From: "jeffrey E." <[email protected]> To: David Mitchell. Subject: Re: Antiquorum Budget 2014 High, Base, Low Cases Date: Thu, 05 Jun 2014 21:15:13 +0000 nothing attached On Thu, Jun 5, 2014 at 12:23 PM, David Mitchell < > wrote: I would never take this type of risk when I take over this asset Please note new location: DAVID MITCHELL Mitchell Holdings Begin forwarded message: From: Bruno Date: June 5, 2014 2:21:29 PM EDT To: 'David Mitchell' Subject: RE: Antiquorum Budget 2014 High, Base, Low Cases David: "Other Contractual Expense" The drop in "cost of revenue" between 2013 and 2014 is due in large part to extraordinary "other contractual expenses" which accounted for $535K in the May '13 Geneva sale and a one-time finder's fee of $165K relating to the consignment of high-value timepieces. "Other contractual expenses" refers to charges incurred by the company when a lot is hammered below the reserve price. For instance if a consignment contract is concluded with a reserve price of $11,000, a 5% vendor commission and hammered at $10,000 the company will post the following: - "vendor commission" revenue: $500 (5% X $10,000 Hammer Price) - "other contractual expenses" cost: $1,000 (Reserve - Hammer Price) In the May '13 sale three high value lots sold below the reserve price which resulted in an extraordinary cost of $535K for the company. Catalog Production Between 2013 and 2014 the company pared down the catalog distribution list by weeding out the VIP recipients who haven't transacted over the last three EFTA00991336