Tomo & Son

Independent Surveyor Report No 107-10/Mar-SCA/JK Ref. ADJ/RML Place: Jakarta Date: June 13, 2010

TRANSCRIPTION

Report of Condition Survey and Appraisal

This is to certify that, the undersigned surveyors to TOMO & SON did at request of means PT. xxx attend on board TK.XXX 12 on June 9, 2010 while the barge was berthed at jetty of PT> Dock Sinar Makassar, Makassar, South Sulawesi, Indonesia, in order to carry out condition survey to ascertain physical condition and to estimate the market value of the vessel. Details of Survey Are as Follows: A. Particulars of The Vessel Name of Vessel Kind of Vessel Flag Port of Registry DWT Gross/Nett Tonnage Classification Length Breadth Depth Maximal Draft Minimal Draft Free Board Build at/Year of Build 2002

: TK. XXX : Dumb Cement Carrying Barge : Indonesia : Jakarta : 5000 tons : 2938 GT/2056 NT : Biro Klasifikasi Indonesia (BKI) / A 100 (1) P : 54.271 m : 22.023 m : 8.497 m : 7.200 m : 1.000 m : 739 mm : Yoefeng Shipbuilding & Repairing Factory, Guangdong, China /

B. General Information The TK. XXX 12 a typed a dumb cement carrying barge or cement carrier in bulk. The barge was equipped with cement transforming unit installed on barge dock. The barge was towed by the tug boat for shifting and sailing. On inspection the barge was berthed at jetty PT. Dock Sinar Makassar, South Sulawesi, Indonesia. The survey was carried out and accompanied together with the owners representatives and crews at Makassar to inspect the physical condition only. According to information from the owners representatives and crews of the barge stranded in condition half submerged after got accident/collision with another ship some time ago. In general conditions, the barge is not seaworthy and experienced severe damage due to rust and posed significant in a long submerged in sea water. C. Certificates All original documents relating to these barges are stored in the office.

D. Inspection The barge was build in fully welded steel type, constructed with single hull and single bottom with combination framing system of profile construction and +/- 700 mm of framing spacing. The deck barge was flat. The hull was divided into two cargo bold front and rear positions was separated by a watertight bulkhead which also serves as the framework of the amplifier construct ships. Meanwhile, on each cargo hold or the hold is divided lengthwise by a longitudinal bulkhead that is not waterproof on the bottom. This is intended to facilitate the movement of cargo in the bold as a balancing of the barge especially when sailing and also to facilitate the process of loading and unloading of cements. Surface conditions are all rusty hull plate and overgrown with barnacles and mussels. Surface plates on the main deck as well as poorly maintained and rusted even partially severed in a condition to make a hole access to the loading batch during evacuation cargo activities and equipment. In general condition the construction of ships such as frames and stiffeners still looks good. So it is with plate girder and beam on the hull and deck boats. Anchor winch and cement loading and unloading equipment still in place although it is damaged. Bolder in some places it still looks good conditions because it is made of stainless steel. The superstructure building at the stern of the barge in general is still good and decent in use, although still must under go repairs in several places. Safety equipment such as life boat and inflatable life raft still stored in the ships store room. Machinery Part All equipment of machinery were removed to the offices store. Only the anchor winch and frame construction equipment for loading-unloading activities. All pumps and all other parts were not on board. Drawings All barges drawings were not on board even in the office. E. Conclusions The undersigned carried out general inspection to the barges hull and machinery while the ship was berthed at jetty PT. Dock Sinar Makassar, Makassar, South Sulawesi. The inspection was executed as far as practicable and none of the under water parts were inspected and no detailed test of equipments and machineries and exposed parts concealed at this time. We are in the conclusion, That the vessels condition was bad That the vessels which is 8 years old with reasonably considered deformations and rusty, still possesses the ability for good performance and sufficient strength if be well maintained.

F. Value Estimation Considering to the reasonable percentage of depreciation and in be comparing with new ship conditions, we estimated that the market values of the barge XXX 12 is USD 765,000.00 (seven hundred and sixty five thousands US Dollars).