• • • Jay P. talkoostr: P.C. To Ci iic13/ lefkowazN k la pnd.com VIA E-MAIL KIRKLAND & ELLIS LLP ANC APPILIMID PA RTNUSHIPS Citigroup Cant 153 Ent 53rd Stem New York. New Yong 10022-4611 It Alexander Acosta United States Attorney's Office Southern District of Florida 500 South Australian Avenue, Suite 400 West Palm Beach, Florida 33401 Dear Alex: Facaimaa: mint kirklancl.cOM Dlr. Fax: ConfidentlaL For Settlement Purposes Only, Pursuant to Rule 408. October 10, 2007 Re: Jeffrey Epstein I write as' follow up to our conversation yesterday regarding the open issues that remain Si stein matter. As you are aware, we continue to have serious disagreements with Ms. regarding the nature of the settlement process for identified individuals' § 2255 claims. Legal representation in' lawsuit was never contemplated by the Federal Plea Agreement (the "Agreement"). Over the course of the negotiations of the Agreement, the parties worked diligently to create an alternative dispute resolution for those identified individuals seeking' civil remedy for the conduct at issue, in an effort to avoid long drawn out disputes over liability in public adversarial litigations. Initially, we proposed that Mr. Epstein create' trust whereby' trustee would be appointed by the Circuit Court to disperse the funds to the identified individuals based on' good faith showing of injury. In response, Ms. proposed the appointment of I guardian ad litem to represent the identified individuals, not an attorney, which suggests that litigation was never contemplated by either party. Ultimately, the parties agreed to Paragraphs 7 and 8 of the Agreement, which allow for' single attorney representative to settle the claims of the identified individuals and create' procedural alternative to public adversarial litigation. In keeping with the parties' understanding of Paragraphs 7 and 8, you should know that we are in agreement with your choice of Judge Edward Davis, but we be