From: Richard Kahn
Sent: Sunday, January 15, 2017 2:01 PM
To: Jeffrey Epstein
Subject: Fwd: Jawbone

in addition to not meeting any of cash flow promises / new =artnerships / valuations promised on calls every 2 months with andrew =indsay we were never aware of how dire position was that hosain has had =o fund payroll

if =hings were moving in right direction how come they are feuding with =lackrock

medtronic and microsoft were 2 proposed partnerships yet =edtronic signs deal with fitbit

https://investor.fitbit.com/press/press-releases/press-release--details/2016/Medtronic-and-Fitbit-Partner-to-Integrate-Health-and-Activity-Data-into-New-CGM-Solution-for-Simplified-Type-2-Diabetes-Management/defa=lt.aspx

jason child new cfo was supposed to take reins from hosain =ad decision making - what happened?

Richard Kahn
HBRK Associates Inc.
575 =exington Avenue, 4th Floor
New =ork, NY 10022

Begin forwarded message:

From: =/b>Richard Kahn

Subject: =/b>Jawbone

Date: =/b>September 17, 2015 at 4:33:01 =M EDT

To: =/b>"jeffrey E." <jeevacation@gmail.com>

i spoke with Andrew Linsey, Anna and Will =rom Code Advisors as Hosain was unavailable last week only=5,000,000 of investment would be covered as this can only apply to =referred shares

our investment in Series 5 was as follows:

Preferred 695,301x =.19113 = 5,000,000 Common 1,260,233 x 3.96792 = =,000,000

I =as told on call that valuation of company at time of Series 5 was =,650,000 post Series 6, 7, 8 and Blackrock =ote have further diluted our investment and although they would not =ive me an exact figure our new breakeven without Series 8 participation =ppears to be 3,250,000

With Series 8 investment of 833,000 i believe believe we =ould receive the following on a sale of company post April 28 =016

1,000,000 7,500,000 from preferred and 0 =rom common (0 received without Series 8) 2,000,000 =nbsp; =/span>7,500,000 from preferred and 0 from common (0 received without =eries 8) 3,000,000 7,500,000 =rom preferred and 0 from common (0 received without Series 8) 3,250,000 7,500,000 from preferred and =,000,000 from common (10,000,000 received without Series 8)

it appears Series 8 =rotection provides protection from 1,000,000 to 3,250,000 on =iquidation

April 28 2016 is key date as it is 1 year anniversary of =lackrock investment and if company sold before that date they have a 3x =iquidation preference

As of last friday they have raised 33,000,000 =f the 35,000,000 needed for Blackrock to release final =0,000,000 If that is achieved they =ould have raised since April 28 2015:

220,000,000 Blackrock original =ote
40,000,000 Series 8 JPM (34) and Sequia =6)
50,000,000 Blackrock =dditional
35,000,000 Series 8 (33mm raised =0 date)
50,000,000 =nbsp; Blackrock final
395,000,000 =nbsp;Total raised

As of Sep 11, 2015 there =ash flow was as follows:

30,000,000 in cash
85,000,000 (Series 8 and final Blackrock)
115,000,000 potential cash

Once 85,000,000 is secured they will =inalize deal for an ABL credit line in the amount of 50,000,000 that =ill be collateralized by AR and Inventory

They mentioned that 44 would be cash =low positive however they did not elaborate on what their loss for 2015 =r 2016 would be..

When i pressed them and said i =hought they would would be out of money by mid 2016 and we again may be =urther diluted with a Series 9 or 10 they responded that they had new =anagement that would not allow this

They said Jason Child, new CFO, has =lready run analysis to ensure that they remain cash flow positive in =016 Not sure that is so realistic as they also =entioned that Fitbit already has market share and that they will not =hase market share via lower pricing or marketing

In =ddition they will not build large inventories with vendors if they need =o conserve cash Andrew stated that Hosain made =oor non financially focused decisions and new CFO will not allow that =oving forward

Jawbone believes it will be =he leader in the next phase which will evolve from basic wellness to =ealth and medical (blood pressure, respiration and oxidation)

Analogy was used that basic wellness market is similar to =martphones in the early 2000's and Symbian who was leader =isappeared

My concerns are as follows:

	a) Jawbone =s always one step behind and they keep jumping to the next Hot =dea..

b) There will inevitably be a Series 9 / 10 =ound as i believe they will again run out of cash middle of next year =ausing further dilution to Series 8 they are asking us to participate =n

Andrew also sent email with codes for free UP 2 or UP 3 =roduct I will order and have for you on your next =isit (do you have a color preference - black, silver, indigo and =ed?)

http://www.amazon.com/UP3-Jawbone-Activity-Tracker-Black/dp/B00=9E6DUK/ref=sr_1_1?ie=UTF8&qid=1442521265&sr=8-1&keywo=ds=up3

Please advise how you =ant to proceed with Series 8 proposed investment of 833,000 Thank you

Richard Kahn
HBRK Associates Inc.
575 Lexington =venue 4th Floor
New York, <u>NY 10022</u>

On Sep 17, 2015, at 2:38 PM, jeffrey E. <jeevacation@gmail.com> wrote:

did you check with hosssain re amount of investment =overed

-- =br class=""""> please note

The information contained in this =ommunication is confidential, may be attorney-client =rivileged, may constitute inside information, and is =ntended only for the use of the addressee. It is the =roperty of JEE

Unauthorized use, disclosure =r copying of this communication or any part thereof is =trictly prohibited and may be unlawful. If you have =eceived this communication in error, please notify us =mmediately by return e-mail or by e-mail to jeevacation@gmail.com, and destroy this =ommunication and all copies thereof, including all =ttachments. copyright -all rights reserved

4