From: Heather Gray To: "jeffrey E." <[email protected]> Subject: Re: For our call on Monday Date: Sun, 02 Nov 2014 14:41:13 +0000 Sony, Jeffrey. Ada drafted this with me after a call we had with Alan on Friday. Eileen and Larry also reviewed and added input. Going forward, I'll start with you. Sent from my iPad On Nov 2, 2014, at 9:21 AM, "jeffrey E." <[email protected]> wrote: in the future before you write to the entire group I wouudl suggest you send this to me. many of these things are misteroreted and not fully thought through. On Sun, Nov 2, 2014 at 9:05 AM, Heather Gray < > wrote: Jeffrey, As you know, Rich J. and I met with Leon last week to discuss which works of art Leon would put in the "new" Narrows. Leon raised two points at the meeting which may alter the focus of the art planning. First, Leon said he wants to keep the flexibility to withdraw works of art from Narrows without the consent of the Class B Managers. His said that if his non-art assets increase in value so that the kids are well provided for without the art, he may want to create a Black Family Museum with works in Narrows and he doesn't want to have to obtain consent of the Class B Managers regarding which pieces he could withdraw from the LLC for the museum. The draft LLC agreement for the new Narrows provides that a member can only withdraw with the unanimous consent of the Class B Managing Members and they alone decide what property gets distributed to the withdrawing member. Second, Leon questioned whether he should be completely paying off his Note to the APO1 Trust. He thinks making the annual interest payments on the Note is a great way for him to make tax-free gifts to the kids and he did not seem concerned about the income tax that the trust would have to pay at his death if the note was still outstanding (which would be close to 34%). The tax consequences of not paying off the note are only on the income tax side - either income tax will be due a