EFTA02464401

From: jeffrey E. <[email protected]> Sent: Saturday, April 30, 2016 11:44 AM To: Jeffrey Epstein Subject: REVIEW ALL OTHER APPRAISALS !!! para 1/ Since the IRS questions 3 and 4 =n the request are the same , we are providing this single response . 2. Empire=selected 15 % as the applicble discount rather than a higher number that m=ghthave been be derived from the benchmark ranges contai=ed in the Mergerstat Reviews. 3 as contain=d in the orignal valutation. Empire The range of disc=unt described in these studies for " lack of control &quo=; was 11.3 to 32.4 percent. and the range of discount for lack of marketab=lity was 21- 27 %. As both discounts are present in our valua=ion of the BFP ineterest. they would normally be applied sequentially to t=e valuation, increasing the final discount range to 29.9=- 50.6 % 4 Though the =ergerstat studies inform our decision, in the BFP =ase the actual restrictions are less onerous than many described in =he studies. requiring us to reduce our total , below even the low end of t=e combined range to only 15 % . The reasons =re as follows 5 THe pri=ary consideration in the reduction of total discount was that in ARicle 3.= of the BFP AGreement . states that bfp partners may withdraw any po=tion of their capital account at any time. The major asset that woul= likely be distributed would still carry with it its own disco=nt and well as other retrictions on transfer etc. In addtio= the timing of the asset transfer exposes the transferee to market risk an= unpredictability. as well as the requiredment that the General Partner ap=rove any transfer of interest. = Based on the above it was considered reasonable to =div dir="ltr"> please note The information contained =n 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, disclo=ure or copying of this communication or any part thereof is strictly pr=hibited 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@gma=l.com <mailto:[email protected]> , and destroy this communication and all copies thereof, in=luding all attachments. copyright -all rights reserved EFTA_R1_01571751 EFTA02464401