JDG Jaredian Design Group Architects, Engineers and Construction Managers 5333 RAADIIS GAD., Sum 14, SE THOMAS, U. 5. VIRGIN NANDI 00802.6900 • Post Office Box 6218, ST. Tmomm, U. S. VIRGIN ISlANDS 00804-6218 Tattrmorn: 1340) 777.1600 • FAX: (3401 777.1601 • F-MAIl: jdglvipowernet.net • Wissim: www.jaredian.com February 26, 2015 Jeffrey Epstein Owner Nautilus, Inc. 6100 Red Hook Quarter, Suite B3 St. Thomas, U. S. Virgin Islands 00802 Via E-mail: Istaod@amailcom RE: CLARIFICATION FOR THE BIDDING NEGOTIATION AND CONSTRUCTION PHASE SERVICES OF THE MAINTENANCE WORKSHOP ON LITTLE ST. JAMES CAY, ST. JOHN, U. S. VIRGIN ISLANDS Dear Mr. Epstein, We have been requested by Mrs. Daphne Wallace of your staff to clarify how the Bidding Negotiation and Construction Phase Services fee for the Maintenance Workshop will be developed. As we discussed at the site visit on Monday, we have performed these services on many private projects on an hourly basis based on the needs of the client. This allows us to review the stage of completion of the project over a period of time and ascertain whether construction is in compliance with the Design Documents. We recommend an Allowance of an additional $5,000.00 be established for these services over the life of the Maintenance Workshop's construction. This will be used for us to perform periodic inspections, solicit proposals, and provide responses for Request For Information by the Builder. Based upon our experience on this type of project and the likely amount of time to complete, the final cost will likely be in the neighborhood $3,500.00 to $4,000.00. We look forward to working with you and your Team once again. Should you hove any questions or comments, please feel free to call on me at 777-1600. Very truly yours, JAREDIAN DESIGN GROUP e icr4o. Joan P. oods, AIA, NCARB Prince Cc: Cecile deJongh, Business Manager, Southern Financial Trust LeRoy V. Smith, Jr., PE, Principal, Jaredian Design Group EFTA_R1_01356888 EFTA02363508