From: "Farkas, Andrew L."

From: "Farkas, Andrew L." To: ' " <[email protected]> Subject: Fw: American Yacht Harbor - Update Date: Thu, 02 May 2013 21:29:41 +0000 Attachments: Update_Memo_re_AYH.docx; Pricing_Build_Up_Schedule.xlsx I thought you should see this w/o edit or commentary from me. From: Mukamal, Thomas [mailto: Sent: Thursday, May 02, 2013 04:15 PM To: Farkas, Andrew L. Cc: Garrison, Frank; Mukamal, Tom Subject: American Yacht Harbor - Update Andrew — I have written up a summary of the outstanding questions posed by Mr. Epstein's advisors as well as some thoughts around the transaction and next steps. On a somewhat related note, at our request Jamey Casner, retained a structural engineer after the incident that occurred some months ago. The affected area has been repaired and we have subsequently requested that the engineer examine all structural columns in all buildings on the property: We have identified a cost effective fix to shore up all structural columns and the third party engineer has accepted this as appropriate remediation. We have bid this work out and will start the remediation as soon as possible. Separately, some time ago Mr. Epstein had requested we paint AYH. IGY has also looked into some other capital improvements to security fencing, restrooms and other areas in response to customer surveys we conducted in the first quarter of the year in an effort to produce greater revenues. I didn't want Mr. Epstein to think we had dropped the ball on this, in total all of the work we are discussing is expensive and while we have the funds at the property, I am a little concerned that we may have competing financial demands on money sitting at AYH given the review by Mr. Epstein and potential costs associated with a broader inquiry. Please let me know if/when you would like to discuss. I am also likely to be back in St. Thomas in June and would be happy to meet with Mr. Epstein or any members of his staff etc. Thanks, Tom Tom Mukamal President Island Global Yachting Ltd. 717 Fifth Avenue, 18th Floor New York, New York 10022 (1) (212) 705-5085 (F) (212) 705-5001 (E) This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC EFTA00960319 or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. This message. and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential. proprietary. privileged, subject to a confidentiality andfor non-disclosure agreement. or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining. reproducing, copying. disclosing. disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety. whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Global Yachting LTD or any of its affiliates. each of which requires a fully executed agreement to be received by Island Global Yachting LTD or such affiliate. This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. EFTA00960320