EFTA02662872

From: jeffrey E. <[email protected]> Sent: Saturday, January 21, 2017 2:49 PM To: Hosain Rahman Subject: Re: Final Notes <CONFIDENTIAL SETTLEMENT COMMUNICATION - FOR SETTLEMENT PURPOSES ONLY> LWyers will talk tomorw On Sat, Jan 21, 2017 at 9:41 AM Hosain Rahma What's a good time today? </=iv> On Jan 20, 2017, at 4:30 AM, jeffrey E. <jeevacation@gmail.=om <mailto:[email protected]> wrote: i can talk sometime tomorrowl I would like yo= to tell me of ian osbournes role. did he get any commss=on fees, value on my investment. ? CAUTION you are=walking a taut tightrope with me. . suggesting that my witness=s will be of the same mind in a lawsuit. its clear that =lackrock will support my complaint - strongly. On Tue, Jan 17, 2017 at 5:56 PM= Hosain Rahman >=/span> wrote: Hi Jeffrey,..A0 Here is some background on the BlackRock and communication that we =ad with the Kuwaitis on it. I got clearance to share it with you. We are f=nalizing the other materials to share with you. Please tre=t this as a settlement communication. =br class="gmail_msg"> Let's discus=, Hosain Begin forwarded message: From: Hosain RahmanM Subject: Final Notes Date: October 11, 2016 at 2:18:12 AM PDT </=pan> To: "Farouk Bastaki Cc: "Hussa=n AlHalabi EFTA_R1_01911974 EFTA02662872 Farouk, Attached is the bottomline analysis of the options availa=le to the Company right now. It is a pretty stark difference between the t=o paths. Ultimately we are asking BlackRock to chose the path that is econ=mically best for them - we are killing ourselves for them to have a better=financial outcome. Our intentions should be aligned... I've also attached a timeline of our BlackRock relationsh=p. There is a one page summary at the beginning and the full detail behind=it. Hey are notes in some key areas:<=div> The Senior Investment Analysts on our deal have been Daniel Daniel and Pa=rick Edelmann. They seem powerless in the situation and do not stand up to=Lisa. • No one from BlackRock has visited =awbone in 2016. They have not seen any of the new things we are working on= No demos of the prototypes, nothing. Possible anticipated points from BlackRock and our responses =div style="font-family:helvetica;font-size:12px" class="gmail_msg"> • Management team- we don't trust Hosain, the Board, his managemen= team, everything he and the team have told us has turned out to not be tr=e, promises are never hit. We have missed targets and it has been =ainful. We are taking great care to make sure we don't repeat the =istakes of the past, there are reasons we missed targets - slow sales in s=ores, quality issues, product delays. We had a bad product cycle and we ha=en't been funded to come out of it. Instead of focusing on the bus=ness we fight with BR. It's a waste. But to your point it sort of =oesn't matter relative to the economically rational decision going=forward. • Wasting money - opex super high put in this much money=three months later they needed more money Again perhaps=we should have cut expenses earlier but we needed to move the ball forward=to where it is today in many areas. We have a smart focused plan going for=ard where have a very manageable burn rate and are raising 2 years of oper=ting capital. We have never done this in the history of the business.4*=A0 • Deals aren't real, they create the term shee=s and they aren't real, we can't respond until =hey are real. No one will move forward with closing until term sh=ets are agreed to. This feels like a stall tactic. • They threw this La=ry/JPM term sheet in front of us, Larry Unrein says he isn't sure =f he will do it or not, we got the feeling that JP Morgan wasn't a sureshot*=A0- Larry hadn't taken the deal to his investment committee and go=ten final approval because he wanted BR to sign off on it before he got th= final approval to ensure he didn't have to go back multiple times= If BR shows flexibility and a willingness, Larry will come through and fu=d. Other investors are also happy to participate. Third party feedback • Our Skadden lawyer on the re-structuring side is widely considered to be =he top re- structuring lawyer in the country. He will tell you he has never=seen anyone behave as BlackRock has behaved in the dozens of deals he has =orked on - no debtor has not even engaged in a dialogue to give feedback o= possible solutions. • Skadden has also st=ted repeatedly that the Board since May has done more than any other Board=they have ever seen in exploring every option and finding the best solutio= for all constituents - we have turned over every possible stone we could =hink of to find a solution. • P.IT has never seen=a lender behave this way in any situation they have been involved with CODE does not understand what BlackRock is doing a=d why 2 EFTA_R1_01911975 EFTA02662873 Thanks again for your help, Hosain =br> =div class="m_-2626995313462290281m_4017670083419896395AppleOriginalConterts gmail_msg"> <=iv class="gmail_msg"> </=iv> 4>=A0 please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only forcr class="gmail_msg">the use of the addressee. It is the property of JEE Unauthorized use, disclosure =r copying of this communication or any part thereof=is strictly prohibited and may be unlawful. If you =ave received this communication in error, please no=ify us immediately by return e-mail or by e-mail [email protected] <mailto:[email protected]> , and destroy this com=unication and all copies thereof, including all att=chments. copyright -all rights reserved <i=iv 3 EFTA_R1_01911976 EFTA02662874