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Walker Sports Audit I For CAADear Creative Artists Agency (CAA),Maintaining transparency, integrity, and accountability in all financial matters has neverbeen more critical in the highly competitive and rapidly evolving world of sports, arts, andentertainment. This is particularly pertinent regarding the complex third-party relationshipsbetween sports talent and their agents, accountants, lawyers, coaches, and other stakeholders.Walker Sports Audit (WSA) is the premier third-party audit service in the sports and entertainmentindustry. As a specialist in providing independent evaluations for partners and their clients in thesports sector, WSA offers unmatched expertise in completing complex third-party and portfolioaudits, performance evaluations, due diligence reviews, and risk assessments.The emergence of new and riskier opportunities presented to sports talent ranging frominvestments in start-ups, and philanthropic engagements to related party transactions, means thatdue diligence and periodic independent reviews are vital to preventing loss, identifying andmitigating existing risks, and ensuring adherence to professional best practices and standards. Wehave identified several audit areas where Walker Sports Audit will add significant risk managementvalue both to A) CAA basketball and football clients and B) to CAA as a client itself.A) Audit Service Offerings to CAA Basketball and Football Clients:- Limited Scope Audits: Conduct detailed audits on a selected or directed scope basedupon CAA client risks and needs;- Full Scope Audits: Perform in-depth audits of all material third-party and financialrelationships within the bounds of the law.- Periodic Due Diligence: Conduct regular follow-up audits post-engagement toconsistently apply control standards and promptly identify and address any new oremerging issues.- Pre-Investment Due Diligence: Perform extensive audits before investments to identifypotential risks and provide a clear picture of the investment landscape.- Post-Investment Due Diligence: Conduct meticulous reviews following investments toensure they align with your client's objectives and remain compliant with industryregulations.- Background Checks: Conduct comprehensive background investigations to ensurethird-party legitimacy and detect potential conflicts of interest and other third-party issues.

B) Audit Service Offerings to CAA as ClientAs a valued client, we will offer the following additional services directly to CAA:- Independent Third Party Risk Assessments: Carry out impartial risk evaluations ofCAA's trusted third-party dependencies, partnerships and/or wholly-owned subsidiaries,ensuring transparency and minimizing exposure to potential risks and losses;- Independent Audits: Carry out full or partial scope independent audits of CAA's Wholly orPartially Owned Subsidiaries, Partnerships, Business Ventures, or Other Key Third PartyDependencies/Vendors, including Investment Banks, Venture Funds, Tech Startups, GlobalBusinesses, Partnerships, Brand Marketing, and Services and Philanthropy to provideassurance surrounding third party performance and to identify financial risks.By providing independent audit services directly to CAA as an entity, WSA will help CAA developand/or strengthen its existing Enterprise Risk Management Framework (ERMF) by serving as CAA’sThird Line of Defense. This assures CAA clients as follows:- First Line of Defense: The CAA Agents/Line Management: Directly undertake day-to-dayclient relationship management responsibilities and the express protection of CAA clients(ie. athletes, artists, actors, musicians, etc.);- Second Line of Defense: CAA’s internal or external Subject Matter Experts/Functionsengaged in serving, supporting and overseeing the proper performance of day-to-day CAAclient management responsibilities. Such functions include oversight by senior legal, tax,compliance, finance and/or human capital management teams, etc.;- Third Line of Defense: Walker Sports Audit’s independent performance examinations ofthe first and second lines of defense (CAA’s agents and functional subject matter experts)as an added level of assurance offered to CAA's high-profile basketball and football players,artists, actors, musicians, etc.We firmly believe that a strategic partnership with Walker Sports Audit as your Third Line ofDefense sets CAA apart by demonstrating CAA’s strong commitment to assuring the highest levelof service integrity is consistently delivered to CAA’s high-profile clients. Our goal is to strengthenCAA's reputation as an industry leader by raising CAA’s internal governance standards that arefundamental for building client trust, providing transparency, and acting with integrity in all that itdoes. We welcome the opportunity to discuss this proposal further and explore how ourcollaboration can pave the way for a mutually beneficial partnership.Sincerely,Mary Beth LydonManaging Partner, Walker Sports Audit

Walker Sports Audit (WSA) is a professional third-party audit service provider specificallydesigned for clients in the sports industry. WSA offers independent and comprehensiveevaluations of our client's entire portfolio of third-party relationships, endorsements, contracts,investments, compliance, and tax reporting.Our primary focus is to assess and rate our clients' third-party dependencies and financial relationshipsto identify existing vulnerabilities, particularly those related to agents, lawyers, accountants, coaches,doctors, trainers, advisors, family, and friends. We thoroughly examine the risk management practicesgoverning these relationships to identify potential and/or realized risks/losses and to ensure ongoingtransparency, accountability, and adherence to professional and industry standards. Additionally, WSAoffers full Pre and Post Third-Party Investment Evaluations (TPIEs).It is essential to note that WSA operates within the strictest ethical guidelines. We will never engage inservices beyond the scope of our original WSA assignment, nor will we ever attempt to replace ourclients' existing accountants, agents, or other professionals. Our sole purpose is to provide our clientswith a valuable and necessary independent audit or evaluation, offering our educated, impartialperspective without undue influence from compromising agendas or misplaced loyalties.At WSA, we prioritize maintaining the highest level of professionalism, independence, andconfidentiality throughout our engagement. Our clients can trust that their financial matters will bemeticulously reviewed and assessed by our team of experienced financial auditors and taxprofessionals, ensuring the integrity and accuracy of their financial information.We are dedicated to serving our sports industry client's best interests and to providing them withcritical insights and guidance in order to make informed decisions and to take decisive actions.

Walker Sports Audit I ProgramsWalker Sports AuditWalker Sports Audit is an independent audit service that autonomously evaluates our client’s entire portfolio ofendorsements, contracts, investments, compliance, and tax reporting. Most importantly, no WSA serviceprovider will ever be employed by our clients beyond our WSA engagement. We will not solicit clients beyondour stated services. We will never attempt to replace our client’s accountants, agents, etc.. We simply offer ourclients a very valuable and necessary independent audit and evaluation service with a degree of separation thatensures no compromising agenda or misplaced loyalties.CAA Client Audit Cost $10,000+1. Background VettingCompletion of background checks for fact-checking a person’s information to verify the truth andaccuracy of key third-party information for reliance, including education, licenses, certifications, pastand current places of work, addresses, related parties, bankruptcies, and civil and criminal judgments.2. Client Financial AssessmentAssessment of a client’s overall financial acumen and understanding of the financial risks they face andthe controls needed to identify and manage those risks in a timely manner properly.3. Third-Party Risk & Controls AssessmentsThis is an analysis of the risk introduced via third-party relationships and the adequacy of controlsexercised over those relationships with outside entities such as agents, attorneys, accountants,investment advisors, investment firms, publicists, and partnerships.4. Entity ReviewReview of up to 3 business entity formation documents, financial and management information (eg.bank/ operating account activity and financial statements of condition). [Each additional entity forreview costs $5,000].5. Advisor ReviewReview of 2 years of activity with one financial advisor [e.g., agents, lawyers, accountants, coaches,doctors, trainers, advisors, family, friends, etc.] relationships, including advisor activity, fees, charges,financial transactions and asset access controls. [Each additional advisor or year of review is $2,000].6. Investment ReviewReview up to 2 proprietary investment contracts/agreements, investment activity, investmentperformance and cash flows. {Each additional investment is $4,000].7. Tax ReviewReview of last 2 years' personal and business tax returns. [Each additional tax return is $1,000].8. Detailed Evaluation ReportDetailed evaluation, recommendations and summary reporting.9. Asset RecoveryIn addition to Walker Sports Audit’s introductory cost of $10,000, WSA earns 25% of any recoveredassets or funds that emanate from Walker Sports Audit’s loss recovery work.

CAA Client Pre and Post-Third-Party Investment Evaluations (TPIEs) Cost $4000+Detailed Investment EvaluationOur detailed evaluation of a client's investment opportunity refers to independently analyzing and assessing thepotential investment to determine its fit for purpose, viability, risks, and potential returns. It involves evaluatingvarious factors, such as the client’s goals, risk appetite, the investment's underlying assets, counterparties,financial performance, market conditions, and associated risks. The goal of a WSA diagnostic evaluation in aninvestment opportunity is to provide a thorough and clear assessment of the opportunity that independently andclearly informs and assists the client's investment decision-making process.CAA Client Pre-Deal Investment Due Diligence [$4,000]Single investment risk assessment, financial and risk analysis, detailed evaluation, and summary reporting.CAA Client Post-Deal Investment Performance Analysis [$6,000]Single investment performance review and risk assessment, detailed evaluation, and summary reporting. Theprocess of conducting a diagnostic evaluation of an investment opportunity typically includes the following steps:1. Investment ResearchWSA, the client, and their representatives independently gather information about the investmentopportunity, including the company or asset being invested in, industry trends, market conditions, andany relevant financial data or reports.2. Evaluation of Financial PerformanceWSA does a comparative analysis of the investment's projected or actual financial performance, suchas revenue growth, profitability, cash flow, and return on investment. WSA also assesses key financialratios, such as the price-to-earnings [P/E] ratio, earnings per share [EPS], and debt levels.3. Assessment of Market and Industry FactorsEvaluate the market and industry conditions relevant to the investment. Consider factors such asmarket demand, competition, regulatory environment, supply chain challenges, and potential threats oropportunities that may impact the investment's performance.4. Risk AnalysisIdentify and assess the risks associated with the investment. This may include market, operational,financial, legal, and external factors, both domestic and international, that could affect the investment'svalue or returns. Evaluate the risk-reward tradeoff and consider the individual's risk tolerance.5. Due DiligenceConduct a thorough investigation of the investment opportunity. This may involve reviewing legaldocuments, contracts, and financial statements and conducting background checks on theinvestment's management team or the key counterparties.6. Investment ValuationDetermine the intrinsic value of the investment. Utilize various valuation methods, such as discountedcash flow [DCF] analysis, comparable company analysis, or asset-based valuation, to independentlyestimate the investment's fair value and compare this valuation to the projected or marketedvaluation(s).

7. Investment Strategy and RecommendationsBased on the findings of the diagnostic evaluation, provide recommendations to assist the client indeveloping an investment strategy. This includes determining the appropriate investment amount,expected holding period, monitoring requirements, and potential exit strategies.8. Continuous Monitoring and ReviewAt the client’s discretion, perform periodic monitoring of the investment's performance [ongoing reviewand update of the detailed evaluation are available at additional cost and upon client request]. This willidentify and inform necessary adjustments to the investment strategy based on changing marketconditions, company updates, or new information.A detailed evaluation of an individual's investment opportunity helps individuals make informed decisions byproviding a comprehensive assessment of the investment's potential risks and returns. It supports theindividual in evaluating the suitability of the investment, aligning it with their financial goals, and minimizespotential pitfalls.CAA as Client - Full and Partial Entity Audit Cost - Partial $25,000+ Full $35,000+Custom audit pricing is provided upon request. Pricing reflects the level of complexity and risks presented at theauditable entity level.In the highly competitive and rapidly evolving worldof sports, arts, and entertainment, maintainingtransparency, integrity, and accountability infinancial matters has never been more critical.WSA does not pay to play.Instead, we are developing an independent thirdparty rating system to be used as the singlesource of truth by athletes, artists, actors andmusicians when engaging third parties.