EFTA01195140.pdf

RESTRUCTURING OF 2012 YEAR-END PLANNING November 26, 2013 EFTA01195140 Existing 2012 Year-End Planning Structure $5.12 million Note Black 2011 Family Trust Agreement Black 2006 Family Debra Black, Barry Cohen, John Hannan, $5.12 million Note Trust Trustees, US Trust Company of Delaware, Administrative Trustee Debra Black, Barry Cohen, BEB 2011 JMB 2011 ASB2011 VRB 2011 John Hannan, Richard crust I rust I rust I rust Ressler, Trustees $5.12 $5.12 $5.12 $5.12 million million million million Note Note cash cash V Trustee of each descendants' trust Yggdrasil Rollo Tomasi Tron Trust Ga nda If Trust Trust Trust EFTA01195141 Step One: LDB 2011 LLC Purchases Notes Issued by 2011 Trusts for Cash $5.12 MM Note from each of ASB 2011Trust and VRB 2011 Trust Black 2006 Family Trust $5.12 MM cash Sells $5.12 Receives Sells $5.12 Receives MM Note $5.12 MM Note $5.12 MM from BEB MM cash from JMB cash 2011 Trust 2011Trust Yggdrasil Trust Tron Trust EFTA01195142 Step Two: LDB 2011 LLC Distributes the Notes to the 2011 Trusts LDB 2011 LLC makes a pro rota distribution of property to its Members. Each Trust gets its cancelled $5.12 million note. Two members get cash to equalize value. Cancelled Cancelled Cancelled Cancelled $5.12 MM $5.12 MM $5.12 MM $5.12 MM Note Note Note and cash Note and cash Black 2011 Family Trust Agreement BEB 2011 Debra Black, Barry Cohen, John Hannan, Rollo Tomasi Tron Trust Gandalf Trust Trustees, US Trust Company of Delaware, Trust Trust Administrative Trustee EFTA01195143 Result: Each of the Descendants' Trusts has Cash to Invest Trustee of each descendants' trust liciiiniriii'gill Rollo Tomasi Trust $5.12 million (plus $5.12 million (plus $5.12 million (plus interest) in cash interest) in cash interest) in cash EFTA01195144  Existing Note Structure for Ben and Josh's Trusts Black 2011Family Trust Agreement Debra Black, Barry Cohen, John Hannan, Trustees, US Trust Company of Delaware, Administrative Trustee BEB 2011 Trust JMB 2011 Trust I $3,250,008 $5,897,726 million Note million Note Trustee, U.S. Trustee, U.S. Trust Company Trust Company Benjamin Black 2010 Trust Joshua Max Black 2011 Trust of Delaware, of Delaware, Administrative Administrative Trustee Trustee EFTA01195145 Step One: BEB 2011 Trust and JMB 2011 Trust Borrow from LDB 2011 LLC Borrows $3,250,008 plus Borrows $5,897,726 plus interest owed to Benjamin Lends cash Lends cash interest owed to Joshua Max Black 2010 Trust and gives a Black 2011Trust and gives a Note Note BEB 2011 Trust JMB 2011 Trust EFTA01195146 Step Two: BEB 2011 Trust and JMB 2011 Trust Repay Notes to Ben and Josh's Trusts Note payable Note payable BEB 2011 Trust JMB 2011 Trust LDB 2011 LLC Repays $3,250,008 Repays $5,897,726 Note plus interest Note plus interest Benjamin Black Joshua Max Black 2010 Trust 2011 Trust EFTA01195147 Result: Leon is Lender and Borrower for Federal Income Tax Purposes Ben and Josh's Trusts Have Cash to Invest Note payable Note payable BEB 2011 Trust JMB 2011 Trust Taxed to Leon Taxed to Leon Taxed to Leon Benjamin Black 2010 Joshua Max Black Trust 2011 Trust Cash to invest Cash to invest EFTA01195148