From: "jeffrey E." <[email protected]>

From: "jeffrey E." <[email protected]> To: David Mitchell. Subject: Re: Antiquorum Budget 2014 High, Base, Low Cases Date: Thu, 05 Jun 2014 21:15:13 +0000 nothing attached On Thu, Jun 5, 2014 at 12:23 PM, David Mitchell < > wrote: I would never take this type of risk when I take over this asset Please note new location: DAVID MITCHELL Mitchell Holdings Begin forwarded message: From: Bruno Date: June 5, 2014 2:21:29 PM EDT To: 'David Mitchell' Subject: RE: Antiquorum Budget 2014 High, Base, Low Cases David: "Other Contractual Expense" The drop in "cost of revenue" between 2013 and 2014 is due in large part to extraordinary "other contractual expenses" which accounted for $535K in the May '13 Geneva sale and a one-time finder's fee of $165K relating to the consignment of high-value timepieces. "Other contractual expenses" refers to charges incurred by the company when a lot is hammered below the reserve price. For instance if a consignment contract is concluded with a reserve price of $11,000, a 5% vendor commission and hammered at $10,000 the company will post the following: - "vendor commission" revenue: $500 (5% X $10,000 Hammer Price) - "other contractual expenses" cost: $1,000 (Reserve - Hammer Price) In the May '13 sale three high value lots sold below the reserve price which resulted in an extraordinary cost of $535K for the company. Catalog Production Between 2013 and 2014 the company pared down the catalog distribution list by weeding out the VIP recipients who haven't transacted over the last three EFTA00991336 years. It results in an annual savings of $500K. Best, Bruno Original Message----- From: [mailto Sent: Wednesday, June 04, 2014 7:33 PM To: David Mitchell Subject: Re: Antiquorum Budget 2014 High, Base, Low Cases 1- Due to high value lots that sold below reserve in one particular sale last year. Will explain in more details on the phone. 2- Cut down the catalog distribution hence significant savings in print and fulfillment cost. 3- Cut travel requirements to essential staff only for previews and auction sales. Original Message From: David Mitchell To: Bruno Subject: Re: Antiquorum Budget 2014 High, Base, Low Cases Sent: Jun 4, 2014 6:35 PM What is the reason the cost and sale expense is so dramatically different David Mitchell MITCHELL HOLDINGS LLC On Jun 4, 2014, at 6:22 PM, "Bruno" < David: wrote: As a follow up to our conversation of yesterday please find attached for your review the following documents: - Consolidated High Case; we assume 100% of the budget is achieved for the balance of the year - Consolidated Base Case; we assume 85% of the budget is achieved for the balance of the year - Consolidated Low Case; we assume 75% of the budget is achieved for the balance of the year EFTA00991337 I added the low estimate value (value of consigned merchandise) and hammer price data for comparison purposes against the previous years. Text me if you'd like to go over the numbers this evening; I'll be available after 8:30pm. Best, Bruno Bruno Ayanian Chief Financial Officer Antiquorum USA, Inc. The Fuller Building 595 Madison Avenue New York, NY 10022 P: 212-750-1103 F: 212-750-6127 C: 917-288-9066 <AQ Conso Budget 2014 Base Case 85%.pdf> <AQ Conso Budget 2014 Low Case 75%.pdf> <AQ Conso Budget 2014 High Case 100%.pdf> Sent via BlackBerry by AT&T EFTA00991338 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 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 EFTA00991339