DB
I am surprised your getting embroiled in the nonsense... They threatened you last time and what did they do s** all. If they are as "big" as they suggest lol (2 inches

) then an educated director wouldn't get mixed up with that type of convo.
I'd tell them kindly there is nothing further to discuss, if they wish to revise any proposal you will look at it, any proposal, would have to be along the lines of what you previously suggested.
Oh, don't forget, you don't have time to continue communicating with "little" people..