<table><tr><th>From:</th><th>Eileen Alexanderson</th></tr><tr><td>Sent:</td><td>Sunday, February 22, 2015 6:34 PM</td></tr><tr><td>To:</td><td>jeffrey E.</td></tr><tr><td>Cc:</td><td>Ada Clapp</td></tr><tr><td>Subject:</td><td>Re:</td></tr></table>

Sorry don't have access from here to check exact amount of note at tim= of distribution in 2010 but, from memory, it was approx $7.8 mil. interes= was accrued but not paid to Ben. It was decided taxes needed to be paid i= this imputed accrued income-can check tomorrow on who ruled on that subject.

In December 2012 the note, with interest, had a value if $8.37 mil. Ju=t before yearend the note was divided into two notes:

Note 1 in the amount of $5.12 mil was used to fund Ben's Yggdrasil Tru=t ( formed to take advantage of the gift exemption due to concern the allo=ed level would be reduced.) Note 2 in the amount of $3.25 mil remained in Ben's self settled 2010 =rust.

Notes were restructured at yearend 2013. Note used to fund Yggdrasil w=s purchased by the LDB201111.C. The $3.25mi1 was paid off by the same LLC. =ith interest that grew to $3.45mi1. That cash was deployed as I indi=ated earlier, i.e. townhouse+current balance in the trust. Again, this is from memory. Will confirm tomorrow. O= Ada please chime in. Re the Phaidon entities, loan to midco was on paper only, no int=rest paid, by PWC design, it was not supposed to be. Re money flow, =t time of acquisition cash went from Acq LLP through Topco and Midco and t=en to Bidco (JMWT Ltd) but all using MacFarlane's client account and then papered since there was no Acq LLP bank account. A=ain, no access to file from here today, sorry. No tax filings have been ma=e to date. Rich would no better but i believe statutory accounts were file= in January after auditors signed off on the fiscal 2014 statements and John Murphy has WO addressing tax f=lings currently. They could not do so until these accounts were filed.&nbs=;

## Sent from my iPhone

On Feb 22, 2015, at 11:06 AM, jeffrey E. <jeevacation@gmail.com <mailto:jeevacation@=mail.com> > wrote:

what was the total note in the begiing? interest,&nb=p; where did the phantom income come in? did interest get paid. ?&nb=p; 2 can you tell me with topco bidco midco. did money e=er move ? what was debt? which entity , any tax filings = any filings at all? money flowe etc

<u>On Sun, Feb</u> 22, <u>2015 at 11:30</u> AM, Eileen Alexand=rson
> wrote:

$3.25 mil of note was paid off by the LDB2011 LLC. That cash went to B=n's 2010 Trust. Part went toward townhouse purchase and $1.2 mil cash is s=ill held between the 2010 Trust and Donalbane LLC. $5.2mi1 of note was pur=hased by the LDB 2011 LLC ( which is now owned by APO 1)

## Sent from my iPhone (cont.)

wrote:

the phantom income generating note to ben, , did we get ri= of it entirely?

--

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please note

The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE

Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved