<table><tr><th>From:</th><th>Richard Kahn &lt;</th></tr><tr><td>Sent:
To:</td><td>Friday, September 25, 2015 7:21 PM
jeffrey E.</td></tr><tr><td>Subject:</td><td>Fwd: Big N</td></tr></table>

please advise
thank you

Richard Kahn
HBRK Associates Inc.
575 Lexington =venue 4th Floor
New York, NY 10022
tel =12-971-1306
fax 646-350.0954
cell =17-414-7584

Begin forwarded message:

From: =/b>gene kral <genekralusvi@yahoo.com>

Subject: =/b>Big N

Date: =/b>September 25, 2015 at 3:14:41 =M EDT

To: =/b>Rich Kahn

Ann Rodriguez <

>, Mary Kral

Reply-To: =/b>gene kral <

September 25, 2015

LSJ, =LC

Re: =ig N

Dear =r. Kahn,

After =peaking with you this morning, I wanted to take the time to clarify a few things.

When =he Big N came to our yard, there was no precise scope of work in place. =/span>Our understanding from LSJ employees was to get the vessel back in service with the least amount of work and money involved.

As we =ndertook the quoted projects there were inevitable small items needing repair that became apparent.

We =ave billed a total of $362,907.94. The additional billing that we have is less that 1% of the total. =/span>At Anna's request -- when issuing our estimates we offered discounts in the =mount of $20,562.00. Discounts are equivalent to almost 6% of total billings. =/span>As far as Island Rigging Invoices -- on July 16 we emailed Anna and explained =hat if Boscoe ordered any additional parts from Island Rigging that they would =e billed directly to LSJ. =/span>lf you withhold the final payment from Island Rigging, this will be coming out of our =ocket as we told them to bill you directly -- we didn't want to have to mark =nything up to cover Gross Receipts.

When =he vessel arrived we advised that LSJ hire a certified marine surveyor to inspect the vessel =nd issue a report with all findings. =/span>This did not happen until work was 99% complete.

The =essel, not having been properly maintained, required many additional fittings, brackets, =lamps, etc. Some of these were not visible =o naked eye until work was underway.

In =egard to the engines, Subbase Drydock was not part of the process of ordering the engines for =ig N. You received long block =ngines, and many components had to be switched over from the existing =ngines.

There =ere fundamental issues about rotation for components of the hydraulic system and SBDD also =dvised LSJ about the steering pump that was not part of the quoted work. In addition, the sending units =ere incorrect and the starter motor was inoperable.

And, =s I mentioned on the phone this morning, we went above and beyond the work quoted in many instances - bulkhead replacement, plate =ork and many additional fittings =or the water cooling system. We also installed shaft logs and repaired couplings that were not quoted. =/span>The additional billing of $3k is time and material for additional work - but it is only a fraction of the =dditional work that went into the vessel.

We =ppreciate your business, but we do feel that we have been more than fair in our dealing and in Tur billing. We have been in business in this location for 34 years and we always stand behind our =ork.

We =wait your response.

Thank =ou,

=

Gene Kral =r.
Subbase Drydock, Inc.
Parcel =62, Subbase
St. Thomas USVI 00802

www.subbasedrydock.com