Report #002 May 8th 2020

INTRODUCTION

Please find within this space, your secure Web-viewer, the updated status of the your new build Sanlorenzo Yacht “Kamakasa”.

Although access was complicated, we are happy to confirm we now have full access to the Sanlorenzo shipyard. This process required all Arrow Surveyors to obtain a negative COVID test before access could be granted to the shipyard. We now understand this will only be required for each persons first entry to the shipyard from the 4th May. Any visits after the first entry do not require a new negative COVID test. This means that we are now free to enter and exit the shipyard at our discretion provided the builder has 24 hours’ notice in advance. Our onsite office is being set up next week which will help us become more productive in the coming weeks until final delivery and acceptance of the Yacht.

GENERAL UPDATE

• Sanlorenzo are working two shifts a day with the paint teams working through the nights. There is an official break between 13.00 & 14.00 and again between 20.00 and 21.00 each day to treat the Yacht under construction with “Ozone” to reduce the risks of COVID 19 contamination. Sanlorenzo are also treating all office spaces with “Ozone” treatment twice per day.

• We are happy with progress to date and despite the restrictions to access, the yacht has progressed dramatically since our last visit.

• Please visit the 3D model and take a walk through the physical Yacht as inspected today. We recommend for the best viewing experience, to expand to full screen mode by clicking “View Fullscreen” button at the bottom right of the window. Please note this model will be updated with photos and details within the model each couple of weeks. We will notify you when this is available for your review.

NOTE:- It’s important to understand that when viewing the 3D model, someone not familiar with yacht construction may consider the apprearance a little unorganised. Please note this is absolutely not the case. What we see in the model is in line with standard practices of Superyacht construction around the globe.

• You will note from the 3D model, the beach club appears behind the completion state compared to other areas of the Yacht. However this is normal as all major engineering material must pass through this space to gain access to the Engine Room. Once all “heavy & major” works are completed and the shell doors are installed, this space will progress quickly.

• Please note the engine room is not on the 3D model. This will be added in a few weeks once we can gain clean access.

• The builder is working through our last reports and providing corrective measures as agreed. This process is progressive and we are carefully following this and adding new tasks each visit to ensure the best quality can be achieved in the time available.

• Our drawing review phase is almost finished and Sanlorenzo are reviewing our comments in the next week.

• During the evenings, the painting teams are progressing well. They are currently painting primers and undercoats in preparation for the top coat application on the exterior of the Yacht. Please note painting, along with shell doors, are the two “critical path items” to maintain the launch date and delivery date. We need 8-10 days after application of top coats to ensure correct curing time before we can lift/launch the Yacht. If this is late, the delivery of the Yacht is most likely equally late.

• We are anticipating a meeting next week with ABS (Class) to review all outstanding documentation and procedure to ensure the builder is up to date with all their obligations.

• After review with Sanlorenzo last week, we understand that currently there is no foreseen problems with the supply chain and/or subcontractors that could effect the delivery of the Yacht. However, we do suggest caution here as it’s very possible this may change as the weeks progress. We will keep you updated.

• The builder has advised, at present, nothing is outstanding from the Buyers side, except the definitive list of owners supply items raised in report #001 from Arrow.

• We note contractual delivery is the 28th July 2020, to be confirmed by the buyers legal team, however the builder is currently suggesting delivery on the 20th July 2020.

• The next report will follow in approximately two week from today.