To: Jeffrey [email protected]] From: Steven Sinofsky Sent: Mon 6/10/2013 4:27:52 PM Subject: Re: grant vesting at 35.85 the whole deal is an even $15M. Sent from Windows Mail on Surface RT http://blog.learningbyshipping.com I @ 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 # 8/31/2013 55,159 1299375 8/31/2014 55,159 1299375 8/31/2015 55,159 1299375 8/31/2016 55,159 1299375 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). est Date Shams Pretax Grant It 8/31/2013 7,696 $269,360 811105 56,681 $1,983,835 1087120 EFTA_R1_00455126 EFTA01972029