KIRKLAND & ELLIS LLP ee ad Cirgroup Center 163 East 53rd Sweot Jay P. Lethowsz, PC Now York, New York 10022-4011 To Call Woter Directty Facsunule (12) 4a8-4n00 lethowdzeharktand Com wow. tundend com August 18, 2008 S61) 820-8777 United States Atiorney’s Office Southern District of Florida Re: Jeffrey Epstem veal 1 write in response to your letter dated August 15, 2008 regarding the civil restitution portion of the Deferred Prosecution Agreement (the “Agreement’), ‘Thank you Jor contirming our posilion that the December modification proposal is not part of the Agreement. As expressed by U.S. Adermecy Acosta in his December 19, 2007 letter, the unorthodox use of a civil restitution statute in a federal plea agreement, which resulted in state charges against Mr. Epstein. has caused several miscommunications with respect to the implementation of the terms of that Agreement. In order to avoid any further miscommunications and to ensure that the 18 U.S.C. § 2255 aspects of the Agreement are carried out in a proper manner. it would be useful 10 come to an agreement us to the implementation of the civil restitution portion of the Agreement. As we have previously stated. Mr. Epstein fully intends to abide by the terms of the Agreement. and we hope you appreciate that our efforts to resolve any misunderstandings between Mr. Epstein and the government about the terms of the Agrecment are intended only to ensure that it is carried out fully and fairly. In an effort to avoid having cither pany unintentionally breach the Agreement. we suggest that steps be taken to clarify the meaning of paragraphs 7-10. ht would be extremely helpful to both sides to have an independent third party consider the Agreement and offer the final word on how certain clauses should be interpreted and satisfied. Because the government has already enlisted Judge Davis to select the attomey representative under the Agreement. we would be amenable to his serving in this role. In order w come to an agreement on the exact procedure by which the identified individuals will obtain restitution. | am providing you with our thoughts on three issues below. Crmcago Hong Kong London Los Angeles Munich San Franasco Wastwngwn, D.C. EFTA00215856

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KIRKLAND & ELLIS LLP August 18. 2008 Page 2 Once we come to an agreement on the following and vou provide a complete and final list of identified individuals, it will be appropriate to notify them. First. Lam concerned by your suggestion that you might want 10 increase the number of individuals on the government's list. | had expected the aumber to have become smaller, because when we spoke prior to signing the agreement, you told me that the government already had a list. and we were informed therealler that the September 24. 2007 list had been narrowed. Cenainly. anyone who was not on the hist prior to September 24, 2007 cannot permssibly be added to the list. Second, we will cooperate with the government to reach to an agreement as to substance of the notification to be sent to the government's list of individuals. Based on the Agreement, the information contained in the notification should be limited to (1) the language provided in the Agreement dealing with civil restitution (paragraphs 7-10) and (2) the contact information of the selected attorney representative. We object to the inclusion of additional information about the investigation of Mr. lipstein, the terms of the Agreement other than paragraphs 7-10. and the identity of other identified individuals. Third, as you are aware. the Addendum requires that “the parties will jomntly prepare a short written submission to the independent third-party regarding the role of the attorney representative and regarding Epstein’s Agreement to pay such atlomey representative his or her customary hourly rate for representing such victims subject to the provisions of Paragraph C. infra” We will certainly cooperate with the government to drafi such a joint submission and would be pleased to submit draft language to you for such a joint submission. | look forward to working with you to resolve these matters. | believe we have a mutual interest in moving past all of these issucs so that the civil restitution aspects of the Agreement can be fulfilled. Sincerely. a) |, . Letkowity ee: fe Chief. Northern Division EFTA00215857

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KIRKLAND & ELLIS LLP Fax Transmittal Citigroup Center New York, New York 10022-4611 Phone Fax Please notify us immediately if any pages are not received, THE INFORMATION CONTAINED IN THIS COMMUNICATION IS CONFIDENTIAL, MAY BE ATTORNEY-CLIENT PRIVILEGED, MAY CONSTITUTE INSIDE INFORMATION, AND IS INTENDED ONLY FOR THE USE OF THE ADDRESSEE. UNAUTHORIZED USE DISCLOSURE OR COPYING IS STRICTLY PROHIBITED AND MAY BE UNLAWFUL IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY AT: To Company: . Fax #: Direct #: CT United States Attorncy’s Office Po cc: Company: Fax #: Direct #: S| United States Attorney's Office fF Date: Pages wicover- Fax #: Direct #: Jay P. Letkowity, August 18, 2008 3 PY Fd Message. Oe EFTA00215858