Memorandum

Memorandum To: Jeffrey Epstein From: Emad Hanna Re: Zorro Ranch Project # 5 - Water Well # 1 Date: 06-10-05 I have attached an updated budget and cost analysis for the above project. At this point in time we need approval for the following items: a) Item # 5 — Pluming at $ 59,886.75 for pumps and controllers for connection to existing water distribution system. b) Item # 6 — Electrical at $ 6,300 to connect power to well, pumps and controllers, although this cost increased by $ 1,000 from the original budget. Even with the increased $ 1,000 for item # 6 and the additional testing costs not originally budgeted for this project will still finish below the original budget by about $ 4,500. Sincerely Emad Hanna EFTA00585901