MEMORANDUM 

JULIUS BAER TRUST COMPANY

(CAYMAN) LTD.

To Sabina Duerr Gerber

Julius Baer Family Office, Zurich

Date 20 May 1999

From Tia Healy, Trust Department

Telephone 345 949 7212
Fax 345 949 0993

Subject Moonstone Trust

Dear Sabina,

I refer to your memo of May 6 th to Nick. This account has been reassigned to me, and I have just
completed a review of it. I know that you are aware that there is a considerable amount of
documentation missing but as the client was in Zurich recently I hope that some of the following will
now be forthcoming.

 A Letter of Wishes client has not yet provided

 Copies of Due Diligence on Dr. Schuler (including occupation and source of funds) letter on file
from Dr. T. Baer stating that he knows the client and to the best of his knowledge the funds do not
emanate from criminal sources. This is insufficient, the fact that due diligence is done by an
outside office that we have full confidence in does not mean that we should not have basic
information on the client for our files.
 Copy of Passport of Dr. Schuler not provided
 Legal Opinions not provided

For the company Pan-Ox International Inc. (B.V.I.), we have never had any statements or valuations.
Apart from a letter from Dr. Supino stating that on October 21 st DEM (this is USD so OK) 832,500 was
paid into the account we have no details of the activities of the account or if there have been any
further additions. I note that the final distribution was DEM1,000,000 – was the DEM162,500 made
up entirely of gains on the portfolio? At minimum I believe that we should be receiving statements
and valuations for the company. we will request copies of statements from the directors. Company
directors are B&K lawyers. There are continuing mumblings from law firms about Trustee’s duties
with regard to non-managed companies which suggest that they are not completely confident that
clauses in Deeds which supposedly permit the trustees to ignore special companies are effective
either in protecting the Trustees from liability or in removing their fiduciary obligations.

I also note that you mentioned in January, following a conversation with Dr. Baer, that the trust might
be terminated and I was wondering if you had any further information on the future of the trust. no
comment

Finally, I have prepared the resolution for the additional DEM200,000 but note that we have not had
formal request for this additional amount and as such cannot attach same to resolution. We would
appreciate it if you could arrange for such a request to be obtained for our files. not provided
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I look forward to hearing from you soon.

Kind regards,

Tia Healy
Trust Officer

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