United States' Motion to Exclude Expert Testimony of Plaintiffs'

dollar-US dollar exchange rate during the interval between whenthe swaps were entered into and when they expired. Two of theswaps expired on 11/13/2001. The other two expired on11!28/2001.The long swaps cost BPB $202.5 million. DB owed BPB apremium of $197.5 million for the short swaps. The differencebetween the two premiums was $5 million. Pursuant to the termsof the swaps, and as described in greater detail below, DB andBPB were each obligated to pay one another fixed sums atdesignated dates. On net, these fixed payments would result inDB paying BPB AUD$4. 8 million, worth approximately $2.5 million(the exact US dollar value of AUD$4. 8 million would depend onthe exchange rate at the time of the payments) .Considering these fixed payments, BPB's total cost for theswaps was approximately $2.5 million. If the Australian dollariappreciated against the US dollar so the exchange rate was moreth~n an amount specified in the swap agreements, as measured onicettain specified dates, BPB would earn net $10 million (this isiithf excess of the amount BPB would earn on the long swaps overtht amount it would lose on the short swaps). In other words,BP' stood to quadruple its net investment.I Eleven days later, on 9/25/2001, BPB contributed the 7.7mi~lion shares of Solution 6 stock (still valued at $4 million)Iand the four swaps to BM Investments LLC, an entity that was- 4 -