<table><tr><th>From:</th><th>Richard Joslin</th></tr><tr><td>Sent:</td><td>Tuesday, February 25, 2014 6:44 PM</td></tr><tr><td>To:</td><td>Ada Clapp</td></tr><tr><td>Cc:</td><td>Eileen Alexanderson; Jeffrey Epstein; Richard D'Agostino;</td></tr><tr><td>Subject:</td><td>RE: Decanting the 1997 trust to APO2</td></tr></table>

As I understand this decanting, the distributing trust and receiving trust =re both grantor trusts and have the same owner before and after. As such =he receiving trust is a continuation of the distributing trust, ie same ta= ID number for income tax purposes. While two assets may have negative=tax basis in 2014 (Blue Sunshine had negative tax basis a/o 12/31/2012 o= $(300K); AP Energy Partners LLC had a negative tax basis a/o 12/312012 of=$(10K) - we do not have K-1's FY 2013), the decanting should not trigger a=y gain on transfer.

On a related vein, I'd like to get Ada/Alan input on not using LDB SSN for =he grantor trusts and getting EIN's and reporting annually Form 1041with =rust letter. I would like to have annual 1041 filing for the trusts vs =o reporting other than included on 1040 directly.

Original Message
From: Ada Clapp
Sent: Tuesday, February 25, 2014 8:33 AM
To: Richard Joslin; Richard D'Agostino
Cc: Eileen Alexanderson; Jeffrey Epstein
Subject: Decanting the 1997 trust to APO2

We are planning to send the Decanting Notice to the beneficiaries of the 19=7 trust today. Just checking to be sure there are no tax or other issues f=r our accounting team. If so, please let me know as soon as you can. Thank=.

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