Here are the definitions, statements and the proof that I am stuck on:
I am stuck on the last part of the proof where the author claims that setting $C = e$ automatically guaranties that (1) holds for $0 < t < eK$ as well. I imagine what he meant is that given we have shown (4) implies (1) for $t \geq eK$ with $C = 1$, we can prove (1) again by updating $C = e$. However, why does this follow? I think I might be missing something obvious here.