From: Richard Kahn To: Jeffrey Epstein <jeevacation®gmail.com> Subject: Fwd: Next Date: Wed, 30 Aug 2017 02:54:03 +0000 Attachments: 170829_-_Nextn Jun'17 Balance Sheets.pdf; 170816_Next_-_Min_Cash_Analysis.pdf Richard Kahn HBRK Associates Inc. 575 Lexington Avenue, 4th Floor New York, NY 10022 Tel Fax Cell Begin forwarded message: From: Neale Attenborough Date: August 29, 2017 at 10:40:07 PM EDT To: Richard Kahn < Cc: Chris Lawler .4 F, Tyler Shean Subject: RE: Next Richard, Not funny at all, just factual. I think if we are to ultimately agree on value it will be important we agree on a set of facts: 1. TTM EBITDA is $6.7Million. If you disagree, please let us know precisely what items you disagree with in the number and we can discuss. 2. The current cash balance for the company is $13.1 Million. 3. The past three comparable transactions for companies in this market average an enterprise value at —10x multiple of EBITDA a. Wilhelmina: 7x (average meaningful trading multiple since 2010) b. Creative Artists Agency: 10x (TPG acquisition, 2014) c. IMG: 13x (WME acquisition, 2013) 4. We invested $18 million for a 42% stake in the business, implying an enterprise value of $42.9 million. 5. We received a bona fide offer from OpenGate Capital which would have resulted in $18 million in proceeds for us (and in fact a $17 million distribution to Faith and Joel), and while they were, as you point out, contemplating leverage in the <3x EBITDA range, it is in fact a relevant data point and an independent look at value. 6. One other note that is relevant to us, is that when Elite Models in Europe contacted us with an interest in buying the company, Faith told me to relay to them that they would not contemplate selling to Elite for less than $100 million (which at the time was a +10x synergy-adjusted EBITDA value). Ultimately they walked based on that value requirement. I would hope you agree that the following is a commonly agreed upo