From: "Jeffrey E." <jeevacation®gmail.com>

From: "Jeffrey E." <jeevacation®gmail.com> To: Gianni Serazzi Subject: Re: Options Date: Wed, 07 Mar 2018 17:31:27 +0000 Specific s? I know the theory On Wed, Mar 7, 2018 at 12:17 PM Gianni Serazzi < Dear Jeffrey, here's a few bullet points on model investment optionality > wrote: OPTION A: BUY LARGE NETWORK + Brand name recognition + Trophy company on day one + Top models on day one - Large investment on day one (20-60M for big names) - Difficult to finance with debt because they have very limited profitability - Low IRR, even with a great manager (not necessarily me but whoever you think will be at level) profitability will be 2-5% of the investment if they do a great job. Many of them have negative returns at present once you scratch the surface - High risk profile because you buy overpaid agents. When/if they leave the franchise loses value OPTION B: ORGANIC GROWTH, BUY A MEDIUM COMPANY AND INVEST IN GROWTH + Much lower starting investment (3-5M and 1-2M investment for a few years that can in part be financed with profits after initial years) + Optionality, when IRR increases also investments can increase + Higher IRR + History tells us that who created companies and networks made money, not who bought the existing network + We have connections with mother agencies and agents since 20 years, know who to hire (not to buyout) or partner (minority stakes in mother agencies) +A disruptive business model similar to what I was doing with John Casablancas in Starsystem can change the rules of the game - Brand name needs to be created or grown to a strong global basis - Trophy company needs to be created, not present in day 1 Just a few thoughts, you have the luxury to have way more money than what you can spend in this life so for sure have a different point of view. Best G please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this EFTA00866582 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 EFTA00866583