From: David Stern

From: David Stern To: Jeffrey Epstein <[email protected]> Subject: Fwd: AG Date: Fri, 07 Feb 2014 15:52:27 +0000 I. Signing and closing was set - negotiation over 2. Binding government contract was signed by us as part of this closing they agreed to. I would not have signed this contract otherwise. 3. They had 7 months to pull out 4. Reasons for pulling out given previously were not that "negotiations were dissatisfying" 5. Let them name one point in the agreement they are not satisfied with (we agreed to all) Begin forwarded message: From: Richard Merkin Date: 7 February 2014 14:34:51 GMT To: 'David Stem' Cc: 'Jeffrey Epstein' <[email protected]> Subject: RE: AG Thank you for the mensch comment. My understanding of the facts are significantly different from yours. The individual that was in discussions with you and your lawyers found the discussions not satisfying. He recommended strongly against this involvement. To double check and verify I asked another investment professional to independently review and independently make a recommendation. Which he did. I hope for the best for you. In the final analysis, not only the deal points, but particularly for the challenge of the negotiation, the initial recommendation was to discontinue the negotiation. The second investment professional confirmed the recommendation. I hope to speak to you in the near future. Best Original Message From: David Stern [mailto: Sent: Friday, February 07, 2014 6:14 AM To: Richard Merkin Cc: Jeffrey Epstein Subject: Re: AG Dick, Since the company was founded 2006 I have NEVER taken a salary nor was one planned, actually to the contrary, as sign of personal commitment to you my CEO had reduced his salary to Zero since the summer. I remind you: in the summer (June!) you and I agreed on this deal. I know your team was aware that I turned away other investors based on your firm word and I have incurred legal costs in excess of USD 400.000 since. Your lawyers have not drafted a single document but made endless requests. Your new head of direct investments has spoken to me three times in his life for not more than 10 minutes. In fact, he told me that you didn't invest in companies that were not profitiable is proven inaccurate by your investment USD 1m in GNS Healthcare. EFTA00982978 You have an obligation to me and to Jeffrey, not to invest, but to behave like a mensch. There is little reason not to speak, it is unfair, uncalled for and certainly not in line with your reputation. David EFTA00982979