EFTA00617015.pdf

Estate Planning Overview Presented to: Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Apollo Global Management $25/share June 9, 2014 Nancy A. Kistner, CFP® Aaron Shamshoian, CFP® Managing Director Vice President Wealth Strategies Advisor Associate Wealth Strategies Advisor (212) 852-3548 (212) 852-2315 U.S. Trust, Bank of America Private Wealth Management 114 West 47th Street New York, New York 10036 EFTA00617015 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Statement of Disclosure Investment product such as sinks. heeds and mutual funds: Are Not FDIC Insured May Lose Value Are Not Sank Guaranteed IMPORTANT: TMMeigamma* is for disarms'. 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We Maw you toconsult Mb an independent tat Minnonmar poniadar 04% Cif IIIIIISUOM0. Imvtnml product and senior% may be ensidrhle 'heath a alationstop mangsd by US. Trust. Bank of America Pram Wealth Manammag or througha relationship Menill Lynch. time. Rover & Smith lawapwaust Certain U.S. Trutt amodateure eaditnof represamalies with Sherrill Lsuch. Pim.. Fenner Dr Smith Inimpaged and my assist pea with imminent peodurts and seniors plaided throve, Merrill Lmeh. Pierre_ Fenner Sr Smith Inowporged dote sub:LI:hada of Bank of ATIMII9Coiponitiew IlimV\VI.C.S.Tnut dm tax mange 'marmots held at Wain lamb. Pines. Fuse Di Smith Inceopeaml and sou mutt direct pm representative to lag salon on iM Mire gimes Individual ilItIfilakagyori Mat nal Mask ia you' ownd ported.> ham invested ina MlitlOtt wha may differ from this report In Minim thew materiels may Mous WI1011ielmtna al an Matthaei. owls GAMSel polite to. which nodal US Tam ma Merrill Limb. Pima rams la Smith Iniorpoiated gem as an advisor. Merrill Lynch. Pierce. Seenerit Smith Incorporatedire registered brokerecoler. member El-SRAand XIPC. and a Motif:owned robridiary of Punk of America Corporation. Merrill Lynch. Pima. !Mawr& Smith Incorporated dogmas mamma tat or Mal advisor. Several products such as mutual funds iariable annuities and other alternative inteamenti that maybe marks:ad ammingelment alternatim fa you are only toe sold "hew Procaled MaCromPanied by a meant prospeam and/or affair., merrewanda. The prapraus aratfor *fining memccanda prink mem cornpkite information on the prods& including diaries mews and special imminent and should he read carefully before inverting. The fallowing report la for fiduciary me only. The essoam piesenting this report roma is ming within his Of be, fidurlarycepidty with U.S. Twist. not withal boar her licamed meaty. If say. with Mail Lynch Parch F1114.1 Smith Incorpsetacd. 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This report attempts to measure • panlogri mammal itammenta by ravaging the peeforman of allweurllks IntheWm The index may bee mead tool. istat is m many reptmentathe of past performanceof I particular fund ca murky. and is ax repiescaualvtof any Mum Fedora...meeting furthealer GRWSitIVIIL Acigumplicas.tonnaning in: Minna tax rim Alt illastrothre papaws only and not nuoulal to meat economic. parlorniama Any mat Of patfoltheasniam andloi mums shown <a used io this repon matt traerthal hi mina ow gamma Marble Milh at an inimical pendant bantam may nee 111WIS dirtily loan India. 11th reports n preliminary analytic and not IlKILTS011iy the RKIICJi fulfilment of mommeniations Cm materiel is for ihistrdim and alwetrand purposes and sit been prepared add" to mid you in the mime of pun imminent alternmwer Sou should <emelt appropnatelepl =Atones alums and then moat your representative n ahe appropide near steps Shia report dam not constitute legal. geountingarespermitnentadviee. If you theme to follow an insettment *vacant Meth intheMiming atomic) rcpwitioning of yaw ponfolio may mull in tax consequebe es Spathe contents of iha tementstian geoad not beaded 'wassailing oonsulting athlrOprote kgI are/ or tax advisors MI lax calculations herein are merely estimatteand strodel not be relied upon for Mailed tax planning purees MI income taxes art based on NM tat rats add not take all tbedetailsofa stater income tat laws into mount Thin anabstia Is bawd on the calendar year. All 453S and liabilities are lued ai the end af mth mar. Deaths are alio *seamed to mum at the end ofeactryter. For the finst mor of the anemia**. annual TCIU1115 are prorated on a daily halts US Trost. Bank of Marta Prime Wealth Management operates thrones Bead of America and other subsidiaries of Bank of Mania eathoration NM °fanatic, . • Member FDIC. C. son Bank aliments Porporgion. All rights Mewed Page 2 of 26 EFTA00617016 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Assumptions Exemption Amounts: Leon Debra Prior Taxable Gifts 5.340,000 $ 5,120,000 Available Unified Credit Amount 220,000 Prior GST Exemption Allocation 3.500,000 4,173.596 Available GST Exemption Amount 1240,000 1,166.404 Federal Estate Tax Year Exclusion & GST Exemption Amounts Federal Estate Tax Highest Federal Estate Highest New York Estate Credit Tax Rate Tax Rate 2014 5.340,000 $ 2,081,800 40% 16% Notes and Assumptions: • Leon and Debra are presumed to die in 2014 with Leon immediately predeceasing Debra. • Debra's Will and Revocable Trust provisions are presumed to mirror those in Leon's documents. • Administration expenses are assumed to be $5 million in Leon's estate and are assumed to be 2% of Debra's probate estate. • Valuation discounts totaling 30% are applied to the value of Black Family Partners. interests, which are valued assuming a mean value of AGM stock on April 16, 2014 of $25 per share. • The value of each GRAT is "frozen- on Leon's presumed date of death. Because the GRATs had not terminated, the annuity amounts still payable from the GRATs and any principal value above this amount will be included in Leon's estate (the "Includible Portion"). Because the annuity payments to be received by his estate ("GRAT Annuity Receivables") exceed the date of death value of the GRATs, the Includible Portion will pass entirely to the Marital Trust in satisfaction of the GRAT Annuity Receivables. • For the $500,000 per year lifetime annuity calculations, Judy Black was born on September 27, 1948 (with a life expectancy of 20 years), and Jon Ressler is assumed to be age 61 (with a life expectancy of 19 years). • 100% charitable deduction is assumed for fractional interests in art pledged to museums. Page 3 of 26 EFTA00617017 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Inventory of Family Assets as of April 16, 2014 ettiona nets Liquid Assets • Investment Accounts U.S. Trust Cash ACCOall JPIA Casalliatkelable sectrees Leon Debra Tolal $ 25.587.000 $ 5.562.000 S 31.149.000 8.558.000 6.927.000 15.483.000 Investments AI-hetd through &blies 1.500.000.000 1.500.000.000 Othei Att. Rare Books & Bronzes 402.296.000 402.295.000 • Inc/Able Portion of GRATs 1.465.672.000 - 1.465.672.000 Black Featly Partners LP (6.00 17%)" - DISCOUNT 30% 152.733.000 - 152.733.000 AP Alternative Assets 21.656.000 - 21.655.000 Apollo Related investments 5.247.000 5.247.000 Invesiment Partnetsbips - Various 1.545.000 1.545.000 AVi011etta LUC: (LOB 50.1%. ORB 49.9%) 11.135.000 11.090.030 22.225.000 BJAV Marine Md. (Scar ke) 22.121.000 22.121.000 Real Estate- Personal Jointly Owned Residences 38.200.000 38.200.000 76.400.000 NatterWs Road Parcel 10.000.000 10.000.000 750 Meadow Lane 16.630.000 - 16.600.000 Tangible Personal Property Household P,operly 11.562.000 11.562,000 23.124.000 Jewelry 46468.030 46.468.000 Automobiles 419.003 419.000 Total Personal Assets $ 3683,327.000 $ 129.809.000 $ 3,813,130.000 Loan payable-Bank of America (0.1) 1470.030.000) (470.000.000) Loan payable-Bank of America (Ainoretta Hegel (11.135.000) (11.030.030) (22.225.000) Loan payable-Bank of America (SJA V Menne) (17.897.000) (17.897.000) Noce payable - to APO' Twist'•' (1.694.738.000) • 0.694.738.000) Note payable • Black Family Partners LP (42.000.000) • 142 003.0001 Total Personal Liabilities $ (2.235.770.000) $ (11.090,000) S (2,246.860.000) Total Net Estate Assets $ 1,447,557.000 $ 118719,0001 s 1,566,276.000 APO' Agreement APO2 Declaration Black 2011 Family Trusts (LDS 2011 LLC) 1999 Life Insurance Trust 12 (second-to-die death benefit) 1992 Life Insurance Trust (second-to-die death benefit) Mallory Trust Black 1997 GST Exempt Trust S 1.976.541.000 599.197.000 286.263.000 100.000.000 20.000.000 4.124.000 3.007 000 Total Trust Assets S 2,969,132.000 Total Family Assets ' GRAT Arad). Receivables. " AGM mean value $26 share. '" Note provxles kx a nattily dated August 14. 2022 and accrued annual interest S 1.63% per annum C/1 the urpad primped balance. S 0.535.408.000 Page 4 of 26 EFTA00617018 Leon D. and Debra R. Black Overview of Estate Plan as of Apti116, 2014 Estate Plow Chart Upon Leon's Death Executers: Debra Black. Deny Cohen and FiChard Resets( Leon Black Gross Estate 2.179.455.000 38.200.000 1.485.672.300 Probate Properly Nan PrOOM• Property Includible Portion of GRATs Gross Estate $ 3.663.127.030 Last Will and Testament Probate Administration Expenses Charitable Pledges Liabilities Due Upon Ltion's Death Residuary Assets Nate payable to APO, Trust Nel Residue to Revocable Trust S 3.645.127.000 (5.000.000) in.aeo.coo (541.032,000) $ 3.092.235.030 (1.694.736.030) $ 1.374.497.000 Trustees: Debra Black Berri Cohen end WNW Ross L. B. Revocable Trust Agreement Residuary Assets: Tangibles to Debra sequestiannuoy (Melanie IS Judy) NV Estate Tax Federal Estate Tax Balance of Revocable Trust Residue Note payable • to AP01 Trust Net to Marital Trust 3.069.235.000 (11.981.030 (11220J:00) (2.652.222) (7122.6671 $ 3.038269.111 (1.6fM.738.000) S 1 1121 111 I 2 of Joint Residences Total 38200.030 $ 3820.000 Charitable Pledges Dartmouth Pledge Ail Pledged to Museums Total *9.129.030 10.731.030 29.660.000 Tangibles Outright Bequest to Debra Tangible Properly Total $ 11.981.000 11.981.030 Cash Bequest Marital Trusts GST Exempt Marital Trust Nan-Exempt Marital Trust: Art 750 Meadow Lane Includible Portion of GRATs Balance of Revocable Trust Residue Total Marital Trust Assets Nate payable- to AP01 Trust Net Marital Trust Assets $ 1A21.584.1:00 16.600.000 1.465.672.000 130 383 111 3438.059.111 1.694.73100 1.341.321.111 'Bred on Apnl 2014 Sedan 7520 rate of 2.2k, and a 20year rile expectancy. Bequest to Melanie Spinelli* Total Cash Legacies 3.003030 301:0030 Lifetime Annuity for Judy Black Moult). Total Annuity 8.020.000 8.020.000 Page 5 of 26 EFTA00617019 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Debra's Death Trustees of Menial Trusts igen Debra's Barry Cohen and Richard Ressler 1997 DST Exempt Trust Trust Assets OST Exempt Marital Trust Debra's OST Amount $ 3.007.000 1610.000 1.166.104 Lifetime Annuity for Jon Ressler Debra Black Marital Trusts (Under L. B. Revocable Trust) Net Value of Marital Trusts' 1341521.111 Total 1997 OST Exempt Trust 6.013.104 Annuity 7 697.030 Annuity for Jon Ressler' (7.697.000) 7 697.0)0 OST Exempt Marital Trust to 97 Exempt Tr. (1 840 000) Charitable Pledges Debra's OST Amount to 97 Exempt Tr. (5166401) Chants/No Pledges (Art) to Museums (2%533.600) An Pledged to Museums 24533.600 >1 750 Meadow Lane to Heritage Trust (16.60000) NY Estate Tax '206'591.0131 Federal Estate Tax M34 949 357o $ 24.533 6C0 Markel Trust Residue 5 647.945727 An Selected for Heritage Trust 1619.496.727r Residue Passes to Foundation 28.447.000 Debra Black Gross Estate Probate Property' $ 168 903 033 Gross Probate Estate 168.903 S OCO Leon Black F frilly Foundation Marital Trust Residue Debra's Revocable Trust Residue Total Added Upon Debra's Death: 28447.000 8447000 'See nventOry of Dada Taxable Estate (page 8). -Based on Apo, 2011Secticn 7520 rate 012.2% and a 19 year life eMedanCy. Hedtage Inset 1 Parcel Meadow Lane $ 16.701000 750 Park Ave 1.003.000 Arizona Residence 2.001000 750 Meadow Lane 16.600.000 Art to Legacy Trusts 619.496.727 Total Added Upon Debra's Death: 6 655.796.727 <— Last Will and Testament Gross Probate Estate Administration Expenses (2%) Residuary Estate Passes to Revocable Trust t 66.900000 13378 0001 $ 165 522 OW Revocable rust Agreement of Debra Black Residuary Estate — Residences to Heritage Trust Tangibles 8 Jewelry to Children NY Estate Tax Federal Estate Tax Revocable Trust Residue Passes to Foundation $ 165.522 ODD 119.703.0GO/ M6.654 491) 125.493789) M3 6737t 71 Tangibles Outright to Children in Equal Shares Tangible Property 5 66 654 494 I Page 6 of 26 EFTA00617020 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations S 3.683.327,000 Leon's Gross Estate Debra's Gross Estate $ 3,204,959,111 Less Deductions: Less Deductions: Liabilities (2.235.770.000) Liabilities (1.694,738,000) Administration Expenses (5,000,000) Administration Expenses (3,378,000) Charitable Deduction (29,860,000) Charitable Deduction (52,980,600) Marital Deduction (1,391,538,111) Marital Deduction Estimated New York Estate Tax (2,852,222) Estimated New York Estate Tax (232,084,802) Plus: Adjusted Taxable Gilts 5,340,000 Plus: Adjusted Taxable Gilts 5,120,000 Taxable Estate $ 23,646,667 Taxable Estate $ 1,226,897,709 Tentative Federal Estate Tax 9,404,487 Tentative Federal Estate Tax 490,704,884 Less Credits/Payments: Less Credits/Payments: I Unified Credit (2.081.800) Unified Credit (2.081.800) Gill Taxes Paid Gal Taxes Paid Estimated Federal Estate Tax $ 7.322,667 Estimated Federal Estate Tax $ 488.623,084 Estimated New York Estate Tax 2.852,222 Estimated New York Estate Tax S 232.084.802 Total Estate Tax Due Upon Leon's Death Total Estate Tax Due Upon 10.174,889 Debra's Death S 720,707,886 Combined Federal Estate Tax Combined NY Estate Tax j S 495.945,750 234.937,024 Total Combined Federal & NY Estate Tait 730.882.774 Page 7 ol 26 EFTA00617021 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Inventory of Debra's Taxable Estate Following Leon's Death Marital Trust Assets: Art $ 1,421,564,000 750 Meadow Lane 16,600,000 Includible Portion of GRATs 1,465,672,000 Black Family Partners LP (8.0%) - DISCOUNT 30% 101,936,111 AP Alternative Assets 21,655,000 Apollo Related Investments 5,247,000 Investment Partnerships - Various 1,545,000 Liquid assets in GST Ex Marital Trust 1.840.000 Note payable - to APO1 Trust (1.694.738.000) Total Marital Trust Assets: $ 1,341,321,111 Debra's Probate Assets: U.S. Trust Cash Account $ 5,562,000 JPM Cash/Marketable Securities 6,927,000 Residences (Formerly Joint) 76,400,000 Narrows Road Parcel 10,000,000 Household Property 23,124,000 Jewelry 46,468,000 Automobiles 419,000 Net Proceeds of sale of Avionetta (49.9%) Total of Debra's Probate Assets: $ 168,900,000 Page 8 of 26 EFTA00617022 Leon D. and Debra R. Black Overview of Estate Plan Cash Nirds en Leon's Death Cash Needed at Leon's Death for Bequests, Debts. Expenses a Taxes GS I Beque:t $ 1.840.000 Alm eisuation Eaper,sea 5.000.000 NY Estate Tax 2.852.222 Fed Estate Tax 7.322.667 Darkest°lh Pledge 19.129.000 Be4uesl lo Melanie 3.000.000 Aaluly lot Judy 8.020.000 Loan payable-Bank ol Antic, (An) 470.000.000 Loan payable-Bank ol Antic, (BJAV Marine) 17.897.000 Loan payable-Bank ol America (Aviccella Wigs) 11.135.000 Nble payable Black Family Partners LP 42.000 000 Total Cash Needed S se8.195,889 I Allocation of Available Cash s Trust Cash Account LIST Baguet] AckaMistrahon Expenses NY Estill! Tax Fed Estate Tax Annuty lot Judy $ 25.587.000 1.840.000 5.000.000 2.852.222 7.322.667 8.020000 Balance $ 552.111 JPIA Cashillatketable Securities 8456,000 &quasi lo Malaria 3.000.000 Batance 5.556.000 Total Renudring Avalatie Cash $ 8.108.111 Allocation of Cash to be Raised Art S I .902.295.000 Sotl lo Pay. Bank of Amerce Can (An) 1070.000.0001 470.000.000 $ 1.032.295.00D BJAV Manne-Yecht 6 22.121.000 22.121.000 Sold lo pay: Bank of Amerce Can il iftSIZSIDDI $ 4.224.000 knonetta-rUrplana (Leon's sal%) $ 11.135.000 11.135.000 Sotl lo pay: Bark of Ametica loan II 1 135 0001 Black FaailyPanners. LP Interests (8%) $ 152.733.000 Redeemed to pay: Note lo Black Family Panners. LP. (x2.000.000) 02.000000 Sold lo pay: Danmculh Pledge (8 798 8891 8.796.889 $ 101.938.111 Dartmouth Pledge VS Trust Cash ACCOall balance $ 552.111 JPM Account balance 5.558.000 Yacht sale proceeds-balance 4224.000 BFP sale proceeds 8.798.889 $ 19.129.000 Total Cash Raised Total Cash Available and Raised $554,062,889 $ 688,195,8891 Page 9 0128 EFTA00617023 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Debra's Death • Debra's Estate Cash Needed in Debra's Estate for Bequests, Debts, Expenses & Taxes Administration Expenses NY Estate Tax Fed Estate Tax 3.378.000 25.493.789 53.673.717 Total Cash Needed I $ 82,545,506 Allocation of Available Cash US Trust Cash Account 5,562.000 JPM Cash/Marketable Securities 6,927.000 Avionetta Sale Proceeds Total Available Cash $ 12,489.000 Administration Expenses (3.378.000) Total Remaining Available Cash 9,111,000 Allocation of Cash to be Raised Residences Sold to Pay Estate Tax 760 Park Avenue $ 20.000.000 All Narrows Rd. Parcels 30.000.000 1 Parcel Meadow Lane 16.700.000 Total Residence Proceeds $ 66.700,000 Jewelry Sold to Pay Estate Tax Total Jewelry in Estate $ 46.468,000 Sold To pay NY Estate Tax (3.356.506) 3,356.506 Balance of Jewelry: $ 43.111.494 Federal Estate Tax Residence sale proceeds $ 53.673.717 53,673.717 New York Estate Tax Residence sale proceeds $ 13.026.283 Jewelry sale proceeds 3.356.506 Remaining available cash 9.111.000 $ 25.493.789 13.026.283 Total Cash Raised $ 70,056,506 Total Cash Available and Raised $ 82,545,506 Page 10 of 26 EFTA00617024 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Debra's Death - Marital Trust Cash Needed In Marital Trust on Debra's Death for Bequest, Debts, Expenses & Taxes Note Payable- APOI Trust Annuity For Jon Bequest of Debra's GST Amount NY Estate Tax Fed Estate Tax $ 1,694.738.000 7.697.000 1.166.404 206.591.013 434.949.367 Total Cash Needed I S 2,345,141,784 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust S 1.567.608.111 Distributed BFP (Includible Portion of GRATs) (1.465.672.000) Distributed BFP (balance of 8% from LDB) (101.936.111) Balance of BFP 5 Note Payable APO1 Trust BFP Interests Distributed $ 1,567.608.111 Art Sale Proceeds $ 127.129.889 1,694.738.000 Art Sold and Distributed Art in Marital Trust 5 1.421.564.000 Distributed To Museums (24.533.600) Sold To pay Note Payable to APOI Trust (127.129.889) Sold To pay Jon's Annuity (7.697.000) Sold To pay Debra's GST bequest (1.166.404) Sold To pay tax (641.540.380) Balance of Art 5 619.496.727 Annuity for Jon Art sale proceeds 5 7.697.000 7.697.000 Bequest of GST Amount Art sale proceeds 5 1.166.404 1.166.404 New York Estate Tax Art sale proceeds 5 206.591.013 206.591.013 Federal Estate Tax Art sale proceeds 434.949.367 5 434.949.367 434.949.367 Total Cash Raised S 2,345,141,784 Page 11 of 26 EFTA00617025 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust new Chart- Mowing Debra% Death Musters: Barry Cohan. Richard Ressler. John Hannan. Benarnn Mack. uostua Beck Alexanda Maw and iictorta Black Tunes: Barry Cohn Richard Ressler and John Hannan Artwork 154,874.182 Cash Distributions Legacy Trust tee Bertame a Mack Heritage Trust Trust Assels littel of Lobililiesl Added Upon Debra's Death: 750 Merida./ Law °dads Residences Art Sabered ter Legacy TMSIS Total $ 16.600.000 19700.000 619,496.727 655.796,727 Single "Pot Trust A single Heritage Trust is created Ion Debra and Lewes descerdanls and tow separate Legacy Trusts are created (one for each of Leon's children). The Trustees may dstnbute income and principal to Debra and Leon's descendants. subjecl to the aistributen guidelines twined in the Trust Agreemml. Alter Leon's death. an and tenet-lees held in Ihe Menage Trust designaled kw a pancular child will be disfibuied to such Childs Legacy TrUSI. Mier Dada's dealh. similarydesignaled darns in the Marital Trust wil be selected by the Trustees lo be held in a dads Legacy Trust. After Leon's death the Trustees shall Striate Me bellowing amounts lo each chills Legacy Trusl: 1 $10 mewl when the child wens age 30 (request il is used to acquire a principal residence). 2 $50 initial when the child wens age 35. 3 $100 mean Wiwi Me chld altains age 40. g a child dies under age 40. the above amens veil be dviced silo shares bur the child: descendanls and each share MI be held in a separate Legacy Trust ler each such descended. Separate Legacy Trusts Owing the beneficiary's 'Nome: 1 The Trustees may pay Ile income and principal to the beneficiary suMecl to disubmangudelines (Ihe descendant's financial acumen. marital &coed. meteor clams. pendng litigation. or substance abuse). 2 Trustees are aullwized lo invest in a business verture proposed by the beneficiary. so long as it is a career COMMarnent. 3 Aker age 35. the beneficiary is a cotustee of hither Legacy Trusl. Al the benidicarys death: A chid may by Will appoint tie remairing Trust properly among Leon's descendants and up to SI 0 minor, in tavor of a spouse. Any properly not appcined will be chided in equal threes for the beneficiary's chtdren. Legacy Trust libeJCithua M. Black Artwork Cash Dierbuten S $ 151874.1 Legacy Trust EbroAlexander S. Black Artwork 154.874.182 Cash Oistdbulice $ Legacy TniSI the Vicloria R. Mack Page 12 of 26 EFTA00617026 Leon D. and Debra R. Black Overview of Estate Plan APO( Agreement Flow Chan - Following Debra's Death Trustees: Barry Cohen. Thchard Ressler and John Haman Trustees. Barry Cohen. Fochard Ressler and John Kansan Alter age 35. each Beneficiary Is a einnatee of twit Separate Trust APO1 Agreement Trust Assets Repayment of Note Payable Less 34% Capital Gains Tax (Combined Federal. NY 8 NO Surtax) Total 28 i 803.000 1.694.738.000 (576.210.920) $ 1,400,330.080 Single Discretionary Trust A single Discretionary Trust is created for Debra and Leon's descendants until the Trustees decide to create and fund Separate Trusts for descendants (each called a 'Beneficiary' of higher Separate Trust). The Trustees may distribute income and principal to Debra and Leon's descendants. subject to the distribution guidelines outlined the Trust Agreement. Instead of makig distributions to a descendant. the Trustees may distribute to hisiher Separate Trust. Discretionary Trust terminates 21 years after the death of the survivor of Leon's children and Debra. The romaine's) trust property will be distributed to Leon's descendants or if none. to Leon's estate. Separate Trusts During the Beneficiary's lifetime, the Trustees may pay the income and principal to the Beneficiary after considering the Beneficiary's circumstances (financial acumen. marital discord. creditor claims. pending litigation. substance abuse. etc.). Each Separate Trust terminates on the Beneficiary's death and is distributed to the Beneficiary's descendants as the Beneficiary appoints by Will. Unappointed property will be divided for the Beneficiary's descendants and held in Separate Trusts subject to the same trust terms and Trust Agreement. Separate Trust Mat Benjamin E. Black 350.082.520 Separate Trus libt Joshua M. Black 350.082.520 Separate Trust Marra Alexander S. Black 350.082.520 Separate Trust f.t.'o Victoria R. Black S 350.082.520 Page 13 of 26 EFTA00617027 Leon D. and Debra R. Black Overview of Estate Plan AP02 Declaration Flow Chart - Following Debra's Death Trustees: Barry Cohen. Retard Ressler and John Raman Trustees. Barry Cohen. Retard Resskt and John Hannan Alter age 35. each Benelldary is a co-Trustee or hslher Separate Trial APO2 Declaration Trust Assets (Net of Liabilities) $ 599.197.000 Added Upon Debra's Death: Total 599 197 000 Single Discretionary Trust A single Discretionary Trust is created for Debra and Leon's descendants until the Trustees decide to create and fund Separate Trusts for descendants (each called a 'Beneficiary' of higher Separate Trust). The Trustees may &stribute income and principal to Debra and Leon's descendants. subject to the distribution guidelines outlined Si the Trust Agreement. Instead of makflg distributions to a descendant. the Trustees may distribute to hisiher Separate Trust. Discretionary Trust terminates 21 years after the death of the survivor of Leon's children and Debra. The remaining trust property will be distributed to Leon's descendants or if none. to Leon's estate. Separate Trusts During the Beneficiary's lifetime, the Trustees may pay the income and principal to the Beneficiary after considering the Beneficiary's circumstances (financial acumen. marital discord. creditor claims. pending litigation. substance abuse. etc.). Each Separate Trust terminates on the Beneficiary's death and is distributed to the Beneficiary's descendants as the Beneficiary appoints by Will. Unappointed property will be divided for the Beneficiary's descendants and held in Separate Trusts subject to the same trust terms and Trust Agreement. Separate Trust fitvb Benjamin E. Black Separate Trust fibro Alexander S. Black Separate Trust fibt Victoria R. Black Page 14 of 26 EFTA00617028 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Black 2011 Family Trust Flow Chart - Following Debra's Death Trustees: Barry Cohen and John Hannan Administrative Trustee: U.S. Trust Company of Delaware 2011 Trust 1434) Benjamin E. Black $ 66.565.750 Black 2011 Family Trust LDB 2011 LLC $ 266.263.000 I Property is held in four separate Trusts: one for each child: 1 Prior to age 25. Trustees have discretion to pay the child income. 2 After age 25. child receives all trust income quarterly. 3 Trustees have broad discretion to distribute principal to the child. 4 Each child's trust terminates upon the child's death: II Leon and Debra are deceased and child was over age 35. child may appoint he principal of hisrher trust to Leon's issue. Unappointed assets will pass to child's issue. subject to lifetime trusts. 2011 Trust Itro Joshua M. Black 2011 Trust la,o Alexander S. Black S 66.565.750 2011 Trust lite° Victoria R. Black $ 66.565.750 Page 15 of 26 EFTA00617029 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Leon D. Black 1999 Life Insurance Trust #2 Flow Chart - Following Debra's Death Trustees: Barry Cohen. John Hannan and Richard Ressler 1999 Trust f/blo Benjamin E. Black $ 25.000.000 1999 Life Insurance Trust in Combined Death Benefit: S 100.000.000 Upon the death of the survivor of Leon and Debra. Trust principal is divided into separate trusts: one for each of Leon's children. 1 Prior to age 21. Trustees have discretion to pay the child income. 2 After age 21. child receives all trust income quarterly. 3 The Trustees have broad discretion to pay principal to the child. 4 Each child's trust terminates 21 years after the death of the survivor of: - Leon. Debra and their issue living on 9/13/99. 5 Child has a testamentary power to appoint the trust to his/her issue. - Assets not appointed will pass to the child's issue. 1999 Trust 1/bit Joshua M. Black $ 25.000.000 1999 Trust f/b/o Alexander S. Black $ 25.000.000 1999 Trust f/t3/o Victoria R. Black $ 25.000.000 Page 16 of 26 EFTA00617030 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Debra and Leon D. Black Life Insurance Trust Flow Chart - Following Debra's Death Trustee: Barry Cohen 1992 Trust kW° Benjamin E. Black $ 5,000.000 1992 Life Insurance Trust Death Benefit: $ 20.000.063 Upon the death of the survivor of Debra and Leon. Trust is divided into separate trusts: one for each of Leon's children. 1 Prior to age 25. Trustee has discretion to pay the child income. 2 Alter age 25. the child receives all trust income quarterly. 3 Trustee has broad discretion to pay principal to the child. 4 Trustee is authorized (il deemed advisable) to distrbute principal: - 1/4th at age 30; - another 1/3rd at age 35: - another 1/2 at age 40: and - the balance of the child's trust principal at age 45. II the child dies prior to age 45. assets will pass to the child's issue. subject to Iru 1 until age 45. 1992 Trust bb/o Joshua M. Black $ 5.000.000 1992 Trust tiblo Alexander S. Black $ 5.000.000 1992 Trust lihro Victoria R. Black $ 5.000.000 Page 17 of 26 EFTA00617031 Leon D. and Debra R. Black Overview of Estate Plan Black Family 1997 CST-Exempt Trust Flow Chart - Following Debra's Death Trustees: Barry Cohen. John Hannan and Richard Ressler Separate Trust Irbro Benjamin E. Black 1.503.351 Black Family 1997 GST-Exempt Trust Trust Assets (Net of 3.007.000 Added won Debras death GST Marital Trust .640.000 Debra's GST Bequest 1.166.404 Total 6,013,404 Upon the death of the survivor of Leon and Debra. trust ptinapal is divided lito separate trusts: one for each of Leon's children. 1 The Independent Trustees have discretion to pay income and principal to the child. 2 After age 25. ctild can urilhdraw up to 3% of the 'retinal of the child's trust and can appoint the principal at death to anyone (except his/her credithes or estate). 3 After age 35. Trustees are requested to pay 10% of the principal of the child's trust to the child. 4 The child's trust terminates at the child's death. Any properly not appointed will pass to the child's issue (subject to a continuing trust). Jr Separate Trust Ciro Joshua M. Black 1.503.351 Separate Trust be Alexander S. Black 1.503.351 Separate Trust rbo Victona R. Black S 1.503.351 Page 18 of 26 EFTA00617032 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Mallory Trust Flow Chart - Following Debra's Death Trustee: Richard Ressler Trustees: After age 35. a child can be co-Trustee of his/her separate Trust. Trust f/b/o Benjamin E. Black $ 1.031.000 Mallory Trust Assets 4.124.000 1 Upon the death of the survivor of Leon and Debra. any property not appointed by Leon at his death will be divided into per slirpital shares for Debra's descendants. 1. Each share for a descendant of Debra will be held in a separate Trust for the lifetime of the beneficiary: - The Independent Trustee must distribute income and principal needed for the beneficiary's health, education. support and maintenance. - The Independent Trustee also has broad discretion to distribute income and principal to the beneficiary for any purpose. - Alter age 35. the beneficiary may appoint income and principal among Debra's descendants. 2. Al the beneficiary's death: The beneficiary's Trust will terminate and will be distributed as the beneficiary appoints. Any property not appointed will be distributed to his/her descendants. subject to the same trust terms. 4, Trust f/b/o Joshua M. Black $ 1.031.000 Trust WO) Alexander S. Black 1.031.000 Trust kilt Victoria R. Black 1.031.000 Page 19 of 26 EFTA00617033 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Distributions to Children and Charitable Institutions Upon Leon's/Debra's Death Fan* 4340041640 Won Lean's loon Otorat LOOM. new, Arararaene Death Deere amesinin S. Nock APOI 6.4401001 Tessi 10f tile APO 2 Declaration Trust lorltte 1992 Unaware° Trust Trust trial age 45 1999 Insurance Trust 42 Tessi 10f tile 4444•410 tied LOWY Thin Tessi 10f tile 163.049.182 1997 GET Exorrpt Tnnt Trust lorltte 751.601 Slack 2011 Fame/ Trust Trust lorltte ustoryTrual Trued 101 Lila Trndt4es Ovtrohl from Debra Estate 00071 16.661200 Joshes IL Seek APC" iragelowe Tram lot Lite AP02 Declaration Trete lOr Life 149.799.250 1992 Insurance trust Trail teal age 45 5.000.440 1999 Insurance trust 42 Trust for We • 25.000.40) 4444046, and Legacy TRAM Trust 101 Life 163.919.182 vaa7 OST Cern% Tani Trued 10, Life 751.601 751.750 Mack 2011 Fame, Trust Trust lor Life 66.565.750 mercer Trust Trust lor We 1.031.403 Teruel°, DO ght from Male Estate CkeItit 16.664.000 • Alexander S. Brace AP01 'Woomera Trust bort/to 350.062520 APO2DetIteation Trull lot tile 149.799.40 1902 leStetlere Trust Teal vet 690 45 - 5.000.000 1999 Insurance That 42 Trust loft/to 25.000.000 Melva and loamy trust Trust loft/to 163919.182 1097 GST Exemx Teal ThellOr Life 751201 751.750 Stack 2011 Fame, Trust Thiel lOr Life 66.565.750 Mahn trust Trust for We 1.031.000 Tartabies Oewciu tom Dotas Estate, osot 16.664.000 Morons R. Brace AP01 Ageoanom APO2Doclaraten 1992 tenant, Tien 1999 loeunlote Trust y2 Nonage. nd Legacy Trutt 1997 GS1 Exorrpt Tint Black 2011 Farnik Trust worry Trust Tarchles OutnoN from Detea's Estate • Trust for Trust loft/to Tryst vet ago 45 Tryst lot tile Thal loft/to Trust loft/to Trete lOr Life Intel lOr Life Dirge 163.919.142 761901 16.664.000 360.062.520 149.799.250 5.000.000 25.000.400 751.750 66.565.750 10:0 03) Play .93 Ineersa to Museums DarImouth Pledge Leen Black FarelyFoundMon 10.731.000 19.129.000 24.533400 38447030 EStlellad Taxes and Expenses Federal Estate lax New York Eetele Tax letetnietaIion Expenses Federal & NY Capes Gate lax and NI 1 we Loan hes 7,322.667 496.623.084 7652222 297084202 5.000.000 3.376000 *76.210.920 541.032.000 1.6314.738.440 ' APOI rant reduced ex 34K camelgams tax pas an death 409 lospon to 1114,31.694.736.4COnkto from Loon assumed lo Mee a zero bass. 350.062.620 ' 149.799.250 5.000.000 25.000.400 751.750 66.565.750 1.031.000 taAL-1—_.1 IS 350.062.620 ' 779.595,053 S 779.595.053 I Is 779.595.053I S °40 .600 I S 3551.341.695 Page 20 of 26 EFTA00617034 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Black Family Partners - Financial Inventory Detail as of April 16, 2014 Cash U.S. Trust Cash Account $ 8.789,000 JP Morgan Cash Account 1.525,000 Marketable Securities Lone Cascade LP 35.075,000 Millennium Group USA LP 23.567,000 Canyon Value Realization Fund LP 18.604,000 Anchorage Capital Partners LP 17.394,000 FCI Co-Invest 0 (A) LP 12.041,000 AINV shs dist fr AIC 5.016,000 IGng Street Capital LP 49,000 Environmental Solutions Worldwide illiquid Assets 4,000 Investment Partnerships: Knowledge Universe LP 33.771,000 Sustaivable Woodlands LP 19.090,000 HAC Capital Fund LP 3.141,000 Wolfensohn Capital Partners LP 2.067,000 iCrete LLC 1.501,000 Tenfore Holdings Fund I LP 494.000 Rely Labs 188.000 45.93% Interest BRH Hldgs' 2.318.179.000 Apollo Co-Invest VI (A) LLC 38.075.000 Apollo Value Co-Invest LUX 8.052.000 Apollo Co-Invest V LLC 3.551.000 SOMA Co-Invest LLC 3.063.000 Apollo Co-Invest III LLC 2.151.000 AP Alternative Assets LP 933.000 Apollo Co-Invest IV LLC 539.000 T-Ink. Inc. 100.000 Convertible Promissory Note- ESWW 2.941.000 Credit Line - Phaidon Global 8.600.000 TRA Dividend - July 2007 Transaction 88.100.000 Note due from LDB 42.000.000 Note due from Narrows Fildgs 25.000.000 Note due from PLB LLC 3 200 000 Total Assets (Undlscounted) $ 2,726.800,000 Discount • 30% t8 I 8.010.0C0', Total Assets (Discounted) $ 1.908.760.000 'AGM mean value 625Share. Page 21 of 26 EFTA00617035 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Includible Portion of APO GRATs as of April 16, 2014: Includible Value of APO GRATs APO1 GRAT' 723,901,855 APO1 GRAT No. 24' 631,910,705 APO1 GRAT No. 3*** 109,858,986 Total $ 1,465,671,546 Rounded Value: $ 1,465,672.000 *34.9794% limited partner interest in Black Family Partners, Mt "31.7671% limited partner interest in Black Family Partners, "s5.5335% limited partner interest in Black Family Partners, Page 22 of 26 EFTA00617036 Leon D. and Debra R. Black Overview of Estate Plan Personal Real Estate--Financial Inventory As of April 16, 2014 Leon Debra Total Jointly Owned Residences 760 Park Avenue, NY, NY 750 Park Avenue, NY. NY 5226 E. Desert Vista Rd. AZ 766 Meadow Lane and 3rd Parcel, Southampton, NY 190 and 200 Narrows Road, Bedford, NY Total Jointly Owned $10,000,000 500,000 1,000,000 16,700,000 10,000,000 $ 10.000.000 500,000 1.000,000 16,700,000 10,000,000 $ 20.000.000 1,000,000 2,000,000 33,400,000 20,000,000 $38,200,000 $38,200,000 $ 76,400,000 Individually Owned Residences 3rd Parcel Narrows Road. Bedford. NY' 750 Meadow Lane. Southampton, NY" Total Individually Owned 16,600.000 $ 10,000,000 $ 10,000,000 16.600,000 $16.600,000 $10.000.000 $ 26.600.000 Total Personal Real Estate $ 54.800,000 $ 48.200.000 $ 103.000,000 Total Liabilities - Net Value L$ 54,800,000 $ 48,200,000 $ 103,000,000 'Allocates $30 million value equally among the three Narrows Road parcels. **Allocates $50 million value equally among the three Meadow Lane parcels. Page 23 of 26 EFTA00617037 Leon D. and Debra R. Black Overview of Estate Plan APO1 Agreement - Financial Inventory As of April 16, 2014 Assets Cash and Marketable Securities $ 12,298,000 Apollo Credit Opportunities 40,838,000 Note Receivable From Leon D. Black 1,694.738,000 Note Receivable From APO2 Declaration 86,436,000 Art 142,231,000 Total Assets $ 1,976,541,000 Includes assets held through LBF Holdings LLC. Page 24 of 26 EFTA00617038 Leon D. and Debra R. Black Overview of Estate Plan APO2 Declaration - Financial Inventory As of April 16, 2014 Illiquid Assets Cash & Marketable Securities Black Family Partners LP (12.5498%) - DISCOUNT 30% Investment Partnerships - Various Apollo Related Investments Other Assets Art Phaidon Investment - AT COST SH Meadow Lane LLC 101 Warren Street LLC OFH LLC - NET VALUE $ 16,851,000 239,545,562 5,088,000 889,000 298,000 348,899,000 54,000,000 8,312,000 3,500,000 8.250,000 Total Assets $ 685.632,562 Liabiliti Note Payable to APO1 Agreement Net Assets (86,436,000) 599,196,562 Page 25 of 26 EFTA00617039 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 LDB 2011 LLC - Financial Inventory Detail Assets Cash and Marketable Securities Illiquid Assets Black Family Partners LP (7.1685%) - DISCOUNT 30% Apollo Related Investments Investment Partnerships Art Phaidon Global - AT COST $ 24.779.000 136.829.461 19.827.000 2.394.000 72.750.000 10.000.000 Total Assets $ 266,579,461 Liabilities Liabilities (316.164) Total Liabilities $ (316,164) Net Value of Trust $ 266,263,297 Rounded Value: I $ 266,263,000 Page 26 of 26 EFTA00617040