EXHIBIT Case Document Entered on FLSD Docket Page of Case Document Entered on FLSD Docket Page of KIRKLAND ELLIS LLP AND AFFILIATED PAIITNERSHIPS Citigroup Center East 53rd Street Jay Lefkowitz P.C To Call Writer Directly lefkowitz kirkland.com New York New York VIA E-MAIL Alexander Acosta United States Attorneys Office Southern District of Florida South Australian Avenue Suite West Palm Beach Florida w.kirkland.com October Re Jeffrey Epstein Dear Alex Facsimile Dir Fax Confidential For Settlement Purposes Only Pursuant to Rule I write as a follow up to our conversation yesterday regarding the open issues that remain in the Epstein matter As you are aware we continue to have serious disagreements with Ms Villafana regarding the nature of the settlement process for identified individuals claims Legal representation in a lawsuit was never contemplated by the Federal Plea Agreement the Agreement Over the course of the negotiations of the Agreement the parties worked diligently to create an alternative dispute resolution for those identified individuals seeking a civil remedy for the conduct at issue in an effort to avoid long drawn out disputes over liability in public adversarial litigations Initially we proposed that Mr Epstein create a trust whereby a trustee would be appointed by the Circuit Court to disperse the funds to the identified individuals based on a good faith showing of injury In response Ms Villafana proposed the appointment of a guardian ad litem to represent the identified individuals not an attorney which suggests that litigation was never contemplated by either party Ultimately the parties agreed to Paragraphs and of the Agreement which allow for a single attorney representative to settle the claims of the identified individuals and create a procedural alternative to public adversarial litigation In keeping with the parties understanding of Paragraphs and you should know that we are in agreement with your choice of Judge Edward Davis but we believe Judge Davis should act as the attorney representative to settle claims pursuant to the Agreement and the parties longstanding understanding of the settlement process Because the process we have agreed to does not contemplate litigation with respect to the attorney representative Judge Davis can work to negotiate settlements with the identified individuals without further involvement by the government or its agents Below Ive outlined our main areas of concern with the approach Ms Chicago Hong Kong London Los Angeles Munich San Francisco Washington O.C RFP MIA Case Document Entered on FLSD Docket Page of Confidential For Settlement Purposes Only Pursuant to Rule Alexander Acosta October Page2 Villafana has taken regarding the role of the attorney representative and the settlement process for claims pursuant to Paragraphs and of the Agreement First Issue The Settlement Process and the Role of the Attorney Representative The settlement procedure we propose and which we believe is made clear by the Agreement is reasonable and consistent with the intention of the parties the attorney representative will represent the identified individuals provided they opt to enter into a settlement agreement with Mr Epstein with respect to their claims The attorney representative will negotiate a total settlement amount with Mr Epstein Once the United States has formally declined to prosecute Mr Epstein in this matter and each identified individual electing to settle has waived her right to pursue any other claims against Mr Epstein the attorney representative will distribute the proceeds in the manner he sees fit If the identified individuals cannot settle or opt not to settle on a damages amount with Mr Epstein then the attorney representative may not continue his representation and is barred from filing lawsuits pursuant to and the identified individuals would not be suing under as contemplated by Paragraph Based on the specific language in the contract and the intent of both parties we believe that the Agreement clearly provides that the identified individuals may opt to make use of the attorney representative so long as they can reach a settlement agreement with Mr Epstein If the parties cannot settle on a damages amount with Mr Epstein then the attorney representative may not continue his representation and is barred from filing lawsuits pursuant to The provisions of the Agreement make clear that the role of the attorney representative is limited to settling claims brought by identified individuals pursuant to the Agreement While Paragraph defines who may be represented by the attorney representative Paragraph outlines the scope of that representation Paragraph states The United States shall provide Epsteins attorneys with a list of individuals whom it has identified as victims as defined in U.S.C after Epstein has signed this agreement and has been sentenced Upon the execution of this agreement the United States in consultation with and subject to the good faith approval of Epsteins counsel shall select an attorney representative for these persons who shall be paid for by Epstein Epsteins counsel may contact the identified individuals through that representative Under Paragraph of the Agreement which provides the terms of the representation the attorney epresentative is only appointed to protect the interests of those identified individuals who elect to waive any claim for damages other than the damages agreed to by the parties Paragraph states If any of the individuals referred to in paragraph supra elects to file suit pursuant to U.S.C Epstein will not contest the jurisdiction of the United States District Court for the Southern District of Florida over this person and/or the subject matter and Epstein waives his right to contest liability and also waives his right to contest damages up to an amount as agreed to between the RFP MIA Case Document Entered on FLSD Docket Page of Confidential For Settlement Purposes Only Pursuant to Rule Alexander Acosta October Page3 identified individual and Epstein so long as the identified individual elects to proceed exclusively under U.S.C and agrees to waive any other claim for damages whether pursuant to state federal or common law Notwithstanding this waiver as to those individuals whose names appear on the list provided by the United States Epsteins signature on this agreement his waivers and failures to contest liability and such damages in any suit are not to be construed as an admission of any criminal or civil liability Paragraph addresses how Mr Epsteins waivers are triggered pursuant to a settlement with each identified individual Paragraph is clear that Mr Epstein will only waive liability so long as each identified individual proceeds exclusively under and agrees to waive damages other than an amount as agreed to between the identified individual and Epstein The Agreements silence with respect to what happens if the parties cannot settle on a damages amount indicates that the parties intended for the scope of the attorney representatives representation to be limited to settling claims with Mr Epstein not representing these identified individuals in lawsuits Ms Villafana however insists that the attorney representatives duties include pursuing a lawsuit under on behalf of each identified individual in the event that settlement talks are unsuccessful This interpretation is incorrect because Ms Villafana ignores Paragraph which limits the scope of the attorney representatives representation The longstanding intention of the parties is also consistent with our interpretation of the Agreement based on prior iterations of the Agreement which only refer to appointing a trustee or a guardian ad litem to protect the interests of the identified individuals Thus legal representation in a lawsuit was never contemplated under the Agreement Also Mr Epsteins agreement to pay the attorney representatives fees reaffirms that the parties never intended for the attorney representative to bring lawsuits includes a provision for attorneys fees but only ifthere is a monetary recovery If the Agreement contemplates as Ms Villafana suggests that the attorney representative could file suit on behalf of each identified individual Mr Epstein would never have agreed to pay attorneys fees for those that being suit and lose It is clear that Mr Epstein agreed to pay the attorney representatives fees because he assumed that each identified individual represented by the attorney representative would recover something by settling on their respective damages claim Ms Villafanas interpretation of the Agreement would also trigger profound ethical problems due to the conflicts of interests that would arise For instance if Mr Epstein agrees to pay for the attorney representatives fees and monthly expenses in any potentially litigated matter then the attorney representative would effectively be incentivized to reject settlement under in an effort to draw out the lawsuits and incur more fees If the lawyer were allowed to represent the identified individuals in a lawsuit the best interests of each identified individual might not be served because the attorney representative will always be more interested in pursuing lawsuits in lieu of settling claims against Mr Epstein efficiently and fairly This conflict RFP MIA Case Document Entered on FLSD Docket Page of Confidential For Settlement Purposes Only Pursuant to Rule Alexander Acosta October Page4 could compromise the attorney representatives duty of loyalty See ABA Annotated Model Rules of Professional Conduct Rule A lawyer shall not accept compensation for representing a client from one other than the client unless there is no interference with the lawyers independence of professional judgment or with the client-lawyer relationship And Mr Epstein would essentially be paying the attorney representative to sue himself Such a result is inappropriate and unconscionable The attorney representative will face other conflicts as well As a general matter multiple representation of a group of individuals that elects to settle on damages as well as one or more individuals who reject settlement carries with it the heightened potential for irreparable conflicts For example the ethics rules preclude an attorney from simultaneously representing parties that are likely to end up in conflict See ABA Annotated Model Rules of Professional Conduct Rule A lawyer shall not represent a client if there is a significant risk that the representation of one or more clients will be materially limited by the lawyers responsibilities to another client a former client or a third person or by a personal interest of the lawyer Here I can imagine a case where one of the identified individuals is called as a witness by Mr Epstein to dispute an allegation by another identified individual who is a party to the case The attorney representative would have to cross examine the witness who is also his client In another scenario the attorney representative may receive privileged information from one identified individual which precludes him from using that information with respect to another identified individual In each scenario the attorney representative will be simultaneously representing parties that may be in conflict in violation of Rule For these reasons we believe that Ms Villafanas interpretation of the Agreement in connection with the attorney representatives role in the settlement process must be rejected Second Issue Waiver of Liability Ms Villafana incorrectly alleges that Mr Epstein has waived liability even when claims are not settled Pursuant to the Agreement if the identified individuals choose not to settle with Mr Epstein he will not waive liability for those individuals whose claims are not settled by the attorney representative Paragraph is clear that Mr Epstein will only waive liability so long as each identified individual proceeds exclusively under and agrees to waive damages other than an amount as agreed to between the identified individual and Epstein Paragraph Agreement Consequently those identified individuals who choose not to settle with Mr Epstein are not covered by the terms of the Agreement and will have to prove among other things that they are victims under the enumerated statutes Third Issue Communication to Identified Individuals Ms Villafana proposes that either she or federal agents will speak with the identified individuals regarding the settlement process We do not think it is the governments place to be co-counsel to the identified individuals nor should the FBI be their personal investigators Neither federal agents nor anyone from your Office should contact the identified individuals to inform them of the resolution of the RFP MIA Case Document Entered on FLSD Docket Page of Confidential For Settlement Purposes Only Pursuant to Rule Alexander Acosta October I Page5 case including appointment of the attorney representative and the settlement process Not only would that violate the confidentiality of the Agreement but Mr Epstein also will have no control over what is communicated to the identified individuals at this most critical stage We believe it is essential that we participate in crafting a mutually acceptable communication to the identified individuals We further believe that communications between your Office or your case agents and the identified individuals might well violate Rule of the Federal Rules of Criminal Procedure The powers of the federal grand jury should not even in appearance be utilized to advance the interests of a party to a civil lawsuit We propose that the following joint communication be made to Judge Davis who will act as the attorney representative and communicate accordingly with the identified individuals As counsel for the United States of America and Jeffrey Epstein we jointly write to you to provide information relevant to your services as the attorney representative to represent certain identified individuals who may have a civil claim against Mr Epstein The United States has conducted an investigation of Mr Epstein regarding his solicitation of females some of whom the government alleges were underage to engage in prostitution in his Palm Beach County home Based on this investigation the United States has identified certain individuals who may be eligible to seek a civil remedy against Mr Epstein pursuant to U.S.C The United States and Mr Epstein have agreed to a resolution of this investigation As part of the resolution of this matter the parties have agreed to a settlement process for these identified individuals The parties agree that you will contact each identified individual and explain the nature of the resolution of this matter including the settlement process in accordance with a joint communication drafted by the United States and Mr Epstein The parties further agree that you will interview each identified individual to confirm that they have a viable claim against Mr Epstein pursuant to U.S.C Pursuant to the resolution of this matter you will represent only those identified individuals who elect to settle their claims with Mr Epstein and your duties will be limited to negotiating a settlement on the identified individuals behalf and dispersing the settlement proceeds Mr Epstein has agreed that he will not contest jurisdiction in the Southern District of Florida and he will not contest liability pursuant to U.S.C for those identified individuals who elect to settle all potential claims against him regarding this matter Mr Epstein has also agreed to pay reasonable attorneys fees and expenses that you incur as a result of settlement negotiations and settlement administration of this matter RFP MIA Case Document Entered on FLSD Docket Page of Alexander Acosta October Page Confidential For Settlement Purposes Only Pursuant to Rule To settle these claims the parties agree that you will negotiate a total settlement amount with Mr Epstein for each identified individual who elects to settle After the United States formally declines to initiate any prosecution against Mr Epstein related to this matter and each identified individual you represent executes a waiver of all rights to pursue any litigation regarding this matter you may then distribute the proceeds from the total settlement amount to the identified individuals in the manner you see fit For those identified individuals who elect not to settle their claims Mr Epstein will not waive his right to contest jurisdiction liability or damages Furthermore Mr Epstein will not pay for their attorneys fees or expenses and you may not represent these individuals in any capacity Each of these individuals will be responsible for finding hiring and paying for her own attorney The details regarding the United States investigation of this matter and its resolution with Mr Epstein is confidential You may not make public statements regarding this matter If you have any questions regarding this matter including the settlement process you must contact Mr Epsteins counsel and request a joint clarification from said counsel and the United States You should not contact the United States directly The parties will make every effort to answer your questions via a joint communication Alex as you know when Mr Epstein signed the Agreement he did so in order to reach finality with your Office and with the express representation that the federal investigation against him would cease To that end I would like your assurance that after you and I agree to the issues raised in this letter that it will be the end of the United States involvement barring a willful breech of the Agreement Specifically the government or any of its agents will not make any further communications to the identified individuals and will not make any ex parte communications with Judge Davis I look forward to resolving these open issues with you during our call today 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