Morgan L.Lucid and Mary J. Lucid - Page 8

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          33 people signed the visitors' book.  The February 28, 1988,                
          Lucid Cruising corporate minutes contained the statement that               
          petitioners reminded Kanter Yachts that, if someone purchased a             
          yacht after viewing Brendan, they expected a 5-percent fee.                 
               For the next 12 months, petitioners spent time equipping               
          Brendan for their projected cruise to New Zealand, which was                
          scheduled for May 1989.  However, petitioners discovered problems           
          with Brendan and requested that Kanter Yachts rectify the                   
          situation.  In June 1988, petitioners took a cruise for a week to           
          the San Juan Islands in Washington State.                                   
               On July 12, 1988, petitioner wife, as a representative of              
          Lucid Cruising, wrote to Kanter Yachts regarding the planned                
          arrival of Brendan in Redwood City, California.  The letter                 
          states:                                                                     
               It is Morgan's hope that BRENDAN will be the yacht that                
               he has planned and looked forward to having.  He                       
               believes that after the leaks have been repaired, the                  
               decks primed and recalked and epoxy that was spilled                   
               next to the bulwarks cleaned he will forget the                        
               problems that have plagued Brendan since her delivery                  
               in Seattle and truly begin to enjoy her.                               
          Additionally, petitioner wife stated that she was interested in             
          having the boat “returned to original value” and taking all steps           
          to protect their investment.                                                
               Sometime in July 1988, petitioners sailed Brendan for 5 days           
          from Washington State to Redwood City, California, where                    
          petitioners docked Brendan.  Until January 1989, Brendan was                
          permanently docked in Redwood City.  This location was                      
          approximately 50 minutes from petitioners' residence.                       


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