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Suenos Azules Marine Surveying and Consulting

REPORT OF MARINE SURVEY

Vessel Damage Inspection

of the sailing vessel

"Cat Man Do"

1993 Lagoon 37 TPI

the sailing vessel "Cat Man Do" 1993 Lagoon 37 TPI PREPARED EXCLUSIVELY FOR: Peter Jackson and

PREPARED EXCLUSIVELY FOR:

Peter Jackson and Carly Jackson 106 Pinewood Court Jupiter, Florida 33458

CONDUCTED BY:

Capt. John Banister, SA on June 3, 2011

Suenos Azules Marine Surveying and Consulting 9910 Alternate A1A, Suite 702-214 Palm Beach Gardens, Florida 33410 (561) 255-4139

SURVEY REPORT TABLE OF CONTENTS

Major Systems Surveyed

Page No.

INTRODUCTION

3

DEFINITION OF TERMS

4

GENERAL INFORMATION (SHORT FORM)

5

GENERAL DAMAGE INFORMATION

6

HULL INSPECTION

10

LOSS CONCLUSION

13

REPAIR ESTIMATE

14

WITNESS STATEMENT

17

APPRAISAL VALUE / DAMAGE CLAIM CERTIFICATION

19

INTRODUCTION

REPORT INTRODUCTION COMMENTS:

At the request of Mr. Peter Jackson, the owner of the vessel "Cat Man Do," a 1993 37 foot Lagoon 37 TPI Sailing Catamaran, I agreed to conduct a damage claim hull inspection. I arrived at the vessel's location on June 3, 2011 at 10:18 AM and met with the current owner of the vessel, Mr. Peter Jackson (who in this survey will be referred to as "the vessel's owner") and his wife, Carly Jackson. The vessel was first sighted in the water at the Gold Coast Boat Yard located at 101 Bay Avenue, Palm Beach, Florida 33480. The survey was conducted from 11:07 AM - 2:55 PM.

The weather on the day of the survey was sunny, warm, and dry with partly cloudy skies. Moisture readings were taken of the vessel with a calibrated Model GRP 33 Marine Moisture Meter. Hull thickness readings were taken of the hull and keels with a calibrated Positector UTG Ultrasonic Thickness Gauge.

The scope of this survey pertained to stress damage to the hull and keels only. The vessel was hauled out of the water while I was present on the day of the survey and hung in the travel lift sling for approximately one hour before being placed on blocks and stands in the boat yard. Vessel documentation revealed that Mr. Jackson and his wife were the current owners of the vessel. Mr. Jackson and his wife were on board the vessel and available on the day of the survey. Also present in the first hour of the survey was Michael Franklin from "The Yacht Keeper" who was there to inspect and photograph the vessel for the purposes of making an estimate for repairs on the stressed areas of the hull that are mentioned in this report.

During a vessel's survey the mandatory standards promulgated by the United States Coast Guard (USCG), under the authority of title 46 United States Code (USC), Title 33, and Title 46, Code of Federal Regulations (CFR), and the voluntary standards and recommended practices developed by the American Boat and Yacht Council (ABYC), and the National Fire Protection Association (NFPA) have been used as guidelines in the conduct of this survey. Findings in this report reflect conditions observed at the time of survey.

report reflect conditions observed at the time of survey. Surveyed for: Peter Jackson and Carly Jackson

DEFINITION OF TERMS

The following terms and words have the following meanings as used in this report of survey:

APPEARS - Indicates that a very close inspection of the particular system, component, or item was not possible due to constraints imposed upon the surveyor (e.g. no power available, inability to remove panels, or requirements not to conduct destructive tests).

FIT FOR INTENDED SERVICE - Service for which is intended by Survey Purchaser (present or prospective owner).

ADEQUATE - Sufficient for a specific requirement.

POWERS UP - Power was applied only. This does not refer to the operation of any system or component unless specifically indicated.

EXCELLENT CONDITION - New or like new.

GOOD CONDITION - Nearly new, with only minor cosmetic or structural discrepancies noted.

AVERAGE CONDITION - Denotes that the system, component, or item is functional as is with minor repairs.

POOR CONDITION - Unusable as is. Requires the replacement of a system for the component or item to be considered functional.

USE OF *- Use of * in the body of this report will indicate that a footnote may be listed at the bottom of the page or a finding will be listed in the "Findings and Recommendations" section pertaining to the * items or the use of the text colors red, green, and blue.

GENERAL INFORMATION (Short Form)

FILE NUMBER: 11-000121 SURVEY PREPARED FOR: Mr. Peter Jackson

NAME OF VESSEL: "Cat Man Do" TYPE OF SURVEY: Damage Claim Survey (hull inspection) OVERALL VESSEL RATING: AVERAGE ESTIMATED MARKET VALUE: $122,345.00 ESTIMATED REPLACEMENT COST: $246,147.00 YEAR/MAKE/MODEL OF VESSEL: 1993 Lagoon 37 TPI BUILDER: Tillotson-Pearson Incorporated, Rhode Island YEAR BUILT: 1993 MAKE OF VESSEL: TPI MODEL OF VESSEL: Lagoon 37 HULL IDENTIFICATION NUMBER: TSPL3728B893 OFFICIAL NUMBER: 1167707 HAILING PORT: Jupiter, Florida STATE VALIDATION STICKER: N/A STATE REGISTRATION NUMBER: N/A OWNER NAME: Peter Jackson and Carly Jackson OWNER'S ADDRESS: 106 Pinewood Court, Jupiter, Florida 33458 PLACE OF SURVEY: 101 Bay Avenue, Palm Beach, Florida 33480 DATE/TIME OF SURVEY: June 3, 2011 11:07 am to 2:55 pm HULL MATERIAL: Fiberglass HULL TYPE: Displacement LENGTH OVER ALL: 36'9" BEAM: 20'2"

DEPTH: 6'6" DRAFT: 4'0" DISPLACEMENT: 11,883 lbs. PROPULSION SYSTEM: Two Perkins Perama-M20, 18 horsepower engines FUEL TYPE: Diesel FUEL CAPACITY: 52 Gallons

AC

POWER: 120 Volts

DC

POWER: 12 Volts

FRESH WATER CAPACITY: 100 Gallons HOLDING TANK: 20 Gallons INTENDED USE: Recreational INTENDED CRUISING AREA: Atlantic waters

GENERAL DAMAGE INFORMATION

SCOPE OF SURVEY

Purpose of survey:

Survey attended by:

Vessel surveyed at:

How survey conducted:

Other comments:

VESSEL INFORMATION

To identify stress related damage on the vessel's hull and keel at the vessel owner's request. Capt. John Banister, SA, Mike Franklin, Peter Jackson, and Carly Jackson. Gold Coast Boat Yard, 101 Bay Avenue, Palm Beach, Florida 33480. The vessel was surveyed both while afloat and while hauled out of the water. The attending surveyor is a member of SAMS (Society of Accredited Marine Surveyors), ABYC (American Boat and Yacht Council), IAMI (International Association of Marine Investigators), and the NFPA (National Fire and Protection Association). The surveyor is also ABYC Standards Accredited and is a U.S. Coast Guard Licensed Master Captain with towing and sailing endorsements.

Vessel Yr/Make/Model:

1993 Lagoon 37 TPI.

The vessel was put together by a series of three molds. One mold for the keels,

Vessel description:

The 1993 Lagoon 37 TPI is a fractional sloop rigged sailing catamaran. The

Vessel name:

catamaran was designed by Marc Van Peteghem and Vincent Lauriot-Prevost and was built by Tillotson-Person in Rhode Island on a joint venture with Jeanneau Yachts of France. The 1994 Lagoon 37 TPI was a catamaran that was designed as a downsized version of the original 1991 Lagoon 42 TPI catamaran and was intended for extended cruising by private owners and charters. The vessel was constructed of baltek end-grain balsa wood coring sandwiched between triaxial layered FRP (fiber reinforced plastic). The glass fiber was hand laid with vinylester resin and protected by a thin outer layer of gelcoat.

another for the lower hull and bridge deck, and another for the cabin top and decks. The vessel's hull to deck joint was an internal (or inward) flanged joint near the gunnel of the vessel and was held together by a chemical bonding agent. Reinforcement was provided by stainless steel fasteners at the hull to deck joint at stanchion bases, horn cleat bases, and other main deck hardware. The main mast of the vessel was deck stepped at the cabin top onto a stainless steel compression post and was held in place by the vessel's standing rigging. The forward head stay was held in place by an aluminum cross member that was secured in place by fasteners at the inboard sections of the port and starboard bows. The vessel was powered by two inboard Perkins model Perama-M20, 18 horsepower, three cylinder diesel engines and turned on a twin rudder steering system powered by a chain and cable pulley system. The vessel's interior was a contemporary designed accommodation space with teak decks and adequate overhead spacing. This vessel was a "galley down" design where the galley was built into the port side hull. The owner's suite was on the port side of the vessel with two other berthing compartments in the fore and aft sections of the starboard side hull. The vessel was well lit and well ventilated throughout the accommodation spaces and included two escape hatches on the inboard sides of the two hulls with underside stainless steel grab rails. "Cat Man Do"

Hailing port:

Jupiter, Florida.

Hull ID number:

Hull ID number: TSPL3728B893. R e g i s t e r e d o w

TSPL3728B893.

Registered owner:

Peter Jackson and Carly Jackson.

Manufacturer/Builder:

Tillotson-Pearson Incorporated, Rhode Island.

Year built:

1993.

U.S.C.G. Official Documentation No:

1167707.

Propulsion System:

Two inboard engines sighted in the port and starboard aft hulls.

Engine Make / Model:

Two "Perkins" brand "Perama-M20" model, 18 horsepower, three cylinder diesel

Engine(s) hours:

engines. Approximately 7000 hours.

Hull Material:

FRP over a balsa wood core.

L.O.A.

36'9"

Beam:

20'2"

Draft:

4'0"

Displacement:

11,883 lbs.

VESSEL PRE-DAMAGE CONDITION & VALUE

Condition rating:

Average condition.

Estimated fair market value:

$122,345.00.

Estimated replacement cost:

$246,147.00.

NOTE:

Estimated fair market value was determined by cross referencing data from Soldboats.com, BUC, NADA, Yachtworld.com, and other brokerage listings or local dealers. Adjustments are then made for condition or equipment as necessary. The fair market value is for the vessel in its pre-damage condition prior to any other repairs or maintenance.

Estimated replacement cost was determined using information obtained from BUC, NADA, ABOS or local dealer prices using the same or similar make and model with similar equipment options.

The overall vessel condition and value was further based on a general inspection of

the vessel and installed components during the damage inspection.

CIRCUMSTANCES OF LOSS

Incident Report:

damage inspection. CIRCUMSTANCES OF LOSS Incident Report: NOTE: The scope of this survey report pertains only

NOTE: The scope of this survey report pertains only to the stress related damage on the port and starboard hull bottom and keels of this vessel. All other unrelated findings of the vessel, past or present are not a part of this survey and will not be mentioned here.

On June 3, 2011 at 10:50 AM, I met with the owner of the vessel, Mr. Peter Jackson at the Gold Coast Boat Yard in Palm Beach, Florida pertaining to the port keel and bottom damage on his vessel. Mr. Jackson stated that on April 19, 2011 his vessel, "Cat Man Do," (a 37 foot Lagoon TPI Sailing Catamaran) arrived at the Gold Coast Boat Yard in Palm Beach, Florida for a haul out for routine maintenance.

Mr. Jackson said during this haul out he witnessed and personally supervised the vessel being blocked. Mr. Jackson said he wanted to be sure the vessel was even and flat on the keels with supporting stands on the fore and aft sections of the vessel on both hulls to ensure the weight of the vessel was distributed evenly. Mr. Jackson said that on April 25, 2011 he received a call from Mr. Reggie Lopez, the General Manager at the Gold Coast Boat yard who told Mr. Jackson that his vessel had excess movement in the rudder bearings and that they would have to be removed from the vessel and checked. Mr. Jackson said on April 26, 2011 he arrived early at the Gold Coast Boat Yard. Mr. Jackson said on this date the vessel was lifted up by the travel lift and moved to another section of the boat yard. Mr. Jackson said the same men that moved the vessel on April 19, 2011 were the same men that moved the vessel on April 26, 2011.

Mr. Jackson said when he returned to the vessel after it was re-blocked on April 26, 2011 he noticed the vessel was not flat, but angled upwards at the bow. Mr. Jackson said the vessel appeared to be resting on the aft end of the keels, but still supported by the fore and aft jack stands on both hulls. Mr. Jackson said Mr. Lopez noticed the port keel was cracked in the aft section of the keel and pointed it out to Mr. Jackson. Mr. Jackson told Mr. Lopez to have their fiberglass technician look at the damage and to get back to him. Mr. Jackson said that photographs were taken by the staff at the Gold Coast Boat Yard and sent to him by Mr. Lopez via email on April 29, 2011 of some of the work being done to the aft end of the keel and the hull areas just above the keel. Mr. Jackson said he was told by Mr. Lopez on April 26, 2011 that he would make the vessel level again after it was noticed by Mr. Jackson that the vessel was at an upwards angle at the bow. Mr. Jackson stated the next day (April 27, 2011) he received an email from Mr. Lopez that said the vessel was lifted up so the fiberglass technician could work on the keel and hull and that

the vessel was once again leveled on blocks. Mr. Jackson said Mr. Lopez also explained in this email that it was policy at the Gold Coast Boat Yard to block all vessels at an upwards angle at the bow to allow for rain water drainage to the stern. Mr. Jackson explained to me that on his vessel the drains are in the forward section of the vessel and having the vessel on a upward angle would just collect hundreds of extra pounds of rain water into the stern of the vessel.

Mr. Jackson stated the vessel was launched back into the water on May 6, 2011, but prior to launch he noticed the bend in the port keel and circular marks in the bottom paint on the fore and aft sections of the hull where the jack stands supported the vessel. Mr. Jackson said the fiberglass technician (identified as Chris Smith, an employee of the Gold Coast Boat Yard) said he noticed the inboard bend in the port keel and said that this area would need to be replaced by the next haul out or it could snap off of the boat if an underwater impact were to occur in the weakened section of the bend in the keel. Mr. Jackson said on May 25, 2011 he made contact with Mr. Lopez via email and he agreed that the vessel would be hauled out free of charge to assess the damage to the keel and hull.

On June 3, 2011 at 3:07 PM I made contact with Mr. Chris Smith at the Gold Coast Boat Yard. Mr. Smith said he conducted the fiberglass work on Mr. Jackson's 37 foot Lagoon Sailing Catamaran in April, 2011. Mr. Smith said the wetted surfaces of the hull were made of paneled balsa wood coring based on what he saw when the hull was ground down past the fiberglass. Mr. Smith said the port keel where it was cracked was simply two sheets of uncored 1/8 inch fiberglass joined together to make the keel. Mr. Smith said he repaired the port side keel but noticed it was slightly bent inboard. Mr. Smith said he did not know the cause as to how it happened, he was just assigned to conduct the repair by his employer. Mr. Smith said he did see the circular marks on the bottom of the hull (fore and aft of the keel), but did not do any intrusive inspections on the circular marks. Mr. Smith said he thought the marks may be superficial from the vessel's weight on the jack stands.

On June 3, 2011 at 12:38 PM, after the vessel was moved to the west side of the boat yard, I witnessed two yard workers (named Ben O'Leary and Cameron Miller) have trouble locating areas on the hull (fore and aft of the keel) of Mr. Jackson's catamaran to set the jack stands. Mr. O'Leary said to me that he could not find solid areas on the port and starboard hulls he felt comfortable to set the jack stands. Mr. O'Leary and Mr. Miller decided to call over a yard manager for advice (identified as Wes Weinstein). After Mr. Weinstein took some soundings with a small hammer for a few minutes, the three of them decided it would be best to bear the weight of the vessel on the fore and aft ends of the bridge deck. This is where I witnessed the jack stands being placed and the weight of the vessel was finally rested at those points. Mr. Jackson arrived a short time later and asked that the vessel be laid flat again, as the vessel was first set in an upwards angle with the weight on the stern of both keels, and four jack stands on the bridge deck. The vessel was re-positioned level again within a few minutes by Mr. O'Leary and Mr. Miller.

PARTICULARS OF LOSS

DAMAGE SIGHTED:

The following major sections describe damages sighted in detail and is organized by vessel system, component or location.

HULL INSPECTION

HULL EXTERIOR

Condition summary:

HULL INSPECTION HULL EXTERIOR Condition summary: Average condition. The vessel had recent bottom paint below the

Average condition. The vessel had recent bottom paint below the wetted surfaces of the hull. The boot top appeared to be in good condition with minor cosmetic nicks and chips in the paint. The exterior of the hull appeared to be sound with no significant signs of stress damage on the topsides of the vessel on both hulls.

HULL BOTTOM

Condition summary:

Condition summary: Average condition. The hull bottom was overall sound with the exception of the port

Average condition. The hull bottom was overall sound with the exception of the port side keel having a slight inboard bend and a total of four circular pattern marks (sighted at the fore and aft sections of both hulls) the vessel's owner stated was from stress marks from the jack stands set on these areas from the Gold Coast Boat Yard from April 26, 2011 - May 6, 2011.

The circular marks ranged in diameter from five and a half inches to seven inches. The circular marks were sighted approximately four feet forward of both keels on the underside of the hull and approximately five feet aft of both keels on the underside of the hulls. The top coatings of bottom paint showed crazing like patterns moving around and outward of these circular marks. After the vessel was lifted out of the water these crazing cracks retained water for over an hour after the rest of the hull had long since dried suggesting water had found its way somewhere beyond the outer layer of bottom paint. Ultrasonic readings were taken of these markings and were compared to the other comparable readings on the hull. The ultrasonic readings were consistent to 1/8 of an inch thick of FRP within reasonable differences to account for resins and imperfections in the fiber cloth. On the port bow section six inches forward of the sounding transducer there was also a four inch crazing like crack that had a rift in the exterior that may be consistent with crazing from stress related damage. This mark was just aft of the port side forward circular mark of the bottom of the hull. Interior inspection of the bottom of hull at the bilge showed no signs of damage in the fiberglass where those areas could be sighted.

The port side keel had a slight inboard bend that could be clearly seen from the aft section of the keel. The keel's dimensions were 10 feet, six inches in length at the head of the keel, four feet at the base of the keel, and two feet, four inches in height. the keel's thickness was 1/2 of an inch at the aft end of the keel and angled outwards to six inches in thickness at the fore end of the keel. The keel was glassed into the hull with no keel bolts or backing hardware sighted from inside of the hull. The interior of the port keel had three voids (consistent with the starboard keel)

that were separated by two thin stronger points spaced evenly in sections that ran perpendicular from the base to the head of the keel. These stronger points in the keel were approximately six inches in width and ran the height of the keel near the middle sections of the keels. It was unknown what the material consisted of that made up these two stronger points in the keels. Ultrasonic readings could not be taken of these thicker areas which suggested the thickness of these strong points were thicker than two inches. The port keel had no obvious stress marks on the interior or exterior sides of the hull or keel. Moisture readings taken from the interior of the hull where the keel was glassed were relatively dry (14% or less). No interior damage in the fiberglass was seen along the bilge where the keel was glassed in. Ultrasonic readings were taken of both keels (for comparison purposes). Ultrasonic readings on the keels were consistent to 1/8 of an inch in thickness of the fiberglass with the exception to readings taken on the bend of the keel on the inboard side of the vessel. Readings there were almost as low as 1/16th of an inch indicating a thinner, weakened area of the inboard side of the port keel. The keel was mostly hollow (with exception to the two thicker perpendicular sections between the voids in the keel) with no coring or ballast detected when sounding the keels. The starboard side keel appeared normal with no signs of damage found there.

Keel pictures: Findings: Recommendations:
Keel pictures:
Findings:
Recommendations:

The port side keel was slightly bent to the inboard side of the hull longitudinally half way up the keel. Four circular marks were sighted on the hull bottoms on both hulls (two on each side; fore and aft of the keel) that was consistent with excess stress placed on these areas. Water was sighted being retained in these circular areas on the bottom of the hull.

Have a qualified technician remove the bottom paint and gelcoat in these areas to further inspect the extent of gelcoat or fiberglass damage that may exist under the bottom paint where the circular crazing exists. The port side keel appears to have suffered from some kind of weight related damage. Have a qualified marine technician take down the outer layers of paint and gelcoat to inspect the fiberglass of the keel for damage, delamination or weak areas. This inspection should include the head of the keel and surrounding hull areas

where the keel was glassed into the hull. Repair, replace, or renew as necessary to restore the original integrity and strength of the hull bottom and keel.

HULL INTERIOR & STRUCTURAL COMPONENTS

Condition summary:

HULL INTERIOR & STRUCTURAL COMPONENTS Condition summary: Good condition. No damage or moisture was sighted on

Good condition. No damage or moisture was sighted on the interior of the hull in the areas of the port and starboard areas of the circular crazing or at the port side keel. Moisture readings were relatively dry (at 14% or less) in these areas. NOTE:

These areas had some limited visibility due to bulkheads and permanent decks. Moisture meter readings can not be taken of the hull on the exterior due to metals in the anti-fouling bottom paint will read as "wet" on a moisture meter.

Ultrasonic test diagram:

"wet" on a moisture meter. Ultrasonic test diagram: LOSS CONCLUSION Surveyed for: Peter Jackson and Carly

LOSS CONCLUSION

LOSS CONCLUSION

CAUSE OF DAMAGES SIGHTED:

The cause of damages that were sighted on this vessel are divided into two sections, the hull bottom and the port keel. The port and starboard hull bottom circular stress marks (both fore and aft) appeared to be created from pressure from boat yard jack stands when the boat was hauled out on land. No abrasion marks were present to suggest the marks were created as the jack stands were turned into place. The port side keel damage was caused by obvious excess pressure applied to the keel by the weight of the vessel. Since the keel was thinnest at the stern (1/2 inch in total thickness at the aft end of the port keel), it would be more vulnerable to bending or breaking from pressure if the vessel was tilted with the bow up and the center of gravity was transferred to the weaker aft side of the keel versus the much thicker mid and fore end of the keel if placed level on the ground. Because of the absence of ballast, coring, or structural support in the aft section of the keel, the keel could not sustain the weight of the vessel with the majority of pressure placed on the aft keels. FRP is plyable and will bend before breaking. Once this occurs it is not possible to restore the original fiberglass back to its original shape and the integrity of the fiberglass is weakened at the area of deformation.

Based on my findings, testing, statements from Mr. Jackson and Mr. Smith, it is my conclusion that the above mentioned stress damage was caused by excess weight from the vessel that was transferred onto the weak weight bearing sections of the hull and aft section of the port keel (most likely when the vessel was angled up at the bow) causing the deformations in the fiberglass and bottom paint that was mentioned above in this survey report.

REPAIR ESTIMATE

DAMAGE REPAIR ESTIMATE

Repair Estimate:

Estimated Reserve:

Repair estimate was written by "The Yacht Keeper" on June 6, 2011 and can be read on the following page. Based on full review of the previous defined damages sighted and the below written estimated cost of repairs, the undersigned surveyor recommends the following reserve allocation if this claim is paid:

Estimated cost of repairs:

$ 13,136.58

Plus 10% cost contingency:

$ 1,313.68

Surveyor services:

$ 693.75

LESS deductible:

$ 0

ESTIMATED RESERVE

$15,144.01

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos Azules Marine Surveying and Consulting, Palm Beach Gardens, Florida

Report file #: 11-000121. Page no: 15 of 19

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos Azules Marine Surveying and Consulting, Palm Beach Gardens, Florida

Report file #: 11-000121. Page no: 16 of 19

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos Azules Marine Surveying and Consulting, Palm Beach Gardens, Florida

Report file #: 11-000121. Page no: 17 of 19

Surveyed for: Peter Jackson and Carly Jackson - 1993 Lagoon 37 TPI Surveyed by: Suenos

APPRAISAL VALUE / DAMAGE CLAIM CERTIFICATION

CLOSING STATEMENT & SIGNATURE:

SUMMARY:

In accordance with the request for a damage claim survey of the vessel “Cat Man Do,” for the purpose of evaluating its present condition and estimating its fair market value and replacement cost on the date of the survey. I herewith submit my assessment based on the preceding report. The vessel's hull, keel, and basic observations of equipment was personally inspected by me (the undersigned) on June 3, 2011. Subject to the correction of the deficiencies listed in the red and green print in this report, the vessel will be considered to be suitable for its intended use. Other deficiencies listed in the blue findings should be attended to in a timely fashion.

SURVEYOR’S CERTIFICATION

I certify that, to the best of my knowledge and belief:

The statements contained in this report are true and correct.

The reported analysis, opinions, and conclusions are limited only by the reported findings, but may also extend to the statements of the owner, contractor, captain, or representative of the vessel. My report may also be limited based upon the conditions that the survey may bring. My findings and conclusions are from my best efforts from professional analysis, opinions, and conclusions which are based upon my experience and training.

I have no present or prospective interest in the vessel that is the subject of this report, and I have no personal interest or bias to the parties involved.

My compensation is not contingent upon the reporting of a predetermined value from any party, nor the direction in value or direction in a value assessment that favors the cause of the client. My compensation is not contingent upon the amount of the value estimate, repair estimate, the attainment of a desired result, or the occurrence of a subsequent event.

I have made a personal inspection of the vessel that is the subject of this report.

This appraisal is submitted in confidence for the exclusive use of Mr. Peter Jackson without prejudice to the rights and / or interests of any other concerned parties and may not be used for any other purpose or relied upon by any other person.

for any other purpose or relied upon by any other person. ATTENDING SURVEYOR Capt. John Banister,

ATTENDING SURVEYOR

Capt. John Banister, SA, Marine Surveyor