EFTA02352141

From: Heather Gray Sent: Wednesday, September 17, 2014 6:13 PM To: Jeffrey Epstein ([email protected]); Ada Clapp Cc: Richard Joslin Subject: RE: LDB upcoming art sales Rich is correct that t=e two Cornelis are also owned by Narrows, so please ignore my email below.=nbsp; (And thanks, Rich, for letting me know.) Thanks, Heather From: Richard Joslin Sent: Wednesday, September 17, 2014 2:04 PM To: Heather Gray; Jeffrey Epstein ([email protected]) Cc: Ada Clapp Subject: RE: LDB upcoming art sales I believe that t=e Cornell's are in fact owned by Narrows — Heather I will call=you to explain From: Heather Gray Sent: Wednesday, September 17, 2014 12:23 PM To: Jeffrey Epstein ([email protected] <mailto:[email protected]> ); Richard Joslin Cc: Ada Clapp Subject: LDB upcoming art sales Jeffrey and Rich, Below is the list of art that Leon has decid=d to sell this fall through Sotheby's. I'm having Sotheb='s send me the consignment agreement(s). Everything being sold is owned by Narrows I =xcept for the two Cornell boxes, which are currently owned by Leon. =e have three options with respect to the consignment of the Cornelis: EFTA_R1_01331043 EFTA02352141 1. =nbsp; Do nothing and have Leon consign the= to Sotheby's in his individual name. 2. =nbsp; Have Leon contribute them to Narrows=l now and have Narrows I consign them. 3. =nbsp; Have Leon consign them in his own na=e now and then if we add additional members to Narrows I before the sale (=n November 12th), assign Leon's consignment agreement to Narrows I at that time. Ada and I are not sure how much of a differe=ce it makes at this point, while Narrows I is still 100% owned by Leon, to=have Narrows I be the seller. Are we establishing a track record for the art investment entity if it sells while Leon is still the s=le member? On the other hand, is there any harm in moving the Cornel=s into Narrows I now? Some advantages are that Leon then only has to=sign one consignment agreement and all sales proceeds will be paid to the same entity (but maybe Leon wants to receive =he proceeds for the Cornelis himself?). The Cornelis will most likely be sold at a l=ss (the estimates are $175,000 - 225,000 for one and $100,000-150,00= for the other and Leon's basis in each box per Rich is $435,500).&n=sp; It doesn't matter for income tax purposes whether Leon or Narrows I =s the seller, but is it good/bad/irrelevant if the art investment entity s=arts out with more losses than gains? The Noguchi, Beckmann and Seve=ini are likely to be losses, as well. Please let me know what you think. Best, Heather Heather Gray Elysium Management LLC 445 Park Avenue Suite 1401 New York, New York 10022</=> Direct Dial: Fax: Email: [email protected] <mailto:[email protected]> 2 EFTA_R1_01331044 EFTA02352142 From: Melanie Spinella [mailto <mailto Sent: Wednesday, September 17, 2014 9:56 AM To: 'Moffett, Charles' Cc: Heather Gray Subject: >1 Good morning Charlie — hope you are well. I ju=t spoke to Leon in London and he wants to sell: The two Cornell boxes The Bonnard The Bechmann The Gris The Noguchi Statue (in Bedford) He also wants to make sure you sell the Severini in =he Italian sale. Thanks and best regards, Melanie <=b> I Apollo Management 9West 57th Street. New York. New York 1001= * (Lan) I * (Fax) <mailto: Executive Assistant to Leon D. Black This email and any files transmitted with it are confidential and intended solely for the person or entity to whom they are addressed and may contain confidential and/or privileged </=re> material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon this=/pre> information by persons or entities other than the intended =/pre> 3 EFTA_R1_01331045 EFTA02352143 recipient is prohibited. If you have received this email in error please contact the sender and delete the material from any computer. Apollo Global Management, LLC 4 EFTA_R1_01331046 EFTA02352144