank account but may also be made by wire transfer to any account specified by you.

How often can I use my yacht?

Owners of yachts on our Guaranteed Income programme may use their yacht for 6 weeks per year. Owners of yachts on our Optimum Yield programme may use their yacht as much as they wish. Clearly we would recommend that you limited your use during the high season (December through April) as this is when the majority of the revenues will be generated. And you cannot use your yacht if it has already been booked for a charter over the period you're looking at.

Can I earn additional income by sending paying guests to charter my yacht?

Yes! We pay all yacht owners a 10% commission for any paying charters that they introduce - and that's in addition to the normal payments to which they are entitled. What's more, we'll pay that 10% commission whether the guests that you introduce charter your own yacht or any other yacht in our fleet.

How much does it cost me to use my yacht?

Only the modest cost of cleaning and turning around the yacht - from $US 200 to $US 300 per period of use, depending on the size of the yacht.

How long can my yacht remain in the charter programme?

The initial contract term is for one year, with automatic renewals from year to year thereafter. We feel that, rather than tying an owner into a long-term contract, this allows flexibility in the event that the owner's long-term plans change. Generally, charter yachts over ten years of age are less successful due to market perception and so at that stage we would recommend that you sold her or continued to enjoy her privately. Our brokerage division will be happy to assist you in the event that you wish to sell. That being said, the yacht pictured above has been in our fleet for 15 years, since she was first launched.

What happens if a charter guest damages the yacht?

All charter guests are required to pay a refundable damage deposit prior to boarding. This damage deposit covers the deductible on the yacht's insurance policy. The costs of any losses of equipment or damage to the yacht are deducted from the damage deposit so there is no financial loss to the owner. Serious damages will be the subject of an insurance claim - our insurance company has an excellent record for settling claims promptly and fairly.

What condition will the yacht be in when returned to me at the end of the management programme?

We will return the yacht to you in as good condition as when it joined our fleet, fair wear and tear excepted. The yacht will be clean, with all systems in working order and with all inventory on board. If you are dissatisfied in any way, we will work with you to rectify the problem.

Tax Information for USA Residents

Any boat can qualify as a second home if it has sleeping, cooking and bathroom facilities. Thus, the interest on indebtedness to acquire the yacht (subject to limitations depending on the level of the debt) can be deducted as mortgage interest. This is allowed even if the yacht is used solely for personal purposes. Note that mortgage interest may be deducted only in respect of two homes, excluding homes used exclusively for rental purposes.

If a yacht owner decides to rent his yacht to defray ownership costs, several scenarios are possible. If the yacht is used entirely for business purposes, all expenses - including depreciation - are allowable, and the owner may be entitled to a tax loss which can be utilised to offset other income.

If the yacht is used for personal purposes for either 14 days per year or for more than 10% of the number of days for which it has been rented at fair market value (whichever is the greater), then the vessel is deemed to be a vacation home - and, generally, vacation home expenses are allowed only to offset vacation home income, the net effect being a wash. Excess expenses are carried forward either until there is sufficient income to permit their utilisation or until the yacht is sold. Due to the depreciation deduction, the sale of the yacht may result in a taxable gain to the seller, something which would be unlikely if the yacht had been used solely for personal purposes.

For US citizens and foreign USA residents, rents received for the use of tangible, personal property are sourced to the country where the property is used or usable. Conversely, if the property is used on waters that are outside the US-recognised jurisdiction of any country, then the income is considered to be derived from "ocean activities" and is sourced according to the residence of the taxpayer.

The distinction between foreign and domestic source income is important for those US taxpayers who claim the foreign tax credit and the foreign earned income exclusion. Additionally, many states have provisions that remove various types of foreign source income from their tax base. The lessor may be subject to tax in the foreign country as well.

We strongly advise that all prospective yacht purchasers consult with their own tax advisors and professionals for additional information.

Yacht Insurance Summary

Barefoot Yacht Charters has, for many years, worked with North Carolina-based Universal Insurance Services and our policies are underwritten by the most reputable firms in the business, such as Lloyds of London, and with full coverage throughout the year, even during the hurricane season.

"Our Group Fleet Insurance Policy (through which we currently insure in excess of 35 vessels and 9 aircraft) offers the widest navigation limits and probably the most competitive premiums in the Caribbean yacht charter industry".

Standard coverage is:

• Property Covered: Hull, machinery, personal effects, navigational equipment
• Navigation Area: The Caribbean Sea, Atlantic Ocean and Gulf of Mexico
• 3rd Party Liability: $US 1 million per incident
• Medical coverage: $US 2,500 per person per incident
• Uninsured Boaters: $US 10,000 per incident
• Deductible: 1% of hull coverage
• Named windstorm deductible: 3% of hull coverage
• Premium: Approximately 2% of hull coverage, depending on age and hull value of the yacht

When you sign up with us, we can arrange for the yacht to be covered within 24 hours.

Income Management Programmes

Optimum Yield Management Programme Highlights

• Owner receives 60% of all gross charter fees
• Owner pays $ 500 per month management, dockage & utilities
• Owner pays cleaning and turn-around fee for each charter - $ 200 per charter for monohulls under 40 feet, $ 300 for all other yachts
• Owner pays for yacht's insurance
• Owner pays for yacht's maintenance
• Owner may use yacht without limit
• Owner receives 10% cash commission for bookings introduced

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Guaranteed Income Management Programme Highlights

• Owner receives a cheque each month equivalent to the guaranteed monthly payment - ranging from $ 450 per month to $ 1,500 per month depending on the size and type of yacht.
• Owner pays for yacht's insurance
• Barefoot pays for management, dockage and utilities
• Barefoot pays for cleaning and turn-around of yacht
• Barefoot pays for yacht's maintenance including annual haul-out
• Owner may use yacht (i) 1 week in the period 06 January through 30 April (ii) 2 weeks in the period 01 through 30 June (iii) 3 weeks in the period 01 August through 31 October (iv) 1 week in the period 05 through 15 December, to a maximum of 6 weeks per year.
• Owner receives 10% cash commission for bookings introduced

Bareboat Equipment List

Our yacht owners write

"Once I became interested in owning a boat in the Caribbean, I concluded that it was absolutely necessary to place it under the care and management of people I could trust. I did not want to become involved in something that would cause me endless worry. Barefoot and I communicated over the Internet for about a year, and during that time, they patiently answered every single question in such a way that I understood all the risks. I was most impressed with the logical business approach Barefoot practised in the management of charter yachts."

"When it came time to buy, I was so comfortable with Barefoot that I asked them to act as my agent in the purchase. Through them, I effectively purchased the boat over the Internet, sight unseen! When I finally did see the boat several weeks after the deal closed, it was a real bonus to find her in even better condition than I had expected. Barefoot's Chief Engineer and his team of professionals put the finishing touches on all the loose ends, and I must admit, it was quite a feeling to set foot on her for the first time."

"Since then, Barefoot has taken expert care of every aspect of ongoing maintenance. From time to time, I see comments from charter guests who have sailed her and had an absolutely wonderful time - that's when I know for sure that I have chosen the right charter company."

"When I sailed my yacht some 10 months after purchasing her, I found the yacht perfectly prepared and can honestly say that she was in better shape than when I bought her. I was most impressed by the fact that all preparations had been completed prior to our arrival and there was not a single thing left to do on the morning we set out. That goes a long way towards building a reputation as a first-class service company. The boat was absolutely spotless inside."

"I can sum up my experience with Barefoot in one word - Trust."

Rob Charuk, Owner, Sunsail Oceanis 400 "The Usual Suspects"

"We have a Hunter Legend 43 which we bought in Miami and completely refitted before we sailed her down to Barbados and, ultimately, to Barefoot Yacht Charters at Blue Lagoon. We delivered her to Barefoot in pristine condition - and I am happy to say that, today, she is as good as when we delivered her - if not better. The folks at Barefoot are quite serious about their business and understand the need to keep their "equipment" in good repair."

"Barefoot's Chief Engineer, is very knowledgeable, takes pride in his work, and is a good sailor to boot - which I find both refreshing and reassuring. He understands sailing, and the need to keep all equipment in good operational order."

"We have found that our expenditures for the yacht are within expectations. Of course, having a boat in charter means that she works more, which translates into perhaps higher costs for some - but our experience has not been thus. We have noted that when a charterer caused some minor damage or broke something, Barefoot stepped right up and made the repairs quickly and correctly - and assumed responsibility for them. If a part or component failed (which happens), they made the repair and treated us fairly for the cost. I can also tell you that if something needed discussion, they did not hesitate to contact us by e-mail and work with us."

"We began a relationship with Barefoot 5 years ago, as charter clients, and our relationship has grown. We are admittedly biased, but we are also very frank and honest folks and whatever is here is truth and can be relied upon. I tell you this because not so long ago I was researching charter company alternatives. A smaller company like Barefoot can greatly enhance the life of your boat through more time to pay attention to care and good maintenance as this will serve you both."

"Successful charter companies rely on repeat customers and I have met many of these folks on the front porch at Barefoot. Whoever you go with, just be sure that you feel comfortable with the people because they will be looking after your pride and joy. My boat is my friend - and I am pleased to have her with Barefoot as I feel that they somehow share my obsession."

Irwin Gaffin, Owner, Hunter 43 "Perseverance"