June 7, 2019

2126 Lyndale Ave S #6

Minneapolis, MN 55405

Ms. Minnie Baylor-Henry, Trustee (Director at PTE)

Board of Trustees
Howard University
2400 Sixth St NW
Washington, DC 20059
(by US mail)

RE: Polarity TE (PTE)

Dear Ms. Minnie Baylor-Henry,

It's been over a month since Maggie Dalton sent me the April 26 cease-and-desist letter
on behalf of PTE, and I have not heard anything since from Ms. Dalton or her law firm, Stoll
Rives. Of course, PTE's threats against me are groundless, but that hasn't always prevented Frost
gang members and associates from pursuing legal actions. In my case, I suspect that the main
reason for PTE's silence is that PTE does not wish to publicly air the issues I raised in my letter
to you of April 28, 2019.

A few things have happened since the last time I wrote to you.

1. "On May 6, 2019, PolarityTE, Inc. (“PolarityTE”) closed on the full exercise of the option to
purchase an additional 445,945 shares of PolarityTE’s common stock granted to the underwriters
as part of an underwritten public offering of an aggregate of 3,418,918 shares of PolarityTE’s
common stock. PolarityTE previously issued and sold 2,972,973 shares of common stock on April
12, 2019. Cantor Fitzgerald & Co. acted as the sole book-running manager for the offering.
The net proceeds of the offering are estimated to be approximately $28.7 million, after
deducting estimated offering expenses payable by PolarityTE. PolarityTE intends to use the net
proceeds from the offering for research, development and manufacturing of its products and
product candidates, efforts toward commercialization and required registration or approval of its
products and product candidates with applicable regulatory authorities, and for other general
corporate purposes."
https://www.sec.gov/Archives/edgar/data/1076682/000149315219006488/form8-k.htm

2. It was disclosed in a May 15 federal court hearing that there is a cooperating witness, there
are tolling agreements, and that "there may be a criminal case coming down the pike reasonably
shortly" against members and/or associates of the Frost gang.
https://www.scribd.com/document/411279656/May-15-2019-SEC-v-Honig-Discovery-Hearing

3. PTE apparently received a letter from the FDA on May 28 that the FDA has "information
compiled for law enforcement purposes" related to PTE.

1
4. "Effective on May 31, 2019, independent members of the Board of Directors of PolarityTE,
Inc. (the “Company”) representing a majority of the Board … placed Denver Lough, the
Company’s Chief Executive Officer and Chief R&D Officer, on indefinite paid administrative
leave …"
https://www.sec.gov/Archives/edgar/data/1076682/000149315219008667/form8-k.htm

5. PTE insiders Swanson, Seaburg, Mann and Cohen have been buying PTE shares in the last
couple days. I interpret this buying spree as an effort to prop up the share price by trying to
create a perception that PTE insiders actually believe the story that PTE is telling the public.

6. PTE's share price peaked at 41.22 on June 21, 2018. PTE's share price was 9.11 on the day I
last wrote to you. PTE sold shares at 8.51 in their public offering of May 6. PTE traded as low
as 4.96 on June 4. PTE closed yesterday (June 6) at 5.53.

The enclosed email (Frost gang investigation and prosecution (Part 2 of 2)) was sent to
Federal agents of the SEC and DOJ, as well as other individuals, on June 5. I suggest that the
PTE BOD should indefinitely restrict sales of PTE shares by insiders and former insiders.

I offer you the following hint in dealing with Denver Lough and his co-conspirators,
based on my experiences with the Frost gang since 2011. Sociopaths will ignore reality and
continue believing that they are fooling everyone else with their lies long beyond the point where
they have lost all credibility. They are unlikely to ever admit that they are in the wrong,
regardless of the evidence.

This letter is posted on Scribd.com, with a link posted on Twitter. Please note that some
key documents related to PTE and the Frost gang have only been shared with the Feds and my
attorneys up to now. Other key documents have also been shared with journalists and business
writers, but these documents have not yet been publicly disclosed. It is my hope that both the
Feds and the PTE BOD will do the right thing before all these documents become public.

Regards,
/Lee Pederson/

Cc:
Maggie Dalton, Stoel Rives
Joe Dixon, attorney for Phillip Frost
SEC Office of the Inspector General

Bcc:
SEC enforcement attorneys
DOJ agents (FBI and US Attorneys)
Journalists and business writers
Other interested persons
(all by email)