EFTA00706148.pdf

From: Ada Clapp < To: Jeffre E stein <jeevacation@gmail.com>, Eileen Alexanderson %, Richard Joslin Subject: RE: FW: Art Insurance Date: Thu, 30 Jan 2014 15:27:46 +0000 I will introduce Rich to a broker I know at Lloyd Bedford Cox who works mainly with Chubb and has some experience with clients of Leon's ilk (and particularly with art as I understand it). Ada Clapp Elysium Management LLC 445 Park Avenue Suite 1401 New York, New York 10022 Direct Dial: Fax: Email: IRS Circular 230 Disclosure: Pursuant to IRS regulations, I inform you that any tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, by any person or entity for the purposes of (i) avoiding tax related penalties imposed by any governmental tax authority, or (ii) proposing, marketing or recommending to another party any transaction or matter discussed herein. I advise you to consult with an independent tax advisor on your particular tax circumstances. This communication and any attachment is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary. If you are not the intended recipient, you are hereby notified that further dissemination of this communication and its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you have received them in error. Thank you. From: Jeffrey Epstein [mailto:jeevacation@gmail.com] Sent: Wednesday, January 29, 2014 6:43 PM To: Ada Clapp; Eileen Alexanderson; Richard Joslin Subject: Re: FW: Art Insurance I suggest bringing in a brand new insruanve co/agent for a competitve bid On Wed, Jan 29, 2014 at 6:22 PM, Ada Clapp < > wrote: Hi Jeffrey and Eileen, As you can see, Eileen and I focused on the insurance issue shortly after I started with the family office. Below are the details of the conversation I had with Jeffrey Haber and the estimated additional cost of over $400/year he estimated to have the separate policies. I understand from Rich that you want him to handle all insurance matters going forward so I am leaving him to confirm with you how you wish to proceed. Please let me know if you prefer for me to handle the insurance on the trust owned art. Best regards, Ada Clapp EFTA00706148 Elysium Management LLC 445 Park Avenue Suite 1401 New York, Direct Dial: Fax: Email: IRS Circular 230 Disclosure: Pursuant to IRS regulations, I inform you that any tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, by any person or entity for the purposes of (i) avoiding tax related penalties imposed by any governmental tax authority, or (ii) proposing, marketing or recommending to another party any transaction or matter discussed herein. I advise you to consult with an independent tax advisor on your particular tax circumstances. This communication and any attachment is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary. If you are not the intended recipient, you are hereby notified that further dissemination of this communication and its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you have received them in error. Thank you. From: Ada Clapp [mailto: Sent: Thursday, May 30, 2013 3:59 PM To: Eileen Alexanderson Subject: Art Insurance HI there, I had a long talk with Jeffrey Haber. He was a bit reluctant to speak with me since he did not know me and because he said that he already had the conversation with Melanie not too long ago (and he thought with you). Apparently, Melanie did speak with him about breaking out the policies into separate stand alone policies for the trusts. Jeffrey's understanding is that Leon does not want to do this, and Jeffrey advises against it, from a price standpoint. According to Jeffrey, the largest cost of insurance is in the first $100 MM of coverage as this is the primary loss payor (other insurance provides don't pay until aggregate claims exceed $100 MM). As he explained it, the first $100 MM of insurance costs about $120k and the next $100 MM costs only $55k. The cost for increments of $100 MM of coverages go down dramatically as you acquire more insurance (makes sense since higher tiered insurers are less likely to have to pay). Jeffrey estimated that it would cost roughly an extra $360,000/year to provide separate policies of $100 MM of coverage for each of the two trusts and the LLC ($120,000 per insured). Since it looks like the 97 trust has more than $100 MM of art--it would require more than $100MM of coverage so the added cost could be as much as $415k/year. Jeffrey says he will do whatever Leon wants but he advises against the break-out from a cost standpoint. If he were to write separate policies for the Trusts and the LDB 2011 LLC he would do the same type of Umbrella policy that is currently in place (there would simply be 4 separate umbrella policies). We would not need to itemize the art owned by any one insured and the policy in each case would cover any new art acquired at the greater of the appraised value of fair market value at the time of loss (this is the same arrangement currently in place). Given the large savings for the Trusts, I think that it is a reasonable business decision on the part of the Trustees to continue with the current insurance arrangement. We simply need to continue your practice of allocating the premium payments pro-rata to each insured covered under the umbrella policy (with the Trusts and the LDB 2011 LLC reimbursing Leon for amounts he pays out on their behalf for premium payments). EFTA00706149 The Trustees also need to be aware of the dollar limit of the coverage ($1.6 bil) for ALL that art--which would include new acquisitions--so that they are comfortable that there is adequate insurance to cover their property in the event of large scales loss (very unlikely). In that regard, they should also keep track of the value pieces situated outside of Manhattan--as the insurance cap for those works $300 MM (i.e., the worldwide coverage limitation). I will confirm with Jeffrey that the Endorsement lists the insured correctly. As we discussed, you will confirm that title to any art held in the Leon D. Black Investment Trust A (now terminated) was correctly changed. Ada Clapp Black Family Partners do Apollo Management 9 W 57th Street New Y phone: email: IRS Circular 230 Disclosure: Pursuant to IRS regulations, I inform you that any tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used by any person or entity for the purpose of (i) avoiding tax related penalties imposed by any governmental tax authority, or (ii) promoting, marketing or recommending to another party any transaction or matter discussed herein. I advise you to consult with an independent tax advisor on your particular tax circumstances. This communication, and any attachment, is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary If you are not the intended recipient, you are hereby notified that further dissemination of this communication and its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you have received them in error. *********************************************************** 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 Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this EFTA00706150 communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00706151