Swan Point Marine Services

B. Douglas Megargee Swan Point Marine Surveying Marine Surveyor and Consultant 29173 Ricks Landing Rd. Kennedyville, MD 21645 O: 410-639-7001 C: 410-708-3152 Fax: 410-639-2854 bdm.@gmarina.com/ bdmegargee@gmail.com March 20, 2010

Robert M. Hewes Quaker Neck Rd. Chestertown, MD 21620 Dear Mr. Hewes, Enclosed please find the insurance survey performed on "Yetsgo", a down east powerboat, Hull # VHY32042M74H. My fee is as follows; Survey Fees: Report Preparation:

$ 20.00 x 32' = $640.00 $ 65.00

Total Amount Due;

$705.00

If you have any questions regarding this report or its contents please do not hesitate to phone.

Thank You. Sincerely,

B. Douglas Megargee Swan Point Marine Services

Findings and Recommendations Vessel; "Yetsgo" Owner; Robert M. Hewes Date; February 20,2010

1) B-7, H-8a: The seacock for the engine raw water cooling was frozen and needs to be serviced or replaced. This is an Essential repair.

2) H-lOb; The exhaust hoses are in poor condition and need replacement.

This is an Essential repair.

3) l-3i, 1-4; The fuel lines are in poor condition and fittings are poor and rusty.

They should be replaced as necessary. This is an Essential repair.

4) J-l: The hydraulic lines for the steering system are in fair condition and fittings appear to be marginal. They should be replaced as necessary. This is an Essential repair.

Conclusion On February 20,2010, a survey was performed on "Yetsgo", a Wasque 32' down east style lobster yacht. (Hull# VNY3204M74H) The survey was performed at the request of the owner Robert M. Hewes for the purpose of securing proper marine insurance. The survey was performed ashore on Mr. Hewes private railway inside the shed at his residence. This is the third time I have surveyed "Yetsgo" The Wasque 32' is a very popular design. Hulls were finished out by a number of different yards throughout the northeast in a variety of configurations from working lobster boats to yacht finish cruisers. The surveyed vessel was purchased originally as a hull and deck and was finished out as a custom bass boat.

This vessel has been professionally maintained to the highest standards under the supervision of her owner and his private captain. Mr. Hewes is an experienced yachtsman and captain who owns several other vessels. "Yetsgo" is kept at Mr. Hewes residence pier and is his personal picnic launch. Mr. Hewes spares no expense in the care and maintenance of all of his vessels. At the time of survey "Yetsgo" was undergoing repairs and refitting with her engine removed during winter lay-up.

With completion of the repairs found in the Findings and Recommendations section of this report, "Yetsgo" will be fully found and capable of securing proper marine insurance.

Acceptance of, or reliance upon this report for any purpose is understood to be a complete release of B. Douglas Megargee and Swan Point Marine Surveying for any major or minor errors in judgment or failure to find any defects not stated herein. The owners, operators, and his /her agents agree that this report is not intended to be a guarantee and will protect, indemnify, and save harmless the said B. Douglas Megargee for any liability whatsoever.

The said B.Douglas Megargee hereby disclaims any responsibility for errors and omissions.

Signed, B.Douglas Megargee Marine Surveyor

Date Signed:

B. Douglas Megargee SWAN POINT MARINE SER VICES Accredited Marine Surveyor and Consultant Introduction The surveyor based on observation and examination of the listed items has prepared this survey report. It is intended to be an integral part of the vessel's papers. This document has been prepared solely for the contacting party.

This report lists the items inspected by the surveyor and their condition. At the end of the report, there is a section titled "Findings and Recommendations". The surveyor, to describe, in detail, those items, which are found to be in need of repair or attention, uses the aforementioned area of this report. The Findings are categorized as "Priority One" or "Priority Two", and as "Essential", "Required", or "Desired" Repairs. "Essential" Repairs are those considered by the surveyor to be essential to the structural integrity, seaworthiness, and safe operation of the vessel and its crew. "Required" Repairs are those items that are in violation of U.S.C.G., A.B.Y.C., or N.F.P.A regulations and recommendations. "Desired" Repairs are those items which when repaired would enhance and upgrade the condition and appearance of the surveyed vessel. "Priority Two" repairs are those items that can wait until next lay-up or prior to any extended blue water passages for completion.

The conclusions of the surveyor expressed in this report are based upon observation and inspection where every possible effort could be made and where access permitted inspection. No liners, bulkheads, partitions, or joinery work were dismantled or removed and no destructive testing was performed unless otherwise stated in this report.

This report was prepared expressly for the sole use of the contracting party. The use of this report by anyone other than the contracting party is prohibited and considered a misrepresentation of this survey, its findings and its contents, and breech of contract. No one other than the contracting party shall have the right to rely on any statements, opinions, or representations made herein, and any such person or persons shall not be privy to this contract.

Signed,

B. Douglas Megargee , Marine Surveyor Swan Point Marine Services

29173 Ricks Landing Road, Kennedyville, MD 21645 Home: (410) 348-2447 Office: (410) 639-7011

By Telefax: (410) 639-2854

B. Douglas Megargee SWAN POINT MARINE SER VICES Accredited Marine Surveyor and Consultant

Grading System - General Condition

1) 2) 3) 4)

Excellent Good Fair Poor

Abbreviations

A.N.P BRZ F.R.P. N.A.

N.O.

O.A.T.O.S. I.O.A.T.O.S. -

s.s.

W.A.P.I.

Access Not Permitted Bronze Fiberglass Reinforced Plastic Not Applicable None Observed / Not Observed (contexual) Operational at Time of Survey In Operational at Time of Survey Stainless Steel Where Access Permits Inspection

"Quality Workmanship for the Discriminating Yachtsman "

29173 Ricks Landing Road, Kennedyville, MD 21645 Home: (410) 348-2447 Office: (410) 639-7011

By Telefax: (410) 639-2854

B.

Douglas Megargee

SWAN POINT MARINE SER VICES Accredited Marine Surveyor and Consultant Surveyor's Checklist Powerboat A. Particulars 1. Survey performed for: Robert M Hewes, III 2. Location of Vessel during survey: Ashore in Winter lay-up and afloat at Owner's Residence 3. Date: May 24, 2005 4. Name: "Yetsgo" 5. Type: Downeast—Bassboat/Cruiser 6. L.O.A: 32' 7. Beam: 9'9" 8. Draft: 4 ' 3 " 9. Displacement: 8300 lbs.

10. Engine make and Model: John Deere / Repowered 1998 / Mod. 6076 AFM30 11. Engine make and Model: N.A. Single Schew 12. Engine Serial #: RG6076A592729 13. Engine Hours: 307 14. Designer: Unknown 15. Builder: Vineyard Yachts / Custom 16. Hull #: VNY32042M74H 17. Year Built: 1974 18. Registration #: MD 7145 T 19. USCG Document #: N.O. 20. Hailport: Chestertown, MD 21. Replacement Cost: $350,000.00 22. Fair Market Value: $100,000.00 B. Hull Exterior 1. Hull Material: FRP (Fibrous reinforced plastic) 2. Type of Construction: Conventional molded fiberglass 3. Condition of Finish: Fair/ Needs sanding and refinishing

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Symmetry Hull and Keel: Good Type of under body: Displacement Protection of rudder and shaft(s): Excellent / Full Keel External condition of thru hull fittings: See Finding #1 Total number of thru hull fittings: Four Type and condition of rub rail: Vinyl and Stainless / Good Galvanic protection: Good Soundings of topsides: No delamination found Soundings of bottom: No delamination found

29173 Ricks Landing Road, Kennedyville, MD 21645 Home: (410) 348-2447 Office: (410) 639-7011

By Telefax: (410) 639-2854

B: Hull Exterior (continued) 13. Rudder and skeg condition: Good / Cast Bronze 14. Propeller condition: Excellent / Reconditioned 15. Size of propeller(s): 2 0 x 1 8 RH 16. Trim tabs: "Bennett" O.A.T.O.S. 17. Swim ladder: Good 18. Swim Platform: Good 19. Shafts: Good 20. Running Gear / Struts - Bearings: Good / W.A.P.I.

C. Deck and Superstructure 1. Type of construction: Composite - FRP - Marine Plywood - Hardwood 2. Sounding of Deck: No delamination found 3. Sounding of superstructure: No delamination found 4. Sounding of cockpit: Good 5. General condition of finish: Good 6. Non Skid surface: Good 7. Toe rail: Vinyl / Good 8. Boarding Provisions: Open Cockpit 9. Hatches: F R P / G o o d 10. Ports and doorways: Cabin Door needs Refinishing 11. Cleats and Chocks: Mooring and Spring Cleats 12. Pulpit, rails and lifelines: Good 13. Anchor Windlass: N.O. 14. Hand Holds: Good 15. Deck vents: N.O. 16. Coamings: FRP and Marine Plywood / Good 17. Exterior joinery work: Good 18. Cockpit hatches and furniture: Good / FRP / Composite 19. Cockpit drains: Transom mounted scuppers 20. Deck Plates: Good 21. Bridge: One station starboard 22. General Condition of Bridge: Good 23. Radar Arch: Custom / Good 24. Swim Platform: Good 25. Remarks: D. Vessel Interior 1. Layout: "V" berth-enclosed head to starboard / Galley to port 2. General Condition: Excellent 3. Condition of joinery work: Good

D. Vessel Interior (continued) 4. Access to hull and hardware: Good 5. Means of structural support: Fore & Aft stringer. Built in partitions & furniture 6. Hull and deck joint: Good / Flange on Flange through bolted 7. Condition of Bonds: Good / W.A.P.I. 8. Hull Liner: N.A. 9. Head Liner: Fabric / Looks to be new / Excellent 10. Floor timbers: Good / W.A.P.I. 11. Cabinetry: Good 12. Ports: O.A.T.O.S. / Four "Bexson" opening 13. Handholds: Good 14. Machinery placement: Amidships in cockpit 15. Machinery protection and insulation: Excellent 16. Cabin sole condition: Fair / Needs refinishing 17. Ventilation / living quarters: Good 18. Ventilation / galley: Good 19. Ventilation / head: Good 20. Ventilation / lockers: Fair 21. Upholstery: Good 22. Observed Leaks: None 23. Bilges Good 24. Remarks: E. Plumbinfi 1. Water tanks: 25 gallon / Stainless Tank 2. Water tanks installation and location: Good / Under "V" berth 3. Cleanout provision: N.O. 4. Fresh water pumps: Manual / O.A.T.O.S. 5. Line construction: PVC 6. Manual water pumps: O.A.T.O.S. 7. Water heater type: N.O. 8. Water heater installation: N.A. 9. Head type: "Sanipottie" Self contained MSD 10. Head installation: Good 11. Marine sanitation device: Self contained 12. Marine sanitation installation: N.A. 13. Thru hull fittings: N.O. 14. Head line construction and condition: N.A. 15. Head sink drain: N.O. 16. Shower drain: N.O. 17. Galley sink drain: O.A.T.O.S. 18. Galley stove type: N.O. 19. Stove fuel: N.O. 20. Galley stove fuel lines and valves: N.A.

F. Electrical System - D.C.—The electronics were removed because the vessel was under going cosmetic repairs.

1. Vessel System: 12VoltDC 2. Batteries: Two "Odyssey" PC1200 Drycells 3. Battery location: Forward of engine machinery spaces 4. * Battery protection and fastening: Batteries were removed for winter storage 5. Alternator: "John Deere" (Leese Neville) ID Plate illegible 6. Master switch: Perko 7. Electrical panel: Good / AC-DC / "Marinetics" 8. Circuit Protection: Circuit Breakers 9. Wiring: Good 10. Cabin lights: O.A.T.O.S. 11. Navigation Lights: O.A.T.O.S. 12. Miscellaneous lighting: Search Lights / O.A.T.O.S. 13.VHF: Not Checked 14. Stereo: N.O. 15. Compass light: O.A.T.O.S. 16. Blowers: N.O. 17. Bilge pumps: Two—1500 GPH automatics / O.A.T.O.S. 18. Horn: O.A.T.O.S. 19. Engine instrument lighting: O.A.T.O.S. 20. Pleasure water pumps: N.O. 21. Electric heads: N.O. 22. Depthfinder: N.O. 23. Knotmeter: N.O. 24. Loran: N.O. 25. Radar: N.O. 26. Chartplotter: N.O. 27. Hailer: Raytheon RAV 410 G. Electrical System - A.C. 1. Shore System: 125 Volt AC / 30A 2. Circuit Protection: Circuit Breakers 3. Generator: N.O. 4. Shore system hook-up: Good / "Hubbell" 5. Converter: "West Marine" 10 amp / O.A.T.O.S. 6. Water heater: N.O. 7. Air conditioning: "Marine Air" URGKH 8. Heating: "Marine Air" Reverse Cycle 9. Outlets: O.A.T.O.S. 10. Polarity: Good 11. Icemaker: N.O.

H. Machinery and Propulsion—Serial # RG6076A592729 / Model # 6076AFM30 1.

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Engine make and type: John Deere / Diesel Transmission: "ZF" 1RM280A / Serial # 96-10873 General installation: Good General access: Excellent Ventilation: Good * General condition of engine observed: Excellent/ Engine was out of boat for extensive servicing Cooling system type: Freshwater Cooled Cooling system condition a) Valves: See Findings #1 b) Hoses: See Findings #5 c) Strainer: Good d) Pumps: O.A.T.O.S. Exhaust system type: Wet / Dual Discharge Exhaust system condition: a) Routing: Good / W.A.P.I. b) Hoses and pipes: See Findings #2 c) Connections: Good Engine mounts:Good Engine bedding: Fore and Aft Stringers / Good Drip pan: N.O. Stuffing box: Conventional Packing gland / Good Coupling: Good Engine controls: "Morse" / O.A.T.O.S. Engine instruments: O.A.T.O.S. Engine alarm: O.A.T.O.S. Engine fluid levels: Good Engine function: N.O. Transmission function: N.O. Synchronizer: N.A.

Fuel System 1. Fuel type: Diesel 2. Installation: Good 3. Tank a) Location: Port and starboard saddle tanks b) Material: Aluminum c) Installation: Good / W.A.P.I. d) Condition: Good / W.A.P.I. e) Label: N.O. f) Ventilation: Fair g) Bonding: Good h) Fill: Good / W.A.P.I. i) Vent line: See Findings #3

I. Fuel System 4.

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J.

Fuel Line installation: See Findings #3 Fuel line material: Aircraft style rubber reinforced Access to system: Excellent Fuel shut off: Two Petcocks Filtration: "Racor" 900MA / Primary Remarks:

Steering System 1. Make and type: Hydraulic / Power assisted / See Findings #4 2. Number of stations: One 3. Visibility: Excellent 4. Access to system: Good 5. Emergency provision: N.O. 6. Emergency provision operation: N.A. 7. Fastening of sleeves, cables and cylinders: Good 8. Protection of system: Good 9. Rudder stops: N.O. 10. Rudder stock: Bronze 11. Rudder condition: Good 12. Quadrant type and condition: Straight arm / Good 13. System tolerance and function: Was not checked due to winter lay-up 14. System routing: Good 15. Wheel lock: N.O. 16. Autopilot type: N.O. 17. Installation: N.O. 18. Function: N.A. 19. *Rudder port and packing gland: Needs to be serviced

K. Safety and Navigation Equipment 1. Horn or Whistle: O.A.T.O.S. 2. Bell: Yes 3. P.F.D.: 6 Adult Type I 4. P.F.D.: 5. Throwable P. F. D.: Ring 6. Fire Extinguishers: Compliant 7. Automatic fire prevention system: N.O. 8. Compass: 'Azimuth" Digital 9. Deviation table: N.O. 10. Navigation lighting placement: Good 11. Navigation lighting function: O.A.T.O.S. 12. Flares: N.O. 13. Anchors: N.O.

K. Safety and Navigation Equipment (continued) 14. Chains: N.O. 15. Rodes: N.O. 16. Gas vapor protection: N.O. 17. Engine alarm system: O.A.T.O.S. 18. First Aid: N.O. 19. Tools: Miscellaneous 20. Manual pumps: N.O. 21. Life raft: N.O. 22. E.P.I.R.B.: N.O. L. General Inventory No Inventory was taken 1.

2.

Conclusion

On February 20, 2010 a survey was performed on " Yetsgo", a Wasque 32' powerboat, Hull # VNY32042M74H. The survey was performed at the request of the owner Robert M. Hewes, III. for the purpose of securing proper marine insurance. The survey was performed ashore at Mr. Hewes' home.

The Wasque 32' is a popular downeast style design. The hulls were finished out by a number of different yards throughout the northeast in a variety of configurations from working lobster boats to yacht finish cruisers. The surveyed vessel was purchased as a hull and deck and finished out custom as a bass boat configuration.

The surveyed vessel has been professionally maintained under the supervision of her/'owner and his captain. The owner is an experienced captain and yachtsman and owns several vessels. He spares no expense in maintaining and upgrading all of his vessels and it is evident throughout.

At the time of survey, repairs and refitting had been done during winter lay-up.

With completion of the repairs, listed in the Findings and Recommendations section of this report, the vessel is fully found and capable of marine insurance.

Acceptance of or reliance upon this report for any purpose is understood to be a complete release of B. Douglas Megargee and Swan Point Marine Services for any major or minor errors in judgment or failure to find any defect not stated herein. The owners, buyers, or his agent agree that this report is not intended to be a guarantee and will protect, indemnify, and save harmless the said B. Douglas Megargee for any liability whatsoever.

The said B. Douglas Megargee hereby disclaims any responsibility or liability for errors and omissions.

Signed,

Findings & Recommendations 1. C-4 The cockpit sole has stress cracks out toward the hull sides. There were high moisture levels present, especially around hardware. Some hardware is pulling out Although there does not seem to be any indication the deck will fail immediately,, these conditions will cause its eventual failure. This is considered to be a Desired Repair.

2. C-24 There is moldy green fluid oozing from the laminations of the swim platform. This condition is indicative of laminate failure and subsequent moisture or water intrusion into the laminate. This condition may compromise the integrity of the swim platform resulting in an accident. This is an Essential Repair.

3. D-23 The bilges were particularly dirty and had oil present. They should be cleaned and made free of any oil. This is a Required Repair.

4. H-6 The general condition of the engine was poor and rusty. It should be cleaned, primed, and refinished. This is a Desired Repair.

5. H-8 b The raw water intake hose from the seacock to the strainer and then to the pump is marginal and should be replaced. This is an Essential Repair.

6.

H-ll The engine mounts are rusty and need to be serviced and refinished. This is a Desired Repair.

B. Douglas Megargee SWAN POINT MARINE SER VICES Accredited Marine Surveyor and Consultant

Personal References

Robert K. Johnson, NA President, Island Packet Yachts 1979 Wild Acres Road Largo, FL 33771 (727)531-2365 Jack Quinn U.S.N.A. Offshore Sailing Coach - Ret. / Pres. Ulmer Sails Annapolis - Ret. 7803 Waverly Island Road Easton, MD 21601 (410) 763-9399 Jack Fooks VP Westinghouse Corporation - Ret. 112 Cheshire Lane McMurray, PA 19103 (412) 941-3709 Edward Ku row s Id President, Gratitude Yachting Center 5990 Lawton Avenue Rock Hall, MD 21661 (410) 639-7111

"Quality

Workmanship for the Discriminating Yachtsman"

29173 Ricks Landing Road, Kennedyville, MD 21645 Home: (410) 348-2447 Office: (410) 639-7011

By Telefax: (410) 639-2854

B. Douglas Megargee SWAN POINT MARINE SER

VICES

Accredited Marine Surveyor and Consultant

MEMBER SOCIETIES, REGULARTQRY, AND TESTING GROUPS Society of Accredited Marine Surveyors 4163 Oxford Avenue Jacksonville, FL 32210 (800)344-9077 American Boat and Yacht Council, Inc. P. O. Box 747 Millersville, MD 21108 (410) 923-3932 Chairman - Kent County Marine Trades Association Rock Hall, MD 21661 Maryland Marine Trades Association P. O. Box 3148 Annapolis, MD 21403 (410) 267-7469 National Fire Protection Association United States Coast Guard Maryland Department of Natural Resources 120 Broadway Centreville, MD 21617 (410)758-5252 Underwriters Laboratories, Inc.

January 1, 1993

"Quality Workmanship for the Discriminating Yachtsman"

29173 Ricks Landing Road, Kennedyville, MD 21645 Home: (410) 348-2447 Office: (410) 639-7011

By Telefax: (410) 639-2854