EFTA02596822

From: Richard Joslin Sent: Wednesday, December 3, 2014 2:36 PM To: Jeffrey E.; Brad Wechsler Subject: FW: Regan Arts I summarized open ques=ions to Phaidon accounting team below From: Richard Joslin Sent: Wednesda December 03, 2014 9:26 AM To: ' ;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 contractu=l with distributor? If there is a second printing, is the 47% =ontinue to apply? Direct costs PPB - what is the derivation on a per title ba=is — cost varies per unit/ median $1.72/ title. PPB - If there is a second printing would the =er unit amount remain the same? Plant expense - what is the derivation on a per titl= basis. Please provide detail, eg development, photo, artist fees, copy ed=ting Plant expense — please confirm that if there i= a second printing then there is no incremental plant expensega Royalty — pls send some sample contracts<=o:p> EFTA_R1_01782085 EFTA02596822 Royalty — I see benchmark payment schedule, eg=amount at hardcover publish date; amount at softcover publish date. =re these contractual by date? Royalty — Under what circumstances would these=amounts need to be returned? Royalty — if there is a scheduled softcover pa=ment and the book is not release in softcover, is the payment cancelled? Royalty — what is Royalty/ expense memorandum?=l assume it is the total amount of advances paid to author? Royalty — Cash flow — Cash Outflow (Best=case scenario) includes "Royalties advances (14)" ($1,441,000)=and "Additional (14) Royalty Payments" ($1,552,071). The=e two amounts add up to $2,993,071. I understand this amount to be e=ual to total royalties payable if all print quantities sold. Pleas= clarify that the "Royalty Advances(14)" were actually paid in=2014 (not 2015). Selling and distribution — 10% is paid to dist=ibutor; 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 titl= basis. Please provide detail Freight - what is the derivation on a per title basi=. Please provide detail Richard Joslin CFO Elysium Management LLC 445 Park Ave Ste. 1401 New York, NY 10022 (w) (646) 589-0305 2 EFTA_R1_01782086 EFTA02596823 (c) (f) (646) 589-0330 3 EFTA_R1_01782087 EFTA02596824