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Lean Marine Survey Pty Ltd

ABN 51 121 511 680

Marine Surveyors & Loss Assessors

Commercial Hulls 133 Willowbend Road Phone: (03) 6229 9242Fishing Vessels Kingston Tasmania 7050 Fax: (03) 6229 9242Racing Yachts Mobile: 0404 84 1304Pleasure CraftCargo

SURVEY REPORT AND VALUATION“P.O.W.”

Farr 40 One Design

Assigned for insurance purposes and prepared exclusively for:MRRC Pty Ltd

PO Box 1075Sandy Bay Tasmania 7006

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Vessel: “P.O.W.” Type: Farr 40 One Design

Registration: 36469 ` Expires: December, 2010

HIN No: AU-WWA113484AL2 Builder’s Plate: DK402181000

Place of Survey: RYCT - afloat Date: 14th July, 2010

Builder: DK Yachts, Malaysia Year: 2000

Designer: Farr Yacht Design Ltd

Length: 12.41m Beam: 4.03m Draught: 2.6m

1. Hull Exterior

Construction: GRP Epoxy, e glass, foam balsa composite – round bilge - carvel

Underwater Surface: Unsighted

Topsides: 2-pack marine gloss paint with gold star amidships with strippingCondition good

Stemhead Fitting: Stainless steel fabricated

Skin Fittings: GRP integral

2. Hull Interior

Frames: Laminated integral ring and web frames

Beams: Laminated integral ring and web frames

Stringers: On internal furniture moldings and sub floor aluminium keel support frame

Bulkheads and Ring Frames: 7

Seacocks: Marine grade nylon

Fuel Tanks: Aluminium – 75 litres .

Water Tanks: Nil

Steering: Wheel to quadrant with spectra steering cables Aluminium emergency tiller extension Condition good

3. Deck Gel coat finish integral non skid finishCondition very good by visual inspection only

4. Cockpit Sole 2 pack non skid finish

5. Safety Equipment

Anchor: 10kg Danforth

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Spare Anchor: 10kg Danforth

Flares: To Yachting Australia Category 3

Fire Extinguishers: 1 x 0.9kg dry chemical

Lifejackets: 10 x PFD1 inflatable yokes

Navigation Lights: Tested

Compass: Yes

EPIRB: Pains Wessex Res Q Sat RB6 406MHz S/N 603866 Hex ID BEEE64Db6800250Expiry 02/2012

Pulpit: Stainless steel

Pushpit: Stainless steel port and starboard quarter rails

Stanchions and Lifelines: Stainless steel stanchions with 1 x 19 stainless steel lifeline wires

Bosuns Chair: Yes

Life Rings: 1 x horseshoe

Throw Bag: Yes

Torches: 2 x waterproof

6. Accommodation and Galley Equipment

Stove: Maxie 2 burner ‘Metho’

Fridge/Freezer: Icebox

Toilets: Manual marine

Electronic Equipment: GME Electrophone 100W AM/FM radio with CD player

7. Deck Hardware and Winches

Primary Winches: 2 x 3 speed Lewmar

Secondary Winches: 2 x Lewmar 44ST two speed

Halyard Winches: 2 x Lewmar 44ST two speed

Other fittings: Harken roller bearing throughout Spinlock rope clutches 1 x aluminium deck hatch Full sun cover, boom cover, spinnaker cover, wheel cover

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8. Machinery

Engine Type: Yanmar 3GMSD30 20.1Kw @3,600prm Hours: Not recorded S/N M140139203

Installation: On moulded GRP engine beds with flexible engine mountsInstallation good Gear Box: Yanmar sail drive

Shaft: In sail drive

Shaft Seals: N/A

Propeller: 2 bladed bronze geared folding – not sighted

Alternator: 1 x 12V

Exhaust: Wet

Fuel lines and Filters: Braided rubber fuel rated linesCondition of lines and filters good

Engine Electrical Harness: Installation satisfactory

Electrical Fitting: All wiring securely harnessed

Batteries: 3 x 12V housed in acid proof boxes

Bilge Pumps –

Manual: 2 x Munster Simms 25mm single diaphragm

Other Pumps: 1 x 12V domestic freshwater Nautec hydraulic rig tension – backstay

9. Special Equipment

VHF Radios: Icom IC-M45 Power up OK

Satellite Navigation/Echo Sounder: Raytheon RC630

Additional: 4 x B & G 20/20 repeater units 2 x B&G 2000 Hydra MFD

10. Spars, Rigging and Sails

Mast Material: Spar craft carbon mast, aluminium boom and 2 spinnaker poles, gas boom strut

Rig Description: Fractional rig with double swept back spreaders, stainless steel rod standing rigging and running rigging of braided yacht rope and Spectra.Tuff Luff fitted to forestay with new carbon foil 2010

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Rig Age and Service: The mast was removed from the vessel in 2009 and inspected by a qualified yacht rigger however the rod rigging may be original.

Chainplates: Stainless steel plate

Mast Step: Keel stepped

Base Attachments: Mast keel stepped on aluminium sub floor frame

Sail Inventory: Carbon main on boom 2006 carbon main Kevlar main in bag 2006 3DL light 2003 3DL light 2006 3DL medium 2 x 2003 3DL medium 2006 3DL heavy 2003 3DL heavy No 4 3DL 2 x No 4 Storm jib Try sail 1.5 Spinnaker 2010 masthead 0.5 2009 masthead 0.75 2008 masthead 0.75

General Remarks This Farr 40 is in good condition throughout with maintenance the same. She carries the appropriate safety equipment to comply with Yachting Australia Category 3. She receives regular ongoing maintenance and is in a sound and seaworthy condition.

NOTE:

We have not inspected woodwork or other parts of the structure which are covered, unexposed or inaccessible and we are, therefore, unable to report that any such part of the structure is free from defect.

No internal inspections of any tanks or enclosed vessels on board have been undertaken.

Please note that the inspection was undertaken whilst the vessel was in her marina berth at the RYCT and no sea trials were undertaken.

Please note that the vessel’s engine was not started during the course of the inspection referred to in this report. No warranty or representation as to the condition of the engine can be made.

Fibreglass vessels can be subject to osmosis, a condition which causes a breakdown of the gel coat, and which can be expensive to repair. As the vessel was in the water at inspection, it was not possible to examine below the waterline. If you are concerned about the possibility of osmosis, the vessel should be slipped and a careful examination undertaken. However, you should note that the condition can be very hard to detect, especially where there has been a build up of anti-fouling paint. You must take into account that any fibreglass hull may contain osmosis which is not yet apparent, and that substantial work can be required to rectify the condition, and that this can be a costly exercise.

Our appraisal of the value of your vessel and fittings is based on our assessment of the likely market value of the vessel at this time at 14th February, 2010. However, it is not a security valuation and you should also note that the value of a vessel at any given time depends entirely on the available market. The value could increase or decrease with market fluctuations, and with any changes in

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the appearance and condition of the vessel. The value of any vessel depends on market forces, the condition of the vessel, her appearance, the quality of the build, the quality of the materials used, and prevailing economic and social circumstances. You should also note that as a general rule the cost of a replacement vessel is often far higher than the market value of a vessel, and this should be taken into account when insuring the vessel. Further, the market value should be expected to decrease in time as the vessel ages, despite the condition in which the vessel is kept. The value should not be expected to remain static, let alone increase.

Date: 22nd July, 2010Terry Lean A.A.I.M.S.Lean Marine Survey Pty Ltd