From: Jeffrey Epstein <jeevacation®gmail.com> To: David Stern <E=M=> Subject: Date: Tue, 21 Jan 2014 21:27:04 +0000 Erez, I am shocked beyond words after my phone call with you this morning. you informed me that the closing the of transaction as previously agreed between Dr Merkin , his team and me on July 19 would not now proceed. You have been misinformed as you had stated emphatically that the government contract that was signed in December with a value RMB 1 million, and you postulated that Heritage was only informed about this contract amount (that you called "insignificant" sometime in December. This is obvioully a serious misunderstanding . I. The key terms of this contract were discussed and agreed during the meeting with Dr Merkin and Adam Goldston on July 19. I stressed that a RMB 1 million is the cut off for tendering requirements under Chinese law and explained that this contract signed with a central Ministry body is without a doubt a highly significant milestone for the business. 2. Due to the significance of these terms Adam Goldston on behalf of Heritage asked for exact wording for the term sheet. This was provided on July 23 in writing (email attached). "A signed agreement between Asia Gateway Healthcare Information Technology and any governmental party under the jurisdiction of the Ministry of Human Resources and Social Security of the P. R. China, having a value of no less than RMB 1 million, for use of the Asia Gateway Healthcare Insurance Information Processing And Analytics System." 3. From the first Term Sheet draft sent by Adam Goldston/Heritage to me dated on July 26, the term sheet always referred to the above quoted the exact same clause which clearly states the amount of RMB 1 million. 4. Since the first draft of the Stock Purchase Agreement until the final Heritage agreed Stock Purchase Agreement clause 6.02 c) states: "the Company or Asia Gateway shall have entered into a contract with a division of the Ministr