From: Vahe Stepanian Sent: 3/26/2014 1:44:39 PM To: CC: Paul Morri Subject: Re: Biotech Sell-Off.... [CI Attachments: pic04223.gif; pic16267.gif; pic02814.gif; pic21074.gif; pic09470.80; pic00501.gif; pic16207.gif; pic20724.gif; pic11162.gif; pic26326.gif; pic09672.gif; pic24695.gif; pic11657.gif; pic25569.gif Classification: Confidential Jeffrey - following up about your biotech holdings with an updated chart current price a/o —1:40pm EST today. (Embedded image moved to file: pic04223.gif) Please let us know how to proceed. Depending on your view, will look into unwinding, hedging, or adding to your exposure. Thank you, vahe From: Jeffrey Epstein <jeevacation@gmail .conm. To: Tazia Smith Date: 03/25/2014 09:42 Am Subject: Re: Biotech Sell-Off.... [I] remind me tomorow remind On Tue, Mar 25, 2014 at 7:30 AM, Tazia Smith Classification: For internal use only wrote: Jeffrey - Biotech posted sharp declines. You are up 5970,282 across your basket of names as of yesterday's (3/24) close (detail below along with chart of Nasdaq Biotech Index and your holdings). consider unwinding or hedging now and watching for entry point via total return swap or zero cost risk reversal as this negative momentum bottoms out. Note: Ariad an outlier (incrementally positive news on drug, Iclusig). The Financial Times features an article this morning suggesting that the sell-off in Biotech is a signal of a broader market peak. A letter from congressional representatives to Gilead questioning its plans to sell a hepatitis C drug (named Sovaldi) for 584,000 per dose has put the spotlight on congress' concerns that the expense might saddle state medicaid programs with steep costs. US is the only major health-care market remaining without any meaningful drug price controls -- increased risk for the sector once the Congress gets involved, especially if focused primarily on pricing. (Embedded image moved to file: pic16267.gif) Nasdaq Biotech Index - lyr Price History (Embedded image moved to file: pic02814.gif) Ariad - lyr Price History CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 111004 CONFIDENTIAL SDNY_GM_00257188 EFTA01453430