As Karen McDougal's attorney Keith Davidson continued his testimony, jurors were shown the final contract between McDougal and AMI that prohibited her from talking about past relationships with a "then-married man."

"Karen had ... granted her limited life rights related to the subject matter -- any affairs with any then-married man -- to AMI," Davidson testified, telling jurors that Donald Trump was the "then-married man" referenced in the contract.

Asked by prosecutor Joshua Steinglass the reasons he believed AMI would spend $150,000 on a story they didn't plan to publish, Davidson said, "I think there were two. I think one explanation that was given was that they were trying to build Karen into a brand," and didn't want to compromise her reputation, he said.

"The second was more of an unspoken understanding that there was a close affiliation between (publisher) David Pecker and Donald Trump, and that AMI would not run this story ... because it would tend to hurt Donald Trump."

"You mean, hurt Donald Trump's campaign?" Steinglass asked.

"Yes," Davidson said.

Davidson previously testified that when the deal was finalized, he called Michael Cohen.

"I called him and let him know as a professional courtesy that the deal involving his client closed," Davidson said.

"What client is that?" Steinglass asked.

"Donald Trump," Davidson said.

Steinglass asked Davidson how Cohen received the news.

"He was pleased," Davidson said.

An appellate court has denied former President Trump's bid to have Judge Juan Merchan recused from his hush money trial.

Trump's application sought a stay of the proceedings and Merchan's recusal.

Both were denied without explanation by the appellate judge.

All nine of former President Trump's social media posts cited by Judge Juan Merchan in his contempt of court ruling this morning have been removed.

The judge ruled that the nine posts violated the limited gag order prohibiting Trump from targeting potential witnesses and others involved in the case.

The nine posts were deleted during the court's lunch break.

Prosecutor Joshua Steinglass resumed his direct examination of Karen McDougal's former attorney Keith Davidson regarding his text messages with National Enquirer editor Dylan Howard as the two were negotiating how much the publication would pay McDougal for the exclusive rights to her story alleging she'd had an affair with Donald Trump.

“I can't believe they are asking me to go back for another 25 but they are. He deal is accepted at 150k. Can u do that?” Davidson wrote on August 2, 2016.

“He just called me. F--- it. Not my money. I'll ask,” Howard responded.

Davidson told the jury that Enquirer parent AMI initially provided a contract that did not match the terms originally discussed with Howard.

“Cameron's agreement wasn't really even close to what we were expecting. Please review the red-line I just sent. Need to handle this quickly,” Davidson wrote to Howard on Aug. 5, 2016.

Davidson testified that he initially avoided interacting with Michael Cohen while negotiating the deal with AMI due to a negative interaction he had with Cohen in 2011.

“My interaction with him was not pleasant or constructive and I didn’t particularly like dealing with him, and that is why I was trying like hell to avoid talking to him,” Davidson testified regarding Cohen.

Exiting the courtroom following the day's testimony, former President Trump reiterated claims that the case is unfair and that he should be campaigning instead of sitting in court.

"I'm sitting here because that's exactly what they want," Trump said. "They don't want me on the campaign trail. But it's a real -- a real disgrace and the whole world is watching. It's a disgrace to New York."

Trump also railed against the limited gag order in the case, for which the judge this morning fined him $9,000 and ordered him to remove nine social media posts.

"This gag order is not only unique, it's totally unconstitutional," Trump opined, calling Judge Merchan "conflicted."

Asked by a reporter what he meant by "conflicted," Trump brusquely turned to respond.

"You can figure that one out easily," he said.

-ABC News' Mike Pappano