From: "Jeffrey E." <[email protected]>

From: "Jeffrey E." <[email protected]> To: Heather Gray Subject: Re: time sensitive question on Calder 1031 exchange Date: Thu, 07 May 2015 19:17:22 +0000 wonder if we should consider calder for dante? like??s On Thu, May 7, 2015 at 12:25 PM, Heather Gray c Dear Melanie, Will you please pass this message along to Leon? Thank you! Heather Dear Leon, wrote: I would like to briefly call to your attention a question on the 1031 exchange of the Calder. We need to choose an exchange agent to be the middleman on the exchange. We can either use an art dealer as exchange agent or a non-art exchange agent such as one of the companies set up to do real estate 1031 exchanges (for example, Chicago Deferred Exchange Company). The advantage of using an art dealer is that you can reduce or possibly eliminate the sales tax you have to pay on the art that you buy as part of the exchange, by taking advantage of the trade-in credit available to art dealers. The disadvantage is that you have to tell the dealer the terms of your deal with Christie's and of the new art purchased in the exchange. Brad and I discussed this issue and he feels, on balance, that the financial risk/reward makes it worth using an art dealer as exchange agent. In order to use an art dealer, you need to choose a dealer in New York and ask them to act as exchange agent. It could be Pace or a dealer like Bob Mnuchin or David Zwimer. It cannot be a dealer with whom you have done business in the past two years, so it cannot be Gagosian, Acquavella, Matthew Marks or Sublime. A dealer is most likely to agree to act as your exchange agent if you call them yourself. EFTA00857397 We need to have the paperwork in place before the sale on Monday night, so ideally the dealer would be selected today. Art dealers usually receive a fee for acting as exchange agent. I have seen fees ranging from $20,000 - $50,000. Questions: 1. Which art dealer would you like to use as your exchange agent? 2. How much will you be paying the dealer as a fee? Please let me know once you have spoken with the dealer you select, and I will follow up with the dealer with all of the details and paperwork to put the exchange in place. Please let me know if you have any questions. I am in the office at Best, Heather Heather Gray Elysium Management LLC 445 Park Avenue Suite 1401 New York, New York 10022 Direct Dial: Fax Email: 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 EFTA00857398 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 [email protected], and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00857399