EFTA01883271.pdf

To: Boris Nikolic From: Jeffrey Sent Fri 5/18/2012 2:28:49 PM Subject• Fwd: China 7? Sorry for all the typos .Sent from my iPhone Begin forwarded message: From: David Stem < Date: May 17, 2012 3:30:40 To: Jeffrey Epstein <[email protected]> Subject: Fwd: China Please see below. I suggested a call with you. Weird..... Begin forwarded message: From: Richard Merkin •,1 > Subject: RE: China Date: 17 Ma 2012 20:25:33 GMT+01:00 To: ' David, I am going to be in Palm Springs tomorrow running back and forth between two venues. One, a healthcare conference, which is Thursday, Friday, Saturday and a tennis event with Bill Gates Friday, Saturday, and Sunday, so I may be on the court in the afternoon. What I meant by structure would be either convertible preferred or a note with detachable warrants, etc., but most importantly what would secure the investment. I appreciate the benchmarks, but wouldn't each benchmark have to have a tangible worth for security purposes? And I still need clarification on source of revenue. Is there an agreement from a credible buyer to purchase once the benchmarks are met? Pm leaving in an hour for the conference and I should be back Tuesday, so either Wednesday or Thursday should be good. Begin forwarded message: EFTA_R1_00297336 EFTA01883271  From: Richard Merkin c > Subject: RE: China Date: 16 Ma 2012 00:16:20 GMT+01:00 To: ' < M > Can you send me a structure that will protect our down side. I will have our counsel, Mike Kelcy review it. He had questions about how do we monetize this, what happens after the expiration of the 5 year contractual period, how does AG capture the benefits of increased efficiency and PRC healthcare delivery system? I think I explained most of his concerns to him, but I wasn't able to specify what secures the $10M investment. Any help in clarification would be appreciated. EFTA_R1_00297337 EFTA01883272