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

From: "Jeffrey E." <jeevacation@gmail.com> To: Eileen Alexanderson Subject: Re: KUE Date: Mon, 10 Nov 2014 22:17:49 +0000 timber? On Mon, Nov 10, 2014 at 5:12 PM, Eileen Alexanderson > wrote: Teleconference of KUE partner meeting finished a little while ago. The attached, which I sent last week, is a good summary of the situation. From today's meeting: -deal in hand for the sale of the Intl operation in Singapore for net proceeds of $108.2mil was announced at the meeting. Also KUE has a signed term sheet, with a exclusivity period only until Dec 8th, for the sale of the Canadian Intl School which would net $248mi1. Combined $357mi1 net proceeds after debt repayment is a bit below guidance I had been given of $400mi1 and a bit will be held back in an escrow account. Guidance was for a late Dec or Jan distribution of proceeds which would be roughly $5mi1 to us. -Propco — mindset toward monetizing but sounded like there is no firm shape for a deal yet i.e. whether they will sell to a REIT or form a new RE company and lever. Property portfolio is a bit of flux reflecting disposition of centers closed by Opco over the past several years. KUE would like LPs to have option of two ways out — cash or equity in survivor. As I indicated in the note, for extension to Oct 2016, Intl and Propco must be monetized by Oct 2015. -Opco — core early childhood care centers are growing again — EBITDA est for 2014 is $118mil, up from $89mi1 in 2013. Plan shows goal of $142mil in 2015 and $162mil in 2016. Co suggested valuation at 10x EV/EBITDA seems appropriate given fact that public comp, Bright Horizons, trades at 15x EV/EBITDA but is supported by 14% ebitda margin compared to Opco at 9.3% currently and future forecast of 10%. Eileen Alexanderson Elysium Management 445 Park Avenue Suite 1401 New York NY 10022 Phone: Email: EFTA01000513 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 jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA01000514