<table><tr><th>From: </th><th>jeffrey E. &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent: </td><td>Tuesday, October 6, 2015 10:10 AM</td></tr><tr><td>To: </td><td>Richard Kahn</td></tr><tr><td>Subject: </td><td>Re: FW: Subbase Drydock, Inc. RE: BIG N Project</td></tr></table>

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On Mon, Oct 5, 2015 at 8:48 PM, Richard Kahn =It wrote:

Anna and Bosco both said barge is operating well an= that Subbase came by AYH over weekend to check in on barge and make sure =verything was ok

The last time we discussed unpaid balance you m=ntioned I should wait two weeks before negotiating and paying

Ba=ed on email below please advise if I shall still wait or attempt to negoti=te and pay outstanding invoices

Island Rigging Invoice - materials &=oil disposal 2,670 Island Rigging Invoice - labor = 4,123 Subbase - additional labor & fuel dispo=al invoice 3,5=8

## <=iv>Total 10,311

From: Mary Kral

Reply-To: Mary Kral <= href="

Date: Monday, October =, 2015 at 4:18 PM

To: Ann Rodr=quez •M Richard Kahn

Subject: Subbase Drydock, Inc. RE: BIG N Pro=ect

## Good Day, Ms. Rodriguez and Mr. Kahn=

We would like to follow up with you =oth, as we did not hear back from either of you from our letter of 9/28/15= We began our business in 1981 with three employees. After 34 years, Subba=e Drydock employs 33 personnel and the majority of sales are derived from =abor. We pride ourselves on our professional reputation and the loyal clie=tele established among clients from Europe, North America and the Caribbea=. Our clients also include charter yachts, private yachts, ferries, tugs, =nd barges from the USVI, BVI and Puerto Rico.

=br>

I must say that the manner in which the 1Si Mana=ement company handled the Big N project was disjointed. There was no one h=re overseeing the project and reviewing the work being done and asking the=pertinent questions. Communication was via email or phone. Anna, you were =ery good and most pleasant to work with and we have no complaints;however,=honestly, the overhaul of the Big N is not your area of expertise. </=iv>

## Good Day, Ms. Rodriguez and Mr. Kahn= (cont.)

Mr. Kahn, you phoned my off=ce on 9/24 with a host of issues raised, which I answered in detailed tech=ical explanations. I am not sure how familiar you are with marine repairs,=particularly overhauls such as the scope of Big N. You closed the conversa=ion by stating you would get back to me on Monday, 9/28. I never heard fro= you.

This was a we=l performed job, yet, my tenant, island Rigging and Subbase Drydock are le=t with unpaid balances. This is most unprofessional and I am asking for a =esponse from either/or both of you as to why this is what you chose=to do.

Best Regards=

Eugene Kral, Sr.
Subbase Drydock, Inc.<=font>
St. Thomas. USVI 00802
TEL:
FAX
www.su. ease•ry• oc .vi

From: Richard=Kahn <REDACTED>
Date: =/span>Friday, September 25, 2015 at 12:21 PM
To: Jeffrey Epstein <jeevacation@gmail.com <mailto:jeevacation@gm=il.com> >
Subject: Barge

<iv style="word-wrap:break-word">Just spoke with Gene from Subbase regard=ng outstanding invoices:

balance due per original 260,0=0 invoice 58,843

balance due on unpaid 8,000 engine work 8,000 Island Rigging Invoice - material= & oil disposal 2,=70 Island Rigging Invoice - labor 4,123 Subbase - additional labor & fue= disposal invoice =A03,518

Total 77,=54

I told Gene that we wanted to d= a 10% holdback as we have done in all of our previous construction contra=ts. He said that this is the first time he is hearing of this an= cannot do this in the last hour. If we mentioned before work began =e would have considered.

Regarding invoices above=i told him 58,843 and 8,000 were as originally agreed to and we were ok to=pay. I told him that when we agreed to 260,000 he specifically s=id that he would not nickel and dime us on small

stuff

and that = believed invoices for Island Rigging (2,670 & 4,123) and Subbase 3,51= felt like we were being nickeled and dimed after almost 360,000

in work with him. He strongly disagreed and went on with all t=e extra work he did. I told him that i would like to pay him 58,843 =nd 8,000 today and we would revisit 3 other small charges

=otaling 10,311 on Monday. I think at best i can get him to agree to =0% of 10,311 as he is being very firm. He also said he stands by all=his work that he just completed.

Gene will releas= boat this afternoon to Bosco if we pay 66,843

## Good Day, Ms. Rodriguez and Mr. Kahn= (cont.)

Pl=ase advise if ok to pay 66,843
Thank you

Richard Kahn
HBRK Associates Inc.
575 Lexin=ton Avenue 4th Floor
New York, NY 10022

## please =ote

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