EFTA01967464

To: Jeffrey Epsteinljeevacation©gmail.com] From: Steven Sinofsky Sent: Mon 6/10/2013 3:52:51 AM Subject: grant vesting NOTE: The payment date is 15 days after the vest date, not at agreement -- it means I do need to hedge the whole thing because the earnings call for this quarter happens before Sept 15. Can you tell me what to buy in order to hedge this? I think that will be important, certainly in the immediate term. There is one grant that I only get 50% of -- does it vest over the same length of time as the original grant (that is 50% each vesting period through the original 8/31/16) or does it vest until 50% of the shares are vested (meaning it completes vesting in 2014). The original schedule: Date Shares Grant # 8/31/2013 55,159 1299375 8/31/2014 55,159 1299375 8/31/2015 55,159 1299375 8/31/2016 55,159 1299375 220,636 This is the grant called out specifically as #0000001299375. Otherwise the full amount is as follows assuming vesting at 50% for a long time (pretax at $35). est Date Shares Pretax Grant # 8/31/2013 7,696 $269,360 811105 8/31/2013 56,681 $1,983,835 1087120 8/31/2013 47,368 $1,657,880 1180497 8/31/2013 49,643 $1,737,505 1299366 8/31/2013 27,580 $965,283 1299375 8/31/2014 47,369 $1,657,915 1180497 8/31/2014 49,643 $1,737,505 1299366 8/31/2014 27,580 $965,283 1299375 8/31/2015 49,644 $1,737,540 1299366 8/31/2015 27,580 $965,283 1299375 8/31/2016 27,580 $965,283 1299375 418,362 $14,642,670 First payment (9/15) is $6.6 pretax at $35 a share. Even at $30 the after tax number is $8.2 (before you and Jay). The original offer was $5M cash and we got to about 9M cash, pretax. EFTA_R1_00446609 EFTA01967464 Sent from Windows Mail on Surface RT http://blog.learningbyshipping.com I @stevesi EFTA_R1_00446610 EFTA01967465