From: Richard Joslin <

From: Richard Joslin < IMME> To: Brad Wechsler < IMIMMI>, jeffrey E. <jeevacationgginail.com> Subject: option exercise Date: Wed, 01 Apr 2015 20:33:07 +0000 Re: non-qualified stock options (NQO) granted to LDB/ founders as part of services provided as director or public company. Apollo policy is for founders to report the option exercise as taxable income (1099-MISC issued by public company to founder). Founder remits the after-tax cash profit to Apollo. Question was posited to to Glen Liebowitz/ John Suydam as to whether Apollo would accept 100% disgorgement, ie Apollo reports 100% of the income and receives 100% of the net cash exercise. John Suydam has confirmed that Apollo will accept 100% of the cash. Net cash retained by LDB on NQO exercise after tax would be payable to Apollo: $376,441. Given that the 1099-MISC would be reported on LDB 1040, there is tax risk that assignment of income would not be respected by the IRS notwithstanding the cash transfer/ disgorgement. I'd have to dig into this. Richard Joslin CFO Elysium Management LLC 445 Park Ave Ste. 1401 New York, NY 10022 (w) (c) (f) EFTA00707727