EFTA00964966.pdf

From: "Fenn, Patrick" 4 To: ' " [email protected]> < CC: ' Subject: Negative Basis -- Preferred Stock Proposal Date: Tue, 16 Jul 2013 13:53:11 +0000 Attachments: Black Analysis_v4.xlsx Hi Jeffrey. Attached is a comparison of the after-tax financial outcomes for Leon of the AMH preferred equity proposal versus the status quo versus the guarantee proposal previously discussed. The analysis was prepared by Brian at the request of Marc Rowan. The analysis assumes the preferred equity would be funded by Leon out of cash that otherwise could be invested at rates of return that are 200 basis points, and alternatively 1000 basis points, higher than the return on the preferred equity of AMH. I should note that, while the preferred equity investment may be a better option for Leon based on the attached analysis even at the low rates of return, it is not for Marc and Josh. This is based on the assumption that Marc and Josh will have a life expectancy at least 10 years longer than Leon. Brian and I are available to review the model with you, although I could not do so until Thursday afternoon. Best regards IRS Circular 230 Notice Requirement: This communication is not given in the form of a covered opinion, within the meaning of Circular 230 issued by the United States Secretary of the Treasury. Thus, we are required to inform you that you cannot rely upon any tax advice contained in this communication for the purpose of avoiding United States federal tax penalties. In addition, any tax advice contained in this communication may not be used to promote, market or recommend a transaction to another party. The information contained in this e-mail message is intended only for the personal and confidential use of the recipient(s) named above. If you have received this communication in error, please notify us immediately by e-mail, and delete the original message. EFTA00964966