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General Condition and Value Report of Survey Diesel Cruiser “ARIEL” ON: 915010 Report Index: 1 Requestor: 2 Valuations: 2 Notes: 2 General: 2 Mandatory Federal, CA State and USCG/ Requirements for Recreational Boats: 2 Recommendations: 3 Suggestions: 3 Specifications: 3-4 Hull /Interior: 4 Machinery: 4-5 Electrical: 5 Pumps and Auxiliaries: 5 Radio and Electronics: 5 Tanks: 6 Accommodations: 6 Safety Outfit: 6 Small Boat and Other outfit: 6 Pictures with notes (present condition at time of survey) 7-35 Documentation: 36 Comparable: 37 Surveyors Company Profile: 38 End FOXWRIGHT Marine Surveyors [email protected] 2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B 1 of 38 General Condition and Valuation Report of Survey
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General Condition and ValueReport of Survey

Diesel Cruiser “ARIEL”ON: 915010

Report Index: 1Requestor: 2 Valuations: 2Notes: 2General: 2Mandatory Federal, CA State and USCG/ Requirements for Recreational Boats: 2Recommendations: 3Suggestions: 3Specifications: 3-4 Hull /Interior: 4Machinery: 4-5Electrical: 5Pumps and Auxiliaries: 5Radio and Electronics: 5Tanks: 6Accommodations: 6Safety Outfit: 6Small Boat and Other outfit: 6Pictures with notes (present condition at time of survey) 7-35Documentation: 36Comparable: 37Surveyors Company Profile: 38 End

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

1 of 38General Condition and Valuation

Report of Survey

Survey Requested by: Bad Boy Brands Int’l. 2411 Second Ave. San Diego, CA 92101 Date of Survey: February 24 2014Surveyed: While hauled out at Driscoll Mission Bay, San Diego, CaliforniaOwner: Ariel Tours LLC, 2411 2nd Avenue, San Diego, California 92101Copy To: [email protected]

Replacement Value: $ 860,000 Present Agreed Value: 473,000

Notes

This is a 45-foot wood hull, v-bottom, round bilge, flush deck, raised pilothouse, fly bridge, twin diesel screw, cabin cruiser. Considered by the undersigned being suitable type for use in Southern California near coastal waters with regard to excessive seas.

GeneralMaintenance: Vessel has been completing a structural refit and cosmetic restoration since 2010. Shows “Pride of Ownership” and kept in “Bristol” fashion. Engines have most recently been professionally replaced in 2012 at a cost of $100,000. Interior found neat and clean with newer appointments. Teak and holly aft deck and saloon flooring with Mahogany interior paneling / cabinetry highly varnished. Newer saloon windows. Fly bridge restored to original. Exterior house hull and bridge finishes are kept as new. Deck and combing restored. Vessel is hauled at this time to make repairs on the Cathodic bonding system that caused galvanic corrosion to under water appurtenance.

Mandatory Federal, CA State and USCG Requirements for Recreational Boats

Display of Numbers: HIN and Registry - YesPersonal Flotation Devises: Yes Must Be- USCG approved: Yes In Serviceable Condition: Yes Appropriate Size for Intended User: Adult onlyPortable Fire Extinguishers: 2010Fixed System: None required. YesGround tackle: YesBuoyant cushion: Throw devise. YesFlares/Horn/Bell: YesNavigation: To international rule. YesRules of the Road United States Coast Guard (Vessels over 40’) YesWaste management plan: (Vessels over 40’) YesGarbage (MARPOL) Disposal Placard: (Vessels over 26’) YesOil Discharge Placard: (vessels over 26’) Yes

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

2 of 38General Condition and Valuation

Report of Survey

Recommendations

1. No recommendations at this time. All previous recommendations are being complied with during this haul out. See Suggestions.

Buyer is aware of the above recommendations and reported compliance is planned. Recommendations are items requiring service or replacement to restore intended operation to assure continued safe sea keeping of vessel insofar as much to the place prior to the neglect. When available a * indicates a citation (or “marine standard reference”) used for establishing the recommendation and may be used also when completing repairs, however dose not limit repairs deemed made to what USCG considers to be “Good Marine Practice” Enclosure (1) to NVIC 7-95 or that recommended by manufacturer.

Citations – www.uscg.mil Federal Requirements and Safety Tips for recreational Boats 2006 U.S. DOT / United States Coast Guard, Navigation Rules ABCs of California Boating Law, Department of Boating and Waterways American Boat and Yacht Council, Standards and Recommended

practices for Small Craft (ABYC) National Fire Protection Administration, (NFPA) 302 Pleasure Craft

Suggestions

1. Assure correct fit of propeller hub nuts. Determine integrity of small hub nut from apparent galvanic corrosion and replace if necessary.

2. Replace deteriorated cathodic bonding system reference anodes. 3. Clean down debris in bilges, search out and secure errant “weeps”,

monitor and maintain bilges dry. Maintain bilge pump terminals clean. 4. Prepare for “Periodic” select fastener sampling during next routine haul

out as per USCG NVIC 7-95. 5. Replace for missing swim step fasteners. 6. Apply chafe protection at engine hose over spray riser.

Specifications

Builders Hull No: 6921Document No: 915010Built by: Manson Boat WorksYear: Reported 1969 at Salisbury, MAHailing Port: San Diego, CA

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

3 of 38General Condition and Valuation

Report of Survey

Registry dimensions Length: 45.0’Breadth: 14.7’Depth: 8.4’Displacement: Travel lift weight not recorded. GRT 37 / NRT 29Waters to be Navigated: Southern California. Service: Pleasure.Last dry docking: At this time for inspection and refit and refurbishment. Cruising speed: 8-9 KnotsCruising radius: To be determine by operator.Recent Loss/Damage or Major Repairs: Reported and noted none.Former Names: Ex “ARCADIA”, “KLYME ABOARD”, “PATRICIA” “MAD FER IT” and “MADAME QUEEN”

Hull

Planking: Apparently Mahogany carvel single plank over bent frames.Fastening: Bronze new #12 and #14 screws original and additional older stainless.Frames: Bent oak approximately 1-3/4” square. Sisters and cousin frames. Floors: Estimate oak each frame. Renewed and reinforced with intercostals. Main Deck: Ply and cloth overlay. Teak aft deck. Clamp: Shelf.Watertight Bulkheads: None.Rudder: Twin bronze plate type.

Hull Notes: Wood hull. Inspected internally and externally where accessible while previously undergoing refit and at this time. No indication of deterioration or structural failure found considered being of sever structural significance at this time. Select fastener sampling of approximately 60% of bottom performed during 2010 refit. All refit work appears stable at this time. At this time noted local galvanic corrosion at rudder log through hull fastener heads and propeller hub nuts from apparent missing anode reported last 3 months. Certified Yacht Management Inc. is reported to have restored cathodic bonding system to calibrated operation and provides owner with independent reports. Per suggested USCG criteria “periodical” fastener sampling required every 5 years unless for cause. No cause found at this time for sampling so next routine haul out notify undersigned for return bottom inspection.

Machinery

Main engine: Twin Yanmar 6LPA-STP2Built: Not determined

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

4 of 38General Condition and Valuation

Report of Survey

Serial: Not determined.Type: Marine high speed. 4-stroke, pleasure duty, fresh water cooled. Integral reverse reduction gear. Location: Amidships.Foundation: Resilient mounts bolted to molded bed log stringers.HP: 315 eachRPM: Est. 3800Engine service hour meters: Not fitNo. Cylinders: Six each.Engine control: Cable daisy chained at bridge and pilothouse wheel.Engine room ventilation: Adequate. Blower.Exhaust cooling: Water jacket manifolds, and riser, collector and muffler wet overboard aft. Fuel Consumption: Estimate 8 GPHPropeller: Four blade bronze 23” x 20.5” Number: Two.Shafting: Stainless 1-3/8”Skeg or Strutted: Bronze single-arm and whip struts.Steering gear: Cable, twin wheel with selector switch. Auxiliary Engines: Northern Lights Motor generatorGenerators: Alternators. Output 12-volts, fractional KW

Machinery: Diesel. Replacements from original. Very good external appearance. Suitable type for service. In running order. Reported rudders, propeller shafts and struts subject of removal and refit during engine replacement. Single missing port engine inboard forward motor mount fastener appears stable. Sea valves appear operational. Blooms at heat exchangers indicate cooling system service coming due. Local oil “weeps” noted to pads under engine.

Electrical

Wiring: Up graded marine type installed 2010. Stranded and loomed. GFIC equipped. Batteries: 12-voltLocation of switchboard: 110 VAC 50 amp and 12-VDC 100/150 amp main fuse and breaker panel in house. Battery isolation switch. Battery inverter / charger. Galvanic isolator.

Pumps and Auxiliaries

Electric 3) auto-bilge pumps with high water alarms.

Radio and Electronics

Radio: Ratheon VHF Positioning: Local area paper chart. RD-30 GPS

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

5 of 38General Condition and Valuation

Report of Survey

Compass: Magnetic and electronic.Depth: Konel flasher.Radar: 1623 Furuno

Tanks Accommodations:

Fuel total capacity: 250 USG Berths: Sleeps four in two cabins.Material: Aluminum Galley stove: 3 burner electric oven. Location: Aft offset to port under berth. Three burner ceramic top (not fit Where Ventilation: Blowers with sea braces). Microwave.Fills: To deck Refrigeration: Whirlpool electric Feed lines: Marine standard with freezer. Ice maker.Water tanks: Plastic Lavatory: Two vacuum heads. Other: New water heater.

Safety Equipment

Portable: Three 3.5-lb dry chemical.Fixed System: YesGround tackle: Bruce “working” type anchor with 5/16” chain and rode. Plank and roller. Electric capstan. Life jackets: 8) Adult PFDs.Buoyant cushion: Throw devise.Flares/Horn/Bell: Yes.Navigation: To international rule. Small Boat or Other Outfit: Cushion helm seats, bow and cabin top hand rails, tank gauges and swim platform. Hitachi flat screen TV. Sound system.

This survey sets forth the condition of the vessel as found without removal of bulkheads, paneling or other portions of the structure and without opening the machinery and with consideration to the USCG, NFPA and ABYC requirements believed applicable. It represents the honest and unbiased opinion of the undersigned, but in no event is to be considered a warranty either specified or implied. This report also takes into consideration in way of content and format for the standards and practices outlined by Society of Accredited Marine Surveyors (SAMS) and the National Association of Marine Surveyors (NAMS).

March 12, 2014 Reviewed and Approved Leroy J. Lester of Lester and Lester Marine Surveyor, Inc. NAMS Certified #105-683 William J. FoxAttending and Reporting Marine Surveyor

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6 of 38General Condition and Valuation

Report of Survey

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Hauling and blocking port forward looking aft

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

7 of 38General Condition and Valuation

Report of Survey

Hauling and blocking port aft looking forward

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

8 of 38General Condition and Valuation

Report of Survey

Transom

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

9 of 38General Condition and Valuation

Report of Survey

Corroded anode studs being replaced at this time with attention to material quality

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

10 of 38General Condition and Valuation

Report of Survey

Anode studs are being replaced. Starboard whip strut bearing

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

11 of 38General Condition and Valuation

Report of Survey

Hub nuts are backwards fit. Local galvanic corrosion evident.

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

12 of 38General Condition and Valuation

Report of Survey

Galvanic corrosion evident at Rudder foundation fasteners.

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

13 of 38General Condition and Valuation

Report of Survey

Propeller and reverse fit hub nuts

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14 of 38General Condition and Valuation

Report of Survey

Local galvanic corrosion at rudder only at paint deprived areas

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

15 of 38General Condition and Valuation

Report of Survey

Port running gear

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

16 of 38General Condition and Valuation

Report of Survey

Local missing swim step fasteners

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

17 of 38General Condition and Valuation

Report of Survey

Bow deck and anchor windlass

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18 of 38General Condition and Valuation

Report of Survey

Bow looking aft

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19 of 38General Condition and Valuation

Report of Survey

Shaft log

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20 of 38General Condition and Valuation

Report of Survey

Newer electrical buss

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21 of 38General Condition and Valuation

Report of Survey

Newer electrical panel

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

22 of 38General Condition and Valuation

Report of Survey

Galley

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23 of 38General Condition and Valuation

Report of Survey

Saloon

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24 of 38General Condition and Valuation

Report of Survey

Port engine

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25 of 38General Condition and Valuation

Report of Survey

Starboard engine

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

26 of 38General Condition and Valuation

Report of Survey

Missing port inboard motor mount

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

27 of 38General Condition and Valuation

Report of Survey

Blooms at engine heat exchangers

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

28 of 38General Condition and Valuation

Report of Survey

Chafe protection required at engine hose

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

29 of 38General Condition and Valuation

Report of Survey

Engine and transmission oil weeps

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

30 of 38General Condition and Valuation

Report of Survey

Generator hour meter

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

31 of 38General Condition and Valuation

Report of Survey

Debris in bilge due for cleaning

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

32 of 38General Condition and Valuation

Report of Survey

Bilge pump terminals becoming corroded.

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

33 of 38General Condition and Valuation

Report of Survey

High water alarm being serviced at this time.

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

34 of 38General Condition and Valuation

Report of Survey

View from bridge

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

35 of 38General Condition and Valuation

Report of Survey

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

36 of 38General Condition and Valuation

Report of Survey

2/24/14 8:26 AMVessel Documentation Query

Page 1 of 1http://www.st.nmfs.noaa.gov/pls/webpls/cgv_pkg.vessel_id_list

Coast Guard Vessel DocumentationData found in current database.

Vessel Name: ARIEL

USCG Doc. No.: 915010Vessel Service: RECREATIONAL IMO Number: *Trade Indicator: Recreational Call Sign: *

Hull Material: WOOD Hull Number: 6921Ship Builder: * Year Built: *

Length (ft.): 45Hailing Port: SAN DIEGO CA Hull Depth (ft.): 8.4

Owner:ARIEL TOURS LLC2411 2ND AVENUE SAN DIEGO, CA 92101

Hull Breadth (ft.): 14.7Gross Tonnage: 37

Net Tonnage: 29Documentation Issuance

Date: February 26, 2013 Documentation ExpirationDate: March 31, 2014

Previous Vessel Names:

KLYME ABOARD MAD FER IT ARCADIA PATRICIA MADAME QUEEN

Previous Vessel Owners:

ALEXANDRA PONCE DELEON RONALD WEISKOPF DRUSILLA B GRUBB WILLIAM J KESSLER

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

37 of 38General Condition and Valuation

Report of Survey

2/24/14 8:28 AM(Power) Antique and Classic Boats For Sale

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48' Grand Banks Motor Yacht 1975 149,000 P U T D W Sarasota, FL, United States

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48' Rampart 48 1953 79,771 P U T D W France

48' Rampart Motor Yacht 1969 98,500 P U T D W Napa, CA, United States

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46' Grand Banks Alaskan 46 1973 273,506 P U T D W Croatia

45' 46' Alaskan Pilothouse 1967 80,000 P U T D W

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45' San LorenzoSanLorenzo... 1971 27,488 P U T D W Rome Tecnomar Yard, Italy

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48' Monk DesignBRIDGEDECKCRUISERUS$ 79,500LaConner, WA

47' StephensRAISED DECKUS$ 95,000Isleton, CA

44' Hagg 44US$ 199,428Mallorca, Spain

47' 7 " LaurentGiles 48. CLASSICUS$ 185,544GERONA, Spain

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Function of a Marine Surveyor:

A Marine Surveyor is a person with knowledge of marine facilities, vessels and equipment who, when requested, conducts inspections and renders reports concerning conditions found and opinions relative to those conditions. Ordinarily the Marine Surveyor has experience, both theoretical and practical, with respect to the vessels, facilities or equipment subject of concern. The practice of a Marine Surveyor may include condition, damage or repairs to Hull, Machinery, Cargo and Facilities. To maintain objectivity it is important the Marine Surveyor not have economic interest in repair facilities, vessels or other services associated with Marine Trades.

Surveyors:

William Jessop Fox History from 1985

Former USCG licensed Master/Mate (500T/3000T) with Sail, Tow, Radar and Fire Fighting Endorsements. Experienced ocean navigation and maintenance of hull and machinery associated with large power and sail vessels and small craft. Past apprentice, National Association of Marine Surveyors. Former owner Frank K. Wyatt Marine Surveyors Inc. 1997-2012. Yard Manager, Nielsen Beaumont Premier Yacht Works, San Diego, Calif. 2012-2013

Douglas L. Wright History from 1983

Yacht sales and service, marine mechanic, Refit and or commissioning of new yachts as well as Captain and or Crew of various vessels private and commercial. Experienced with hull and machinery associated with large power and sail vessels and small craft. Past apprentice, National Association of Marine Surveyors Inc.Former surveyor of Frank K. Wyatt Marine Surveyors Inc. Current apprentice (NAMS) National Association Marine Surveyors under Leroy Lester NAMS No. 105-683

Fees and Expenses:

For the most part fees are presented and treated as “not to exceed” up to 50-feet. Expenses will be charged in addition to fees when attendance is requested outside of the local area. Travel, lodging and food expenses will be charged in addition to fees. Daily rate may be charged for attendance outside of the immediate area. Local area is within approximately five miles.

Local Area, Point Loma 92106 General Condition and Value (per foot) $16.00 Daily rate in area (per day or part) $825.00 Daily rate outside area (per day or part) $1,000.00 Hourly Rate in area (per hour or part) $140.00 Minimum Fee $90.00 Highway mileage expense (per mile) $ 1.00 Expenses (unless other arrangements) Cost plus 10% (National and

International)

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2726 Shelter Island Drive #182 San Diego California 92106 (619) 548-3745 File No. 14-12B

38 of 38General Condition and Valuation

Report of Survey


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