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

From: "Jeffrey E." <[email protected]> To: Melanie Spinella Subject: Fwd: Latest Version of the Regan Arts Model Date: Mon, 08 Dec 2014 23:58:23 +0000 Attachments: ATT00001.htm; Regan_Arts_2015_-_Base_Scenario_120814.pdf; Regan_Arts_2015_Worksheets_dated_12-08-14_vIn Current_Scenario.xlsx; ATT00002.htm Forwarded message From: Richard Joslin Date: Monday, December 8, 2014 Subject: Fwd: Latest Version of the Regan Arts Model To: "jeffrey E." <[email protected]> Fyi Begin forwarded message: From: "John Murphy" To: "Richard Joslin" Cc: "Eileen Alexanderson" Subject: FW: Latest Version of the Regan Arts Model Hi Rich, Latest version of the model attached. From a Cash Flow perspective minimum changes to the model we sent over on Friday, we pushed 1 title out from 2014 to 2016 and we amended the calculation on the Canadian returns (original model had this in C$ I have converted this to US$) From a P&L the Macklemore royalty advance was not picked up in the model. This is a flat payment of $350k and the royalties are 0% and as such the model did not pick up the expense, I have now taken the full royalty against the revenue in October 2015. I have also added a revenue tab to the PDF file which shows you what titles make up the revenue in the P&L as an easy reference. Regards, John. From: John Murphy EFTA01002685 Sent: Monday, December 08, 2014 6:07 PM To: Cc: Diana tuna Subject: Latest Version of the Regan Arts Model Hi Judith, Please find attached the latest version of the model. Revenue Revenue is up to $6.35m from $6.27M. We pushed Founders and Failures to January 2016 from December 2014, we had $48k in returns in 2015. (Revenue and Returns now occur in 2016 on this title) The original model had Canada returns at C$ we changed this to US$ and picked up another $38k in revenue Expenses Expenses are up $350k. I am now including the royalty advance in total against the revenue on Macklemore Note this does not impact the Cash Flow model as the advance was already included here Current Overall Position Overall loss in 2015 goes from -$1.42M to -$1.68M driven primarily by royalties to Macklemore. The Cash Flow has slightly improved going from -$4.89M to -$4.82M driven the pick-up in revenue. This version of the PDF also includes a revenue tab so you can easily what makes up the projected revenue in this model, based on the first print run and the estimated laydown from S&S. Regards, John. John Murphy COO/CFO EFTA01002686 mailto: phaidon.com 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 EFTA01002687