CASI LLC

Computer Aided Surgery Informatics

Formerly known as Computer Aided Surgery, Inc

Inventors of Digital Morse Theory (DMT) for

Innovative Medical Anatomic Modeling and Advanced Surgical Super-specialty Research
D. B. Karron, Ph.D.
President and Chief Technical Officer
300 East 33rd Street, Suite 4N New York, New York, 10016
Telephone and Voice Mail: +1(212) 686 8748 Fax: +1(212) 448 0261.
Electronic Mail: karron@casi.net Internet/World Wide Web: http://www.casi.net

Friday, October 31, 2003 at 019:57:12 Hours

Joan Hayes, CPA

239 West Delano Avenue
Yonkers, NY 10704-3827

BY E_MAIL to jhayes@jmhayescpa.com

RE: Margret D. Ferrand

Dear Ms. Hayes;

This letter is in response to your telephone call of Tuesday last regarding backup documentation on D. Ferrand
payments made with NIST funds in Year 1 Specifically you had asked for 12 invoices for Ferrand. Ferrand did not
bill monthly. She generally was paid weekly as both a program contractor and non program contractor.

Ms. Ferrand had worked for CASI for many years in multiple capacities. She started with me at in 1995 as my office
and home cleaning contractor. She qualified as a contractor because I did not provide direct supervision, she came
and went as she pleased, and had keys to my office/apartment. She purchased supplies as needed and I reimbursed
her for her out of pocket costs. Her tasks included cleaning and cooking. As is CASI policy, I endeavor to promote
from within my staff, I have asked her to do more than housekeeping.

She is bright and has a mathematical aptitude. I soon found out she knew how to reconcile checking accounts, and
she did my reconciliations and served as junior bookkeeper and bookkeeper’s assistant. Further, she had some
facility with the computer and learned our paperless Paperport filing software and our filing conventions. She also
scanned and filed papers for CASI.

With the start of the ATP-NIST program, she was paid approximately 100$ generally every week for from NIST
program as well as funds from my personal account. She would clean on weekends and would come in during the
week to scan and file papers. Considering the heavy useage of my apartment due to the number of program
employees here, frequently round the clock I decided that some allocation of her cleaning costs could be made.

I can provide a list of her work products, specifically directories of scanned program invoices and research papers,
by date performed and items scanned and filed should you wish more detailed support.

I can also provide copies of canceled personal checks in payment of her cleaning activities.

If you need further backup, we can research the bills entered on her behalf and I can provide a list of her days of
office work and her days of cleaning work, program work performed as well as non program casi work performed.

Sincerely,

Dr. Karron

This file is “Hayes Ferrand CASI DBK New Letterhead 01.doc” created with template: ‘CASI LLC DBK New Letterhead v01.dot’, created at
Friday, October 31, 2003 19:01:00 H,
Saved at Friday, October 31, 2003 19:56:00 H and printed at Friday, October 31, 2003 19:57:00 H
of size 2,307 bytes of 456 words keyed in by dr d b karron Pages 1 of 1 Pages.