REPORT OF MARINE SURVEY Pre-purchase condition & value and Insurance condition & value. of the vessel

"Grace" Liberty 28 1981 Cutter

PREPARED EXCLUSIVELY FOR: Stephan Hoglund P.O. Box 850 Grand Marais MN 55604

CONDUCTED BY: John Gulick, SA Society of Accredited Marine Surveyors® on

1/18/2008

January 19, 2008 Stephan Hoglund P.O. Box 850 Grand Marais, MN 55604

Dear Stephan, Thank you for allowing me to survey the vessel you are considering for purchase. I believe that you will find the survey report to be a very thorough and informative description of your yacht’s systems, condition and value. It was a pleasure meeting you and discussing my findings with you as the survey progressed. The survey report includes a full description of the vessel and my findings, which can be used as a checklist of things to do and/or negotiate in your decision to buy this yacht. Should you have any questions regarding the survey report findings or recommendations, feel free to contact me. The marine surveying business is built on reputation and referrals, therefore, if I can be of further service to you or your friends, please don’t hesitate to call. Thank you for your business. I wish you, your family and friends a happy and safe boating season this year and many years to come.

Sincerely, John Gulick, SA Gulick Associates Member Society of Accedited Marine Surveyors®

Survey Report Table of Contents Major Systems Surveyed

Page No.

GENERAL SURVEY INFORMATION

1

HULL INSPECTION

3

TOP DECK & SUPERSTRUCTURE

6

RIGGING & SAIL HANDLING

8

SAILS

10

NAVIGATION ELECTRONICS

12

CABIN INTERIOR APPOINTMENTS

14

ELECTRICAL SYSTEMS

16

PROPULSION SYSTEM

18

STEERING SYSTEM

20

TANKAGE

20

SAFETY EQUIPMENT

22

AUXILIARY EQUIPMENT

24

SEA TRIAL

24

Marine Survey by Gulick Associates

GENERAL SURVEY INFORMATION SCOPE OF SURVEY Report file no:

0000024 Liberty 28 1981 Hoglund.

Inspection date(s):

1/18/2008.

Date of written report:

1/18/2008.

Type of survey:

Pre-purchase condition & value and Insurance condition & value.

Conducted by:

John Gulick, SA

Requested by:

This survey was performed at the request of the purchaser, Stephan Hoglund, who was present at the time of the survey.

Purpose of survey:

Assess the overall condition and value of vessel for pre-purchase decision making. Assess the overall condition and value of vessel for purposes of obtaining insurance and insurance underwriting.

Intended use:

Pleasure-Gulf Coast.

Vessel surveyed at:

American Boat Storage, Port Charlotte, FL.

Weather conditions:

Partly cloudy.

How survey conducted:

The vessel was surveyed both while afloat & hauled out of the water.

Sea trail:

A sea trial was performed as part of this survey.The results are included in the Sea Trail section.

Sailboat rigging:

All standing rigging was installed and checked only at eye level and below unless otherwise specified.

VESSEL CONDITION & VALUE Condition rating:

AVERAGE CONDITION.

Estimated fair market value:

$21,750.

Estimated replacement cost:

$80,000 per BUC research.

NOTE:

The overall vessel condition and value was established after a complete inspection of stated vessel, the results of which are included in this report of survey. The estimated fair market value and replacement cost includes all listed auxiliary equipment. See "Condition & Value Summary" section for additional details.

SURVEY REQUESTED BY Client name:

Stephan Hoglund.

Street address:

P.O. Box 850.

City/State/Zip:

Grand Marais MN 55604.

Business phone:

218 387 1752.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 1 of 32

Cellular phone:

218-370-1314.

Residence phone:

218 370 1314.

Buyer's experience:

Buyer has prior boating experience.

VESSEL INFORMATION Vessel Yr/Make/Model:

Liberty 28 1981 Cutter.

Vessel name:

Grace.

Hull ID number verification:

FLZ1662580781.

FLZ1662580781

State registration no.:

FL5210GR.

State validation sticker:

Expired.

Manufacturer/Builder:

Liberty Yachts Inc, Riviera Beach FL.

Year built:

1981.

Vessel description:

The "Grace" is a 1981 double ender, cutter rig with keel hung tiller steering. Her mast is keel stepped and the standing rigging is Nav Tec stainless rod, with double lower shrouds and a baby stay. She has a rigid boom vang and a whisker pole. She is in average condition and in need of repainting and polishing. Below deck she has a teak and holly floor and teak bulkheads, the wood work is in good condition, The navigation station is to port as is a 1/4 berth. The galley is to port amidships with a double stainless steel sink with foot pump, propane stove and oven and a Norcold refrigerator. She has a settee to starboard which folds out to a berth with storage underneath. The head is forward and to starboard. It has a manual marine head with y value and holding tank. Forward is the V berth.

VESSEL SPECIFICATIONS Type:

Fiberglass.

Length overall (L.O.A.):

28 feet, per BUC Research.

Beam:

9'7" per BUC Research.

Draft:

4 foot per BUC Research.

Displacement:

12000 per BUC Research.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 2 of 32

Overhead clearance:

42 feet per broker/owner.

SURVEY STANDARDS Standards followed:

This survey was completed using as reference the federal regulations and amendments issued and enforced by the United States Coast Guard under the authority of Title 33 and Title 46 of the United States Code of Federal Regulations (CFR's). In addition the American Boat and Yacht Council (ABYC) and National Fire Protection Association (NFPA-302) voluntary standards were used as reference during the survey. These ABYC and NFPA voluntary standard practices are generally followed by most vessel manufacturers today.

SURVEY INSPECTION COMMENTS Comments:

• All systems and components inspected and described herein are considered serviceable and/or functional except as indicated in the survey report and recommendations section. Electronic devices and instruments were checked for power up only - not for functionality. If a component is not identified in this report, it was not inspected. • "Priority I Recommendations" are related to Safety & Regulatory findings and are listed in RED in the report. • "Priority II Recommendations" are related to Maintenance & Standards findings and are listed in BLUE in the report. • "Other Recommendations" are findings that are relatively minor in nature and are listed in GREEN in the report. • It is the nature of marine vessels that deterioration, wear and accidents do occur and as such, this report therefore represents the condition of the vessel only at the time the survey was conducted.

HULL INSPECTION HULL EXTERIOR Construction material:

Fiberglass, with white gel coat surface.

Hull cosmetics:

Hull needs cleaning and polishing. Deep scratches should be filled in with matching gel coat.

Stem:

Solid, no cracks on external inspection.

Rub rail:

Good condition with minor scrapes.

Port Lights:

Port side:5 - opening type. Starboard side: 5 - opening type. These are brass.

Boarding ladder:

Plastic and was located on the forward starboard deck.

Moisture/Delamination:

Percussion hammer used to check for delamination on hull bottom. None found. No moisture meter readings taken due to early morning dew with resulting wet hull.

Condition summary:

Overall the hull was in fair to good condition.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 3 of 32

HULL BOTTOM Construction material:

Fiberglass.

Bottom paint:

Anti-fouling bottom paint in need of renewal. RECOMMENDATION: Remove all loose flaking paint, prep and repaint entire bottom with fresh bottom paint before next launch.

Needs bottom paint

Osmotic blistering:

No evidence of blisters was found on hull bottom during bottom inspection.

Blister comments:

Blisters are an unknown factor on all boats and if not currently present, there is no guarantee that they will not appear in the future. Blisters have a tendency to dry out over winter storage unless severe or large. Blisters (if any) best appear after vessel has been in water for an entire season. In addition, the symptomatic evidence of blistering can be obscured by bottom coatings, a dry storage period during which blisters spontaneously depressurize, bottom laminate sanding, and other conditions or actions. Recommend full inspection for blisters immediately after haulout and power wash. Surveyor has no firsthand knowledge of the history of bottom maintenance, blistering, repairs or prophylactic coatings on this vessel.

Moisture/Delamination:

Moisture meter readings were not taken due to vessel bottom wet from rain the prior day and morning dew. Percussion hammer testing showed No evidence of any delamination on hull bottom.

Grounding damage:

None noted.

Thru Hulls:

All thru-hull fittings were adequately sealed and bonded to hull as sighted from exterior. Serviceable.

Transducers:

Transducers are adequately sealed and bonded to the hull.

Strainers/Scoops/Screens

All strainers/screens are well secured to hull bottom. Clear of debris.

KEEL Keel type:

Shoal keel - lead.

Keel condition:

Keel is well secured and well faired into hull. No cracks or separation sighted.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 4 of 32

PROPELLER(S) Number and type of blades:

Three blades fixed, Bronze alloy.

Three blade prop

Prop condition:

Prop is in good condition with no cracks, corrosion or bent, nicked or chipped blades.

PROP SHAFT(S) / STRUT(S) Cutless (shaft) bearing(s):

Good condition. No play found in cutless bearing.

RUDDER(S) Rudder type:

Fiberglass, Well secured. No abnormal horizontal or fore/aft movement in rudder.

ANODES Shaft:

Prop anode at end of shaft. Monitor and replace as necessary.

NOTE:

Monitor all anodes frequently and replace when they are no more than 50% wasted. Anodes are normal replacement items designed to protect the running gear from electrolysis. Keep spares aboard vessel.

HULL INTERIOR & STRUCTURAL COMPONENTS Bilge(s):

The bilge had only minimum water which was just below the bilge pump pickup level. The bilge pumps operated satisfactorily.

BELOW WATER LINE THRU-HULLS Sea valve condition: Comments:

All thru hull fittings and associated valves were checked. All the valves are of marine bronze, are of the barrel or ball type and all appeared to be in good condition and were easy to operate.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 5 of 32

TOP DECK & SUPERSTRUCTURE MAIN DECK & FITTINGS Construction material:

Fiberglass Unknown core.

Deck Surface:

White with molded in non skid fiberglass surface.

Moisture/Delamination:

Moisture meter readings not taken due to wet deck surface and prior day rain fall.

Delamination:

Percussion hammer used to test deck surface and no delamination was found.

Deck Hatches:

The deck hatch was in good condition with only minor leakage. Recommend repair or replacement.

deck hatch signs of minor leaking

Bowsprit:

Teak, with dual anchor rollers.

bow sprit dual anchor rollers

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 6 of 32

Bow pulpit/rail:

Stainless steel.

Bow Pulpit

Stern pulpit/push pit:

Teak capped with stainless steel stanchions.

stern push pit

The starboard aft toggle, supporting stern push pit is cracked and needs to be replaced.

Broken toggle needs to be replaced

Stanchions/side rail(s):

Stainless steel, well secured.

Lifeline(s):

Double, Vinyl covered.The covering are showing signs of wear and should be monitored.

Toe rail(s):

Teak toe rail, well secured. Teak toe rails are in need of cleaning and protection from elements.

Chocks and cleats:

Horn cleats, Well secured.

Anchor locker:

Below deck, accessed from below. Lines/chain run thru deck pipe.

Scuppers/deck drain(s):

Drains are clear, hoses secure and drains overboard.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 7 of 32

Grab rail(s):

Sides of cabin top, Grab rail is teak.These are in need of refinishing.

Exterior teak:

Teak varnish coating is starting to peel. ---Needs refinishing.

BRIDGE DECK / COCKPIT Sole:

FRP (fiber reinforced plastic) with molded in non skid in need of cleaning and refinishing.

Scuppers/deck drain(s):

Yes. Drains are clear, hoses secure and drains overboard.

Door(s):

Teak hatch boards for companionway entrance.

Storage:

One side cockpit storage locker.

Seating:

U-Shaped seating in open cockpit area.

RIGGING & SAIL HANDLING MAST(S) / BOOM(S): Main Mast(s):

Anodized aluminum.

Main mast step:

Keel stepped. Mast boot is in fair condition with some cracking. Monitor for future leakage.

Main spreaders:

Two blade.

Deck/Spreader lights:

Single spot light on mast face.

Gooseneck(s):

Well secured and no signs of abnormal wear.

Boom(s):

Extruded aluminum.

Boom condition:

Good condition.

FURLING GEAR: Type:

Hood 810 Sea Furl, needs lubrication.

Hood furler needs lubing

STANDING RIGGING: All Stays & Shrouds:

Rigging only inspected at deck/eye level as mast was up.

Stays / shrouds:

All stays and shrouds are Stainless steel Nav Tec rod. Appears to be in good

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 8 of 32

condition and well secured based on deck level visual.inspection only. Chainplates:

Chain plates appear to be well secured on the outside. However there is limited access inside and owner is advised to periodically remove teak inside casing cover over chain plates and inspect for corrosion.

Turnbuckles:

Nav Tec style.

Cotter pins:

Installed and secure on all turnbuckles.

HALYARDS: All halyards:

All halyards sighted are colored yacht braid and in good condition. No frayed or worn lines sighted.

SHEETS: Main sheeting:

Aft boom.

Sheets for head sail(s):

Good condition.

WINCHES: COCKPIT:

Four.

Type / Condition:

2 Barlow, #20 Winches spin free, appear to be adequately lubed/serviced. 2 barlow, #16.

MAST MOUNTED:

Three.

Type / Condition:

Barlow #15 Winches spin free, appear to be adequately lubed/serviced.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 9 of 32

OTHER SAIL HANDLING EQUIPMENT: Boom Vang:

Line controlled rigid boom vang. Well secured and appears functional.

Sailtracks / Cars:

Securely mounted on both side decks.

Travel cars

Whisker pole(s):

mounted on deck.

SAILS SAILS: -->MAINSAIL: Sail Description / Condition:

Installed on mast/boom. Main, Horizon, with two reef points, with partial battens, it appears to be in good condition, no holes or split seams sighted and head, tack, clew and grommets intact.

Main sail

-->FORESAIL:

Installed on forestay furling foil.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 10 of 32

Sail Description / Condition:

Furling Genoa, Sighted some loose sail material on UV panel. Sail is showing signs of its age. RECOMMENDATION: Have sail fully inspected and repaired as necessary by qualified sail maker

loose / torn UV strip

-->FORESAIL2: Sail Description / Condition:

Hank on stay sail in good condition. Staysail, Hank on sail, Appears in good condition, no holes or split seams sighted and head, tack, clew and grommets intact.

stay sail good condition

Battens:

Main sail - fiberglass battens-Appear serviceable.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 11 of 32

NAVIGATION ELECTRONICS NAVIGATION ELECTRONICS Compass(es):

Plastimo, mounted in bulkhead.

VHF radio(s):

Standard Horizon, powers up.

Autopilot(s):

Navico Auto tiller, Not powered up.

Navico Auto tiller

Depth sounder(s):

Signet powers up.

Depth sounder

GPS:

Garmin gps 50 The GPS did not power up. RECOMMENDATION: Repair or replace as required.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 12 of 32

Loran "C":

DXL 6350 The LORAN did not power up. RECOMMENDATION: Repair or replace as required.

Loran and gps not working

ENGINE INSTRUMENTS AND CONTROLS Throttle and shift control(s):

OMC, Levers for each engine throttle/shift controls. Functional.

Engine status:

inside instrument pod on bulk head.

Volt:

powers up.

Hour meter(s):

690.2 which does not appear to be actual hours.

Oil pressure:

Powers up.

Tachometer(s):

Powers up, however it had considerable variation. Recommend repair or replacement.

Temperature:

Powers up.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 13 of 32

Fuel:

The fuel gauge did not appear to be operational and should be repaired or replaced.

CABIN INTERIOR APPOINTMENTS MAIN SALON Style:

Traditional, Teak bulkheads.

Navigation station:

Table with storage under top located on the port side with a fold down chair.

Nav Station

Water intrusion signs:

Some water tracks sighted on sides of hull on inside.---Trace source and seal off all water intrusion points.

Fabric & cushions:

Fair condition. Some seams splitting.

Curtains:

Yes, curtains, -- cloth.

Sole:

Teak & holly cabin sole installed.

Light fixtures:

12 volt cabin lights throughout the vessel.

Storage:

Storage under and back of seats. Hanging locker in V-berth.

Cabin fans:

Yes, 12 Volt.

Condition:

Interior is in good condition for its age.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 14 of 32

GALLEY Location:

Port side, with Formica type surface counter top, and teak trim. .

Stove:

Royal Queen. two burner, LPG.

Refrigeration:

Norcold, Tec II, 12 Volt, 110V Dc powers up.

Water system:

Manual cold only, Manual foot pump.

Sink(s):

Twin stainless steel deep well.

DINETTE Table type:

Table drops down to convert to additional sleeping berth.

Seating:

Bench seating.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 15 of 32

BERTHS / STATEROOMS Berths:

Three, V-berth sleeps two, Quarter Berth sleeps one and Convertible dinette berth.

HEAD(S) Number/Location:

One, Starboard side.

Toilet(s):

Manual flush pump, Jabsco.

Raw water supply:

Raw water intake thru bronze sea cock. Hose is secure.

Sink:

Stainless steel in need of replacement.

Head sink needs repair or replacement

ELECTRICAL SYSTEMS D.C. ELECTRICAL SYSTEMS D.C. Voltage system: Number and type of batteries:

12 Volt system. One, 8D Lead acid house battery, one 12 volt Maintenance free starting battery.

Storage:

Dedicated battery compartment with cover. Secured with straps.

Positive terminal covers:

Batteries are in a dedicated battery box with a cover. In compliance.

Battery selector switch:

Yes Rotary switch is functional.

Battery monitor:

Switched analog gauge to test battery condition.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 16 of 32

Charging system:

Alternator, Battery charger -- Guest 2615 15 amp.

Distribution panel:

Yes located at navigation station.

D.C. meter(s):

Analog type.

D.C. wiring secured:

All wiring runs are properly secured every 18" per ABYC E-11 recommendations.

A.C. ELECTRICAL SYSTEMS A.C. Voltage system:

30 Amp - 120 Volt system.

Shore power inlet(s): Shore power cord(s):

30 AMP.

Distribution panel(s):

Yes combined with DC power panel.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 17 of 32

PROPULSION SYSTEM MAIN ENGINE(S) No./Type/Cylinders

One, Inboard Diesel, Naturally aspirated. Two cylinders.

Volvo engine

Make / Model:

Volvo MD2B.

Serial no(s):

Main engine: Not sighted.

Engine(s) hours:

690.2 hrs on meter.

Hoses and clamps:

Good condition-No cracks sighted.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 18 of 32

Belts and pulleys:

Belt dust sighted on engine face. RECOMMENDATION: Have tension and alignment checked to prevent belts from abnormal wear and throwing belt dust into engine compartment.Alternator pully and fly wheel did not appear to be properly aligned. This should be repaired to avoid excessive belt wear.

Align Pully and flywheel

Cooling system(s):

Raw water cooled, Raw water strainer installed.

Fuel pump(s):

Engine mounted.

Fuel filter(s):

Remote mounted.New one installed at time of survey.

Engine mounts and beds:

Engine mounts appear to be well secured to the support stringers minor rust on starboard aft mount.

Engine(s) operated:

Yes on sea trial. See sea trial section for details.

EXHAUST SYSTEM Discharge location(s):

Aft corner.

Piping/Clamps:

Securely double clamped as required.

Exhaust manifold:

No cracks or water tracks sighted. Appears to be in good condition as sighted.

Muffler(s):

Canister.

TRANSMISSION(S) Propeller shaft(s):

No pitting, cracks or corrosion sighted.

Stuffing box(es):

Stuffing box and packing gland, was bronze hex nut type. The packing gland was dripping beyond normal standards. This should be repaired. then it should be monitored frequently for leakage and proper adjustment.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 19 of 32

STEERING SYSTEM STEERING SYSTEM Steering station location(s): Type:

Cockpit. Tiller steering. Tiller hardware in place and secure on rudder head mount.There is a spare tiller.

Tiller

Emergency tiller:

Yes sighted and available for emergency use.

Condition summary:

The tiller and rudder appeared to be in good condition.

TANKAGE FUEL TANK(S) No Tanks/Capacity:

Two tanks. Reported 50 Gallons.

Tank(s) location(s):

Engine space, Port and starboard sides.

Tank material:

Galvanized.

Shut off valve(s):

yes on port and starboard engine sides.

Vent line/location:

located in aft stanchions

Filling line(s) located:

Side decks. There is slight rusting evident on fill caps.

Tank(s) secured:

Tanks appear to be secured, however there was limited access.

Tank(s) on flat surface:

Yes.

Inspection/cleaning access:

Limited.

Tank(s) condition:

Visually good (where accessible)

FRESH WATER TANK(S) No & locations of tanks:

Under V-berth area.

Capacity:

Reported 70 gallons.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 20 of 32

Supply lines:

Reinforced plastic.

Shut off valve(s):

Manifold.

Filling line(s) located:

Side deck.

Tank(s) material:

Unknown.

Tank(s) secured:

Yes.

Inspection/cleaning access:

Limited.

Tank(s) condition:

Not sighted.

Water pump(s):

Manual foot pump.

Filter(s):

In line filter.

HOLDING TANK(S) - BLACK WATER No & Location of tanks:

One located in head bulkhead.

Tank(s) Material:

Bladder tank.

Capacity:

Unknown.

Tank(s) secured:

Yes.

Tank(s) condition:

Visually good (where accessible)

Inspection/cleaning access:

Good.

Lines:

Hose.

Discharge line(s) located:

The waste discharge hose is connected to a "Y" Valve fitting which one hose goes to holding tank with a bypass shutoff valve and another hose to a thruhull overboard discharge with a functional seavalve.

Y valve(s) installed:

Yes with locking device.

Vent(s) location(s):

Side hull.

Vented loop(s):

Yes. Functional.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 21 of 32

LPG (PROPANE) TANK(S) Tank(s) condition:

One tank canister type.

Propane tank

Secured:

Yes.

Tank(s) location(s):

Located under navigation table.

Fitted with OPD valves: Currently date qualified:

No.

Shut off valve(s):

Manual shut off only at tank. RECOMMENDATION: ABYC A-1 currently recommends that a solenoid shut off switch be installed at the tank and remote switched near each LPG appliance to shut off the propane supply in case of fire. Recommend compliance with current ABYC recommendations.

Condition summary:

The propane tank does not meet ABYC standards and should be removed or installed properly.

SAFETY EQUIPMENT U.S.C.G. REQUIRED Visual Distress Signals:

Visual distress signals are all expired. RECOMMENDATION: Replace expired visual distress signals to comply with USCG regulations 33 CFR 175.110 for visual distress signals prior to using vessel. All visual distress signals have a printed expiration date- 3 years from date of manufacture. It is recommended that expired signals be retained for backup.

Navigation lights:

All navigation lights are fully operational. The mast head light could not be checked. This should be checked for operation.

Sound devices:

Hand held air horn.

USCG placards:

Both USCG mandated placards (Oil & Garbage) are properly posted.

LIFE JACKETS & PFD's USCG Type II PFD:

Four located in starboard storage locker.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 22 of 32

FIRE FIGHTING EQUIPMENT Clean agent/Halon: FIRE EQUIPMENT OBSERVATION:

Halon unit located in engine compartment gauge indicated it was empty. This extinguisher is not required however recommend filling. Two ABC extinguishers located in main cabin, one on engine cover and one on salon wall. The one on salon wall, gauge indicated empty.Recommend replacement.

guage indicated empty

BILGE PUMPS MIDSHIP/CENTRAL BILGE:

Two pumps both were operational.

GROUND TACKLE Primary anchor:

CQR, # 35H, with undetermined length of chain and line.

Secondary anchor:

Delta Fast Set, # 35H, with undetermined length of chain and line.

Spare anchor(s):

Two spare Fortress anchors with rhode one located in starboard stern locker and the other under V-berth.

AUXILIARY SAFETY EQUIPMENT Carbon monoxide detectors:

NOTE: During the burning of any of fuels, Carbon Monoxide ( CO ) gas may be created due to incomplete combustion from propulsion systems, cabin heater or stove as well as nearby boats running generators. Adequate ventilation must be provided at all times while burning any of these fuels, but CO may also be drawn into the cabin through ventilation systems. This is especially true of boats running air conditioning. CO is a silent menace and kills without warning, therefore this surveyor recommends installation of a CO detector in any occupied spaces below decks.

Radar reflector:

Yes- Appears serviceable.

Deck spreader lights:

Not operational, recommend repair or replacement.

Search light:

Hand held 12 volt-not tested.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 23 of 32

AUXILIARY EQUIPMENT MISCELLANEOUS EQUIPMENT & ACCESSORIES Boat hook(s):

Yes.

Bosuns chair:

Yes.

Boarding ladder(s):

Yes.

Canvas/Dodger:

Cockpit dodger.

Docking lines:

Yes, assorted size and length both braided and twisted nylon.

Fenders:

Yes assorted sizes.

Rail mounted grill:

Magma Propane Grill for rail mounting.

SEA TRIAL SEA TRIAL DETAILS Date & Time:

1/18/08 at 11 am.

Vessel operated from/to:

All American Boat Storage down canal and back.

Attendees:

Owner, Broker, Buyer and Surveyor.

Vessel operated by:

Owner.

Ambient air temp:

80.

SEA TRIAL OBSERVATIONS Start test:

The engine( engine) would not start in Forward or Reverse gears at dockside.

Cranking:

The engine( ) started without excessive cranking.

Exhaust smoke:

The engine( ) exhaust smoke was minimal and appeared normal throughout the sea trial.

Cooling water:

The cooling water exhaust appeared adequate and normal.

Instruments:

The engine instruments all operated within normal operating limits at idle, cruising speed, except fuel gauge which appeared to not be working.

Steering:

The steering system operated normally/smoothly from stop to stop.

Throttle levers

The throttles operated normally/smoothly.

Transmissions

The transmissions operated normally/smoothly.

Backdown

The backdown test was satisfactory. Engine mounts secure & No unusual movement of the engine( ) was sighted.

Vibrations

There were no excessive vibrations noted at any time during the sea trial run.

Shaft Log

The Stuffing box/shaft log drip rate was excessive.

Leaks

There were no oil, coolant or other leaks observed during or after the sea trial.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 24 of 32

Other Observations:

The engine operated well at idle and at cruising rpm with all normal temperatures at the heat exchanger, riser and head. When the engine RPM's were increased the engine died. Upon inspection there was a large amount of water in the fuel line and the fuel filter was dirty and was replaced. The fuel system was bled, however the engine would not restart. A fuel injector fuel line was released to further bleed the system, however proper tools were not available to retighten the line and causing a leak in the fuel system. The engine could not be restarted and the boat was towed back to the dock for repairs. Up until that point of the sea trial the engine operated normally. It is recommend that the engine be serviced by a mechanic. It is also recommended that the fuel system be cleaned as the boat was reported to be on the hard for an extended time.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 25 of 32

INSPECTION RECOMMENDATIONS SUMMARY RECOMMENDATIONS: PRIORITY I - SAFETY & REGULATORY RECOMMENDATIONS: (MAY BE MANDATORY) The items listed are required by state laws or federal laws and U.S.C.G. regulations or are considered by the attending surveyor to represent unsafe operating conditions. Recommend these items be corrected before next use of vessel. GENERAL SURVEY INFORMATION SCOPE OF SURVEY Report file no: 0000024 Liberty 28 1981 Hoglund. TOP DECK & SUPERSTRUCTURE MAIN DECK & FITTINGS Stern pulpit/push pit: The starboard aft toggle, supporting stern push pit is cracked and needs to be replaced. TANKAGE LPG (PROPANE) TANK(S) Condition summary: The propane tank does not meet ABYC standards and should be removed or installed properly. SAFETY EQUIPMENT U.S.C.G. REQUIRED Visual Distress Signals: Visual distress signals are all expired. RECOMMENDATION: Replace expired visual distress signals to comply with USCG regulations 33 CFR 175.110 for visual distress signals prior to using vessel. All visual distress signals have a printed expiration date- 3 years from date of manufacture. It is recommended that expired signals be retained for backup. FIRE FIGHTING EQUIPMENT FIRE EQUIPMENT OBSERVATION: Two ABC extinguishers located in main cabin, one on engine cover and one on salon wall. The one on salon wall, gauge indicated empty.Recommend replacement.

PRIORITY II - MAINTENANCE & STANDARDS RELATED: (NOT NORMALLY MANDATORY) These are important maintenance items sighted which in this firm's opinion should be performed. They may also include recommendations to conform to current ABYC and NFPA-302 voluntary standards which may not have been in effect or may not have been adhered to by the builder when the vessel was constructed. Some of these, if not addressed, could lead to a Priority I safety issue and/or may result in a reduced vessel market

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 26 of 32

INSPECTION RECOMMENDATIONS SUMMARY value. HULL INSPECTION HULL BOTTOM Bottom paint: Anti-fouling bottom paint in need of renewal. RECOMMENDATION: Remove all loose flaking paint, prep and repaint entire bottom with fresh bottom paint before next launch.

SAILS SAILS: Sail Description / Condition: Furling Genoa, Sighted some loose sail material on UV panel. Sail is showing signs of its age. RECOMMENDATION: Have sail fully inspected and repaired as necessary by qualified sail maker

PROPULSION SYSTEM MAIN ENGINE(S) Belts and pulleys: Belt dust sighted on engine face. RECOMMENDATION: Have tension and alignment checked to prevent belts from abnormal wear and throwing belt dust into engine compartment.Alternator pully and fly wheel did not appear to be properly aligned. This should be repaired to avoid excessive belt wear. TRANSMISSION(S) Stuffing box(es): Stuffing box and packing gland, was bronze hex nut type. The packing gland was dripping beyond normal standards. This should be repaired. then it should be monitored frequently for leakage and proper adjustment. TANKAGE LPG (PROPANE) TANK(S) Shut off valve(s): Manual shut off only at tank. RECOMMENDATION: ABYC A-1 currently recommends that a solenoid shut off switch be installed at the tank and remote switched near each LPG appliance to shut off the propane supply in case of fire. Recommend compliance with current ABYC recommendations. SAFETY EQUIPMENT U.S.C.G. REQUIRED Navigation lights: All navigation lights are fully operational. The mast head light could not be checked. This should be checked for operation. SEA TRIAL SEA TRIAL OBSERVATIONS Shaft Log

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 27 of 32

INSPECTION RECOMMENDATIONS SUMMARY The Stuffing box/shaft log drip rate was excessive.

OTHER RECOMMENDATIONS: These are other less significant maintenance items or observations that if not addressed, could lead to more important priority issues and/or could lead to a reduced vessel market value. The cost of addressing these recommendations is generally minimal. TOP DECK & SUPERSTRUCTURE MAIN DECK & FITTINGS Toe rail(s): Teak toe rail, well secured. Teak toe rails are in need of cleaning and protection from elements. NAVIGATION ELECTRONICS NAVIGATION ELECTRONICS GPS: Garmin gps 50 The GPS did not power up. RECOMMENDATION: Repair or replace as required. Loran "C": DXL 6350 The LORAN did not power up. RECOMMENDATION: Repair or replace as required. ENGINE INSTRUMENTS AND CONTROLS Tachometer(s): Powers up, however it had considerable variation. Recommend repair or replacement. Fuel: The fuel gauge did not appear to be operational and should be repaired or replaced. CABIN INTERIOR APPOINTMENTS MAIN SALON Water intrusion signs: Some water tracks sighted on sides of hull on inside.---Trace source and seal off all water intrusion points. SAFETY EQUIPMENT FIRE FIGHTING EQUIPMENT Clean agent/Halon: Halon unit located in engine compartment gauge indicated it was empty. This extinguisher is not required however recommend filling. AUXILIARY SAFETY EQUIPMENT Deck spreader lights: Not operational, recommend repair or replacement.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 28 of 32

INSPECTION RECOMMENDATIONS SUMMARY

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 29 of 32

CONDITION & VALUE REPORT SUMMARY CLOSING STATEMENT & SIGNATURE: This report is submitted in confidence for the exclusive use of Stephan Hoglund without prejudice to the rights and/or interests of other concerned parties and may not be used for any other purpose or relied upon by any other person. No warrantee or guarantee is offered or given. It should be noted that the observations, equipment and values indicated in this survey are as noted on the date of the survey. Any or all of these may and will change with time and with usage of the vessel. This surveyor, agents or employees, are not to be held responsible for any inaccuracy, omission, misstatement or error in judgment. To all intents and interest, reports emanating from this office may be adjusted as an evaluated opinion of the surveyor. Submitted without prejudice.

ATTENDING SURVEYOR: John Gulick, SA Gulick Associates Member Society of Accredited Maine Surveyors®

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 30 of 32

Cost Comparisions Make Size year Yacht: Liberty 28 BUC Used Boat Pricing Guide 92nd Edition 2007 Yacht:

Liberty

28

type 1981 Low Value $17,500

1981

Equipment UHF Radios

$

Depth Sounder

$

High Value $19,900

100 250 Bimini

$

Miscellaneouse

$

Total equipment

$

Low BUC Price + Equipment

5,350 $22,850

1,500 3,500

From BUCVALUE Professional.com Yacht Liberty

From Yacht World.com Liberty

18-Jan-08 Year 1981

Low

High

28

$ 17,500

28

$ 17,900

28

$ 12,190

$ 29,900 $ 32,000 $ 38,000 $ 17,000 $ 20,000 $ 22,900

$ 19,900

18-Jan-08 1981

From NADA Vehicle Pricing.com Liberty

Price Length

18-Jan-08 1981

From Used Boats.com

$ 13,905

18-Jan-08

Liberty

1985

28

Liberty

1990

28

Westsail

1978

28

Westsail

1978

28

Cape Dory

1980

28

Cape Dory

1980

28

From on line personal listing Liberty

1982

28

$ 19,900

Please note: The above values are asking prices, the actual selling prices will vary depending on condition of the yacht, the location, and the market at the time of the sale. Based on the above, the market at this time, equipment on board, and the condition of the yacht surveyed, in my opinion, the market value yacht is: $ 21,750 The replacement value is: $ 80,000 There are very few Liberty Yachts for sale, the Westsail and Cape Dory boats are similar in design and have been used for comparision.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 31 of 32

CONDITION & VALUE REPORT SUMMARY DECLARATION: Rating of vessel condition was determined upon completion and review of all reported survey information including recommendations and comparing vessel to the same or similar age models. Possible vessel condition ratings are as follows: •

EXCELLENT

•

ABOVE AVERAGE - Has had above average care with no obvious defects or limitations.

•

AVERAGE

•

BELOW AVERAGE - Needs significant maintenance, repair or service.

- Essentially as new or bristol in appearance.

- Ready for sale but needs some maintenance or repairs, updates or cleaning.

Estimated fair market value was determined by cross referencing data from Soldboats.com, BUC, ABOS, NADA, Powerboat Guide 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 it's current condition prior to any repairs or maintenance. Estimated replacement cost was determined using information obtained from BUC and local dealer prices using the same or similar make and model with similar equipment options. •

RATING OF VESSEL CONDITION................AVERAGE CONDITION

•

ESTIMATED FAIR MARKET VALUE...........$21,750

•

ESTIMATED REPLACEMENT COST............$80,000 per BUC research

•

INTENDED USE OF VESSEL..........................Pleasure-Gulf Coast.

•

SUITABILITY FOR INTENDED SERVICE: Vessel IS considered fit for it's intended use and upon correction of all listed Priority I recommendations.

NOTE: All "Priority II" and "Other Recommendations" should be thoroughly reviewed to bring vessel up to current standards and or improve the value of the vessel.

Surveyed for: Stephan Hoglund - Liberty 28 1981 Cutter Surveyed by: Gulick Associates, Punta Gorda FL

Report file #: 0000024 Liberty 28 1981 Hoglund Page 32 of 32