5? Replyall "f i - Re: suzannesch@? le?iL' r?l?w" Julius Schwarz 5 Deleted Her": Arif Letteitd CC E: 30 +18 LT-owriioad Ewe to UneL?Jri'u'e - Original Message From: Julius Schwarz Date: Thursday, May 31, 2007 11:59 am Subject: To: suzannesch@? Julius R- Executive Vice President Bayrock Group, LLC Trump Tower 725 Fifth Avenue. 24th Floor New York, New York 10022 Tel: 212?207?6650 Fax: 646-536-8929 READ TRUMP AND THE 10/3/16 FORBES.COM May 31, 2007 Mr. Tevfik Arif Dear Mr. Arif: There were some things that you said and did yesterday that may have been unintentional, but which has made be quite upset. You said that some people think that they do more than they really do at Bayrock. I believe you were referring to me. You also said that I should ?stick to law?. Both statements as they apply to me are fundamentally unfair and absolutely incorrect. Time and again this company has almost gone under due to the past of our partners and prior dealings done before I came to Bayrock. In addition when I came here, Bayrock was not financiable and was under water. used every available resource I had and I worked tirelessly to ensure that this company stayed afloat. I have also repeatedly covered for Felix and Jody as a result of neither being here much of the time. I also want to remind you of the following: Whitestone was able to close due to me getting Apollo to step up and finance us. Then we refinanced with GMAC which is also my sole relationship. I have also spearheaded rezoning and cleaning up Whitestone, and moving fon/vard with the design plans. This has all been my responsibility. On Camelback we were in default under our loan when Beau left. Also we had no insurance or property management, and we had a terrible mezz loan to deal with and no cooperation from our landlord. not only saved us from default but also refinanced out the mezz lender, got the landlord to close the fee in escrow, and even got Ernie to sign off on everything. Then we were hit with Ernie?s lawsuit which threatened to disclose to the world past indiscretions of our partners and to even sue Donald Trump and claim that he has knowingly dealt with convicted felons who have in the past perpetrated consumer fraud. I had all of that sealed and got the whole litigation kicked out of court. On Soho have ended up making at least 80% of all business decisions and all legal decisions as well, not because I wanted to, but because there was no one else to do it at Bayrock. Jody has often been unavailable and moreover does not want to make any decisions. In fact at the beginning of this project Jody was supposed to be the point person on Soho and that was in the documents. After continually missing meetings and not participating, our partner wanted me to take Jody off and put me on as the Bayrock point person. In Fort Lauderdale have really attempted to quiet things with Roy, and Roy still does not want to deal with Felix or Jody. On FL there were at least a hundred times when the deal could not have closed, among them because of the risk of discovering Felix's past, and failing to get key consents from Roy and the Fort Lauderdale lenders, as well as major tax issues. Also in the beginning FL wanted a lot of control of Bayrock and how we spent the funds. I fought against all of this even though Felix and Jody told me to cave, and I won almost everything so that now you have control over $50 Million and FL has almost no say as to how we run our business. Please also don't forget what I have done for Rixos and Bayrock Natural Stone, none of which has involved Felix or Jody. You also say that have gotten the money I wanted in the past. I don?t think you realize that I am repeatedly approached by law firms and equity funds who want me to work for them. I can be making far more than what I make here. have stayed because I wanted to help build this company. I thought I was being appreciated for it. Also I asked from you only what money I needed to support my family and my son, who I will need to care for the rest of his life. By setting the bonuses the way you did and by saying what you said it makes me feel that you do not appreciate what I do. For that I am very sad. I have put all of my blood, sweat and tears into this company for over 2 years. I would rather get 0 than not be appreciated for what I do. I do not embellish my actions, as that is not my way; I say it like it is. In short, ljust want the appreciation and acknowledgement from you of what I have done, both verbally and financially in comparison to the other partners, not statements that I should stick to law or that have not contributed as much as I claim to. If you want me to just stick to law, that?s fine, but I do not feel that this company will function effectively. Very truly yours, Julius R. Schwarz