LAW OFFICES OF JAY GOLDBERG, P.C. 250 PARK AVENUE TWENTIETH FLOOR NEW YORK. NY 10177.0077 MEMORANDUM TICIENIONIC TELICCOPialna TO: Damn Indyke FROM: Jay Goldberg DATE: March 25, 2010 At the time of your e-mail stating that Mr. Fancelli was not on the Island, you were --- as in so many other respects — mistaken. Several things are clearly beyond dispute: (1) I wrote you on March 16 that it was absolutely essential that Mr. Epstein be present on March 22 to deal with his complaints; (2) Elizabeth sent you an e-mail to the same effect on March 18 that two carpenters and two finishers (two brought from Europe and two brought from California), Mr. Fancelli, Mr. Molyneux, and his assistant would attend; (3) Mr. Epstein and Doug Schoettle had conversations with Mr. Molyneux and his office stating that they would be there on March 22; (4) While these people attended, Mr. Epstein failed to appear at the Island, this without any timely advance notice to my client. What possible reason would Mr. Fancelli and his team and Mr. Molyneux and his assistant have to come to the Island, but to resolve any problems should any exist? And, what could account for your client's failure to appear without timely advance notice? What Mr. Fancelli was asked to do would have been a simple matter, but he believed it would not serve your interests to go forward since the room had not been readied for his work. In light of what follows, your client runs the risk that Mr. Molyneux may declare the Design Services Agreement at an end and seek to recover damages which will include all that he has expended, on the theory that Mr. Epstein purposely frustrated the performance of the project. EFTA00625037