EFTA01114641.pdf

W \STON ART GROUP Retail Replacement Value Appraisal Property Belonging to Mr. Richard Kahn 9 East 71st Street, New York, New York Values as of June 24, 2015 Values as of June 24, 2015 8182.1, Retal Replacement Value Apprasal Page 1 of 32 41 East 57th Street * 29th Floor * New York, NY * 10022 * EFTA01114641  WINSTON ART GROUP Table of Contents Affidavit Pages 3-4 Scope of Work Pages 5-6 Narrative Page 7 Grand Total Page 8 Appendix: GIA Certificates Pages 9-13 Market Overviews Pages 14-23 Appraisal Definitions and Terminology Pages 24-28 Fine Jewelry: Terms and Definitions Pages 29-30 Terms and Conditions Page 31 Curriculum vitae Page 32 Values as of June 24, 2015 8182.1, Reta Rep acement Value Appraisal Page 2 of 32 41 East 57th Street * 29th Floor * New York, NY * 10022 * EFTA01114642  WI\STON ART GROUP AFFIDAVIT STATE OF NEW YORK) SS: COUNTY OF NEW YORK) I, David Sleeman, Director of Winston Art Group, Tax ID It 27-2541263, being duly sworn, hereby depose and certify: That the facts contained in this report are true and correct to the best of the ability of the appraiser. That the reported analyses, opinions, and conclusions herein are limited only by the reported assumptions and limiting conditions and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. That the appraiser has no personal or financial interest regarding the property or the parties involved. That the appraiser has no bias regarding the property or the parties involved. That this appraisal represents our best judgment and opinion as to the Retail Replacement Value of the subject property. That our appraisal will not be a representation or warranty with respect to authenticity, genuineness or provenance. That the values are given for the same or comparable items. That you agree to indemnify and hold Winston Art Group harmless from and against any and all claims, actions, damages, losses, liabilities, and expenses (including legal fees) relating to this appraisal. That the fee is charged on an hourly basis and is not contingent upon the value of the objects appraised. That on June 24, 2015, at the request of Mr. Richard Kahn, he caused Kelly Schaber, a qualified appraiser of tangibles of the kind and character set down upon the annexed schedule who has been in the appraisal business for over 30 years to examine and appraise the retail replacement value of property belonging to Mr. Richard Kahn, 9 East 71st Street, New York, New York. That the appraisal is prepared in accordance with the 2014-2015 USPAP. The values provided are as of the date of inspection, June 24, 2015. That the appraisal is for Retail Replacement Value, defined by the Appraiser's Association of America as the amount it would cost to replace an item with one of similar and like quality purchased in the most appropriate marketplace within a limited amount of time. That this appraisal was prepared using the Comparative Market Data Approach, in which appraised value is based upon past prices for similar works by the same artist or artisan, or similar works by another artist or artisan of equal standing and related reputation. Values as of June 24, 2015 8182.1, Retal Replacement Value Apprasal Page 3 of 32 41 East 57th Street * 29th Floor * New York, NY * 10022 * EFTA01114643  WI\STO\ ART GROUP That the Retail Replacement Value is: THREE HUNDRED EIGHTY THOUSAND FIVE HUNDRED AND 00/1 ($380,500.00) DOLLARS. d Sleeman ector ned on behalf of all appraisers. Notary Public Signed and sworn before me this day l g day of July, 2015 JOELLE KRAUS NOTARY PUBLIC-STATE OF NEW YORK No. 01KR6314174 Qualified In New York County My Commission Expires November 03. 2018 Vaues as s' June 24, 20-.5 8182.1. Retal Repbcernen: Value Appraisal 'age 4 o' 32 41 East 57th Street * 29th Floor * New York, NY ' 10022 * EFTA01114644  WI\STON ART GROUP SCOPE OF WORK Purpose of Appraisal: The appraiser was asked to examine and appraise, and to prepare a RETAIL REPLACEMENT VALUE appraisal from inspection, for insurance purposes. This report is not valid for any other purposes. Category of Items: 4 loose diamonds Client: Mr. Richard Kahn Owner: Mr. Richard Kahn Ownership Interest Art Loss Registry: The question of title was not considered for this appraisal. The appraiser did not undertake a title search with the Art Loss Registry. Effective Date of Appraisal: Values expressed in this appraisal are effective as of the date of inspection, June 24, 2015. User(s) of Appraisal: This appraisal can be used and relied upon by the client and his/her designates, including the insurance company. Any other user is considered an unintended user. Assignment Considerations and Limiting Conditions: The appraiser inspected works in one location and was provided with adequate time to examine the works. GIA Certificates were provided by the client and have been scanned for use in the appendix of this report for reference. The appraiser was given adequate time to research the works. Relevant comparable information is included in the document or maintained in the work file at the offices of Winston Art Group and available upon request. Extraordinary Assumptions: An extraordinary assumption is defined as an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraisers opinions or conclusions. All documentation and images provided by the client are assumed to be accurate. Hypothetical Conditions: A hypothetical condition is defined as a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. No hypothetical conditions have been applied to this appraisal. Method of Examination: Examination consisted of a visual inspection of the items and the images to confirm the medium, style, quality, date, measurements, and condition of the works. Lighting and image quality were considered adequate. Photography: A 10 megapixel digital camera was used for photography. Photographs have been cropped and straightened for closer views. Values as of June 24, 2015 8182.1, Retal Replacement Value Apprasal Page 5 of 32 41 East 57th Street * 29th Floor * New York, NY * 10022 * EFTA01114645  WINSTON ART GROUP Method of Research: Research was conducted in the offices of Winston Art Group and with on-line auction result databases such as Artfact.com, Artnet.com, and Artprice.com. In addition, the appraiser was in contact with the appropriate retail venues. Approach to Value: The appraiser has employed the "market comparison" approach to arrive at the appraised "Retail Replacement Value". The "income" approach and the "cost" approach are not applicable to this particular appraisal and were not considered. Market Examined: The "market comparison" approach analyzes recent sales of comparable articles at major international and regional auction houses, private and public sales, shows and exhibitions, as well as prevailing prices at retail shops and galleries where the article may normally be traded. Type of Valuation: The Retail Replacement Value is defined as the amount it would cost to replace an item with one of similar and like quality purchased in the most appropriate marketplace within a limited amount of time. Type of Appraisal & USPAP Compliancy: This report is considered an unrestricted appraisal according to the rules of USPAP 2014-2015 (Uniform Standard of Professional Appraisal Practice) and follows the guidelines of USPAP for providing all of the necessary information/analysis to satisfy the report writing requirements of an unrestricted appraisal. Values as of June 24, 2015 8182.1, Retal Replacement Value Apprasal Page 6 of 32 41 East 57th Street * 29th Floor * New York, NY * 10022 * EFTA01114646  WINSTON ART Gpc-)! 1p Retail Replacement Value WAG *: 8182/153542 $115,000 LOOSE ROUND BRILLIANT DIAMOND 2.36 CARATS One loose round brilliant cut diamond 2.36 carats, measuring 8.68 x 8.73 x 5.17 mm , Color D, clarity Internally Flawless, polish Very Good, symmetry Excellent, Fluorescence none. For further details please see the attached GM certificate #13096420 FURTHER DETAILS GM certificate #13096420 (see Appendix) WAG *: 8182/153539 $95,500 LOOSE ROUND BRILLIANT DIAMOND 2.28 CARATS One loose round brilliant cut diamond 2.28 carats, measuring 8.54 x 8.61 x 5.18 mm, Color D, clarity Internally Flawless, Polish Excellent, Symmetry Excellent, Fluorescence Faint. For further details please see the attached GM certificate #13100048 FURTHER DETAILS GM certificate #13100048 (see Appendix) WAG #: 8182/153541 $87,500 LOOSE ROUND BRILLIANT DIAMOND 2.13 CARATS One loose round brilliant cut diamond 2.13 carats, measuring 8.22 x 8.33 x 5.20 mm, Color D, clarity Internally Flawless, polish Very Good, symmetry Very Good, Fluorescence none. For further details please see the attached GM certificate #12378695 FURTHER DETAILS GM certificate #12378695 (see Appendix) WAG *: 8182/153540 $82,500 LOOSE ROUND BRILLIANT DIAMOND 2.03 CARATS One loose round brilliant cut diamond 2.03 carats, measuring 8.19 x 8.31 x •* 4.99 mm, Color D, clarity Internally Flawless, polish Very Good, symmetry Very Good, Fluorescence none. For further details please see the attached GM certificate #10177902 FURTHER DETAILS GM certificate #10177902 (see Appendix) Values as of June 24, 2015 8182.1, Retai Replacement Value Appraisal Page 7 of 32 41 East 57th Street * 29th Floor * New York, NW * 1CO22 * EFTA01114647  WI\ETON ART GPO! !P Retail Replacement Value Grand Total (4 Items) $380,500 Values as of June 24, 2015 8182.1, Retai Replacement Value Appraisal Page 8 of 32 41 East 57th Street * 29th Floor * New York, NY * 1CO22 * EFTA01114648  WI\STO\ ART GROUP Appendix GIA Certificates (see corresponding WAG# noted upper left) Values as of June 24, 2015 8182.1, Retail Replacement Value Appraisal Page 9 of 32 41 East 57th Street * 29th Floor " . . York, NV 10022 * EFTA01114649  WAG #: 8182/153539 Wtw York 133101.1FLY4 SW Ma Moo Fes Ix\ II W 5,VP GIA GEM TRADE LABORATORY CIFILAE1 SL5.5 AnLAJ Ore I Cato' a 92(iLA (ZS DIAMOND GRADING REPORT January 29, 2004 11111.910 Shape and Cutting Style ....... ROUND BRILLIANT nu bloat so a writ nuatig peva Measurements 8.68 - 9 73 z 5 17mm lhaptamodeilfribletwauta d ilt Weight .. 2.36 carat rodikolonsiOsha UsIs pail watt al ad NSW* In WY aim Proportwns ill lid Wawa were hi Iwo Spolet Depth 59.4 ort SI le Wain *wow" NSra Gobite andr vf oiswew sass Olin tiwisPOI011at Girdle ............ .....THIN TO MEDIUM, FACETED cambl twMYOUMYtr SSC* fat Culet NONE 6IA ma lefaMill hwalt IbileAti veep CLARITY COLOR wssa ul NO sweaubdoo out woo Finish SCALE SCALE *Ws dad swim ion WO sow, Polish — — VERY GOOD Ibl raw INISICMCS Mew wait al sre iambi SON, MON mow Cal Symmetry — EXCELLENT 00IMif Ilrwr, an he Waits Ira Clarity Grade INTERNALLY FLAWLESS Paprkakope. dodo loo Mars Pit Mr1201.11 wd aim Mao • IOPSO7 as WSJ Color Grade *NI owl SOS ilOINS1 et r Fluorescence — NONE WS. ma quit OS sul tame Pis olop bozo wompowenwomilmod Comments: swat vid wild Is Nano won Minor details of polish are not shown. wt soak sa al dip daaomoa M ds adwooks Ng okapis St pi le plowiwskadoodewkollierlieli cwsit a ISIS OS awn. aka Ws wows wd modulo el ai Erl MEI Ma Sit A I— S --J i U X ES I J IMMUNE 00CLIMEN, MU tow KEY TO SYMBOLS a NOIIICt OA .. ,1101 IllOPILIII taS GL BAY. ...Mir CM: 1110,Nitii AP.VII a AOC it Va ues as of June 24, 2015 8182.1, Retail Replacement Value Appraisal Page 10 of 32 EFTA01114650  WAG #: 8182/153540 Nor Yid liultarol SIN fall bag I .479I GIA T GEM TRADE LABORATORY Cotib.4 stss Arsn Con I Cat*. CA ratil.iSS 1~1f:~ DIAMOND GRADING REPORT 0 I January 26, 2004 148019601 Shape and Cutting Style ROUND BRILLIANT bon b of a mon.** fr wont Measurements ............................8.54 - 8.61 x 5.18 mm ea Etna MI=1*QI 1413.141a3 YU& on( Rutin km Ito IIIn Or late is lanai ad Wad ty CIA Ga Gal Wain 4 Proportions afb $2 0011114118, flab ko tea toast 0 c ism Re kis* si Read *Soo OA Table 57 % Ike kis ism* l lb mei Re im* 5R *Art its in RI boos inns Midi Eil Girdle MEDIUM, FACETED oreckt101b* W tasks Mow* Culet SMALL 64 VA ta obi COS* invik stabbed mei COLOR now* al lit act Sim ail asst Finish CLARITY SCAL E • SCALE ohmic Rani — eta. 1tehity Polish EXCELLENT 11•10 of h-.. soup solso flan -EXCELLENT no inn* tram Mao rptia On Symmetry •••••••••••••••••••••••••.--- Nam Moo am law mei* it also Clarity Grade INTERNALLY FLAWLESS FonNo•Sotts. dra* boo MUM Top 10111 ad asc0g Iv** as mossip lid got* Color Grade o Sato la* tiolcblits WM* btu or E Fluorescence FAINT s,, iil fhd seat it Wind etouclalts dm) Oman si sass Miami* el at Comments: *at a10 AVM okst• Not OW Minor details of polish we not shown. NO smokily bidets dinuokis 1.1 vs, si Omni' q,a Os int OROS Irk wain. TM mad tool oe Mlle ag1s DSC* Motu grails int bi vs, sea et ael obvistiodoi on d* tart YIRJI Rh I T V IIIPRITTRW 10MINT, STORE SARIS KEY TO SYMBOLS IMO! IIMMAI IMIIITATIO1S Of !WC Or4.1.0101441eterarel I'l11 • le Values as of June 24, 2015 8182.1, Retail Replacement Value Appraisal Page 11 of 32 EFTA01114651  WAG #: 8182/153541 Sr. Yod, Saipan SIC Mb Walt let if tOnt4/11 GIA 1 GEM TRADE LABORATORY Casa SOMA ave I4Md, CA 1201-4Re f: If_ DIAMOND GRADING REPORT CEA REPORT 12378895 January GO, DODD p1 419901 Shape and Cutting St* ROUND BRILLIANT Ile Eta h mi a maim, Seto appal Measurements B22 • 833 x 5.20 mm a INK aliatattls dots e ti nadleollaliesler eblla9dlleaa. Weight ......_..................._._._..........._..2.13 carat alma id SS If VA to be kisser Proportions • Klit seam Se Ist km leallet INS neetin SS SO b U. SSW a Mire d boar Table 66 96 slim at a teed les aasl.LMS Mk Girdle MEDIUM TO SLIGHTLY THICK, FACETED aweeMtap SYS nes mop ftli IN er S tops Seek SSA anal Wet VERY SMALL CURRY I secOutOill mesa et St ast ISMS Its. SCALE Mae And may S. hp mat Finish tlet we beam ase Mel as erstamil was ass Symmetry .____......_..._..._..._..__...___...VERY GOOD .lamp aim arte Si OactOq Note I 0 hventakete.ISM IS elkele oma Clarity Grade INTERNALLY FLAWLESS ay as NOUS a Sled tad apse 8= I I CMor Grade . . YYY tai Nd *merit, lobo* Sof * WS, H lict Mailab lain antis S 6 des) Olivia • ippflisleISM,l Ilt MI III •• petal si fololf dm slab tot S Commenle: ti p r..,-fS sa thitniSiba IS di- Minor details of polish are not shown. n. gi--- ay axiom ism US Dahlia SI gi asses %mpg dint Wilma Hi_ asia.. Men Cowslip! dot Ot ts, i I capon ad Kann* el et e. dm Fi_ et comwer I ' IIIPORTIST DOCUlltil. PORE SliftlY KEY TO SYMBOLS r agffigift -:: - - 1101ICE YPORTRI 11S11ll11CY5 f1 !l I c: Hint, Onitlottitc. Arm Marna a Values as of June 24, 2015 8182.1, Retail Replacement Value Apprasal Page 12 of 32 EFTA01114652  WAG #: 8182/153542 Kw( Teri Muditarlell .14onst 20 ON ?at 17116161731 GIA P:_ GEM TRADE LABORATORY SICSh-14IJ lir 46.4 F DIAMOND GRADING REPORT Novemt;er 26, 2002 NMI 1484114, Shape and Cutting Style ROUND BRILLIANT **IR Id 3 WiKI tN go* Measurements 8.19 - 8.31 c 4.99 mm RN ttaltartlay MdsarNnd Os ia Nag 11011,11.0 MarlWts1Wit DM C nad Saliva to ildl 1.6207 Proportions Nil MC Anikalra afire W is SM. C at11 MOWS Depth 60.5 % In in ores sM no el It mows Table 59 % We la M iLini tro• 111eftl ed*? 7 mad Wm be WWI* nyeamir Girdle VERY THIN TO MEDIUM, FACETED CIA CIA lei fit Mil* desk voided trot Culet VERY SMALL CLARITY COLOR Melool *RP sitdWkltpl tiffs. *AU SCALE Rya MS S. Mt* Sip Finish sbil Imo %MIS Milli *IA Yet Polish VERY GOOD we **I ISM Ribilionst TOTS Symmetry VERY GOOD MOM mamnid* w her Xtatus orlen4ule SIN S. Sim pm. Clarity Grade .......... ......INTERNALLY FLAWLESS m6 sag teak ft simin 111"mkt, Color Grade es NM SYS OAS Oat t Mt lid vet Ss St do:Wits 0* Fluorescence NONE § ▪ x libultIVIssIVIVS soft old WS. ▪ LI 1 Comments: St W old/ S htdl to, pvlot a eV ENSHINVIVIVS0011•1MVP Minor details of polish aro not shown. na 4 fir anlig *WS So dist r: tali* 11tttYWdthlaMRein am* Indirl*ISMIIRSX ly MIAs Ell SOSO dK at slaty ad olio* t N • • • Rll • T 11 IA I vf X I UPORTAIT 00CUM(111. :ME WILY KEY TO SYMBOLS NOTICE IIIPORILItl CI BACK :OW Wen/ laol 004 •: Vaues as of June 24, 2015 8182.1, Retal Replacement Value Appraisal Page 13 of 32 EFTA01114653  WI\STO\ ART GROUP Market Overviews African and Oceanic Art: Works of art with dazzling familial and retail provenances were the star sellers in the 2013 season in New York and Paris. The 2013 sales included legendary private collections with large concentrations of specific regional and/or ethnic examples of superlative sculptures. These single-owner sales led the market in both the African and Oceanic art categories. The same was true for the both domestic and European markets, the latter being the stronger venue. Among the offerings of African art, power figures called nkisi from the Democratic Republic of Congo created much excitement with one reaching $1.8 million, including the buyer's premium. Oceanic art sales also saw healthy results, with a rare example of traditional architectural sculpture from the Biwat people in the Sepik River area, Papua New Guinea achieving €2,505,500, also with commission. Both were exceptional offerings. The significance of provenance was even evidenced by the recurring importance of historic base makers, such as those stylistically identifiable (and often signed) wood supports by the Japanese craftsman Kichizo Inagaki who resided in Paris. American Painting: The end of 2008 through early 2011 presented challenges to the American art market. While the top end held strong, the middle market did not sell robustly, either failing to find buyers, or attracting only opportunistic buyers. Because the banks pulled back credit, even dealers who would normally buy for inventory instead held on to cash. Galleries that held large inventory at the outset of the recession were forced to offer substantial discounts to collectors in order to maintain cash flow. The private market for American art has always had wider margins than the auction market. Private sale prices can be significantly higher than those for comparable works at auction. The works of important 19th century Hudson River School and genre paintings remain in private hands. These works have been slower to come to market in this tenuous moment, as sellers await a more robust market. Following the 2013 sale season there have been exuberant prices in all sectors of the art market. In the American art market in particular, there have been strong and steady prices at all levels, which is a departure from the last five years, which only saw strong prices at the top of the market. -Betty Krulik, Specialist, American Art Asian Works of Art: The economic development and increased wealth in Asia over the past decade has led to a viable art market consisting of a rise in Asian collectors, as well as a renewed international interest in the arts of Asian cultures. In particular, Asian contemporary art, especially Chinese contemporary, has received a massive amount of attention from overseas speculators. Notably, billionaire Wang Jialin purchased Values as of June 24, 2015 8182.1, Retal Replacement Value Apprasal Page 14 of 32 EFTA01114654  WI\STO\ ART GROUP Pablo Picasso's Claude et Polomo at Sotheby's New York November 2013 auction for $28.2 million. There has also been a plethora of international galleries who have opened businesses in Hong Kong with much thanks to spotlight from Art Basel Hong Kong, the art fair which debuted in May 2013. In 2013 Christie's and Sotheby's saw growth in their Hong Kong sales. At Sotheby's Zeng Fanzhi's The Lost Supper set the record for the most expensive piece of Chinese contemporary art ever sold at auction at $23.1 million. We have seen an especially strong market for marked porcelains from the 18th and early 19th centuries as well as an upheaval of interest in jades (only in white and green colors), and Archaic bronzes. The Indian art market continues to climb, with sales up 27 percent from September 2012. The Chinese art market is the fastest growing contemporary art market in the world. Asia Week New York 2014 saw the largest number of galleries participating since its inception, with a record-setting 47 dealers presenting museum-quality exhibitions. It should be noted that the field of Chinese paintings and calligraphy is extremely complex and scholarly opinions concerning authenticity are more complicated and nuanced than is customary for western drawing and painting. The major international auction houses reflect the lack of scholarly consensus in the category of Chinese paintings (including calligraphy) by amending their standard terms of guarantee. For example, beginning in the 1980s, all Sotheby's catalogues of Fine Chinese offered for sale in New York have included the following statement: 'The artists' names recorded in this catalogue are not to be taken as unqualified attributions to the artists named. No unqualified attributions to any artist or date are made or intended. The current scholarship in the field of Chinese paintings does not permit unqualified statements as to authorship of date of execution. . . " Christie's indicates in the fine print of their catalogues that the standard warranty does not apply "in respect of Southeast Asian Modern and Contemporary Art and Chinese Painting and Calligraphy where current scholarship does not permit the making of definitive statements." The two firms have slightly different ways of handling disputes concerning authenticity, but both statements serve as legal disclaimers which amend Sotheby's and Christie's usual terms of guarantee and limit their legal liability. More importantly, however, they are an accurate assessment of the state of the field of Chinese paintings and calligraphy. Although during the last two decades the market for Chin