Dear Jay: This letter is for the purpose of settlement discussions only. This letter and all statements made herein shall be subject to all of the protections available under Virgin Islands law, Rule 408 of the Federal Rules of Evidence and any other rules and/or privileges applicable to settlement discussions and communications, and shall not be admissible for any purposes in any litigation or other proceedings involving any of Mr. Epstein, L.S.J., LLC, Juan Pablo Molyneux or J.P. Molyneux Studio, Ltd., among others. Please be advised that nothing provided by this letter is intended or should be construed as a waiver by my clients of any rights they may have, including, without limitation, any rights, claims or defenses under the Agreement for Design Services or the Settlement Agreement between our respective clients, all of which are hereby expressly reserved. There are numerous uncorrectable issues relating to the Office Pavilion, which remains unfinished almost a full year after the parties entered into their settlement agreement and more than four years after Mr. Molyneux began working on this project Moreover, it is now clear that Mr. Molyneux induced my clients to enter into that settlement agreement through continuing fraudulent misrepresentations and omissions, as a result of which the settlement agreement is clearly voidable by my clients. Under the circumstances, engaging in negotiations with your clients over a punch list of items which we now understand could not be adequately corrected in the first place is a pointless exercise. Instead, I provide below several examples of serious misconduct by your clients that would provide ample grounds for legal action by Mr. Epstein and L.S.J., LLC. During the course of numerous discussions and in-person meetings with Mr. Epstein beginning in July 2005, Mr. Molyneux made numerous and repeated misrepresentations to Mr. Epstein. Mr. Molyneux misrepresented that he was an "architect". He fur