Re: Barge

Just spoke with Gene from Subbase regarding outstanding invoices: Crir> balance due per original 260,000 invoice 58,843

balance due on unpaid 8,000 engine work = 8,000 Island Rigging Invoice - materials & oil disposal 2,670 Island Rigging Invoice - labor = 4,123 Subbase - additional labor & fuel disposal invoice 3,518

Total = 77,154

I told Gene that we wanted to do a 10% holdback as we have done in all of our previous construction contracts. He said that this is the first time he is hearing of this and cannot do this in the last hour. If we mentioned before work began he 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 said that he would not nickel and dime us on small stuff

and that i believed invoices for Island Rigging (2,670 & 4,123) and Subbase 3,518 felt like we were being nickeled and dimed after almost 360,000

in work with him. He strongly disagreed and went on with all the extra work he did. I told him that i would like to pay him 58,843 and 8,000 today and we would revisit 3 other small charges totaling 10,311 on Monday. I think at best i can get him to agree to 50% of 10,311 as he is being very firm. He also said he stands by all his work that he just completed.

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

Please advise if ok to pay 66,843
Thank you

Richard Kahn
HBRK Associates Inc.
275 Lexington Avenue 4th Floor
New York, NY 10022

now that he has the boat hostage agree, this is nuts

Gene told me that we can have the Barge anytime we want. He doesn't have a problem with us bringing the barge back home even though the invoices aren't paid.

Bosco is bringing the Barge to Redhook at the end of the day.

Ann R.