EFTA02672197
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File Details
- File Name
- EFTA02672197.pdf
- Data Set
- DS 11
- Type
- Category
- financial
- Size
- 632.8 KB
- Pages
- 7
Document Text
SPLIT-DOLLAR PROPOSAL of McDermott Will & Emery LLP November 18, 2013 EFTA_R1_01945046 EFTA02672197 Step One: Distribution of BFP Interests (or a cash Loan) to 2011 Trusts The APO1 Trust distributes (decants) sufficient assets to each of the BEB 2011 Trust, the JMB 2011 Trust, the ASB 2011 Trust and the VRB 2011 Trust (the "2011 Trusts") under the Black 2011 Family Trust Agreement to enable it to purchase 25% of the stock of AIF IV Management Inc. ("AIF IV") from Leon. Distribution of $12.2 million- 25% to each trust Trustees: Barry Cohen, John Hannan, Richard Ressler, and after Leon's death, Debra Black. BEB 2011 Trust JMB 2011 Trust ASB 2011 Trust VRB 2011 Trust Trustees: Debra Black, Barry Cohen, John Hannan, Non-Administrative Trustees; US Trust Company of Delaware, Administrative Trustee EFTA_R1_01945047 EFTA02672198 Stet) Two: Leon Sells AIF IV Management Inc. to 2011 Trusts For tax reasons, Debra resigns as Trustee from the 2011 Trusts. Each of the the 2011 Trusts purchases from Leon 25% of the stock of AIF IV, valued using CSV of the policies ($24,752,474*) less the Note payable ($7,347,076 plus interest) to Black Family Partners, L.P. ("BFP") and applying a fractional interest discount (e.g. 30%). No value is attributed to AIF IV's limited partner interest in BFP. BEB 2011 Trust-25% 1MB 2011 Trust-25% MB 2011 Trust-25% VRB 2011 Trust-25% Debra Resigns as Trustee. Trustees: Barry Cohen, John Hannan, Non-Administrative