<table><tr><th>From:</th><th>Steven Sinofsky ◄</th></tr><tr><td>Sent:</td><td>Monday, June 10, 2013 4:33 PM</td></tr><tr><td>To:</td><td>Jeffrey Epstein</td></tr><tr><td>Subject:</td><td>Re: grant vesting</td></tr></table>

This is what I have for the payments based on 35.00 share.

Sent from Windows Mail on Surface RT http://blog.learningbyshipping.com I @stevesi

From: Jeffrey Epstein
Sent: Monday, June 10, 2013 12:50 AM
To: Steven Sinofsky

Good try re vesting schedule , you get an A for effort . I'll talk to you re hedging

On Monday, June 10, 2013, Steven Sinofsky wrote:

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 #

<table><tr><th>Date Shares</th><th>Grant #</th><th></th></tr><tr><td>8/31/2013</td><td>55,159</td><td>1299375</td></tr><tr><td>8/31/2014</td><td>55,159</td><td>1299375</td></tr><tr><td>8/31/2015</td><td>55,159</td><td>1299375</td></tr><tr><td>8/31/2016</td><td>55,159</td><td>1299375</td></tr></table>

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).

<table><tr><th>Vest Date</th><th>Shares</th><th>Pretax</th><th>Grant #</th></tr><tr><td>8/31/2013</td><td>7,696</td><td>$269,360</td><td>811105</td></tr><tr><td>8/31/2013</td><td>56,681</td><td>$1,983,835</td><td>1087120</td></tr><tr><td>8/31/2013</td><td>47,368</td><td>$1,657,880</td><td>1180497</td></tr><tr><td>8/31/2013</td><td>49,643</td><td>$1,737,505</td><td>1299366</td></tr></table>

<table><tr><th>8/31/2013</th><th>27,580</th><th>$965,283</th><th>1299375</th></tr><tr><td>8/31/2014</td><td>47,369</td><td>$1,657,915</td><td>1180497</td></tr><tr><td>8/31/2014</td><td>49,643</td><td>$1,737,505</td><td>1299366</td></tr><tr><td>8/31/2014</td><td>27,580</td><td>$965,283</td><td>1299375</td></tr><tr><td>8/31/2015</td><td>49,644</td><td>$1,737,540</td><td>1299366</td></tr><tr><td>8/31/2015</td><td>27,580</td><td>$965,283</td><td>1299375</td></tr><tr><td>8/31/2016</td><td>27,580</td><td>$965,283</td><td>1299375</td></tr><tr><td></td><td></td><td></td><td></td></tr></table>

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.

Sent from Windows Mail on Surface RT

http://blog.learningbyshipping.com | @stevesi

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