draft-for discussion purposes only PRIVILEGED AND CONFIDENTIAL ATTORNEY WORK PRODUCT MEMORANDUM TO: Denise Francois, Esq. FROM: Darren Indyke RE: Molyneux Complaint in the District Court of the Virgin Islands DATE: April 14, 2010 In connection with my request for you to send Rosh D. Alger a Rule 11 letter, you have asked me to provide you with some background relating to Jeffrey's claims against Mr. Molyneux which lead to the improper filing of Molyneux's complaint in the United States District Court of the Virgin Islands. In May 2009, Molyneux fraudulently induced Jeffrey to resolve claims against Molyneux for, among other things, fraud and other serious misconduct relating to Architectural and Design and related services that Jeffrey paid Molyeux to perform but he never did. As part of that resolution, Molyneux returned to Jeffrey only a quarter of the more than $4 Million Jeffrey previously paid to Molyneux, claiming that he was experiencing a financial crisis and could not repay Jeffrey anything further. In lieu of monetary payment, Molyneux requested that he be allowed to provide items and services to complete the design, construction and exterior and interior design of the office pavilion presently under construction on Little St. James Island. The Agreement for Design Services attached to the Complaint, along with a separate Settlement Agreement between Jeffrey and Molyneux, are the result of Molyneux's request. For Jeffrey to accept Molyneux's request to provide items and services in lieu of payment to Jeffrey, the single most important requirement to Jeffrey was for Molyneux to deliver, install, restain and refinish the library cabinetry for the office pavilion that was then under construction. Jeffrey contracted with Molyneux in early 2006 to have this cabinetry custom built and finished with a dark walnut stain and a wax finish and then installed in the library of the office pavilion on the Island. At the time that Molyn