Memorandum

Memorandum To: Jeffrey Epstein From: Emad Hanna Date: 03-29-05 Re: LSJ Wood Shop Construction I received the figures for the wood shop construction and put together a cost detail analysis and a payment schedule for your review. Please note that I have reduced the overall cost by the $ 44,000 payment made to Bill Karr for construction oversight. The total cost of the project is $ 1,278,250, which is a fixed amount, and should it exceed that amount it will not cost you a penny more; on the other hand there is a contingency amount of $ 62,525 built in and any unused portion will be refunded back. Please not that Bill is looking for you to front him $ 79,500, which he will use to buy a Boat and a Dump Truck and will be reimbursed to you in the monthly payments (see attached payment schedule). Also Mr.Karr is looking to get a Notice to Proceed in order for this project to start by next week. Up front total that would be needed is $ 261,000, which consists of the Misc Cost of $ 79,500, plus Mobilization cost of $ 156,000 and CM cost of $ 25,500. EFTA00586325