From: Richard Kahn Sent: Friday, July 10, 2015 7:31 PM To: jeffrey E. Subject: Fwd: Big N Attachments: tank.jpg; Untitled attachment 00004.htm; tank 2jpg; Untitled attachment 00007.htm; LS1 Est 776.pdf; Untitled attachment 00010.htm Richard Kahn HBRK Associates Inc. 575 Lexington =venue 4th Floor New York, NY 10022 Begin forwarded message: From: =/b>Ann Rodriquez Subject: =/b>Fwd: Big N Date: =/b>July 10, 2015 at 10:48:53 AM =DT To: =/b>"jeffrey E." <jeevacation@gmailcom> Cc: Rich Kahn < >, Daphne Wallace Ann R. Begin forwarded message: From: gene kral Date: July 10, 2015 at 10:26:59 AM AST To: Ann Rodriquez Cc: Debra Lowry Subject: Big N Reply-To: gene kral EFTA_R1_02146167 EFTA02715285

Good Morning Anna- I wanted to give you and update on the progress =f the Big N. This morning we were ready to lift and install the port =ngine. Bosco has informed us that the port engine is not ready, he has = few more things he needs to address. I know you were looking into =eplacing the gear boxes but have had no success in finding new =nes that are similar. I am writing this email so we are all on the =ame page as far as a completion date. The majority of our work hinges =n having those engines installed. The exhaust system on each engine has =o be finished, but in order for us to complete this we have to have the =ngines in. The same goes for the new fuel lines and all the =lectrical components that run to the engines. I know we discussed =he end of this month/beginning of next month but each day that we wait =or the engines to be completed it delays us from our target date. A few =ssues have been discovered while working on Big N. 1) The shaft logs on =oth sides are corroded beyond repair. We anticipated that we might have =his problem so it was factored into the quotation. 2) The port stern =uarter looks like it might have hit a dock which has separated some of =he stringers on the inside. It is repairable and I told you we would repair it under the quotation. 3) The fuel fill cover on both sides are =ompromised and need to be replaced. They are not sealing properly and =ver the course of time have allowed salt water to seep in and =ontaminate the fuel tanks. Which leads me to your biggest issue we have =iscovered while working in the rudder room where the fuel tanks are =ocated. The bottoms of the fuel tanks and several other areas are =everely corroded. It is my recommendation that these tanks be =eplaced. The only way for a proper repair are to =eplace both tanks. The original tanks got you 40 years so I =on't see why the new ones we fabricate cant get the same amount of =sage out of them. Attached our a couple of pictures of the corrosion =nd an estimate to remove and replace both tanks. Please call or email =ith any questions... Gene Kral =r. Subbase Drydock, Inc. Parcel =62, Subbase St. Thomas, USVI 00802 =/div> 2 EFTA_R1_02146168 EFTA02715286