EQUAL EMPLOYMENT OPPORTUNITY DATE RECEIVE! D COMMISSION SABINE KRAUT, Charge No. Plaintiff, -against- WAFRA INVESTMENT ADVISORY GROUP, INC, COMPLAINT -and- FRANCIS LIVELY Defendants. Co Xx Plaintiff Sabine Kraut (“Kraut”), as undersigned charging party, for her EEOC Charge Complaint, alleges as follows: NATURE OF THE ACTION 1, Plaintiff brings this lawsuit in response to ongoing and pervasive acts of sexual harassment, sexual discrimination, and retaliation by Defendant WAFRA Investment Advisory Group, Inc. (“WAFRA”), its employees and agents and Defendant Francis (“Frank”) Lively. 2. Asalleged with greater particularity below, Plaintiff is an employee of WAFRA. and was employed full-time when subjected to sexual harassment by her direct supervisor for at least six years, sexual discrimination and deprivation of promotions and advancement opportunities due to her gender, and retaliation by Defendant WAFRA and its employees and agents afier Plaintiff reported the conduet of her superior. THE PARTIES 3. Plaintiff, Sabine Kraut, is a 46-year old female. In 2005, Ms. Kraut received her Master’s Degree in Real Estate Finance from New York University. At all times relevant to thisaction, Ms. Kraut was a full-time employee working at WAFRA in the company’s Real Estate Asset Management and Real Estate Acquisition groups. Ms. Kraut performed her work in a diligent, conscientious, and professional manner. 4, Defendant WAFRA is a global investment firm doing business continuously in ‘New York. At all relevant times, Ms. Kraut worked in WAFRA’s New York office, which has ‘more than 20 employees. WAFRA is a direct subsidiary of the Kuwaiti government. It is beneficially owned by the Public Institution for Social Security of Kuwait. 5. Atal relevant times, WAFRA has been continuously doing business in the State of New York in the Southern District of New York. 6. Defendant Frank Lively (“Lively”) was a full-time employee of WAFRA, the head of the Real Estate Direct Investment Group, and the Senior Managing Director of the Real Estate Division at all relevant times and until April 2018. At all relevant times, Mr. Lively was one of Ms. Kraut’s direct supervisors. FACTUAL ALLEGATIONS A. Sabine Kraut’s Background 7. In 2004, Sabine Kraut began her employment at WAFRA as a part-time intemship while finishing graduate school. In 2005, Ms. Kraut received her Master's Degree in Real Estate inance and Investments from New York University. After graduation, she began her full-time employment at WAFRA and Edward Ryan, head of Real Estate Acquisitions group and the Managing Director within WAFRA’s Real Estate Division, was her direct supervisor. Ms. Kraut reported to Mr. Lively for hospitality projects. oT ACCOR New oM Osim [ 20N 01 20 | DATE RECEWEn8. In 2012, Ms. Kraut was transferred from WAFRA’s Acquisitions to Asset Management group in order for Ms. Kraut to work on international deals and utilize her global investment and language skills. 9. When Ms. Kraut transferred into Asset Management, she reported to Mr. Lively for intemational portfolios, marketing, and hospitality projects. Mr. Lively was one of her direct supervisors. B. —_ Beginning in 2012, Mr. Lively Subjected Ms. Kraut to Pervasive, Continuous, and Egregious Sexual Harassment in the Workplace. 10. Beginning in 2012, almost immediately after Ms. Kraut began working directly for Mr. Lively, Mr. Lively began to subject Ms. Kraut to ongoing sexual harassment that was pervasive, continuous, and egregious. Mr. Lively’s conduet continued for six years until he left WAFRA effective April 30, 2018. 11. In March 2012,before a business trip to Europe, Mr. Lively told Ms. Kraut he was extending their trip to Monaco. Mr. Lively directed all travel arrangements and Mr. Lively’s room ‘was next to Ms. Kraut’s room in Cannes, France and in Monaco. Ms. Kraut was uncomfortable that her room was next to Mr. Lively’s room, In Monaco, Mr. Lively forcibly kissed Ms. Kraut on the mouth after dinner in front of her hotel room. Ms. Kraut quickly went back to her room and closed the door. While she was in her room, Mr. Lively called to apologize for his conduct and admitted that he should not have kissed Ms. Kraut, After forcibly kissing her, Mr. Lively confessed his feelings and attraction to Ms. Kraut, Ms. Kraut was scared, but tried to remain calm and did not escalate the conduct because she was fearful of how Mr. Lively would react. Whenever she was around Mr. Lively, whether it was in the office or on business trips, Ms. Kraut felt uncomfortable in Mr. Lively’s presence because ays felt like Mr. Lively was undressing a Ee OR UAT NEWYORK DISTRICT OFFICE. [ 101 2918 her with his eyes.12. On March 9, 2012, Mr. Lively emailed Ms. Kraut and called her “Schatzie,” which in German translates to “Darling.” Ms, Kraut is of German descent and Mr. Lively tried to use her native language to continue to harass Ms. Kraut. 13, Within months of working for Mr. Lively in 2012, Mr. Lively gave Ms. Kraut a series of handwritten love letters and notes on personalized stationary. 14, In 2012, after a business trip, Mr. Lively gave Kraut a note containing a love poem and wrote in “For me, the days I spent with you. Love.” When Mr. Lively handed Kraut the note, he commented in sum and substance that Ms. Kraut was a great catch, Ms. Kraut had never discussed her personal life with Mr. Lively and the comment was unsolicited. 15. Also in 2012, Mr. Lively gave Ms. Kraut @ note that quoted a romantic literary passage. On the note, Mr. Lively handwrote “My last text to you says it all, nothing more. I wish my feelings were different, I will and am working hard to keep away. We now know the solution. If you want to have dinner, a walk or a call, you know I am there for you.” 16. On March 19, 2012, Mr. Lively emailed Ms. Kraut offering to drive her home to her New York City residence. Ms. Kraut declined, but was uncomfortable that Mr. Lively would be present at her place of residence. Between 2012 and 2018, there were numerous similar occasions where Mr. Lively would offer to drive Ms, Kraut home or to a business development site. Ms. Kraut did accept some of Mr. Lively’s offers because she felt that she could not say no given that Mr. Lively was her supervisor and he had a bad temper. 17. Additionally, as part of their investments and business development, Ms. Kraut went on business trips with Mr. Lively, during which Mr. Lively’s behavior became egregious subjecting Ms. Kraut to uncomfortable, coercive, and demeaning situations as a result of his sexual harassment. COAL AORTA ye NEW YOR ISTIC oFrce JUN OL 2018 |18, In April 2012, Ms. Kraut and Mr. Lively were on a business trip to Kuwait, Abu Dhabi, and Dubai. Mr. Lively directed the travel agency to make all of Ms, Kraut’s travel arrangements and directed them that Ms. Kraut must sit next to him on the overnight flights. Prior to a trip to Kuwait, Ms, Kraut called the JW Marriott Hotel in Kuwait City in advance of her departure to request a room far away from Mr. Lively and was ultimately placed on the Executive Floor because she feared what would happen if her room was next to Mr. Lively’s room. The hotel acknowledged her fear and gave Ms, Kraut a room on the Executive Floor, which required a special key card to access that Mr. Lively did not have. Ms. Kraut asked the hotel staff not to record her request in their internal database because she was scared that Mr. Lively would find out about her request and become angry. 19, While in Dubai, Mr. Lively made physical advances at Ms. Kraut. After a business company because of his feelings for Ms. Kraut, However, Mr. Lively did not leave the company. Instead, he persisted in his harassment of Ms, Kraut. Mr. Lively came to Ms, Kraut’s place of residence and left a handwritten note on his personalized stationary that stated “I think you are as hot as a firecracker.” Inside the envelope, Mr. Lively included a physical firecracker, 27. On August 11, 2012, Mr. Lively mailed Ms, Kraut a handwritten letter with dried flowers while he was on vacation in Glacier National Park. 28. Also on August 11, 2012, Mr. Lively emailed Ms. Kraut about an investment fund. Mr. Lively sent follow-up emails when Ms. Kraut did not respond immediately, but when she did via official WAFRA email, Mr. Lively responded and addressed Ms. Kraut with “Rupert, | mean Sabine.” Rupert is the name of Mr. Lively’s former dog. Mr. Lively was calling Ms. Kraut by his dog's name knowing that she knew who Rupert was because Mr. Lively would often tell her in the past that Rupert would misbehave and that Mr. Lively was intentionally referring to her as a dog. Ms. Kraut felt that Mr. Lively was implying that she was on a leash and he had control over her, like he had over Rupert, who Mr. Lively told Ms, Kraut frequently needed an electronic collar, and was lashing out because she did not respond to his email immediately. ‘This is how Ms. Kraut felt~that Mr. Lively continuously tried to control her and use his role as the head of the department, and as her direct supervisor to exert authority. Ms. Kraut felt demeaned, belittled, and objectified. 29, On August 12, 2012, Mr. Lively sent Ms. Kraut an email reminding her to read her personal BBMs stating that “there were too many open issues from the discussion.” He further wrote in a later correspondence, “I said a lot of things yesterday, some of which were unnecessary. See blackberry. 30. In December 2012, Mr. Lively sent Kraut a Christmas card with a love letter, which isat cherie astahibi NW YOR DISTRICT OFFICE ry ,31. Atthe beginning of 2012, WAFRA’s Human Resource Department was still non- existent as it consisted of an office manager and former Pan-Am flight attendant who had no training nor experience in Human Resources. Currently, WAFRA’s Human Resources is equally ineffective as since the time that Ms. Kraut reported Mr. Li y's conduct, she has been aggressively retaliated against by her peers, replacement supervisors, and WAFRA’s management despite frequently reporting such incidences to Human Resources. C. Mr, Lively continued the ongoing sexual harassment and discrimination against Ms. Kraut consistently after 2012 to the present. 32. On June 15, 2012, Ms. Kraut emailed Ms. Lively about a work related issue and Ms. Lively responded stating “I just came back to the office to slap you, you nudge!” 33. In November 2013, Ms. Kraut went on a business trip to Amsterdam, Netherlands for partner meetings. While in Amsterdam, Mr. Lively sent Ms. Kraut a BBM stating that he wanted to kiss Ms. Kraut, 34. Ms. Kraut continued to make clear to Mr. Lively through her verbal responses and actions that she was not interested in any romantic relationship with Mr. Lively whatsoever, that she did not return his romantic feelings, and that his advances were not welcome. Mr. Lively would continuously become upset and assert his control and power over Ms. Kraut as her supervisor. In 2014, Mr. Lively reduced Mr. Kraut’s responsibilities and removed two investment platforms that Mr. Kraut was responsible for from her portfolio. 35. Also in 2014, Mr. Lively severely restricted Ms. Kraut’s flexibility during business trips. Mr. Lively continued to control Ms. Kraut’s travel itinerary and directed that they sit next to each other on flights, especially on red-eye flights to Europe and the Gulf region. Additionally, Ms. Kraut’s elderly and ailing mother, who was suffering the effects of a stroke that handicapped se ‘Cagcer, lives in a small town in Germany near Stuttgart, which was | | wun 01 2018very close to many of Mr. Kraut and Mr. Lively’s business trips. Ms. Kraut would request to 20 visit her mother during the day on the weekend during her free time before or after her work responsibilities and Mr. Lively denied her requests while other colleagues were free to make personal plans on weekends and around business meetings. Ms. Kraut believed that Mr. Lively did not want to be separated from Ms. Kraut, because his proposed alternative was to insist that he accompany Ms. Kraut when she visited her family. 36. In 2014, while on a business trip in Paris, France, Ms. Kraut commented on how beautifully the food was presented and prepared at a breakfast prior to a business meeting, Mr. Lively responded and stated that “the only thing he could think to have was [Sabine] on the table.” 37. In January 2015, Mr. Lively asked Ms. Kraut again if there was really no chance that Ms, Kraut could imagine being romantically involved with him. Ms. Kraut responded that, she had never been interested in Mr. Lively in a romantic way and would not be interested in the future. Mr. Lively said that he has been waiting for Ms, Kraut for three years, Ms. Kraut felt objectified and that Mr. Lively's support of her career and work was directly related to his desire to be with her romantically and not because of her professional value. Ms. Kraut felt harassed and coerced to engage in conversations that she deemed inappropriate, Ms, Kraut felt uncomfortable that Mr. Lively continually put her in a position where she had to respond to his advances given that he was her direct supervisor and head of the department and felt that she did not have a choice but to engage in a conversation if Mr. Lively wanted. 38. Ms. Kraut believed that Mr. Lively was retaliating and discriminating against her because she had rebuffed his romantic advances. 39. In early spring 2015, Mr. Lively passed Ms. Kraut over for a promotion, despite ‘numerous past conversations about Ms, Kraut’s career trajectory and advancement under his team. ENP OAT TESS] NEW YORK DISTRICT OFFICE f oie | | JUN 01 2018 \ | inMr. Lively also promoted a younger male colleague to Ms. Kraut’s position, Ms. Kraut was denied promotion. Ms. Kraut believed that Mr. Lively was retaliating and discriminating against her because she rebuffed his romantic advances. 40. Ms. Kraut was constantly in fear for her physical well-being and safety. Since she started working for Mr. Lively, he would repeatedly mention that he had “friends in high and low place” and that he would not hesitate threatening others if his professional position or security was compromised. The initial context in which Mr. Lively indicated his abilities to Ms. Kraut was related to the CEO of WAFRA, Mr. Fawaz Al-Mubaraki, Mr. Lively had told Ms. Kraut that i Mr. Al-Mubaraki ever threatened his career, Mr. Lively would have a private investigator follow Mr. Al-Mubaraki around, take pictures of him, and potentially others, in compromising situations and threaten to send them to Kuwait where it could do the most damage to Mr. Al-Mubaraki. 41. Mr. Lively believed he could blackmail Mr. Al-Mubaraki, because he asserted that Mr. Al-Mubaraki was homosexual and he believed that the Kuwaiti investment team did not know, and would not support Mr. Al-Mubaraki. Mr. Lively also referred to Mr. Al-Mubaraki as “shit for brains” (“SFB”) to Ms. Kraut and other senior team members. For example, on May 26, 2017, Mr. Lively sent Ms. Kraut an email referring to Mr. Al-Mubaraki as SFB, ‘This was a constant ‘occurrence from Mr. Lively in email correspondence, Because Ms. Kraut was aware of how Mr. Lively was capable of threatening other colleagues for jeopardizing his role at WAFRA, she was constantly fearful that Mr, Lively could retaliate further towards her. Therefore, Ms. Kraut was fearful to report his conduct. 42. Laterin 2017, during a business trip to the Gulf Region, Mr. Lively forced a Cartier bracelet on Ms. Kraut and reaffirmed his intentions and affection for her and stated that Ms. Kraut TOLER RTM DISTRICT OFFICE was the only reason he came to the office. | JUN 01 2018 | _ [DATE RECEIVED |43. On October 26 2017, Mr. Lively insisted on driving Ms. Kraut to a business development site in New York City. While in the enclosed vehicle, Ms. Kraut began to feel uncomfortable, because Mr. Lively began making sexual comments towards Ms. Kraut. Mr. Lively began to get aggressive with his verbal advances and Ms. Kraut did not know what Mr. Lively was capable of doing, In attempts to document the ongoing sexual harassment, Ms, Kraut tumed on the recording function of her cellular telephone. A transcript of the audio recording, during which Mr. Lively confesses his ongoing love for Ms. Kraut for 6 years, acknowledges that his conduct was unsolicited by Ms. Kraut, that Ms. Kraut’s work was good, and that his feelings impacted Ms. Kraut’s ability to perform her work duties, is annexed hereto as Exhibit C. 44, In February 2018, Mr. Lively did not promote Ms. Kraut from Vice President to Director while three men in the real estate group were promoted. When Ms. Kraut asked Mr. Lively why she was not promoted, Mr. Lively said that the men needed a higher ttle to earn respect in the real estate, fundraising, and marketing industry, but could not give a performance related reason to promote them. Ms. Kraut said that she also needed the same respect in the industry in her fundraising and marketing role and Mr. Lively responded by stating that if he promoted Ms. Kraut then he would have to promote two other women and he did not want to promote two other ‘women to keep the group’s gender balance. 45. In March 2018, while on a business trip to Washington D. Mr. Lively and Ms. Kraut were at dinner after business meetings and Mr. Lively admitted again that he was still in love with Ms. Kraut and that if it were not for her, he would not have a reason to come to the office. 46. On March 20, 2018, after a series of meetings and conversations surrounding a decision regarding an investment, for which Ms. Lively’s directives to MENA NEWYORK DISTRICT OFFIC [aw O1 2018reach out to one of the partner’s representatives of the hotel fund, Mr. Lively blamed Ms. Kraut for causing an issue that the partner’s representatives brought up even though it was an issue related to Mr. Lively’s responsibilities. Mr. Lively emailed Ms, Kraut and stated, “Someone's job is in jeopardy.” 47. A principal at a firm WAFRA has a fund with, acknowledged that it was not Ms. Kraut’s fault and sent Ms. Kraut an email to rectify the situation. However, Mr. Lively’s pointed retaliation continued, 48. On April 12, 2018, after being informed about a call, Mr. Lively sent a degrading email directly to Kraut and stated “you need to reevaluate where you think you are and where you really are. Save the BS email below for someone else.” That same day, Mr. Lively came into Ms. Kraut’s office and grabbed her by the shoulders and then told Ms. Kraut he would drop her off at home. Ms. Kraut pushed back and declined. 49. On March 31, 2018, the Saturday before Easter Sunday, Mr. Lively came to Ms. Kraut’s place of residence without being invited to give her an Easter present, Mr. Lively called Ms. Kraut when he was on his way to her residence and asked her where she was. Ms, Kraut was home, but said she was on her way to an appointment because she did not want to see Mr. Lively. Mr. Lively announced he would stop by her residence. Thereafter, Ms, Kraut’s fear for her physical safety increased and since April 1, 2018, has been exiting her residence through the freight service entrance because she fearful that Mr. Lively or a private investigator hired by Mr. Lively would be waiting for her outside the main entrance as he threatened to do with Mr. Al-Mubaraki. 50. Ms. Kraut has been in therapy since 2015 because of Mr. Lively’s daily ongoing sexual harassment and discrimination. serena ie JUN OL 108 | lowe RECEIWED,D. After Ms. Kraut reported Mr. Lively’s conduct to WAFRA, WAFRA, and its employees and agents, have retaliated against her. 51. In April 2018, with the support of her therapist, Ms. Kraut finally worked up the courage to report Mr. Lively’s sexual harassment and discrimination to WAFRA. As a result, WAFRA terminated Mr, Lively from his position as Senior Managing Director. However, WAFRA placed Mr. Lively’s close personal friend, Yvonne Compitello, as his replacement, 52. After Mr. Lively’s departure, Ms, Compitello and WAFRA’s management began to retaliate against Ms. Kraut, demoting her responsibilities, marginalizing her from projects and investments she worked on, and preventing her from fulfilling her duties by leaving her off correspondence and withholding information related to investments and funds that would normally be in her work stream and part of her direct work responsibility. 53. Ms. Compitello repeatedly held meetings on a portfolio that Ms, Kraut was working oon, and had worked on from its inception, without notifying Ms. Kraut that they were scheduled, and therefore depriving Ms. Kraut of the opportunity to attend, Mr. Ryan informed Ms. Kraut that she was no longer copied on emails and that he had taken over a hotel acquisition project of hers because she was no longer working on it, Ms, Kraut had worked on the hotel fund and its acquisition since its inception and as the only real estate professional other than Mr. Lively, it was a significant part of her major responsibilities. Mr. Ryan indicated that Ms. Compitello was aware that Ms. Kraut’s responsibilities were removed. WAFRA was marginalizing Ms. Kraut. Mr. Ryan instructed Ms. Kraut to transfer her files to a new drive controlled by Mr. Ryan, Ms. Kraut attempted to ascertain why she was being removed from the investment that she worked on from its inception from Ms. Compitello, but Ms, Compitello did not respond, 54, Mr. Ryan continued to marginalize Ms. Kraut by scheduling site visits that Ms. Kraut would normally be involved in without including hes in ths. nor site visit. “NEM YORK STRICT OFICE va || JUN O1 201855. Asa direct and proximate result of these actions, Ms. Kraut suffered and continues to suffer actual damages, including monetary damages, damages to her reputation and career through misdirected retaliation, psychological and emotional pain, mental anguish, fear for her physical safety, and humiliation, in an amount to be determined at trial. 56. Plaintiff is entitled to attomey’s fees under the applicable federal and state statutes and provisions of the Administrative Code of the City of New York. By: SABINE KRAUT CB [A Dated: New York, New York May 22 2018 Sworn to before me this, 30:lday of May 2018 eoumscenss = ownseniowe, Loeatiodl, onan NOTARY PUBLIC 08?EXHIBIT AHIGHLY CONFIDENTIAL dnce card and uu. at: some. point. oveeariier =~HIGHLY CONFIDENTIAL Bing you at some point. | the above earlier S, | mean what | say and it to be a. good situation for th of us. | can be an assit for you ine, and would like to try and do ing else. to office, headed ss R to replyre ace asm e way to office, headed = We can talk when I see ud pick’ you up, but don'tHIGHLY CONFIDENTIALirereaces aesPieeascnaa uaeHIGHLY CONFIDENTIALHIGHLY CONFIDENTIAL it ee Draw the fe, wi te your name inside the then step out of circle. Anew i spective, Ta Da! Sabi, work with- p to!house and go stathought —eager gate rf ite Year of HLvidg | sly. |Pen aco arse Yihope |am off to the ‘sea one ar 7 these'days, with spf 500000000 : ie ee ee Vomen ‘sre made to love, money is made ta spend, life is something in}, yourwill never live again! No ~ h swimming: at: cor GH no.EXHIBIT B [eae Ra, ere al |HIGHLY CONFIDENTIAL justice ROE FORT NeW YORK STRUT a | un 01 07 -" n ZCERRITO [am as THEI YORK DiS ce | = sun 01218 | |HIGHLY CONFIDENTIAL Dear Sabine, "hope you just had the merriest Christmas, and the happiest of New Years ahead No quotes here from songs or poetry that | lke, these are just my words from the heart. 2012 has been a heck of a ride. | do ike rollercoasters and rides, but man this has been a whopper! | know we have seen some unbelievable changes, starting with my realizing the untapped value and the potential to the company in you when I said back in February, “Ok let's go to MIPEM', (Not the sharpest tool in the shed!) Little did | know what would follow, but | wouldn't trade a minute of it for anything. | was already well down the path of making serious changes in life and work, but you made me think about many more things, both inward to myself and also outward at my work environment, relationships and what was ahead for me and maybe separately you, baby sister, Shave made mistakes for sure, especially in the last year, regret them and sincerely apologized for them. So be it, | am human, but never have | loved and desired so much, but been left so unrequited. That’s you we're talking about and it is and will be what itis, }don't control that, However, what harm is there in having 2 good man love and devote himself to you and want only what is thought to be good for you? | ask little or nothing in return. | have lived, loved and experienced many things. if we continue to work together, ! will shways have the small pleasures of innocently taking your hand to examine your thumb and with that touch, feeling 8 miles high, or taking your arm to whisper something to you at a meeting and catching that wonderful scent of you. 1 2012 was a time of being “blinded” by emotions, 2013 will be guided by reason and hope. I will be a good teacher and mentor, sometimes in a candid and perhaps hard to listen to way, but my intentions are the best and my expectations for you high, but reasonable. | see your face in the airplane from DC last summer when | sent the email about your being worth waiting for, and you are tll end of time, or in ‘the taxi in France more recently when I talked about your potential share of the promote in the German ‘multi-family fund. Itis then that | wonder about the thoughts that must be going through your head based upon your expressions. To me it says, “why me"; “how come”. They run the gamut of quizzical, contemplative, surprised, s20,etc.| hope you will answer all those questions yourself soon enough, That would tell mea lot. Life is NOW and worth living to its fullest, and if you chose not to, you miss out, | have felt more alive in the last year than in many. Inthe end | will be there for you. You are my friend, my love, my frustration, my hope, but still always my schatzie. That term got me started down this road you may recall. Give yourself the chances that you deserve by lowering the walls around you, if nat eliminating them (step out of the chalk circle) Allow me the continued chance to work with you in 2013, as you best determine. You are an intelligent, beautiful and wonderful woman. All are appreciated by me, an | ut Me ee [an 01 2018EXHIBIT CHIGHLY CONFIDENTIAL Sabine Kraut Tape Transcript Frank: ...not...not fair to you and not fair to me, and, um, really evaluating, you know, you and your performance and what have you, because, you know, I was probably impartial. So I thought that I had said that in as straight forward a way as I could, and that, you know, dredging up a lot of other emotions and what have you. That’s why I'm saying what I'm saying and that going forward I need it to be more balanced, more fair, you kept saying you'd understand, which. caused me - Sabine: Oh, no, I understand that part. Frank: OK well then that’s good, that helps us explain, like you know, at [uninteligable] you said to me, “Why don’t you just get married?” which was — Sabine (incredulous): What? Frank: That’s what you said. Sabine: I never said that! Frank: That’s exactly what you said. Sabine: I never said that, where do you take that, that is ~ what? Frank: It’s — It’s exactly — Sabine: What? I mean I, I - fine. Fine Why would I say that? I have not said that at all, I haven't even thought that! Frank: Lying doesn’t help Sabine: But this is not what I said! Frank: What did you say then? Sabine: I didn’t say that! Anything to that extent. What is it my business what you do? Frank: No no, it’s not, it’s not a question of what I do or don’t do - Sabine: | did not say that! Why would I say that? Frank: Well, I gotta tell you~ Sabine: Frank, I think your hearing is bad! I think that’s, that that, uh uh uh uh. I don’t go there. Frank: Over the course of time, over the course of time - Sabine: I, | have not ever said, or anything to that degree - Frank: OK, well, over the course of time, there have been on occasions, comments made or things suggested or said that were, you know, I thought were very hurtful particularly because, ‘you know, I think that, you know ~ TET ra ceHIGHLY CONFIDENTIAL Sabine: You must have misheard, I never said anything like that. Where did you bring that up? Why would I — out of the blue say something like that? Frank: I, I, I, If you remember, I said told you [unin], you kept talking and I said “I think that you should stop, uh, while you're ahead” Sabine: What? But I have no idea where you take that from. I-I couldn’t even make that up. I thought, I thought that's what I heard. [] sound like you're coming to see me for the first time today. Sabine: Oh my god, you, you have to, like, check your hearing. Frank: my hearing is pretty good. Sabine: Nuh uh wh uh wh. I mean, come on. Why would I say anything like that? I don’t even touch the private life of Frank Lively. Frank: J think that you would say something like that - Sabine: Why would I say that? Frank: Can | just finish? Sabine: Oh Jesus, yeah, Frank: Can I be honest and finish, I think that you would say something like that because perhaps you feel so burdened by the, the, the nature of the relationship that I'm not even aware of it Sabine: No, I mean, come on Frank, no way - Frank: I'm trying to be honest. Sabine: I think you've got —oh my god. You had this in your head that I said that? Never would I ever say anything like that. Never have I ever said anything like that Frank; I'm just telling you that’s, that’s what I heard and that’s the rationale for why I believe ‘you might have said that, and that’s ~ Sabine: Never ever Frank: - That's hurtful Sabine: I would never say that to anybody - Frank: Look, look, it’s - Sabine: Especially knowing your history. EPO NeW YORK DIST jun 01208 | dt EIVED Frank: What history? Nobody knows anything about me. I keep my business to myself, I understand, Sabine: I understand, but so do I, and so I would never -HIGHLY CONFIDENTIAL Frank: That’s probably one of the things I like about you, is that, you know - Sabine: So I would never touch that, that field of privacy with anybody. Frank: Look, Iam telling you, that’s what I heard « Sabine: No, I, I, Frank: I’m guessing I misheard. Sabine: No, I absolutely never in my life - Frank: The reason that [ - Sabine - said that. Frank: The reason that I would think that [ heard that was that in the past comments have been made where, again, I thought that over the past years, I thought that I had been very, you know, reserved in our relationship and very, you know, aequiescent in the sense that, accommodative to you and trying to be, you know, trying to be, you know a help to you in many respects. Sabine: Exactly, but we were all clear on that, we were all clear on that, Frank. Frank: Well, I understand we were all clear on that. The problem I have is that, as I said to you, T’m not all clear on that, and that’s why I believe that, I think there has to be a new tact taken ‘where again I kind of have to probably keep you at arm’s length. Sabine: But what | have disagreed with you, and, and I think you don’t recognize that, is that whatever that relationship is, I'm trying hard to make it the, the. the business that itis supposed to be, namely that we, that we generate more accounts, that we - Frank: I understand all of that. Sabine: And, and I'm fully in that, and ~ Frank: But we're not talking about you, we're talking about my feelings, and I'm telling you that my feelings are such that they get in the way. And I’m being honest with you. Sabine: But I'm not letting it get in the way, uh, getting in the way, in that I pursue the work that needs to be pursued. Frank; I understand but I, as I said earlier, [ don’t believe that I’m impartial and I don’t believe that I'm being necessarily fair then to myself, you, or others for that matter. So that impartiality is problematic. And that’s what I was trying to address. Sabine: But you are, I don’t think you are impartial at all because what we have started with these new business endeavors have been on track, except for the reasons that I've mentioned to you in the meeting and that is that at a certain point with these Kuwaiti investors, I personally ‘cannot take any influence ~ Frank: Look ~ ot ee\ TORS | \ ws 10 |) |HIGHLY CONFIDENTIAL Sabine: - and things anymore on the, on the progress of, of, of that. And that, that is unfortunately the limitation of where I am. Frank: Do you think that you have a normal boss-employee relationship here? That’s what I want to ask you. You think that? Sabine: I mean ~ Frank: You think that most bosses are as deferential as [ am? Sabine: You're not differential, Frank: Deferential, not differential. Sabine: Deferential. I mean, I do, I, I do what I’m supposed to do, Frank. Frank: Well Sabine: And there’s no, there’s no - Prank: There's degrees of doing things and there's, there is levels of doing things and everything else. And, you know, I, I, I think, I think that’s part of this total disconnect, is that if I need to be ‘more critical of you or more demanding of you - Sabine: You can be as demanding as you want. Frank: T know, but I have not been and that ~ Sabine: You have been, you're very demanding, Frank: I'm telling you ~ Sabine: You are very demanding, Frank. Frank: I'm telling you that’s the problem, that I'm not and that I’m too impartial because of my ‘own, you know, mixed up feelings. So, that’s what I was conveying, that's what I had been tripping over for weeks, that’s why I wanted to like, you know, have dinner with you, that’s why 1, you know, wanted to do this, do that, to get this out of the way or try to, and that’s the purpose of where we are today. Sabine: Ok. Frank: So - Sabine: I never understood why you're so like sidelined by the conversation. And now I understand because you completely heard something that I never ever in my life said and will ever say. Nor would ever think about saying. Frank: Ok. Sabine: Ok?HIGHLY CONFIDENTIAL Frank: Ok, you know, I can’t refute what you're saying other than to be, you know, perfectly honest that’s what I thought you said - Sabine: Absolutely not Frank: - and the rationale for saying it was as I said - Sabine: Why would I, that’s totally out of context. It’s not - Frank: It's not out of context in the sense that if somebody tells you that they have strong. affection for you, that you would tell them, “go find it someplace else.” Sabine: I - I would never, I mean - Frank: I'm just telling you, Sabine: Frank, | mean sorry - Frank: Sabine, I’m sorry, that’s, that’s, that’s, that’s the truth from my perspective. Sabine: It couldn’t be, I mean, I don’t even think these things. Frank: Ok. Sabine: I don’t even have a reason to, I don’t, I really ~ when I come into this office, I really have, I don’t care about anybody on a personal, like ~ Frank: | understand, Sabine: Like you know what I mean, it's not on my mind, Frank: I understand, and that’s the problem that I have, in that you don’t think that way, and therefore that's the problem I have to deal with. See, you know, can you understand that? Sabine: Yeah, no, I do. Frank: So it's a serious issue. So how do we deal with it? How do you deal with it? You know. Sabine: You get from me the performance, and you get from me the dedication, and you get from me- Frank: I understand all that, Sabine: That's why I said, what's on the list that hasn’t been like done or worked on or - Frank: It's not the list. It’s the, it’s the dynamic here, I mean, you don’t see it and I don’t, I don’t understand how you could say you don’t understand when, and say that - Sabine: I don’t - Frank: It’s fine, it’s like as | said many times, it’s obviously my issue, you don’t have that issue, you don’t have those feelings, so that’s fine, Ihave to deal with that. So that’s fine. You know. not fine for me, and, you know, as a resul ner s really the issue, and I "HEN YOR DISTRI GFICE JUN 01 2018 |HIGHLY CONFIDENTIAL think that being more impartial is part of that, being more distant is part of that, and in some respects just being totally out of the, the, the dynamic is probably an ultimate solution but, you know, itis what it is, that’s all. You know, whether, whether, whether I encourage these feelings or you encourage them, the bottom line is that there is no, that there’s no back and forth here, it’s a one way street and it’s my issue and I'll deal with it, And I’m sorry that that's the way itis, but ~I’'m very sorry that that’s the way it is, but I’m also sorry that, you know, ifit, if it, you know, Sabine: But Frank, | mean if you har - Frank: If it results in what, you know, is going to have to be a very different relationship, that’s what I'm really sorry about. But that’s the way it is. Sabine: But when you hear things that don’t sound right from me - Frank (Agitated): Forget that, forget that - Sabine: ‘That's, I mean - Frank: Look, over the years you've said things that have been very hurtful. I took them in stride, in part because of the deep affection that I do have for you. I don’t think that you're like those things, and, you know, and sometimes | think you had a tendeney to say things and I always sort of scratch my head and say “she didn’t really just say that, did she?” and that’s kind of what I said the other night when I thought that that’s what you said. But you've done this before, you've done it in times when you felt stressed, maybe you felt stressed the other night. Obviously I was very stressed. Very stressed. Sabine: But obviously if you hear something - Frank: And we're not kids. I could have an honest relationship with you, in a sense, an honest conversation, and it doesn’t mean anything other than, look, these are my feelings, that’s all, you know. So, so they're rejected, that’s fine, but at the same time it’s, it's something that, because of the dynamic and the inner office relationship and the, and the, and the, you know, the sort of the partnership that we had tried to forge here in our work relationship, it makes it very difficult. Very difficult. I think anybody could see and understand that. And, and I don’t know what to tell you, I mean, I wish that I had better control of those emotions and feelings, you know, I certainly spent six years trying to control them, so... [pause] What can I tell you? [Long pause] Frank: Speechless, huh? Sabine: Somewhat, yes. Frank: I’ve always said that you have a problem with anyone liking you, let alone loving you. But whatever. [Pause] FEE FARTS OISERICE OFFICE JUN OL zoe |HIGHLY CONFIDENTIAL Frank: Understand there’ ve been, like, so many things we've done together that, literally, you know, I, Thave told you this before, you know, “come down and take a look at this building on a Sunday” or something, it’s because I enjoy the company, your company. Sabine: Not my brain? Ouch. Frank (Sarcastic): Yeah, I’ve been after you for six years because we have such a great physical relationship. What kind of a jackass question is that, ok? ine: I thought you appreciate my, my professional input. Frank: I absolutely do appreciate it. I also appreciate your company as a woman and as, you know, somebody who I have a certain rapport with. Forgetting about the other side of this, it’s like, ok, I enjoy having you along. Is there something wrong with that? Sabine: No, def - Frank: Does it have to be all about like your brain? You know, your brain works? Of course your brain works, Not as hard as it, not as hard as it could in the sense that I think you're capable of a lot more. Sabine: Oh no we have one of those parties going on, we don’t even have a party room, that’s great. Frank: Party room? Sabine; It’s under renovation for six month. Frank: OK, so how do we leave it? You understand now why now things have to be different? Sabine: I, I, I, can’t, like, what you heard is definitely ~ Frank: Forget that. I put that, I, I, | already said OK, let's chalk it up to I misheard, OK? Let’s chalk it up to that, But let's also understand that the dynamic between us has to change. Sabine: OK? Frank: It just does. Sabine: OK, I mean, you, you, you are the boss. You're the boss. [pause] Sabine: Thank you. Frank: Alright. Sabine: See you not tomorrow, have a safe tr Frank: See me not tomorrow? Sabine: I won't see you tomorrow, or are you coming to the office?HIGHLY CONFIDENTIAL Frank: No, well it looks like unfortunately, you know, [unintelligible] Sabine: What, we can't take a business trip together? Frank: No, I don’t think that we can. I think you either go or I go, one or the other. Sabine: Oh Frank: Ok. I’m not gonna torture myself anymore. What's the upside? There, there is none, I've made that clear. Sabine: [Unintelligible] talk about that. Frank: We can talk about it right now, because otherwise ... what’s to talk about? Sabine: I think this has been a crazy week, and [unintelligible] Frank: It’s been a good week. Because it’s the first time in a long time, I could stand in front of you and tell you, “I like you, and you don’t like me.” And that’s hard to swallow. Very hard. But it’s ok, I'm not foreing myself on anybody. But I have had six years of dealing with you and that has been beyond torture. Beyond torture. And you've done nothing to encourage it, it's my own stupidity, ok, I'm tripping over my own feelings. Well, I'm getting up off the sidewalk now and it’s gotta to stop and we have to deal with one another differently, that’s all. That's all I'm saying. And I'm sorry, I’m very sorry, but I don’t know how else to —I don’t know how else to deal with it, I really don’t. If I did, I would tell you. [Pause] Frank: Bye Sabine: Have a good night, Safe trip tomorrow.