December 15, 2000

Travelers

Mr. Richard Searcy

9820 E. 41st Street, Suite 401

Tulsa , OK 74146

RE: Star Video

504 S. 2nd Street

Stillwell, OK 74960

Startz Insurance Salvage File: 120o284

Insurance Company’s File: BXP1535A

Mr. Searcy ,

Please accept this as confirmation that the above referenced file has been assigned to and accepted by Startz Insurance Salvage for handling.

• Inventory contents, pick up salvage
• Interface with insured’s costing
• Submit salvage to pilot program with SalvageSale.com

The loss site was found to be a small-town video rental store. The site had suffered heavy smoke, water, and fire damage with the exception of a small storage room in back of the store.

Startz Insurance Salvage was on-site at Star Video from December 8, 2000 to December 13, 2000. The insured was not present at any time while we were on-site. During this time we worked with the insured, Dennis Maxwell, by phone, and he informed us that he was not going to claim the contents of a storage room located behind his showroom and that he wanted to keep the jacket sleeves from his stock. The insured also informed us he was going to keep the items that were rented out at the time of the loss. These rental items were being returned at the beauty salon located next door to the loss site through a drop slot. The contents of the storage room and the rented items were not inventoried by Startz Insurance Salvage.

Approximately 60% of the contents were a total loss. Due to the smoke damage it received, the remaining stock was considered Grade 2 salvage by Startz Insurance Salvage. Due to the degree of damage received by the Grade 2 items, salvage value will be limited. The Grade 2 items have been segregated from the total loss items and will be placed on the market by Startz Insurance Salvage in addition to following the guidelines for the pilot project with SalvageSale.com. The total loss items will be disposed of by Startz Insurance Salvage at a local landfill, including all of the candy and soft drinks. All shelving was made of particleboard and had sustained heavy damage from the fire and smoke, in addition to swelling from water damage. The shelving was also considered a total loss and will be disposed of along with the total loss items.

Please go to startzinsurancesalvage.com in order to view all of the reports and spreadsheets pertaining to this loss. The site is updated as the reports become available. Click on the Adjusters button located near the top and middle of your screen and enter your username: rsearcy and password: qwerty. You will then be able to access all reports, spreadsheets, and photos from this loss.

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Upon completion of the assignment, we will have provided you with a complete report describing and accounting for all actions taken regarding the project. As always, it is our goal to serve you efficiently. Should you have any questions regarding your file or the status of the assignment, please contact me.

Please note our new mailing address and fax number:

PO Box 1386

Norman, OK 73070-1386

Fax (405) 573-0686

We appreciate your business and the opportunity of working with you.

Sincerely,

Steve Startz