EFTA02369053.pdf

From: Kevin Law Sent: Monday, December 7, 2015 10:02 PM To: Jeffrey Epstein Cc: Joe Meli Subject: KL "factor deal" - confidential Attachments: Status Report_Dead & Company as of December 7th 2015.xlsx; AEP Detail Projection v6.xlsx JE, Per our conversation last week regarding the factoring business, here =s a proposal for you to become our partner in this business alongside the =ounder, Joe Meli, who you've met previously with me. The detail be=ow and in the above attachments outlines the structure, how the money is put to work, the expected returns and the =ime frame. Please let us know by weeks end if you'd like to move f=rward and we are happy to answer any questions/concerns in the meantime. &=bsp;Also happy to hop on a plane if this requires a further sit down with Joe. As these deals are happening in real ti=e and we'd be removing another investor for the inventory we have on bro=dway which we discussed, we need to move quickly which I know you have the=ability to do. Please let me know our thoughts. Regards, KL From: Joe Meli Date: Monday, December 7, 2015 at 4=23 PM To: Kevin Law Subject: Follow up KL, The following model shows $30mm investment by=JE. The model assumes a 2 year investment with 22 investable deals o=er the 2 yr period. The model also assumes we give JE a 8% pref and go 50/=0 on every dollar post. If we only average a 40% return on each deal (which is where we are roughly on GD and know we=will far exceed on Hamilton and Adele), JE roughly $47mm on $30mm investme=t. Attached please find the model that outlines =hese deals and terms and a current status update on a live deal now. Additionally as d=scussed the following summarizes a few of the more recent transactions and=their results: 1. Coachella 1. We initially funded in February 2015 2. We purcha=ed $1 million artist passes (1,000 artist passes for $1,000 per pass) 3. We sold all passes for $2.2 million (an average price of $2=200, 220% of purchase price) 4. Event occurred in April 2=15 5. Proceeds from sale were received in May 2015=/li> EFTA_R1_01368549 EFTA02369053 2. Grateful Dead 1. We initially funded in February 2015 2. We purcha=ed $1.5 million of tickets (7,500 tickets at an average price of $200) 3. We sold all tickets for $4.5 million (an average price of =600 per ticket, 300% of purchase price) 4. Events occurre= 4th of July weekend=/li> 5. Proceeds from sale were received in August 2015 <1=1> 6. Dead & Company Tour 1. We initially funded in June 2015 2. We purchased =5 million of tickets (25,000 tickets average price of $200) 3. To date we have sold 13,000 tickets for $3.8 million (an average pric= of $293, 147% of purchase price) 4. Events occurring bet=een October and December 2015 5. All proceeds to be colle=ted by February 15th(rolling bas=s, some already received) 6. =span style="background-color:rgba(255,255,255,0)">A summary of the indiv=dual dates and results is attached hereto Please let me know best way to move forward 2 EFTA_R1_01368550 EFTA02369054