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FORMAL DEMAND LETTER

FORMAL DEMAND LETTER

LOGISTICS:

Vessel:  M/V 3849583958

Cargo:  Prime rolled concrete reinforcing deformed steel bars produced from billet steel via conventional air cooled process.  Included 3021 bundles, 3,605,559 metric tons.

Bill of Lading:  d8g002830

B/L Date:  11/9/06

Deal/Lot/P.O. No.:  938472940

Port of Loading:  Bourgas, Bulgaria

Port Discharge:  Houston, Texas

Shippers:  Shmittening Inc.

Damage:  Physical damage to twelve (12) bundles of 3/8” X 40’ Gr 60

DEMAND INFORMATION:

Upon discharge of cargo at Port Everglades, Florida in November, 2007, twelve bundles of the above cargo were observed to be damaged by Smithtown personnel.  Captain Johnson was informed and took notice of the incident.  These bundles were to be ultimately discharged in Houston, Texas.  The customer is now making a claim against Shittening Inc. for the amount of the damaged cargo, $12,234.44.

On January 2, 2007, Fred Smith of Metals Inc. contacted Raul Julio via email regarding this incident.

On February 2, 2007, Princeton Marine conducted a Cargo Damage Survey and Salvage Sale at Inbesa America Terminal in the Port of Houston.  The twelve (12) bundles from the M/V 3849583958 were found heavily rust stained with loose bars, distorted, and with heavily bent bars along the length, especially on their ends.  The bundles were determined to be damaged beyond a sound, useable, and/or saleable condition due to the rust and physical damage sustained.

The damaged cargo was then sold for salvage in the amount of $240.00 per net ton on the basis of “as is, where is”.  The total value of the twelve bundles is $12,265.94.  The salvage proceeds of 24.004 net tons totaled $5760.94.  Thus, the total loss is $6505.00.  The surveyor’s fees equal $350.00, bringing the total loss to Metals Inc. to $6855.00, which we now demand of you.

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