GENERAL CONDITION SURVEY

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1 GENERAL CONDITION SURVEY Motor Vessel: ACCU VII (EX: M/V LAGONDA and SAWYER YORK ) Official Number: Gross Tons: 140 Net Tons: 95 Operated By: ACCUMARINE TRANSPORTATION, LP The undersigned independent marine surveyor did attend the above captioned vessel as it lay afloat on the ICWW near Lake Charles, LA. The purpose of our examination was to determine to the extent possible, the general condition of the vessel and to prepare a record of same. Upon examination, the following developed: Date of Survey: August 25, 2009 Independent Marine Surveyor Craig G. Kimble The vessel was found to be an all steel, welded twin screw, diesel powered, triple deck, river type towboat, built in 1969 by Breaux Bay Craft, Inc. at Loreauville, LA. It was powered by Caterpillar 3508 diesel engines, which developed a total of 1,800 horsepower through Twin Disc reverse/reduction gears with ratios of 6.18:1. Approximate hull dimensions were 64.1' x 26.1' x 8.9'. Pilot House Overhead and bulkheads had white FRP panels Floor was square linoleum tiles with wood trim Port and starboard doors one (1) dog weather tight Three (3) windows forward, port and starboard of centerline metal framed and centerline hinged metal frame with wiper 2 rubber-gasketed to port and starboard and 3 rubber-gasketed to aft Wooden navigational console forward Aft to starboard wooden vanity with stainless steel sink Settee black on centerline aft to port aft wood cabinet Navigation Equipment The navigation equipment appeared to be in operating condition and consisted of the following:

2 Page 2 All necessary, legal, properly mounted and shielded navigation lights One 15 Carlisle & Finch searchlight to starboard One 21 Carlisle & Finch searchlight to port One Kahlenberg Double trumpet air horn One ship's bell One West Marine M/N 550 VHF and one standard M/N Horizon Quest radios with all necessary antennas. One Furuno Radar, M/N FR 8111 radar display units and scanners. One Swing Guard, Rate of Turn indicator, R DeHart Navigation light switch panel with general alarm switch Steering switch over button Main engine controls Steering levers Non follow up steering Kobelt winch controls Air PSI gauges for main engines Furuno GPS Navigator GP-31 Pilot House Deck 6 Vanity & sink 2 Pilot House 7 Landing 3 Navigation console 8 Stairs 4 Cabinet 5 Settee The operating console appeared to be fitted with sufficient controls and monitoring gauges to provide for safe operation of the vessel. Living Quarters The living quarters consisted of the following fittings and/or furnishings:

3 Page 3 Overhead and bulkheads had white FRP panels Floor had square linoleum tiles Crew quarters were fitted with single or double bunks and built-in closets Head finished like crew quarters and was fitted with porcelain toilet, stainless steel shower stall, bulkhead mounted porcelain sink, metal medicine cabinet and mirror The living quarters were clean and well maintained. Second Deck Rigging deck 6 Stairs 2 Deck 3 Head 4 Crew quarters 5 Companionway The second deck was clean and well maintained. Main Deck Deck 6 Sound barrier room 2 Head 7 Upper engine room 3 Galley/mess 8 Hydraulic tank 4 Companionway 5 Stairs

4 Page 4 The main deck was clean and well maintained. The galley was located at the forward extreme of the main deck cabin. Galley equipment and finishing consisted of the following: Upper and lower cabinets with blue Formica top and double stainless steel top lining the forward and starboard bulkheads Hotpoint 4 burner range Broan stainless steel microwave Whirlpool icemaker Emerson 19 flat screen TV Magnavox DVD Frigidaire freezer Whirlpool refrigerator/freezer Built-in food pantry Metal table with 4 metal chairs The galley was clean and well maintained. Deck Equipment and Fittings The main work deck, second deck and third deck areas were generally clean, uncluttered and free of trip hazards. The main deck area was fitted with an outboard bulwark with necessary freeing ports. The perimeters of the second and third decks were fitted with double-tiered guardrails, except as noted on second and third deck pages. All exterior stairways were constructed with outboard handrails and expanded metal, safety-tread steps. Deck fittings consisted of rubber-faced towknees, electric deck winches, an electric capstan and a sufficient number of chocks, cavels, buttons and bitts. Engine Room The upper main engine room was fitted and equipped with the following: Ingersoll-rand 2475 air compressor Hotpoint dryer GE washer Hydraulic tank Overhead and bulkheads were painted white and the deck the deck was painted gray Main Engines: Caterpillar 3508, diesel, to port and starboard

5 Page 5 The main engines were air started, keel cooled and coupled to Twin Disc, model MG 540 reverse/reduction gears, with ratios of 6.18:1. Port ME Hours: Unknown by crew and not in log book Starboard ME Hours: Unknown by crew and not in log book Last overhaul of main engines: Unknown by crew and not in log book Performed by: Unknown by crew and not in log book Extent of overhaul work: Unknown by crew and not in log book Last overhaul of gearboxes: Unknown by crew and not in log book Performed by: Unknown by crew and not in log book Extent of overhaul work: Unknown by crew and not in log book The generators were battery started and keel cooled. The visible piping, wiring, hoses, and main components appeared to be properly installed and in good order. Generators and Electrical Systems Generators were Spartan KiloPak 6HKEM560/8PF3P. 60 kw powered by John Deere Diesel engine Power Tech 4.5L. 60 kw powered by John Deere Diesel engine Power Tech 4.5L. Port Generator Hours: Unknown by crew and not in log book Starboard Generator Hours: Unknown by crew and not in log book Last overhaul of generators: Unknown by crew and not in log book Performed by: Unknown by crew and not in log book Extent of overhaul work: Unknown by crew and not in log book The visible wiring, switchboard, breaker boards, switches, fixtures, etc. appeared to be properly installed, grounded and in good order with no apparent exceptions. In way of the lower engine room area, an alarm panel was located which monitored main and generator engine functions and levels in addition to a bilge level monitor and like sensors. The panel was coupled to warning lights and an alarm siren. The air supply was provided by Quincy, M/N 325 air compressors, each powered by a 5 horsepower electric motor.

6 Page 6 The bilge system was powered by 5 horsepower electric motor. The steering system was actuated by two Bench-Mark 25V21A1A22 steering pumps, each powered by a 15 horsepower electric motor. The vessel was fitted with an OWENS, M/N C, sewage treatment plant with all necessary pumps and motors. The vessel was fitted with all necessary auxiliary pumps and electric motors as needed for safe operation of the vessel. The lower engine room was fitted with a generator control panel by Power Panels, Inc., job no The engine room was clean and well maintained. Underwater Appurtenances reportedly and apparently consisted of the following: 2 steering rudders 2 flanking rudders 2 propellers 2 shafts Tank capacities were reported as follows: Fuel: 10,500 Gallons Potable Water: 1,000 Gallons Lube Oil: 250 Gallons Steering Oil: 250 Gallons Slop: 2,000 Gallons Safety, Lifesaving & Firefighting A visual examination of the interior and exterior cabin areas indicated an adequate number of portable dry chemical and ABC fire extinguishers, properly charged, and tagged September 9, 2009, unless otherwise noted herein. The exterior fire stations were situated port and starboard and were found to be fitted with fire hoses, nozzles, and spanner wrenches. The fire system was provided with one fire pump powered by a 7.5 horsepower electric motor. An adequate number of properly stowed life jackets and life rings with heaving lines and illumination markers were noted about the vessel in strategic locations.

7 Page 7 Hull An internal examination of the visible hull plates, associated framing, bulkheads and the above deck superstructure areas indicated that the vessel was suitably constructed for its intended service. The visible exterior hull plates and rub rails showed only random scattered indentations of up to 1 1/2" in depth with no one area worthy of specific mention, except spaced rubber bumpers protected the hull. Last dry docking: Last hull gauging: Unknown by crew and not in log book Unknown by crew and not in log book Hull Compartments Forward peaks 5 Lube tanks 2 Forward hold 6 Void 3 Potable water 7 Slop tank 4 Fuel 8 Stern void General conditions about the accessible hull compartments were clean and well maintained with minimal water accumulation. The above survey report is submitted by the undersigned independent marine surveyor without prejudice to the rights of all parties concerned. Merrill Marine Services, Inc. Craig G. Kimble Independent Marine Surveyor

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