JDG Jaredian Design Group Architects, Engineers and Construction Managers 5333 Rmours Gore. Sun 14, ST. THOMAS, U. S. VIRGIN ISLANDS 00802-6900 • Post Once BO* 6218, SI. Thomas, U. S. Vi• IN I LAND 4.621 Tuirtioro February 26, 2015 Jeffrey Epstein Owner Nautilus, Inc. 6100 Red Hook Quarter, Suite B3 St. Thomas, U. S. Virgin Islands 00802 Via E-mail: RE: CLARIFICATION FOR THE BIDDING NEGOTIATION AND CONSTRUCTION PHASE SERVICES OF THE MAINTENANCE WORKSHOP ON LITTLE ST. JAMES CAY, ST. JOHN, U. S. VIRGIN ISLANDS Dear Mr. Epstein, We have been requested by Mrs. Daphne Wallace of your staff to clarify how the Bidding Negotiation and Construction Phase Services fee for the Maintenance Workshop will be developed. As we discussed at the site visit on Monday, we have performed these services on many private projects on an hourly basis based on the needs of the client. This allows us to review the stage of completion of the project over a period of time and ascertain whether construction is in compliance with the Design Documents. We recommend on Allowance of an additional $5,000.00 be established for these services over the life of the Maintenance Workshop's construction. This will be used for us to perform periodic inspections, solicit proposals, and provide responses for Request For Information by the Builder. Based upon our experience on this type of project and the likely amount of time to complete, the final cost will likely be in the neighborhood $3,500.00 to $4,000.00. We look forward to working with you and your Team once again. Should you have any questions or comments, please feel free to call on me ate. Very truly yours, JAREDIAN DESIGN GROUP ewe nods, AIA, NCARB Princ Cc: Cecile deJongh, Business Manager, Southern Financial Trust LeRoy V. Smith, Jr., PE, Principal, Jaredian Design Group EFTA00623074