Subject: Re: FDA Meeting Report
From: "Eric Schwerin" <[email-masked]>
To: "Derrick Johns" <[email-masked]>
Cc: <[email-masked]>
Date: Wed, 25 May 2016 08:28:23 -0400

Thanks, Derrick.  Congrats!

Eric D. Schwerin
[email-masked]

Sent from my iPhone

On May 24, 2016, at 11:33 PM, Derrick Johns <[email-masked]>
wrote:

Eric & Hunter,

It took a few days for the hangover to wear off before I sent this
out…Teijin Pharma, Genzyme and Zimmer already engaged on the same news.
The claim I reference below was surprise as we will be the first and only
medical polymer that can claim bone growth and antimicrobial properties.
Ibankers say We are starting at $150mm and we’ll see where it goes.    We
want more at the table like Medtronic and J&J.  we have about 11 million
shares out so I think you two will be well looked after for the help with
China and further introductions.

John was amazing we got on very well and may do some work for a green card
program for investors who invest more than $1 million….for which he also
got a warrant retainer.:))

He has also been great in guiding us to John Carter whose Chief of Staff
Jonas Miller is currently working with John, so Buba has a good chance of
actually getting home and when he does ESPN is planning on doing a feel
good story.   You put all that in motion and did not need too.   I thank
you for that.

Hunter by the way my eldest daughter Erynn Is headed to West Point as a
soccer recruit (see below) - she cried when she watched your Dad’s
commencement speech online.   It was an incredible speech and he didn’t
look down one time, which led us to believe he had no teleprompter and was
speaking from the heart.  She said “he should be President..” - West Point
SMART!

Erynn Johns future West Point Cadet

   - Erynn Johns Goal - Texas States
   <http://www.nfhsnetwork.com/clips/uil/84770b8932/c42d03161d5d3567ee1302205de6bf76>
   - Goal 2 Header - Earned Corner
   <http://www.nfhsnetwork.com/clips/uil/84770b8932/d5dd0c8f539a826a8bc0381d31299f5b>

Had to add those shes 6’1 and left footed with a 4.8 forty time and pretty
awesome.  Buba’s adoptive father Don Gemmell made her so I helped him with
his son Buba.

Derrick W. Johns
CEO and Founder
<1D44E4A7-AEC9-4D1E-A8ED-AAE1A3C8FDAD[14].png>
www.difusiontech.com

“Finally…A Medical Polymer Innovator”

(512) 863-7777 o
(512) 284-3338 c

On May 24, 2016, at 2:08 PM, Derrick Johns <[email-masked]> wrote:

CONFIDENTIAL

Dear Shareholders,

On Friday May 21st at 1:30 pm we held our FDA Pre Submission Meeting face
to face with our FDA review Panel in Maryland the following people were in
attendance;

DiFUSION Technologies, Inc.
•Derrick W. Johns, CEO
•Joe Crudden, Ph.D., Senior VP R&D
•Sriram Sankar, M.S., R&D Director
•Daniel George, M.D., Board Certified Orthopedic Surgeon
•Lisa Ferrara, Ph.D., Biomechanical Consultant (via telephone)

Hogan Lovells US LLP (Our Regulatory Counsel)
•John Smith, M.D., J.D., Partner
http://www.hoganlovells.com/john-smith
Megana Sankaran, M.P.H., Regulatory Affairs Specialist

    I am extremely happy to report the meeting went better than expected in
that and we affirmed that ZFUZE is in fact a bona fide 510(k) pathway with
FDA and that our rabbit data was substantial enough in conjunction with a
sheep study to warrant an “*Osteoconductive Claim*” which no other medical
polymer in the world can presently claim.   This is exaclty what our
recently issued IP covers(attached) and what the current spine market has
been demanding.   We will be relaunching our current web site to reflect
these events in the next several weeks and doing at major press release as
well.

   Additionally, we will now commence our validation of production for the
US Launch of ZFUZE and complete the final testing required for our ZFUZE
510(k) submission with Osteoconductive Claims.

  To be clear, this is the news our shareholders, management team and
potential industry suitors have been waiting a very long time to hear.
Any future C series financing for DiFusion will be conducted at a vastly
increased enterprise value, as the B Series round is NOW CLOSED.   Hence,
those A series Investors who still hold* A Series Warrants* may want to
exercise those warrants immediately as the expiration is imminent.   Please
contact me directly if you wish to do so.

** We have also been allowed a second patent  for ZFUZE which is in the
process of issuing.   I will circulate that in a week or so when it does
issue.

Derrick W. Johns
CEO and Founder
www.difusiontech.com

“Finally…A Medical Polymer Innovator”

(512) 863-7777 o
(512) 284-3338 c

<USPatent#3.pdf>

<1D44E4A7-AEC9-4D1E-A8ED-AAE1A3C8FDAD[14].png