From: Brad Wechsler

From: Brad Wechsler To: [email protected] <[email protected]> Subject: Re: Regan Arts Date: Wed, 03 Dec 2014 21:36:23 +0000 5 minutes...I'll call From: Jeffrey E. [mailto:[email protected]] Sent: Wednesday, December 03, 2014 04:33 PM To: Brad Wechsler Subject: Re: Regan Arts free]? On Wed, Dec 3, 2014 at 3:22 PM, Brad Wechsler < wrote: Excellent idea/approach as long as JEE is ok with apollo helping the trusts. From: Richard Joslin [mean Sent: Wednesday, December 03, 2014 02:31 PM To: Brad Wechsler Subject: RE: Regan Arts Via JEE and via EA (via LDB), thought is to have Apollo analyst who is familiar with publishing (Apollo purchased McGraw Hill textbook division) to give color on the draft model and to provide industry insight. I think the model still has some kinks to iron out, especially the royalties. EA volunteered to trace back to her files with the Apollo analysts she spoke to in 2012 when Phaidon was purchased. From: Brad Wechsler [mailto: Sent: Wednesday, December 03, 2014 10:23 AM To: Richard Joslin; [email protected]' Subject: Re: Regan Arts Has anyone reached out to keith and judy to provide them a little context so they don't feel threatened. If yes, good; if not I will. Pls let me know. From: Richard Joslin [mailto: Sent: Wednesday, December 03, 2014 09:35 AM To: Jeffrey E. <jeevacationegmail.com>; Brad Wechsler Subject: FW: Regan Arts summarized open questions to Phaidon accounting team below EFTA00703023 From: Richard Joslin Sent: Wednesday, December 03, 2014 9:26 AM To: 'DIlinaa John Murphy Subject: Regan Arts Please take a look at this - I'd like to have a call this morning to discuss. Thanks Revenue How was 47% of list price derived? Is that contractual with distributor? If there is a second printing, is the 47% continue to apply? Direct costs PPB - what is the derivation on a per title basis — cost varies per unit/ median $1.72/ title. PPB - If there is a second printing would the per unit amount remain the same? Plant expense - what is the derivation on a per title basis. Please provide detail, eg development, photo, artist fees, copy editing Plant expense — please confirm that if there is a second printing then there is no incremental plant expense Royalty — pls send some sample contracts Royalty — I see benchmark payment schedule, eg amount at hardcover publish date; amount at softcover publish date. Are these contractual by date? Royalty — Under what circumstances would these amounts need to be returned? Royalty — if there is a scheduled softcover payment and the book is not release in softcover, is the payment cancelled? Royalty — what is Royalty/ expense memorandum? I assume it is the total amount of advances paid to author? Royalty — Cash flow — Cash Outflow (Best case scenario) includes "Royalties advances (14)Q ($1,441,000) and "Additional (14) Royalty Payment* ($1,552,071). These two amounts add up to $2,993,071. I understand this amount to be equal to total royalties payable if all print quantities sold. Please clarify that the "Royalty Advances(14* were actually paid in 2014 (not 2015). EFTA00703024 Selling and distribution — 10% is paid to distributor; what is the additional 3%? If there is a second printing, is 13% continue to apply? M&P - what is the derivation on a per title basis. Please provide detail Freight - what is the derivation on a per title basis. Please provide detail Richard Joslin CFO Elysium Management LLC 445 Park Ave Ste. 1401 New York, NY 10022 www.imax.com 'MAX, is a registered trademark of IMAX Corporation. IMPORTANT NOTICE Information contained in this e-mail correspondence and any attachments is confidential information intended only for the use of the individual or entity named above. 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If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved www.imax.com IMAX£) is a registered trademark of IMAX Corporation IMPORTANT NOTICE Information contained in this e-mail correspondence and any attachments is confidential information intended only for the use of the individual or entity named above. Any reader of this message who is not the intended recipient of this correspondence is hereby notified that any dissemination. distribution. copying or communication of th ' correspondence is strictly prohibited. If this e-mail was not addressed to you . please immediately notify us by phone in Canada at ;collect calls will be accepted) or by email at [email protected] and delete and destroy this correspondence inadvertently sent to you. Thank you EFTA00703026