<table><tr><th>From:</th><th>Richard Joslin</th></tr><tr><td>Sent:</td><td>Wednesday, November 26, 2014 4:42 PM</td></tr><tr><td>To:</td><td>jeffrey E.</td></tr><tr><td>Subject:</td><td>followup on Regan publishing</td></tr></table>

When title is produced, there are one time developme=t costs (aka Plant expense) — photography for book cover, copy editi=g, artists fees. When a book goes into second printing then th=se costs do not recur.

Royalty payments increase as more units are sold.&nb=p; If there is a blockbuster, there is a higher royalty cost per unit, ie =5% on Art of the Pimp, the title that Judith hopes to be blockbuster. = John is building model to show the margin/ cash flow if there is specific title that has a second printing.

Richard Joslin

CFO

Elysium Management LLC

445 Park Ave

Ste. 1401

New York, NY 10022

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