Report of technical survey of hull, Construction and installation.

Report of technical survey of hull, Construction and installation. File number : 20110580 Place of survey: Sante Teresa di Gallura, Italy. Craft s name: Winslow Bay Date of survey: 16-11-2011 and 17-11-2011 Registration number: 384499-4471T www.expertpleziervaart.nl info@expertpleziervaart.nl Tel.06-10631882 Page 1 van 24 file number: 20110580

Table of content Chapter cover page Table of contents 1. Definitions 2. General data 3. Ship data 4. Craft documents 5. Hull under water 6. Hull above water 7. Deck/superstructure 8. Hull inside 9. Tanks, Galley, and comfort, 10. interior 11. Electric installation 12. Navigation equipment 13. Steering gear 14. Propulsion and engine 15. generator 16. Sea trial 17. Safety and life saving appliances 18. Conclusion 19. Closure 20. Photo s 2. annex - terms and conditions - Hull layout photo s Page 2 van 24 file number: 20110580

1. Definitions I n this report observations and findings with regard to the survey and the sea trial are sum up in this report. The subheading is as show below. The observations and findings are marked in a 5 point system. The observations are indicative and are not guaranteed. Five (5) good - No remarks new state - No corrective maintenance to be expected within 12 calendar months after inspection - No preventive maintenance is to be expected within 12 calendar months from inspection - apply normal scheduled maintenance. four(4) more than sufficient - Virtually no comments, used condition - No corrective maintenance to be expected within 12 calendar months from inspection - No preventive maintenance is to be expected within six calendar months from inspection - apply normal scheduled maintenance Three (3) sufficient - Several remarks, used condition - No corrective maintenance to be expected within six calendar months from inspection - Preventive maintenance may be expected - apply normal scheduled maintenance Two (2) moderate - Too many comments, worn condition - Corrective maintenance may be necessary - Preventive maintenance necessary - Periodic maintenance necessary but is not enough - Use is possible but is not recommended; it that repair or replacement is recommended - Unsafe situation One(1) bad - Too many comments, unusable state - Corrective maintenance necessary - Preventive maintenance necessary - Periodic maintenance necessary - Before use is in consideration replacement/repair/maintenance should be carried out. - Unsafe situation Some reviews have been answered "Yes/No". In most cases meaning: No ; the evaluated requires no further attention. Yes ; the evaluated requires further attention. NI P ; Not inspected ; present ; not present Page 3 van 24 file number: 20110580

2. General data Pre- purchase survey Client: The purpose of this survey is to inspect if the craft is in the conditions conform the survey report of Mr. Marco Mureddu signed up on 13-7-2011 Client of van den Enden Ship Yard Address Industriesweg 43 code/place 5145 PD Waalwijk phone +31 416 696238 @ mail owner Info@vandenenden-shipyards.nl M. Napoleone Address Postal code town phone @mail Survey carried out by J.P.H.G.van Baars Address Duinweg 131 code/town 1871 AH Schoorl phone +31725094787/ mob. +31610631882 @ mail certification Place of survey Other Attendees Type of vessel brand/type info@expertpleziervaart.nl EMCI certified yacht surveyor Sardinië Broker, Claudio Simonazzi Motor Yacht Benetti 66 Delfino boatyard Benetti design Benetti Navali CIN-code Not available ; built before june 1998 registration VG 4739 D Vat Details : Page 4 van 24 file number: 20110580

3. Ship data dimensions Length: 19,96 Beam: 5.10 Draft: 1.60 Construction year 1969 Material Steel hull and aluminum superstructure Hull number FB 80 carved in aluminum bulkhead in lazarette displacement 65 ton ballast Lead bars behind carpentry. 4. Craft documents Measurement certificate Local registration yes Viareggio Rina certification yes Crew list VAT statement Not present insurance Proof of ownership Not present during survey proof of debt free acquisition Not present during survey For information: if going on information provided by third parties, and may be incorrect or incomplete, van Baars expert recreational craft is not responsible for it, nor for the consequences of this. Page 5 van 24 file number: 20110580

5. Hull under water/osmosis investigation Value details Stat of Hull underwater 2 Leaks and insufficient material thickness caused by corrosion from the inside, see attachment: hull layout Ultrasonic measurement 2 keel 4 No visual defects Coating system 1 Insufficient protective paint under antifouling Anodes 3 Due to insufficient paint anodes are almost worn after 4 months. Corrosion yes Local. But complete underwater hull must be maintained Damage yes Cooling water intake, bolds are missing propellershafts 4 No deformation Propellershaft bearings 4 Clearing within tolerances Exhaust pipe 3 Corrosion inside and outside. Cooling intake 2 Mounting bolts missing Propellers 4 Little deformation of blade tips. Well within tolerance. bowprop Sternprop Rudders 4 Rudder bearings 4 Heel trim tabs 3 General condition 2 For information: in case of ultra sonic testing the results come from local measuring therefore variables are possible in not measured places. Problems in and/or below the applied paint systems, or other not reachable places, can only be determined after destructive testing. This destructive testing Word does not run in response to this inspection. Page 6 van 24 file number: 20110580

6. Hull above water value details Coating 2 Many blisters damage yes Big deformation (dent) in the hull on starboard bow Loose layers of paint yes Cracks and blisters in the filler and the paint. Fender rail Non present Too rail Non present bulwark 4 Deck/hull connection 4 General condition 3 In regards with the given defects. For information survey under the applied paint systems and layers of filler can only be adopted after destructive testing. This destructive research is not carried out at the inspection. Page 7 van 24 file number: 20110580

7. Deck and super structure value details Material 2 Aluminium locally heavily corroded Coating 2 Many loose layers of paint Deck cover 1 teak deck leaking and corrosion traces of the deck below are visible. Construction of deck tools 2 Some deck tools are only connected to the teak. Due to corrosion of the under laying steel deck. Coating superstructure 1 Many heavy blisters Cover of super structure Deck cover rear deck 2 Teak is not water tide. Deckhouse mounting 1 Rivets are gone and corrosion in aluminum as well as steel has affected the construction. Teak cover of this connection is not water tide and leaks are visible on the inside due to this problem. chain locker 1 Due to the construction maintenance is not possible. Corrosion has affected the deck as well as the hull. Steel plating interior must be removed to inspect the hull under this locker. Ultrasonic testing show a very bad condition of the hull underneath the chain locker winch 4 Shutters/window/ports 3 They do show aesthetic defects. Ports are leaking due to defect rubber seal. Window wipe installation 2 Only a centrifuge window present this is insufficient. railing Fly bridge 3 4 Main deck Tender retrieve 3 installation General condition 2 Note: the internal condition of the deck, and superstructure, as well as the connection of the teak deck to the steel are not possible without destructive resurge, this resurge will not be carried out be van Baars Expert recreational craft Page 8 van 24 file number: 20110580

8. Hull inside value details State of preservation 1 Corrosion and degradation of parts are visual though out the hole bilge of the craft. Degradation of parts yes Frames are affected by corrosion. Visible leak yes Due to hull leaks and leaks in the deck, also leaks from showers and bathrooms. Water in bilge no But during the inspection it was obvious that bilges has been drained shortly before the survey. Long- and cross sectors 2 Constructively ok but corrosion affected many frames. Coating 2 Hull through fittings 3 There where fittings are mounted(storage room) insufficient conservation. Sea cocks 4 2 valves are disconnected therefore blinds should be mounted on these valves. plumbing 2 Partly disconnected and corroded Hose clamps 4 Shutters, Windows, ports 3 Aesthetic defects and ports are not water tide due to defect rubber seal Bilge 1 Heavily corroded Deck-structure connection 1 leaks General condition 2 In regards to the remarked defects. For information: the condition of the hull on the inside, under ballast or in keels, under concrete or other solid materials connected to the hull, are not surveyed without destructive inspection. Destructive inspection is no part of this survey Page 9 van 24 file number: 20110580

9. Tanks/galley/comfort Value Material details freshwater tank(s) 3 steel All tanks should be opend to inspect the interior. Waste water holding tanks carbon filter Toilet 1 Plumbing corroded and crew cabin toilet not mounted. fridges 3 Working with a central compressor in engine room. icemaker Freezer 3 stove 4 Oven/microwave heating Not tested Boiler/water heater Not tested Fresh water maker 5 Newly installed, installation in unprofessional way. air-conditioning Not tested. 10. Interior Timber work 4 original detail still present Upholstery 4 No major defects detected. Equipment 3 Working Not according modern standard Vessel interior is in sufficient condition the classic and original details work positive for this type of craft. Storage space 4 showers 1 Al bathroom floors are leaking General impression 3 For information: Tanks can are not filled by vanbaars Expert Recreational Craft When a manhole a manhole or inspection hatch on tanks is absence present. Van Baars expert recreational craft can exclusively by endoscopic research inspect the inside of tanks. This gives a limited result (s) found. Therefore A reservation is made. Page 10 van 24 file number: 20110580

11. Electric installation value details Ship installation 12 volt AC 24 Volt AC 220 volt DC 380 volt DC main switches 3 Capacity of the switch is sufficient for the current installation. When the overall installations is transformed to the modern standards the switches are insufficient. Group switches 4 fuses 3 working old Shore connection 2 No circuit breaker or isolation transformer Solar cels Wind generator Circuit breaker no alternator 4 Ac and DC Generator 4 Onan 12 KVA Charger 4 380 and 220 Cabin switches 3 Navigation lights 4 Batteries sea tide 4 batteries ventilated 4 Condition of batteries 4 Starter batteries 4 Onan batteries 4 Service batteries Electric wiring 3 Cluttered but functional General condition 3 Note: for wiring and connections that can't be reached or in not accessible space reservation are made. Electrical installation is only evaluated in how far this one works. Page 11 van 24 file number: 20110580

12. Navigation equipment present tested function brand compass yes yes yes Sestrel VHF/dsc yes yes yes Sailor Rudder indicator yes yes yes Atis No Radio/ssb No Gps No speedo No Navtex No Radar yes No autopilot yes yes yes Neco Depth sounder No Anemometer No Repeaters No Plotter yes No Radio/cd yes yes Yes For information: the assessment "works" is not to say that the designation is correct. Reservation for this part are made. Page 12 van 24 file number: 20110580

13. Steering gear Wheel/helm 4 Oil leakage yes In Lazaretto Backlash 5 Rudder angel restricted 4 seals 4 cylinders 4 console 4 Rudder Trunk 2 Heavily corroded and leaks detected around the rudder trunk. General condition 3 In regard to mentioned defect Page 13 van 24 file number: 20110580

14. Propulsion and engine Value details Main engine PS Type 120VA-14194 number 7122-3000 Construction 4 Solid Flexible 1967 Engine mountings 4 Alignment of engine and propeller shaft good. Crankshaft 2 Seals leaking Engine foundation 4 leak traces yes Water Oil fuel Seals and gaskets leaks. Corrosion traces yes Superficial Reversing gear Hydraulic mechanical Twindisk Cooling system closed Direct indirect Seaweed filter 1 None pressent Air vent 2 Exhaust system 1 wet Dry Isolated with asbestos!!! Exhaust noise 5 Main engine SB Type 12VA-14194 Number 7122-7000 Construction 4 Solid Flexible 1967 Engine mountings 4 Crankshaft 3 Seal appear to be ok but expectations are that seals must be changed. Engine foundation 4 leak traces yes Water Oil fuel Seals and gaskets leaks. Corrosion traces yes Superficial Reversing gear 4 Hydraulic Mechanic Twindisk Cooling system closed Direct Indirect Seaweed filter 1 None present Air vent 2 Exhaust system 1 wet dry Isolated with asbestos!!! Exhaust noise 5 Fuel tank(s) 3 internal inspection not possible, light corrosion on tanktop. Tank content 4500 litre Installation tank 3 Corrosion and not maintainable due to carpentry. Day tank Not present Water separator 3 On fuel filter Aerate tanks 4 Engine remote control 4 Mechanical by cable and chain. Propeller shaft installation 3 Portside gland is leaking sea water. Page 14 van 24 file number: 20110580

Fuel valves 4 Closable on deck 4 According to Rina rules General impression 3 engine room Conservation engine 2 room Thrust bearing None present Leakage propeller shaft yes gland Water lubricated Oil lubricated Grease lubricated Air intake 1 Complete corroded. 15.Generator Diesel petrol Power 12 Kva type 12.om DJR #87481638 Mounting 4 Flexible mountings 4 Construction 2 Cover show minor defects Leaks yes Seawater intake pump leaks. Cooling 4 Exhaust 3 Constructed out of gas pipes. Corroded inside. Noise 5 Starter battery 5 Information: flexible engine mountings must be audited annually for cracks, we recommend flexible engine mountings to be replaced after 10 years. For rubber seal and cuffs is an annual inspection advisable and replaced as recommended by the manufacturer specifications. Inspections of engines and mechanical parts relate to a moment, there are no guarantees based on the advice of repairs or replacement of parts. Laboratory testing of lubricants does not belong to this inspection. These can be run on demand. Page 15 van 24 file number: 20110580

16. Sea trial Behaviors and effects to be assessed in a 3 digit from 0 to 3 where: *1 = poor *2 = average *3 = excellent Location Weather visibility Wind force Wind direction Mediterranean sea north of Sardinia Good Good 4 BFT NE value details Bow thruster Stern thruster Steering behavior 2 Vibration 2 Due to solid engine mounting resonance 2 Gear clutch 3 Engine remote control 2 Acoustic alarm 2 Behavior full ahead 1 Did not reach maximum rpm of 2200 Behavior full sb 2 Behavior full port 2 behavior ahead/ astern 3 Maneuverability astern 1 Small rudders, maneuvering must be done with engines. Engine readings during trial Starboard engine Portside engine Oil temp. 78 C 77 C Oil pressure 3.5 bar 4.0 Bar Water temp 75 75 Gear box pressure 150 150 Hour according indicator +/-2100 +/-2100 Page 16 van 24 file number: 20110580

17. Safety and lifesaving appliances present Test cert. details Fire extinguishers yes yes Rina Engine room yes yes Rina regulations extinguisher Emergency signals No lifebuoy yes Yes life raft self inflating yes Yes lifejacket Yes first aid kit No Fire alarm /smoke No detectors Burglar alarm No Emergency steering yes In Lazarette anchor yes 2 bow anchors of sufficient weight bilge pumps yes yes Several electric bilge pumps and 1 mechanical pump on main engine. tender yes no On fly bridge Page 17 van 24 file number: 20110580

18. Conclusion The survey, done by van Baars Expert Recreational Craft of the craft with the details in the pages before, results in the following review: the overall condition and state of maintenance is poor This report of findings is carried out for Client of van den Enden Ship Yards to get a clear picture of the technical state and Construction of the craft. And if the craft is in the state as given by mr. Marco Mureddu During the survey we discovered that the Craft is nowhere near the state as it was mentioned by my colleague mr. Marco Mureddu. Hull outside: During the inspection the hull was painted with 2 layers of antifouling. The protective coating beneath the antifouling is less than 125µ and therefore insufficient to protect the craft against corrosion. The heavily affected anodes (mounted in july 2011) show that electrolyses is a problem. Welds are in good condition as far as visual inspection is possible. In Attachment 1A, you can find the results of the ultrasonic measurements. Here you will find that the maximum material thickness is between less than zero millimeter (leak) and 4.2 millimeters, therefore we can conclude that the craft was originally build of 5 millimeter steel underwater and 4 millimeter freeboard above the waterline. This in contrast with the 7 millimeter. In this attachment we suggested the repairs that have to be made to ensure a minimum hull thickness of 3 millimeters and a 10% margin. Which is required by insurance companies. Repair should be made from steel no less than 5 millimeter thickness. Because corrosion is starting from the inside of the hull and preparation and conservation of the original hull is not possible in the current state we advice to remove old hull material and replace for new. Propeller and propeller shafts are in good condition as far as visual inspection is possible. Also the rudders and flaps are in well working condition. cost planning 15.000,= Leaks occurred during the survey Page 18 van 24 file number: 20110580

Hull inside: The hull inside is very badly protected against corrosion due to saltwater and bad paint condition the hull material as well as the framework is heavily corroded. Parts of the frame work are completely missing an repairs must be made. The inside of the fuel tanks are not inspected because the manholes are not accessible. Corrosion in the fuel tanks is well possible Cost planning 17.500,= lazarette owners cabin. crew cabin. heavily corroded framework and hull material. Deck and super structure: The connection between deck and superstructure is in a very bad condition. The connection is originally riveted, most rived are no longer connected to the aluminum with loss of constructive strength and leak as a result. The wooden cover of this connection is also detached from the aluminum and the steel deck, with wood rotting as a result. The teak deck has been sanded down with material loss as a result. Rubber seal are partly gone and the teak deck is no longer water tide. Sea water is locked up in between the steel deck and the teak deck cover. Therefore corrosion of the child steel deck is inevitable. Corrosion water is visual all over the gangways. Some deck tools are loose from the constructive steel due to this corrosion. The coating on the aluminum superstructure is bad condition this is partly caused by the defect in the connection with the steel deck. At the foredeck a wooden bench is mounted. This bench is no longer is a usable state and must be renewed. This is also necessary because the teak deck the mounted underneath this bench. Cost planning recovery of the teak deck 60m2. 90.000,= Cost planning recovery of the deck super structure connection. 11.500,= Cost planning repairs of bench. 1.200,= Page 19 van 24 file number: 20110580

problems with the aluminum steel connection wood rotting on the deck. worn and leaking teak deck. wood rotting in the bench on the foredeck. corrosion of the steel deck under the teak. Page 20 van 24 file number: 20110580

Carpentry and interior: The carpentry and interior show also defects due to leaks from the inside as well is from the outside in. the main problem of the leaks is the connection between the deck and the super structure. Windows shutters and portholes are also no longer water tide. Besides these problems all the bathroom floors are leaking. This results in wood rotting and corrosion of the hull. Therefore these problems should be repaired to prevent further deterioration on the inside. Cost planning repairs bathroom floors 10.000,= Cost planning repairs of portholes 500,= Cost planning repairs of visual defects of carpentry. 8.500,= Overall installations: In general the installations are in a condition that can be expected from a craft from this age. There are however some problems. The electric installation is old and is missing an isolation converter to prevent electrolyses. The rest of the electrics is functional but not according to the modern standards which of course can be expected from a craft from this age. All plumbing in the craft is made out of steel pipes. Some emergency repairs have been made. But we advice to remove all the steel plumbing and exchange it for hoses with the right specifications. Cost planning electric installation. 11.500,= Cost planning repairs of plumbing 8.500,= Page 21 van 24 file number: 20110580

Engine room and machinery: During the survey we had the impression that the machinery is maintained reasonable. partly caused by the age of the vessel I discovered the following problems and defects. Gland of portside engine is leaking. Cost planning 250,= Exhaust is covered with highly toxic asbestos! Cost planning 2000,= Crankshaft seal from port side engine is leaking oil. Cost planning 750,= Air intake for the engine room is completely corroded. This makes it possible that seawater and rain can come into the engine room. Cost planning 2000,= Out board cooling water pump of the generator is leaking. Cost planning 250,= Both engines have several leaking gaskets with oil, water and fuel leak as a result. Cost planning 6.500,= Hydraulic helm system is leaking in the after peak(lazarette). Cost planning 275,= Overall engine room. 12.025,= Page 22 van 24 file number: 20110580

asbestos on the exhaust. Air intake corroded steering hydraulics leaking. water pump generator leaking. Page 23 van 24 file number: 20110580

19. Closure Although the intention of the survey is to give a complete report about the state of the vessel at the moment of the survey and the detected derogations and defects, this report excludes not one unlisted or undetected derogation or defect of the vessel. Therefore should be regarded as not been reviewed, it also should be noticed that on all the services of vanbaars expert recreational craft our terms and conditions apply. This survey is a snapshot, van Baars Expert Recreational craft cannot guaranty that the yacht will stay in the condition as is during the survey. The report is only for the originator of the inspection. No responsibility is accepted for use by third parties or for the benefit of other vessels or parts of it. The pages of this report are marked by a stamp and a signature. Made with best intentions, knowledge and skills. sans préjudice Thus put up, Date: 21-11-2011 Place: Schoorl Name: Boj van Baars Director of van Baars Expert Recreational Craft Page 24 van 24 file number: 20110580