From: Hosain Rahman
To: Jeffrey Epstein <jeevacation@gmail.com>
Subject: Confidential Proposal - For Settlement Discussions Only
Date: Fri, 10 Aug 2018 01:28:46 +0000
Jeffrey,
Thanks for the conversation last week. I appreciate you sharing your perspective candidly and I want to
apologize for the bad communication during that period of time. We should have been better regardless of the
circumstances and challenges we were facing.
In terms of how we move forward I propose the following:
• We give you 40bps (0.40%) of Series A Preferred stock in the new company, Jawbone Health Hub, on a
pro forma basis, so this would be the fully diluted ownership level after the Series A financing is
completed. This is more than what you (Mort) owned in the old company, fully diluted. Our records
indicate that Mort had 33bps (0.33%) fully diluted in the old company in 2017.
• We would give you this stock for being a "Strategic Advisor to the Company" where you would give us
advice time to time. For example you could give us insight on we should navigate the Middle Eastern
markets as we seek to expand our distribution beyond Dubai, etc.
• This grant would effectively crease your ownership relative to before and unlike the old company this new
stock will not be sitting underneath any debt or anything once the Series A is done. You will be at the top
of the capitalization stack.
By way of background on the Jawbone Health Hub:
We are now building a personalized subscription healthcare service that uses continuous health data and
combines machine intelligence with human medical insight to catch diseases and issues early and provides daily
personal guidance for how users should manage themselves to mitigate issues and be their best. It's almost like
personal health as server management. In phase 1 of the offering we screen folks for diabetes, hypertension,
different types of arrhythmias, sleep apnea, obesity, and stress. We have completed clinical trials with Stanford,
UCSF, Mayo, etc. with strong results and are rolling out the service already on a limited basis.
We are currently closing our Series A, legals docs are done and out for a $45M raise at a $50M pre-money
valuation with a targeted first closing in mid September. We've also already closed about $8M with a bunch of
angels into a 20% discount convertible note to the Series A (so $40M pre) - this note will remain open until the
first close of the Series A. You are obviously welcome to participate in any of these financing instruments of
course if you want to but regardless we will give you the aforementioned pro-forma share grant of 0.40%.
Please let me know if you have any questions - I believe this proposal gives you a legitimate opportunity for
capital recovery and a possibility for a return if we are successful. I do hope we can resolve things and be
partners again.
Thanks,
Hosain
EFTA01006918