<table><tr><th>From:</th><th>Richard Kahn</th></tr><tr><td>Sent:</td><td>Wednesday, August 31, 2011 9:31 PM</td></tr><tr><td>To:</td><td>Jeffrey Epstein</td></tr><tr><td>Subject:</td><td>discussion topics</td></tr></table>

## 1) Loans Receivable

a) Victor - still owes $2,500 plus accrued interest at 2% - he =ade his last payment on 7/26/2011 - i have called and emailed 2-3x per =eek with no response from him -

b) Barry Josephson - Still owes $30,000 plus accrued interest at =2% - wants to make payments beginning after labor day and final payment =y Oct 1

c) Adam Bly • owes approximately $350,000 with accrued interest = he updated me this week and is trying to do a capital raise - the one =ndividual he targeted to replace your loan fell through - he plans to =egin making interest payments of 24% on original balance of =00,000 or $6,000 per month in October

d) MC2 - credit line balance is $744,598 (2011payments ytd have =een $40,000) - Am I still waiting til Oct 1st to

press..

e) $900
f) -$2,000

Let me know who and how hard to push above individuals. =n addition should i be firm on interest from Victor and Jacobson?

## 2) Vendor Credits

	a) Boyson - $43,194

	b) Flight Options - $41,674

	c) AAG - $72,253

	d) Sacco carpet - $77,180 (original amount 120,832 less lsj =rder 43,652)

	e) Pinto $0 - repaid earlier this month

3) Reminder on 301Annual Apt Costs

	a) Jean Luc $18,195
b) $9,774
c) $27,839

4) Liana Vernava wire instructions - When should i send wire and for =hat amount?

5) LSJ cement cow insurance claim - we received 100% reimbursement of =ur expenses - $11,669

6) Changing ownership of entities to USVI

	a) LSJ LLC

	b) Palm Beach

	c) Zorro

	d) 71st Street

## 7) FTC

a) Thoughts on new EDC entity

b) FT Real Estate - Merrill brokerage account balance remains =79,680

## 8) Cars

## 8) Cars (cont.)

a) 2006 Bentley has Florida plates - Is this something we need =o readdress?

9) Plane Insurance renewal costs - Policy period 9/1/2011 - 8/31/2012

	a) JEGE - ground only $15,500 - (insured value 7,500,000) - no =ncrease from last year ($550,000 deductible)

	b) Hyperion - full motion $37,800 - (insured value 2,000,000) - =o increase from last year ($0 deductible)

	c) Bell - full motion $54,760 - (insured value 1,800,000) - no =ncrease from last year ($0 deductible)

	d) 576 - ground only $29,200 - (insured value 2,000,000) - no =ncrease from last month ($0 deductible)

Total Annual Premium $137,260

## 10) NES LLC

a) Local Law 11work - Darren is reviewing AIA documents from =erbert Rose for $110,000 - Architect has approved building department =nd landmark approvals on scope of work.

We are hoping work will begin around 9/15 and should take =pproximately 10 weeks to complete b) Siemans is completing installation of last panel this week =nd will finish operational issues next week c) Source One is threatening legal action over $10,000 =utstanding invoice - Should i try to settle for lesser amount?

d) Control 4 / Savant - Is this something we should pursue? =cott??

11) Reminder on updating JEE days summary - <u>LSJ,</u> NY & outside US

12) Nick Lambros - waiting on Darren to write legal letter requesting =ack $35,000

13) Life Insurance Physician request - should it be sent to Bernard =ruger or Woody Merrell?

14) Jewelry Insurance Policy

a) ring is currently insured for $1,548,942 at a rate of .011 =or an annual cost is $17,038 we could reduce cost by 50% or $8,519 by moving ring to a Bank =ault box which would cost $150 per annum. b) are any items still missing - do we need to file a claim ??

15) Marvin Minsky and Gloria were paid jointly 8,333.33 in August and =ext payment will be paid September 1- Is there anything you need me to =ollow up with them on.

16) Thoughts on future accounting firm..

## 17) Feedback on LSJ and Zorro walk thru by Hyatt employee

	a) Manolito / Wendy outrage with Karen and Brice

b) LSJ / IG - staff reductions - Brice just hired and individual =t $23.00 per hour without consulting with anyone to replace Richter

Emad and I believe this was unnecessary as Bosco operates the =arge well and we are trying to reduce staff.. c) I would like to review with you Brice / Karen schedule for =uture employees

18) 2010 Gift tax return - i wanted to review schedule with you before i =orward to George Tax return not due until 10/15/2011 We paid $60,000 on 4/15/2011 as an estimate

For 2011and 2012 we have the benefit of the new total gift tax =xclusion being increased from $1,000,000 to $5,000,000 so no money will =e owed but we will still have to file.

## 17) Feedback on LSJ and Zorro walk thru by Hyatt employee (cont.)

Richard Kahn
HBRK Associates Inc.
301 East 66th Street, Suite 10F
New York, NY 10065

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