BERDON

BERDON ACCOUNTANTS AND ADVISORS- Next Management, LLC 15 Watts Street 6th Floor New York, NY 10013 Dear Client, Enclosed are the following partnership returns prepared on behalf of Next Management, LLC for the year ended December 31, 2015. 2015 U.S. Return of Partnership Income 2015 IRS e-file Signature Authorization for Form 1065 2015 California LLC Return of Income 2015 California E-File Return Authorization for LLC's 2015 Florida Partnership Information Return 2015 State of New York Partnership Return 2015 New York State E-File Signature Authorization for IT-204 2015 New York City UBT Return for Partnerships 2015 Signature Authorization for E-filed UBT Return 2016 New York City Estimated Unincorporated Business Tax The original of each of the above mentioned returns should be dated and signed in accordance with the filing instructions included with the copy of the return. This copy is for your use and should be retained for your files. These return(s) were prepared from information provided by you or your representative. The preparation of tax returns does not include the independent verification of information used. Therefore, we recommend you review the return(s) before signing to ensure there are no omissions or misstatements. If you note anything which may require a change to the return(s), please contact us before filing them. Please return your signed electronic filing authorizations to us either by faxing to Berdon at 212-699-8832 or by uploading to your Berdon portal. If you have any questions in this regard, contact your tax advisor. We appreciate this opportunity to serve you. Please contact us if you have any questions or if we may be of further assistance. Sincerely, Berdon LLP Certified Public Accountants Enclosure(s) Berdon LLP • CPAs and Advisors 360 Madison Avenue. New York. NY 10017. 212.832.04001 One Jericho Plaza. Jericho. NY 11753 .516.931.3100j www.8EFtDONLLP.com XL460 2.000 EFTA00806407 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form 8879-PE 2015 IRS e-file Signature Authorization for Form 1065 for the year ended December 31. 2015 The original form should be signed (using full name and title) and dated by an authorized general partner or limited liability company member manager of the partnership. The signed form should be returned on or before September 15, 2016: Berdon LLP Certified Public Accountants 360 Madison Ave New York. NY 10017 Or fax to: 212.699.8832 Attn: Tax Control Or email to: [email protected] DO NOT separately file a paper Form 1065 with the Internal Revenue Service. Doing so will delay the processing of your return. We must receive your signed form before we can electronically transmit your return. The Internal Revenue Service will notify us when your return is accepted. Please note that the IRS does not consider your return as filed until they confirm acceptance of the return. EFTA00806408 Form 8879-PE IRS e-file Signature Authorization for Form 1065 O148 No. 1545-0123 Department of the Treasury Internal Revenue Service Name of partnership ► Do not send to the IRS. Keep for your records. ► Information about Form 8879-PE and its instructions is at wwwirs.govilom78879pe. Fiat calendar year 2015. a lax year beginning 201'.. are ma. 20 2015 NEXT MANAGEMENT, LLC Part I Employer Identification number 13-3495607 Return Information (Whole dollars only) 1 Gross receipts or sales less returns and allowances (Form 1065. line 1c) 1 20,059,894. 2 Gross profit (Form 1065, line 3) 2 20,059,894. 3 Ordinary business income (loss) (Form 1065, line 22) 3 2,415,902. 4 Net rental real estate income (loss) (Form 1065, Schedule K, ine 2) 4 5 Other net rental income (loss) (Form 1065, Schedule K, line 3c) 5 Part II Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return) Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership's 2015 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership's electronic return of partnership income. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership's electronic return of partnership income. General Partner or Limited Liability Company Member Manager's PIN: check one box only I authorize BERDON LLP to enter my PIN as my signature EROIrm name on the partnership's 2015 electronically filed return of partnership income. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership's 2015 electronically filed return of partnership income. General partner or limited liability company member manager's signature ► Title ►PRES OF MEMBER—MGR Part III do not enter all zeros Date ► Certification and Authentication ERO's EFIN PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 21 6 3 7 7 4- 11 3 do not enter all zeros 0 4. I certify that the above numeric entry is my PIN, which is my signature on the 2015 electronically filed return of partnership income for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-iiie Providers tor Business Retums. EROs signature ► Date ► ERO Must Retain This Form - See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice. see instructions. Form 8879-PE (nisi JS.A SPAM? 1.000 R66297 1608 5 6 8 2 9 6 EFTA00806409 F., 1065 Department of the Treasury internal Revenue Service A Principal business actiaty U.S. Return of Partnership Income For calendar year 2015. or tax year beginning 2015, ending 20 b Information about Form 1065 and its separate instructions is at www.lre.gov/form1065. OMB No. 1545.0123 2015 MODEL AGENCY BPMcipalswahmorsoMm MODELING AGENCY C Business code number 812990 Type or Print G Check applicable boxes: Name of partnershp NEXT MANAGEMENT, LLC Number. street. and room or suite no. II a P.O. box. see the instructions. 15 WATTS STREET 6TH FLOOR City or town, state or province. country, and ZIP or breign postal code NEW YORK, NY 10013 (1) (6) Check accounting method: 1) Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year Itr. Check if Schedules C and M-3 are attached oemplayoridemiscationmmbef 13-3495607 E Date business stated 01/04/1989 F Total assets (see the instructions) 16,760.866. Initial return (2) K Final return (3) El Name change (4) 0 Address change (5) 0 Amended return Technical termination - also check (1) or (2)_ Cash (2) E Accrual (3) U Other (specify) b. 3 Caution. Include arty trade or business income and expenses on lines la through 22 below. See the instructions for more information. . E 2 — la Gross receipts or sates Ia 20,059,894. 20,059,894. b Returns and allowances lb c Balance. Subtract line lb from line la 2 Cost of goods sold (attach Form 1125•A) 3 Gross profit. Subtract line 2 from line lc 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statemenDSTMT. 1 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 7 Other income (loss) (attach statement) SEE. STATEMENT 1.. . 8 Total Income (loss). Combine lines 3 through 7 lc 2 3 20,059,894. 4 248,456. 5 6 7 -234,496. 8 20,073,854. Deductions (see the Insbuctoes tor Imitations) 9 Salaries arid wages (other than to partners) (less employment 10 Guaranteed payments to partners 11 Repairs and maintenance 12 Bad debts 13 Rent 14 Taxes and licenses 15 Interest 16a Depreciation (if required, attach Form 4562) credits) SEE. 16a STATEMENT J I 120,998 9 11,291,732. 10 11 414,619. 12 8,131. 13 749,810. 74 769,540. 15 120,998. b Less depreciation reported on Form 1125-A and elsewhere on return 16b 16c 17 Depletion (Do not deduct oil and gas depletion.) 18 Retirement plans, etc 19 Employee benefit programs 20 Other deductions (attach statement) SEE. STATEMENT J.. . 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . 17 18 106,026. 19 338,804. 20 3,858,292. 21 1 7 , 657, 952 . 22 Ordinary business income (loss). Subtract line 21 from line 8 22 2,415.902. Under penalties of penury. I declare that I have examined this return. incbding accompanying schedules and statem nts. and to the best of my knowledge and belief. it is true. correct. and complete. Declaration olpreparet (other than general partner or lasted liability company member manager) Sign Here is based on as information of which preparer has any knowledge. PRES or MEMBER-MGR FAITH KATES May the IRS &muss this mum with th praparor silo= bolos (see .nstrucbonsi? gil • Yes K Signature of general partner or kneed liability company member manager Date Paid Preparer Print/Type preparers name MARC YATKOWSKY Preparees signature Date CheckU it sell-employed PUN 200002675 Firm's name le. BERDON LLP FlreYsEINK 3 — 0485070 Use Only • Fires address Ili. 360 MADISON AVE NEW YORK, NY 10017 Phone no. 212-832-0400 For Paperwork Reduction Act Notice, see separate instructions. Form 1065 (2015) SSA 6P1010 2.000 R66297 1608 7 EFTA00806410 Electronic Return Acknowledgement Tax Year : 2015 Taxpayer: NEXT MANAGEMENT, LLC ID No : 13-3495607 Return No: R66297 Return Identification Number : 4/18/2016 10:38:00 A Return Type : 7004 Filing Type Description : FEDERAL EXTENSION Tax Period End Date : 12/31/2015 Electronic Postmark : 4/18/2016 10:38:00 A Return Status : ACCEPTED Status Date : 04/18/2016 ELECTRONIC POSTMARK: THIS IS THE TRANSMISSION DATE AND TIHESTAXP AS PER CENTRAL TIME. SX9000 1.000 R66297 1608 08/16/2016 10:42:01 V EFTA00806411 Form 1065 (2015) NEXT MANAGEMENT. LLC 13-3495607 Page 2 Schedule B 1 a c e What X type of entity is filing this return? Check the a Domestic general partnership b Domestic limited liability company d Foreign partnership f licable box: Domestic limited partnership Domestic limited liability partnership Other ► Yes No X 2 At any time during the tax year, was any partner in he partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corpo ation, an estate (other than an estate of a deceased partner), or a nominee or similar person? 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax- exempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership X X 4 At the end of the tax year, did the partnership: a Own directly 20% or more, or own, directly or indirectly, stock entitled to vote of any foreign or domestic corporation? instructions. If "Yes," complete () through (iv) below 50% or more of the total For rules of voting power of all dasses of constructive ownership, see X (I) Name of caporation (II) Employer Identification Number (If any) (III) Country of Incorporation Qv) Percentage Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the p ofit, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete () through (v) below loss, . . . X (I) Named Entity 0i) Employer Identification Number (if any) all) Type of Entity (Iv) Country of Organization (v) Maximum Percentage Owned in Prate. Loss. or Capital TWO TWELVE MANAGEMENT LLC 20-1354409 PARTNERSHI US 80.000 5 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details Yes No X 6 Does the partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule 11-3 If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or hem Lon Schedule K-1. X 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X 8 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? X X X 9 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? 10 At any time during calendar year 2015, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for FInCEN Form 114, Report of Foreign Bank and Financial Accounts MAR If -Yes ' enter the name of the foreign country. ► UK Other Information JSa 5P1020 2.000 R66297 1608 Fan, 1065 2015, 8 EFTA00806412 NEXT MANAGEMENT, LLC Form 1065 (2015) 13-3495607 Page 3 Schedule B 11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If -Yes; the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions Yes No X 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election'? See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes." attach a statement showing the computation and allocation of the basis adjustment. See instructions c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If 'Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions X X X 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) Ito ni 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? X 15 If the partnership is required to file Fonn 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions lo. 16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.b. X 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. li- 18a Did you make any payments in 2015 that would require you to file Form(s) 1099? See instructions b If "Yes," did you or will you file required Form(s) 1099? X X 19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. Iii. 20 Enter the number of partners that are foreign governments under section 892. Iii. Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (IMP) lot the tax year of this return: Other Information conbnued Named PARTNERSHIP HOLDING CORP. designated TMP C/O NEXT MANAGEMENT LLC If the IMP is an enti . name of TtyMP representative FAITH KATES Address d k 15 WATTS STREET designated r 6TH FLOOR IMP Identifying number of IMP Phone number of TMP NEW YORK, NY 10013 1 3 —3 501 977 Form 1065 (2015) 35* SP1035 2.000 R66297 1 608 9 EFTA00806413 Form 1065 (2015) NEXT MANAGEMENT, LLC Schedule K Partners' Distributive Share hems Total amount Income (Loss) 1 Ordinary business income (loss) (page 1, line 22) 2 Net rental real estate income (loss) (attach Form 8825) 3a Other gross rental income (loss) b Expenses from other rental activities (attach statement) . , . , c Other net rental income (loss). Subtract line 3b from line 3a 4 Guaranteed payments 5 Interest income SEE. 6 Dividends: a Ordinary dividends b Oualified dividends 7 Royalties 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065 b Collectibles (28%) gain (loss) c Unrecaptured section 1250 gain (attach statement) 10 Net section 1231 gain (loss) (attach Form 4797) 11 Other income (loss) (see instructions) Time,. 3a 1 2, 415, 902 . 2 3c 3b 16b STATEMENT 2 . . I 4 5 17, 910. 6a 7 ) 9b I 8 9a 10 9c 11 Deductions 12 Section 179 deduction (attach Form 4562) SEE. STATEMENT Z 13a Contributions SEE. STATEMENT 3. b Investment interest expense c Section 59(e)(2) expenditures: (1) Type N. (2) Amount Iiii• 12 191,194. 13a 103,335. 13b 1_3O2) d Other deductions (see instructions) Type Iii 13d it ti a E 14a Net earnings (loss) from self-employment b Gross farming or fishing income c Gross nonfarm income 14a 14b 14c Credits 15a Low-income housing credit (section 42(j)(5)) b Low-income housing credit (other) c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) d Other rental real estate credits (see instructions) Type IN. 1_5a 15b 1_5c t5d e Other rental credits (see instructions) Type lo. U. f Other credits (see instructions) Type 0 15f Foreign Transactions 16a Name of country or U.S. possession 0. 16b b Gross income from aN sources c Gross income sourced at partner level Foreign gross income sourced at partnership level d Passive category 0.. e General category 0. f Other 0.. 16c 16f Deductions allocated and apportioned at partner level g Interest expense 0. h Other 0. source income k Other 0. 16h Deductions allocated and apportioned at partnership level to foreign i Passive category O. j General category 0 16k I Total foreign taxes (check one): 0. Paid Accrued U 161 m Reduction in taxes available for credit (attach statement) n Other foreign tax information (attach statement) 16m Alternative Minimum Tax (AMT) Items 17a Post-1986 depreciation adjustment SEE. STATEMENT 3 b Adjusted gain or loss c Depletion (other than oil and gas) d Oil, gas. and geothermal properties - gross income e Oil, gas, and geothermal properties - deductions f Other AMT items (attach statement) 17a —976. 17b 17c 17d 17e 17f Other Information 18a Tax-exempt interest income b Other tax-exempt income c Nondeductible expenses 5gg. STATMW4' 1 19a Distributions of cash and marketable securities b Distributions of other property 20a Investment income b Investment expenses c Other items and amounts (attach statement) 18a lab 18c 118,554. 19a 3,000,000. 19b 20a 17,910. 20b 13-349 6 7 Fa0e4 Form 1065 (2015) JSA SP 1030 2.000 R66297 1608 10 EFTA00806414 Form loss mist NEXT MANAGEMENT, LLC Analysts of Net Income (Loss) 13-3495607 Pages 1 2 a Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 161 Analysis by partner type: General partners b Limited artners Balance Sheets per Books Assets 1 Cash 2a Trade notes and accounts receivable b Less allowance for bad debts 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities 6 Other current assets (attach statement) 7a Loans to partners (or persons related to partners) b Mortgage and real estate loans 8 Other investments (attach statement) 9a Buildings and other depreciable assets b Less accumulated depreciation 10a Depletable assets b Less accumulated depletion 11 Land (net ol any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach statement) 14 Total assets Liabilities and Capital 15 Accounts payable 16 Mortgages. notes. bonds payable in less than 1 year 17 Other current liabilities (attach statement) 18 All nonrecourse loans 19 a Loans from partners (or persons related to partners) b Mortgages. notes. bonds payable s. 1 yew or more 20 Other liabilities (attach statement) 21 Partners' capital accounts 22 Total liabilities and capital 17,918,920. Schedule M-1 1 2,139,283 (0 Corporate (a) Individual (active) (IN) Individual (passive) (Iv) Partnership (v Exempt Organization (vi) Nominee/Other 2.139.283. Beginning of tax year End of ax year (a) b) (c) (d) 10 526,765 4 577 394 3 532 783 9,290,056. 9,190,056. 100,000 10 426,765 100,000 STMT 4 228,894 176 432 STMT 4 —214 609 83 446 4,116,424 4,123,029. 3 577 355 539,069 3 396 487 726 542. STMT 4 2 361 407 3 051 607 17 918,_920. 16,760 866 13 449,263 12,182,330 STMT 4 1, 304, 038 1 786 832 STMT 4 1, 314, 035 1 620 133 1,851, 584. 1 171 571 16,760.866. Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. The partnership may be required to tile Schedule M-3 (see instructions). 1 Net income (loss) per books 2 Income included on Schedule K. lines I. 2.3c 5. 6a. 7. 8. 9a. 10. and 11. not recorded on bocks this year (Itemize): 3 Guaranteed payments (other than health insurance) 4 Expenses recorded on books this year not included on Schedule K. lines 1 through 13d. and 16I(Itemize): a Depreciation b Travel and entertainment 5 Add lines 1 through 4 Schedule M-2 6 Income recorded on books this yew not included on Schedule K. lines I through 11 (itemize): a Tax-exempt interest 7 Deductions included on Schedule K, lines 1 through 13d, and 161 not charged against book income this year (Itemize): a Depreciation $ 8 Add lines 6 and 7 9 Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5. . Analysis of Partners' Capital Accounts 1 Balance at beginning ol year 2 Capital contributed: a Cash b Property 3 Net income (loss) per books 4 Other increases (Itemize): 5 Add lines 1 through 4 1,851,584. 2,319,987. 4,171,571. 6 Distributions: a Cash . . STMT. 5. . b Property 7 Other decreases (Itemize): 3,000,000. 8 Add lines 6 and 7 9 Balance at end of year. Subtract line 8 from line 5 3,000,000. 1,171,571. JsA 5P1035 2.000 R66297 1608 Form 1065 (2015) 11 EFTA00806415 SCHEDULE C (Form 1065) (Rev. December 2014) Department of the Treasury Interns Revenue Service Name of partnershp Additional Information for Schedule M-3 Filers ► Attach to Form 1065. See separate instructions. ► Information about Schedule C (Form 1065) and its instructions is at wwwirs.govilorrn1065. OMB No. 1646-0123 NEXT MANAGEMENT, LLC Employer Identification number 13-3495607 1 At any time during the tax year. were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? 2 Does any amount reported on Schedule M-3. Part II. lines 7 or 8. column (d), reflect allocations to this partnership from another partnership of income, gain, loss, deduction, or credit that are disproportionate to this partnership's share of capital in such partnership or its ratio for sharing other items of such partnership9 3 At any time during the tax year. did the partnership sell, exchange, or transfer any interest in an intangible asset to a related person as defined in sections 267(b) and 707(b)(1)? 4 At any time during the tax year, did the partnership acquire any interest in an intangible asset from a related person as defined in sections 267(b) and 707(b)(1)? 5 At any time during the tax year, did the partnership make any change in accounting principle for financial accounting purposes? See instructions for a definition of change in accounting principle 6 At any time during the tax year, did the partnership make any change in a method of accounting for U.S. income tax purposes? Yes No X For Paperwork Reduction Act Notice, see the Instructions for Form 1065. Schedule C (Form 1065) (Rev. 2.2014) JSA 5P1037 1.000 R66297 1608 12 EFTA00806416 SCHEDULE M-3 (Form 1065) DCD4 nm Cft of tnc PO.rAir, Internal Revenue Santee Net Income (Loss) Reconciliation for Certain Partnerships We Attach to Form 1065 or Form 1065-B. ie. Information about Schedule M-3 (Form 1065) and its instructions is at wwwirs.gov. lorm1065. OMB No. 1545.0123 2015 Name ol partnership Employer identification number NEXT MANAGEMENT, LLC 13-3495607 This Schedule M-3 is being filed because (check all that apply): A X The amount of the partnership's total assets at the end of the tax year is equal to $10 million or more. j. The amount of the partnership's adjusted total assets for the tax year is equal to $10 million or more. If box B is checked, enter the amount of adjusted total assets for the tax year 19,760,866. . C K The amount of total receipts for the tax year is equal to $35 million or more. If box C is checked, enter the total receipts for the tax year D K An entity that is a reportable entity partner with respect to the partnership owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss, on any day during the tax year of the partnership. Name of Reportable Entity Partner Identifying Number Maximum Percentage Owned or Deemed Owned aE Voluntary Filer. la Did the partnership file SEC Form 10-K for its income statement period ending with or within this tax year? Yes. Skip lines 1 b and lc and complete lines 2 through 11 with respect to that SEC Form 10-K. No. Go to line lb. See instructions if multiple non-tax-basis income statements are prepared. b Did the partnership prepare a certified audited non-tax-basis income statement for that period? E Yes. Skip line lc and complete lines 2 through 11 with respect to that income statement. No. Go to line lc. c Did the partnership prepare a non-tax-basis income statement for that period? Yes. Complete lines 2 through 11 with respect to that income statement. No. Skip lines 2 through 3b and enter the partnership's net income (loss) per its books and records on line 4a. 2 Enter the income statement period: Beginning 01/01/2015 Ending12/31/2015 3a Has the partnership's income statement been restated for the income statement period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. N Financial Information and Net Income (Loss) Reconciliation b Has the partnership's income statement been restated for any of the live income statement periods immediately preceding the period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. 4a Wo b Indicate ldwide consolidated net income (loss) from income statement source identified in Part I, line 1 accounting standard used for line 4a (see instructions): 4a 2,319,987. I X GAAP 2 IFRS 3 D 704(b) 4 Tax-basis 5 Other: (Specify) IP. 5a Net __ _ income from nonincludible foreign entities (attach statement) 5a ( b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) 5b 6a Net income from nonincludible U.S. entities (attach statement) 6a ( b Net loss from nonincludible U.S. entities (attach statement and enter as a positive amount) 6b 7a Net income (loss) of other foreign disregarded entities (attach statement) 7a b Net income (loss) of other U.S. disregarded entities (attach statement) 7b 8 Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach statement) 8 9 Adjustment to reconcile income statement period to tax year (attach statement) 9 10 Other adjustments to reconcile to amount on line 11 (attach statement) 10 11 Net income (loss) per income statement of the partnership. Combine lines 4a through 10. . . . 11 2,319,987 . Note: Part I, line 11, must equal Part II, line 26, column (a) or Schedule M-1, line 1 (see instructions) 12 Enter the total amount (not just the partnership's share) of the assets and liabilities ol all entitles included or removed on the following lines: a Included on Part I, line 4 b Removed on Part I. fine 5 c Removed on Part I. line 6 d Included on Part I, line 7 Total Assets 16,760,866. Total Liabilities 15,589,295. dye, For Paperwork Reduction Act Notice, see the Instructions for your return. SP 1042 2.000 R66297 1608 S chedule 14-3 (Form 1065) 2015 13 EFTA00806417 Schedule M4 (Form 1065) 2015 Page 2 Name of parinershp Part II Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Reconciliation of Net Income (Loss) per Income Statement of Partnership With Income (Loss) per Return Income (Lose) Items IMUICh statements sar lines 1 through let I income (loss) Iron EquityM(00d MOW ~pennons 2 Gross toreegn &Mends nee preecosly taxed 3 enapan F. OEF. ans ~MI room ~UM . . 4 Gross loregn Sikhism: pnwcosty taxed 5 meows (U10)110. saucy Weed US. ~maw 6 U.S. diedends 7 Income005s' from u.S. panncarar. 6 II Income (loss) tram foram, partnerships . 9 Income (loss, front ena sossIncutib entities 10 gems relating to repcdeble trent9COM5 . 11 Intetest frame (me insouctonal 12 TOW accrual »Men letbuSMent 13 Hed9in0 usms833717 14 mark.temarket income (loss) Is Cost Moot& sold (see insaucitynt . . 16 Sale ~sue lease 00r sears ardor 1~41) . 17 Section 481(a) alumnus 18 Unearnedkieterted revenue 19 Income recognition (ran bog-term cortrms 20 Original :me discount and other imputed ,teren 21e Income statement gainiloes on sale exchange. Mean:lawn:M. worthlessness or other mammon of assets other than inventory and pass-through entities. . . . b Gass capital gains from Schedule Q credo. ding amoures from pass-through entities . . c Gess caplet losses from Schedule D. exCludng amounts horn pal354breUgh entities. abandonment loses, and wont: stock losses d Nol gan/loss reported on Form 4797. Inc I?. exdudrg amounts from pus-through entities. aban000Metell04403. and wrolhke-s stock losats e Abandonment lasses 1 Worthless stock losses (Mach statement'. . 9 Other ganlloss on cfspeolson of assns other than inventory 22 Other income 1o55) dens with ChllegenCe5 latliaCh 51$100130) 23 Total Income (loss) Items. Corrbine Ines I through 22 24 Total exponse'deductIon Hems. Morn Pal II me 31) Imo nstmclons) 25 Other gems with fledges:ewe:STMT. 7 26 Raemeseelon saute Corium iron 23 mom 25 (a) Income (Loss) per Income Statement (b) Temporary Difference (c) Permanent Difference CO Income (Loss) per Tax Return 298,055. 5,160. -59.919. 243,296. 17,910. 17.910. ( ) ( ) 315,965. 5,160. -59.919. 261,206. -12,859.017. -216,737. 90,792. —12,984,962. 14.863.039. 14,863,039. 2,319,987. -211,577. 30,873. 2,139,283. Note: Line 26, column (a), must equal Part I, line 11, and column (d) must equal Form 1065, Analysis of Net Income (Loss). line 1. Schedule h1-3 (Form 1065) 2015 JSA 51.1043 2.000 R66297 1608 14 EFTA00806418 Schedule M-3 (Form 1065) 2015 Page 3 Name of partnershp Part III Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Reconciliation of Net Income (Loss) per Income Statement of Partnership With income (Loss) per Return - Expense/Deduction items Expense/Deduction Items I Slate and kcal current income lax expense 2 Slate and kcal deterred ncome tax eipense 3 Foreign current mane lax expense (other than foreign wthhoidag taxes) 0 Foreign deterred income lax expense S Equity based compensation 6 lAeals and ereenaninall 7 Fines and penalties 0 .lioam•rn. eamiges. innede.ans witness 9 Guaranteed payments 10 Pension and peafesharing II Other post.relirement benefits 12 Deferred Dampen:anal 13 Charitable conabution of cash and tangible property 10 Charitable conInbuton et intsigible properly II Organizational eoponses as per Regulations section 1.709-2(al II Syndication expenses as per Regulations section 1.709•2gol 17 Current year acquisitionheaganization investment barildro lees II Current year acquisibanseceganixaban legal and accounting Ices 19 Amortization:impairment et goodeil . . 20 Amortization el acquisition. reorganization and statue costs 21 Other amorfization et impainnall wnto.cels 22 Reserved 23a °optimal • 04 & Gas b Depletion - Other than On & Gas 24 Intangible biting 6 development cost . 25 Doprociatian 26 Sad debt exprise 2/ Interest expense (see munitions, . . . 29 Purchase versus lease (la purchasers and a lessees) 29 Research and development costs 30 Other expense deducbcn items with differences (sten staterront)STMT 8 31 TOP OrarnP1100•11101. erre. coterie ties I vireo It Env Sea and en Pan i. M. 24. caPPIPP poses accounts as nagatia ens eflatita amanita. palkOre (a) Expense per Income Statement Ot) Temporary Difference (c) Permanent Difference (d) Deduction per Tax Return 155,391. 155,391. 4.000. -4.000. 181,584. -90,792. 90,792. 98,175. 98,175. 20,790. 179.824. 200.614. 159,326. 152,866. 312,192. 8,131. 8,131. 12.231.620. -111,953. 12.119.667. 12.859.017. 216.737. -90.792. 12,984,962. Schedule M-3 (Form 1065) 2015 35.a 5P1044 2.000 R66297 1608 15 EFTA00806419 OMB No. 1545-0123 Form 8916-A Department of the Treasury Internal Revenue Service Name ol common parent Supplemental Attachment to Schedule M-3 ► Attach to Schedule M-3 for Form 1065. 1120, 1120-L. 1120-PC. or 1120S. ► Information about Form 8916-A and its instructions is at knnvirs.gotelorrn1120. 2015 NEXT MANAGEMENT, LLC Name ol subsidiary Employer Identification number 13-3495607 Employer Identification number Part I Cost of Goods Sold Cost of Gads Sold Items 1 Amounts attributable to cost flow assumptions 2 Amounts attributable to: a Stock option expense b Other equity based compensation e Meals and entertainment d Parachute payments e Compensation with section 162(m) limitation I Pension and profit sharing, g Other post-retirement benefits h Deferred compensation I Reserved j Amortization k Depletion I Depreciation m Corporate owned life insurance premiums n Other section 263A costs 3 Inventory shrinkage accruals, 4 Excess inventory and obsolescence reserves 5 Lower of cost or market write- downs 6 Other Items with differences (attach statement) 7 Other items with no differences 8 Total cost of goods sold. Add lines 1 through 7 in columns a, b. c. and d. Enter totals on the applicable Schedule M-3. See instructions For Paperwork Reduction Act Notice. see instructions. Form 8916-A (2015) (a) Expense per Income Statement (b) Temporary Difference (e) Permanent Difference Off Deduction per Tax Return J SA SX9035 2.000 R66297 1608 16 EFTA00806420 Form 8916-A (20t5) NEXT MANAGEMENT, LLC 13-3495607 Noe 2 Part II Interest Income Interest Income Item 1 Tax-exempt interest income Interest income from hybrid securities 2 3 Sale/lease interest income 4a Intercompany interest Income - From outside tax affiliated group Intercompany interest Income - From tax affiliated group 5 Other Interest income 6 Total interest income. Add lines 1 through 5 in columns a, b, c, and d. Enter total on the applicable Schedule M-3. See instructions. Part (a) Income (Loss) per Income Statement (b) Temporary Difference (c) Permanent Difference 17,910. 17.910. (d) Income (Loss) per Tax Return 17,910. 17.910. Interest Expense Interest Expense Item 1 2 3a Interest expense from hybrid securities Leasetpurchase interest expense Intercompany interest expense - Pad to outside tax affiliated group Intercompany interest expense - Paid to tax affiliated group 3b 4 Other Interest expense 5 Total interest expense. Add lines 1 through 4 in columns a, b, c. and d. Enter total on the applicable Schedule M-3. See instructions. (a) Expense per Income Statement (b) Temporary Difference (c) Permanent Difference (d) Deduction per Tax Return Form 8916-A (2015) 5X9036 2.000 R66297 1608 17 EFTA00806421 F.,„, 4562 NipailmOMOttel[Poarur, Interne/ Revenue &IVO (99) Name(s) shown on return NEXT MANAGEMENT, LLC Business or activity to which this form relates Depreciation and Amortization (Including Information on Listed Property) ► Attach to your tax return. ► Information about Form 4562 and its separate instructions is at onvwdrs.gov/form4562. OMB No. 1545.0172 2015 Attachment Sequence No. 179 NEXT Part I MANAGEMENT, LLC Identifying number 1 3-3 4 9 5 6 07 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 properly placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- 5 DOWN limitation ter lac year. SODIUM:Atha 4 WM line 1.1 zer0Or Len. enter ME/1,00 51115 Sapasalelv. see instructions 6 (a) Description of property (b) Cost (business use only) (c) Elected cost 1 2 3 5 00, 0 0 0 . 346,797. 2,000.000. 4 5 SEE DEPRECIATION DETAIL 191,194. 7 Listed property. Enter the amount from line 29 1 7 8 Total elected cost of section 179 property. Add amounts in column (c), nes 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line 8 10 Carryover of disallowed deduction from line 13 of your 2014 Form 4562 Business Income limitation. Enter the smaller of business income (not less than zero) or line 5 (see Instructions) Section 179 amens. deduction. Add lines 9 and 10, but do not enter more than line 11 11 12 13 Carryover of disallowed deduction to 2016. Add lines 9 and 10, less line 12 , Note: Do not use Part II or Part Ill below for listed property. Instead, use Pal V. Part II 8 9 10 5 00, 0 0 0 . 191,194. 191,194. 11 500.000. 191.194. 12 13 1 Special Depreciation Allowance and Other Depreciation (Do not include listed property) See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) 14 77,802. 15 Properly subject to section 168(1)(1) election 15 16 Other depreciation (includng ACRS) 16 24.391. Part III MACRS Depreciation (Do not include listed properly.) (See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2015 17 1 18, 805 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here .1-1 Section B - Assets Placed in Service During 2015 Tax Year Using the General Depredation System (a) Classification dproperly (b) Month and year placed in service (c) Basis for depreciation (businesarimestment use only - see insmictions) 00 Reemery naiad r — (e) Convention (I) Method (g) Depreciation deduction 19a 3-year property b 5-year property e 7-year property d 10-year properly e 15-year properly f 20-year properly g 25-year properly 25 yrs. S/L h Residential rental property 27.5 yrs. MM S/L 27.5 yrs. MM S/L i Nonresidential real property 39 yrs. MM S/L MM SIL Section C - Assets Placed in Service During 2015 Tax Year Using the Alternative De reciation System 20a Class life SIL b 12-year 12 yrs. SIL e 40-year 40 yrs. MM SIL Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 22 Total. Add amounts from line 12. lines 14 through 17. lines 19 and 20 In column (g). and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations -see instructions 22 120,998. 23 For assets shown above and placed in service during the current year. enter the portion of the basis attributable to section 263A costs 23 -ISA For Paperwork Reduction Act Notice, see separate instructions. 5)(2300 2.000 R66297 1608 Form 4562 (2015) 18 EFTA00806422 NEXT 4562 MANAGEMENT 15) , LLC For (20 13-34942i Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the businessAnvestment use claimed?I I Yes I I No 124b if "Yes,* is the evidence written? I I Yes I I No (a) Type d propeny fret vehicles first) (b) Date placed service (c) Business/ investment use percentage (r4 Cost or ether barn (e) Basis tordepredalios use only) (0 0Recovery necovelY period (0) Method? Convention 01) Depreciation deduction (0 Elected scam 179 Dom 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) 25 26 Property used more than 50% in a qualified business use: qi % 27 Property used 50% or less in a qualified business use: S/L • rS/1J SiL • 28 Add amounts in co umn (h), lines 25 hrough 27. Enter here and on line 21, page 1 128 29 Add amounts in co umn (i), line 26. Enter here and on line 7, page 1 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor. partner, or other "more than 5% owner." or related person. If you p melded vehicles to your employees, first answer the questions in Section C to see it you meet an exception to completing this section for those vehicles. 30 Total business/investment miles driven during the year (do not include commuting miles), , , 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year. Add lines 30 through 32 34 Was the vehicle available for personal use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36 Is another vehicle available for personal use? (a) Vehicle 1 04 Vehicle 2 (c) Vehicle 3 (d) Vehicle 4 (e) Vehicle 5 (0 Vehicle 6 Yes No Yes No Yes No Yes No Yes No Yes No l Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). 29 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," do not complete Section B for the covered vehicles. Part VI Yes No Amortization (0) (a) 00 Date amortization (0) (d) Amortization (I) Description of costs begins Amortizable amount Code section period or percentage Amortization for this year 42 Amortization of costs that begins during your 2015 tax ear (see instructions): ORGANIZATION COSTS [ 06/15/2015 15,790. 709 15.000 614. 43 Amortization of costs that began before your 2015 tax year 44 Total. Add amounts in column (f). See the instructions for where to report 43 200,000. 44 200,614. JSA 5%2310 2.000 R66297 1608 Form 4562 (2015) 19 EFTA00806423 INCOME FROM OTHER PASS-THROUGH ENTITIES Activity Name and Address ID Number and Type of Income C.A:ray InCgrineihrousra MOS MOP TWO TWELVE MANAGEMENT, LLC 20-1354409 ,GENERAL TRADE/BUSINESS NO NO NO 1 Ordinary income (loss) from trade or business activities 248,456. 2 Rental real estate income (loss) 3 Other rental income (loss) 4 Guaranteed payments 5 Interest Income (loss) 6a Total ordinary dividends 6b Qualified dividends 7 Royalty Income (loss) 8 Net short-term capital gain (loss) (entire year) 9a Net long-term capital gain (loss) (entire year) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) (entire year) 11 Other Income (loss) 12 Section 179 expense deduction 13a-g Charitable contributions SEE STATEMENT 9 5,160. 13h Interest expense on investment debts 131, k, I Deductions related to portfolio income 13j Section 59(e)(2) expenditures 13m-w Other deductions 15a, c Low-Income housing credit from section 42(D(5) partnerships 15b, d Low-Income housing credit (other) 15e Qualified rehabilitation expenditures related to rental real estate activates 151 Credits related to rental real estate activities 15g Credits related to other rental activities 15h-p Other credits 16b Gross income from all sources 16c Gross Income sourced at partner level 16d Foreign gross Income (partnership level): Passive 16e Foreign gross Income (partnership level): General categories 16I Foreign gross Income (partnership level): Other 16g Deductions allocated and apponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner levee: Other 16i Deductions allocated and apportioned (partnership level): Passive 16j Deductions allocated and apportioned (partnership level): General category 16k Deductions allocated and apportioned (partnership level): Other 16I Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions 17a Depredation adjustment on property placed in service after 1986 -58. 17b Adjusted gain or loss 17c Depletion (other than oil and gas) 17d Gross Income from oil. gas, and geothermal properties 17e Deductions allocable 17I Other adjustments and tax preference items 18a Tax-exempt Interest income 18b Other tax-exempt income 18c Nondeductible expenses SEE STATEMENT 9 27,762. 20a Investment income 20b Investment expenses 20c-z Other information JSA 5P9055 I 000 R66297 1608 20 EFTA00806424 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed In service Unadjusted costorbaMs Bus. % 179 exp. reduc. inbasts Basis Reduction Resistor Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- ven- lion Life /CRS demi MA CRS class Current -yr 179 evens& Current-year depreciation OFFICE EQUIPMENT 08/31/1991 22,526. 100. 22,526. 12,526. 12,526.200 DB HY 5 COMPUTER EQUIPMENT 10/31/1991 18,041. 100. 18,041. 18,041. 18,041.200 DB HY S FURNITURE4FIXTURES 05/31/1991 20,823. 100. 20,821. 20,923. 20,823.200 DB HY 7 OFFICE EQUIPMENT 01/04/1989 12,215. 100. 12,215. 12,215. 12,215.200 DB HY S COMPUTER 01/04/1989 47,819. 100. 47,819. 47,819. 47,819.200 DB HY S LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 100. 25,209. 25,209. 25,209.200 DB HY S FURNITURE 6 FIXTURES 01/04/1989 26,013. 100. 26,011. 26,013. 26,013.200 DB HY 7 OFFICE EQUIPMENT 07/01/1990 6,535. 100. 6,535. NONE NONE200 DB HY LEASEHOLD IMPRO(NY) 07/01/1990 33,158. 100. 31,158. 12,540. 33,158.3/1 sti. 31.000 618. FURNITURE4FIXTURES 07/01/1990 4,541. 100. 3,465. 1,076. 2,076. 1,076.200 DB HY 7 COMPUTER EQUIPMENT 01/31/1992 8,539. 100. 8,519. 8,539. 8,539.200 DB HY S PRINTER 02/26/1993 4,241. 100. 4,241. 4,241. 4,241.200 Ds MO S OFFICE EQUIPMENT 05/10/1993 2,382. 100. 2,382. 2,382. 2,302.200 Ds MO S OFFICE EQUIPMENT 10/01/1993 2,454. 100. 2,454. 2,454. 2,454.200 Ds MO S COMPUTER EQUIPMENT 11/01/1993 31,034. 100. 17,500. 11,534. 13,534. 13,534.200 DB MO S OFFICE EQUIPMENT 06/01/1993 2,500. 100. 2,500. 2,500. 2,500.200 Ds MO S LEASEHOLD IMPROV(NYI 02/28/1994 8,179. 100. 8,179. 4,174. 4,384.S/L )0 39 210. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 100. 2,319. 1,163. 1,222.S/L NH 39 59. LHI WO 07/31/1994 10,964. 100. 10,964. 5,468. 5,749.3/1 NH 39 281. LHI IN?) 08/31/1994 32,074. 100. 32,074. 15,927. 16,749.5/1 ma 39 822. LHI IN?) 10/30/1994 11,325. 100. 11,325. 5,571. 5,861.3/1 NH 39 290. LHI IN?) 11/30/1994 12,425. 100. 12,425. 6,101. 6,420.3/1 NH 39 319. OFFICE EQUIPMENT 07/01/1995 55,855. 100. 55,855. 55,854. 55,854.200 DB HY 5 LEASEHOLD IMPROVE 07/01/1995 12,155. 100. 12,155. 6,105. 6,413.S/L me 39 312. LEASEHOLD IMPROVE 07/01/1995 11,498. 100. 21,498. 5,772. 6,067.5/1 me 39 295. FURNITURE 6 FIXTURES 07/01/1995 31,451. 100. 31,451. 11,451. 31,451.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1995 16,832. 100. 26,832. 16,811. 16,831.200 DB HY 7 OFFICE EQUIPMENT(NYI 07/01/2996 45,326. 100. 45,326. 45,326. 45,126.200 DB HY 5 OFFICE EQUIPMENT(FLI 07/01/2996 20,695. 100. 20,695. 10,694. 10,694.200 DB HY 5 LEASEHOLD IMPROV(NYI 07/01/2996 54,075. 100. 54,075. 25,584. 26,970.3/1 me 39 1,386. FURNITURE 6 FIXTURES 07/01/2996 35,874. 100. 17,500. 18,334. 18,374. 18,174.2000B HY 7 FURNITURE 6 FIXTURES 07/01/2996 26,528. 100. 26,528. 16,528. 16,528.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1996 6,256. 100. 6,256. 6,256. 6,256.200 DB HY 7 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 100. 55,400. 24,792. 26,212.3/1 me 39 1,420. OFFICE FURNITURE 07/01/2997 8,872. 100. 8,872. 200 DB HY 7 OFFICE FURNITURE 07/01/1997 1,952. 100. 1,952. 200 DB HY 7 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 21 EFTA00806425 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % 179 sip. reduc. Ill bases Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me• thod Con- yen• lion Life /CRS class MA CRS class Current •yr 179 expense Current•year depreciation LEASEHOLD 1MPROV. 11/22/1998 11,700. 100. 11,700. 4,839. 5,138.511. MN 39 300. LEASEHOLD 1MPROV. 06/26/1998 29,553. 100. 29,551. 12,413. 13,171.5/1 me 39 758. FURNITURE 6 FIXTURES 07/01/1998 12,254. 100. 12,254. 12,254. 12,254.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1998 21,639. 100. 21,639. 21,638. 21,638.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1998 13,092. 100. 11,092. 11,092. 13,092.200 DB HY 7 OFFICE EQUIPMENT 07/01/1998 126,474. 100. 126,474. 226,474. 126,474.200 DB HY 5 OFFICE EQUIPMENT 07/01/1998 77,109. 100. 77,109. 77,109. 17,109.200 DB HY S • CCMPUTER 01/26/1998 236,963. 100. 236,963. 236,961. 236,963.200 DB HY S • CCMPUTER 01/26/1998 0,330. 100. 67,330. 67,329. 67,329.200 DB HY S • CCMPUTER 01/26/1998 35,900. 100. 35,900. 15,900. 35,900.200 DB HY 5 LEASEHOLD IMPROV(NYI 07/01/1999 112,785. 100. 112,785. 44,707. 47,599.S/L ma 39 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 100. 66,766. 66,766. 66,766.200 DB HY 7 FURNITURE 6 F (FL) 07/01/1999 1,951. 100. 1,951. 1,952. 1,952.200 DB HY 7 CCMPUTER (NYI 07/01/1999 202,098. 100. 202,098. 202,098. 202,098.200 DB HY 5 CCMPUTER (FLI 07/01/1999 45,399. 100. 45,399. 45,399. 45,199.200 DB HY S CCMPUTER (CAI 07/01/1999 69,509. 100. 69,509. 69,509. 69,509.200 DB HY S CCMPUTER (NYI 07/01/1997 38,206. 100. 36,206. 38,206. 38,206.200 DB HY S CCMPUTER (FLI 07/01/1997 12,929. 100. 22,929. 12,928. 12,928.200 DB HY S CCMPUTER-96'RETIRED 07/01/1996 —19,757. 100. —19,757. —19,757.200 DB HY S CCMPUTER (NYI 07/01/2000 174,341. 100. 174,341. 174,340. 174,340.200 DB HY S CCMPUTER (FLI 07/01/2000 66,827. 100. 66,827. 66,06. 66,626.200 DB HY S CCMPUTER (CAI 07/01/2000 66,027. 100. 66,027. 66,026. 66,026.200 DB HY S LEASEHOLD IMPROV(NYI 07/01/2000 37,330. 100. 37,330. 11,817. 14.794.S/L me 39 957. FURNITURE 6 F (NY) 07/01/2000 39,506. 100. 39,506. 19,506. 39,506.200 08 HY 7 OFFICE EQUIPMENT (NY 01/01/2001 2.014. 100. 2,014. 200 DB HY S OFFICE EQUIPMENT (NY 01/01/2001 1,959. 100. 1,959. 200 DB HY S OFFICE EQUIPMENT 01/01/2001 4,899. 100. 4,899. 200 DB HY S OFFICE EQUIPMENT 05/01/2001 4.244. 100. 4,244. 200 DB HY S OFFICE EQUIPMENT 01/01/2001 1.161. 100. 1,161. 200 DB HY S OFFICE EQUIPMENT 01/01/2001 1,546. 100. 2,546. 200 DB HY S OFFICE EQUIPMENT 02/16/2001 1,232. 100. 1,132. 200 DB HY S OFFICE EQUIPMENT 02/15/2001 2,271. 100. 2,273. 200 DB HY S OFFICE EQUIPMENT- CA 07/15/2002 4,569. 100. 4,569. 200 DB HY S FURNITURE -NY 04/30/2002 12,000. 100. 12.000. 200 DB HY 7 COMPUTER -NY 04/10/2003 41,698. 100. 41,698. 200 DB HY 5 COMPUTER -NY 04/10/2003 20,169. 100. 20,169. 200 DB HY 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 22 EFTA00806426 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % 179 exp. reduc. in basis Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- ven- lion Life /CRS class MA CRS class Current -yr 179 expense Current•year depreciation COMPUTER -NY 04/29/2003 1,372. 100. 3,372. 200 DB HY 5 COMPUTER 05/21/2003 4,441. 100. 4,443. 200 DB HY 5 COMPUTER 06/17/2003 6,582. 100. 6,582. 200 DB HY S COMPUTER 07/22/2003 5,359. 100. 5,359. 200 DB HY S COMPUTER - NY 06/06/2003 19,961. 100. 18,377. 792. 792. /91. 791.200 DB HY S OFFICE EQUIPMENT -NY 06/22/2003 6,045. 100. 4,021. 4,022. 4,021. 4,021.200os HY S OFFICE EQUIPENT - FL 04/09/2003 11,449. 100. 1,435. 8,014. 8,014. 6,014.200os HY S OFFICE EQUIP-FL 04/09/2003 5,561. 100. 1,669. 3,294. 3,894. 1,894.200os HY S OFFICE EQUIP-FL 04/09/2003 15,000. 100. 4,500. 10,500. 10,500. 10,500.200 os HY S OFFICE EQUIP-FL 06/01/2003 4,088. 100. 2,044. 2,044. 2,043. 2,041.200os HY S OFFICE EQUIP-FL 06/30/2003 1,880. 100. 940. 940. 939. 939.200os HY S OFFICE EQUIP-FL 06/06/2003 2,098. 100. 1,049. 1,049. 1,049. 1.049.200 DB HY S OFFICE EQUIP-FL 10/02/2003 2,101. 100. 1,094. 1,093. 1,093. 1,091.200os HY S OFFICE EQUIP-FL 10/06/2003 1,639. 100. 820. 819. 818. 818.200 DB HY S OFFICE EQUIP-FL 11/16/2003 1,355. 100. 1,676. 1,677. 1,677. 1,677.200 DB HY S OFFICE EQUIP-FL 12/31/2003 1,596. 100. 1,796. 1,798. 1,790. 1.798.200 DB HY S OFFICE EQUIP-CAL 04/09/2003 17,211. 100. 5,761. 12,046. 12,048. 12,048.200 DB HY S OFFICE EQUIP-CAL 04/16/2003 15,000. 100. 4,500. 10,500. 10,500. 10,500.200 DB HY S OFFICE EQUIP-CAL 06/30/2003 6,016. 100. 1,006. 3,008. 3,008. 1,006.200os HY S OFFICE EQUIP-CAL 12/31/2003 2,420. 100. 1,210. 1,210. 1,209. 1.209.200 DB HY S LEASEHOLD IMPRO-NY 06/22/2003 103,492. 100. 51,746. 51 746. 15,316. 1.6.643.S/L me 39 1,327. LEASEHOLD IMPRO-NY 07/24/2003 26,080. 100. 13,040. 71,040. 3,827. 4.161.S/L MN 39 334. LEASEHOLD IMPRO-NY 06/12/2003 17,158. 100. 8,879. 8,879. 2,594. 2,822.3/1 me 39 228. LEASEHOLD IMPRO-NY 09/16/2003 128,435. 100. 64,278. 64,217. 18,598. 20,245.3/1 me 39 1,647. LEASEHOLD IMPRO-NY 10/26/2003 16,767. 100. 8,384. 8,383. 2,410. 2, 625. sn. me 39 215. LEASEHOLD IMPRO-NY 11/19/2003 41,981. 100. 20,991. 20,990. 5,985. 6,521.5/1 me 39 538. FURNITURELFIX- NY 11/25/2003 1,598. 100. 1,799. 1,799. 1,199. 1,799.200 Ds HY 7 FURNITURE6FIX- NY 12/04/2003 28,027. 100. 14,014. 14,011. 14,012. 14,012.200 DB HY 7 FURNITURE6FIX- NY 08/08/2003 48,543. 100. 24,272. 24,2/1. 24,269. 24,269.200 DB HY 7 FURNITURE6FIX- NY 09/26/2003 1,874. 100. 1,937. 1,917. 1,937. 1,937.200 DB HY 7 FURNITURELFIX- NY 12/06/2003 1,2/5. 100. 1,636. 3,617. 3,637. 1,637.200 DB HY 7 COMPUTER - NY 04/01/2003 46,500. 100. 13,950. 32,550. 12,550. 32,550.200 DB HY 5 OFFICE EQUIPMENT-NY 01/05/2004 10,835. 100. 10,815. 200 DB HY 5 MAINTENANCE-NY 02/25/2004 7,750. 100. 7,750. 200 DB HY 3 MAINTENANCE-FL 02/25/2004 2,500. 100. 2,500. 200 DB HY 3 OFFICE EQUIPMENT-CAL 09/29/2004 8,646. 100. 8,646. 200 DB HY 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 23 EFTA00806427 NEXT MANAGEMENT, LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, Liz GENERAL TRADE oR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % 179 exp. reduc. in bases Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- van- Son Life ACAS cins MA CRS class Current -yr 179 expense Current-year depreciation LEASEHOLD IMPROVE-NY 01/16/2004 5,649. 100. 2,825. 2,924. 789. sit.sit ss 39 72. LEASEHOLD IMPROVE-NY 02/17/2004 3,686. 100. 1,841. 3,843. 2,076. 1,175.5/1 HM 39 99. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 100. 12,500. 12,500. 8,754. 9,587.s/L HY 15.000 15 813. FURNITURELFIX-NY 11/21/2004 6,001. 100. 6,001. 200 DB Hy 7 FURNITURELFIX-NY 01/30/2004 165. 100. 165. 200 DB Hy 7 OFFICE Kumasi -NE 01/01/2004 2,500. 100. 2,500. 200 DB Hy 3 OFFICE EQuIRNENT-FLA 02/07/2005 2,110. 100. 2,110. 200 DB Hy 5 OFFICE EQUIPMENT-CAL 01/16/2005 1,904. 100. 1,984. 200 DB Hy 5 LEASEHOLD IMP-CAL 02/24/2005 6,000. 100. 6,000. 4,052. 4,407.250 DB Hy 15 355. LEASEHOLD IMP- CAL 01/21/2005 800. 100. 800. 539. 586.250 DB Hy 25 47. FURNITURE 6 FIXT CAL 01/16/2005 6,291. 100. 6,191. 200 DB Hy 7 FURNITURE 6 FIXT CAL 04/29/2005 7,975. 100. 7,975. 200 DB Hy 7 OFFICE EQuIRNENT-NE 02/07/2005 6,714. 100. 6,724. 200 DB Hy 5 OFFICE EQUIPMENT-NY 02/05/2005 2,496. 100. 2,496. 200 DB Hy S OFFICE EQuIRNENT-NE 02/15/2005 2,086. 100. 2,086. 200 DB Hy 5 OFFICE EQuIRNENT-NE 11/01/2005 23,164. 100. 13,164. 200 DB Hy 5 FURNITURELFIX-NY 01/20/2005 6,215. 100. 6,225. 200 DB Hy 7 FURNITURELFIX-NY 01/11/2005 111. 100. 111. 200 DB Hy 7 FURNITURELFIX-NY 06/17/2005 8,440. 100. 8,440. 200 DB Hy 7 FURNITURELFIX-NY 07/14/2005 936. 100. 936. 200 DB Hy 7 OFFICE EQUIPMENT- Hy 02/16/2006 9,755. 100. 9,155. 200 DB Hy 5 OFFICE EQUIP. - FLA 02/09/2006 5,550. 100. 5,550. 200 DB Hy 5 LEASEHOLD IMP-NY 02/21/2006 10,485. 100. 10,495. 6,461. 7,080.150 DB Hy 15 619. LEASEHOLD IMP-NY 01/01/2006 21,461. 100. 21,461. 13,223. 14,489.150 DB Hy 15 2,266. FURNITURE 6 Fix-FLA 05/15/2006 2,789. 100. 2,189. 200 DB Hy 5 FURNITURE 6 Fix-FLA 07/20/2006 2,999. 100. 2,999. 200 DB Hy S FURNITURE 6 Fix-NT 01/14/2006 4,664. 100. 4,664. 200 DB Hy S OFFICE EQuIRNENT-NE 05/15/2007 39,598. 100. 19,598. 200 DB Hy S OFFICE EQIFHENT-NY 11/20/2007 29,628. 100. 19,628. 200 DB Hy S OFFICE EQuIRNENT-FL 05/15/2007 11,175. 100. 11,175. 200 DB Hy S OFFICE EQuIRKENT-FL 11/20/2007 5,3211. 100. 5,328. 200 DB Hy S OFFICE EQUIPMENT-CA 05/15/2007 9,291. 100. 8,293. 200 DB Hy 5 OFFICE EQUIPIONT-CA 11/20/2007 1,094. 100. 3,084. 200 DB Hy 5 FURNITURE 6 Fix-NE 02/14/2007 4,891. 100. 4,881. 200 DB Hy 7 FURNITURE 6 FIX-NY 05/15/2007 6,610. 100. 6,620. 200 DB HY 7 OFFICE EQuIRKENT-NT 01/18/2008 9,967. 100. 8,90. 200 DB HY 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 24 EFTA00806428 NEXT MANAGEMENT, LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis BUS. % In exp. reduc. inbasts Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation hie- thod Con- ven- don Life /CRS cues MA CRS class Current -yr 179 expense Current-year depreciation OFFICE EouIRNENT-Ny 05/02/2008 26,400. 100. 16,400. 200 DB Hy 5_ OFFICE EQUIPMENT-NY 07/02/2008 21,364. 100. 11,364. 200 DB Hy 5 OFFICE EQUIPMENT-FL 01/21/2008 22,126. 100. 12,116. 200 DB Hy 5 OFFICE EQUIPMENT-CA 01/21/2008 14,069. 100. 14,060. 200 DB HY 5 LEASEHOLD IMP-NY 02/12/2008 21,736. 100. 5,860. 5,068. 2,680. 1,079.5/1 HO 15 391. LEASEHOLD IMP-NY 12/19/2008 16,000. 100. 8,000. 8,000. 3,270. 1,801.5/1 HO 25 513. FURNITURE 6 FIX-NY 05/07/2008 1,542. 100. 3,542. 200 DB HY 7 FURNITURE 6 FIX-NY 12/26/2008 4,400. 100. 4,400. 200 DB HY 7 FURNITURE 6 FIX-NY 01/21/2009 4,400. 100. 4,400. 200 DB HY 7 LEASEHOLD IMP-NY 07/01/2010 75,753. 100. 75,753. 150 DB HY IS FURNITURE 6 FIX-NY 01/14/2010 1,214. 100. 1,214. 200 DB HY 7 LEASEHOLD IMP-NY 11/14/2011 11,227. 100. 11,227. 150 DB Hy 25 OFFICE EouIRNENT-NE 05/31/2011 4.382. 100. 4,382. 200 DB Hy 5 OFFICE EQUIPMENT-CA 11/14/2011 13,425. 100. 11,425. 200 DB Hy 5 LEASEHOLD IMP-NY 05/04/2012 4,167. 100. 4,167. 150 DB Hy 25 LEASEHOLD IMP-NY 11/10/2012 14,059. 100. 14,059. 150 DB Hy 25 LEASEHOLD IMP-CA 09/16/2012 5,205. 100. 5,285. 150 DB Hy 25 OFFICE EQUIPMENT-NY 02/22/2012 6,075. 100. 6,075. 200 DB Hy 5 OFFICE EQUIPMENT-NY 06/22/2012 1,325. 100. 3,325. 200 DB Hy 5 OFFICE EQUIPMENT-NY 08/05/2013 21,002. 100. 11,001. 200 DB Hy 5 LEASEHOLD IMP-NY 09/19/2013 111,030. 100.131,030. 150 DB Hy 25 LEASEHOLD IMP-NY 12/17/2013 9,631. 100. 9,633. 150 DB Hy 25 LEASEHOLD IMP-NY 12/31/2013 100,954. 100.200,954. 150 DB Hy 25 LEASEHOLD IMP-FL 09/26/2013 13,994. 100. 13,994. 150 DB Hy 25 LEASEHOLD IMP-CA 08/31/2013 21,300. 100. 21,300. 150 DB Hy 25 FURNITURE 6 FIX-NY 08/08/2013 39,929. 100. 19,929. 200 DB Hy 7 FURNITURE 6 FIX-NY 12/31/2013 11,680. 100. 11,688. 200 DB Hy 7 FURNITURE 6 FIX-FL 01/29/2013 2,825. 100. 2,825. 200 DB Hy 7 OFFICE EouIRNENT-NE 01/20/2014 22,211. 100. 22,211. 200 DB Hy 5 LEASEHOLD IMP-NY 02/27/2014 22,760. 100. 12,760. 200 DB Hy 5 LEASEHOLD IMP-NY 06/04/2014 156,004. 100.256,004. 150 DB Hy 25 FURNITURE 6 FIX-NY 01/10/2014 23,085. 100. 21,005. 200 DB Hy 7 FURNITURE 6 FIX-NY 02/14/2014 41,566. 100. 41,566. 200_0B Hy 7 FURNITURE 6 FIX-NY _05/07/2014 17,813. 100. 17,813. 200 DB Hy 7 FURNITURE 6 FIX-FL 07/10/2014 7,296. 100. 7,196. 200 DB Hy 7 soFTHARE 01/22/2015 255,603. 100. 77,802. 77,801. 23,773.s/L S/L 1.000 23.773. Less: Retired Assets TOTALS 'Assets Refired SA 5X9027 1.000 866297 1608 25 EFTA00806429 NEXT MANAGEMENT LW 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % in exp. reduc. in basis Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- yen- lion Life /CRS class MA CRS class Current -yr 179 expense Current-year depreciation OFFICE EQUIPMENT-NY 12/31/2015 35,905. 100. 15,905. 200 DB HY 5 35,905. LEASEHOLD IMP-NY — 06/05/2015 6 396. 3, 100. 63,396. 150 DB HY 15 63,396. LEASEHOLD IMP-FL J 09/25/2015 25,179. 100. 25,1/9. 150 DB HY 15 25,179. LEASEHOLD IMP-CA 06/26/2015 44,230. 100. 44,230. 150 DB HY 15 44,230. FURNITURE 8 FIX-FL 10/12/2015 1,776. 100. 3,179. 200 DB HY 7 1,716. FURNITURE 8 FIX-NY 07/01/2015 6,706. 100. 8,706. 200 DB HY 7 8,706. LEASEHOLD IMP-MET 07/0112015 10,000. 100. 10,000. 150 DB HY 15 10,000. Less: Retired Assets 340,193. 340,193. 340,192. 340,192. TOTALS 4,123,029. 1441147. 375,429. 2,326,210. 1,053,232. 1,896,429. 191,194. 43,106. 'Assets Retied SA 5X9027 1.000 866297 1608 26 EFTA00806430 NEXT MANAGEMENT LLC 2015 Depreciation 11-349560? Description of Property NEXT MANAGEMENT, LW GENERAL TRADE Ca BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % lig exp. reduc. in bass Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me• thod Con- Yen• lion Life /CRS class MA CRS class Current •yr 179 expense Current•year depreciation _OTHER THAN LISTED GROSS 4,463,222. 2,666,403. 2,193,424. 2,236,620. 43,196. LESS: RETIRED ASSETS 340,193. 340,193. 340,192. 340,192. SUBTOTAL: 4,123,029. 2,326,210. 1,953,232. 1,896,424. 43,196. LISTED PROPERTY GROSS LESS: RETIRED ASSETS SUBTOTAL: GROSS AMOUNTS 4,463,222. 2,666,403. 2,193,424. 2,236,620. Less: Retired Assets 340,193. 340,193. 340,202. 340,192. TOTALS 4,123,029. 2,326,210. 1,053,212. 1,896,429. 43,196. 'Assets Retired SA 5X9027 1.000 866297 1688 27 EFTA00806431 NEXT MANAGEMENT LLC 2015 Amortization 11-2495607 Description of Property NEXT_MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Asset description Date placed in service Cost or basis Beginning Accumulated amortization Ending Accumulated amortization Code Current•year Lite amortization - ORGANIZATION_COSTS 01/04/1989 26,951. 26,950. 26,950. 709 5.000 1 START -VP COSTS_ 07/16/1992 26,000. 26,000. 262_000. 195 5.000 START -UP COSTS_ 07/01/1992 25,000. 25,000. 252_000. 195 5.000 COP. NOT TO COMPETE 10/31/2010 3,000,000. 513413. 2,033413. 297 15.000 200,000. ORGANIZATION COSTS 06/15/2018 15,790. 624. 709 15.000 614. Less: Retired Assets TOTALS 2 091 741 911, 221 I III 897 200.614 ' Assets Retired SA 829026 14000 866297 1608 28 EFTA00806432 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Assei description Date Placed in Smvice AMT basis for depreciation _ AMT accumulated depreciation AMT me- *hod AMT conven• lion AMT life AMT depreciation deduclion Regular depreciation deduction Post•86 depreciation adjustment Leased pers. prop. preference Real property preference OFFICE EQUIPMENT 09/31/1991 12,526. 12,526. HY 6.000 COMPUTER EQUIPMENT 10/31/1991 25,041. _182042, HY 6.000 OFFICE EQUIPMENT 01/04/1989 12,215. 14,719. HY 6.000 COMPUTER 01/04/1989 47,819. 57,623. HY 6.000 LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 25,209. HY 6.000 COMPUTER EQUIPMENT 01/31/1992 8,539. 9,539. HY 5.000 PRINTER 02/26/1993 4,241. 4,240. HQ 6.000 OFFICE EQUIPMENT 05/10/1993 2,392. 2,392. HQ 6.000 OFFICE EQUIPMENT 10/01/1993 2,454. 2,454. MQ 6.000 COMPUTER EQUIPMENT 11/01/1993 13,534. 13,534. MQ 6.000 OFFICE EQUIPMENT 06/01/1993 2,500. 2,500. MQ 6.000 LEASEHOLD IMPROV(NYI 02/24/1994 8,179. 4,259. S/L 194 39.000 204. 210. 6. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 1,201. S/L MI 39.000 58. 59. 1. LHI INYI 07/31/1994 10,964. 5,606. S/L 194 39.000 274. 241. 7. LHI INYI 04/31/1994 32,074. 16,341. S/L 194 39.000 802. 822. 20. LHI INYI 10/30/1994 11,325. 5,719. S/L NM 39.000 283. 290. 7. LHI INYI 11/30/1994 12,425. 6,259. S/L NM 39.000 111. 319. 8. OFFICE EQUIPMENT 07/01/1995 55,855. 55,855. HY 6.000 LEASEHOLD IMPROVE 07/01/1995 12,155. 5,915. S/L KM 39.000 304. 312. 8. LEASEHOLD IMPROVE 07/01/1995 11,499. 5,585. S/L 181 39.000 287. 295. 8. FURNITURE 6 FIXTURES 07/01/1995 31,451. 31,451. HY 10.000 FURNITURE 6 FIXTURES 07/01/1995 16,832. 16,831. HY 10.000 OFFICE EQUIPMENT(NYI 07/01/1996 45,326. 45,252. HY 6.000 OFFICE EQUIPMENT(FLI 07/01/1996 10,695. 10,695. HY 6.000 LEASEHOLD IMPROV(NYI 07/01/1996 54,075. 24,956. S/L KM 40.000 1,352. 1,386. 34. FURNITURE 6 FIXTURES 07/01/1996 18,374. 18,174. HY 10.000 FURNITURE 6 FIXTURES 07/01/1996 16,528. 16,528. HY 10.000 FURNITURE 6 FIXTURES 07/01/1996 6,256. 6,256. HY 10.000 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 24,180. S/L NM 40.000 1,385. 1,420. 35. OFFICE FURNITURE 07/01/1997 8,872. HY OFFICE FURNITURE 07/01/1997 1,952. HY LEASEHOLD IMPROV. 11/22/1998 11,700. 4,725. SA KM 40.000 293. 300. 7. LEASEHOLD IMPROV. 08/28/1998 29,553. 12,102. S/L NM 40.000 239. 758. 19. FURNITURE 6 FIXTURES 07/01/1998 12,254. 12,254. HY 10.000 FURNITURE 6 FIXTURES 07/01/1998 21,639. 21,637. HY 10.000 FURNITURE 6 FIXTURES 07/01/1998 13,092. 13,091. HY 10.000 OFFICE EQUIPMENT 07/01/1998 126,474. 126,473. HY 6.000 Less: Retired Assets TOTALS SA 5%9034 1.000 R66297 1608 • Assets Retired 29 EFTA00806433 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Asset description Date Placed in Service AMT basis for depreciation AMT accumulated depreciation AMT me- thod AMT conven• lion AMT life AMT depreciation deduclion Regular depreciation deduction Post•86 depreciation adjustment Leased pers. prop. preference Real property preference OFFICE EQUIPMENT 07/09/1998 77,109. 77,109, HY 6.000 • COMPUTER 01/28/1998 236,963. 236,963. HY 6.000 • COMPUTER 01/28/1998 67,330. 67430. HY 6.000 • COMPUTER 01/28/1998 35,900. 35,900. HY 6.000 LEASEHOLD IMPROV(NYI 07/01/1999 112,785. 44,707. S/L NM 39.000 2,892. 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 66,766. HY 7.000 FURNITURE 6 F (FL) 07/01/1999 1,951. 875. 150 DB HY 40.000 1,078. -1,078. COMPUTER (NYI 07/01/1999 202,098. 202,097. HY 6.000 COMPUTER (FLI 07/01/1999 45,399. 45,199. HY 6.000 COMPUTER (CAI 07/01/1999 69,509. 69,509. HY 6.000 COMPUTER (NYI 07/01/1997 38,206. 38,206. HY 6.000 COMPUTER (FLI 07/01/1997 12,929. 12,929. HY 6.000 COMPUTER (NYI 07/01/2000 174,341. 174,341. HY 5.000 COMPUTER (FLI 07/01/2000 66,827. 66,827. HY 5.000 COMPUTER (CAI 07/01/2000 66,027. 66,027. HY 5.000 LEASEHOLD IMPROV(NYI 07/01/2000 37,330. 13,837. S/L 144 39.000 957. 957. FURNITURE 6 F (NY) 07/01/2000 39,506. 39,504. HY 7.000 COMPUTER - NY 08/06/2003 792. 791. HY 5.000 OFFICE EQUIPMENT -NY 08/22/2003 4,022. 4,021. HY 5.000 OFFICE EQUIP/ea - FL 04/09/2003 8,014. 8,014. HY 5.000 OFFICE EQUIP-FL 04/09/2003 1,894. 3,894. HY 5.000 OFFICE EQUIP-FL 04/09/2003 10,500. 10,500. HY 5.000 OFFICE EQUIP-FL 06/01/2003 2,004. 2,001. HY 5.000 OFFICE EQUIP-FL 06/30/2003 940. 939. HY 5.000 OFFICE EQUIP-FL 08/06/2003 1,009. 1,049. HY 5.000 OFFICE EQUIP-FL 10/02/2003 1,091. 1,091. HY 5.000 OFFICE EQUIP-FL 10/08/2003 819. 818. HY 5.000 OFFICE EQUIP-FL 11/18/2003 1,677. 1,671. HY 5.000 OFFICE EQUIP-FL 12/31/2003 1,798. 1,798. HY 5.000 OFFICE EQUIP-CAL 04/09/2003 12,048. 12,048. HY 5.000 OFFICE EQUIP-CAL 04/16/2003 10,500. 10,500. HY 5.000 OFFICE EQUIP-CAL 06/30/2003 1,008. 3,008. HY 5.000 OFFICE EQUIP-CAL 12/31/2003 1,210. 1,209. HY 5.000 LEASEHOLD IMPRO-NY 06/22/2003 51,746. 15,116. S/L RM 39.000 1,327. 1,327. LEASEHOLD IMPRO-NY 07/24/2003 13,040. 3,827. S/L 144 39.000 334. 334. LEASEHOLD IMPRO-NY 08/12/2003 8,879. 2,594. S/L KM 39.000 228. 228. LEASEHOLD IMPRO-NY 09/18/2003 64,217. 18,598. S/L IN 39.000 1,647. 1,647. Less: Retired Assets TOTALS SA 5%0034 1.000 R66297 1608 • Assets Retired 30 EFTA00806434 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Leased-- pers. prop. preference Real property preference Asses description Date Placed in Service AMT basis for depreciation AMT accumulated depreciation AMT me- thod AMT conven• lion AMT life AMT depreciation deduction Regular depreciation deduction Pest-86 depreciation adjustment LEASEHOLD IMPRO-NY 10/28/2003 8,38B. 2,410, SLL 1,74 39.000 215. 215. LEASEHOLD IMPRO-NY II/19620_03 20_,_990_. 5,_9.85. SLL 674 39.000 538. 538. PURNITURE4FIX- NY 11/25/2003 1,799. 1,799. HY 7.000 PURNITURE4FIX- NY 12/04/2003 14,013. 14,012. HY 7.000 PURNITURE4FIX- NY 08/08/2003 24,271. 24,269. HY 7.000 PURNITURE4FIX- NY 09/26/2003 1,937. 1,937. HY 7.000 PURNITURE4FIX- NY 12/08/2003 1,637. 3,637. HY 7.000 COMPUTER - NY 04/01/2003 32,550. 32,550. HY 5.000 LEASEHOLD IMPROVE-NY 01/16/2004 2,824. 789. S/L 1,24 39.000 72. 72. LEASEHOLD IMPROVE-HY 02/17/2004 1,841. 1,076. S/L WI 39.000 99. 99. LEASEHOLD IMPROVE-HY 12/31/2004 12,500. 8,754. S/L HY 15.000 833. 831. LEASEHOLD IMP-CAL 02/24/2005 6,000. 4,052. 150 DB HY 15.000 155. 355. LEASEHOLD IMP- CAL 01/21/2005 800. 539. 150 DB HY 15.000 41. 47. LEASEHOLD IMP-NY 02/21/2006 10,485. 6,461. 150 DB HY 15.000 619. 619. LEASEHOLD IMP-NY 01/01/2006 21,461. 13,223. 150 DB HY 15.000 1,266. 1,266. LEASEHOLD IMP-NY 02/12/2008 5,868. 2,688. S/L HQ 15.000 191. 391. LEASEHOLD IMP-NY _1211912008 8,000. 3,270. Sirl. HQ 15.000 533. 531. Less: Retired Assets 340,193. 340,193. TOTALS 2,178,163. 1,802,632. 19,723. 18,805. -918. SA 5%9034 1.000 R66297 1608 • Assets Retired 31 EFTA00806435 NEXT MANAGEMENT LLC 2015 ACE Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed in service ACE basis for depreciation ACE accumulated depreciation Me- thod Orig. Life Rem. ACE Life _ depreciation me— depreciation used ACE adjustment OFFICE EQUIPMENT 08/31/1991 12,526. 12.526. SL 5.000 5.000j_ COMPUTER EQUIPMENT 10/31/1992 18,041. 18,041. SL 5.000 5.000 FURNITURE4FIXTURES 05/31/1991 20,823. 20.823. SL 7.000 7.000 OFFICE EQUIPMENT 01/04/1989 12,215. 10,656. SL 5.000 4.500 COMPUTER 01/04/1989 47,919. 42,504. SL 5.000 4.500 LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 25,209. SL 4.000 3.500 FURNITURE 4 FIXTURES 01/04/1989 26,013. 24,012. SL 7.000 6.500 FURNITURE4FIXTURES 07/01/1990 1,076. 924. SL 7.000 7.000 COMPUTER EQUIPMENT 01/31/1992 8,539. 8,539. SL 5.000 5.000 PRINTER 02/26/1993 4,241. 4,241. SL 6.000 6.000 OFFICE EQUIPMENT 05/10/1993 2,382. 2,365. SL 6.000 6.000 OFFICE EQUIPMENT 10/01/1993 2,454. 2,403. SL 6.000 6.000 COMPUTER EQUIPMENT 11/01/1993 13,534. 13,442. SL 6.000 6.000 OFFICE EQUIPMENT 06/01/1993 2,500. 2,500. SL 6.000 6.000 LEASEHOLD IMPROV(NYI 02/28/1994 8,179. 4,259. SL 39.000 39.000 204. 204. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 1,201. SL 39.000 39.000 58. 58. LHI IHY) 07/31/1994 10,964. 5,606. SL 39.000 39.000 274. 2/4. LHI INY) 08/31/1994 12,0)4. 16,342. SL 39.000 39.000 802. 802. LHI INY) 10/30/1994 11,325. 5,719. SL 39.000 39.000 283. 283. LHI INY) 11/30/1994 12,425. 6,259. SL 39.000 39.000 311. 311. OFFICE EQUIPMENT 07/01/1995 55,855. 53,527. SL 6.000 6.000 LEASEHOLD IMPROVE 07/01/1995 12,155. 5,915. SL 39.000 39.000 304. 304. LEASEHOLD IMPROVE 0.7101/1995_ 11,498. 5,585. SL 39.000 39.000 267. 287. FURNITURE 4 FIXTURES 0.7101/1995_ 31,451. 302665. SL 10.000 10.000 FURNITURE 4 FIXTURES 0.7101/1995_ 162612. 162412. SL 10.000 10.000 OFFICE EQUIPMENT(NYI 07/01/1996 45,326. 45,252. SL 6.000 6.000 OFFICE EQUIPMENT(FLI 07/01/1996 10.695. 10,695. SL 6.000 6.000 LEASEHOLD IMPROV(NYI 0.7/01/199.6_ 54,075. 24,956. SL 40.000 40.000 1,352. 1,352. FURNITURE 4 FIXTURES 0.7101/199.6_ 18,314. 182314. SL 10.000 10.000 FURNITURE 4 FIXTURES 07/01/1996 16,528. 16,528. SL 10.000 10.000 FURNITURE 4 FIXTURES 07/01/1996 6,256. 6,256. SL 10.000 10.000 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 24,180. SL 40.000 40.000 1,385. 1,385. LEASEHOLD IMPROV. 11/22/1998 11,700. 4,725. SL 40.000 40.000 293. 291. LEASEHOLD IMPROV. 08/28/1998 29,553. 12,101. SL 40.000 40.000 719. 719. FURNITURE 4 FIXTURES 07/01/1998 12,254. 12,254. SL 10.000 10.000 FURNITURE 4 FIXTURES 07/01/1998 21,619. 21,617. SL 10.000 10.000 Less: Retired Assets TOTALS 'Assets Retired SA 5)(9033 1.000 CORPORATE PARTNERS' SHARE (FROM SCHEDULE K) "In certain circumstances, this may be regular tax depreciation rather than AMT depreciation. 866297 1608 32 EFTA00806436 NEXT MANAGEMENT LLC 2015 ACE Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed in service ACE basis for depreciation ACE accumulated depreciation Me• thod Orig. Lite Rem. Life ACE depreciation AMT•• depreciation used ACE adjustment FURNITURE 6 FIXTURES 07/01/1998 11,092. 13,091. SL 10.000 10.000 OFFICE EQUIPMENT 07/01/1998 126,4/4. 124,471. SL 6.000 6.000 OFFICE EQUIPMENT 07/01/1998 17,109. 17,109. SL 6.000 6.000± • COMPUTER 01/28/1998 236,961. 236,961. SL 6.000 6.000 • COMPUTER 01/28/1998 67,330. 67,330. SL 6.000 6.000 • COMPUTER 01/28/1998 15,900. 15,900. SL 6.000 6.000 LEASEHOLD IHPROV(NYI 07/01/1999 112,785. 44,707. SL 39.000 39.000 2,892. 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 66,766. SL 1.000 7.000 FURNITURE 6 F (FL) 07/01/1999 1,953. 875. DB 40.000 40.000 1,078. 1,078. COMPUTER (NYI 07/01/1999 202,098. 202,097. SL 6.000 6.000 COMPUTER (FLI 07/01/1999 45,399. 45,399. SL 6.000 6.000 COMPUTER (CAI 07/01/1999 69,509. 69,509. SL 6.000 6.000 COMPUTER (NYI 07/01/1997 38,206. 38,206. SL 6.000 6.000 COMPUTER (FLI 07/01/1997 12,929. 12,929. SL 6.000 6.000 COMPUTER-96'RETIRED 07/01/1996 -19,757. SL COMPUTER (NYI 07/01/2000 174,341. 174,341. SL 5.000 5.000 COMPUTER (FLI 07/01/2000 66,827. 66,827. SL 5.000 5.000 COMPUTER (CAI 07/01/2000 66,027. 66,027. SL 5.000 5.000 LEASEHOLD IHPROV(NYI 07/01/2000 17,330. 13,817. SL 39.000 39.000 957. 957. FURNITURE 6 F INT) 07/01/2000 19,506. 39,504. SL 7.000 7.000 COMPUTER - NY 08/06/2003 792. /91. 200DB 5.000 OFFICE EQUIPMENT -NY 08/22/2003 4,022. 4,021. 200DB 5.000 OFFICE comma - FL 04/09/2003 8,014. 8,014. 200DB 5.000 OFFICE EQUIP-FL 04/09/2003 3,894. 3,894. 200DB 5.000 OFFICE EQUIP-FL 04/09/2003 10,500. 10,500. 200DB 5.000 OFFICE EQUIP-FL 06/01/2003 4,088. 2,043. 200DB 5.000 OFFICE EQUIP-FL 06/30/2003 940. 919. 200DB 5.000 OFFICE EQUIP-FL 08/06/2003 2,098. 1,049. 200DB 5.000 OFFICE_EQUIP-FL 10/02/2003 2,187. 1,093. 200DB 5.000 OFFICE EQUIP-FL 10/08/2003 819. 818. 200DB 5.000 OFFICE EQUIP-FL 11/18/2003 3,155. 1,677. 200DB 5.000 OFFICE EQUIP-FL 12/31/2003 1,798. 1,798. 200DB 5.000 OFFICE EQUIP-CAL 04/09/2003 17,211. 12,048. 200DB 5.000 OFFICE EQUIP-CAL 04/16/2003 10,500. 10,500. 200DB 5.000 OFFICE EQUIP-CAL 06/30/2003 3,008. 3,008. 200DB 5.000 OFFICE EQUIP-CAL 12/31/2003 2,420. 1,209. 200DB 5.000 Less: Retired Assets _I TOTALS 'Assets Retired SA 5)(9033 1.000 CORPORATE PARTNERS' SHARE (FROM SCHEDULE K) •'In certain circumstances, this may be regular tax depreciation rather than AMT depreciation. 866297 1608 33 EFTA00806437 NEXT MANAGEMENT LLC 2015 ACE Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Asset description Date placed in service ACE basis for depreciation ACE accumulated depreciation Me• thod Orig. Life Rem. Life ACE depreciation me- depreciation used ACE adjustment LEASEHOLD IMPRO-NY 06/22/2003 51,746. 15,316. SL 39.000 1,327. 1,327. LEASEHOLD IMPRO-NY 01/24/2003 26,080. 3,827. SL 39.000 33)1„ 334. LEASEHOLD IMPRO-NY 08/12/2003 8,879. 2,594. SL 39.000 228_._ _228. LEASEHOLD IMPRO-NY 09/18/2003 64,217. 18,598. SL 39,000 1.00. LSI. LEASEHOLD IMPRO-NY 10/28/2003 8,383. 2,410. SL _ 39,_000 _215_. 215. LEASEHOLD IMPRO-NY 11/19/2003 20,990. 5,985. SL 39.000 538. 538. FURNITURE4FIX- NY 11/25/2003 1,799. 1,799. 200DB 7.000 FURNITURE4FIX- NY 12/04/2003 14,013. 14,012. 200DB 7.000 FURNITURE4FIX- NY 08/08/2003 24.211. 24,269. 200DB 7.000 FURNITURE4FIX- NY 09/26/2003 1,937. 1,937. 200DB 7.000 FURNITURE4FIX- NY 12/08/2003 3,637. 3,637. 200DB 7.000 COMPUTER - NY 04/01/2003 12,550. 12,550. 200DB 5.000 LEASEHOLD IMPROVE-NY 01/16/2004 2,824. 789. SL 39.000 72. 72. LEASEHOLD IMPROVE-NY 02/17/2004 3,843. 1,076. SL 39.000 99. 99. LEASEHOLD IMPROVE-NY 12/31/2004 12.500. 8,754. SL 15.000 811. 811. LEASEHOLD IMP-CAL 02/24/2005 6,000. 4,052. DB 15.000 15.000 355. 355. LEASEHOLD IMP- CAL 01/21/2005 800. 519. DB 15.000 15.000 47. 47. LEASEHOLD IMP-NY 02/21/2006 10,485. 6,461. DB 15.000 15.000 619. 619. LEASEHOLD IMP-NY 03/01/200.6 21,461. 13,223. DB 15.000 15.000 1,266. 1,_26_6. LEASEHOLD IMP-NY 02/12/200.8 5,868. 2,688. SL 15.000 391. 391. LEASEHOLD IMP-NY 12/19/2008 8,000. 3,270. SL 15.000 511. 511. Less: Retired Assets 340,191. 340,193. TOTALS 2,220.712. 1.825,116. 19.723. 19,721. 'Assets Retired SA 5)(9033 LOGO CORPORATE PARTNERS' SHARE (FROM SCHEDULE K) "In certain circumstances, this may be regular tax depreciation rather than AMT depreciation. R66297 1608 34 EFTA00806438 NEXT MANAGEMENT, LLC FORM 1065 SUPPORTING SCHEDULES 13-3495607 LINE 4 - PAGE 1 - ORD INCOME(LOSS) FROM OTH PTNRSHPS AND FIDUCIARIES FROM TWO TWELVE MANAGEMENT, LLC TOTAL ORDINARY INCOME(LOSS) FROM OTHER PTNRSHPS AND FIDUCIARIES LINE 7 - PAGE 1 - OTHER INCOME(LOSS) FOREIGN EXCHANGE LOSS TOTAL OTHER INCOME(LOSS) LINE 14 - PAGE 1 - TAXES NYC UNINCORPORATED BUSINESS TAX PAYROLL TAXES NY COMMERCIAL RENT TAX FL COMMERCIAL RENT TAX CA LLC TAX BEVERLY HILLS TAX LA TAX TOTAL TAXES LINE 20 - SUMMARY OF TRAVEL, MEALS AND ENTERTAINMENT GROSS MEALS AND ENTERTAINMENT LESS 50% LIMITATION TO SCH M-1 NET MEALS & ENTERTAINMENT TOTAL LINE 20 - PAGE 1 - OTHER DEDUCTIONS AMORTIZATION TRAVEL, MEALS, AND ENTERTAINMENT INSURANCE EXPENSE OFFICE SUPPLIES AND EXPENSES PRINTING EXPENSE SCOUTING EXPENSE COMPUTER EXPENSE CLEANING SERVICE UTILITIES POSTAGE MISCELLANEOUS BANK CHARGES 248,456. 248,456. -234,496. -234,496. 152,391. 578,105. 21,486. 1,853. 800. 14,500. 405. 769,540. 181,584. 90,792. 90,792. 90,792. 200,614. 90,792. 112,776. 105,286. 43,338. 9,354. 108,201. 40,953. 34,652. 11,389. 104,822. 57,683. MUNI31A00 R66297 1608 CONTINUED ON NEXT PAGE STATEMENT 1 35 EFTA00806439 NEXT MANAGEMENT, LLC FORM 1065 SUPPORTING SCHEDULES LINE 20 - PAGE 1 - OTHER DEDUCTIONS ( 13-3495607 PUBLICATIONS & SUBSCRIPTIONS 12,677. TRAVEL 803,503. ADVERTISING AND PROMOTION 259,861. COMMISSIONS EXPENSE 2,002,456. PROFESSIONAL FEES 240,861. TELEPHONE EXPENSE 214,004. CONSULTING FEES 640,280. CONTEST EXPENSE 5,550. PAYROLL PROCESSING EXPENSE 14,299. OVERHEAD REIMBURSEMENT -1,470,551. MISCELLANEOUS MODEL EXPENSES 55,856. PROMOTIONAL MODEL EXPENSES 100,004. LITIGATION SETTLEMENT 45,632. CALIFORNIA LLC FEE 6,000. NYS LLC FEE 3,000. ORGANIZATION COSTS 5,000. TOTAL OTHER DEDUCTIONS 3,858,292. SCHEDULE K - LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 17,910. TOTAL INTEREST INCOME 17,910. SCHEDULE K - LINE 12 - SECTION 179 DEDUCTION TRADE/BUSINESS ACTIVITIES 191,194. TOTAL SECTION 179 DEDUCTION 191,194. STATEMENT 2 MUNI31A00 R66297 1608 36 EFTA00806440 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065 SUPPORTING SCHEDULES SCHEDULE K - LINE 13A - CHARITABLE CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS - 50% LIMITATION FROM TWO TWELVE MANAGEMENT, LLC 5,160. CHARITABLE CONTRIBUTIONS 98,175. TOTAL CASH CHARITABLE CONTRIBUTIONS - 50% LIMITATION 103,335. TOTAL CHARITABLE CONTRIBUTIONS 103,335. SCHEDULE K - LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY TRADE/BUSINESS ACTIVITIES -918. FROM TWO TWELVE MANAGEMENT, LLC -58. TOTAL DEPRECIATION ADJUSTMENT ON PROPERTY -976. SCHEDULE K - LINE 18C - NONDEDUCTIBLE EXPENSES FROM TWO TWELVE MANAGEMENT, LLC TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE PORTION TOTAL NONDEDUCTIBLE EXPENSES 27,762. 27,762. 90,792. 118,554. MUNI31A00 STATEMENT 3 R66297 1608 37 EFTA00806441 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065, SUPPORTING SCHEDULES SCHEDULE L - LINE 6 - OTHER CURRENT ASSETS PREPAID EXPENSES DEFERRED TAX ASSET- CURRENT TOTAL OTHER CURRENT ASSETS SCHEDULE L - LINE 8 - OTHER INVESTMENTS INVESTMENT IN TWO TWELVE TOTAL OTHER INVESTMENTS SCHEDULE L - LINE 13 - OTHER ASSETS BEGINNING ENDING 213,894. 159,432. 15,000. 17,000. 228,894. 176,432. BEGINNING ENDING -214,609. 83,446. -214,609. 83,446. BEGINNING ENDING DEPOSITS 29,606. 43,931. RESTRICTED CASH 40,000. 40,000. DUE FROM AFFILIATES 774,693. 1,313,624. DUE FROM MODELS 1,464,108. 1,607,052. DEFERRED TAX BENEFIT-LONG TERM 53,000. 47,000. TOTAL OTHER ASSETS 2,361,407. 3,051,607. SCHEDULE L - LINE 17 - OTHER CURRENT LIABILITIES BEGINNING ENDING ACCRUED EXPENSES TOTAL OTHER CURRENT LIABILITIES SCHEDULE L - LINE 20 - OTHER LIABILITIES ADVANCES FROM AFFILIATES DUE TO RELATED PARTY DEFERRED RENT-LONG TERM TOTAL OTHER LIABILITIES 1,304,038. 1,786,832. 1,304,038. 1,786,832. BEGINNING ENDING 21,519. 1,223,293. 69,223. 8,342. 1,476,782. 135,009. 1,314,035. 1,620,133. MUNI31A00 STATEMENT 4 R66297 1608 38 EFTA00806442 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065, SCHEDULE M-2, SUPPORTING SCHEDULES SCHEDULE M-2 - LINE 6A - CASH DISTRIBUTIONS CASH DISTRIBUTIONS 3,000,000. TOTAL CASH DISTRIBUTIONS 3,000,000. STATEMENT 5 MUNI31A00 R66297 1608 39 EFTA00806443 NEXT MANAGEMENT, :.LC 11-340607 SCHEDULE M-3, PART II DETAIL LINE 7 - INCOME (LOSS) FROM U.S. PARTNERSHIPS EAT EAT PROFIT-SHARING LOSS-SHARING INCOME (LOSS) TEMPORARY PERMANENT NAME EIN PERCENTAGE PERCENTAGE PER ENCORE 571a DIFFERENCE DIFFERENCE TWO TWELVE MANAGEMENT LLC INCOME (LOSS( PER TAW RETURN 20-1354409 80.000 80.000 298,055. 3,164. -59,919. 243,296. TOTAL 290,055. 5,160. -59,919. 243,296. R66297 1608 STATEMENT 6 40 EFTA00806444 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART II DETAIL LINE 25 - OTHER INCOME (LOSS) AND EXPENSE/DEDUCTION ITEMS WITH NO DIFFERENCES GROSS RECEIPTS 20,059,894. OPERATING EXPENSES -5,196,855. TOTAL 14,863,039. STATEMENT 7 R66297 1608 41 EFTA00806445 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART III DETAIL LINE 30 - OTHER EXPENSE/DEDUCTION ITEMS WITH DIFFERENCES EXPENSE TEMPORARY PERMANENT DEDUCTION DESCRIPTION PER INCOME STMT DIFFERENCE DIFFERENCE PER TAX RETURN RENTAL EXPENSE - STRAIGHTLINING OF LEASE 815,962. -66,152. 749,810. SALARIES 11,415,658. -50,801. 11,364,857. ORGANIZATION COSTS 5,000. 5,000. TOTAL 12,231,620. -111,953. 12,119,667. R66297 1608 42 STATEMENT 8 EFTA00806446 NEXT MANAGEMENT, LLC 13-3495607 PASS-THROUGH ENTITIES SUPPORTING SCHEDULES TWO TWELVE MANAGEMENT, LLC PASS-THROUGH ENTITIES - LINE 13A-G CHARITABLE CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 5,160. TOTAL CASH CHARITABLE CONTRIBUTIONS 5,160. TOTAL CHARITABLE CONTRIBUTIONS 5,160. PASS-THROUGH ENTITIES - LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 27,762. TOTAL NONDEDUCTIBLE EXPENSES 27,762. STATEMENT 9 MUNI31A00 R66297 1608 43 EFTA00806447 Schedule K-1, Item L - Analysis of Partners Capital Accounts Penner Number A. Capital Account at Beginning of Year B.Capnideomnbuted During Year aPannetWSInamsolSch. M•2, Unes3,4,and7 D.WithdrawalsalW Distributions E. Capital Account at End of Year 1 777 664. 974 394. 1 260 000. 492 058. 2 573,991. 719,196. 930,000. 363,187. 3 499 929. 626 397. 810 000. 316 326. MIMS 1,851,584. 2,319,987. 3,000,000. 1,171,571. JSA 5P9040 1.003 NEXT MANAGEMENT, LLC R66297 1608 13-3495607 44 EFTA00806448 NEXT MANAGEMENT, LLC 13-3495607 Partner Summary Partner Number Partner Name Partner . Number Beginning Capital Capital Contribution Property Contribution m Cash Distributions Property Distribution 737 Distributions I CLAXON INC 11-3508513 T27,664. 2,260,000. 2 PARTNERSHIP HOLDING CORP. 11-3501977 571,991. 930,000. 3 THE WILCOR CROUP, INC. 21-3682060 499,929. 010,000. To ale : ,:: : 4. J. 940.940. JSA 589040 1.000 866297 1608 45 EFTA00806449 Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service 2015 For calendar year 2015. or tax year beginning 2015 ending 20 Partner's Share of Income, Deductions, Credits, etc. ► See back of form and separate Instructions. Final K-I 1 I Amended Kil 651113 OMB No. 1505.0123 Part III Partner's Share of Current Year income, Deductions. Credits and Other items 1 Ordinary business income (Ices) 1,014,678. 2 Net rental real estate income (loss) IS Credits 3 Other net rental Mcome (loss) 16 Foreign transactions Part I Information About the Partnership A Pan nership's employer identification number 13-3495607 B Partnership's name. address. city, state, and 2IP code Guaranteed payments NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 C IRS Center where partnership Med return EF / LE D 0 Check if this is a publicly traded pannershp (PTP) 5 6e Interest income Ordinary dividends 7,522. 6b Qualified cavklends 7 Royalties 8 Net short-term capital gain pass) Part Information About the Partner ea Net long-term capital gain (loss) 17 A* Alternative minimum ten (NM) RPM —410. E Partners identifying number 13-3508513 F Partner's name, address. eq. state. and ZIP code CLAXON INC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 O LX1 General partner or LLC U Limited partner or other LLC member-manager member H 5] Domestic partner El Foreign partner 11 What type of entity is the partner? CORPORATION 12 If this penner is a retirement plan (lRNSEPIKeogIVelc.). check here K J Partners share ol profit. bee. and Capital (see instructions): 1 Beginning Profit 42.000000 Loss 42.000000 Capital 42.000000 K Partner's share of liabilities at year end: Non recourse $ Qualified nonrecourse financing. $ Recourse $ Ending 42.000000 % 42.000000 % 42.000000 % 6,117, 989. 621,752. 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income (loss) 18 C* Tax-exempt income and nondeductible expenses 49,793. 12 * 13 A* Section 179 deduction Other deductions 80,301. 43,4O1. 19 A Distributions 1,260,000. 20 A 14 Seff-employment earnings (loss) Other information 7,522. L Partners capital account anaimis: Beginning capital account Capital contributed during the year $ Current year increase (decrease) $ 777,664. 974,394. Withdrawals a distributions . . . . $ ( 1,260,000. ) Ending capital account $ 492,058. Tax basis il GAAP E Section 700(0) book Other (explain) 1.1 Did the partner contribute properly with a built-in gain or loss? EN° K Yes 'See attached statement for additional information. For IRS Use Only If 'Yes.' attach statement (see instructions) For Paperwork Reduction Ml Notice. see Instructions for Form 1065. JSA P12O0 1.000 R66297 1608 IRS.govitorm1065 Schedule K-1 (Form 1065) 2015 46 EFTA00806450 Schedule K-1 (Form 1065) 2015 PARTNER # 1 CLAXON INC Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions 1. Ordinary business income (loss). Determine whether the income (loss) is Code passive or nonpassive and enter on your return as follows. L Empowerment zone Report on employment credit Passive loss See the Partners Instructions PA Credit for increasing research Passive income Schedule E. one 28. column (g) activities Nonpassive loss Schedule E. the 28. column (h) N Credit for employer social Non pass-ve income Schedule E. line 28. column 0) security and Medicare taxes partners who file Form 1040. for your income tax return. Report on See the Partners Instructions 2. Net rental real estate income (loss) See the Partners Instructions O Backup withholdrig 3. Other net rental income (loss) P Other credits Net Income Schedule E. the 28. column (g) 16. Foreign transactions Net loss See the Partners Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28. column 0) possession 5. Interest Income Form 1040. Ine 8a B Gross income from M sources }- Form 1116. Pan I 6a. Ordinary dividends Form 1040. linage C Gross income sourced at 6b. Qualified dividends Form 1040. ine9b partner level 7. Royalties Schedule E. line 4 Foreign gross income sourced at partnerslup level 8. Net short-term capital gain (loss) Schedule D. line Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form 1116. Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet. line 4 F Other (Schedule D instructions) Deductions allocated and apportioned at partner level 0 Interest expense Form 1116. Part I 9c. Unrecaptured section 1250 gain See the Partners Instructions 10. Net section 1231 gain (loss) See the Partners Instructions H Other Form 1116. Pan I Deductions allocated and apportioned at partnership levet to foreign source 11. Other income (loss) income Code A Other portfolio income floss) See the Partners Instructions B Involuntary conversions See the Partner's Instructions I Passive categcry J General category Form 1116. Part I K Other C Sec. 1256 contracts /1 straddles Form 6781. Mel 0 Mining exploration poets recapture See Pub. 535 Other information L Total foreign taxes paid Form 1116. Pan II E Cancellation of debt Form 1040. line 21 or Form 982 IA Total foreign taxes accrued Form 1116. Pan II F Other income (loss) See the Partners Instructions N Reduction in taxes available far credit Form 1116. line 12 12. Section 179 deduction See the Partners Instructions 0 Foreign trading gross receipts Form 8873 13. Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) 0 Other foreign transactions See the Partners Instructions B Cash contributions (30%) 17. Alternative minimum tax (MAT) items C Noncash contributions (50%) A Post-1986 depreciation adjustment Noncash contributions (30%) See the Partners B Adjusted gait or loss See the Partner's E Capital gain property to a 50% Instructions C Depletion (other than al & gas) Instructions and organization (30%) D Oil, gas. & geothermal - gross income the Instructions for F Capital gain properly (20%) E Oil, gas. & geothermal deductions Form 6251 0 Contributions (IOC%) F Other AMT items H Investment interest expense Form 4952. Mel 18. Tax-exempt Income and nondeductib expenses I Deductions royalty income Schedule E. Ire 19 A Tax-exempt interest income Form 1040. line 80 J Section 59(e)(2)npencrures See the Partners Instructions B Other tax-exempt ncome See the Partners Instructions K Deductions portfolio (2% floor) Schedule A. line 23 C Nondeductible expenses See the Partners Instructions L Deductions port-lobo (other) Schedule A. line 28 19. Distributions NI Amounts paid for medical insurance Schedule A. fine I ix Fan 1040. ine 29 A Cash and marketable securties N Educational assistance benefits See the Partners Instructions 0 Dependent care benefits Form 2441. line 12 B Distribution subject to section 737 See the Partners Instructions C Other property P Preproductwe penod expenses See the Partners Instructions 0 Commercial rentalcahon deduction 20. Other Information from rental real estate activities See Form 8582 instructions R Pensions and IRAs See the Partners Instructions S Reforestation expense deduction See the Partners Instructions A Investment income Form 4952. line 4a B Investment expenses Form 4952. line C Fuel tax credit niormation Form 4136 T Domestic production wines Cs Qualified rehabinabon expenditures information See Form 8903 instructions U Qualified production amities income Form 8903. Ine 7b (other than rental real estate) See the Partners Instructions E Basis of energy property See the Partners Instructions V Employers Form W-2 wages Form 8903. line 17 W Other deductions See the Partners Instructions F Recapture ol low-income housing credit (section 420(5)) Form 8611. line 8 CI Recapture ol low-income housing 14. Sell-employment earnings (loss) credit (other) Form 8611. line 8 Note: If you have a section 179 deduction or any partner-level deductions. see the H Recapture ol investment credit See Form 4255 Partner's Instructions before oompletng Schedule SE. I Recapture of other credits See the Partners Instructions A Net earnings (loss) from J Look-back interest completed self-employment Schedule SE. Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partners Instructions K Look-back interest - income forecast C Gross non-farm income See the Partners Instructions method See Form 8866 15. Credits A Low-Income housing credit L Dispositions ol properly with section 179 deductions (section 420)(5)) from pre-2008 bur/dings B Low-Income housing credit NI Recapture ol section 179 deduction N Interest expense for corporate partners (other) from pre-2008 buldngs O Section 453(1)(3) information C Low-Income housing credit P Section 453A(c) information (section 420)(5)) from O Section 1260(b) information post-2007 buddngs D Low-Income housing credit See the Partners Instructions R Interest allocable to production expenditures ts. See the Partners r Instructions (other) from post-2007 buildings S CCF nonqualified vmhdrawals T Depletion information al and gas E Qualified rehabiudion expenditures (rental real estate) U Reserved V Unrelated business taxable income F Other rental real estate credits W Precontrbution gain floss) 0 Other rental credits X Section 108(i) information H Undistributed capital gains crecM Form 1040. line 73: check box a V Net investment income I Biofuel producer credit 2 Other information J Work opportunity credit See the Partners Instructions Jas K Disabled access credit SP ISM 1.000 R66297 1608 47 EFTA00806451 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 1 CLAXON INC ITEM L - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11 LESS: DEDUCTIONS FROM SCH. K-1, LINES 12, 13, 16L, AND 16M 1,022,200. 123,702. TOTAL INCOME PER SCHEDULE K-1 898,498. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT DEFERRED TAX EXPENSE SHAREHOLDER SALARIES RENT ESCALATION ADJUSTMENT NONDEDUCTIBLE EXPENSES 38,133. 1,680. 21,336. 27,784. 11,660. PLUS: INCOME RECORDED ON BOOKS, NOT INCL. ON SCH. K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 34,659. PLUS: DEDUCTIONS ON SCH. K-1, NOT CHARGED AGAINST BOOKS: AMORTIZATION DEPRECIATION 77,626. 64,204. TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR) 974,394. ITEM L - WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 1,260,000. TOTAL WITHDRAWALS AND DISTRIBUTIONS 1,260,000. LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 7,522. TOTAL INTEREST INCOME 7,522. LINE 12 - SECTION 179 EXPENSE DEDUCTION FROM TRADE/BUSINESS 80,301. TOTAL SECTION 179 EXPENSE DEDUCTION 80,301. 609000 1.000 STATEMENT 1 R66297 1608 48 EFTA00806452 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 1 CLAXON INC LINE 13 - OTHER DEDUCTIONS A CASH CONTRIBUTIONS (50%) FROM TRADE\BUSINESS 41,234. FROM PASS-THROUGH ENTITIES 2,167. TOTAL BOX A 43,401. LINE 17 - ALTERNATIVE MINIMUM TAX (AMT) ITEMS A POST-1986 DEPRECIATION ADJUSTMENT FROM OTHER (GENERAL BUSINESS) -386. FROM PASS-THROUGH ENTITIES -24. TOTAL BOX A -410. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 11,660. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 11,660. TRAVEL AND ENTERTAINMENT EXPENSE NONDEDUCTIBLE 38,133. TOTAL NONDEDUCTIBLE EXPENSES 49,793. STATEMENT 2 1509000 1.000 R66297 1608 49 EFTA00806453 PTA 1 CLAXON INC NEXT MANAGEMENT LLC 13-349560? chedule of Activities Type way Deposed Cal PTP Paseavough k TWO TWELVE MANAGEMENT, LLC P\T GEN TS NO NO NO YES B: NEXT MANAGEMENT, LLC PORTFOLIO NO NO NO NO C: NEXT MANAGEMENT, LLC GEN. T/B NO NO NO NO D: A B C D ---2 3 1 1 Ordinary business income (loss) 2 Nat rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 6b Qualified dividends 87 Royalties Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income floss) 100,352. 910,326. 7,522. Deductions 12 Section 179 deduction 13a-g Contributions 1314O Deductions related to portfolio income 13h Investment interest expense 131 Section 59(e)(2) expenditures 13I-v Other deductions 80,301. 2,167. 41,234. I 15e u 15a,c Low-income housing credit (section 42()1(5)) 15b,d Low-income housing credit (other) ()gratified rehabilitation expenditures (rental real estate) 151 Other rental real estate credits 15g Other rental credits 15h-p Other credits Foreign Transactions 16b Gross income from all sources 16c Gross income sourced at partner level 16d Foreign gross income (partnership level): Passive 16e Foreign gross income (partnership level): General categories 16f Foreign gross income (partnership level): Other 16g Deductions allocated and apponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner leveg: Other 16i Deductions allocated and apportioned (partnership level): Passive 16j Deductions allocated and apportioned (partnershp level): General calcgolios 16k Deductions allocated and apportioned fpannership leveg: Other 161 Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions Alternative Minimum Tax 17a Post-1986 depreciabsn adjustment 17b Adjusted gain or loss 17c Depletion (other than al and gas) 17d Gross Income from oil. gas. and geothermal 17e Deductions from oil, gas, and geothermal 17f Other MAT items -386. is 'A g ,.. 18a 18b Tax-exempt Interest income Other tax-exempt income 18c Nondeductible expenses 11.660. 38.133. S2 20a Investment income 20b Investment expenses 20c-x Other information 7,522. JSA 5P9011 1.000 866297 1608 50 EFTA00806454 NEXT MANAGEMENT, LLC 13-3495607 PARTNER ACTIVITIES DETAIL PARTNER # 1 CLAXON INC ACTIVITY: TWO TWELVE MANAGEMENT, LLC LINE 13A-G CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS A CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 2,167. TOTAL CHARITABLE CONTRIBUTIONS 2,167. LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 11,660. TOTAL NONDEDUCTIBLE EXPENSES 11,660. 1509000 1.000 STATEMENT 1 R66297 1608 51 EFTA00806455 Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service 2015 For calendar year 2015. or tax year beginning 2016 ending 20 Partner's Share of Income, Deductions, Credits, etc. lib See back of form and separate Instructions. Information About the Partnership Part A Partnership's employer identification number 13-34956O7 B Partnership's name. address. dry. state, and 2IP code U Part III Ame^Ce0 1(.1 651113 OMB No. 1545.0123 Partner's Share of Current Year Income, Deductions, Credits and Other Items 1 Ordinary business income (loss) 15 Credits 748,931. 2 Net rental real estate income (kiss) 3 Other net rental income (loss) 16 Foreign transactions 4 Guaranteed payments NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1OO13 C IRS Center where partnership flied return EFILE D 0 Check tr this is a publicly traded parthershp (PTP) 5 Interest income 5,552. 6s Ordinary dividends 6b Qualified dividends 7 Royalties 8 Net short-term capital gain (loss) Part II Information About the Partner Gs Net long-term capital gain (loss) 17 A* Malmo.* minimum tar(ANT) Items —3O2. E Partners identilying number 13-35O1977 F Partners name, address. dry. state. and 2IP code PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK. NY 1OO13 CI LX1 General partner or LLC U Limited partner or other LLC member-manager member H 5] Domestic partner El Foreign partner 11 What type o4 entity is Me partner? s CORPORATION 2 12 If this partner is a retirement plan (lRNSEPIKecolVetc.). check here K J Partners share o1 profit loss. and capital (see instructions): Beginning Profs 31.OOOOOO Loss 31.OOOOOO Capital 31.OOOOOO K Partner's share of liabilities at year end: Non recourse Qualified nonrecourse financing. $ Recourse Ending 31.OOOOOO 31.OOOOOO 31.OOOOOO 4,530,420. 460,309. 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income (loss) 18 C* Tax-exempt income and nondeductible expenses 36,751. 12 Section 179 deduction 59,271. 13 Other deducbons A* 32,O34. 19 A DistributIons 93O,OOO. 20 A 14 Seff-employment earnings (loss) Other information 5,552. L Partners capital account analyse: Beginning capital account S 573,991. Capital contributed during the year Current year increase (decrease) $ 719,196. Withdrawals 8 distributions . . . . 8 ( 93O,OOO. ) Ending capital account 363,187. Tax basis GAAP K Section 704(b) book Other (explain) IA Did the partner contribute properly with a built-in gain or loss? EN° K Yes 'See attached statement for additional information. C O 0 If -Yes.' attach statement (see instructions) For Paperwork Reduction Act Notice, see Instructions for Form 1065. SA P1200 1.000 R66297 16O8 IRS.go torm1065 Schedule K-1 (Form 1065) 2015 52 EFTA00806456 Schedule K-1 (Form 1065) 2015 PARTNER # 2 PARTNERSHIP HOLDING CORP. Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions 1. Ordinary business income (loss). Determine whether the income (loss) Is Code passive or nonpasslve and enter on vox return as follows. L Empowerment zone Report on employment credit Passive loss See the Partners Instructions PA Credit for increasing research Passive ncome Schedule E. one 28. column (g) activities Nonpassive loss Schedule E. Ice 28. column (h) N Credit for employer social Non pass-ve income Schedule E. line 28. column 0) security and Medicare taxes partners who file Form 1040. for your income tax return. Report on See the Partners Instructions 2. Net rental real estate income (loss) See the Partners Instructions O Backup withhcideg 3. Other net rental income (loss) P Other credits Net income Schedule E. Ice 28. column (g) 16. Foreign transactions Net loss See the Partners Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28. column 0) possession 5. Interest Income Form 1040. Ine 8a B Gross income from M sources }- Form 1116. Pan I 6a. Ordinary dividends Form 1040. linage C Gross income sourced at 6b. Qualified dividends Form 1040. Ine9b partner level 7. Royalties Schedule E. line 4 Foreign gross income sourced at partnerslup level 8. Net short-term capital gain (loss) Schedule D. line Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form 1116. Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gam Worksheet, line 4 F Other (Schedule D instructions) Deductions allocated and apportioned at partner level 0 Interest expense Form 1116. Pan I 9c. Unrecaptured section 1250 gain See the Partners Instructions 10. Net section 1231 gain (loss) See the Partners Instructions H Other Form 1116. Pan I Deductions allocated and apportioned at partnership levet to foreign source 11. Other income (loss) income Code A Other portfolio income (loss) See the Partners Instructions B Involuntary conversions See the Partner's Instructions I Passive category J General category Form 1116. Pan I K Other C Sec. 1256 contracts /1 straddles Form 6781. Mel 0 Mining exploration costs recapture See Pub. 535 Other in fonnathon L Total foreign taxes paid Form 1116. Pan II E Cancellation of debt Form 1040. line 21 or Form 982 Total foreign taxes accrued Form 1116. Pan II F Other income (loss) See the Partners Instructions N Reduction in taxes available far credit Form 1116. line 12 12. Section 179 deduction See the Partners Instructions 0 Foreign !Wag gross receipts Form 8873 13. Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) 0 Other foreign transactions See the Partners Instructions B Cash contributions (30%) 17. Alternative minimum tax (MAT) items C Noncash contributions (50%) A Post-1986 depreciation adjustment Noncash contributions (30%) See the Partners B Adjusted gam or loss See the Partners E Capital gain property to a 50% Instructions C Depletion (other than or a gas) Instructions and organization (30%) D Oil, gas. a geothermal - gross income the Instructions for F Capital gain properly (20%) E Oil, gas. 8 geothermal deductions Form 6251 0 Contributions (IOC%) F Other AMT items H Investment interest expense Form 4952. Mel 18. Tax-exempt Income and nondeductible expenses I Deductions royalty income Schedule E. Ire 19 A Tax-exempt interest income Form 1040. line 8b J Section 59(e)(2)npencrures See the Partners Instructions B Other tax-exempt ncome See the Partners Instructions K Deductions portfolio (2% floor) Schedule A. line 23 C Nondeductible expenses See the Partners Instructions L Deductions port-lobo (other) Schedule A. line 28 19. Distributions NI Amounts paid for medical insurance Schedule A. line 14 Fan 1040. In. 29 A Cash and marketable securities N Educational assistance benefits See the Partners Instructions 0 Dependent care benefits Form 2441. line 12 B Distribution subject 10 section 737 See the Partners Instructions C Other property P Preproductwe penod expenses See the Partners Instructions 0 Commercial rentalcabco deduction 20. Other Information from rental real estate activities See Form 8582 instructions A Prawns and IRAs See the Partners Instructions S Reforestation expense deduction See the Partners Instructions A Investment income Form 4952. line 4a B Investment expenses Form 4952. line C Fuel tax credit niormation Form 4136 T Domestic production wines Ci Qualified rehabinabon expenditures Information See Form 8903 instructions U Qualified production acmes income Form 8903. Ine 7b (other than rental real estate) See the Partners Instructions E Basis of energy property See the Partners Instructions V Employers Form W-2 wages Form 8903. line 17 W Other deductions See the Partners Instructions F Recapture ol low-income housing credit (section 42((5)) Form 8611. line 8 CI Recapture ol low-income housing 14. Sell-employment earnings (loss) credit (other) Form 8611. line 8 Note: If you have a section 179 deduction or any partner-level deductions. see the H Recapture ol investment credit See Form 4255 Partner's Instructions before oompletng Schedule SE. I Recapture of other credits See the Partners Instructions A Net earnings (loss) from J Look-back interest completed self-employment Schedule SE. Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partners Instructions K Look-back interest - income forecast C Gross non-farm income See the Partners Instructions method See Form 8866 15. Credits A Low-income housing credit L Dispositions ol properly with section 179 deductions (section 420)(5)) from pre-2008 buiidings B Low-income housing credit NI Recapture ol section 179 deduction N Interest expense for corporate partners (other) from pre-2008 buldngs O Section 453(1)(3) information C Low-income housing credit P Section 453A(c) information (section 420)(5)) from O Section 1260(b) information post-2007 buildngs D Low-income housing credit See the Partners Instructions Ft Interest allocable to production expenditures ts. See the Partners r Instructions (other) from post-2007 buildings S CCF nonqualified vmhdrawals T Depletion information or and gas E Qualified rehabiudion expenditures (rental real estate) U Reserved V Unrelated business taxable income F Other rental real estate credits W Precontrbution gain (loss) 0 Other rental credits X Section 1080) information H Undistributed capital gams credi Form 1040. line 73: check box a V Nei investment income I Biofuel producer credit 2 Other information J Work opportunity credit See the Partners Instructions Jas K Disabled access credit SP 1300 1.000 R66297 1608 53 EFTA00806457 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 2 PARTNERSHIP HOLDING CORP. ITEM L - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11 754,483. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12, 13, 16L, AND 16M 91,305. TOTAL INCOME PER SCHEDULE K-1 663,178. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT DEFERRED TAX EXPENSE SHAREHOLDER SALARIES RENT ESCALATION ADJUSTMENT NONDEDUCTIBLE EXPENSES 28,145. 1,240. 15,749. 20,507. 8,606. PLUS: INCOME RECORDED ON BOOKS, NOT INCL. ON SCH. K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 25,581. PLUS: DEDUCTIONS ON SCH. K-1, NOT CHARGED AGAINST BOOKS: AMORTIZATION DEPRECIATION 57,296. 47,388. TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR) 719,196. ITEM L - WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 930,000. TOTAL WITHDRAWALS AND DISTRIBUTIONS 930,000. LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 5,552. TOTAL INTEREST INCOME 5,552. LINE 12 - SECTION 179 EXPENSE DEDUCTION FROM TRADE/BUSINESS 59,271. TOTAL SECTION 179 EXPENSE DEDUCTION 59,271. 609000 1.000 STATEMENT 1 R66297 1608 54 EFTA00806458 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 2 PARTNERSHIP HOLDING CORP. LINE 13 - OTHER DEDUCTIONS A CASH CONTRIBUTIONS (50%) FROM TRADE\BUSINESS 30,434. FROM PASS-THROUGH ENTITIES 1,600. TOTAL BOX A 32,034. LINE 17 - ALTERNATIVE MINIMUM TAX (AMT) ITEMS A POST-1986 DEPRECIATION ADJUSTMENT FROM OTHER (GENERAL BUSINESS) -284. FROM PASS-THROUGH ENTITIES -18. TOTAL BOX A -302. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 8,606. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 8,606. TRAVEL AND ENTERTAINMENT EXPENSE NONDEDUCTIBLE 28,145. TOTAL NONDEDUCTIBLE EXPENSES 36,751. STATEMENT 2 1509000 1.000 R66297 1608 55 EFTA00806459 NEXT MANAGEMENT LLC 13-349560? FIR # 2 PARTNERSHIP HOLDING CORP chedule of Activities Type way Mewed Cal PTP Pappthrepah k TWO TWELVE MANAGEMENT, LLC P\T GEN TB NO NO NO YES B: NEXT MANAGEMENT, LLC PORTFOLIO NO NO NO NO C: NEXT MANAGEMENT, LLC GEN. T/B NO NO NO NO D: A B C D ---2 3 1 1 Ordinary business income (loss) 2 Nat rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 6b Qualified dividends 87 Royalties Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income floss) 77,021. 671, 910. 5,552. Deductions 12 Section 179 deduction 13a-g Contributions 1314O Deductions related to portfolio income 13h Investment interest expense 131 Section 59(e)(2) expenditures 13I-v Other deductions 59,272. 1, 600. 30, 434. I 15e u 15a,c Low-income housing credit (section 42()1(5)) 15b,d Low-income housing credit (other) ()wigged rehabilitation expenditures (rental real estate) 151 Other rental real estate credits 15g Other rental credits 15h-p Other credits Foreign Transactions 16b Gross income from all sources 16c Gross income sourced at partner level 16d Foreign gross income (partnership level): Passive 16e Foreign gross income (partnership level): General categories 16f Foreign gross income (partnership level): Other 16g Deductions allocated and apponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner leveg: Other 16i Deductions allocated and apportioned (partnership level): Passive , . , , 16j Deductions allocated and apportioned (partnershp level): General calcipies 16k Deductions allocated and apportioned (partnership Imp:Other 161 Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions Alternative Minimum Tax 17a Post-1986 depredation adjustment 17b Adjusted gain or loss 17c Depletion (other than col and gas) 17d Gross Income from oil. gas. and geothermal 17e Deductions from oil, gas, and geothermal 171 Other MAT items -254. is ,..'A g 184 18b Tax-exempt Interest income Other tax-exempt income 18c Nondeductible expenses 8.606. 28.145. S2 20a Investment income 20b Investment expenses 20c-x Other information 5,552. JSA 5P9011 1.000 866297 1608 56 EFTA00806460 NEXT MANAGEMENT, LLC 13-3495607 PARTNER ACTIVITIES DETAIL PARTNER 4 2 PARTNERSHIP HOLDING CORP. ACTIVITY: TWO TWELVE MANAGEMENT, LLC LINE 13A-G CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS A CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 1,600. TOTAL CHARITABLE CONTRIBUTIONS 1,600. LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 8,606. TOTAL NONDEDUCTIBLE EXPENSES 8,606. 1509000 1.000 STATEMENT 1 R66297 1608 57 EFTA00806461 Schedule K-1 (Form 1065) Department of the Treasury Internal Revenue Service 2015 For calendar year 2015. or tax year beginning 2015 ending 20 Partner's Share of Income, Deductions, Credits, etc. Ile See back of form and separate Instructions. Final K-I 1 I Amended K-1 651113 OMB No. 1545.0123 Part III Partner's Share of Current Year income, Deductions. Credits and Other items 1 Ordinary business mama (Ices) 652,293. 2 Net rental real estate income (loss) 15 Credits 3 Other net rental income (loss) 16 Foreign transactions Part I Information About the Partnership A Partnership's employer identification number 13-3495607 B Partnership's name. address. dry. state, and 2IP code Guaranteed payments NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 C IRS Center where partnership filed return EFILE D K Check if this is a publicly traded partnershp (PTP) 5 6s Interest income Ordinary dividends 4,836. 66 Qualified dividends 7 Royalties 8 Net short-term capital gain (loss) Part Information About the Partner Gs Net long-term capital gain (loss) 17 A* Alternative minimum teX(MAT)INIM —264. E Partners identifying number 13-3682060 F Partners name, address. city. state. and 2IP code THE 14/ LCOR GROUP, INC. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 O Li] General partner or LLC U Limited partner or other LLC member-manager member H 5] Domestic partner El Foreign partner 11 What type o4 entity is the partner? S CORPORATION 3 12 If this partner is a retirement plan (lRNSEPIKeogIVelc.). check here K J Partners share of profit. loss. and capital (see instructions): Profit Loss Capital K Partner's share of liabilities at year end: Non recourse Qualified nonrecourse financing. $ Recourse Begbnrng 27.000000 27.000000 27.000000 Ending 27.000000 % 27.000000 % 27.000000 % 3,945,550. 400, 951. 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income (loss) 18 C* Tax-exempt income and nondeductible expenses 32,010. 12 * 13 A* Section 179 deduction Other deductions 51,622. 27,900. 19 A Distributions 810,000. 20 A 14 Set-employment earnings (loss) Other information 4,836. L Partners capital account aflame: Beginning capital account S 499,929. Capital contributed during the year $ Current year ncrease (decrease) $ 626,397. Withdrawals 8 distributions . . . . $ ( 810,000. ) Ending capnal account $ 316,326. Tax basis GAAP K Section 700(0) book Other (explain) 1.1 Did the partner contribute properly with a built-in gain or loss? EN° K Yes 'See attached statement for additional information. For IRS Use Only If 'Yes.' attach statement (see instructions) For Paperwork Reduction Ml Notice, see Instructions for Form 1065. JSA P1200 1.000 R66297 1608 IRS.govitorm1065 Schedule K-1 (Form 1065) 2015 58 EFTA00806462 Schedule K-1 (Form 1065) 2015 PARTNER # 3 THE WILCOR GROUP, INC. Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions 1. Ordinary business income (loss). Determine whether the income (loss) is Code passive or nonpassive and enter on your return as folios's. L Empowerment zone Report on employment credit Passive loss See the Partners Instructions PA Credit for increasing research Passive income Schedule E. one 28. column (g) activities Nonpassive loss Schedule E. the 28. column (h) N Credit for employer social Non pass-ve income Schedule E. line 28. column 0) security and Medicare taxes partners who file Form 1040. for your income tax return. Report on See the Partners Instructions 2. Net rental real estate income (loss) See the Partners Instructions O Backup withholdrig 3. Other net rental income (loss) P Other credits Net Income Schedule E. Ice 28. column (g) 16. Foreign transactions Net loss See the Partners Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28. column 0) possession 5. Interest Income Form 1040. Ine 8a B Gross income from M sources }- Form 1116. Pan I 6a. Ordinary dividends Form 1040. Isle 9a C Gross income sourced at 6b. Qualified dividends Form 1040. ine9b partner level 7. Royalties Schedule E. line 4 Foreign gross income sourced at partnerslup level 8. Net short-term capital gain (loss) Schedule D. line 5 Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form 1116. Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet. line 4 F Other (Schedule D instructions) Deductions allocated and apportioned at partner level 0 Interest expense Form 1116. Part I 9c. Unrecaptured section 1250 gain See the Partners Instructions 10. Net section 1231 gain (loss) See the Partners Instructions H Other Form 1116. Pan I Deductions allocated and apportioned at partnership levet to foreign source 11. Other income (loss) income Code A Other portfolio income floss) See the Partners Instructions B Involuntary conversions See the Partner's Instructions I Passive categcry J General category Form 1116. Part I K Other C Sec. 1256 contracts /1 straddles Form 6781. Me I 0 Mining exploration poets recapture See Pub. 535 Other information L Total foreign taxes paid Form 1116. Pan II E Cancellation of debt Form 1040. line 21 or Form 982 IA Total foreign taxes accrued Form 1116. Pan II F Other income (loss) See the Partners Instructions N Reduction in taxes available far credit Form 1116. line 12 12. Section 179 deduction See the Partners Instructions 0 Foreign !Wag gross receipts Form 8873 13. Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) 0 Other foreign transactions See the Partners Instructions B Cash contributions (30%) 17. Alternative minimum tax (MAT) items C Noncash contributions (50%) A Post-1986 depreciation adjustment Noncash contributions (30%) See the Partners B Adjusted gain or loss See the Partner's E Capital gain property to a 50% Instructions C Depletion (other than al & gas) Instructions and organization (30%) D Oil, gas. & geothermal - gross income the Instructions for F Capital gain properly (20%) E Oil, gas. & geothermal deductions Form 6251 0 Contributions (IOC%) F Other AMT items H Investment interest expense Form 4952. Me I 18. Tax-exempt Income and nondeductib expenses I Deductions royalty income Schedule E. Ire 19 A Tax-exempt interest income Form 1040. line 80 J Section 59(e)(2) expenditures See the Partners Instructions B Other tax-exempt income See the Partners Instructions K Deductions portfolio (2% floor) Schedule A. line 23 C Nondeductible expenses See the Partners Instructions L Deductions port-lobo (other) Schedule A. line 28 19. Distributions NI Amounts paid for medical insurance Schedule A. line 14 Fan 1040. In. 29 A Cash and marketable securties N Educational assistance benefits See the Partners Instructions 0 Dependent care benefits Form 2441. line 12 B Distribution subject 10 section 737 See the Partners Instructions C Other property P Preproductwe penod expenses See the Partners Instructions 0 Commercial rentalcabon deduction 20. Other Information from rental real estate activities See Form 8582 instructions R Pensions and IRAs See the Partners Instructions S Reforestation expense deduction See the Partners Instructions A Investment income Form 4952. line 4a B Investment expenses Form 4952. line C Fuel tax credit niormaten Form 4136 T Domestic production wines Cs Qualified rehabinabon expenditures information See Form 8903 instructions U Qualified production amities income Form 8903. Ine 7b (other than rental real estate) See the Partners Instructions E Basis of energy property See the Partners Instructions V Employers Form W-2 wages Form 8903. line 17 W Other deductions See the Partners Instructions F Recapture ol low-income housing credit (section 420(5)) Form 8611. line 8 CI Recapture ol low-income housing 14. Sell-employment earnings (loss) credit (other) Form 8611. line 8 Note: If you have a section 179 deduction or any partner-level deductions. see the H Recapture ol investment credit See Form 4255 Partner's Instructions before oompletng Schedule SE. I Recapture of other credits See the Partners Instructions A Net earnings (loss) from J Look-back interest completed self-employment Schedule SE. Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partners Instructions K Look-back interest - income forecast C Gross non-farm income See the Partners Instructions method See Form 8866 15. Credits A Low-Income housing credit L Dispositions ol properly with section 179 deductions (section 420)(5)) from pre-2008 bur/dings B Low-Income housing credit NI Recapture ol section 179 deduction N Interest expense for corporate partners (other) from pre-2008 buldngs O Section 453(1)(3) information C Low-Income housing credit P Section 453A(c) information (section 420)(5)) from O Section 1260(b) information post-2007 budrIngs D Low-Income housing credit See the Partners Instructions R Interest allocable to production expenditures ts. See the Partners r Instructions (other) from post-2007 buildings S CCF nonqualified vmhdrawals T Depletion information al and gas E Qualified rellabiudion expenditures (rental real estate) U Reserved V Unrelated business taxable income F Other rental real estate credits W Precontrbution gain floss) 0 Other rental credits X Section 108(i) information H Undistributed capital gains crew Form 1040. line 73: check box a V Net investment income I Biofuel producer credit 2 Other information J Work opportunity credit See the Partners Instructions Jas K Disabled access credit SP ISM 1.000 R66297 1608 59 EFTA00806463 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 3 THE WILCOR GROUP, INC. ITEM L - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11 657,129. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12, 13, 16L, AND 16M 79,522. TOTAL INCOME PER SCHEDULE K-1 577,607. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT DEFERRED TAX EXPENSE SHAREHOLDER SALARIES RENT ESCALATION ADJUSTMENT NONDEDUCTIBLE EXPENSES 24,514. 1,080. 13,716. 17,861. 7,496. PLUS: INCOME RECORDED ON BOOKS, NOT INCL. ON SCH. K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 22,281. PLUS: DEDUCTIONS ON SCH. K-1, NOT CHARGED AGAINST BOOKS: AMORTIZATION DEPRECIATION 49,902. 41,274. TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR) 626,397. ITEM L - WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 810,000. TOTAL WITHDRAWALS AND DISTRIBUTIONS 810,000. LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 4,836. TOTAL INTEREST INCOME 4,836. LINE 12 - SECTION 179 EXPENSE DEDUCTION FROM TRADE/BUSINESS 51,622. TOTAL SECTION 179 EXPENSE DEDUCTION 51,622. 609000 1.000 STATEMENT 1 R66297 1608 60 EFTA00806464 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 3 THE WILCOR GROUP, INC. LINE 13 - OTHER DEDUCTIONS A CASH CONTRIBUTIONS (50%) FROM TRADE\BUSINESS 26,507. FROM PASS-THROUGH ENTITIES 1,393. TOTAL BOX A 27,900. LINE 17 - ALTERNATIVE MINIMUM TAX (AMT) ITEMS A POST-1986 DEPRECIATION ADJUSTMENT FROM OTHER (GENERAL BUSINESS) -248. FROM PASS-THROUGH ENTITIES -16. TOTAL BOX A -264. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 7,496. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 7,496. TRAVEL AND ENTERTAINMENT EXPENSE NONDEDUCTIBLE 24,514. TOTAL NONDEDUCTIBLE EXPENSES 32,010. STATEMENT 2 1509000 1.000 R66297 1608 61 EFTA00806465 NEXT MANAGEMENT LLC 13-349560? PTR # 3 THE KILCOR GROUP INC chedule of Activities Type way Depased Cal PTP Paraihrough k TWO TWELVE MANAGEMENT, LLC P\T GEN TS NO NO NO YES B: NEXT MANAGEMENT, LLC PORTFOLIO NO NO NO NO C: NEXT MANAGEMENT, LLC GEN. T/B NO NO NO NO D: A B C D ---2 2. 1 1 Ordinary business income (loss) 2 Nat rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 6b Qualified dividends 87 Royalties Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income floss) 6%083. 585,210. 40336. Deductions 12 Section 179 deduction 13a-g Contributions 1314O Deductions related to portfolio income 13h Investment interest expense 131 Section 59(e)(2) expenditures 13I-v Other deductions 51, 622. 1,393. 26,567. I 15e u 15a,c Low-income housing credit (section 42()1(5)) 15b,d Low-income housing credit (other) ()gratified rehabilitation expenditures (rental real estate) 151 Other rental real estate credits 15g Other rental credits 15h-p Other credits Foreign Transactions 16b Gross income from all sources 16c Gross income sourced at partner. level 16d Foreign gross income (partnership level): Passive 16e Foreign gross income (partnership level): General categories 16f Foreign gross income (partnership level): Other 16g Deductions allocated and epponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner leveg: Other 16i Deductions allocated and apportioned (partnership level): Passive , , , , 16j Deductions allocated and apportioned (partnershp level): General calcimmies 16k Deductions allocated and apportioned Ipattnetship level): Other 161 Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions Alternative Minimum Tax 17a Post-1986 depreciaben adjustment 17b Adjusted gain or loss 17c Depletion (other than al and gas) 17d Gross Income from oil. gas. and geothermal 17e Deductions from oil, gas, and geothermal 171 Other MAT items -16. -248. is 'A g ,.. 186 18b Tax-exempt Interest income Other tax-exempt income 18c Nondeductible expenses 7,496. 24.514. Other 20a Investment income 20b Investment expenses 20c-x Other information 4,826. JSA 5P9011 1.000 866297 1608 62 EFTA00806466 NEXT MANAGEMENT, LLC 13-3495607 PARTNER ACTIVITIES DETAIL PARTNER # 3 THE WILCOR GROUP, INC. ACTIVITY: TWO TWELVE MANAGEMENT, LLC LINE 13A-G CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS A CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 1,393. TOTAL CHARITABLE CONTRIBUTIONS 1,393. LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 7,496. TOTAL NONDEDUCTIBLE EXPENSES 7,496. 1509000 1.000 STATEMENT 1 R66297 1608 63 EFTA00806467 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form 8453-LLC 2015 California E-File Return Authorization for LLC's for the year ended December 31. 2015 The original form should be signed (use full name) and dated by an authorized partner. The signed form should be returned on or before October 17, 2016 via: Email (preferred method) 4.filna_herrlonUp corn Fax 212.699.8832 Mail Berdon LLP Attn: Tax Control 360 Madison Avenue, 6th Floor New York, NY 10017 We must receive your signed Form 8453-LLC before we can electronically transmit your return. This return indicates a tax due in the amount of $5,790. Payment of this liability is made payable by authorizing to initiate an electronic funds withdrawal as indicated on Form 8453-LLC. The amount of $5.790 will be withdrawn from your bank account on September 10, 2016. Please review for accuracy the financial institution routing number and account number. DO NOT separately file your tax return with the state. Doing so will delay the processing of your return. The state will notify us when your return is accepted. Your return is not considered filed until the state confirms their acceptance. which may occur after the due date of your return. EFTA00806468 027 DO NOT MAIL THIS FORM TO FTB Date Accepted TAXABLE YEAR California &file Return Authorization for 2015 Limited Liability Companies Limited liabilitycompany name NEXT MANAGEMENT, LLC Part I Tax Return Information (whole dollars only) 1 Total income (Form 568. Schedule B. Line 12 or Form 568. Line 1 for Single Member LLCs) 1 20,091,944. 2 Ordinary income (Form 568, Schedule B, line 23 or Form 568, Line 1 for Single Member LLCs) 2 2,530,411. 3 Tax and fee due (Form 568. line 13) 3 5,790. 4 Overpayment (Form 568, hne 14) 4 5 Total amount due (Form 568, line le) 5 FORM 8453-LLC Identifying numb°, 200506910067 5,790. Part II Settle Your Account Electronically for Taxable Year 2015. (Payment due 4/1812016) 6 Electronic funds ...Andrews Bit Amount 5,790. Part Ill Make Annual Tax or Estimated Fee Pa ment for Taxable Year 2016 This is Annual Tax Payment I Estimated Fee Payment 7 Amount 8 Withdrawal date NCLI 6b Withdrawal date (mmiddiyyyy) 09/10/2016 an installment payment for the current amount the LLC owes. Part IV Banking Information (Have you verified the LLC's banking information?) 9 Routing number 026013576 10 Account number 1501920157 11 Type of account: E Checking D Savings Part V Declaration of Authorized Member or Manager I authorize the limited liability company account to be settled as designated in Parts It. Ill, and IV. If I check Box 6, I authorize an electronic funds withdrawal for the amount listed on line 6a and for the 2016 annual tax or estimated fee payment amount listed on line 7 from the account specified in Part IV. Under penalties of perjury, I declare that I am an authorized member or manager of the above limited liability company and that the information I provided to my electronic return originator (84O). transmitter, or intermediate service provider and the amounts in Part I above agree with the amounts on the corresponding lines of the limited liability company's 2015 California income tax return. To the best of my knowledge and belief, the limited liability company's return is true, correct, and complete. If the limited liability company is filing a balance due return. I understand that if the Franchise Tax Board (FTB) does not receive full and timely payment of the limited liability company's tax liability, the limited liability company will remain liable for the tax liability and all applicable interest and penalties. I authorize the limited liability company return and accompanying schedules and statements be transmitted to the FTB by my ERO, transmitter. or intermediate service provider. It the processing of the limited liability company's return or refund is delayed, I authorize the Fre to disclose to my ERO or intermediate service provider, the reason(s) for the delay or the date when the refund was sent. Sign Here Signature of authorized member or manager Date Lae PRES OF MEMBER—MGR Part VI Declaration of Electronic Return Originator (ERO) and Paid Preparer. See instructions. I declare that I have reviewed the above limited liability company's return and that the entries on form FTB 8453-LLC are complete and correct to the best of my knowledge. (If I am only an intermediate service provider. I understand that I am not responsible for reviewing the limited liability company's return. I declare, however, that form FIB 8453-LLC accurately reflects the data on the return.) I have obtained the signature from the limited liability company authorized member or manager on form FIB 8453-LLC before transmitting this retum to the FIB: I have provided the limited liability company authorized member or manger with a copy of all forms and information that I will file with the FTB. and I have followed all other requirements described in FIB Pub. 1345. 2015 e-file Handbook for Authorized of Ile Providers. I will keep form FIB 8453-LLC on file for four years from the due date of the return or four years from the date the limited liability company retum is filed, whichever is later, and I will make a copy available to the FIB upon request. If I am also the paid preparer, under penalties of perjury. I declare that I have examined the above limited liability company's return and accompanying schedules and statements. and to the best of my knowledge and belief, they are true, correct, and complete. I make this declaration based on all information of which I have knowledge. ERO Must Sign ERO's signature Firm's name (or yours BERDON LLP if self-employed) and address Date Check if Check also paid III self- preparer employed 13-0485070 ZIP code 360 MADISON AVE NEW YORK NY 10017 Under penalties of perjury. I declare that I have examined the above limited liability company's return and accompanying schedules and statements. and to the best of my knowledge and belief, they are true, correct, and complete. I make this declaration based on all information o which I have knowledge. Paid Preparer Must Sign Paid preparers I Date ICheck K Paid preparers MIN if self- signature employed Firm's name (or yours it self-employed) and address FEIN ZIP code For Privacy Notice, get FTB 1131 ENG/SP. SYOS7S 1.000 R66297 1608 FTB 8453-LLC 2015 64 EFTA00806469 ' A Limited Liability Company • CALIFORNIA FORM 2015 Return of Income 568 RE' 200506910067 NEXT 13-3495607 TYB 01-01-2015 TYE 12-31-2015 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 15 PBA 812990 ACCTMETHOD 2 01-04-1989 ASSETS 16,760,866. INITIAL 0 FINAL 0 AMENDED 0 J (1) During this taxable year. did another person or legal entity acquire control or majomy ownership (more than a 50% interest) of this LLC or any legal entity in which the LLC holds a controlling or majority interest that owned California real properly (i.e.. land. buildings). leased such properly fora term of 35 years or more. or leased such property Yam a government agency 10( any term? (2) During this taxable year. did this partnership acquire control or majority ownership (more than a 50% interest) in another legal entity that owned California real properly (i.e.. land. buildings). leased such property for a term of 35 years or more. or leased such properly from a government agency for any term, (3) During this taxable year. has more than 50% of the partnership's ownership interests cumutathety transferred n one or more transactions after an interest in California real property (i.e.. land. buidngs) was translerred to it that was excluded from property tax reassessment under Revenue and Taxation Code section 62(O2) and it was not reported on a previous years tax return? (Yes requires filing of statement. penalties may apply - see instructions.) • K Yes al No • K Yes al No • K Yes al No Complete Schedule IW, LLC Income Worksheet (on Side 7) first to determine Line 1. 1 Total income from Schedule IW. Limited Liability Company Income Worksheet. See instructions 2 Limited Liability Company fee. See instructions 3 2015 annual Limited Liability Company tax. See instructions 4 Nonconsenting nonresident members' tax liability from Schedule T (Side 4) 5 Total tax and fee. Add line 2. line 3, and line 4 6 Amount paid with form FT8 3537 and 2015 form FTB 3522 and form FIB 3536 7 Overpayment from prior year allowed as a credit 8 Withholding (Form 592-B andfor 593) 9 Total payments. Add line 6. tine 7. and ine 8 10 Use tax. This is not a total line. See instructions 11 Payments balance. II line 9 is more than line10. subtract line 10 from line 9 12 Use Tax balance. II line 10 is more than line 9, subtract line 9 from line 10 Whole dollars only • • • • • • • • • • • • 1 5,505,311 00 2 11,790 00 3 800 00 4 00 5 12,590 00 6 6,800 00 7 00 8 00 9 6,800 00 10 00 11 6,800 00 12 00 • 027 3671154 I Form 568 Cl 2015 Side 1 svouelmo R66297 1608 65 • EFTA00806470 Whole dollars only 13 Tax and fee due. If line 5 is more than line 11, subtract line 11 from line 5 • 14 Overpayment. If line 11 is more than line 5, subtract line 5 from line 11 • 15 Amount of line 14 to be credited to 2016 tax or fee • 16 Refund. II the total of line 15 is less than line 14. subtract the total from line 14 13 14 15 5, 790 00 00 00 *16 00 17 Penalties and Interest. See instructions • 18 Total amount due. Add line 12. Ilne 13. line IS. and line I7. then subtract Ine 14 tram the result. 518 5,790. 00 17 00 K Enter the maximum number of members in the LLC at any time during the year. For multiple member LLCs. attach a California Schedule K-1 (568) for each ol these members • 3 L Is this LLC an investment partnership? See General Information 0 • K Yes al No M (1) Is this LLC apportioning or allocating Income to California using Schedule Fr • al Wisp No (2) If "No." was this LLC registered in California without earning any income sourced in this state during the taxable year? C) K Wisp No N Was there a distribution of property or a transfer (for example. by sale or death) of an LLC interest during the taxable year? • K Yes E No P (1) Does the LLC have any foreign (non-U.S.) nonresident members/ • K Yes al No (2) Does the LLC have any domestic (non-foreign) nonresident members? • 2 Yes K No (3) Were Form 592. Form 592-A. Form 592-B and Form 592-F filed for these members/ • K Yes al No O Are any members in this LLC also LLCs or partnerships/ • K Yes al No Fl Is this LLC under audit by the IRS or has it been audited in a prior year? • K Yes al No S Is this LLC a member or partner in another multiple member LLC or partnership? • al Yes El No If 'Yes,' complete Schedule EO. Part I. T Is this LLC a publicly traded partnership as defined in IRC Section 469(k)(2)' K Yes 2 No U (1) Is this LLC a business entity ckstegarcied for tax purposes/ • ❑Yes 2 No (2) If 'Yes." see instructions and complete Side 1. Side 2. Side 3. Schedule B. Side 5. and Side 7. if applicable. Are there credits or credit carryovers attributable to the cisregarded entity? • (El Yes K No (3) II "Yes' to U(1). does the disregarded entity have total Income derived from or attributable to California that is less than the LLC's total income from all sources? K Yes K No  Has the LLC included a Reportable Transaction, or Listed Transaction within this retum? (See instructions for definitions). If 'Yes." complete and attach federal Form 8886 for each transaction • K Yes al No W Did this LLC file the Federal Schedule M-3 (federal Form 1065)? • Yes K No X Is this LLC a direct owner of an entity that filed a federal Schedule M-3? • Yes K No Y Does the LLC have a beneficial interest in a trust or is it a grantor ol a Trust? • ri Yes E No If 'Yes,' attach schedule of trusts and federal identification numbers. Z Does this LLC own an interest in a business entity disregarded for tax purposes? C) [ Yes X No If 'Yes.' complete Schedule EO Part II. (continued on Side 3) Side 2 Form 568 01 2015 7:1277 wins.) too° R66297 1608 3672154 I 66 EFTA00806471 (continued from Side 2) AA Is any member of the LLC related (as defined in IRC Section 287(c)(4)) to any other member of the LLC" • D Yes No B8 Is any member of the LLC a trust for the benefit of any person related (as defined in IRC Section 287(c)(4)) to any other member? • 0 Yes al No CC (1) Is the LLC deferring any income from the disposition of assets? (see instructions) • 0 Yes 0 No (2) It 'Yes,' enter the year of asset disposition • DD Is the LLC reporting previously deferred Income from: (see instructions) • Installment Sale • I IRC §1031 • 0 IRC §1033 • 0 Other EE (1) Did this LLC generate a New Employment Credit? • D Yes ®No (2) II 'Yes.' enter the generated amount • FF "Doing business as" name. See instructions: • GG (1) Has this LLC operated as another entity type such as a corporation. S corporation. General Partnership. Limited Partnership, or Sole Proprietorship in the previous five (5) years? • D Yes No (2) II 'Yes'. provide prior FEIN(s) if different, business name(s), and entity typists) for prior returns filed with the FEB and/or IRS (see instructions). NH (1) Has this LLC previously operated outside California', (2) Is this the first year of doing business in California/ • • ®Yes 0 Yes 0 No No Single Member LLC Information and Consent - Complete only if the LLC is tfisregarded. • Federal 11NISSN Sole Owner's name (as shown en owners return) FEIN/CA Corp noiCA SOS Fie no. Sweet Address. City. State and ZIP Code • Return Ned with the FIB by the Omer 0 0, Form 540 0 (5) Form 541 0 (2) Form 100 0 (6) Form 100S I❑ (3) Form 565 0 (7) Form 568 0 (4) Other klembries Consent Statement: I consent to the winsochan ol the Stale of Caltorna to tax my Ile income and agree lotto returns and pay tax as may be required by the FtenalliSO Tax Ward. Signature illl. Dale Sign Here To learn about your privacy nghls. how we may use your intarrealtan. and the consequences PIS, note. TO reptant this notice by mat. eall 00:0452 ST1 1. WOW penalties of priory. I deOrre Oar I have erernhe0 Ns return. InCludhg accompanying true. correct. and complete. Declaration of preparer (other than laqsame) is based on all intarmalian Signature of authorized member or mane it, for net provslisg the requested schedules axi iSsiements. ol which ph:paler has Dale intarmation. go to Whoopee and search tor and $3 Itali best Ol My kn.:wedgeand dawn IS any knowledge. Telephone Authorized member or manager's email address (optional) • (212) 925-5100 Paid Preparer's Us• OIBY Raid preparers signature IP Date ChOdt if rn sellencleyedLj KIN • P00002675 Firm's name (or yourl. If self-employed) pr. BERDON LLP FEIN • 13-0485070 and address 360 MADISON AVE NEW YORK NY 10017 Telephone • 212-832-0400 May the FIB discuss this return with the preparer shown above (see instructions)? . . . . • El Yes 0 No • SY0504 1.000 R66297 1608 027 3673154 I Form 568Ci 2015 Side 3 6 7 • EFTA00806472 NEXT MANAGEMENT, LLC Schedule A Cost of Goods Sold 1 2 3 4 5 6 7 8 9 a Check all methods used for valuing closing inventory: 13-3495607 Inventory at beginning of year 1 00 Purchases less cost of items withdrawn for personal use 2 00 Cost of labor 3 00 Additional IRC Section 263A costs. Attach schedule 4 00 Other costs. Attach schedule 5 00 Total. Add line 1 through line 5 6 00 Inventory at end of year 7 00 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Schedule Et line 2 00 (1) K Cost (2) n Lower of cost or market as described in Treas. Reg. Section 1.4714 (3) K Write down of 'subnormal" goods as described in Treat Reg. Section 1.471.2(c) (4) K Other. Specify method used and attach evianation b Check this box if the LIFO inventory method was adopted this taxable year for any goods. If checked. attach federal Form 970 c Do the rules of IRC Section 263A (with respect to properly produced or acquired for resale) apply to the LLC? d Was there any change (other than for IRC Section 263A purposes) in determining quantities. cost, or valuations between opening and closing inventory? If 'Yes.' attach explanation 0 0 yes 0 No ❑Yes ❑No Schedule B Income and Deductions Caution Include only trade or business income and expenses on Ilne 1a through line 22 below. See the Instructions for more Information. Income 1 a Ciorrosasisesrecepts s 20,059,894. b Latsoswrer anum cess and $ c Balance • 1C 20, 059, 894 00 2 Cost of goods sold (Schedule A. line 8) ® 2 00 3 GROSS PROFIT. Subtract line 2 from line 1c • 3 20, 059, 894 00 4 Total ordinary income from other LLCs. partnerships. and fiduciaries. Attach schedu6 247 i. 4 266, 546 00 5 Total ordinary loss from other LLCs. partnerships, and fiduciaries. Attach schedule • 5 00 6 Total farm profit. Attach federal Schedule F (Form 1040) • 6 00 7 Total farm loss. Attach federal Schedule F (Form 1040) • 7 00 8 Total gains included on Schedule D-1. Part II. line 17 (gain only) • 8 00 9 Total losses included on Schedule D-1. Part II. line 17 (loss only) • 9 00 10 Other income. Attach schedule • 10 00 11 Other loss. Attach schedule $7MT la 11 234,496 00 12 Total income (loss). Combine line 3 through kne 11 • 12 20, 091, 944 00 Deductions 13 Salaries and wages (other than to mamba's) 13 11, 291, 732 00 14 Guaranteed payments to members ® 14 00 15 Bad debts • 15 8,131 00 16 Deductible interest expense not claimed elsewhere on return C) 15 00 17 a Depreciation and amortization. Attach form FTB 3885E $ 378,384. 17c 378, 384 00 b Loss depreciation reported an Schedule A and elseetiere on return $ C Balance • 18 Depletion. Do not deduct oil and gas depletion 18 00 19 Retirement plans. etc. 19 106, 026 00 20 Employee benefit programs 20 338, 804 00 21 Other deductions. Attach schedule $7MT I* 21 5, 438,456 00 22 Total deductions. Add line 13 through line 21 • 22 17,561,533 00 23_ Ordinary income (loss) from trade or business activities. Subtract line 22 from line 12 . . . . . • 23 2, 530,411 00 Schedule T Nonconsenting Nonresident Members' Tax Liabili y. Attach additional sheets if necessary. Member's name SSti%N. or FEIN Distgutkre share of Income (d) Tax rate Meggert total tax due (see instructions) 14 Amount withheld by this ISO on this member - reported on Form 592-B Members net tax due Total the amount of tax due. Enter the total here and on Side I. line 4. II less than zero enter -0- • Side 4 Form 568 ci 2015 SYOSO? 1.000 R66297 1608 027 3674154 68 EFTA00806473 NEXT MANAGEMENT, LLC Schedule K Members' Shares of Income, Deductions, Credits, etc. 00 DI strItuthe share Items (8) /mounts Irons federal K (I1:45) c California $02.210Manta 0 Told amountsusing Calilornia law I Income (Loss) 1 Ordinary income (loss) from trade or business activities 1 • 2,415,902. 114,509. 0.) 2,530,411. 2winemeememnmntal red 044014 *OWE. Math ledefill Form 88.M 2 go) 3 a Gross Income (loss) from other rental activities 3a (7) b Less expenses. Attach schedule 3b e Net Income (loss) from other rental activities. Subtract line 3b from line 3a 3e e 4 Guaranteed payments to member; 4 e 5 Interest income . STMT. 3 5 17,910. • 17,910. 8 Dividends 6 _ • 7 Royalties 7 • 8 Net short-term capital gain (loss). Attach Schedule 0 (568) 8 • 9 Net long-term capital gain (loss). Attach Schedule 0 (568) . 9 • 10 a Total Gain under INC Section 1231 (COW than due 10 Mutiny or MOM 10a • b Total Loss uncle: IBC Section 1231 (other than duo to casualty or Mall) 10b • 11 a Other portfolio income (loss). Attach schedule 115 (i) b Total other Income. Attach schedule 11b 61) e Total other loss. Attach schedule 11e Deductions 12 Expense deduction for recovery prcpery (IFIC Section 179). Attach schedule SYMT.3 12 191,194. -191,194. NONE 13 a Charitable contribute's. See instructions. Mach schedule . . . 13e 103,335. 103,335. b Investment interest expense 13b • C 1 Total expenditures to v.tfth Inc SeC000 59(e) election may apply. . . 2 Type or expenciturea 13e1 13e2 d Deductions related to portfolio income 13d e Other deductions. Mach schedule 13e (() Credits 15 a Withholding on LLC allocated to all members 15a b Low-income housing credit 15b e Credits other than the credit shown on line 15b related to rental real estate activities. Attach schedule 15e d Credits related to other rental activities. Attach schedule, 15d e Nonconsenting nonresident members' tax paid by LLC 15e f Other credits. Attach schedule 15f • g New Employment Credit 154 Alternative Minimum Tax (ANT) IMma 17 a Depreciation adjustment on propeny placed in service after 198IYfr 17e —976. 12,252. 11,276. b Adjusted gain or loss 17b e Depletion (other than oil and gas) 17e d Gross income from oil, gas, and geothermal properties 17d e Deductions allocable to oil. gas, and geothermal properties 17e I Other alternative minimum tax items. Attach schedule, . 1W Other Information 18 a Tax-exempt interest income 18a b Other tax-exempt income 18b • e Nondeductible expenses STMT. 3.... the 118,554. 118,554. 19 a Distributions of money (cash and marketable securities) 19a 3.000,000. () 3,000,000. b Distribution of property other than money 19b ( ) 20 a Investment income 20a 17.910. 17.910. b Investment expenses 20b e Other information. See instructions 20e i 11c. a 21 a Total distributtvo encornerpaprent toms. Combine linos 1.2. and 3c through From the result siblract the sum c4 Inas 12 Ihrcugh 13o. 21a 2 139 283 305 703 • 2 444 986. b Analysis (a) (b) Individual (c) (d) Exempt (e) (f) of members: Corporate L Active IL Passive Partnership Organizatei Nominee/Other LLC Members 2,444,986. 13-3495607 *STMT 3 5110334 1.000 R66297 1608 027 3675154 I Farm 568 ci 2015 Sides I 69 EFTA00806474 NEXT MANAGEMENT, LLC 13-3495607 Schedule L Balance Sheets. See the Instructions for Schedule L, before completing Schedules L. M-1, and M-2. Assets Beginning of taxable year End of taxable year (a) (b) (c) (d) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Cash a Trade noes and accounts receivable b Less ailov.ance for bad debts Inventories U.S. government obligations Tax-exempt securities Othat Curreilt aSSetS. Attach schedule Mortgage and real estate loans Other investments. Attach schedule a Bult1,41 and 016/1 deratilltiltatliat. b Less accumulated depreaatron a Depletable assets b Less accumulated depletion Land (net of any amortization). a Intangble assets tamortaable ally) b Less accumulated amortization Other assets. Attach schedule Total assets 4 577 394. 3,532,783. 10 526 765. I 9 290 056. ( 100 000. ) 10,426,765. ( 1 0. ) 9,190,056. • STMT 4 STMT 4 228,894. • 176,432. -214 609. • 83,446. 4,116,424. 4,123,029 3,577,355. ) 0 539 069. ( 3,396,487. ) • 726,542. M r 1 ( ) ) ) ( 1,-.•iiii :;',eet- I 2,361,407. di IIIIIIIIIP JIM • 3: 051607. 17,918,920. 16 760, 866. Liabilities and Capital 15 16 17 18 19 20 21 22 Accounts payed° titmez Mtn. bores Nivea a it Other Current tabula. Mach uneduse All nonrecourse loans ifl rer." '" "" w Other habilties. Attach schedule Members' capital accounts . Total liabilities and capital . =_ 'r!4 1 *,t1 1 1 '_r 13,449,263. 12,182,330. • 1,304,038. 1,786,832. 0 • 1,314,035. • 1,620,133. CO 1,851,584. • 1,171,571. 17,918,920. 16,760,866. Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return. Use total amount under Catania law. See instructions. 1 Nei income (loss) per backs. . . . . 2 Income included on Schedule K. line 1 through line 11c, not recorded on books this yes. Itemize • 3 Guaranteed payrnalls other that health nsurance) 4 Expenses recorded on books this year not included on Schedule K, line 1 through line 13e. Itemize: a oepredewn . .S b Travel and ontonelnment .$ 90,792. • annual ILO to .S 800. • Omer 510,390. • Total. Add line 4a through 4d. • 5 Total of line 1 through line 49 Schedule M-2 Analysis of Itembers' Capital Accounts. Use California amounts. 1 Balance at beginning ol year 1 851,584 5 Total of line 1 through line 4 2 Capital contributed during year a Cue • 6 Distributions: a Cash SIMT.6.. b Property • b Properly • 7 Other decreases. Itemize • 3 Nei income (loss) per baolcsSiMi . 5 2 319 987 8 Total of line 6 and hne 7 4 Other Increases. Itemize • 9 Balance at end of year. Subtract line 8 Irom line 5 2 319 987 601,982. 2 921 969 8 Income recorded o becks this yew not Included on Schedule K. line I through We 11c. Itemize: a Tax-exempt interest. . . . b Other . . . STMT. 5$ 82 521 c Total. Add line 6.2 and line 6b • 7 Deductions included on Schedule K. line 1 through line 13e, not charged against book income this year. Itemize: a Depreciation 56 772 b Other, symr.ss 337 690 c Total. Add line 7a and line 70 • 8 Total. Add line 6c and line 7c. 9 Income (loss) (Schedule K. line 21a). Subtract line 8 from line 5 2 444 986 4 171 571. 3 000 000 3 000 000 1,171,571. Schedule O Amounts from Liquidation used to Capitalize a Limited Liability Company. (complete only it Mel return boils etuaNted CO side I. Question H.) Name of entity liquidated (if more than one, attach a schedule) Type of entity: c (1) O Corporation c (2) S Corporation Q (3) Partnership Li (4) Limited Partnershp Li (5) Sole Proprietor Li (6) Farmer Entity identification number(s) FEIN SSN or MN Corporation CA SOS Amount of liquidation gains recognized to capitalize the LLC • Side 6 Form 568 CI 2015 S001591.000 R66297 1608 027 3676154 I 70 • EFTA00806475 Schedule 1W Limited Liability Company (LLC) Income Worksheet Enter your California income amounts on the worksheet. MI amounts entered must be assigned for Callama law differences. Use only amounts that are from sources derived from or attributable to California when completing lines 1-17 of this worksheet It your business is both vathin and outside of Callama. see Schedule IW instructions to assign the correct amounts to California. If the LLC is wholly within California. the total income amount is assigned to Cana is and is entered beginning with line I a. It the single member LLC (SMLLC) does not meet the 3 million were for ling Schedule 8 (568) and Schedule K (568). the SMLLC is still required to complete Schedule IW. Disregarded entities that do not meet the tong requirements to complete Schedule 8 or Schedule K should prepare Schedule IW by entering the California amounts alubulable to the disregarded entity from the members federal Schedule B. C. D. E. F (Form 1040). or additional schedules associated wan other activities. Do not enter amounts on this worksheet that have already been reported by another LLC to determine its lee. See instructions on page 13 of the Form 568 Booklet for more information on how to complete Schedule IW. 1 a Total California income from Form 568. Schedule B. line 3. See instructions 01a 5,238,765. b Enter the California cost of goods sold Irom Form 568. Schedule B. line 2 and from federal Schedule F (Form 1040) (plus California adjustments) associated with the receipts assigned to California on lines 1a and 4 0 lb 2 a II the answer to Question U(t) on Form 568 Side 2. is 'Yes', include the gross income of this disregarded entity that is not included in lines 1 and 8 through 16 0 2a b Enter the cost ol goods sold of disregarded entities associated with the receipts assigned to California on line 2a 0 2b 3 a LLC's distributive share of ordinary income from pass-through entities 0 3a b Enter the LLC's distributive share of cost of goods sold Irom other pass-through entities associated with the receipt assigned to California on line 3a (see Schedule K-1s (565). Table 3. tine la) 0 3b c Enter the LLC's distributive share of deductions from other pass-through entities associated with the receipt assigned to Cardonsa on line 3a (see Schedule K-I s (565). Table 3. bile lb) 0 3c 266,546. 4 Add gross farm income from federal Schedule F (Form 1040). Use California amounts 0 4 5 Enter the total of other income (not loss) from Form 568. Schedule B. line 10 0 5 NONE 6 Enter the total gains (not losses) from Form 568. Schedule B. line 8 0 6 7 Add line la through line 6 7 5, 505, 311. 8 California rental real estate a Enter the total gross rents from federal Form 8825. line 18a 8a b Enter the total gross rents from all Schedule K-1s (565). Table 3. line 2 8b c Add line 8a and line 8b 8e 9 Other California rentals. a Enter the amount Irom Schedule K (568). line 3a 0 9a b Enter the amount from all Schedule K-1s (565). Table 3. line 3 0 9b c Add lines 9a and 9b 0 9c 10 California interest. Enter the amount from Form 568. Schedule K. line 5 010 NONE 11 California dividends. Enter the amount from Form 568. Schedule K. line 6 011 12 California royalties. Enter the amount Irom Form 568. Schedule K. line 7 012 13 California capital gains. Enter the capital gains (not losses) included in the amounts Irom Form 568. Schedule K. lines 8 and 9 013 14 California 1231 gains. Enter the amount of total gains (not losses) from Form 568. Schedule K. line 10a 014 15 Other California portfolio income (not loss). Enter the amount from Form 568 Schedule K. tine Ila 015 16 Other California income (not loss) not included in line 5. Enter the amount Irom Form 568. Schedule K. tine 11b. O 16 NONE . 17 Total California income. Add lines 7. 8c. 9c. 10. 11. 12. 13. 14. 15. and 16. Line 17 may not be a negative number. Enter here and on Form 568. Side 1. Line I. II less than zero enter -0- 017 5,505,311. • 027 3677154 I- Form 568 ei 2015 Side? SVOS.48 1.000 R66297 1608 71 • EFTA00806476 AXt,ELL YEA'-{ CALIFORNIA FORM 2015 Depreciation and Amortization 3885L Name as shown on return NEXT MANAGEMENT, LLC CaIdornia Secretary of State (SOS) Se no. 200506910067 ACTIVITY: NEXT MANAGEMENT, LLC FEIN 13-3495607 Assets and intangibles placed in service during the 2015 taxable year: Depreciation of assets Amortization of properly 14 Description of properly (b) Date papa In spv[Ce (InntIOWYPrv) — D4 Cost or Other beans OD Method of figuring dcprcoaacei (e) Life or rale (I) Depreciation tar this year CM Code seism al Period or Perceefbile M Arnortizarion to thiS year 1 * * * SEE DETAIL *** 1 Enter line 1. column (9 and column (I) totals I 63, 651. 614 Depreciation Be sure to make adjustments for any basis differences when calculating depreciation. 2 California depreciation for assets placed in service beginning before the 2015 taxable year 3 Total California depreciation. Add line 1(1) and line 2 Amortization Be sure to make adjustments for any basis differences when calculating amortization. 4 California amortization for intangibles placed in service beginning before the 2015 taxable year 4 5 Total California amortization. Add line 1(i) and line 4 5 6 Total depreciation and amortization. Add line 3 and line 5. Enter the total here and on Form 568, Schedule B, line 17a. if from a trade or business. or on federal Form 8825, line 14. if from rental real estate activities 6 7 IRC Section 179 expense deduction from tine 12 of the worksheet in the instructions . 7 NONE 8 Carryover of disallowed deduction to 2016 from line 13 of the worksheet in the instructions 8 NONE 2 3 114,119. 177,770. 200,000. 200,614. 378,384. General Information In general, for taxable years beginning on or after January 1. 2015. California law conforms to the Internal Revenue Code (IRC) as of January 1. 2015. However. there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information. go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001. Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540 or 540NR). and the Business Entity tax booklets. The instructions provided with California tax forms are a summary of California lax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to Include all requirements of the California Revenue and Taxation Code (R8TC) in the tax booklets. Taxpayers should not consider the tax booklets as authoritative law. A Purpose Use form FTB 3885L, Depreciation and Amortization, to compute depreciation and amortization allowed as a deduction on Form 568. Limited Liability Company Return of Income. Attach form FTB 3885L to Form 568. Depreciation is the annual deduction allowed to recover the cost or other basis of business or income producing property with a determinable useful life of more than one year. Land is not depreciable. Amortization is an amount deducted to recover the cost of certain capital expenses over a fixed period. B Federal/State Calculation Differences California law has not always conformed to federal law with regard to depreciation methods. special credits, or accelerated write-oils. Consequently, the recovery periods and the basis on which the depreciation is calculated may be different from the amounts used for federal purposes. Reportable differences may occur If all or part of your assets were placed in service: • Before January 1, 1987: California disallowed depreciation under the federal Accelerated Cost Recovery System (ACRS). Continue to calculate California depreciation in the same manner as in prior years for those assets. • On or after January 1, 1987: California provides special crafts and accelerated write-offs that affect the California basis for qualifying assets. California does not conform to all the changes to federal law enacted in 1993. Therefore. the California basis or recovery periods may be afferent for some assets. California law does not conform to the federal law for: • IRC Section 168(k) relating to the 50% bonus depreciation for certain assets. • The enhanced IRC Section 179 expensing election. • The additional first-year depreciation of certain qualified property placed in service after October 3, 2008. and the election to claim additional research and minimum tax credits in lieu of claiming the bonus depreciation. • 027 7651154 I FTB 3885L 2015 IM MOM LWO R66297 1608 72 EFTA00806477 TAXABLE YEAR CAUF3fINLA SCHEDULE 2015 Pass-Through Entity Ownership EO (568) Name as shown on tax return NEXT MANAGEMENT, LLC FEIN 13-3495607 California Secretary of State (SOS) file no. 200506910067 Part I - Partial Ownership List the entities in which the taxpayer holds ownership of less than 100%. Name of Entity CA SOS file no. FEIN CA Source Income See instrs. Profit and Loss Sharing Percentage. See instructions. Profit Loss • • • • • • • • • • • • • • • • • • • • • • • • • • • Part II - Full Ownership List the disregarded entities in which the taxpayer holds full ownership oil00%. Name of Entity CA SOS file no. FEIN CA Source Income See instrs. Full Ownership • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • 100% TKO TNELVE MANAGEMENT, LW • • • • • • • • • • • • • • • • • • • • • • • • • • • • 201154409 • • • • • • • • • • • • • • • • • • • • • • • • • • • n • • • • • • • • • • • • • • • • • • • • • • • • • • • 0.8000 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 0.8000 • 5Y0505 1.000 R66297 1608 027 8331154 I Schedule EO (568)2015 ■ 73 EFTA00806478 NEXT MANAGEMENT, LLC 027 13-3495607 CALIFORNIA INCOME FROM OTHER PASS-THROUGH ENTITIES Activity Name and Address ID Number and Type of Income A TWO TWELVE MANAGEMENT, LLC 20-1354409 GENERAL TRADE/BUSINESS B C D Activity A B C D Publicly traded pannership Qualified low income housing . . . Activity disposed of dunng year • • • NO NO NO Schedule K -1 Line References 266,546. 1 Ordinary 2 Rental 3 Other 5 Interest 6 Dividend 7 Royalty 8 Short-term 11 a Other 4 Guaranteed 10 ab Net 11 be Other 13 a Charitable 12 Section 13 d Deductions 13 e Other 13 b Investment 20 a Investment 20 b Investment 15 b Low 15 c Credit 15 d Credit 15 1 Other 17 a Depr. 17 b Adj. 17c Depletion 17 d Gross 17 a Deducts 17 1 Other 13 c Section 18 a Tax 18 b Other 18c Nonded 20 Other 9 Long-term Income Real Estate Rental Income Income Income Net Capital Gil. Portfolio Income . . Payments Section 1231 0/1. Income Contributions . . 179 Expense For Portfolio Inc. Deduclions Interest Expense Income Expense . . . Income Housing Credit Rental Real Estate. . Other Rental Credits Adj. Prop. 12/31/86 °Moss Income 003as/Geoth Allen. To ChltGas AMT 59(e) - exempt int. Income tax exempt Income expense Items Net Capital GA. . 5, 160. -58 . 27,762. 600561 1.000 R66297 1608 74 EFTA00806479 TAXABLE YEAR CAIJFORNIA SCHEDULE 2015 Apportionment and Allocation of Income Attach this schedule behind the California tax return and prior to the supporting schedules. For calendar year 2015 or fiscal year beginning month (mmiddlyyyy) , and ending (mmiddryyyy Corporation name California corporation number NEXT MANAGEMENT, LLC Waters-Edge Filers Only: If controlled foreign corporations we Included in the combined report, attach form FTB 2418. Complete Schedule R (Side 1 and Side 2) and all applicable Schedules (R-1 through R-7). See General Information for Schedule R. 1 a Net Income (loss) after state adjustments from Form 100 or Form 100W. Side 2. line 17: Farm 100S. Side 2. line 14: Form 100X. line 4. Form 565 and Form 568 filers: Enter the total of line 1 through line 11c from Schedule K (565 or 568) less the total of line 12 through line 13e Worn Schedule K (565 or 568) • b Waters-edge foreign investment interest offset from form FTB 2424. line 17 • c Total. Combine line 1a and line lb • Nonbusiness Income (Lose) from All Sources. See General Information A for definitions and examples. 2 DoAdends included on line la and not deducted on Form 100. Side 2. line 11: Form 100W. Side 2. lines 11 alb: or Form 1005. Side 2. lines 9 and 10 • 2 00 3 Interest. Attach schedule • 3 00 4 Net income (loss) from the rental of property from Schedule R-3, line 3. column (c) • 4 00 5 Royalties. Attach schedule • 5 00 6 Gain (loss) from the sale of assets from Schedule R-4. line 2. column (e) • 8 00 7 Gain (loss) from sale of a nonbusiness interest in a partnership or LLC. Attach schedule • 7 00 8 Miscellaneous nonbusiness income (loss). Attach schedule • 8 00 9 Total nonbusiness income (loss). Combine line 2 through line 8 • Business Income (Lose) before Apportionment (subject to a separate apportionment formula) 10 11 12 13 Nonunitary partnership or LLC business income (loss) • 10 00 Income (loss) from a separate trade or business. Attach supplemental Schedule R • 11 00 Business income (loss) deferred tom poor years. See General Information L, • 12 00 Capital gain (loss) netting subject to separate apportionment. See General Information M • 13 00 14 Total separately apportionable business income (loss). Combine line 10 through line 13 • 15 Total business income (loss) subject to apportionment for this trade or business. subtract the sum of line 9 and line 14 from line lc • 16 Interest offset from Schedule R-5. line 7 or line 16 (California domiciliaries only) • 17 Business income (loss) for this trade or business subject to apportionment. Combine line 15 and line 16 • 18 a Apportionment percentage from Schedule R-1. Part A. line 2 or Part B. line 5 0 b Business income (loss) apportioned to California. Multiply line 17 by line 18a • Nonbusiness Income (Loss) Allocable to California. If no income (loss) is allocable to California. do not complete line 19 through line 26. enter -0- on line 27 and go to Side 2. line 28. 19 Dividends and interest income (if taxpayer's commercial domicile is in California): a Dividends included in line 2 above • b Interest included in line 3 above • 20 Net income (loss) from the rental of property within California from Schedule R-3. line 3. column (b) • 21 Royalties. Attach schedule • 22 Gain (loss) from the sale of assets within California from Schedule R-4. line 2. total of column (b) and column (d). Combined reporting groups. see General Information M • 23 Gain (loss) from sale of a nonbusiness interest in a partnership or LLC. Attach schedule • 24 Miscellaneous nonbusiness income (loss). Attach schedule • 25 Total nonbusiness income (loss) allocable to California. Combine line 19a through line 24 • 26 Interest offset from line 16 allocated to income included on line 19a and line 19b (California domicikary only) See General Information J • 27 Net nonbusiness income (loss) allocable to California. Subtract line 26 from line 25 • to lb 2,444,98600 00 lc 2,444,98600 00 14 00 15 16 2,444,98600 00 17 18a 2,444,98600 24.8951 % 18b 608,682 00 19a 00 19b 00 00 00 20 21 22 00 00 00 00 23 24 25 26 00 00 27 MMUO 1.000 R66297 1608 027 8011154 I Schedule R 2015 Side 1 75 EFTA00806480 Corporation name NEXT MANAGEMENT, LLC California corporation number California Business Income (Loss) subject to a separate apportionment formula. 28 California business income (loss) from a nonunitary partnership or LLC. • 29 California income (loss) from a separate trade or business. Attach supplemental schedule R • 30 California business income (loss) deferred from prior years. See General Information L • 28 00 29 00 30 00 31 Total business income (loss) separately apportioned to California. Combine ine 28 through line 30 • 31 00 Net Income (Lon) for California Purpose 32 Post-apportioned and allocated amounts from capital gain (loss) netting. See General Information M • 32 00 33 Net income (loss) for California purposes before contributions adjustment. Combine lines 18b. 27.31. and 32. • 33 608,682 00 34 Contributions adjustment from Schedule R-6 line 15 • 30 00 35 Net income (loss) for California purposes. Combine line 33 and line 34. Enter here and on Form 100 or Form 100W. Side 2. line 18 or Form 100S. Side 2 line 15 • 35 608,682 00 • Side 2 Schedule R 2015 syosal 1.000 R6 629 7 1608 027 8012154 I- 76 • EFTA00806481 Corporation name NEXT MANAGEMENT, LLC California corporation number Schedule R-1 Apportionment Formula Part A Standard Method - Single-Sales Factor Formula. Complete this pan only it the corporation uses the single-sales factor formula. See General Information G and Specific Instructions. Total within amilutskle California Total wrthln)Catfamia California (e) Percent within (lb) ÷ (a)) x 100 1 Sales: Gross receipts, less returns, and allowances a Sales delivered or shipped to California purchasers. (i) Shipped from outside California (i) Shipped from within California b Sales shipped from California to: (I) The United States Government (1) Purchasers in a statewbere the taxpayer is not taxable. . • c Total other gross receipts (I) Sales from services (1) Sales or other income from intangibles (iii) Sales nom rental. leasing or itensag or istogibie or real progeny • • (iv) Sales from other gross receipts d Sales from partnerships or LLCs treated as partnerships Total sales 21,043,361. 5,238,765. • • • • • • • • • 21,043,361. • 5,238,765. 2 Apportionment percentage. Divide total sates column (b) by total salescolumn la) and muffler), Iheresult by 100. Enter the result here and on Schedule R. Side 1. line I8a. See General Information H . . • 24.8951 % Part B Thute-FactorFonnula.commete this part only it the corporation uses the three-lam, formula. rill) Total within an outside California Total irdthSIA/ California (e) Percent within California ((h)+ (a)] x 100 1 Property: Use the average yearly value of owned real and tangible personal poverty used in the business at original cost. See General Information E. Exclude property not connected wsh the business and the value of construction in progress. Inventory Buildings Machinery and equipment (including delivery equipment) Furniture and fixtures Land Other tangible assets. Attach schedule. Rented property used in the business. See General Information E. Total • ro 2 Perna use emPkiree we* sales. comnierlons. and drier compensation related to ovenees ocome see General inlormailon F. Total payroll • • . 3 Sales: Gross receipts. less returns. and allowances. See General Information G and Specific Instructions a Sales delivered or shipped to California purchasers. (I) Shipped from outside California (i) Shipped from within California b Sales shipped from California to: (I) The United States Government (i) Purchasers in a state where the taxpayer s not taxable. . c Total other gross receipts Total sales 4 Total percent. Add the percentages in column (c). . . . 5 Apportionment percentage. DnAde line 4 by3. enter the result here and on Schedule R. Side 1. line 18a. See General iniormation H • • • • • 5, °I • % VOSOG 1.000 R66297 1608 027 8013154 I Schedule R 2015 Side 3 77 • EFTA00806482 Corporation name NEXT MANAGEMENT, LLC California corporation number Schedule R-2 Sales and General Questionnaire. Attach additional sheets if necessary. 1 Describe briefly the nature and location(s) of the California business activities. SEE STATEMENT 8 2 State the exact title and principal business activity of all joint ventures, partnerships. or LLCs in which the corporation has an interest. SEE STATEMENT 8 3 Does the California sales figure on Schedule R-1(82 a comparable schedule in a combined reran) include all sales shipped from California where the purchaser is the U.S. Government? E Yes Lxj No II "No: enalain. SEE STATEMENT 8 4 Does the California sales figure on Schedule R-1 (or a comparable schedule in a combined report include all sales shipped from California to states in which the taxpayer is not subject to tax? See General Information G and Specific Instructions. Yes El No If "No," $EE STATEMENT 8 5 Did the taxpayer use reasonable approximation to assign sales under Schedule R-1, Part A. line lc (i)-(iv)?•E Yes E No If "Yes." provide a brief description. 6 Are the nonbusiness items reported on Schedule R. Side 1. line 2 throiiti line 8, and the apportionment factor items reported on Schedule RA treated consistently on all state tax returns filed by the taxpayer? E Yes Lj No If 'No." explain. 7 Has this corporation or any member of its combined unitary group changed the way income is apportioned or allocated to California from prior year tax returns? See General Information I. K Yes El No II "Yes," explain. 8 Does the California sales figure on Schedule R-1 (or comparable schedule in a combined report) include all sales shipped to California destinations? E Yes El No If "No,' Indicate the name of the selling member and the nature of the sales activity believed to be immune. SEE STATEMENT 8 9 Does the California sales figure on Schedule R-1 (or comparable schedule in a combined report) include all sales delivered to customers outside California which have an ultimate destination in Cakfornia? K Yes E No If "No," explain. SEE STATEMENT 8 Schedule R-3 Net Income (Loss) from the Rental of Nonbusiness Property 1 Income Trom rents 2 Rental deductions 3 Net income (loss) from rents. Subtract line 2 from line I. Enter the result here and enter column (c) on Side I. line 4: enter column (b) on Side 1. line 20 (a) Total outside California (b) Total within California (0) Total outside and wt hin California (a) • (b) CI (ID Schedule R-4 Gain (Loss) from the Sale of Nonbusiness Assets California sales of nonbusiness assets include transactions involving: (1) real property located in California; 2) tangible personal property, if h had a shut in California at the time of sale, or if the corporation is commercially domiciled in California and not taxable in the state where the properly had a shut at the time of sale: and (31 intangible oersonal 000env if the co ration's commercial domicile is in California or the income is otherwise allocable to California. Description 01 property sold Real estate and other tangible assets intangible assets Total (a) Gain (loss) from outside California (9) Gain (loss) horn within California (c) Gain (loss) gran outside California (d) Gain (loss) from Within California le) Cain (oss) 90•044(c)+(c0 1 CI C.) CI 0 0 C) C) CI C) 0 2 Total gain (loss) 0 C) CI Cl 0 Enter total gain (loss) line 2. column (e) on Side 1, line 6 and enter total of line 2. columns (b) and (d) on Side 1, line 22. Side 4 Schedule R 2015 027 8014154 r SY0S.12 1.000 R66297 1608 78 EFTA00806483 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Sus. % 179 exp. reduc. an basis Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- ven- Mon Life /CRS cies MA CRS class Current -yr 179 suspense Current-year depreciation OFFICE EQUIPMENT 08/31/1991 22,526. 100. 22,526. 12,526. 12,526.5c 5.000 COMPUTER EQUIPMENT 10/31/1991 18,041. 100. 18,041. 18.041. 182041.SL 5.000 FURNITURE/FIXTURES 05/31/1991 20,823. 100. 20,821. 20,1123. 20,823.5c 7.000 OFFICE EQUIPMENT 01/04/1989 12,215. 100. 12,215. 12,215. 12,215.5c 5.000 COMPUTER 01/04/1989 47,819. 100. 47,819. 47,819. 47,819.31. 5.000 LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 100. 25,209. 25,209. 25209.5c 5.000 FURNITURE 6 FIXTURES 01/04/1989 26,013. 100. 26,011. 26,013. 26,013.5c 7.000 OFFICE EQUIPMENT 07/01/1990 6,535. 100. 6,535. NONE NCMESL 5.000 LEASEHOLD IMPRO(NY) 07/01/1990 33,156. 100. 31,158. 12,540. 33,158.51 31.000 618. FURNITURE/FIXTURES 07/01/1990 4,541. 100. 3,465. 1,076. 2,076. 1,076.51 7.000 COMPUTER EQUIPMENT 01/31/1992 6,539. 100. 8,519. 8,539. 8,539.31 5.000 PRINTER 02/26/1993 4,241. 100. 4,241. 4,241. 4,241.31 5.000 OFFICE EQUIPMENT 05/10/1993 2,382. 100. 2,382. 2,382. 2,382.51 5.000 OFFICE EQUIPMENT 10/01/1993 2,454. 100. 2,454. 2,454. 2.454.SL 5.000 COMPUTER EQUIPMENT 11/01/1993 31,034. 100. 11,500. 21,534. 13,534. 13,534.SL 5.000 OFFICE EQUIPMENT 06/01/1993 2,500. 100. 2,500. 2,500. 2,500.31 5.000 LEASEHOLD IMPROV(NYI 02/28/1994 8,179. 100. 8,179. 4,174. 4./84.SL 39.000 210. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 100. 2,319. 1,163. 1,222.31 39.000 59. LHI INV) 07/31/1994 10,964. 100. 20,964. 5,468. 5.749.SL 39.000 281. LHI INV) 08/31/1994 32,074. 100. 32,074. 15,927. 16,749.51 39.000 822. LHI INV) 10/30/1994 11,325. 100. 11,325. 5,571. 5,861.51 39.000 290. LHI INV) 11/30/1994 12,425. 100. 12,425. 6,101. 6,420.51 39.000 319. OFFICE EQUIPMENT 07/01/1995 55,855. 100. 55,855. 55,854. 55,654.5c 5.000 LEASEHOLD IMPROVE 07/01/1995 12,155. 100. 12,155. 6,105. 6,417.SL 39.000 312. LEASEHOLD IMPROVE 07/01/1995 11,496. 100. 21,498. 5,772. 6,067.SL 39.000 295. FURNITURE 6 FIXTURES 07/01/1995 31,451. 100. 31,451. 11,451. 31,481.SL 7.000 FURNITURE 6 FIXTURES 07/01/1995 16,832. 100. 26,832. 16,811. 16,831.51 7.000 OFFICE EQUIPMENT(NYI 07/01/1996 45,326. 100. 45,326. 45,326. 45,126.51 5.000 OFFICE EQUIPMENT(FLI 07/01/1996 20,695. 100. 20,695. 10,694. 10,694.31 5.000 LEASEHOLD IMPROV(NYI 07/01/1996 54,075. 100. 54,075. 25,596. 26,983.51 39.000 1,387. FURNITURE 6 FIXTURES 07/01/1996 35,874. 100. 17,500. 18,374. 18,374. 18,174.SL 7.000 FURNITURE 6 FIXTURES 07/01/1996 26,528. 100. 26,528. 16,528. 16,528.31 7.000 FURNITURE 6 FIXTURES 07/01/1996 6,256. 100. 6,256. 6,256. 6,256.31 7.000 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 100. 55,400. 24,804. 26,225.5c 39.000 1,421. OFFICE FURNITURE 07/01/2997 8,872. 100. 8,872. 200DR HY 7 OFFICE FURNITURE 07/01/1997 1,952. 100. 2,952. 20008 HY 7 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 79 EFTA00806484 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % lig exp. reduc. in basis Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me• thod Con- yen• lion Life !CRS class MA CRS class Current •yr 179 expense Current•year depreciation LEASEHOLD IMPROV. 11/22/1998 11,700. 100. 11,700. 4,838. 5,138.SL 39.000 300. LEASEHOLD IMPROV. 08/28/1998 29,553. 100. 29,551. 12,413. 13,171.SL 39.000 758. FURNITURE 6 FIXTURES 07/01/1998 12,254. 100. 12,254. 12,254. 12,254.51 7.000 FURNITURE 6 FIXTURES 07/01/1998 21,639. 100. 21,639. 21,619. 21,619.5E 7.000 FURNITURE 6 FIXTURES 07/01/1998 13,092. 100. 11,092. 11,092. 13, 092. si. 7.000 OFFICE EQUIPMENT 07/01/1998 126,474. 100. 126,474. 126,474. 126.4/4.SL 5.000 OFFICE EQUIPMENT 07/01/1998 77,3.09. 100. 77,109. 77,109. 77,109.SL 5.000 • COMPUTER 01/28/1998 236,963. 100. 236,963. 227,261. 227,263.5E 5.000 • COMPUTER 01/28/1998 0,330. 100. 67,330. 64,573. 64, 573. si. 5.000 • COMPUTER 01/28/1998 35,900. 100. 35,900. 34,412. 34,431.51 5.000 LEASEHOLD IMPROV(NYI 07/01/1999 112,785. 100. 112,785. 44,707. 47,599.51 39.000 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 100. 66,766. 66,766. 66,766.SL 7.000 FURNITURE 6 F (FL) 07[01L1_9_99 1,951. 100. 1,951. 1,953. 1,951.5L 7.000 COMPUTER (NYI 07/01/1999 202,098. 100. 202,098. 202,098. 202,098.5L 5.000 COMPUTER (FLI 07/01/1999 45,399. 100. 45,399. 45.399. 45,199.51 5.000 COMPUTER (CAI 07/01/1999 69,509. 100. 69,509. 69,509. 69,509.51 5.000 COMPUTER (NYI 07/01/1997 38,206. 100. 36,206. 38,206. 38,206.51 5.000 COMPUTER (FLI 07/01/1997 12,929. 100. 12,929. 12,928. 12, 928. sc. 5.000 COMPUTER-96'RETIRED 07/01/1996 -19,757. 100. -19,757. -19,757. -19.757.SL 5.000 COMPUTER (NYI 07/01/2000 174,341. 100. 174,341. 174,341. 174,341.SL 5.000 COMPUTER (FLI 07/01/2000 66,827. 100. 66.827. 66,07. 66,827.5E 5.000 COMPUTER (CAI 07/01/2000 66,027. 100. 66,027. 66,027. 66,027. SL 5.000 LEASEHOLD IMPROV(NYI 07/01/2000 37,330. 100. 37,330. 11,817. 14,794.SL 39.000 957. FURNITURE 6 F (NY) 07/01/2000 39,506. 100. 39,506. 19,506. 39,506.5E 7.000 OFFICE EQUIPMENT (NY 01/01/2001 2,014. 100. 2,014. 20008 HY 5 OFFICE EQUIPMENT (NY 01/01/2001 1,959. 100. 1,959. 200DB HY S OFFICE EQUIPMENT 01/431/2001 4,899. 100. 4,899. 200DB HY S OFFICE EQUIPMENT 05/01/2001 4,244. 100. 4,244. 200DB HY S OFFICE EQUIPMENT 01/01/2001 1,161. 100. 1,161. 200DB HY S OFFICE EQUIPMENT 01/01/2001 1,546. 100. 2,546. 200DB HY S OFFICE EQUIPMENT 02/16/2001 1,132. 100. 2,3.32. 200DB HY S OFFICE EQUIPMENT 02/15/2001 2,271. 100. 2,273. 200DB HY S OFFICE EQUIPMENT- CA 07/15/2002 4,569. 100. 4,569. 20008 HY 5 FURNITURE -NY 04/30/2002 12,000. 100. 12,000. 200os Hy 7 COMPUTER -NY 04/10/2003 41,698. 100. NONE 41,698. 41,698. 41,698.SL 5.000 COMPUTER -NY 04/10/2003 20,169. 100. NONE 20,169. 20,169. 20,169.5E 5.000 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 80 EFTA00806485 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed In service Unadjusted cost or basis Bus. % lig exp. reduc. in basis Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- yen- lion Life /CRS class MA CRS class Current -yr 179 expense Current•year depreciation COMPUTER -NY 04/2612003 1,372. 100. NONE 3.312. 3,372. 1,372.m. 5.000 COMPUTER 05/21/2003 4,441. 100. NONE 4,443. 4,443. 4,441. si. 5.000 COMPUTER 06/17/2003 6,582. 100. NONE 6,562. 6,582. 6,582.81 5.000 COMPUTER 07/22/2003 5,359. 100. NONE 5,359. 5,359. 5,359. sc. 5.000 COMPUTER - NY 06/06/2003 19,961. 100. NONE 29,961. 19,961. 19,962.m. 5.000 OFFICE EQUIPMENT -NY 08/22/2003 6,045. 100. 8,045. 8,045. 6,045.m. 5.000 OFFICE EQUIPIEIT - FL 04/09/2003 11,449. 100. 21,449. 11,449. 13,449.m. 5.000 OFFICE EQUIP-FL 04/09/2003 5,561. 100. 5,563. 5,563. 5,561. sc. 5.000 OFFICE EQUIP-FL 04/09/2003 15,000. 100. 15,000. 15,000. 15,000.m. 5.000 OFFICE EQUIP-FL 06/01/2003 4,088. 100. 4,088. 4,088. 4.096.m. 5.000 OFFICE EQUIP-FL 06/30/2003 1,880. 100. 1,880. 1,880. 1,880.51 5.000 OFFICE EQUIP-FL 06/06/2003 2,096. 100. 2,098. 2,098. 2,096. SL 5.000 OFFICE EQUIP-FL 10/02/2003 2, HO . 100. 2,187. 2,187. 2, 307. sc. 5.000 OFFICE EQUIP-FL 10/08/2003 1,639. 100. 1,619. 2,639. 1,639. SL 5.000 OFFICE EQUIP-FL 11/18/2003 1,355. 100. 3,355. 3,355. 1,355. SL 5.000 OFFICE EQUIP-FL 12/31/2003 1,596. 100. 3.596. 3,596. 1,596.m. 5.000 OFFICE EQUIP-CAL 04/09/2003 17,211. 100. 17.211. 17,211. 17,213 . sc. 5.000 OFFICE EQUIP-CAL 04/16/2003 15,000. 100. 15.000. 15,000. 15,000.m. 5.000 OFFICE EQUIP-CAL 06/30/2003 6,016. 100. 6,016. 6,026. 6,016.m. 5.000 OFFICE EQUIP-CAL 12/31/2003 2,420. 100. 2,420. 2,420. 2,420. SL 5.000 LEASEHOLD IMPRO-NY 06/22/2003 103,492. 100. 103,492. 30,634. 33,288.5E 39.000 2,654. LEASEHOLD IMPRO-NY 07/24/2003 26,080. 100. 26,080. 7,666. 8,335.51 39.000 669. LEASEHOLD IMPRO-NY 08/12/2003 17,758. 100. 27,756. 5,176. 5,631.51 39.000 455. LEASEHOLD IMPRO-NY 09/18/2003 128,435. 100. 128,435. 17,185. 40,478.m. 39.000 3,293. LEASEHOLD IMPRO-NY 10/26/2003 16,767. 100. 16,767. 4,820. 5,250.51 39.000 430. LEASEHOLD IMPRO-NY 11/19/2003 41,981. 100. 41,981. 11,9/1. 13,047.m. 39.000 1,076. FURNITURE/FIX- NY 11/25/2003 1,598. 100. 3,598. 3,598. 1,598.51 7.000 FURNITURE6FIX- NY 12/04/2003 28,027. 100. 26,027. 28,027. 28,027.m. 7.000 FURNITURE6FIX- NY 08/08/2003 48,543. 100. 46,541. 48,543. 48,543.m. 7.000 FURNITURE6FIX- NY 09/26/2003 1,874. 100. 3,04. 3,874. 1,874.51 7.000 FURNITURE/FIX- NY 12/06/2003 7,275. 100. 7,275. 7,275. 7,275.31 7.000 COMPUTER - NY 04/01/2003 46,500. 100. 46,500. 46,500. 46,500.m. 5.000 OFFICE EQUIPMENT-NY 01/05/2004 10,835. 100. 10,815. SL 5.000 MAINTENANCE-NY 02/25/2004 7,750. 100. 7,750. SL 1.000 MAINTENANCE-FL 02/25/2004 2,500. 100. 2,500. SL 1.000 OFFICE EQUIPMENT-CAL 09/29/2004 8,646. 100. 3,915. 4011. 4,730. 4, 730. si. HY 5.000 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 81 EFTA00806486 NEXT MANAGEMENT LLC 2015 Depreciation 11-3405607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % 179 exp. reduc. MINIS Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- ven- tion Life PISS cies MA CRS class Current -yr 179 expense Current•year depreciation LEASEHOLD IMPROVE-HY 01/16/2004 5,649. 100. 5,649. 1,589. 1,734.SL "al 39 145. LEASEHOLD IMPROVE-NY 02/17/2004 3,686. 100. 7,686. 2,143. 2,340.SL MI 39 197. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 100. 25,000. 17,499. 19,164.SL HY 15.000 15 1,665. FURNITURELFIX-NY 11/21/2004 6.001. 100. NONE 6,001. 6,001. 6,001.n. 3.000 FURNITURELFIX-NY 01/30/2004 165. 100. NONE 265. 165. 165.SL 3.000 OFFICE EQUIPMENT-NY 01/01/2004 2,500. 100. NONE 2,500. 2,500. 2,500.SL HY 1.000 3 OFFICE EQUIPMENT-FLA 02/07/2005 2,210. 100. 2,110. SL 5.000 OFFICE EQUIPMENT-CAL 01/16/2005 1,984. 100. 1,984. SL 5.000 LEASEHOLD IMP-CAL 02/24/2005 6,000. 100. 6,000. 3,933. 4,331.SL 15.000 400. LEASEHOLD IMP- CAL 01/21/2005 800. 100. 800. 517. 570.SL 15.000 51. FURNITURE 6 FIXT CAL 01/16/2005 6,201. 100. 6,191. SL 3.000 FURNITURE 6 FIXT CAL 04/29/2005 7,975. 100. 7,975. SL 3.000 OFFICE EQUIPMENT-NY 02/07/2005 6,714. 100. 6,724. SL 5.000 OFFICE EQUIPMENT-NY 02/05/2005 2,496. 100. 26. 2,4/0. 2,470. 2,470.SL 5.000 OFFICE EQUIPMENT-NY 02/15/2005 2,086. 100. NONE 2,086. 2,086. 2,086. SL 5.000 OFFICE EQUIPMENT-NY 11/01/2005 13,164. 100. NONE 21,264. 13,164. 13.164.SL 5.000 FURNITURE4FIX-NY 01/20/2005 6,215. 100. NONE 6,215. 6,215. 6,215.n 3.000 FURNITURE4FIX-NY 01/11/2005 111. 100. NONE 111. 111. 111.SL 3.000 FURNITURELFIX-NY 06/17/2005 8,440. 100. NONE 8,440. 8,440. 8,440.SL 3.000 FURNITURELFIX-NY 07/14/2005 936. 100. NONE 936. 936. 936.SL 3.000 OFFICE EQUIPMENT- NY 02/16/2006 9,755. 100. 9,755. SL 5.000 OFFICE EQUIP. - FLA 02/09/2006 5,550. 100. 5,550. SL 5.000 LEASEHOLD IMP-NY 02/21/2006 10,485. 100. 10,485. 6,175. 6,874 . sc. 15.000 690. LEASEHOLD IMP-NY 01/01/2006 21,461. 100. 21.461. 12.640. 14.072.SL 15.000 1,431. FURNITURE 6 FIX-FLA 05/15/2006 2,789. 100. 2,789. SL 5.000 FURNITURE 6 FIX-FLA 07/20/2006 2.999. 100. 2,999. SL 5.000 FURNITURE 6 FIX-NY 01/14/2006 4,664. 100. 3,907. 757. 757. 751.SL 5.000 OFFICE EQUIPMENT-NY 05/15/2007 39,598. 100. 25,000. 14,598. 14,598. 14,598.51 5.000 OFFICE EQIPMENT-NY 11/20/2007 20,628. 100. NONE 29.626. 19,628. 19,628.SL 5.000 OFFICE EQUIPMENT-FL 05/15/2007 11,175. 100. NONE 11.175. 11,175. 11.175.SL 5.000 OFFICE EQUIPMENT-FL 11/20/2007 5,328. 100. NONE 5,328. 5,328. 5,328.SL 5.000 OFFICE EQUIPMENT-CA 05/15/2007 8,291. 100. NONE 8,293. 8,293. 8,291.0c 5.000 OFFICE EQUIPMENT-CA 11/20/2007 1,084. 100. NONE 3,084. 3,084. 1,084.n 5.000 FURNITURE 6 FIX-NY 02/14/2007 4,881. 100. NONE 4,881. 4,881. 4,881.SL 3.000 FURNITURE 6 FIX-NY 05/15/2007 6,610._ 100. NONE 6,610. 6,620. 6,610.SL 1.000 OFFICE EQUIPMENT-NY 01/18/2008 8,967. 100. 8,9O. SL HY 5.000 5 Less: Retired Assets TOTALS 'Assets Retied SA 5290271400 866297 1608 82 EFTA00806487 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed In service Unadjusted cost or basis Sus. % in exp. reduc. MINIS Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- yen- Mon Life /CRS cuss MA CRS class Current -yr 179 expense Current•year depreciation OFFICE EQUIPMENT-NY 05/01/2008 26,400. 100. 16,013. 36/. 144. 344. DDB 5.000 OFFICE EQUIPMENT-NY 07/02/2008 21,364. 100. NONE 21,364. 10,657. 10, 657. ODB 5.000 OFFICE EQUIPMENT-FL 01/21/2008 22,126. 100. NONE 12,116. 11,362. 12,362.DDB 5.000 OFFICE EQUIPMENT-CA 01/21/2008 14,060. 100. NONE 24,069. 13,194. 13,194.DDB 5.000 LEASEHOLD IMP-NY 02/12/2008 11,736. 100. 21,736. 5,415. 6, 207 . sc. MQ 15 762. LEASEHOLD IMP-NY 12/19/2008 16,000. 100. 26,000. 6,468. 7,534.51 MQ 15 2,066. FURNITURE 6 FIX-NY 05/07/2008 1,542. 100. NONE 3,542. 3,130. 1,254.ope 1.000 115. FURNITURE 6 FIX-NY 12/26/2008 4,400. 100. NONE 4,400. 3,899. 4.042.DDB 1.000 143. FURNITURE 6 FIX-NY 01/21/2009 4,400. 100. 4,400. SL 1.000 LEASEHOLD IMP-NY 07/01/2010 75,753. 100. 25,000. 50,751. 19,124. 22,286.150os HY 15 3,162. FURNITURE 6 FIX-NY 01/14/2010 1,214. 100. NONE 1,214. 942. 1.050.200DB HY 7 108. LEASEHOLD IMP-NY 11/14/2011 11,227. 100. 11,227. 15008 HY 25 OFFICE EQUIPMENT-NY 05/31/2011 4.382. 100. 4,382. 200os HY 5 OFFICE EQUIPMENT-CA 11/14/2011 13,425. 100. 9,391. 4,034. 2,733. 1.196.200os HY 5 465. LEASEHOLD IMP-NY 05/04/2012 4,167. 100. 4,167. 150os HY 25 LEASEHOLD IMP-NY 11/10/2012 14,059. 100. 14,059. 150DB Hy 25 LEASEHOLD IMP-CA 09/16/2012 5,285. 100. 5,285. 150DB HY 25 OFFICE EQUIPMENT-NY 02/22/2012 6,075. 100. 2,489. 4,566. 3,266. 1.794.200os HY 5 528. OFFICE EQUIPMENT-NY 06/22/2012 1,325. 100. NONE 3,325. 2,367. 2.750.200DB HY 5 383. OFFICE EQUIPMENT-NY 06/05/2013 21,002. 100. NONE 11,001. 5,720. 7.832.200DB HY 5 2,122. LEASEHOLD IMP-NY 09/19/2013 131,030. 100. NONE 111,030. 19,000. 30,203.150DB HY 25 11,203. LEASEHOLD IMP-NY 12/17/2013 9,631. 100. NONE 9,613. 2,397. 2.221.150DB HY 25 824. LEASEHOLD IMP-NY 12/31/2013 100,954. 100. NONE 100,954. 14,619. 23,271.150os HY 15 8,632. LEASEHOLD IMP-FL 09/26/2013 13,994. 100. NONE 21,904. 2,029. 1,225.250os HY 15 1,196. LEASEHOLD IMP-CA 08/31/2013 21,300. 100. NONE 21,300. 3,080. 4,910.150DB HY 15 2,821. FURNITURE 6 FIX-NY 06/06/2013 30,920. 100. NONE 39,929. 15,465. 22,469.200os HY 7 6,984. FURNITURE 6 FIX-NY 12/31/2013 11,688. 100. NONE 21,600. 4,532. 6.576.200os HY 7 2,044. FURNITURE 6 FIX-FL 01/29/2013 2,825. 100. NONE 2,825. 2,096. 1.590.200os HY 7 494. OFFICE EQUIPMENT-NY 01/26/2014 22,221. 100. NONE 22,211. 4,442. 1.1,550.200os HY 5 7,108. LEASEHOLD IMP-NY 02/27/2014 22,760. 100. NONE 22,760. 2,552. 6.635.200os HY 5 4,083. LEASEHOLD IMP-NY 06/04/2014 156,004. 100. NONE 156,004. 7,800. 22,620.150os HY 25 14,820. FURNITURE 6 FIX-NY 01/10/2014 23,085. 100. NONE 21,085. 3,299. 6.951.200os HY 7 5,654. FURNITURE 6 FIX-NY 02/14/2014 41,566. 100. NONE 41,566. 5,940. 16,120.200os HY 7 10,180. FURNITURE 6 FIX-NY 05/07/2014 27,823. 100. NONE 27,811. 2,545. 6.907.200os HY 7 4,362. FURNITURE 6 FIX-FL 01/10/2014 7,196. 100. NONE 7,196. 1,028. 2.790.200os HY 7 1,762. SOFTNARE 01/22/2015 155,603. 100. 155,603. 47,545.sc 1.000 47,545. Less: Retired Assets TOTALS 'Assets Refired SA 5190271.000 866297 1608 83 EFTA00806488 NEXT MANAGEMENT, LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed in service Unadjusted cost or basis Bus. % in exp. rictus. in basis Basis Reduction Basis for Depreciation Beginning Accumulated depreciation Ending Accumulated depreciation Me- thod Con- yen- lion Life !CRS class MA CRS class Current -yr 179 expense Current-year depreciation OFFICE EoulFNENT-NY 12/31/2015 35,905. 100. NONE 35,905. 1, 101. 200Ds Hy 5 NONE 7,181. LEASEHOLD IMP-NY 04/05/2015 63,396. 100. NONE 61,306. 1,270.250DH Hy Is NONE 3,170. LEASEHOLD IMP-FL 09/25/2015 25,179. 100. NONE 25,179. 1,259.250DH Hy 25 NONE 1,259. LEASEHOLD IMP-CA 06/26/2015 44,230. 100. NONE 44,230. 2,212.150os Hy 25 NONE 2,222. FURNITURE 6 FIX-FL 10/12/2015 1,770. 100. NONE 3,718. 540.200DB Hy 7 NONE 540. FURNITURE 6 FIX-NY 07/01/2015 0,706. 100. NONE 8,706. 1,244.200DB Hy 7 NONE 1,244. LEASEHOLD IMP-MET 07/01/2015 10,000. 100. NONE 10,000. 500.250DB Hy IS Nom, 500. Less: Retired Assets 340,193. 340,193. 326,267. 326,267. TOTALS 4,123,029. 296,021. 3,827,000. 2,401,644. 2,579,414. NoNEI 177,770. 'Assets Retied SA 5X9027 1.000 R66297 1608 84 EFTA00806489 NEXT MANAGEMENT LLC 2015 Amortization 11-340560T Description of Property NEXT_MANAGEMENT, LLC CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date placed in service Cost or basis Beginning Accumulated amortization Ending Accumulated amortization Code Current•year Lite amortization OROANIZATION_COSTS 01/04/1989 26,951. 26,950. 26,950. 709 5.000 r START-UP COSTS 07/16/1992 26,000. 26,000. 26,000. 195 5.000 START-UP COSTS 07/01/1992 25,000. 25,000. 25,000. 195 5.000 COV. NOT TO COMPETE 10/31/2010 3,000,000. 411413. 2,013413. 191 15.000 200,000. ORGANIZATION COSTS 06/15/2015 15,190. 624. 709 15.000 614. Less: Retired Assets TOTALS 3 04,1041 914 253 1 111 897 900.614 ' Assets Retired SA SX9026 1.000 866297 1608 85 EFTA00806490 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Asset description Date Placed in Service AMT basis for depreciation AMT accumulated depredation AMT me- thod AMT conven• lion AMT life AMT depreciation deduction Regular depreciation deduction Post•86 depreciation adjustment Leased pets. prop. preference Real property preference OFFICE EQUIPMENT-CAL 09/29/2004 4,731. 4,139. HY 5.000 LEASEHOLD IMPROVE-NY 01/16/2004 5,649. 1,519. SL NM 39.000 145. 145. LEASEHOLD IMPROVE-NY 02/17/2004 7,686. 2,056. SL lim 39.000 197. 197. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 17,082. SL HY 15.000 1,665. 1,665. OFFICE EQUIPMENT-NY 01/01/2004 2,500. 2,187. HY 3.000 LEASEHOLD IMP-NY 02/12/2008 11,736. 3,422. SL HO 15.000 191. 782. 391. LEASEHOLD IMP-NY 12/19/2008 26,000. 3,870. SL HO 15.000 533. 1,066. 533. FURNITURE 4 FIX-NY 05/07/2008 1,542. 3,542. 7.000 115. 115. FURNITURE 4 FIX-NY 12/26/2008 4,400. 4,400. 7.000 141. 143. LEASEHOLD IMP-NY 07/01/2010 50,753. 19,124. 150DB HY 15.000 3,162. 3,162. FURNITURE 4 FIX-NY 01/14/2010 1,214. 842. 15000 Hy 7.000 149. 108. OFFICE EQUIPMENT-CA 11/14/2011 4,034. 2,572. 15000 Hy 5.000 672. 465. -207. OFFICE EQUIPMENT-NY 02/22/2012 4,506. 2,676. 15000 Hy 5.000 764. 528. -236. OFFICE EQUIPMENT-NY 06/22/2012 1,325. 1,941. 15008 HY 5.000 554. 381. -171. OFFICE EQUIPMENT-NY 08/05/2013 11,001. 4,455. 15008 Hy 5.000 1,964. 2,112. 149. LEASEHOLD IMP-NY 09/19/2013 111,030. 19,000. 15000 Hy 15.000 11,203. 11,203. LEASEHOLD IMP-NY 12/17/2013 9,631. 1,397. 15008 Hy 15.000 824. 824. LEASEHOLD IMP-NY 12/31/2013 100,954. 14,639. 15008 HY 15.000 8,632. 8,632. LEASEHOLD IMP-FL 09/26/2013 13,994. 2,029. 15008 HY 15.000 1,196. 1,196. LEASEHOLD IMP-CA 08/31/2013 21,300. 3,009. 15008 Hy 15.000 1,821. 1,821. FURNITURE 4 FIX-NY 09/09/2013 39,929. 11,914. 150011 NY 7.000 6,001. 6,984. 983. FURNITURE 4 FIX-NY 12/31/2013 11,688. 3,488. 150o9 NY 7.000 1,757. 2,044. 20. FURNITURE 4 FIX-FL 01/29/2013 2,825. 843. 150o9 NY 7.000 425. 494. 69. OFFICE EQUIPMENT-NY 01/29/2014 22,221. 3,332. 150o9 NY 5.000 5,664. 7,108. 1,444. LEASEHOLD IMP-NY 02/27/2014 12,760. 1,914. 150011 HY 5.000 3,254. 4,003. 829. LEASEHOLD IMP-NY 06/04/2014 156,004. 7,800. 150o9 Hy 15.000 14,820. 14,820. FURNITURE 4 FIX-NY 01/10/2014 23,085. 2,472. 150o9 Hy 7.000 4,416. 5,654. 1,238. FURNITURE 4 FIX-NY 02/14/2014 41,566. 4,452. 150DB Hy 7.000 7,952. 10,180. 2,228. FURNITURE 4 FIX-NY 05/07/2014 17,823. 1,906. 150o9 Hy 7.000 3,408. 4,362. 954. FURNITURE 4 FIX-FL 07/10/2014 7,196. 771. 15008 HY 7.000 1,377. 1,762. 385. OFFICE EQUIPMENT-NY 12/31/2015 35,905. 15008 HY 5.000 5,386. 1,181. 1,795. LEASEHOLD IMP-NY 08/05/2015 63,396. 150DB NY 15.000 3,170. 3,170. LEASEHOLD IMP-FL 09/25/2015 25,179. 150DB NY 15.000 2,259. 1,259. LEASEHOLD IMP-CA 06/26/2015 44,230. 150DB NY 15.000 2,222. 2,212. FURNITURE 4 FIX-FL 10/12/2015 1,778. 150DB NY 7.000 405. 540. 135. FURNITURE 4 FIX-NY 07/01/2015 8,706. 150DB NY 7.000 932. 1,244. 312. LEASEHOLD IMP-NET 07/01/2015 10,000. 150DB NY 15.000 500. 500. Less: Retired Assets TOTALS 959,139. 152,005. 96,810. 108,144. 11,334. SA 5X9034 ;.000 R66297 1608 • Assets Retired 86 EFTA00806491 027 Reconciliation of State to Federal Page One State Name CALIFORNIA Description Federal Return State Adjustment Applicable to State Income: 1A GROSS RECEIPTS 20,059,894. 20,059,894. 1B LESS RETURNS AND ALLOWANCES 1C BALANCE 20,059,894. 20,059,894. 2 LESS COSTS OF GOODS SOLD 3 GROSS PROFIT 20,059,894. 20,059,894. 4-5 ORD INC(LOSS)-OTHER PTNRSHPS 248,456. 18,090. 266,546. 6-7 NET FARM PROFIT (LOSS) 8-9 NET GAIN (LOSS) 10-11 OTHER INCOME (LOSS) -234,496. -234,496. TOTALINCOME 20,073,854. 18,090. 20,091,944. Deductions: 13 SALARIES AND WAGES 11,291,732. 11,291,732. 14 GUARANTEED PAYMENTS 15 BAD DEBTS 8,131. 8,131. 16 INTEREST 17 DEPRECIATION 120,998. 257,386. 378,384. 18 DEPLETION 19 RETIREMENT PLANS, ETC 106,026. 106,026. 20 EMPLOYEE BENEFIT PROGRAMS 338,804. 338,804. 21 OTH DED (FED LNS 11+13+14+20) 5,792,261. -353,805. 5,438,456. TOTALDEDUCTIONS 17,657,952. -96,419. 17,561,533. NETORDINARYINCOME(LOSS) 2,415,902. 114,509. 2,530,411. SY055i 000 NEXT MANAGEMENT, LLC R66297 1608 13-3495607 87 EFTA00806492 027 Reconciliation of State to Federal Schedule K State Name CALIFORNIA DemdptIon Federal Return State Adjustment Applicable to State ** INCOME ** 1 ORDINARY INCOME 2.415,902. 11', -)ui. 2,530,411. 2 RENTAL REAL ESTATE INCOME 3 OTHER RENTAL INCOME 4 GUARANTEED PAYMENTS 5 INTEREST INCOME 17.910. 17.910. 6 DIVIDEND INCOME 7 ROYALTY INCOME 8 NET SHORT-TERM CAP.GN/LS 9 NET LONG-TERM CAP. GN/LS 10A-B NET GN/LS UNDER SEC.1231 11A OTHER PORTFOLIO INCOME 11B-C OTHER INCOME/LOSS ** DEDUCTIONS ** 12 SECTION 179 EXPENSE DEDUCTION 191,194. -191,194. NONE 13A CHARITABLE CONTRIBUTIONS 103,335. 103,335. 13B INVESTMENT INTEREST EXPENSE 13C1 IRC SEC 59(E) EXPENSE 13D PORTFOLIO DEDUCTIONS 13E OTHER DEDUCTIONS ** CREDITS ** 15A W/HOLDING ALLOC TO ALL PTRS 15B LOW INC HOUSING CR-ELEC PSHP 15C CREDIT - RENTAL REAL ESTATE 15D CREDIT - OTHER RENTAL 15F OTHER CREDITS ** AMT ITEMS ** 17A ACCEL. DEPR. POST 12/86 Z 2. 11.276. 17B ADJUSTED GAIN OR LOSS 17C DEPLETION 17D GROSS INCOME OIL/GAS 17E DEDUCTIONS OIL/GAS 17F OTHER AMT ITEMS ** OTHER ** 18A TAX-EXEMPT INTEREST INCOME 18B OTHER TAX-EXEMPT INCOME 18C NONDEDUCTIBLE EXPENSES 118,554. 118,554. 20A INVESTMENT INCOME 17.910. 17.910. 20B INVESTMENT EXPENSE 5Y05521.000 R66297 1608 EFTA00806493 NEXT MANAGEMENT, LLC 13-3495607 FORM 568 SUPPORTING SCHEDULES SCHEDULE B - INCOME AND DEDUCTIONS LINE 4 ORDINARY INCOME FROM OTHER PARTNERSHIPS & FIDUCIARIES FROM PASS THROUGH ENTITY - TWO TWELVE MANAGEMENT, LLC 266,546. TOTAL ORDINARY INCOME FROM 0TH PSHPS & FIDUCIARIES 266,546. LINE 11 - OTHER LOSS FOREIGN EXCHANGE LOSS 234,496. TOTAL OTHER LOSS 234,496. LINE 21 - OTHER DEDUCTIONS TRAVEL AND ENTERTAINMENT 90,792. INSURANCE EXPENSE 112,776. OFFICE SUPPLIES AND EXPENSES 105,286. PRINTING EXPENSE 43,338. SCOUTING EXPENSE 9,354. COMPUTER EXPENSE 108,201. CLEANING SERVICE 40,953. UTILITIES 34,652. POSTAGE 11,389. MISCELLANEOUS 104,822. BANK CHARGES 57,683. PUBLICATIONS & SUBSCRIPTIONS 12,677. TRAVEL 803,503. ADVERTISING AND PROMOTION 259,861. COMMISSIONS EXPENSE 2,002,456. PROFESSIONAL FEES 240,861. TELEPHONE EXPENSE 214,004. CONSULTING FEES 640,280. CONTEST EXPENSE 5,550. PAYROLL PROCESSING EXPENSE 14,299. OVERHEAD REIMBURSEMENT -1,470,551. MISCELLANEOUS MODEL EXPENSES 55,856. PROMOTIONAL MODEL EXPENSES 100,004. LITIGATION SETTLEMENT 45,632. CALIFORNIA LLC FEE 6,000. NYS LLC FEE 3,000. ORGANIZATION COSTS 5,000. REPAIRS 414,619. RENTS 749,810. TAXES 616,349. TOTAL OTHER DEDUCTIONS 5,438,456. STATEMENT 1 MUNI31A00 R66297 1608 89 EFTA00806494 NEXT MANAGEMENT, LLC 13-3495607 FORM 568 SUPPORTING SCHEDULES TAXES NYC UNINCORPORATED BUSINESS TAX NONE PAYROLL TAXES 578,105. NY COMMERCIAL RENT TAX 21,486. FL COMMERCIAL RENT TAX 1,853. CA LLC TAX NONE BEVERLY HILLS TAX 14,500. LA TAX 405. TOTAL TAXES 616,349. STATEMENT 2 6/O(063 1.000 R66297 1608 90 EFTA00806495 NEXT MANAGEMENT, LLC 13-3495607 FORM 568 SCHEDULE K SUPPORTING SCHEDULES SCHEDULE K - LINE 5 - INTEREST INCOME INTEREST INCOME 17,910. TOTAL INTEREST INCOME 17,910. SCHEDULE K - LINE 12 - EXPENSE DEDUCTION FOR RECOVERY PROPERTY OTHER (GENERAL BUSINESS) NONE TOTAL EXPENSE DEDUCTION FOR RECOVERY PROPERTY NONE SCHEDULE K - LINE 13A - CHARITABLE CONTRIBUTIONS CASH CONTRIBUTIONS: CASH CONTRIBUTIONS - 50% LIMITATION: CHARITABLE CONTRIBUTIONS 98,175. TOTAL CASH CONTRIBUTIONS - 50% LIMITATION 98,175. FROM TWO TWELVE MANAGEMENT, LLC 5,160. TOTAL CONTRIBUTIONS 103,335. SCHEDULE K - LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY OTHER (GENERAL BUSINESS) 11,334. FROM TWO TWELVE MANAGEMENT, LLC -58. TOTAL DEPRECIATION ADJUSTMENT ON PROPERTY 11,276. SCHEDULE K - LINE 18C - NONDEDUCTIBLE EXPENSES FROM TWO TWELVE MANAGEMENT, LLC 27,762. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 27,762. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 90,792. TOTAL NONDEDUCTIBLE EXPENSES 118,554. STATEMENT 3 6/O(063 1.000 R66297 1608 91 EFTA00806496 NEXT MANAGEMENT, LLC FORM 568, SIDE 6 SUPPORTING SCHEDULES 13-3495607 OTHER CURRENT ASSETS BEGINNING ENDING PREPAID EXPENSES 213,894. 159,432. DEFERRED TAX ASSET- CURRENT 15,000. 17,000. TOTAL OTHER CURRENT ASSETS 228,894. 176,432. OTHER INVESTMENTS BEGINNING ENDING INVESTMENT IN TWO TWELVE -214,609. 83,446. TOTAL OTHER INVESTMENTS -214,609. 83,446. OTHER ASSETS BEGINNING ENDING DEPOSITS 29,606. 43,931. RESTRICTED CASH 40,000. 40,000. DUE FROM AFFILIATES 774,693. 1,313,624. DUE FROM MODELS 1,464,108. 1,607,052. DEFERRED TAX BENEFIT-LONG TERM 53,000. 47,000. TOTAL OTHER ASSETS 2,361,407. 3,051,607. OTHER CURRENT LIABILITIES BEGINNING ENDING ACCRUED EXPENSES 1,304,038. 1,786,832. TOTAL OTHER CURRENT LIABILITIES 1,304,038. 1,786,832. OTHER LIABILITIES BEGINNING ENDING ADVANCES FROM AFFILIATES 21,519. 8,342. DUE TO RELATED PARTY 1,223,293. 1,476,782. DEFERRED RENT-LONG TERM 69,223. 135,009. TOTAL OTHER LIABILITIES 1,314,035. 1,620,133. STATEMENT 4 SX.X083 1.000 R66297 1608 92 EFTA00806497 NEXT MANAGEMENT, LLC 13-3495607 FORM 568, SIDE 6 SUPPORTING SCHEDULES SCHEDULE M-1 - LINE 4B - TRAVEL AND ENTERTAINMENT LIMITATION GROSS TRAVEL AND ENTERTAINMENT EXPENSES 181,584. LESS: TRAVEL AND ENTERTAINMENT INCLUDED ON SCHEDULE K 90,792. NET TRAVEL AND ENTERTAINMENT EXPENSES NOT INCLUDED ON SCHEDULE K 90,792. SCHEDULE M-1 - LINE 4 OTHER - EXPENSES ON BOOKS NOT INCLUDED ON SCH K DEFERRED TAX EXPENSE SHAREHOLDER SALARIES RENT ESCALATION ADJUSTMENT NONDEDUCTIBLE EXPENSES FROM OTHER PSHP ACT/PASS THROUGH ENTITIES FEDERAL/CALIFORNIA DIFFERENCES 4,000. 50,801. 66,152. 27,762. 361,675. TOTAL EXPENSES RECORDED ON BOOKS NOT INCLUDED ON SCHEDULE K 510,390. SCHEDULE M-1 - LINE 6B OTHER INCOME RECORDED ON BOOKS BUT NOT INCLUDED ON SCHEDULE K BOOK TO TAX DIFFERENCE IN INVESTMENT 82,521. TOTAL INCOME RECORDED ON BOOKS BUT NOT INCLUDED ON SCHEDULE K 82,521. SCHEDULE M-1 - LINE 7B OTHER - DEDUCTIONS ON SCH K NOT ON BOOKS AMORTIZATION 184,824. DEPRECIATION 152,866. TOTAL DEDUCTIONS ON SCHEDULE K NOT CHARGED AGAINST BOOK INCOME 337,690. SCHEDULE M-2 - LINE 3 - NET INCOME PER BOOKS NET INCOME PER BOOKS 2,319,987. TOTAL NET INCOME PER BOOKS 2,319,987. SX.X083 1.000 STATEMENT 5 R66297 1608 93 EFTA00806498 NEXT MANAGEMENT, LLC 13-3495607 FORM 568, SIDE 6 SUPPORTING SCHEDULES SCHEDULE M-2 - LINE 6A - CASH DISTRIBUTIONS CASH DISTRIBUTIONS 3,000,000. TOTAL CASH DISTRIBUTIONS 3,000,000. STATEMENT 6 MUNI31A00 R66297 1608 94 EFTA00806499 NEXT MANAGEMENT, LLC 13-3495607 CALIFORNIA PASS-THROUGH ENTITIES SUPPORTING SCHEDULES TWO TWELVE MANAGEMENT, LLC PASS-THROUGH ENTITIES - LINE 13A - CHARITABLE CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 5,160. TOTAL CASH CHARITABLE CONTRIBUTIONS 5,160. TOTAL CHARITABLE CONTRIBUTIONS 5,160. PASS-THROUGH ENTITIES - LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 27,762. TOTAL NONDEDUCTIBLE EXPENSES 27,762. STATEMENT 7 MUNI31A00 R66297 1608 95 EFTA00806500 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE R-2, SUPPORTING SCHEDULES SCHEDULE R-2, LINE 1 MODELING AGENCY SCHEDULE R-2, LINE 2 TWO TWELVE MANAGEMENT LLC - PUBLIC RELATIONS SCHEDULE R-2, LINE 3 NOT APPLICABLE. SCHEDULE R-2, LINE 4 NOT APPLICABLE. SCHEDULE R-2, LINE 8 NOT APPLICABLE. SCHEDULE R-2, LINE 9 NOT APPLICABLE. STATEMENT 8 MUNI31A00 R66297 1608 96 EFTA00806501 027 NEXT MANAGEMENT, LLC CALIFORNIA Reconciliation of Partners' Capital Account 13-3495607 Palms' A. Capital Account INKOmMgdYeas B. Capital Contributed aPartneesShamol Unes%Ataid7Forni565 SetieduleM4 D. Withdrawal Distribution E. Capital Account End of Year 1 777,664. 974,394. 1,260,000. 492,058. 2 573,991. 719,196. 930,000. 363,187. 3 499,929. 626,397. 810,000. 316,326. TOTALS 1,851,584. 2,319,987. 3,000,000. 1,171,571. SY0550 1.000 R66297 1608 97 EFTA00806502 TAXABLE YEAR Member's Share of Income, 2015 Deductions, Credits, etc. K-1 (568) CALIFORNIA SCHEDULE TYB 01-01-2015 TYE 12-31-2015 13-3508513 CLAXON INC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 13-3495607 200506910067 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 A What type of entity is this member?• (1) K Individual (4) E C Corporation (7) K LLP (10) K Exempt Organization (2) K S Corporation (5) K General Partnership (8) K LLC (11) K Disregarded Entity (3) K Estate/Trust (6) K Limited Partnership (9) K IRAIKeoghtSEP B Is this member a foreign member? • K Yes No C Enter members percentage (without regard to special allocations) of: Profit sharing Loss sharing Ownership of capital • D Members share of liabilities: Nonrecourse • $ (i) Before decrease or termination 42.0000 42.0000 (ii) End of year 42.0000 42.0000 42.0000 42.0000 Qualified nonrecourse financing • $ Other • $ E Reportable transaction or tax shelter registration number(s) F (1) Check here if this is a publicly traded partnership as defined in IRC Section 469(k)(2) 96 96 96 6.137.989 621,152_ (2) Check here if this is an investment partnership (R&TC Sections 17955 and 23040.1) a Check here if this is: • (1) K A final Schedule K-1 (568) (2) K An amended Schedule K-1 (568) H Is this member a resident of California) • K Yes ► M No o0 o0 ■ Fe r Minn, Maim get km Pre1101 DAMP. 027 7901154 I Schedule K-1 (568) 2015 Side 1 ■ 5O0577 1.000 R66297 1608 98 EFTA00806503 NEXT MANAGEMENT, LLC Members name ARTNFR N 1 CLMON JNC 13-3495607 Members Identifying number 23-1508513 I Analysis of members capital account: Cheetahs box •(1)0 Tax Basis (2)® GAM' (3)❑ Section 704(b) Book (4)❑Other (explain) (a) (b) (c) 00 (e) Carla account a larginners cd yew Capital Gonad:Ned during yaw Manbeses shwa of Ina 1. Yea 4. and Withdrawals and distributions Capital accounl al cod ol year. line? Form 568 Schedule M-2 combine column Cal ar0Uall COMM (dl 777,664. • • 974,394. •( 1,260,000.)• 492,058. Caution: Refer to Members Instructions for Schedule K-1 568) before entering information from this schedule on you California return. (a) Distributive share items (19 Amounts from federal Schedule K-1 (1065) (c) California adjustments 00 Total amounts using California law. Combine col. 0:0 and col. (c) where applicable (e) California source amounts and credits Income (Loss) 1 Ordinary income (loss) Irom trade or business activities 2 Net income (loss) from rental real estate activities 3 Nat income (loss) from other rental activities 4 Guaranteed payments to members 5 Interest income 6 Dividends 7 Royalties 8 Net short-term capital gain (loss) 9 Net long-term capital gain (loss) 10 a Total gain under IRC Section 1231 (other than due to casualty or theft) b Total loss under IRC Section 1231 (other than due to casualty or theft) 11 a Other portfolio income (loss). Attach schedule b Total other Income. Attach schedule c Total other loss. Attach schedule 1,014,678. 48,095.• 1062773. ► 26457$. • ► 0 0 • ► 7,522. • 7522. ► 1873. • ► • ► • ► • ► • ► • ► • ► • ► • ► I Deductions I 12 Expense deduction for recovery properly (IRC Section 179) 13 a Charitable contributions b Investment interest expense c 1 Total expenditures to which an IRC Section 59(e) election may apply. 2 Type of expenditures 80,301. -80.301. 43,401. 43401. d Deductions related to portfolio income Attach schedule e Other deductions. Attach schedule Side 2 Schedule K-1 (568) 2015 027 soosao tom R66297 1608 7902154 99 • EFTA00806504 NEXT MANAGEMENT, LLC Member's name PARTNER if 1 CLAXON INC 13-3495607 Member's Identifying number 11-3508511 (a) Distributive share items (b) Amounts from federal Schedule K-I 00651 (c) California adjustments 00 Total amounts using California law. Combine col. (b) and cd. (c) (e) California source amounts and credits Tax Exempt Income and Nandeduchble 'Alternative Minimum Tax (AIM Marna Credits Expenses 15 a b e d e f • Total withholding (equals amount on Form 592-B II calendar year LLC). . . . Low-Income housing credt Credits other than line I 5b related to rental real estate activities. Attach schedule . . . . Credits related to other rental activities. Attach schedule Nonconsenting navesident members' tax paid by LLC Other credits - Man required schedules or statements New em • o ment credit • 90. 17 a b c d e f Depreciation adjustment on property placed In service alter 1986 STMT. 2 Adjusted gain or loss Depletion (other than oil 8 gas) . . . Gross Income from oil, gas, and geothermal properties Deductions allocable to oil, gas, and geothermal properties Other alternative minimum tax items. Attach schedule -410. 5,146.0 4736. (7) 1179. 18 a b e Tax-exempt Interest income Other tax-exempt income Nondeductible expenses STMT .2 49,793. 49793. 12 96. Distributions 19 a b Distributions of money (cash and marketable securities) Distributions of property other than money 1,260,000. ® 1260000. Q. c 0 191 5 € 0 20 a b e Investment Income Investment expenses Other Information. See instructions. . 7,522. 7522. 1873. • 50037e 1.000 R66297 1608 027 7903154 Schedule K-1 (568) 2015 Side 3 El 100 EFTA00806505 NEXT MANAGEMENT, LLC 13-3495607 Member's mime Member's Identifying number kARTNER 1 1 CLAXON INC 11-15011511 Other Member Information Table 1 - Member's share of nonbusiness income from intangibles (source of income is dependent on residence or commercial domicile of the member): Interest $ Sec. 1231 Gains/Losses $ Capital Gains/Losses $ Dividends $ Other Royalties $ FOR USE BY MEMBERS ONLY - See Instructions. Table 2 - Member's share of distributive Items. A. Members share of the LLC's business Income. See Instructions. $ B. Members share of nonbusiness income from real and tangible personal property sourced or allocable to California. Capital Gains/Losses $ Sec. 1231 Gains/Losses $ Rents/ Royalties $ Other C. Members distributive share of the LLC's property. payroll. and sales: Factors Total within and outside California Total within California Properly: Beginning $ 1.775.200. 155,397. Property: Ending $ 1.777.974. 173.976. Property: Annual rent expense 314,920. 42.1 91. Payroll 4,776.335. 809.557. Sales 8.838.212. 2.200.281. Side 4 Schedule K-1 (568) 2015 027 monism) R66297 1608 7904154 101 • EFTA00806506 027 NEXT MANAGEMENT, LLC 13-3495607 CALIFORNIA PARTNER'S SCHEDULE OF ACTIVITIES PARTNER 1 1 CLAXON INC ActivityName(sHmdTypeofftwome: A NEXT MANAGEMENT, LLC, PORTFOLIO B NEXT MANAGEMENT, LLC, TRADE OR BUSINESS C TWO TWELVE MANAGEMENT, LLC, GENERAL TRADE/BUSINESS D E Activity A Activity B Activity C Activity D Activity E Activity disposed of during year Qualdiedlow-MomehousIng PuNdytra&Wprimwth0 Pass.thmuilhacWO NO NO NO NO NO NO NO NO NO NO NO YES Schedule K - Line References 1 Ordinary income 2 Rental Real Estate 3 Other Rental 5 Interest income 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income 4 Guaranteed Payments 10 ab Net 1231 G/L 11 be Other Income 13 a Charitable Contributions, . 12 Section 179 13 d Deductions Portfolio Income 13 e Other Deductions 13 b Investment Interest Expense 20 a Investment Income 20 b Investment Expenses . . . 15 a Credit Income Tax Withheld 15 b Low Income House Credit 15 c Credit Rental Real Estate . 15 d Credit Other Rental 15 1 Other Credits 17a Depr. Adj. Prop. 12,31:86 17 b Adjusted Gain or Loss 17 c Depletion 17 d Gross Inc OiliGasteoth. 17 e Deducts Alloc. to OrMas 17 1 Other Tax Preference 13 c Section 59(e) Expense 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded. expense 20 Other Items 9 Longterm Net Capital at . 236,708. 27,870. 1,87.3. 41,234. 2,167. 1,873. 1,185. 9,493. 2,903. S00520 2.000 R66297 1608 102 EFTA00806507 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 1 PARTNER NAME CLAXON INC ITEM I, COLUMN(C) - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11C LESS: DEDUCTIONS FROM SCH. K-1, LINES 12 - 13E 1,070,295. 43,401. TOTAL INCOME PER SCHEDULE K-1 1,026,894. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 38,133. LLC TAX 336. DEFERRED TAX EXPENSE 1,680. SHAREHOLDER SALARIES 21,336. RENT ESCALATION ADJUSTMENT 27,784. NONDEDUCTIBLE EXPENSES 11,660. OTHER FEDERAL/CALIFORNIA DIFFERENCES 151,904. ADD: INCOME RECORDED ON BOOKS, NOT INCLUDED ON K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 34,659. ADD: DEDUCTIONS INCL. ON SCH. K-1, NOT CHARGED AGAINST BOOKS: DEPRECIATION 23,844. AMORTIZATION 77,626. DEPRECIATION 64,204. TOTAL INCOME PER ITEM I, COLUMN(C) 974,394. CAPITAL WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 1,260,000. TOTAL CAPITAL WITHDRAWALS AND DISTRIBUTIONS 1,260,000. LINE 5 - INTEREST FROM PARTNERSHIP 1,873. TOTAL INTEREST 1,873. LINE 13A - CHARITABLE CONTRIBUTIONS MUNI31A00 CONTINUED ON NEXT PAGE STATEMENT 1 R66297 1608 103 EFTA00806508 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 1 PARTNER NAME CLAXON INC LINE 13A - CHARITABLE CONTRIBUTIONS ( CASH CONTRIBUTIONS: SUBJECT TO 50% LIMITATION FROM PASS-THROUGH ENTITIES 41,234. 2,167. TOTAL CONTRIBUTIONS 43,401. LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY AFTER 12/31/86 OTHER (GENERAL BUSINESS) PROPERTIES 1,185. FROM PASS-THROUGH ENTITIES TOTAL DEPRECIATION ADJ. AFTER 12/31/86 1,179. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 2,903. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 2,903. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 9,493. TOTAL NONDEDUCTIBLE EXPENSES 12,396. MUNI31A00 STATEMENT 2 R66297 1608 104 EFTA00806509 TAXABLE YEAR Member's Share of Income, 2015 Deductions, Credits, etc. K-1 (568) CALIFORNIA SCHEDULE TYB 01-01-2015 TYE 12-31-2015 13-3501977 PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 13-3495607 200506910067 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 A What type of entity is this member?• (1) K Individual (4) K C Corporation (7) K LLP (10) K Exempt Organization (2) S Corporation (5) K General Partnership (8) K LLC (11) K Disregarded Entity (3) K Estate/Trust (6) K Limited Partnership (9) K IRAIKeoghtSEP B Is this member a foreign member? • K Yes El No C Enter members percentage (without regard to special allocations) of: Profit sharing Loss sharing Ownership of capital • D Members share of liabilities: Nonrecourse • $ (i) Before decrease or termination 31.0000 31.0000 (ii) End of year 31.0000 31.0000 31.0000 31.0000 Qualified nonrecourse financing • $ Other • $ E Reportable transaction or tax shelter registration number(s) F (1) Check here if this is a publicly traded partnership as defined in IRC Section 469(k)(2) 96 96 96 4.530.420 460.389 (2) Check here if this is an investment partnership (R&TC Sections 17955 and 23040.1) G Check here if this is: • (1) K A final Schedule K-1 (568) (2) K An amended Schedule K-1 (568) H Is this member a resident of California'? • K Yes ► M No o0 o0 ■ Fe r Minn, Maim get km PIM 1131 DAMP. 027 7 9 0 11 5 4 I Schedule K-1 (568) 2015 Side 1 ■ 5O0577 1.000 R66297 1608 105 EFTA00806510 NEXT MANAGEMENT, Members name LLC 13-3495607 Members identifying number ARTNFR # 2 PARTNERSHIP HOLDING CORP. 23-1501977 I Analysis of members capital account: Cheetahs box •(1)0 Tax Basis (2)® GAAP (3)❑ Section 704(b) Book (4)❑Other (explain) Ca) (b) (c) 00 (e) Capital account alb:gime* cd year Capital aantritulad during year Mamba's shwa of Ina 1. Yea 4. and Withdrawals and distributions Capital accatml al end ol year. line 7 Form 568 ScheduleM-2 combine Odurnn MI arOUOII COMM MI 573,991. • • 719,196. •( 930,000.)• 363,187. Caution: Refer to Members Instructions for Schedule K-1 568) before entering information from this schedule on you California return. (a) Distributive share items (19 Amounts from federal Schedule K-1 (1065) (c) California adjustments 00 Total amounts using California law. Combine col. (b) and cat (c) where applicable (e) California source amounts and credits Income (Loss) 1 Ordinary income (loss) from trade or business activities 2 Net income (loss) from rental real estate activities 3 Nat income (loss) from other rental activities 4 Guaranteed payments to members 5 Interest income 6 Dividends 7 Royalties 8 Net short-term capital gain (loss) 9 Net long-term capital gain (loss) 10 a Total gain under IRC Section 1231 (other than due to casualty or theft) b Total loss under IRC Section 1231 (other than due to casualty or theft) 11 a Other portfolio income (loss). Attach schedule, b Total other Income. Attach schedule c Total other loss. Attach schedule 748,931. 35,496. • 784427. ► 195284. • ► 0 0 • ► 5,552. • 5552. ► 1382. • ► • ► • ► • ► • ► • ► • ► • ► • ► I Deductions I 12 Expense deduction for recovery property (IRC Section 179) 13 a Charitable contributions b Investment interest expense c 1 Total expenditures to which an IRC Section 59(e) election may apply. 2 Type of expenditures 59,271. -59,271. 32,034. -1. 32033. d Deductions related to portfolio income Attach schedule e Other deductions. Attach schedule Side 2 Schedule K-1 (568) 2015 027 soma tom R66297 1608 7902154 106 • EFTA00806511 NEXT MANAGEMENT, LLC Member's name ARTNER 8 2 PARTNERSHIP HOLDING CORP. 13-3495607 Member's Identifying number 11-1,501977 (a) Distributive share Items (b) Amounts from federal Schedule K-I 00651 (c) California adjustments 00 Total amounts using California law. Combine col. (b) and cd. (c) (e) California source amounts and credits Tax Exempt Income and Nandeduchble 'Alternative Minimum Tax (AIM Marna Credits Expenses 15 a b e d e f • Total withholding (equals amount on Form 592-B II calendar year LLC). . . . Low-Income housing credt Credits other than line I 5b related to rental real estate activities. Attach schedule . . . . Credits related to other rental activities. Attach schedule Nonconsenting navesident members' tax paid by LLC Other credits - Attach required schedules or statements New em • o ment credit • 90. 17 a b c d e f Depreciation adjustment on property placed In service alter 1986 STMT. 2 Adjusted gain or loss Depletion (other than oil 8 gas) . . . Gross Income from oil, gas, and geothermal properties Deductions allocable to oil, gas. and geothermal properties Other alternative minimum tax items. Attach schedule —302. 3,797.C) 3495.0 870. 18 a b e Tax-exempt Interest income Other tax-exempt income Nondeductible expenses. STMT. 2 36,751. 36751. 9149. Distributions 19 a b Distributions of money (cash and marketable securities) Distributions of property other than money 930,000. ID 930000. ® c 0 191 5 € 0 o -E 20 a b e Investment Income Investment expenses Other Information. See instructions. . 5,552. 5552. 1382. • 500370 1.000 R66297 1608 027 7903154 Schedule K-1 (568) 2015 Side 3 El 107 EFTA00806512 NEXT MANAGEMENT, LLC 13-3495607 Members name Member's Identifying number [PARTNER 1 2 PARTNERSHIP HOLDING CORP. 11-1501977 Other Member Information Table 1 - Member's share of nonbusiness income from intangibles (source of income Is dependent on residence or commercial domicile of the member): Interest $ P Sec. 1231 Gains/Losses $ Capital GainsiLosses $ Dividends $ Other Royalties $ FOR USE BY MEMBERS ONLY • See Instructions. Table 2 - Member's share of distributive items. A. Members share of the LLC's business income. See instructions. $ B. Members share of nonbusiness Income from real and tangible personal property sourced or allocable to California. Capital Gainstosses $ Sec. 1231 Gainstosses $ Rents(Royalties $ Other C. Members distributive share of the LLC's property, payroll, and sales: Factors Total within and outside California Total within California Properly: Beginning $ 1.310.267. 114,698. Properly: Ending $ 1.312.314. 128.410. Properly: Annual rent expense $ 232,441. 31.141. Payroll 3,525.391. 597.520. Sales 6.523.442. 3.624.017. • Side 4 Schedule K-1 (568) 2015 027 5O0579 1.000 R66297 1608 7904154 108 • EFTA00806513 027 NEXT MANAGEMENT, LLC 13-3495607 CALIFORNIA PARTNER'S SCHEDULE OF ACTIVITIES PARTNER # 2 PARTNERSHIP HOLDING CORP ActivityName(sHmdTyNHOIncome: A NEXT MANAGEMENT, LLC, PORTFOLIO B NEXT MANAGEMENT, LLC, TRADE OR BUSINESS C TWO TWELVE MANAGEMENT, LLC, GENERAL TRADE/BUSINESS D E Activity A Activity B Activity C Activity D Activity E Activity disposed of during year Oualifiedlow-ificomettaising PuNdytra&Wprimwth0 Pass - throuoh activity NO NO NO NO NO NO NO NO NO NO NO YES Schedule K - Line References 1 Ordinary income 2 Rental Real Estate 3 Other Rental 5 Interest Income 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income 4 Guaranteed Payments 10 ab Net 1231 G/L 11 be Other Income 13 a Charitable Contributions, . 12 Section 179 13 d Deductions Portfolio Income 13 e Other Deductions 13 b Investment Interest Expense 20 a Investment Income 20 b Investment Expenses . . . 15 a Credit Income Tax Withheld 15 b Low Income House Credit 15 c Credit Rental Real Estate . 15 d Credit Other Rental 15 I Other Credits 17 a Depr. Adj. Prop. 12,31:86 17 b Adjusted Gain or Loss 17 c Depletion 17 d Gross Inc OiliGasteoth. 17 e Deducts Alloc. to Oil*tas 17 I Other Tax Preference 13 c Section 59(e) Expense 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded. expense 20 Other Items 9 Lono.term Net Capital at . 174,713. 20,571. 1,382. 30,434. 1,599. 1,382. 875. 7,007. 2,142. 60062e 2.000 R66297 1608 109 EFTA00806514 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 2 PARTNER NAME PARTNERSHIP HOLDING CORP. ITEM I, COLUMN(C) - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11C 789,979. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12 - 13E 32,033. TOTAL INCOME PER SCHEDULE K-1 757,946. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT LLC TAX DEFERRED TAX EXPENSE SHAREHOLDER SALARIES RENT ESCALATION ADJUSTMENT NONDEDUCTIBLE EXPENSES OTHER FEDERAL/CALIFORNIA DIFFERENCES 28,145. 248. 1,240. 15,749. 20,507. 8,606. 112,120. ADD: INCOME RECORDED ON BOOKS, NOT INCLUDED ON K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 25,581. ADD: DEDUCTIONS INCL. ON SCH. K-1, NOT CHARGED AGAINST BOOKS: DEPRECIATION 17,600. AMORTIZATION 57,296. DEPRECIATION 47,388. TOTAL INCOME PER ITEM I, COLUMN(C) 719,196. CAPITAL WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 930,000. TOTAL CAPITAL WITHDRAWALS AND DISTRIBUTIONS 930,000. LINE 5 - INTEREST FROM PARTNERSHIP 1,382. TOTAL INTEREST 1,382. LINE 13A - CHARITABLE CONTRIBUTIONS MUNI31A00 CONTINUED ON NEXT PAGE STATEMENT 1 R66297 1608 110 EFTA00806515 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 2 PARTNER NAME PARTNERSHIP HOLDING CORP. LINE 13A - CHARITABLE CONTRIBUTIONS (CONT'D) CASH CONTRIBUTIONS: SUBJECT TO 50% LIMITATION FROM PASS-THROUGH ENTITIES 30,434. 1,599. TOTAL CONTRIBUTIONS 32,033. LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY AFTER 12/31/86 OTHER (GENERAL BUSINESS) PROPERTIES 875. FROM PASS-THROUGH ENTITIES TOTAL DEPRECIATION ADJ. AFTER 12/31/86 870. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 2,142. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 2,142. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 7,007. TOTAL NONDEDUCTIBLE EXPENSES 9,149. MUNI31A00 STATEMENT 2 R66297 1608 111 EFTA00806516 TAXABLE YEAR Member's Share of Income, 2015 Deductions, Credits, etc. K-1 (568) CALIFORNIA SCHEDULE TYB 01-01-2015 TYE 12-31-2015 13-3682060 THE WILCOR GROUP, INC. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 13-3495607 200506910067 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 A What type of entity is this member?• (1) K Individual (4) K C Corporation (7) K LLP (10) K Exempt Organization (2) S Corporation (5) K General Partnership (8) K LLC (11) K Disregarded Entity (3) K Estate/Trust (6) K Limited Partnership (9) K IRAIKeoghtSEP B Is this member a foreign member? • K Yes El No C Enter members percentage (without regard to special allocations) of: Profit sharing Loss sharing Ownership of capital • D Members share of liabilities: Nonrecourse • $ (i) Before decrease or termination 27.0000 27.0000 (ii) End of year 27.0000 27.0000 27.0000 27.0000 Qualified nonrecourse financing • $ Other • $ E Reportable transaction or tax shelter registration number(s) F (1) Check here if this is a publicly traded partnership as defined in IRC Section 469(k)(2) 96 96 96 3,945,850 400.983 (2) Check here if this is an investment partnership (R&TC Sections 17955 and 23040.1) G Check here if this is: • (1) K A final Schedule K-1 (568) (2) K An amended Schedule K-1 (568) H Is this member a resident of California'? • K Yes ► M No o0 o0 ■ Fe r Minn, Maim get km PIM 1131 DAMP. 027 7 9 0 11 5 4 I Schedule K-1 (568) 2015 Side 1 ■ 5O0577 1.000 R66297 1608 112 EFTA00806517 NEXT MANAGEMENT, Members name LLC 13-3495607 Members identifying number ARTNFR # 3 THE WTLCOR GROUP. INC. 23-3682060 I Analysis of members capital account: Cheetahs box •(1)0 Tax Basis pa GAAP (3)❑ Section 704(b) Book (4)❑Other (explain) (a) (b) (c) 08 (e) Capital account at begin iv cd year Capital aanaitulad during year Mernbeses shwa of Ina 3. Yea 4. and Withdrawals and distributions Capital accounl al cod ol year. line 7 Form 568 ScheduleM-2 combine column Cal arOUall tOkann CM 499,929. • • 626,397. •( 810,000.)• 316,326. Caution: Refer to Members Instructions for Schedule K-1 568) before entering information from this schedule on you California return. (a) Distributive share items 114 Amounts from federal Schedule K-1 (1065) (o) California adjustments (4) Total amounts using California law. Combine col. (b) and ca (c) where applicable (e) California source amounts and credits Income (Loss) 1 Ordinary income (loss) from trade or business activities 2 Net income (loss) from rental real estate activities 3 Nat income (loss) from other rental activities 4 Guaranteed payments to members 5 Interest income 6 Dividends 7 Royalties 8 Net short-term capital gain (loss) 9 Net long-term capital gain (loss) 10 a Total gain under IRC Section 1231 (other than due to casualty or theft) b Total loss under IRC Section 1231 (other than due to casualty or theft) 11 a Other portfolio income (loss). Attach schedule - b Total other Income. Attach schedule c Total other loss. Attach schedule 652,293. 30,918.• 683211. ► 170086. • ► 0 0 • ► 4,836. • 4836. ► 1204. • ► • ► • ► • ► • ► • ► • ► • ► • ► I Deductions I 12 Expense deduction for recovery property (IRC Section 179) 13 a Charitable contributions b Investment interest expense c 1 Total expenditures to which an IRC Section 59(e) election may apply. 2 Type of expenditures 51,622. -51.622. 27,900. 1. 27901. d Deductions related to portfolio income Attach schedule e Other deductions. Attach schedule Side 2 Schedule K-1 (568) 2015 027 soosso tow R66297 1608 7902154 113 • EFTA00806518 NEXT MANAGEMENT, LLC Member's name PARTNER if 3 THE WILCOR GROUP. INC. 13-3495607 Member's Identifying number 11-1882060 (a) Distributive share Items (b) Amounts from federal Schedule K-I (10651 (0) California adjustments 00 Total amounts using California law. Combine col. (b) and cd. (c) (e) California source amounts and credits Tax Exempt Income and Nandeduchble 'Alternative Minimum Tax (AIM Marna Credits Expenses 15 a b e d e f • Total withholding (equals amount on Form 592-B II calendar year LLC). . . . Low-Income housing credt Credits other than line 15b related to rental real estate activities. Attach schedule . . . . Credits related to other rental activities. Attach schedule Nonconsenting navesident members' tax paid by LLC Other credits - Attach required schedules or statements New em • o ment credit • la 17 a b c d e f Depreciation adjustment on property placed In service alter 1986 SIMI' . 2 Adjusted gain or loss Depletion (other than oil 8 gas) . . . Gross Income from oil, gas, and geothermal properties Deductions allocable to oil, gas, and geothermal properties Other alternative minimum tax items. Attach schedule —264. 3,309.0 3045.0 758. 18 a b e Tax-exempt Interest income Other tax-exempt income Nondeductible expenses. STMT. 2 32,010. 32010. 7969. Distributions 19 a b Distributions of money (cash and marketable securities) Diminutions of property other than money $10,000. ® $10000. ® c O lil a 5 € 0 o "a' 20 a b e Investment Income Investment expenses Other Information. See instructions. . 4,836. 4836. 1204. • SOMM 1.000 R66297 1608 027 7903154 Schedule K-1 (568) 2015 Side 3 El 114 EFTA00806519 NEXT MANAGEMENT, LLC 13-3495607 Member's mime Member's Identifying number 'PARTNER 1 3 THE WILCOR GROUP. INC. 11-1682060 Other Member Information Table 1 - Member's share of nonbusiness income from intangibles (source of income is dependent on residence or commercial domicile of the member): Interesi $ Sec. 1231 Gains/Losses $ Capital Gains/Losses $ Dividends $ Other Royalties $ FOR USE BY MEMBERS ONLY - See instructions. Table 2 - Member's share of distributive items. A. Members share of the LLC's business income. See instructions. $ B. Members share of nonbusiness income from real and tangible personal property sourced or allocable to California. Capital Gains/Losses $ Sec. 1231 Gains/Losses $ Rents/Royalties $ Other C. Members distributive share of the LLC's property. payroll. and sales: Factors Total within and outside California Properly: Beginning $ 1.141.200. Property: Ending $ 1.142.983. Property: Annual rent expense 202,449. Payroll 3.070.501. Sales 5.681.707. Total within California 99.898. 111.842. 27.123. 520. 429. r 1.414.467. Side 4 Schedule K-1 (568) 2015 027 =wet= R66297 1608 7904154 115 • EFTA00806520 027 NEXT MANAGEMENT, LLC 13-3495607 CALIFORNIA PARTNER'S SCHEDULE OF ACTIVITIES PARTNER # 3 THE WILCOR GROUP, INC ActivityName(sHmdTyNHOIncome: A NEXT MANAGEMENT, LLC, PORTFOLIO B NEXT MANAGEMENT, LLC, TRADE OR BUSINESS C TWO TWELVE MANAGEMENT, LLC, GENERAL TRADE/BUSINESS D E Activity A Activity B Activity C Activity D Activity E Activity disposed of during year Qualifiediow-incomehousing PuNdytra&Wprimwth0 Pass - throuoh activity NO NO NO NO NO NO NO NO NO NO NO YES Schedule K - Line References 1 Ordinary income 2 Rental Real Estate 3 Other Rental 5 Interest Income 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income 4 Guaranteed Payments 10 ab Net 1231 G/L 11 be Other Income 13 a Charitable Contributions, . 12 Section 179 13 d Deductions Portfolio Income 13 e Other Deductions 13 b Investment Interest Expense 20 a Investment Income 20 b Investment Expenses . . . 15 a Credit Income Tax Withheld 15 b Low Income House Credit 15 c Credit Rental Real Estate . 15 d Credit Other Rental 15 1 Other Credits 17 a Depr. Adj. Prop. 12,31:86 17 b Adjusted Gain or Loss 17 c Depletion 17 d Gross Inc OiliGasteoth. 17 e Deducts Alloc. to Oil*tas 17 1 Other Tax Preference 13 c Section 59(e) Expense 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded. expense 20 Other Items 9 Lono.term Net Capital at . 152,170. 17,916. 1,204. 26,507. 1,394. 1,204. 762. 6,103. 1,866. 60062e 2.000 R66297 1608 116 EFTA00806521 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 3 PARTNER NAME THE WILCOR GROUP, INC. ITEM I, COLUMN(C) - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11C 688,047. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12 - 13E 27,901. TOTAL INCOME PER SCHEDULE K-1 660,146. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT LLC TAX DEFERRED TAX EXPENSE SHAREHOLDER SALARIES RENT ESCALATION ADJUSTMENT NONDEDUCTIBLE EXPENSES OTHER FEDERAL/CALIFORNIA DIFFERENCES 24,514. 216. 1,080. 13,716. 17,861. 7,496. 97,651. ADD: INCOME RECORDED ON BOOKS, NOT INCLUDED ON K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 22,281. ADD: DEDUCTIONS INCL. ON SCH. K-1, NOT CHARGED AGAINST BOOKS: DEPRECIATION 15,328. AMORTIZATION 49,902. DEPRECIATION 41,274. TOTAL INCOME PER ITEM I, COLUMN(C) 626,397. CAPITAL WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 810,000. TOTAL CAPITAL WITHDRAWALS AND DISTRIBUTIONS 810,000. LINE 5 - INTEREST FROM PARTNERSHIP 1,204. TOTAL INTEREST 1,204. LINE 13A - CHARITABLE CONTRIBUTIONS MUNI31A00 CONTINUED ON NEXT PAGE STATEMENT 1 R66297 1608 117 EFTA00806522 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 3 PARTNER NAME THE WILCOR GROUP, INC. LINE 13A - CHARITABLE CONTRIBUTIONS (CONT'D) CASH CONTRIBUTIONS: SUBJECT TO 50% LIMITATION FROM PASS-THROUGH ENTITIES 26,507. 1,394. TOTAL CONTRIBUTIONS 27,901. LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY AFTER 12/31/86 OTHER (GENERAL BUSINESS) PROPERTIES 762. FROM PASS-THROUGH ENTITIES TOTAL DEPRECIATION ADJ. AFTER 12/31/86 758. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 1,866. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 1,866. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 6,103. TOTAL NONDEDUCTIBLE EXPENSES 7,969. MUNI31A00 STATEMENT 2 R66297 1608 118 EFTA00806523 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form F•1065 2015 Florida Partnership Information Return for the year ended December 31, 2015 The original return should be signed (use full name) and dated on page 1 by an authorized member. The signed return should be filed on or before October 3, 2016 with the following: Florida Department of Revenue 5050 W. Tennessee Street Tallahassee, Florida 32399.0135 To document the timely filing of your tax return(s), we suggest that you obtain and retain proof of mailing. Proof of mailing can be accomplished by sending the tax retum(s) by registered or certified mail (metered by the U.S. Postal Service) or through the use of an IRS approved delivery method provided by an IRS designated private delivery service. EFTA00806524 Florida Partnership Information Return THOM F-1065 R. 01/16 beginning For the taxable year 01/01 , 2015 and ending Rule 12C-1.051 Maki Administrapilve Code Elleelive 01.'16 12/31 , 2015 NEXT MANAGEMENT, LLC Name of Pannerstip 15 WATTS STREET 6TH FLOOR Street Address NEW YORK City NY 10013 Stale ZIP 13-3495607 Federal Employer Identification Number (FEIN) 812990 Principal Business Activity Code Part I. Florida Adjustment to Partnership Income A. Additions to lederal income: 1. Federal tax-exempt interest Total interest excluded from federal ordinary income Lass associated expenses not deductible in computing federal ordinary income ( ) Net Interest 2. State Income taxes deducted in computing federal ordinary income 176,961. 3. Other additions SEE STATEMENT 1 107,792. Total A. 284,753. B. Subtractions from federal income SEE STATEMENT 1 B. 66.477. C. Subtotal (Line A less Line Et) C. 218,276. D. Net adjustment from other partnerships or joint ventures D. E. Partnership income adjustment 1. Increase (total of Lines C and D) Et 218, 276. 2. Decrease (total of Lines C and D) 2.1 ) Part IL Distribution of PadmushWIncomeAMushnent Partners name and address (Include FEIN) Note: if there is no adjustment on Line E, show partnees percentage of profits in Column (b) and leave Columns (a) and (c) blank. (a) Amount shown on Line E, Part I. above (b) Partners percentage of profits (c) Column (a) times Column (b) - paints share of Line E. Enter heat and on Florida Form F-1123. Schedule I. Line 19 le decrease. Schedule II. UM it A. 8. SEE STATEMENT 1 c Under penalties of penury. I declare dull haw exarroned this return. eictoring accompanyng schedules and stmernenls. and to the best al my knowledge and b it is true, correct. and complete. Declaration a prepare( Maw than lawayen s based an a Mormaticn ol Mach paperer has any knowledge. Sign Here Signature of partner or member (Must be an original signature.) Date Paid Preparer Only Preparers SI• nature Date Check d sett- employed Pr s iderblioseon Watt. P Firm% name (or yours' BERDON LLP FEIN ► f 13-0485070 If self-employed) 360 MADISON AVE aid address NEW YORK NY ZIP Is. 10017 901114 2.000 Mail To: Florida Department of Revenue. 5050 W. Tennessee St.. Tallahassee FL 32399-0135 R66297 1 608 EFTA00806525 NEXT MANAGEMENT LLC I I II 13-3495607 THOM F-1065 R. 01/16 Page 2 NOTE: Please read instructions (Florida Form F-1065N) before completing the schedules below. Part M. Apportionment Information III-A For use by partnerships doing business both within and without Florida (a) Within Florida (b) Total Everywhere 1. Average value of property per Schedule III-C (Line 8) 1.272,372. 10,228.449. 2. Salaries, wages, commissions. and other compensation paid or accrued in connection with trade or business for the period covered by this return 988,189. 11,372,227. 3. Sales 2.403,868. 21,043.361. III-B. For use by partnerships providing transportation services within and without Florida (a) Within Florida (b) Total Everywhere 1. Transportation services revenue miles (see instructions) III-C. For use in computing average value of property Within Florida Total Everywhere a. Beginning a Yew b. End of Year c. Beginning of Yew d. End of Year 1. Inventories of raw material, work in process, finished goods 2. Buildings and other depreciable assets (at original cost) 395,315. 327,985.2,051,722. 1,747,434. 3. Land owned (at original cost) 4. Other tangible assets (at original cost) and intangble assets (financial organizations only). Attach schedule STMT 2 117,475. 146,432.2,174,945.2,485,837. 5. Total (Lines 1 through 4). 512,790. 474,417. 4,226,667. 4,233,271. 6. Average value of property in Florida (Within Florida). add Line 5, Columns (a) and (b) and divide by 2. For average value of properly everywhere (Total Everywhere), add Line 5, Columns (c) and (d) and divide by 2. 493,604. 4,229,969. 7. Rented property - (8 times net annual rem) 778,768. 5.998,480. 8. Total (Lines 6 and 7). Enter on Part III-A, Line 1. Columns (a) and (b) 1,272,372. 10,228,449. Average Florida Average Everywhere Part IV. Apportionment of Partners' Share Partner (Name and Address) Percent of Interest In Partnership Property Data Payroll Data Sales Data Within Florida Everywhere Within Florida Everywhere Within Florida Everywhere A. B. SEE STATEMENT 3 C. NOTE: Transfer data to Schedule Ill - A, Florida Form F-1120. 5O1115 2000 R66297 1608 120 EFTA00806526 NEXT MANAGEMENT, LLC 13-3495607 FLORIDA FORM F-1065 SUPPORTING STATEMENTS OTHER ADDITIONS BONUS DEPRECIATION 107,792. TOTAL OTHER ADDITIONS 107,792. OTHER SUBTRACTIONS BONUS DEPRECIATION 66,477. TOTAL OTHER SUBTRACTIONS 66,477. FLORIDA F-1065 PART II DISTRIBUTION OF PARTNERSHIP INCOME ADJUSTMENT AMOUNT ON PERCENT LINE E OF NAME AND ADDRESS PART I PROFIT PARTNERS' SHARE OF LINE E CLAXON INC 218,276. 42.000000 91,676. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 13-3508513 PARTNERSHIP HOLDING CORP. 218,276. 31.000000 67,665. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 13-3501977 THE WILCOR GROUP, INC. 218,276. 27.000000 58,935. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 13-3682060 STATEMENT 1 MUNI31.000 R66297 1608 121 EFTA00806527 NEXT MANAGEMENT, LLC FLORIDA FORM F-1065 SUPPORTING STATEMENTS OTHER TANGIBLE AND INTANGIBLE ASSETS WITHIN FLORIDA TOTAL EVERYWHERE DESCRIPTION BEG. OF YEAR END OF YEAR BEG. OF YEAR END OF YEAR OTHER TANGIBLE ASSETS TOTALS 117,475. 146,432. 117,475. 146,432. 2,174,945. 2,485,837. 2,174,945. 2,485,837. MUNI31A00 STATEMENT 2 R66297 1608 122 EFTA00806528 NEXT MANAGEMENT, LLC 21-3055607 FLORIDA FORM F-2065 SUPPORTING STATEMENTS PART IV APPORTIONMENT '; SHARE PERCENT OF PROPERTY DATA PAYROLL DATA SALES DATA TRANSPORTATION DATA PRTR NAME AND ADDRESS INTEREST FLORIDA EVERYWHERE FLORIDA EVERYWHERE FLORIDA EVE RYWNERE FLORIDA EVERYWHERE 1 CLAXON INC 42.000000 534,196. 4,295,949. 415,019. 4,776,135. 1,009,625. 8,838,212. C/O NEXT MANAGER= LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 2 PARTNERSHIP HOLDING CORP. 31.000000 194,436. 3,170,819. 306,319. 3,525,191. 745,199. 6,523,442. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 3 THE NILCOR GROUP, INC. 27.000000 143,540. 2,761,601. 266,011. 3,070,501. 649,044. 5,681,707. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 866297 1608 7:15-6.39 STATEMENT 3 123 EFTA00806529 Florida K-1 Equivalent Tax Year beginning _01/01/2015 and ending 12/31/2015 Partner's Identification number 13-3508513 Partnership's Identification number 13- 3495607 Partner's name, address, and Zip code Partnership's name, address, and Zip code CLAXON INC NEXT MANAGEMENT LLC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 15 WATTS STREET 6TH FLOOR 6TH FLOOR NEW YORK, NY 10013 NEW YORK, NY 10013 Distribution of Partnership Income Adjustment Partnership income adjustment Partner's percentage of profits Partner's share of adjustments 218,276. 42.000000 91,676. Partner's Share of Apportionment Factors Within Florida Everywhere Property Data 534,396. 4,295,949. Payroll Data 415,039. 4,776,335. Sales Data 1,009.625 . 8.838,212 . Transportation 601113LUM R66297 1608 124 EFTA00806530 Florida K-1 Equivalent Tax Year beginning 01/01/2015 and ending 12/31/2015 Partner's Identification number 13-3501977 Partnership's Identification number 13-3495607 Partner's name, address, and Zip code Partnership's name, address, and Zip code PARTNERSHIP HOLDING CORP. NEXT MANAGEMENT LLC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 15 WATTS STREET 6TH FLOOR 6TH FLOOR NEW YORK, NY 10013 NEW YORK, NY 10013 Distribution of Partnership Income Adjustment Partnership income adjustment Partner's percentage of profits Partner's share ot adjustments Partner's Share of Apportionment Factors 218,276. 31.000000 67,665. Within Florida Everywhere Property Data 394.436. 3.170.819. Payroll Data 306.339. 3.525,391. Sales Data 745,199. 6,523,442. Transportation 601113LUM R66297 1608 125 EFTA00806531 Florida K-1 Equivalent Tax Year beginning 01/01/2015 and ending 12/31/2015 Partner's Identification number 13-3682060 Partnership's Identification number 13-3495607 Partner's name, address, and Zip code Partnership's name, address, and Zip code THE WILCOR GROUP, INC. NEXT MANAGEMENT LLC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 15 WATTS STREET 6TH FLOOR 6TH FLOOR NEW YORK, NY 10013 NEW YORK, NY 10013 Distribution of Partnership Income Adjustment Partnership income adjustment Partner's percentage of profits Partner's share ot adjustments Partner's Share of Apportionment Factors 218,276. 27.000000 58,935. Within Florida Everywhere Property Data 343,540. 2.761.681. Payroll Data 266,811 . 3,070,501. Sales Data 649,044. 5.681,707. Transportation 601113LUM R66297 1608 126 EFTA00806532 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form TR-579-PT 2015 New York State E-File Signature Authorization for IT-204 for the year ended December 31. 2015 The original form should be signed (use full name) and dated by an authorized partner. The signed form should be returned on or before September 15, 2016 via: Email (preferred method) efilpdailherdonllp com Fax 212.699.8832 Mail Berdon LLP Attn: Tax Control 360 Madison Avenue, 6th Floor New York, NY 10017 We must receive your signed Form TR-579-PT before we can electronically transmit your return. DO NOT separately file your tax return with the state. Doing so will delay the processing of your return. The state will notify us when your return is accepted. Your return is not considered filed until the state confirms their acceptance. which may occur after the due date of your return. EFTA00806533 rj rNEW YORK STATE 2015 - Partnership name 5'0502 I POO New York State E-File Signature Authorization for Tax Year 2015 For Forms IT-204 and IT-204-LL Electronic return originator (ERO): do not mail this form to the Tax Department. Keep it for your records. NEXT MANAGEMENT, LLC Return type (mark an X to indicate which form you are e-filing): Purpose Form TR-579-PT must be completed to authorize an ERO to e-file Form 1T-204, Partnership Return, or Form IT-204-LL, Partnership, Limited Liability Company, and Limited Liability Partnership Filing Fee Payment Form. For the purposes of this form, aN three forms of business entities will be referred to hereinafter as a partnership. General Instructions Part A must be completed by an authorized member or general partner before the ERO transmits the electronically filed Form IT-204 or IT-204-LL. EROs must complete Part B prior to transmitting an electronically filed Form IT-204 or IT-204-LL. L_. IT-204 IT-204-LL Both the paid preparer and the ERO are required to sign Part B. However, if an individual performs as both the paid preparer and the ERO, he or she is only required to sign as the paid preparer. It is not necessary to include the ERO signature in this case. Note that an alternative signature can be used as described in Publication 58, Information for Income Tax Return Preparers. Go to our website at www.tax.ny.gov to view this document. Do not mail Form TR-579-PT to the Tax Department. EROs must keepthis form for three years and present it to the Tax Department upon request. This form is not required for electronically filed Form IT-370-PF, Application for Automatic Extension of Time to File for Partnerships and Fiduciaries. Financial institution information for Form IT-204-LL filers (must be present if electronic payment is authorized) 1 Amount owed on return 2 Financial institution routing number 3 Financial institution account number 1 2 3 Part A - Declaration of authorized member or general partner and authorizations for Forms IT-204 or IT-204-LL Under penalty of perjury, I declare that I have examined the information on this 2015 New York State electronic partnership return, including any accompanying schedules, attachments, and statements, and certify that this electronic return is true, correct, and complete. The ERO has my consent to send this 2015 New York State electronic partnership return to New York State through the Internal Revenue Service (IRS). I understand that by executing this Form TR-579-PT, I am authorizing the ERO to sign and file this return on behalf of the partnership and agree that the ERO's submission of the partnership's return to the IRS, together with this authorization, will serve as the electronic signature for the return and any authorized payment transaction. If I am paying my New York State partnership fees due by electronic funds withdrawal, I authorize the New York State Tax Department and its designated financial agents to initiate an electronic funds withdrawal from the financial institution account indicated on this 2015 electronic return, and I authorize the financial institution to withdraw the amount from the account. As New York does not support International ACH Transactions (IAT), I attest the source for these funds is within the United States. I understand and agree that I may revoke this authorization for payment only by contacting the Tax Department no later than five (5) business days prior to the payment date. Signature of authorized member or general partner: Date' Print your name and title' FAITH KATES TITLE: PRES OF MEMBER-MGR Part B - Declaration of (ERO) and paid preparer Under penalty of perjury, I declare that the information contained in this 2015 New York State electronic partnership return is the information furnished to me by the partnership. If the partnership furnished me a completed paper 2015 New York State partnership return signed by a paid preparer, I declare that the information contained in the partnership's 2015 New York State electronic partnership tax return is identical to that contained in the paper return. If I am the paid preparer, under penally of perjury I declare that I have examined this 2015 New York State electronic partnership tax return, and, to the best of my knowledge and belief, the return is true, correct, and complete. I have based this declaration on all information avalable to me. ERO's signature: Date' Print name- BERDON LLP Paid preparers signature' Date' Print name- MARC YATKOWSKY TR-579-PT (12/15) R66297 1608 127 1062 EFTA00806534 Legal name Department of Taxation and Financm 503511 1.000 Partnership Return IT-204 For calendar year 2015 See the instructions, Form IT-2044. or tax year beginning NEXT MANAGEMENT LLC 1st and ending F Employer identification number (EIM 133495607 NYS principal business activity Trade name of business if deferent from legal name above MODEL AGENCY NAICS business code number mamma Pub 910) Address (number and sneer or rural route) 15 WATTS STREET State NY Section 1 - Partnership information City. village. or post office NEW YORK 812990 2IP code 10013 Country UNITED STATES Principal product or service MODELING Special conditions for filing your I I I 2015 tax return (see mstr) . . . I Date business started 01041989 A Mark an X in the box that applies to your entity Regular partnership 0 Limited liability partnership (LLP) 0 Portfolio investment partnership (see instr.) 0 Other Limited liability company (LLC - including limited liability investment company and a limited liability trust compa B 1) Did the partnership have any income, gain, loss. Of deduction derived from NY sources during the tax year, BI Yes I7LJ No 0 2) If No, enter the number of resident partners C Mark applicable box(es) 0 Change of address 0 Initial return 0 Amended return D 1) Is this return the result of federal audit changes? If Yes:2) Enter date of final federal determination 3) Do you concede the federal audit changes? E Did you file a NYS partnership return for: 11 2013? El Yes Fn. No 71 21 2014? If No, state reason: I F Number of partners 1) Article 22 2) Article 9-A 3) Other 4) Total Does the partnership currently have tax accounts with NYS for the folowing taxes? G H J K L M N 0 P _x. 1) Sates and use tax Yes 2) Withholding tax Yes IXJ No LJ (flYes. enter ID number) . . 02 B2 K Final return (s explane 131 Yes • No Nou. . . . (1/Yes. enter ID number) 01 D2 D3 Yes E2 Yes Fl F2 F3 F4 3 3- 133495607 1334 ct5607 Did the partnership have an interest in real property located in NYS during the last three years? H Yes Has there been a transfer or acquisition of a controlling interest in this entity during the last three years? I Yes Did the partnership engage in a like-kind transaction under IRC 1031 during the tax year? J Yes Did the partnership sell property during the tax year that had a deterred gain from a previous IRC 1031 or IRC 1033 transaclion, K Yes Was there a distribution of property or a transfer of a partnership interest during the tax year? L Yes Did the partnership make an election under IRC 754? pA Yes Is this partnership under audit by the IRS or has it been audited in a prior year? N Yes Is this partnership required to file Form DTF-686 or DTF-686-ATT for this filing period, to report a reportable transaction, New York reportable transaction, listed transaction or registered tax shelter?. . If Yes, complete and submit Form(s) DTF-686, DTF-686-ATT, and any applicable federal forms. Did the partnership make purchases subject to sales and compensating use tax for which NYS tax was not paid? (see Instr ) p Yes Did the partnership have a financial account located in a foreign counhy? (see Instructions) p Yes No No No No No No No 0 Yss 0 No 5] No No Third party designee? (see instr.) Yes ric Non Print designee's name MARC YATKOWSKY Designees phone number 212-832-0400 Emas: • Paid preparer must complete (see Instr.) • Date Preparers signature Preparers NYTPAIN Firms name (or yours. d selt-errployed) BERDON LLP Preparers PUN or SSN P00002675 Address 360 MADISON AVE NEW YORK, NY 10017 E-mail: Employer Identification number 130485070 I exrifcifire l 03 204001151062 • Sign here • Personal identikazion number (PIN) Signature 01 general partner Date Email: Daytime phone number 2129255100 Mail your return to: STATE PROCESSING CENTER. PO BOX 4149. BINGHAMTON NY 13902-4149. R66297 1608 128 EFTA00806535 Page 2 of 8 IT-204 (2015) 5O3512 1.000 Section 2 - Federal ordinary business Income (loss) Part 1 - Income from federal Form 1065 1 Gross receipts or sales 2 Returns and allowances 20059894 2 3 Subtract line 2 from line 1 3 20059894 4 Cost of goods sold 4 5 Gross profit (subtract line 4 from line 3) 5 20059894 6 Ordinary income (loss) from other partnerships, estates, and trusts (submit statement) .S.-114T 1 6 248456 7 Net farm profit (loss) (submit federal Form 1040. Schedule F) 7 8 Net gain (loss) from federal Form 4797, Part II. line 17 (submit federal Form 4797) 8 9 Other income (loss) (submit statement) SEE. SIATEMENT. 1. 9 -234496 10 Total income (toss) (combine lines 5 through 9) 10 20073854 Part 2 - Deductions from federal Form 1065 11 Salaries and wages (other than to partners) (less employment credits) 11 11291732 12 Guaranteed payments to partners 12 13 Repairs and maintenance 13 414619 14 Bad debts 14 8131 15 Rent 15 749810 16 Taxes and licenses 16 769540 17 Interest 17 18 Depreciation (if required, submit federal Form 4562) I 181 120998 19 Depreciation reported on federal Form 1125-A and elsewhere on return I 191 20 Subtract line 19 from line 18 20 120998 21 Depletion (do not deduct dl and gas depletion) 21 22 Retirement plans, etc 22 106026 23 Employee benefit programs 23 338804 24 Other deductions (submit statement) SEX. 24 3858292 25 Total deductions (add lines 11 through 17 and lines 20 through 24) 25 17657952 26 Ordinary business income (loss) (subtract line 25 horn line 10) 26 2415902 S e c t i o n 3 - C o s t of goods sold (from federal Form 1125-A; see instructions) 27 Inventory at beginning of year 27 28 Purchases 28 29 Cost of labor 29 30 Additional IRC section 263A costs (submit statement) 30 31 Other costs (submit statement) 31 32 Total (add lines 27 through 31) 32 33 Inventory at end of year 33 34 Cos of goods sold (subtract line 33 from line 32) St 35 Methods used for valuing closing inventory (mar* an X in applicable boxes) cost K Lower of cost or market Other (specify method used and explain) 36 Was No there a writedown of subnormal goods/ Yes 37a Was LIFO inventory method adopted this tax year for any goods? (If Yes. submit federal Form 970) Yes No 37b If the LIFO inventory method was used for this tax year, enter the amount of closing inventory computed under LIFO 37b 38 Do the rules of IRC section 263A (for property produced or acquired for resale) apply to the partnership?. . . . Yes No 39 Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . Yes No If Yes, explain 204002151062 111 R66297 1608 129 EFTA00806536 5O3513 1.000 I7-204 (2015) Page 3 of 8 Section 4 - Balance sheets per books (from federal Form 1065, Schedule L) Assets 40 Cash 41 Trade notes and accounts receivable 42 Less allowances for bad debts 43 Inventories 44 U.S. government obligations 45 Tax-exempt securities 46 Other current assets (submit statement). ,S,TMT 2. 47a Loans to partners (or persons related to partners) 47b Mortgage and real estate loans 48 Other investments (submit statement). ,S,TtIT 2. 49 Buildings and other depreciable assets 50 Less accumulated depreciation 51 Depletable assets 52 Less accumulated depletion 53 Land (net any amortization) 54 Intangible assets (amortizable only) 55 Less accumulated amortization 56 Other assets (submit statement). ,S,-TMT 2 57 Total assets Beginning of tax year (a) (b) End of tax year (c) (d) 40 4577394 3532783 41 10526765 9290056 42 100000 10426765 100000 9190056 43 44 45 46 228894 176432 47a 47b 48 -214609 83446 49 4116424 4123029 50 3577355 539069 3396487 726542 51 52 53 54 55 56 2361407 3051607 57 17918920 16760866 Liabilities and capital Beginning of tax year (a) (b) End of tax year (c) (d) 58 Accounts payable 58 13449263 12182330 59 Mortgages, notes, bonds payable in less than one year 59 60 Other current liabilities (submit statement)Sibir 60 1304038 1786832 61 All nonrecourse loans 61 62a Loans from partners (or persons related to partners) 62a 62b Mortgages. notes. bonds payable in one year or more 62b 63 Other liabilities (submit statement). ,S,TMT 63 1314035 1620133 64 Partners' capital accounts . . 64 1851584 1171571 65 Total liabilities and capital. . 65 17918920 16760866 204003151062 R66297 1608 130 EFTA00806537 Page 4 of 8 I7-204 (2015) 5O3520 1.000 Section 5 — Reconciliation of income (loss) per books with income (loss) per return (From federal Form 1065. Schedule M-1: see instructions. If Schedule M-3 was filed. mark an X in the boxl_xi file Schedule M-3 and any related documents with Form IT-204: skip Section 5 and continue with Section 6.) 66 Net income (loss) per books 66 67 Income included on return not recorded on books this year, from Schedule M-1, line 2 67 Identify: 68 Guaranteed payments (other than health insurance) 68 69 Expenses recorded on books this year not included on return, from Schedule M-1, line 4 . . . 69 Identify: 70 Add lines 66 through 69 71 Income recorded on books this year not included on return, from Schedule M-1, line 6 711 Identify: 72 Deductions included on return not charged against book income this year, from Schedule M-1, line 7 7 WSW 73 Add lines 71 and 72 73 74 Income (loss) (subtract line 73 from tine 70) 74 Section 6 - Analysis of partners' capital accounts (from federal Form 1065, Schedule M-2) 75 Balance 76 Capital 77 Capital 78 Net 79 Other at beginning of year contributed - cash contributed - property income (loss) per books increases 75 76 77 78 79 Identify: 80 Add lines 75 through 79 801 81 Distributions - cash 81 3000000 82 Distributions • property 82 83 Other decreases 83 Identity: 84 Add lines 81. 82, and 83 84 85 Balance at end of year (subtract line 84 from line 80) 85 11111IIIIriiiiii2111111111 1851584 2319987 41715711 3000000 1171571 R66297 1608 131 EFTA00806538 5O352] 1.000 77-204 (2015) Page 5 of 8 Section 7 - Partners' share of income, deductions, etc. (from federal Form 1065, Schedule K) Partners' distributive share items 86 Ordinary business income (loss) 86 2415902 87 Net rental real estate income (loss) (submit federal Form 8825) 87 88a Other gross rental income (loss) 88a 88b Expenses from other rental activities 88b 89 Other net rental income (loss) (subtract line 88b from line 88a) 89 90 Guaranteed payments 90 91 Interest income 91 17910 92 Ordinary dividends 92 93 Royalties 93 94 Net short-term capital gain (loss) (submit federal Schedule pi 94 95 Net long-term capital gain (loss) (submit federal Schedule 0) 95 96 Net section 1231 gain (loss) (submit federal Form 4797) 96 97 Other income (loss) (see instructions) 97 Identify: 98 Section 179 deduction (submit federal Form 4562) 98 191194 99 Other deductions (see instructions) 99 1 03335 Identify: SEE STATEMENT 3 100 This line intentionally left blank 100 101 Net earnings (loss) from self-employment 101 102 Tax-exempt income and nondeductible expenses (seeinstructions) 102 -118554 103 Distributions - cash and marketable securities 103 3000000 104 Distributions - other property 104 105 Other Items not Included above that are required to be reported separately to gannets (see Instr.) 105 1791 0 Identify: SEE STATEMENT 3 Analysis of net income (loss) 106 Enter amount from federal Form 1065, Analysis of Net Income (Loss), line 1 106 2139283 Analysis by type of partner A Corporate B Individual (active) C Individual (passive) D Partnership E Exempt organization F Nominee/other General partners Limited partners 2139283 204005151062 VIII I IIII I II II III II VIII I III III II R66297 1608 132 EFTA00806539 Page 6 of 8 1T-204 (2015) 6O1522 1.000 Section 8 - New York modifications (see instructions) 107 This line intentionally left blank 108 Total addition modifications (from Forrn17-225. Nne 9) 109 This line intentionally left blank 110 Total subtraction modifications (from Form 1T-225. line 18) 111 Additions to federal itemized deductions Letter Amount 111a 111b 111e 111d 111e lilt 112 Total additions to federal itemized deductions (add lines 111a through MO 113 Subtractions from federal itemized deductions Letter Amount 113a 113b 113e 113d 113e 113t 114 Total subtractions from federal itemized deductions (add lines 113a through 1131) 115 This line intentionally left blank 204006151062 VIII I III I III I III II VIII I III III II 312745 110 66457 112 114 115 R66297 1608 133 EFTA00806540 5O3523 1.000 IT-204 (2015) Page 7 of 8 Section 9 - Other information 116a New York source gross income (see instructions) 116a 34186.17 116b MCTD allocation percentage (see instructions) 1166 70.7200 961 116c Total receipts from the sale of goods by manufacturing 1160 116d Adjusted basis of qualified manufacturing property 116d 11Th 117b Did the partnership sell assets subject to IRC 1060? If the partnership filed a group return on behalf of any nonresident partners, enter the special Yes K No El NYS identification number 1176 117c Is this partnership a partner in another partnership or LLC? (if Yes. list the names and ElNs below: submit additional sheets necessary.) Yes No K Name of entity EIN TWO TWELVE MANAGEMENT LLC 201354409 Section 10 - New York allocation schedule Part 1 - List all places, both in and out of NYS, where the partnership carries on business (submit additional sheets )(necessary) Street address City and state Description (see instructions) 15 WATTS STREET NEW YORK, NY OFFICE 1688 MERIDIAN AVE MIAMI BEACH, FL OFFICE 8447 WILSHIRE BLVD BEVERLY HILLS, CA OFFICE 118 Do books and records reflect income earned in New York? (II Yes, do not complete Pan 2.) Yes K No [1) Part 2 - Formula basis allocation of income if books and records do not reflect income earned in New York Items used as factors A Totals - in and out of NYS B - New York State amounts Property percentage (see Mat) 119 Real property owned 120 Real property rented from others 121 Tangible personal property owned 122 Property percentage (add ;nes 10 120. and 121: see Instr.) 123 Payroll percentage (see instr.) 124 Gross income percentage (see instr.) 125 Total of percentages (total column C, lines 122,123, and 124) 126 Business allocation percentage (divide line 125 by three or by actual number of percentages it less than three) Dollars 119 120 121 6467368 122 123 194521 6661889 11379227 Dollars C - Percent col. B is of col. A 119 120 121 4768832 168776 122 123 4937608 8456522 122 123 74.1172 % 74 3612 % 124 21041361 124 13400728 124 125 126 63.6815 % 212.1599 % 70 7200 % Section 11 - Partners' credit information (see instructions) Has the partnership (or an entity of which the partnership is an owner) been convicted of Bribery Involving Public Servants and Related Offenses, Corrupting the Government, or Defrauding the Government (NYS Penal Law Article 200 or 496, or section 195.20)? Yes K No II 204007151062 VIII I III I VIII I I II VIII I III III II R66297 1608 134 EFTA00806541 Page 8 of 8 1T-204 (2015) 601520 1.000 Section 11 (continued) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Form IT-611. 1T-611.1, arufrot fr611.2) 127 Site preparation credit component 128 Tangible property credit component 129 On-site groundwater remediation credit component EZ capital tax credit (Form IT-602) 130 This line intentionally left blank 131 Recapture of credit for investments in certified EZ businesses 132 Recapture of credit for contributions of money to EZ community development projects . . QEZE tax reduction credit (Form ff-604) 133 QEZE employment increase factor 134 QEZE zone allocation factor 135 QEZE benefit period factor Excelsior jobs program tax credit (Rem 17-607) 136 Excelsior jobs tax credit component 137 Excelsior investment tax credit component 138 Excelsior research and development tax credit component 139 Excelsior real property tax credit component Farmers' school tax credit (Font 17-21'7) 140 Acres of qualified agricultural property 141 Acres of qualified conservation property 142 Eligible school district property taxes paid 143 Acres of qualified agricultural property converted to nonqualified use Other flow-through credit bases and information Credit bases Code Amount Code Amount 144a 144b 144c Credit information Code Information 144d 144e 144f 1441 144k 1441 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 Code Information Part 2 - flow-through credits, addbacks and recaptures 145 Long-term care insurance credit (Form IT-249) 146a investment credit (including employment incentive 146b Research and development - investment credit 147 Other flow-through credits Code Amount cred' (Form and historic bam reimbeepon mat Form IT-212) . IT-212) Code Amount 145 146a 146b 147a 147e 147b 147f 147c 147g 147d 147h 148 Addbacks of credits and recaptures Code Amount Code Amount 148a 148d 148b 148e 148c 148f 204008151062 11111 I1111 III III III VIII III III II Part 3 - START-UP NY tax elimination credit information (Form IT-638) 149 START-UP NY business certificate number (Form DTF-74). 150 Year of START-UP NY business tax benefit period 151 START-UP NY area allocation factor 149 150 151 R66297 1608 135 EFTA00806542 F i CINEW YORK STATE 2015 - Department of Taxation and Finance 5O3507 2 IT-204.1 New York Corporate Partners' Schedule K Tax Law - Article 9-A Partnership's name (as shown on FormIT204) NEXT MANAGEMENT. 1 LC Partnership's EIN 133495607 Entire net income (ENI) information when the corporate partner's New York tax filing status Is a C corporation ENI addition modifications I Total additions 1 107792 A- Number B- Amount A- Number 8- Amount Is EA- 507 10779.2_ ld a- lb a- Is a- lc EA- If a - ENI subtraction 2 modifications Total subtractions 2 18912 A- Number 9- Amount A- Number B- Amount 2a ES- 507 18912 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Assets and liabilities (see instructions) 3 Total assets 4 Real property and marketable securities included on line 3 5 Real property and marketable securities at fair market value (FMV) 6 Average value of adjusted total assets 7 Total liabilities 8 Liabilities directly attributable to business capital 9 Liabilities directly attributable to investment capital Average value 3 18409058 4 439859 5 439859 6 18409058 7 16419604 8 9 Items related to Investment capkal under Article 9-A Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Descrption of asset (identity each asset. and enter number of shares el applicable) and date acquired here: for each asset complete columns D through G on the corresponding lines below) Item A- Description of asset B- Number of shares acquired, II applicable C- Date acquired A B C D E F Item D Number of shares sold, if applicable E Date sold F Average FMV reported G Liabilities directly attributable H Nat average FMV A B C D E F Total from additional sheet(s) 10 Total columns F and 0 lip 116001151062 III DII III 1 II 11111011111 I III III II R66297 1608 136 EFTA00806543 Page 2 of 7 IT-204.1 (2015) 603608 2.000 Part 2 - Investment capital - stocks actually held more than one year Description of investment (identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding Hoes below) Item A - Name/CUSINCINS/lot number B • Number ol shares acquired C - Date acquired A B C D E F Item 0 Number of shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G 11 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and date acquired here: to each investment complete columns F and G on the corresponding lines below) Item A - Name/CUSIP/CINS4ot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add fines f O. 11. and 12 an colunm Fend G) 116002151062 III III III I III III I II VIII I III ill II 13 R66297 1608 137 EFTA00806544 5O3514 3.000 IT-204.1 (2015) Page 3 of 7 Part 5 - Prior year Investment capital - stocks that did not meet holding period requirement (see Instructions) Description of investment (Identify each Investment. and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding Noes below) Item A -Name/CUSINCINSilot number B- Number of shares acquired C- Date aoquIred A B C D E F Item 0 Number of shares sold E Date sold F Average FMV as previously reported G Liabilit es directly attributable as previously reported H Net average FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Items related to Investment and other exempt Income under Article 9-A 16 Gross exempt cross-article dividends 17 Gross exempt controlled foreign corporation (CFC) income 18 Gross exempt unitary corporation dividends 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 20 Dividend income from investment capital from stocks actually held more than one year 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 22 Dividend income from investment capital from stocks presumed heir' more than one year 16 17 18_ 19 20 21 22 Items related to interest deductions directly attributable to Investment and other exempt income under Article 9-A 23 Total interest expense per federal Form 1065, line 15 24 Interest deductions directly attributable to income reported on line 16 25 Interest deductions directly attributable to income reported on line 17 26 Interest deductions directly attributable to income reported on line 18 27 Interest deductions directly attributable to income reported on line 19 28 Interest deductions directly attributable to income reported on line 20 29 Interest deductions directly attributable to income reported on line 21 30 Interest deductions directly attributable to income reported on line 22 31 Interest deductions directly attributable to business capital III 111 11 23 24 25 26 27 28 29 30 R66297 1608 138 EFTA00806545 Page 4 of 7 IT-204.1 (2015) 5O351S 3.000 Items related to subtraction modifications for qualified banks 32 Qualified residential loan portfoio assets 32 33 Gross interest income from qualifying loans 33 33a Gross interest income from al loans 33a 33b Gross interest expense from al loans 33b Items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34 34a Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 34a 35 Adjusted basis of qualified manufacturing property 35 36 Number of employees employed in manufacturing in New York 36 Apportionment and Metropolitan Commuter Transportation District (MCTD) information Apportionment - Part 1 1 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (mark an X In rho apprcprlate box) Yes a 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in the MCTD? (mark an X in the appropriate box) Yes No K No K Average value of property (see instructions for Apportionment - Part 1, lines 3 through 7) A MCTD B New York State 3 Real estate owned 4 Real estate rented 5 Inventories owned 6 Tangible personal property owned 7 Tangible personal property rented 3 4 4763784 4768832 5 6 168776 168776 7 Apportionment - Part 2 Receipts from: (see instructions for Apportionment Part 2, lines 1 through 52a) A MCTD B New York State C Everywhere Section 210-A.2 1 Sales of tangible personal property 2 Sales of electricity 3 Net gains from sales of real property 1 2 3 Section 210-A.3 4 Rentals of real and tangible personal property , , , , 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 4 5 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7a Sale, licensing, or granting access to digital products 8 This line intentionally left blank 7 7a 8 Section 210-44(a)(2)(4) 9 Interest from loans secured by real property 10 Net gains from sales of loans secured by real properly . . 9 10 11 Interest from loans not secured by real property , 11 12 Net gains from sales of loans not secured by 12 real property n 116004151062 R66297 1608 139 EFTA00806546 I7-204.1 (2015) Page 5 of 7 103618 2.000 Receipts from: (continued) A B MOTO New York State Everywhere Section 210-A.5(a)(2)(B) U 13 Interest from federal debt 13 14 Net gains from federal debt 14 15 Interest from NYS and its political subdivisions debt 15 16 Net gains from NYS and its political subdivisions debt 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) K 19 19 Interest from asset-backed securities and other government agency debt 20 Net gains from government agency debt or asset-backed securities sold through an exchange 20 21 Net gains from all other asset-backed securities . . 21 Section 210-A.5(a)(2)(D) K 22 22 Interest from corporate bonds 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements 25 Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 26 Section 210-A.5(a)(2)(I) K 27 27 Net income from sales of physical commodities . . Section 210-A.5(a)(2)(J) K 28 28 Marked to market net ains Section 210-A.5(a)(2)(H) u 29 Interest from other financial instruments 29 30 Net gains from other financial instruments 30 30a Net gains from other financial instruments (broker/deafer/exchange) 30a 30b Other income from other financial investments. . 30b 30c Other income from other financial investments (broker/deater/exchange) 30c Section 210-A.5(b) 31 Brokerage commissions 31 32 Margin interest earned on behalf of brokerage accounts 32 33 Fees for advisory services for underwriting or management of underwriting 33 34 Receipts from primary spread of selling concessions 34 35 Receipts from account maintenance fees 35 36 Fees for management or advisory services 36 37 Interest from an affiliated corporation 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards. . . 38 39 Service charges and fees from credit cards 39 40 Receipts from merchant discounts 40 41 Receipts from credit card authorizations and settlement processing 41 42 Other credit card processing receipts 42 116005151062 III III III I II III II VIII I III III II R66297 1608 140 EFTA00806547 Page 6 of 7 IT-204.1 (2015) 5O3517 3.000 Receipts from: (continued) A MCTD B New York State Everywhere Section 210-A.5(d) 43 Remain from certain services to Investment companies 43 Section 210-A.6 44 Receipts from railroad and trucking business . . . . 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Section 210-A.7 46 Receipts from air freight forwarding 47 Receipts from other aviation services 46 47 Section 210-A.8 48 Advertising in newspapers or periodicals 49 Advertising on television or radio 50 Advertising via other means 48 St 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52a Receipts from other services/activities not specified 52 13400728 13400728 21043360 52a Payroll A MCTD B New York State 53 Wages andother compensationof employeesexcept general executive officers 53 8456522 8456522 54 Average number of individuals employed full-time in New York State (excluding employees with partnershinelde authority) 54 51 Gross proceeds or receipts from certain sales (for apportionment purposes) A MCTD B New York State C Everywhere 55 56 57 58 59 Sales of loans secured by real property Sales of loans not secured by real property Sales of other asset-backed securities Sales of corporate bonds Sales of physical commodities _55. 56 57 58 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 61 Of loans not secured by real property 62 Of federal debt instruments 63 Of New York State and its political subdivisions debt instruments 64 Of other states and their political subdivisions debt instruments 65 Of government agency debt or asset-backed securities (through exchange) 66 Of all other asset-backed securities 67 Of corporate bonds through licensed exchange or broker/dealer 68 Of other corporate bonds 69 Of physical commodities 70 Of other financial instruments III III 111 11 60 61 62 63 64 65 66 67 68 69 20 R66297 1608 141 EFTA00806548 I7-204.1 (2015) Page 7 of 7 503511 2.000 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 72 Value of borrowing agreements when partnership is securities borrower 73 Value of repurchase agreements when partnership is seller/borrower 74 Value of lending agreements when partnership is securities lender 75 Interest income from reverse repurchase agreements and securities borrowing agreements 76 Interest expense from repurchase agreements and securities lending agreements 116007151062 III III III I VIII I I II VIII I III III II 71 72 73 74 75 76 R66297 1608 142 EFTA00806549 Department of Taxalion and Finance 5Y3510 3.000 YORK 2 015 New York State Modifications Attachment to Form IT-201, IT-203, IT-204, or IT-205 IT-225 Name(s) as shown on return Identifying number as gown on return NEXT MANAGEMENT, LLC 133495607 Complete all parts that apply to you; see Instructions (Form IT-225-I). Submit this form with Form IT-201, IT-203,11'204, or IT-205. Mark an X in the box identifying the return you are filing: IT-201 K IT-203 K IT-204 jd IT-205O Schedule A — New York State additions (enter whole dollars only) Part 1 — Individuals, partnerships, and estates or trusts 1 New York State additions la lb 1c Id le If to Number A- 201 A- 209 A- 214 A- A- A- A- A - Total amount 153191 00 107792 00 27192 00 00 00 00 00 B - NYS alocated amount 108337 00 76231 00 19230 00 00 00 00 00 2 Total (add column A roes la through rot 3 Total of Schedule A Pan 1, column A amounts from additional Form(s) IT-225, if any 4 Add lines 2 and 3 2 288175 00 3 00 4 288175 00 Part 2 — Partners, shareholders, and beneficiaries LU Form IT-201 filers: do not enter EA-103 or EA-113 Form IT-203 filers: do not enter EA-113 Form IT-205 filers: do not enter EA-113 or EA-201 5 New York State additions 5a 5b 5c 5d 5e 5f Number EA- 201 a- a- a- a- a- EA- A - Total amount 24570 00 00 00 00 00 00 0_0 B - NYS alocated amount 10800 00 00 00 00 00 00 00 6 Total (add column A, 'nes 5a through 5g) 7 Total of Schedule A Pan 2, column A amounts from additional Form(s) IT-225. if any . . . 8 Add lines 6 and 7 9 Total additions (add lines 4 and 8: see instructions) 225001151062 6 24570 00 7 00 8 24570 00 9 312745 00 (continued) R66297 1608 143 EFTA00806550 IT-M (2015) (back) SY3511 3.000 Schedule B - New York State subtractions (enter whole dollars only) Part 1 - Individuals, partnerships, and estates or trusts 10 New York State subtractions 10a 10b 10c 10d 10e 10f Number S- 213 5- 5- S S S- S- A • Tots amount 59977 00 00 00 00 00 00 0Q 8 - NYS allocated amount 42416 00 00 00 00 00 00 00 11 Total (add column A. lines 10a through 10g) 12 Total of Schedule B, Part 1, column A amounts from additional Form(s) FT-225, if any 13 Add lines 11 and 12 11 59977 00 12 00 13 59977 00 Part 2 - Partners, shareholders, and beneficiaries Form IT-201 filers: do not enter ES-103, ES-104, ES-106, ES-107, or ES-125 Form IT-203 filers: do not enter ES-106, ES-107, or ES-125 Form IT-205 filers: do not enter ES-125 14 New York State subtractions 14a 14b 14c 14d 14e 14f 41 a Number ES- 213 ES - ES - ES- ES- ES- ES - A - Total amount 6480 00 00 00 00 00 00 00 8 • NYS allocated amount 4583 00 00 00 00 00 00 00 15 Total (add column A. lines 14a through 14g) 16 Total of Schedule B, Part 2, column A amounts from additional Form(s) FT-225, if any 17 Add lines 15 and 16 18 Total subtractions (add lines 13 and 17: see instructions) 225002151062 15 6480 00 16 00 17 6480 00 18 66457 00 R66297 1608 144 EFTA00806551 NEW Department •.O IT-398 of Taxation and Finance Y,BG 2 CO) YORK New York State Depreciation Schedule for ST 2015 ATE IRC Section 168(k) Property Use this to= only for tax years beginning alter December 31, 2002, and only for property placed in service inside or outside New York State alter May 31, 2003. NameN) as shown on return NEXT MANAGEMENT. LLC Identifying number as shown an return 1334 Q5607 Mark an Xin one box to show the income tax return you are filing and submit this form with that return. IT-201, Resident 0 IT-203, Nonresident and part-year resident u IT-204. Partnership ki IT-205, Fiduciary 0 Part 1 - Depreciation information for Internal Revenue Code (IRC) section 168(k) property (except for resurgence zone property and New York liberty zone property described in IRC section 14001(b)(2)) placed in service inside or outside New York State, beginning after May 31, 2003 (see instructions) A Description of property (use addidonal sheet it needed) B Date placed in service C Depreciable basis D Convention E Method F New York depreciation deduction G Federal depreciation deduction SEE ATTACHED DEPR SCH .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 1 Enter column F and column G totals 1 59977.00 107792 .00 Transfer the column F total to: Transfer the column G total to: Form IT-225. line 10, Total amount column and enter subtraction modification S-213 In the Number column. Form IT-225, Nne 1, Total amount column and enter addition modification ,4409 in the Number column. Part 2 - Year-of-disposition adjustment for IRC section 168(k) property (except for resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2)) placed in service inside or outside New York State. beginning after May 31, 2003 (see instructions) Mark an X in the box if you claimed an investment credit on Form 11-212, Investment Credit, for any property listed K below (see instructions) A Description of property (use additional sheet it needed) B Date of disposition C Method of disposition D Total New York depreciation deduction E Total federal depreciation deduction .00 .00 .00 .00 .00 .00 .00 .00 2 Enter column D and column E totals 2 .00 .00 3 Enter amount from line 2, column E 3 .00 4 Enter amount from line 2, column D 4 .00 S Subtract line 4 from line 3 5 .00 Transfer the line 5 amount to Form IT-225. line 10, Total amount column and enter subtraction modification S-214 in the Number column. 398001151002 R66297 1608 145 EFTA00806552 NEXT MANAGEMENT, LLC 13-3495607 IT-204, PAGE 2 SUPPORTING SCHEDULE LINE 6 - ORDINARY INCOME FROM OTHER PTNRSHPS AND FIDUCIARIES FROM TWO TWELVE MANAGEMENT, LLC 248456 TOTAL ORDINARY INCOME FROM OTHER PTNRSHPS AND FIDUCIARIES 248456 LINE 9 - OTHER INCOME FOREIGN EXCHANGE LOSS -234496 TOTAL OTHER INCOME -234496 LINE 24 - OTHER DEDUCTIONS AMORTIZATION 200614 TRAVEL & ENTERTAINMENT EXPENSE 90792 INSURANCE EXPENSE 112776 OFFICE SUPPLIES AND EXPENSES 105286 PRINTING EXPENSE 43338 SCOUTING EXPENSE 9354 COMPUTER EXPENSE 108201 CLEANING SERVICE 40953 UTILITIES 34652 POSTAGE 11389 MISCELLANEOUS 104822 BANK CHARGES 57683 PUBLICATIONS & SUBSCRIPTIONS 12677 TRAVEL 803503 ADVERTISING AND PROMOTION 259861 COMMISSIONS EXPENSE 2002456 PROFESSIONAL FEES 240861 TELEPHONE EXPENSE 214004 CONSULTING FEES 640280 CONTEST EXPENSE 5550 PAYROLL PROCESSING EXPENSE 14299 OVERHEAD REIMBURSEMENT -1470551 MISCELLANEOUS MODEL EXPENSES 55856 PROMOTIONAL MODEL EXPENSES 100004 LITIGATION SETTLEMENT 45632 CALIFORNIA LLC FEE 6000 NYS LLC FEE 3000 ORGANIZATION COSTS 5000 TOTAL OTHER DEDUCTIONS 3858292 STATEMENT 1 MUNI31A00 R66297 1608 146 EFTA00806553 NEXT MANAGEMENT, LLC 13-3495607 IT-204, PAGE 3 SUPPORTING SCHEDULE LINE 46 - OTHER CURRENT ASSETS BEGINNING ENDING PREPAID EXPENSES 213894 159432 DEFERRED TAX ASSET- CURRENT 15000 17000 TOTAL OTHER CURRENT ASSETS 228894 176432 LINE 48 - OTHER INVESTMENTS INVESTMENT IN TWO TWELVE TOTAL OTHER INVESTMENTS BEGINNING ENDING -214609 83446 -214609 83446 LINE 56 - OTHER ASSETS BEGINNING ENDING DEPOSITS 29606 43931 RESTRICTED CASH 40000 40000 DUE FROM AFFILIATES 774693 1313624 DUE FROM MODELS 1464108 1607052 DEFERRED TAX BENEFIT-LONG TERM 53000 47000 TOTAL OTHER ASSETS 2361407 3051607 LINE 60 - OTHER CURRENT LIABILITIES ACCRUED EXPENSES TOTAL OTHER CURRENT LIABILITIES BEGINNING ENDING 1304038 1786832 1304038 1786832 LINE 63 - OTHER LIABILITIES BEGINNING ENDING ADVANCES FROM AFFILIATES 21519 8342 DUE TO RELATED PARTY 1223293 1476782 DEFERRED RENT-LONG TERM 69223 135009 TOTAL OTHER LIABILITIES 1314035 1620133 MUNI31A00 STATEMENT 2 R66297 1608 147 EFTA00806554 NEXT MANAGEMENT, LLC 13-3495607 IT 204, PAGE 5 SUPPORTING SCHEDULES PARTNERS' DISTRIBUTIVE SHARE ITEMS LINE 99 - OTHER DEDUCTIONS CASH CHARITABLE CONTRIBUTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 103335 TOTAL CASH CONTRIBUTIONS 103335 TOTAL OTHER DEDUCTIONS 103335 LINE 105 - OTHER ITEMS INVESTMENT INCOME 17910 TOTAL OTHER ITEMS 17910 STATEMENT 3 MUNI31A00 R66297 1608 148 EFTA00806555 NEXT MANAGEMENT, LLC 13-3495607 IT-204, PAGE 7 SUPPORTING SCHEDULE NEW YORK SOURCE GROSS INCOME WORKSHEET ENTER CURRENT YEAR AMOUNTS AMOUNT FROM FEDERAL FORM 1065, LINE 1C AMOUNT FROM FEDERAL FORM 1065, SCH K, LINE 5 NY SOURCE INCOME FROM LOWER TIERED PARTNERSHIPS A MODIFIED NEW YORK SOURCE FED. GROSS INC. GROSS INCOME 20,059,894. 17,910. 12,417,261. 17,910. 983,466. TOTAL 13,418,637. MUNI31.000 STATEMENT 4 R66297 1608 149 EFTA00806556 NEXT MANAGEMENT, LLC NEW YORK IT-398, PAGE 1, SUPPORTING SCHEDULES 13-3495607 DESCRIPTION OF PROPERTY DATE DEPRECIABLE RECOVERY ACQUIRED NEW YORK FEDERAL DEPR. BASIS PERIOD CONVEN METHOD DEPRECIATION DEDUCTION LEASEHOLD IMPRO-NY 06/22/2003 103,492. 39.000 MM M39 2,654. 1,327. LEASEHOLD IMPRO-NY 07/24/2003 26,080. 39.000 MM M39 669. 334. LEASEHOLD IMPRO-NY 08/12/2003 17,758. 39.000 MM M39 455. 228. LEASEHOLD IMPRO-NY 09/18/2003 128,435. 39.000 MM M39 3,293. 1,647. LEASEHOLD IMPRO-NY 10/28/2003 16,767. 39.000 MM M39 430. 215. LEASEHOLD IMPRO-NY 11/19/2003 41,981. 39.000 MM M39 1,076. 538. LEASEHOLD IMPROVE-NY 01/16/2004 5,649. MM M39 145. 72. LEASEHOLD IMPROVE-NY 02/17/2004 7,686. MM M39 197. 99. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 15.000 HY M3 1,665. 833. LEASEHOLD IMP-NY 02/12/2008 11,736. MQ M15 782. 391. LEASEHOLD IMP-NY 12/19/2008 16,000. MQ M15 1,066. 533. SOFTWARE 01/22/2015 155,603. 3.000 CS 47,545. 101,575. TOTAL DEPRECIATION 59,977. 107,792. 5XX063 LOCO STATEMENT 5 R66297 1608 150 EFTA00806557 2015 4 4al ia Department of Taxation and Finance 5O3501 2000 New York Corporate Partner's Schedule K-1 Tax Law - Article 9-A For calendar year 2015 or tax year beginning 151 and ending IT-204-CP Final K4 Amended K4 Parinere: Before completing your franchise tax return, see Form IT-204-CP-I, Partner's Instructions for Form IT-204-CP (available at ownicbmny.goty. Partnership's Information Partnership's name (as shown on Form IT-204) NEXT MANAGEMENT. LLC A Mark an X in the box if either applies to your entity K Publicly traded partnership K Partnership's EIN 133495607 Portfolio investment partnership B Tax shelter registration number, if any Partner's Information (see instructions) Partner's name CLAXON INC Partner's address 15 WATTS STREET City NEW YORK C The partner is a (marks', X in me sppwpaare box) Lxl General partner or LLC member-manager U Limited partner or other LLC member D What is the New York tax filing status of the partner? (Mark an X in the appropriate box. known.) C corporation K S corporation E If the partner is a disregarded entity, enter the EIN of the entity reporting the income of the partner (if known) Partners EIN 133508513 State NY ZIP code 10013 F Did the partner sell its entire interest during the tax year? F Yes K No El G Partner's share of profit. loss. and capital 1) Profit G1 2) Loss G2 3) Capital G3 H Partner's share of liabilities at the end of the year 1) Nonrecourse 2) Qualified nonrecourse financing H1 H2 6137989 3) Recourse 113 623752 1 Partner's capital account analysis 1) Beginning capital account 11 777664 2) Capital contributed during the year - cash 12 3) Capital contributed during the year - property 13 4) Current year increase (decrease) 14 974394 5) Withdrawals and distributions - cash 15 1260000 6) Withdrawals and distributions - property 16 7) Ending capital account 17 492058 8) Method of accounting (mark an X in the appropriate box) Beginning Ending 42.0000 % 42.0000 % 42,0000 % 42.0000 % 42.0000 % 42.0000 %i Tax basis GAAP n Book n Other (submit explanation) 117001151062 III III III 1 I~ I1111 1111111 III III 11 R66297 1608 151 EFTA00806558 Page 2 of 11 rr-204-CP (2015) 5O3502 2.000 J Was Form CT-2658-E filed with the partnership" J Yes K No K NYS estimated tax paid on behalf of partner (from Form CT-2658) Date Amount 1) First installment K1 2) Second installment K2 3) Third installment K3 4) Fourth installment K4 Total NYS estimated tax paid on behalf of partner (add linos K1 through K4) Partner's share of entire net Income (ENI) information when the corporate partner's New York tax filing status is a C corporation ENI addition modifications 1 Total additions 45273 A - Number B- Amount A- Number B- Amount 1a EA-507 45273 Id EA- 1b EA- 1e a- lc EA- 11 a - ENI subtraction 2 modifications Total subtractions 2 7943 A - Number B- Amount A- Number B- Amount 2a ES-507 7943 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Partner's proportionate part of assets and liabilities (for New York C corporate partners only) Average value 3 Total assets 4 Real property and marketable securities included on line 3 5 Real property and marketable securities at fair market value (FMV) 6 Average value of adjusted total assets 7 Total liabilities 8 Liabilities directly attributable to business capital 9 Liabilities directly attributable to investment capital 117002151062 3 7731804 4 184741 5 184741 6 7731804 7 6896234 8 9 R66297 1608 152 EFTA00806559 5O35D3 2.000 IT-204-CP (2015) Page 3 of 11 Partner's proportionate pad of items related to investment capital under Article 9-A (for New York C corporate partners only) Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Description of asset (Identify each asset, and enter number of shares (il applicable) and date acquired here: for each asset complete Call716S D through G on the corresponding lines below) Item A • Description of asset 8 - Number of shares acquired. if applicable C - Date acquired A B C D E F Item D Number ol shares sold, if applicable E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 10 Total columns F and G 1 10 Part 2 - Investment capital - stocks actually held more than one year Description of investment (Identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding lines below) Item A - NamefCU$IPfCINSllot number 8 - Number of shares acquired C - Date acquired A B C D E F Item D Number ol shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G I 1 1 117003151062 111 R66297 1608 153 EFTA00806560 Page 4 of 11 IT-204-CP (2015) 503504 3.000 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and dale acquired here: for each investment complete columns F and G on the corresponding lines below) Item A - NameICU$IPICINSIIot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(S) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add tines TO. 21. and 12 LO columns Fend 0) 13 Part 5 - Prior year investment capital - stocks that did not meet holding period requirement Description of investment (identify each investment. and enter number of shares and date acquired here: tor each investment complete columns D through G on the corresponding lines below) Item A - NamelCU$IPICINSIIot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV as previously reported G Liabilities directly attributable as previously reported H Net average FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 III ifirl III 111 11 R66297 1608 154 EFTA00806561 103106 3.000 IT-204-CP (2015) Page 5 of 11 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Partner's share of items related to investment and other exempt income under Article 9-A (for New York C corporate partners only) 16 Gross exempt cross•article dividends 17 Gross exempt controlled foreign corporation (CFC) income 18 Gross exempt unitary corporation dividends 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 20 Dividend income from investment capital from stocks actually held more than one year 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 22 Dividend income from investment capital from stocks presumed held more than one year 16 17 18 19 -2Q 21 22 Partner's share of items related to interest deductions directly attributable to investment and other exempt income under Article 9-A (for New York C corporate partners only) 23 24 25 26 27 28 29 30 31 Interest expense per federal Form 1065, line 15 Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly attributable to income reported on line 16 attributable to income reported on line 17 attributable to income reported on line 18 attributable to income reported on line 19 attributable to income reported on line 20 attributable to income reported on line 21 attributable to income reported on line 22 attributable to business capital 23 24 25 26 27 28, 29, 30 31 Partner's share and proportionate part of items related to subtraction modification for qualified banks 32 Qualified residential loan portfolio assets 33 Gross interest income from qualifying loans 33a Gross interest income from all loans 33b Gross interest expense from all loans III 111 11 32 33 3b R66297 1608 155 EFTA00806562 Page 6 of 11 IT-204-CP (2015) 5O3506 2.000 Partner's share and proportionate part of items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 343 Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 35 Adjusted basis of qualified manufacturing property 35a Number of employees employed in manufacturing in New York 34 34a 35 35a Partner's share of New York modifications (for New York S corporate partners only) 36 New York State additions Number A— Total amount 36a E A- 36b E A- 36c EA- 36d EA- 36e EA- 36f EA- 37 Total addition modifications (total of column A, lines 36a through 360 37 38 New York State subtractions Number A — Total amount 38a E S- 36b E S- 38c E S- 36d E S- 38e E S- 38f E S- 39 Total subtraction modifications (total of column A, lines 38a through 381) 39 1 40 Additions to federal itemized deductions Letter Amount 40a 40b 40c 40d 40e 401 41 Total additions to federal itemized deductions (add lines 40a through 400 42 Subtractions from federal itemized deductions Letter Amount 42a 42b 42c 42d 42e 42f 43 Total subtractions from federal itemized deductions (add lines 42a through 420 117006151062 III Imo 41 L31 R66297 1608 156 EFTA00806563 503550 2.000 IT-204-CP (2015) Page 7 of 11 Partner's share of Income, deductions, etc. (from federal Form 1065, Schedule K-1) Partner's distributive share items 44 45 N 46 47 48 49 50 R 51 N 52 N 53 N 54 55 S 56 57 T 58 D 59 D 60 Ordinary business income (loss) 44 1014678 et rental real estate income (loss) 45 Other net rental income (foss) 46 ivaranteed payments 47 iterest income 48 7 522 Ordinary dividends 49 oyalties 50 et short-term capital gain (loss) 51 et long-term capital gain (loss) 52 et section 1231 gain (loss) 53 Other income (loss) 54 Identify: action 179 deduction 55 80301 Thar deductions (see instructions) 56 43401 Wont* SEE STATEMENT 1 ax-exempt income and nondeductible expenses (see Instructions) 57 -4 9793 istributions - cash and marketable securities 58 1260000 'stributions - other property 59 Other items not included above that are required to be reported separately to partners 60 7 522 Identity: SEE STATEMENT 1 Partner's credit information (see instructions) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Fenn CT61t. Form CT.6 Mt. or Form CT-6112L_ A — Form CT411 B — Form CT-611.1 C - Form CT4112 61 Site preparation credit component 61 62 Tangible property credit component 62 63 On-site groundwater remediation credit component 63 EZ capital tax credit (Form CT-602) 64 Recapture of credit for investments in certified EZ businesses [64 65 Recapture of credit for contributions of money to EZ community development projects 65 QEZE tax reduction credit (Form CT-604-CP) 67 QEZE zone allocation factor 6 67 66 QEZE employment increase factor 68 QEZE benefit period factor 68 Excelsior jobs program tax credit (Form CT-607) 69 Excelsior jobs tax credit component 70 Excelsior investment tax credit component 71 Excelsior research and development tax credit component 72 Excelsior real property tax credit component III i ifir I III 111 11 69 70 71 R66297 1608 157 EFTA00806564 Page 8 of 11 rr-204-CP (2015) 5O355] 2.000 Partner's credit information (continued) Farmers' school tax credit (Form CT-47) 73 Acres of qualified agricultural property 74 Acres of qualified conservation properly 75 Eligible school district property taxes paid 76 Acres of qualified agricultural property converted to nongualified use 73 74 75 76 Other flow-through credit bases and Information Credit bases Code Amount Code Amount 77a 77d 77b 77e 77c 77f Credit information Code Information Code Information 77j EMI 77k 771 Part 2 Flow-through credits, addbacks, and 78 Flow-through credits Code Amount recaptures Code Amount 78a 78e 78b 78f 78c 78g 78d 78h 79 Addbacks of credits and recaptures Code Amount Code Amount 79a 79d 79b 79e 79c 79f Part 3 START-UP NY tax elimination credit information (Form CT-638) 80 START-UP NY business certificate number (Form DIF-74) 81 Year of START-UP NY business tax benefit period 82 START-UP NY area allocation factor 80 81 82 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information Part 1 I During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (math an X in the appropriate box) . . . Yes Gi 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity. in the MCTD? (mark an X in the appropriate box) Yes 117008151062 III IIII III I I III II II VIII I III III II No K No K R66297 1608 158 EFTA00806565 5O3552 3.000 IT-204-CP (2015) Page 9 of 11 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information (continued) Part 1 Average value of property A MCTD B New York State 3 Real estate owned 4 Real estate rented 5 Inventories owned 6 Tangible personal property owned 7 Tangible personal property rented 3 4 2000789 2002909 5 6 70886 70886 7 Part 2 Receipts from: A MCTD B New York Slate C Everywhere Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property . . . 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-A.5(a)(2)(A) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property D 11 12 Net gains from sales of loans not secured by 12 real property K Section 210-A.5(a)(2)(B) K 13 13 Interest from federal debt 14 Net gains from federal debt 14 15 Interest from NYS and Its political subdivisions debt . . . . 15 16 Net gains from NYS and Its political subdivisions deb' . . 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) K 19 19 Interest from asset-backed securities and other government agency debt 20 Net gains from government agency debt or asset-backed securities sold through an exchange , 20 21 Net gains from all other asset-backed securities . . . 21 Section 210-A.5(a)(2)(D) K 22 22 Interest from corporate bonds 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 117009151062 R66297 1608 159 EFTA00806566 Page 10 of 11 IT-204-CP (2015) 5O3553 3.000 Receipts from: (continued) A MOTO B New York State Everywhere Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 25 26 Section 210-A.5(a)(2)(1) 27 27 Net income from sales of physical commodities . . . Section 210-A.5(a)(2)(J) n 28 Marked to market net gains 28 Section 210-A.5(a)(2)(H) 29 29 Interest from other financial instruments 30 Net gains from other financial instruments 30a Net gains from other financial instruments (broker/dealer/exchange) 30b Other income from other financial instruments. . . 30b 30c Other income from other financial instruments (broker/dealer/exchange) 30 30a 30c Section 210-A.5(b) 31 Brokerage commissions 32 Margin interest earned on behalf of brokerage accounts • • 33 Fees for advisory services for underwriting or management of underwriting 34 Receipts from primary spread of selling concessions 35 Receipts from account maintenance fees 36 Fees for management or advisory services 37 Interest from an affiliated corporation 31 32 33 34 35 36 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards . . . 39 Service charges and fees from credit cards 40 Receipts from merchant discounts 41 Receipts from credit card authorizations and settlement processing 42 Other credit card processing recepts 38 39 40 41 42 Section 210-A.5(d) 43 Receipts from certain services to Investment companies • • 43 Section 210-A.6 44 Receipts from railroad and trucking business 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Secton 210-A.7 46 Receipts from air freight forwarding 47 Receipts from other aviation services 46 47 Section 210-A.8 48 Advertising in newspapers or periodicals 49 Advertising on television or radio 50 Advertising via other means 48 49 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52a Receipts from other services/activities not specified 52 5628306 5628306 8838211 52a 117010151002 III 11111 R66297 1608 160 EFTA00806567 503554 3.000 IT-204-CP (2015) Page 11 of 11 Payroll A MCTD B New York State 53 Wages and other compensation of employees except general executive officers 53 3551739 3551739 54 Average number of individuals employed lull time in New York State (excluding employees with partnership-wide authority) 54 21 Gross proceeds or receipts from certain sales (for apportionment purposes) A MCTD B New York State C Everywhere 55 56 57 58 59 Sales of loans secured by real property Sales of loans not secured by real property Sales of other asset-backed securities Sales of corporate bonds Sales of physical commodities 55 56 57 58 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 61 Of loans not secured by real property 62 Of federal debt instruments 63 Of New York State and its political subdivisions debt instruments 64 Of other states and their political subdivisions debt instruments. 65 Of government agency debt or asset-backed securities (through exchange) 66 Of all other asset-backed securities 67 Of corporate bonds through licensed exchange or broker/dealer 68 Of other corporate bonds 69 Of physical commodities 70 Of other financial instruments 60 61 62 63 64 65 66 67 68 69 70 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 72 Value of borrowing agreements when partnership is securities borrower 73 Value of repurchase agreements when partnership is seller/borrower 74 Value of lending agreements when partnership is securities lender 75 Interest income from reverse repurchase agreements and securities borrowing agreements 76 Interest expense from repurchase agreements and securities lending agreements 117011151062 III III III i II III I II VIII I III III II 71 72 73, 74 75, 76 R66297 1608 161 EFTA00806568 NEXT MANAGEMENT, LLC 13-3495607 IT 204-CP, PAGE 7 SUPPORTING SCHEDULES PARTNER'S SHARE OF INCOME, DEDUCTIONS, ETC FEDERAL LINE 56 - OTHER DEDUCTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 43401 TOTAL OTHER DEDUCTIONS 43401 FEDERAL LINE 60 - OTHER ITEMS INVESTMENT INCOME 7522 TOTAL OTHER ITEMS 7522 STATEMENT 1 MUNI31A00 R66297 1608 162 EFTA00806569 Department of Taxation and Finance 5O3501 2000 ATE 2015 New York Corporate Partner's Schedule K-1 Tax Law - Article 9-A For calendar year 2015 or tax year beginning 151 and ending IT-204-CP Final K-1 Amended K-1 Partnere: Before completing your franchise tax return, see Form IT-204-CP-I. Partner's Instructions for Form IT-204-CP (available at monabutsy.gov). Partnership's Information Partnership's name (as shown on Form IT-204) NEXT MANAGEMENT. LLC A Mark an X in the box if either applies to your entity Publicly traded partnership Partnership's EIN 133495607 Portfolio investment partnership B Tax shelter registration number, if any Partner's Information (see instructions) Partner's name PARTNERSHIP HOLDING CORP Partners EIN 133501977 Partner's address 15 WATTS STREET City NEW YORK C The partner is a (marks', X in me ippropnare box) Lxl General partner or LLC member-manager U Limited partner or other LLC member D What is the New York tax filing status of the partner? (Mark an X in the appropriate box. known.) K C corporation E S corporation E If the partner is a disregarded entity, enter the EIN of the entity reporting the income of the partner (if known) State NY ZIP code 10013 F Did the partner sell its entire interest during the tax year? F Yes K No El G Partner's share of profit, loss, and capital 1) Profit G1 2) Loss G2 3) Capital G3 H Partner's share of liabilities at the end of the year 1) Nonrecourse 2) Qualified nonrecourse financing 3) Recourse H1 H2 113 4530420 460389 I Partner's capital account analysis 1) Beginning capital account Ii 573991 2) Capital contributed during the year - cash 12 3) Capital contributed during the year - property 13 4) Current year increase (decrease) 14 719196 5) Withdrawals and distributions - cash 15 930000 6) Withdrawals and distributions - property 16 7) Ending capital account 17 363187 8) Method of accounting (mark an X in the appropriate box) Beginning Ending 31.0000 % 31.0000 % 31.0000 % 31.0000 % 31.0000 % 31.0000 % Tax basis GAAP K Book n Other (submit explanation) 117001151062 III III III 1 I~ I1111 1111111 III III 11 R66297 1608 163 EFTA00806570 Page 2 of 11 rr-204-CP (2015) 5O3502 2.000 J Was Form CT-2658-E filed with the partnership" J Yes K No K NYS estimated tax paid on behalf of partner (from Form CT-2658) Date Amount 1) First installment K1 2) Second installment K2 3) Third installment K3 4) Fourth installment K4 Total NYS estimated tax paid on behalf of partner (add linos K1 through K4) Partner's share of entire net Income (ENI) information when the corporate partner's New York tax filing status is a C corporation ENI addition modifications 1 Total additions 1 A - Number B- Amount A- Number B- Amount 1a EA - Id EA - 1b EA - 1e EA - lc EA - 1f EA - ENI subtraction modifications 2 Total subtractions 2 A - Number B- Amount A- Number B- Amount 2a ES- 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Partner's proportionate part of assets and liabilities (for New York C corporate partners only) Average value 3 Total assets 4 Real property and marketable securities included on line 3 5 Real property and marketable securities at fair market value (FMV) 6 Average value of adjusted total assets 7 Total liabilities 8 Liabilities directly attributable to business capital 9 Liabilities directly attributable to investment capital 117002151062 3 4 5 6 7 8 9 R66297 1608 164 EFTA00806571 5O35D3 2.000 IT-204-CP (2015) Page 3 of 11 Partner's proportionate pad of items related to investment capital under Article 9-A (for New York C corporate partners only) Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Description of asset (Identify each asset, and enter number of shares (il applicable) and date acquired here: for each asset complete Call716S D through G on the corresponding lines below) Item A • Description of asset 8 - Number of shares acquired. if applicable C - Date acquired A B C D E F Item D Number ol shares sold, if applicable E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 10 Total columns F and G 1 10 Part 2 - Investment capital - stocks actually held more than one year Description of investment (Identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding lines below) Item A - NamefCU$IPfCINSllot number 8 - Number of shares acquired C - Date acquired A B C D E F Item D Number ol shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G I 1 1 117003151062 111 R66297 1608 165 EFTA00806572 Page 4 of 11 IT-204-CP (2015) 503504 3.000 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and dale acquired here: for each investment complete columns F and G on the corresponding lines below) Item A - NameICU$IPICINSIIot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(S) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add tines TO. 21. and 12 LO columns Fend 0) 13 Part 5 - Prior year investment capital - stocks that did not meet holding period requirement Description of investment (identify each investment. and enter number of shares and date acquired here: tor each investment complete columns D through G on the corresponding lines below) Item A - NamelCU$IPICINSIIot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV as previously reported G Liabilities directly attributable as previously reported H Net average FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 III ifirl III 111 11 R66297 1608 166 EFTA00806573 103106 3.000 IT-204-CP (2015) Page 5 of 11 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Partner's share of items related to investment and other exempt income under Article 9-A (for New York C corporate partners only) 16 Gross exempt cross•article dividends 17 Gross exempt controlled foreign corporation (CFC) income 18 Gross exempt unitary corporation dividends 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 20 Dividend income from investment capital from stocks actually held more than one year 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 22 Dividend income from investment capital from stocks presumed held more than one year 16 17 18 19 -2Q 21 22 Partner's share of items related to interest deductions directly attributable to investment and other exempt income under Article 9-A (for New York C corporate partners only) 23 24 25 26 27 28 29 30 31 Interest expense per federal Form 1065, line 15 Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly attributable to income reported on line 16 attributable to income reported on line 17 attributable to income reported on line 18 attributable to income reported on line 19 attributable to income reported on line 20 attributable to income reported on line 21 attributable to income reported on line 22 attributable to business capital 23 24 25 26 27 28, 29, 30 31 Partner's share and proportionate part of items related to subtraction modification for qualified banks 32 Qualified residential loan portfolio assets 33 Gross interest income from qualifying loans 33a Gross interest income from all loans 33b Gross interest expense from all loans III 111 11 32 33 3b R66297 1608 167 EFTA00806574 Page 6 of 11 IT-204-CP (2015) 5O3506 2.000 Partner's share and proportionate part of items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34a Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 35 Adjusted basis of qualified manufacturing property 35a Number of employees employed in manufacturing in New York 34 34a 35 35a Partner's share of New York modifications (for New York S corporate partners only) 36 New York State additions Number A —Total amount 36a EA- 201 55106 36b EA- 209 33415 36c EA- 214 $429 36d EA- 36e EA- 36f EA- 37 Total addition modifications (total of column A, lines 36a through 360 Lsrl. 96950 38 New York State subtractions Number A — Total amount 38a ES- 213 20601 36b ES- 38c ES- 36d ES- 38e ES- 38f ES- 39 Total subtraction modifications (total of column A, lines 38a through 381) 39 40 Additions to federal itemized deductions Letter Amount 40a 40b 40c 40d 40e 401 41 Total additions to federal itemized deductions (add lines 40a through 400 42 Subtractions from federal itemized deductions Letter Amount 42a 42b 42c 42d 42e 42f 43 Total subtractions from federal itemized deductions (add lines 42a through 420 117006151062 III Imo 41 L31 R66297 1608 168 EFTA00806575 503550 2.000 IT-204-CP (2015) Page 7 of 11 Partner's share of Income, deductions, etc. (from federal Form 1065, Schedule K-1) Partner's distributive share items 44 45 N 46 47 48 I 49 50 R 51 N 52 N 53 N 54 55 S 56 57 T 58 D 59 D 60 Ordinary business income (loss) 44 74 8931 et rental real estate income (loss) 45 Other net rental income (foss) 46 ivaranteed payments 47 iterest income 48 5552 Ordinary dividends 49 oyalties 50 et short-term capital gain (loss) 51 et long-term capital gain (loss) 52 et section 1231 gain (loss) 53 Other income (loss) 54 Identify: action 179 deduction 55 59271 Thar deductions (see instructions) 56 32034 Wont* SEE STATEMENT 1 ax-exempt income and nondeductible expenses (see Instructions) _57 -36751 istributions - cash and marketable securities 58 930000 'stributions - other property 59 Other items not included above that are required to be reported separately to partners 60 5552 Identity: SEE STATEMENT 1 Partner's credit information (see instructions) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Fenn CT61t. Form CT.6 Mt. or Form CT-6112L_ A — Form CI411 B — Form CT-611.1 C — Form CT4112 61 Site preparation credit component 61 62 Tangible property credit component 62 63 On-site groundwater remediation credit component 63 EZ capital tax credit (Form CT-602) 64 Recapture of credit for investments in certified EZ businesses [64 65 Recapture of credit for contributions of money to EZ community development projects 65 QEZE tax reduction credit (Form CT-604-CP) 67 QEZE zone allocation factor 6 67 66 QEZE employment increase factor 68 QEZE benefit period factor 68 Excelsior jobs program tax credit (Form CT-607) 69 Excelsior jobs tax credit component 70 Excelsior investment tax credit component 71 Excelsior research and development tax credit component 72 Excelsior real property tax credit component III i ifir I III 111 11 69 70 71 R66297 1608 169 EFTA00806576 Page 8 of 11 rr-204-CP (2015) 5O355] 2.000 Partner's credit information (continued) Farmers' school tax credit (Form CT-47) 73 Acres of qualified agricultural property 74 Acres of qualified conservation properly 75 Eligible school district property taxes paid 76 Acres of qualified agricultural property converted to nongualified use 73 74 75 76 Other flow-through credit bases and Information Credit bases Code Amount Code Amount 77a 77d 77b 77e 77c 77f Credit information Code Information Code Information 77j EMI 77k 771 Part 2 Flow-through credits, addbacks, and 78 Flow-through credits Code Amount recaptures Code Amount 78a 78e 78b 78f 78c 78g 78d 78h 79 Addbacks of credits and recaptures Code Amount Code Amount 79a 79d 79b 79e 79c 79f Part 3 START-UP NY tax elimination credit information (Form CT-638) 80 START-UP NY business certificate number (Form DIF-74) 81 Year of START-UP NY business tax benefit period 82 START-UP NY area allocation factor 80 81 82 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information Part 1 I During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (math an X in the appropriate box) . . . Yes El 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity. in the MCTD? (mark an X in the appropriate box) Yes K 117008151062 III IIII III I I III II II VIII I III III II No K No K R66297 1608 170 EFTA00806577 5O3552 3.000 IT-204-CP (2015) Page 9 of 11 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information (continued) Part 1 Average value of property A MCTD B New York State 3 Real estate owned 4 Real estate rented 5 Inventories owned 6 Tangible personal property owned 7 Tangible personal property rented 3 4 5 6 7 Part 2 Receipts from: A MCTD B New York State C Everywhere Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property . . . 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-A.5(a)(2)(A) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property D 11 1 12 Net gains from sales of loans not secured by 12 real property K Section 210-A.5(a)(2)(B) K 13 13 Interest from federal debt 14 Net gains from federal debt 14 15 Interest from NYS and Its political subdivisions debt . . . . 15 16 Net gains from NYS and Its political subdivisions deb' . . 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) K 19 19 Interest from asset-backed securities and other government agency debt 20 Net gains from government agency debt or asset-backed securities sold through an exchange , 20 21 Net gains from all other asset-backed securities . . . 21 Section 210-A.5(a)(2)(D) K 22 22 Interest from corporate bonds 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 117009151062 R66297 1608 171 EFTA00806578 Page 10 of 11 IT-204-CP (2015) 5O3553 3.000 Receipts from: (continued) A MOTO B New York State Everywhere Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 25 26 Section 210-A.5(a)(2)(1) 27 27 Net income from sales of physical commodities . . . Section 210-A.5(a)(2)(J) n 28 Marked to market net gains 28 Section 210-A.5(a)(2)(H) 29 29 Interest from other financial instruments 30 Net gains from other financial instruments 30a Net gains from other financial instruments (broker/dealer/exchange) 30b Other income from other financial instruments. . . 30b 30c Other income from other financial instruments (broker/dealer/exchange) 30 30a 30c Section 210-A.5(b) 31 Brokerage commissions 32 Margin interest earned on behalf of brokerage accounts • • 33 Fees for advisory services for underwriting or management of underwriting 34 Receipts from primary spread of selling concessions 35 Receipts from account maintenance fees 36 Fees for management or advisory services 37 Interest from an affiliated corporation 31 32 33 34 35 36 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards . . . 39 Service charges and fees from credit cards 40 Receipts from merchant discounts 41 Receipts from credit card authorizations and settlement processing 42 Other credit card processing recepts 38 39 40 41 42 Section 210-A.5(d) 43 Receipts from certain services to Investment companies • • 43 Section 210-A.6 44 Receipts from railroad and trucking business 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Secton 210-A.7 46 Receipts from air freight forwarding 47 Receipts from other aviation services 46 47 Section 210-A.8 48 Advertising in newspapers or periodicals 49 Advertising on television or radio 50 Advertising via other means 48 49 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52a Receipts from other services/activities not specified 52 4154225 6523442 52a 117010151002 III 11111 R66297 1608 172 EFTA00806579 5O3554 3.000 1T-204-CP (2015) Page 11 of 11 Payroll A MCTD B New York State 53 Wages and other compensation of employees except general executive officers I 53 54 Average number of individuals employed lull time in New York State (excluding employees with partnership-wide authority) 54 Gross proceeds or receipts from certain sales (for apportionment purposes) A MCTD B New York State C Everywhere 55 56 57 58 59 Sales of loans secured by real property Sales of loans not secured by real property Sales of other asset-backed securities Sales of corporate bonds Sales of physical commodities 55 56 57 58 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 61 Of loans not secured by real property 62 Of federal debt instruments 63 Of New York State and its political subdivisions debt instruments 64 Of other states and their political subdivisions debt instruments. 65 Of government agency debt or asset-backed securities (through exchange) 66 Of all other asset-backed securities 67 Of corporate bonds through licensed exchange or broker/dealer 68 Of other corporate bonds 69 Of physical commodities 70 Of other financial instruments 60 61 62 63 64 65 66 67 68 69 70 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 72 Value of borrowing agreements when partnership is securities borrower 73 Value of repurchase agreements when partnership is seller/borrower 74 Value of lending agreements when partnership is securities lender 75 Interest income from reverse repurchase agreements and securities borrowing agreements 76 Interest expense from repurchase agreements and securities lending agreements 117011151062 Holum i II IIII I II VIII I III III II 71 72 73, 74 75, 76 R66297 1608 173 EFTA00806580 NEXT MANAGEMENT, LLC 13-3495607 IT 204-CP, PAGE 7 SUPPORTING SCHEDULES PARTNER'S SHARE OF INCOME, DEDUCTIONS, ETC FEDERAL LINE 56 - OTHER DEDUCTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 32034 TOTAL OTHER DEDUCTIONS 32034 FEDERAL LINE 60 - OTHER ITEMS INVESTMENT INCOME 5552 TOTAL OTHER ITEMS 5552 STATEMENT 1 MUNI31A00 R66297 1608 174 EFTA00806581 Department of Taxation and Finance 5O3501 2000 ATE 2015 New York Corporate Partner's Schedule K-1 Tax Law - Article 9-A For calendar year 2015 or tax year beginning 151 and ending IT-204-CP Final K-1 Amended K-1 Pothers: Before completing your franchise tax return, see Form IT-204.CP-I. Partner's Instructions for Form IT-204-CP (available at monabut.ny.gov). Partnership's Information Partnership's name (as shown on Form IT-204) NEXT MANAGEMENT. I.,LC A Mark an X in the box if either applies to your entity Publicly traded partnership LI Partnership's EIN 133495607 Portfolio investment partnership B Tax shelter registration number, if any Partner's Information (see instructions) Partner's name THE 14/ LCOR GROUP. INC Partner's address 15 WATTS STREET Partners EIN 133682060 City NEW YORK C The partner is a moronxi° tht topropriare toxr State NY ZIP code 10013 Lxl General partner or LLC member-manager Ll Limited partner or other LLC member D What is the New York tax filing status of the partner? (Mark an X in the appropriate box. known.) K C corporation E S corporation E If the partner is a disregarded entity, enter the EIN of the entity reporting the income of the partner (if known) F Did the partner sell its entire interest during the tax year? F Yes K No El G Partner's share of profit. loss, and capital 1) Profit 2) Loss 3) Capital G1 G2 G3 Beginning Ending 27.0000 % 27.0000 % 27.0000 % 27.0000 % 27.0000 % 27.0000 ,fcg H Partner's share of liabilities at the end of the year 1) Nonrecourse H1 2) Qualified nonrecourse financing H2 3) Recourse H3 1 Partner's capital account analysis 1) Beginning capital account Ii 2) Capital contributed during the year - cash 12 3) Capital contributed during the year - property 13 4) Current year increase (decrease) 14 5) Withdrawals and distributions - cash 15 16 7) Ending capital account 17 8) Method of accounting (mark an X in the appropriate box) Tax basis K GAAP K Book K Other (submit explanation) 6) Withdrawals and distributions - property 117001151062 III III III 1 I~ I1111 1111111 III III 11 3945850 400983 499929 626397 810000 316326 R66297 1608 175 EFTA00806582 Page 2 of 11 rr-204-CP (2015) 5O3502 2.000 J Was Form CT-2658-E filed with the partnership" J Yes K No K NYS estimated tax paid on behalf of partner (from Form CT-2658) Date Amount 1) First installment K1 2) Second installment K2 3) Third installment K3 4) Fourth installment K4 Total NYS estimated tax paid on behalf of partner (add linos K1 through K4) Partner's share of entire net Income (ENI) information when the corporate partner's New York tax filing status is a C corporation ENI addition modifications 1 Total additions 1 A - Number B- Amount A- Number B- Amount 1a EA - Id EA - 1b EA - 1e EA - lc EA - 1f EA - ENI subtraction modifications 2 Total subtractions 2 A - Number B- Amount A- Number B- Amount 2a ES- 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Partner's proportionate part of assets and liabilities (for New York C corporate partners only) Average value 3 Total assets 4 Real property and marketable securities included on line 3 5 Real property and marketable securities at fair market value (FMV) 6 Average value of adjusted total assets 7 Total liabilities 8 Liabilities directly attributable to business capital 9 Liabilities directly attributable to investment capital 117002151062 3 4 5 6 7 8 9 R66297 1608 176 EFTA00806583 5O35D3 2.000 IT-204-CP (2015) Page 3 of 11 Partner's proportionate pad of items related to investment capital under Article 9-A (for New York C corporate partners only) Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Description of asset (Identify each asset, and enter number of shares (il applicable) and date acquired here: for each asset complete Call716S D through G on the corresponding lines below) Item A • Description of asset 8 - Number of shares acquired. if applicable C - Date acquired A B C D E F Item D Number ol shares sold, if applicable E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 10 Total columns F and G 1 10 Part 2 - Investment capital - stocks actually held more than one year Description of investment (Identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding lines below) Item A - NamefCU$IPfCINSllot number 8 - Number of shares acquired C - Date acquired A B C D E F Item D Number ol shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G I 1 1 117003151062 111 R66297 1608 177 EFTA00806584 Page 4 of 11 IT-204-CP (2015) 503504 3.000 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and dale acquired here: for each investment complete columns F and G on the corresponding lines below) Item A - NameICU$IPICINSIIot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV reported G Liabilities directly attributable H Net average FMV A B C D E F Total from additional sheet(S) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add tines TO. 21. and 12 LO columns Fend 0) 13 Part 5 - Prior year investment capital - stocks that did not meet holding period requirement Description of investment (identify each investment. and enter number of shares and date acquired here: tor each investment complete columns D through G on the corresponding lines below) Item A - NamelCU$IPICINSIIot number B - Number ol shares acquired C - Date acquired A B C D E F Item D Number of shares sold E Date sold F Average FMV as previously reported G Liabilities directly attributable as previously reported H Net average FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 III ifirl III 111 11 R66297 1608 178 EFTA00806585 103106 3.000 IT-204-CP (2015) Page 5 of 11 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Partner's share of items related to investment and other exempt income under Article 9-A (for New York C corporate partners only) 16 Gross exempt cross•article dividends 17 Gross exempt controlled foreign corporation (CFC) income 18 Gross exempt unitary corporation dividends 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 20 Dividend income from investment capital from stocks actually held more than one year 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 22 Dividend income from investment capital from stocks presumed held more than one year 16 17 18 19 -2Q 21 22 Partner's share of items related to interest deductions directly attributable to investment and other exempt income under Article 9-A (for New York C corporate partners only) 23 24 25 26 27 28 29 30 31 Interest expense per federal Form 1065, line 15 Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly Interest deductions directly attributable to income reported on line 16 attributable to income reported on line 17 attributable to income reported on line 18 attributable to income reported on line 19 attributable to income reported on line 20 attributable to income reported on line 21 attributable to income reported on line 22 attributable to business capital 23 24 25 26 27 28, 29, 30 31 Partner's share and proportionate part of items related to subtraction modification for qualified banks 32 Qualified residential loan portfolio assets 33 Gross interest income from qualifying loans 33a Gross interest income from all loans 33b Gross interest expense from all loans III 111 11 32 33 3b R66297 1608 179 EFTA00806586 Page 6 of 11 IT-204-CP (2015) 5O3506 2.000 Partner's share and proportionate part of items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34a Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 35 Adjusted basis of qualified manufacturing property 35a Number of employees employed in manufacturing in New York 34 34a 35 35a Partner's share of New York modifications (for New York S corporate partners only) 36 New York State additions Number A —Total amount 36a EA- 201 47996 36b EA- 209 29104 36c EA- 214 7342 36d EA- 36e EA- 36f EA- 37 Total addition modifications (total of column A, lines 36a through 360 L37 84442 38 New York State subtractions Number A — Total amount 38a ES- 213 17944 36b ES- 38c ES- 36d ES- 38e ES- 38f ES- 39 Total subtraction modifications (total of column A, lines 38a through 381) 39 17944 40 Additions to federal itemized deductions Letter Amount 40a 40b 40c 40d 40e 401 41 Total additions to federal itemized deductions (add lines 40a through 400 42 Subtractions from federal itemized deductions Letter Amount 42a 42b 42c 42d 42e 42f 43 Total subtractions from federal itemized deductions (add lines 42a through 420 117006151062 III Imo 41 L31 R66297 1608 180 EFTA00806587 503550 2.000 IT-204-CP (2015) Page 7 of 11 Partner's share of Income, deductions, etc. (from federal Form 1065, Schedule K-1) Partner's distributive share items 44 45 N 46 47 48 I 49 50 R 51 N 52 N 53 N 54 55 S 56 57 T 58 D 59 D 60 Ordinary business income (loss) 44 652293 et rental real estate income (loss) 45 Other net rental income (foss) 46 ivaranteed payments 47 iterest income 48 4836 Ordinary dividends 49 oyalties 50 et short-term capital gain (loss) 51 et long-term capital gain (loss) 52 et section 1231 gain (loss) 53 Other income (loss) 54 Identify: action 179 deduction 55 51622 Thar deductions (see instructions) 56 27900 Wont* SEE STATEMENT 1 ax-exempt income and nondeductible expenses (see Instructions) 57 -32010 istributions - cash and marketable securities 58 810000 'stributions - other property 59 Other items not included above that are required to be reported separately to partners 60 4836 Identity: SEE STATEMENT 1 Partner's credit information (see instructions) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Fenn CT61t. Form CT.6 Mt. or Form CT-6112L_ A — Form CT411 B — Form CT-611.1 C — Form CT4112 61 Site preparation credit component 61 62 Tangible property credit component 62 63 On-site groundwater remediation credit component 63 EZ capital tax credit (Form CT-602) 64 Recapture of credit for investments in certified EZ businesses [64 65 Recapture of credit for contributions of money to EZ community development projects 65 QEZE tax reduction credit (Form CT-604-CP) 67 QEZE zone allocation factor 6 67 66 QEZE employment increase factor 68 QEZE benefit period factor 68 Excelsior jobs program tax credit (Form CT-607) 69 Excelsior jobs tax credit component 70 Excelsior investment tax credit component 71 Excelsior research and development tax credit component 72 Excelsior real property tax credit component III i ifir I III 111 11 69 70 71 R66297 1608 181 EFTA00806588 Page 8 of 11 rr-204-CP (2015) 5O355] 2.000 Partner's credit information (continued) Farmers' school tax credit (Form CT-47) 73 Acres of qualified agricultural property 74 Acres of qualified conservation properly 75 Eligible school district property taxes paid 76 Acres of qualified agricultural property converted to nongualified use 73 74 75 76 Other flow-through credit bases and Information Credit bases Code Amount Code Amount 77a 77d 77b 77e 77c 77f Credit information Code Information Code Information 77j EMI 77k 771 Part 2 Flow-through credits, addbacks, and 78 Flow-through credits Code Amount recaptures Code Amount 78a 78e 78b 78f 78c 78g 78d 78h 79 Addbacks of credits and recaptures Code Amount Code Amount 79a 79d 79b 79e 79c 79f Part 3 START-UP NY tax elimination credit information (Form CT-638) 80 START-UP NY business certificate number (Form DIF-74) 81 Year of START-UP NY business tax benefit period 82 START-UP NY area allocation factor 80 81 82 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information Part 1 I During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (math an X in the appropriate box) . . . Yes El 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity. in the MCTD? (mark an X in the appropriate box) Yes K 117008151062 III IIII III I I III II II VIII I III III II No K No K R66297 1608 182 EFTA00806589 5O3552 3.000 IT-204-CP (2015) Page 9 of 11 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information (continued) Part 1 Average value of property A MCTD B New York State 3 Real estate owned 4 Real estate rented 5 Inventories owned 6 Tangible personal property owned 7 Tangible personal property rented 3 4 5 6 7 Part 2 Receipts from: A MCTD B New York State C Everywhere Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property . . . 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-A.5(a)(2)(A) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property D 11 1 12 Net gains from sales of loans not secured by 12 real property K Section 210-A.5(a)(2)(B) K 13 13 Interest from federal debt 14 Net gains from federal debt 14 15 Interest from NYS and Its political subdivisions debt . . . . 15 16 Net gains from NYS and Its political subdivisions deb' . . 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) K 19 19 Interest from asset-backed securities and other government agency debt 20 Net gains from government agency debt or asset-backed securities sold through an exchange , 20 21 Net gains from all other asset-backed securities . . . 21 Section 210-A.5(a)(2)(D) K 22 22 Interest from corporate bonds 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 117009151062 R66297 1608 183 EFTA00806590 Page 10 of 11 IT-204-CP (2015) 5O3553 3.000 Receipts from: (continued) A MOTO B New York State Everywhere Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 25 26 Section 210-A.5(a)(2)(1) 27 27 Net income from sales of physical commodities . . . Section 210-A.5(a)(2)(J) n 28 Marked to market net gains 28 Section 210-A.5(a)(2)(H) 29 29 Interest from other financial instruments 30 Net gains from other financial instruments 30a Net gains from other financial instruments (broker/dealer/exchange) 30b Other income from other financial instruments. . . 30b 30c Other income from other financial instruments (broker/dealer/exchange) 30 30a 30c Section 210-A.5(b) 31 Brokerage commissions 32 Margin interest earned on behalf la brokerage accounts • • 33 Fees for advisory services for underwriting or management of underwriting 34 Receipts from primary spread of selling concessions 35 Receipts from account maintenance fees 36 Fees for management or advisory services 37 Interest from an affiliated corporation 31 32 33 34 35 36 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards . . . 39 Service charges and fees from credit cards 40 Receipts from merchant discounts 41 Receipts from credit card authorizations and settlement processing 42 Other credit card processing recepts 38 39 40 41 42 Section 210-A.5(d) 43 Receipts from certain services to Investment companies • • 43 Section 210-A.6 44 Receipts from railroad and trucking business 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Secton 210-A.7 46 Receipts from air freight forwarding 47 Receipts from other aviation services 46 47 Section 210-A.8 48 Advertising in newspapers or periodicals 49 Advertising on television or radio 50 Advertising via other means 48 49 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52a Receipts from other services/activities not specified 52 3618197 5681707 52a 117010151002 III 11111 R66297 1608 184 EFTA00806591 5O3554 3.000 1T-204-CP (2015) Page 11 of 11 Payroll A MCTD B New York State 53 Wages and other compensation of employees except general executive officers I 53 54 Average number of individuals employed lull time in New York State (excluding employees with partnership-wide authority) 54 Gross proceeds or receipts from certain sales (for apportionment purposes) A MCTD B New York State C Everywhere 55 56 57 58 59 Sales of loans secured by real property Sales of loans not secured by real property Sales of other asset-backed securities Sales of corporate bonds Sales of physical commodities 55 56 57 58 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 61 Of loans not secured by real property 62 Of federal debt instruments 63 Of New York State and its political subdivisions debt instruments 64 Of other states and their political subdivisions debt instruments. 65 Of government agency debt or asset-backed securities (through exchange) 66 Of all other asset-backed securities 67 Of corporate bonds through licensed exchange or broker/dealer 68 Of other corporate bonds 69 Of physical commodities 70 Of other financial instruments 60 61 62 63 64 65 66 67 68 69 70 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 72 Value of borrowing agreements when partnership is securities borrower 73 Value of repurchase agreements when partnership is seller/borrower 74 Value of lending agreements when partnership is securities lender 75 Interest income from reverse repurchase agreements and securities borrowing agreements 76 Interest expense from repurchase agreements and securities lending agreements 117011151062 Holum i II IIII I II VIII I III III II 71 72 73, 74 75, 76 R66297 1608 185 EFTA00806592 NEXT MANAGEMENT, LLC 13-3495607 IT 204-CP, PAGE 7 SUPPORTING SCHEDULES PARTNER'S SHARE OF INCOME, DEDUCTIONS, ETC FEDERAL LINE 56 - OTHER DEDUCTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 27900 TOTAL OTHER DEDUCTIONS 27900 FEDERAL LINE 60 - OTHER ITEMS INVESTMENT INCOME 4836 TOTAL OTHER ITEMS 4836 STATEMENT 1 MUNI31A00 R66297 1608 186 EFTA00806593 F.,„, 4562 NipailmOMOttel[Poarur, Interne/ Revenue &IVO (99) Name(s) shown on return NEXT MANAGEMENT, LLC Business or activity to which this form relates Depreciation and Amortization (Including Information on Listed Property) ► Attach to your tax return. ► Information about Form 4562 and its separate instructions is at onvwdrs.gov/form4562. OMB No. 1545.0172 2015 Attachment Sequence No. 179 NEXT Part I MANAGEMENT, LLC Identifying number 1 3-3 4 9 5 6 07 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 2 Total cost of section 179 properly placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- 5 DOWN limitation ter lac year. SODIUM:Atha 4 WM line 1.1 zer0Or Len. enter ME/1,00 51115 Sapasalelv. see instructions 6 (a) Description of property (b) Cost (business use only) (c) Elected cost 1 2 3 5 00, 0 0 0 . 346,797. 2,000.000. 4 5 SEE DEPRECIATION DETAIL 191,194. 7 Listed property. Enter the amount from line 29 1 7 8 Total elected cost of section 179 property. Add amounts in column (c), nes 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line 8 10 Carryover of disallowed deduction from line 13 of your 2014 Form 4562 Business Income limitation. Enter the smaller of business income (not less than zero) or line 5 (see Instructions) Section 179 amens. deduction. Add lines 9 and 10, but do not enter more than line 11 11 12 13 Carryover of disallowed deduction to 2016. Add lines 9 and 10, less line 12 , Note: Do not use Part II or Part Ill below for listed property. Instead, use Pal V. Part II 8 9 10 5 00, 0 0 0 . 191,194. 191,194. 11 500.000. 191.194. 12 13 1 Special Depreciation Allowance and Other Depreciation (Do not include listed property) See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) 14 77,802. 15 Properly subject to section 168(1)(1) election 15 16 Other depreciation (includng ACRS) 16 24.391. Part III MACRS Depreciation (Do not include listed properly.) (See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2015 17 1 18, 805 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here .1-1 Section B - Assets Placed in Service During 2015 Tax Year Using the General Depredation System (a) Classification dproperly (b) Month and year placed in service (c) Basis for depreciation (businesarimestment use only - see insmictions) 00 Reemery naiad r — (e) Convention (I) Method (g) Depreciation deduction 19a 3-year property b 5-year property e 7-year property d 10-year properly e 15-year properly f 20-year properly g 25-year properly 25 yrs. S/L h Residential rental property 27.5 yrs. MM S/L 27.5 yrs. MM S/L i Nonresidential real property 39 yrs. MM S/L MM SIL Section C - Assets Placed in Service During 2015 Tax Year Using the Alternative De reciation System 20a Class life SIL b 12-year 12 yrs. SIL e 40-year 40 yrs. MM SIL Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 22 Total. Add amounts from line 12. lines 14 through 17. lines 19 and 20 In column (g). and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations -see instructions 22 120,998. 23 For assets shown above and placed in service during the current year. enter the portion of the basis attributable to section 263A costs 23 -ISA For Paperwork Reduction Act Notice, see separate instructions. 5)(2300 2.000 R66297 1608 Form 4562 (2015) 187 EFTA00806594 NEXT 4562 MANAGEMENT 15) , LLC For (20 13-34942i Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the businessAnvestment use claimed?I I Yes I I No 124b if "Yes,* is the evidence written? I I Yes I I No (a) Type d propeny fret vehicles first) (b) Date placed service (c) Business/ investment use percentage (r4 Cost or ether barn (e) Basis tordepredalios use only) (0 0Recovery necovelY period (0) Method? Convention 01) Depreciation deduction (0 Elected scam 179 Dom 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) 25 26 Property used more than 50% in a qualified business use: qi % 27 Property used 50% or less in a qualified business use: S/L • rS/1J SiL • 28 Add amounts in co umn (h), lines 25 hrough 27. Enter here and on line 21, page 1 128 29 Add amounts in co umn (i), line 26. Enter here and on line 7, page 1 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor. partner, or other "more than 5% owner." or related person. If you p melded vehicles to your employees, first answer the questions in Section C to see it you meet an exception to completing this section for those vehicles. 30 Total business/investment miles driven during the year (do not include commuting miles), , , 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year. Add lines 30 through 32 34 Was the vehicle available for personal use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36 Is another vehicle available for personal use? (a) Vehicle 1 04 Vehicle 2 (c) Vehicle 3 (d) Vehicle 4 (e) Vehicle 5 (0 Vehicle 6 Yes No Yes No Yes No Yes No Yes No Yes No l Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). 29 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," do not complete Section B for the covered vehicles. Part VI Yes No Amortization (0) (a) (h) Date amortization (0) (d) Amortization (I) Description of costs begins Amortizable amount Code section period or percentage Amortization for this year 42 Amortization of costs that begins during your 2015 tax ear (see instructions): ORGANIZATION COSTS [ 06/15/2015 15,790. 709 15.000 614. 43 Amortization of costs that began before your 2015 tax year 44 Total. Add amounts in column (f). See the instructions for where to report 43 200,000. 44 200,614. JSA 5%2310 2.000 R66297 1608 Form 4562 (2015) 188 EFTA00806595 SCHEDULE M-3 (Form 1065) DCD4 nm Cft of tnc PO.rAir, Internal Revenue Santee Net Income (Loss) Reconciliation for Certain Partnerships We Attach to Form 1065 or Form 1065-B. ie. Information about Schedule M-3 (Form 1065) and its instructions is at wwwirs.gov. lorm1065. OMB No. 1545.0123 2015 Name ol partnership Employer identification number NEXT MANAGEMENT, LLC 13-3495607 This Schedule M-3 is being filed because (check all that apply): A X The amount of the partnership's total assets at the end of the tax year is equal to $10 million or more. j. The amount of the partnership's adjusted total assets for the tax year is equal to $10 million or more. If box B is checked, enter the amount of adjusted total assets for the tax year 19,760,866. . C K The amount of total receipts for the tax year is equal to $35 million or more. If box C is checked, enter the total receipts for the tax year D K An entity that is a reportable entity partner with respect to the partnership owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss, on any day during the tax year of the partnership. Name of Reportable Entity Partner Identifying Number Maximum Percentage Owned or Deemed Owned aE Voluntary Filer. la Did the partnership file SEC Form 10-K for its income statement period ending with or within this tax year? Yes. Skip lines 1 b and lc and complete lines 2 through 11 with respect to that SEC Form 10-K. No. Go to line lb. See instructions if multiple non-tax-basis income statements are prepared. b Did the partnership prepare a certified audited non-tax-basis income statement for that period? E Yes. Skip line lc and complete lines 2 through 11 with respect to that income statement. No. Go to line lc. c Did the partnership prepare a non-tax-basis income statement for that period? Yes. Complete lines 2 through 11 with respect to that income statement. No. Skip lines 2 through 3b and enter the partnership's net income (loss) per its books and records on line 4a. 2 Enter the income statement period: Beginning 01/01/2015 Ending12/31/2015 3a Has the partnership's income statement been restated for the income statement period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. N Financial Information and Net Income (Loss) Reconciliation b Has the partnership's income statement been restated for any of the live income statement periods immediately preceding the period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. 4a Wo b Indicate ldwide consolidated net income (loss) from income statement source identified in Part I, line 1 accounting standard used for line 4a (see instructions): 4a 2,319,987. I X GAAP 2 IFRS 3 D 704(b) 4 Tax-basis 5 Other: (Specify) IP. 5a Net __ _ income from nonincludible foreign entities (attach statement) 5a ( b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) 5b 6a Net income from nonincludible U.S. entities (attach statement) 6a ( b Net loss from nonincludible U.S. entities (attach statement and enter as a positive amount) 6b 7a Net income (loss) of other foreign disregarded entities (attach statement) 7a b Net income (loss) of other U.S. disregarded entities (attach statement) 7b 8 Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach statement) 8 9 Adjustment to reconcile income statement period to tax year (attach statement) 9 10 Other adjustments to reconcile to amount on line 11 (attach statement) 10 11 Net income (loss) per income statement of the partnership. Combine lines 4a through 10. . . . 11 2,319,987 . Note: Part I, line 11, must equal Part II, line 26, column (a) or Schedule M-1, line 1 (see instructions) 12 Enter the total amount (not just the partnership's share) of the assets and liabilities ol all entitles included or removed on the following lines: a Included on Part I, line 4 b Removed on Part I. fine 5 c Removed on Part I. line 6 d Included on Part I, line 7 Total Assets 16,760,866. Total Liabilities 15,589,295. dye, For Paperwork Reduction Act Notice, see the Instructions for your return. SP 1042 2.000 R66297 1608 S chedule 14-3 (Form 1065) 2015 189 EFTA00806596 Schedule M4 (Form 1065) 2015 Page 2 Name of parinershp Part II Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Reconciliation of Net Income (Loss) per Income Statement of Partnership With Income (Loss) per Return Income (Lose) Items IMEICh statements sar lines 1 through lot I income (loss) Iron Equityn*3mM lotsin mmormms 2 Gross toreegn &Mends ner progeny taxed 3 enapan F. OEF. ans ~MI (101(111~.16 . . 4 Gross foreign Sikhism: pnwsisty taxed s mama (bid) 110. stay Weed US. common 6 U.S. diedends 7 Income (loss' tram U.S. panncaraT. a 9 Income (loss) tram Imago panne/slaps . 9 Income (loss, from ena aossInco9h enlikes 10 items relating to repcdable trenteCOM5 . 11 Intetest frame (me insituctonal 12 Total acobal le <WM letbueMent 13 Hedging tnms833717 14 mark.s.market income (las) Is Cost ol goads sold (see insaucitynt . . 16 Sale moue lease 1101 seers area lessen) . 17 Section 481(a) alumnus 18 Unearnedkieterted revenue 19 Income recognrticn (ran bog-term tornats 20 Original :sue discount and NW imputed MUMS 21e Income statement ceinoloss on sale exchange. Mean:lamb:M. worthlessness or other mammon at assets other than Inventory and pass-through entities. . . . b Goss capital gains (rom Schedule Q =sa. ding amours from pasethrough entities . . o Goss caplet tosses from Schedule D. echidna amounts horn 00354hrOUgh entities. abandament loses, and wont: stock losses d Nol gan/loss reponed on Form 4797. Inc! I?. exdudrg amounts from pass.through entities. abandCOMMI I04403. and wathleSs sleek 10544$ e Abandonment lasses 1 Worthless stock losses (Mach statement'. . 9 Other gan/loss m aspeolson of assns other than inventory 22 Other income goes) dens with ChllegenCe5 lalleCh Illelealmt) 23 Total Income (loss) Items. Combine Ines I through 22 24 Total exponsadeductIon Hems. Morn PM IC me 31) lam nstmclons) 21 Other gems with no dritemnaSIMT. 2 26 Raoseseelan sawn. Corium iron 23 mom 25 (a) Income (Loss) per Income Statement (b) Temporary Difference (c) Permanent Difference CO Income (Loss) per Tax Return 298,055. 5,160. -59.919. 243,296. 17,910. 17.910. ( ) ( ) 315.965. 5.160. -59.919. 261.206. -12,859.017. -216,737. 90,792. —12.984,962. 14.863.039. 14,863,039. 2,319.987. -211,577. 30,873. 2,139,283. Note: Line 26, column (a), must equal Part I, line 11, and column (d) must equal Form 1065, Analysis of Net Income (Loss). line 1. Schedule h1-3 (Form 1065) 2015 JSA 5P1043 2.000 R66297 1608 190 EFTA00806597 Schedule M-3 (Form 1065) 2015 Page 3 Name of partnershp Part III Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Reconciliation of Net Income (Loss) per Income Statement of Partnership With income (Loss) per Return - Expense/Deduction items Expense/Deduction Items I Slate and kcal current income lax expense 2 Slate and kcal deterred ncome tax eipense 3 Foreign current mane lax expense (other than foreign wthhedag taxes) 0 Foreign deterred income lax expense S Equity based compensation 6 lAeals and ertenaninall 7 Fines and penalties 0 .lioamarn. eamigas. iminte. are ants mm 9 Guaranteed payments 10 Pension and peafesharing II Other postmlirement benefits 12 Deferred compensate. 13 Charitable conabution at cash and tangible property 10 Charitable conInbuton et intsigible properly II Organizational eoponses as per Regulations section 1.709-2(al II Syndication *incises as per Regulations section 1.709•2gol 17 Current year acquisitionheaganization investment barildro lees II Current year acquisitionseceganixaban legal and accounting lees 19 Amortization:impairment et goodail . . 20 Amortization el acquisition. reorganization and 'leavecosts 21 Other amorfization et impainnall amto.cels 22 Reserved 23a Decimal • 04 & Gas b Depletion - Other than On & Gas 24 Intangible biting 6 development costs . 25 Doprociatian 26 Sad debt exprise 2/ Interest expense (see munitions, . . . 29 Purchase versus lease (la purchasers and a lessees) 29 Research and development costs 30 Other capon sededucbcn items web differences (sten staterront)STMT 3 31 TOY 019.14.11411allon Mat cosier. tries t vireo It Caw Sr. and on Rut i. Ito 24. 14,313((ipassia accounts as meats es regatta arna.0111.16p01/0” (a) Expense per Income Statement Ot) Temporary Difference (c) Pemunen1 Difference (d) Deduction per Tax Return 155,391. 155,391. 4.000. -4.000. 181,584. -90,792. 90,792. 98,175. 98,175. 20,790. 179.824. 200.614. 159,326. 152,866. 312,192. 8,131. 8,131. 12.231.620. -111,953. 12.119.667. 12.859.017. 216.737. -90.792. 12,984,962. Schedule M-3 (Form 1065) 2015 35.a 5P1044 2.000 R66297 1608 191 EFTA00806598 OMB No. 1545-0123 Form 8916-A Department of the Treasury Internal Revenue Service Name ol common parent Supplemental Attachment to Schedule M-3 ► Attach to Schedule M-3 for Form 1065. 1120, 1120-L. 1120-PC. or 1120S. ► Information about Form 8916-A and its instructions is at knnvirs.gotelorrn1120. 2015 NEXT MANAGEMENT, LLC Name ol subsidiary Employer Identification number 13-3495607 Employer Identification number Part I Cost of Goods Sold Cost of Gads Sold Items 1 Amounts attributable to cost flow assumptions 2 Amounts attributable to: a Stock option expense b Other equity based compensation e Meals and entertainment d Parachute payments e Compensation with section 162(m) limitation I Pension and profit sharing, g Other post-retirement benefits h Deferred compensation I Reserved j Amortization k Depletion I Depreciation m Corporate owned life insurance premiums n Other section 263A costs 3 Inventory shrinkage accruals, 4 Excess inventory and obsolescence reserves 5 Lower of cost or market write- downs 6 Other Items with differences (attach statement) 7 Other items with no differences 8 Total cost of goods sold. Add lines 1 through 7 in columns a, b. c. and d. Enter totals on the applicable Schedule M-3. See instructions For Paperwork Reduction Act Notice. see instructions. Form 8916-A (2015) (a) Expense per Income Statement (b) Temporary Difference (e) Permanent Difference Off Deduction per Tax Return J SA SX9035 2.000 R66297 1608 192 EFTA00806599 Form 8916-A (20t5) NEXT MANAGEMENT, LLC 13-3495607 Noe 2 Part II Interest Income Interest Income Item 1 Tax-exempt interest income Interest income from hybrid securities 2 3 Sale/lease interest income 4a Intercompany interest Income - From outside tax affiliated group Intercompany interest Income - From tax affiliated group 5 Other Interest income 6 Total interest income. Add lines 1 through 5 in columns a, b, c, and d. Enter total on the applicable Schedule M-3. See instructions. Part (a) Income (Loss) per Income Statement (b) Temporary Difference (c) Permanent Difference 17,910. 17.910. (d) Income (Loss) per Tax Return 17,910. 17.910. Interest Expense Interest Expense Item 1 2 3a Interest expense from hybrid securities Leasetpurchase interest expense Intercompany interest expense - Pad to outside tax affiliated group Intercompany interest expense - Paid to tax affiliated group 3b 4 Other Interest expense 5 Total interest expense. Add lines 1 through 4 in columns a, b, c. and d. Enter total on the applicable Schedule M-3. See instructions. (a) Expense per Income Statement (b) Temporary Difference (c) Permanent Difference (d) Deduction per Tax Return Form 8916-A (2015) 529036 2.000 R66297 1608 193 EFTA00806600 NEXT MANAGEMENT, :.LC 11-340607 SCHEDULE M-3, PART II DETAIL LINE 7 - INCOME (LOSS) FROM U.S. PARTNERSHIPS EAT EAT PROFIT-SHARING LOSS-SHARING INCOME (LOSS) TEMPORARY PERMANENT NAME EIN PERCENTAGE PERCENTAGE PER ENCORE 571a DIFFERENCE DIFFERENCE TWO TWELVE MANAGEMENT LLC INCOME (LOSS( PER TAW RETURN 20-1354409 80.000 80.000 298,055. 3,164. -59,919. 243,296. TOTAL 290,055. 5,160. -59,919. 243,296. R66297 1608 STATEMENT 194 EFTA00806601 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART II DETAIL LINE 25 - OTHER INCOME (LOSS) AND EXPENSE/DEDUCTION ITEMS WITH NO DIFFERENCES GROSS RECEIPTS 20,059,894. OPERATING EXPENSES -5,196,855. TOTAL 14,863,039. STATEMENT 2 R66297 1608 195 EFTA00806602 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART III DETAIL LINE 30 - OTHER EXPENSE/DEDUCTION ITEMS WITH DIFFERENCES EXPENSE TEMPORARY PERMANENT DEDUCTION DESCRIPTION PER INCOME STMT DIFFERENCE DIFFERENCE PER TAX RETURN RENTAL EXPENSE - STRAIGHTLINING OF LEASE 815,962. -66,152. 749,810. SALARIES 11,415,658. -50,801. 11,364,857. ORGANIZATION COSTS 5,000. 5,000. TOTAL 12,231,620. -111,953. 12,119,667. R66297 1608 196 STATEMENT 3 EFTA00806603 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for payment of New York City Estimated Unincorporated Business Tax Form NYC-5UB The appropriate voucher should accompany each payment as follows: Voucher On or Before 1 April 18.2016 2 June 15. 2016 3 September 15, 2016 4 January 16, 2017 Overpayment of 2015 income tax credited against 2016 tax Total estimate of 2016 income tax Amount $20,200 $20,200 $90,148 $130,548 Each voucher, together with your check or money order payable to NYC Department of Finance, should be filed with: NYC Department of Finance P.O. Box 3923 New York, NY 10008.3923 To document the timely filing of your tax return(s), we suggest that you obtain and retain proof of mailing. Proof of mailing can be accomplished by sending the tax retum(s) by registered or certified mail (metered by the U.S. Postal Service) or through the use of an IRS approved delivery method provided by an IRS designated private delivery service. EFTA00806604 Dentlirmololirume NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name NEXT MANAGEMENT, LLC In Care of 2016 Name rt Changel__J Business address (number and street) 15 WATTS STREET City and State NEW YORK, NY Business Telephone Number hp Code 10013 Taxpayers Email Address Addressn Charge Country (if not US) Employer Identification Number 13-3495607 %OBES Code Mate( as per Federal Rehm) 812 990 A. Payment Amount included with form - Make payable to: NYC Department of Finance. . A. Payment Amain 1. Estimate of 2016 tax 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OF FINANCE) 2. 130,514. Signature of taxpayel: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3.400 or less. Your credo is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is Mowed. Enter Tr. Tax on line 4 is over $3.400 but less than 55.400, use formula for credit amount: Tax an line 4 x ($5,400 minus tax on line 4) 5b. O her credits (see instrucliont2).0O0 5c. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 5a. 5b. 7a. Partnership's 2015 COMPUTATION OF Un ncaporated Songless Tax 73.1 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see mow:dons. 8. Thhts declaration I April 18, 2016. enter 1/4 of line 7b Sept. 15, 2016. enter 1/2 of line lb• • • • is&s on: June 15. 2016. enter 1/3 of line 7b _ Jan. 15. 2017. enter amount of line 7h . . 18. 32,630. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a croon against 2016 estimated tax 9. 22,537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: !WCDEPARTMENT OF FINANCE) . . . . 10. Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, drawn on a U.S. bank. MAILING INSTRUCTIONS MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE UNINCORPORATED BUSINESS TAX P. O. BOX 3923 NEW YO • NY 10008-3923 503650 2.000 R66297 1606 198 EFTA00806605 Dentlirmololirume NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name NEXT MANAGEMENT, LLC In Care of 2016 Name rt Changel__J Business address (number and street) 15 WATTS STREET City and State NEW YORK, NY Business Telephone Number hp Code 10013 Taxpayers Email Address Addressn Charge Country (if not US) Employer Identification Number 13-3495607 %OBES Code Mate( as per Federal Rehm) 812990 A. Payment Amount included with form - Make payable to: NYC Department of Finance. . A. Payment Amain 1. Estimate of 2016 tax 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OF FINANCE) 2. 130,514. Signature of taxpayel: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3.400 or less. Your credo is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is Mowed. Enter Tr. Tax on line 4 is over $3.400 but less than 55.400, use formula for credit amount: Tax on line 4 x ($5,400 minus tax on line 4) 5b. O her credits (see instrucliont2/0O0 5c. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 5a. 5b. 7a. Partnership's 2015 Un nouporated Songless Tax 73.1 130,319. I7b. Estimate of 2016 tax from line 6. 7b. COMPUTATION OF INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see instructions. 8. HMIs declaration April 18, 2016. enter 1/4 of line 7b _ Sept. 15, 2016. enter 1/2 of line lb• • • • heron: ...X.. June 15.2016. enter 1/3 of line 7b Jan. 15.2017. enter amount of line 7b . . } 8. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a credo against 2016 estimated tax 9. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: NYC DEPARTMENT OF FINANCE) . . . . 10. Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, drawn on a U.S. bank. 130,514. 32,630. 22, 537. MAILING INSTRUCTIONS MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE UNINCORPORATED BUSINESS TAX P. O. BOX 3923 NEW YO • NY 10008-3923 503650 2.000 R66297 1606 199 EFTA00806606 Mmultmolairume NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX For CALENDAR YEAR 2016 or FISCAL YEAR beginning Business name NEXT MANAGEMENT, LLC In Care of and ending 2016 Name rt Changel__J Business address (number and street) 15 WATTS STREET City and State NEW YORK, NY Business Telephone Number hp Code 10013 Taxpayers Email Address Addressn Change Country (if not US) Employer Identification Number 13-3495607 Signets Code Weber as per Federal Refute 812990 Panel Amount A. Payment Amount included with form - Make payable to: NYC Department of Finance A. 20,200. 1. Estimate of 2016 tax 1. 130,514. 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OF FINANCE) 2. 20,200. Signature of taxpayer: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3A00 or less. Your credit is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is mowed. Enter Tr. Tax on line 4 is over $3.400 but less than $5.400, use formula for credit amount: Tax on line I x ($5,400 minus tax on line 4) 5b. O her credits (see instrucliont2/0O0 5c. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 5a. 5b. 7a. Partnership's 2015 COMPUTATION OF Un INSTALLMENT ncaporated Songless Tax 78.I 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see mow:dons. 8. dthis declaration heron: on: , April 18, 2016. enter 1/4 of line 7b June 15. 2016. enter 1/3 of line 7b I. Sept. 15, 2016. enter 1/2 of line lb• • • • Jan. 15. 2017. enter amount of line 7b . . 18. 32,630. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a credo against 2016 estimated tax 9. 22,537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: NYC DEPARTMENT OF FINANCE) . . . . 10. 20,200. Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, drawn on a U.S. bank. MAILING INSTRUCTIONS MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE UNINCORPORATED BUSINESS TAX P. O. BOX 3923 NEW YO • NY 10008-3923 a 5036502.a* R66297 1606 200 EFTA00806607 Depatagololirume NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name NEXT MANAGEMENT, LLC In Care of 2016 Name rt Changel__J Business address (number and street) 15 WATTS STREET City and Sumo NEW YORK, NY Business Telephone Number hp Code 10013 Taxpayers Email Address Addressn Charge Country (if not US) Employer Identification Number 13-3495607 %Men Cede MAMA as Mt Fennel Return 812990 Pummel Amount A. Payment Amount included with form - Make payable to: NYC Department of Finance A. 20,200. 1. Estimate of 2016 tax 1. 130,514. 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OF FINANCE) 2. 20,200. Signature of taxpayel: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3A00 or less. Your credo is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is Mowed. Enter Tr. Tax on line 4 is over $3.400 but less than $5.400, use formula for credit amount: Tax on line 4 x ($5,400 minus tax on line 4) 5b. O her credits (see instrucliont2).0O0 Sc. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 5a. 5b. 7a. Partnership's 2015 Un ncaporated Songless Tax 73.1 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. COMPUTATION OF INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see mow:dons. 8. dthis declaration heron: , April 18, 2016. enter 1/4 of line 7b June 15. 2016. enter 1/3 of line 7b Sept. 15, 2016. enter 1/2 of line lb• • • • Jan. 15.2017. enter amount of line 7h . . 18. 32,630. _X_ 9. Enter amount of overpayment on 2015 return which you elected to have applied as a credo against 2016 estimated tax 9. 22,537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: !WCDEPARTMENT OF FINANCE) 10. 20,200. Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, drawn on a U.S. bank. MAILING INSTRUCTIONS MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE UNINCORPORATED BUSINESS TAX P. O. BOX 3923 NEW YO • NY 10008-3923 a 5036502.000 R66297 1606 201 EFTA00806608 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form NYC-579-UBTP 2015 Signature Authorization for E-filed UBT Return for the year ended December 31. 2015 The original form should be signed (use full name) and dated by an authorized partner. The signed form should be returned on or before October 17, 2016 via: Email (preferred method) efileipherdonUp com Fax 212.699.8832 Mail Berdon LLP Attn: Tax Control 360 Madison Avenue, 6th Floor New York, NY 10017 We must receive your signed Form NYC-579-UBTP before we can electronically transmit your return. The return shows a $90,148 overpayment. Of this amount, $90,148 will be applied to your 2016 estimated tax. DO NOT separately file your tax return with the state. Doing so will delay the processing of your return. The state will notify us when your return is accepted. Your return is not considered filed until the state confirms their acceptance. which may occur after the due date of your return. EFTA00806609 NYC --- NYC 579-UBTP NEW YORK CITY DEPARTMENT OF FINANCE 2015 Signature Authorization for E-Filed Unincorporated Business Tax Return for Partnerships ELECTRONIC RETURN ORIGINATORS LEGAL NAME OF PARTNERSHIP: NEXT MANAGEMENT, LLC EMAIL ADDRESS: ERO): DO NOT MAIL THIS FORM TO THE DEPARTMENT OF FINANCE. KEEP THIS FOR YOUR RECORDS. EMPLOYER IDENTIFICATION NUMBER 13-3495637 TYPE OF FORM: NYC-EXT H NYC-5UB NYC-204 NYC-204EZ Financial Institution Information - must be Included it electronic payment Is authorized AMOUNT OF AUTHORIZED DEBIT: FINANCIAL INSTITUTION ROUTING NUMBER: FINANCIAL INSTITUTION ACCOUNT NUMBER: Part A - Declaration and authorization of Partner or limited liability company member manager Under penalty of perjury. I declare that I am the general partner or limited liability company manager of the taxpayer and that I have examned the information on its 2015 New York City electronically filed Unincorporated Business Tax return. including any accompanying schedules. attachments and statements or other report and to the best of my know- edge and belief. the electronically filed document is true. correct and complete. The ERO has my consent to send the 2015 New York City electron leafy filed Unincorporated Business Tax return or other report checked above to the New York City Department of Finance through the Internal Revenue Service. I authorize the ERO to enter my PIN as my signature on the 2015 New York City electronically filed Unincorporated Easiness Tax return or other report. as indicated above &twill enter my PIN as my signature on the document indicated above. If I am paying the New York City Unincorporated Business Tax owed by electronic funds withdrawal. I authorize the New York City De- partmereof Finance and its designated financial agents to initiatean electronic fundswithdrawal from the financial institution account indicated on the Partnership's electronically filed the Unincorporated Business Tax return or other report. and I authorize the financial institution to debt the amount from that account. E I authorize BERDON LLP to enter my PIN • ERO FIRM NAME as my signature on the electronically filed 2015 Unincorporated Business Tax return or other report, as incricated above K As a general partner or limited liability company member manager. I will enter my PIN as my signature on the electronically filed 2015 Unincorpo- rated Business Tax return or other report, as indicated above. PRES OF MEMBER-MGR Signature of General Partner or Limited Liability Company Member Manager Official title 26689 Date Part B - Declaration of electronic return originator (ERO) and paid preparer Under penalty of perjury. I declare that the information contained in the above-named pannership's or limited liability company's 2015 New York City electronically tiled Unincorporated Business Tax return or other report. as indicated above. is the information furnished to me by the taxpayer. If the taxpayer furnished me with a completed 2015 New York City paper Unincorporated Business Tax return or other report signed by a paid preparer. I declare that the information contained in the electronically filed Unincorporated Business Tax return or other report is identical to that contained in the paper return. If I am the paid preparer. under penalty of perjury I declare that I have examined this electronically filed 2015 Unincorporated Goalless Tax Return or other report. and to the best of my knowledge and belief. the return or other report is true. correct and complete. I have based this declaration on all the information available to me. ERO EFINIPIN: Enter your six-digit EFIN followed by your live digit PIN. ERO's Signature Paid Preparers Signature MARC YATKOWSKY Print Name 26377413048 MARC YATKOWSKY Print Name Date Date PURPOSE - A completed Form NYC-579-UBTP provides documental on that an ERO has been authorized to electronically file an Unincorporated Business Tax Return or other report foe a taxpayer. The general partner or limited liability company manager of the taxpayer may designate the ERO to electronically sign the return or report by entering the personal identification number (PIN). The torn also authorizes payment of tax due on an electronically submitted return or report by an automatic clearing house (ACH) debit from a designated checking or saving account of the partnership. You cannot revoke this authorization. GENERAL INSTRUCTIONS Part A- Part A must be completed by the general partner or limited liability company manager of the taxpayer before the ERO transmits the electronically filed Form NYC-204 (Unincorporated Rosiness Tax Return for Parinershps. including Limited Liability Companies): NYC-204E2 (Unincorporated Business Tax Return for Partnerships. includng Limted Liability Companies EZ Form): NYC-EXT (Application for 6-Month Extension to File Business Income Tax Return): or NYC-5(1B (Declaration of Estimated Unincorporated Business Tax for Partnerships). EROsipald preparers must complete Part 8 prior to transmitting electronically filed unincorporated business tax returns or reports (Forms NYC-204. NYC-204E2. NYC- EXT or NYC-SUB). Both the paid tamperer and the ERO are required to sign Part B. However. II an indivolual performs as both the pad preparer and the ERO. he or she is only required to sign as the paid preparer. Ito not necessary to include the ERO signature in this case. Do not mail Form NYC-579-UBTP to the Department of France. The EROsrpaid preparers must keep the completed Form NYC-579.UBTP for three years from the due dale of the return or report or the date the return or report was filed. whichever is later. and must present it to the Department of Finance upon request. 5O3653 t. 000 R66297 1608 NYC-579.UBTP 2015 197 EFTA00806610 NYC-204 y Single member Lles using SSN as their primary identifier must use Form NYC-202 UNINCORPORATED BUSINESS TAX RETURN 2015 FOR PARTNERSHIPS (INCLUDING LIMITED LIABILITY COMPANIES) For CALENDAR YEAR 20150r FISCAL YEAR begillelkl Name NEXT MANAGEMENT, LLC In Cared Name Change Address (number and SIMI) 15 WATTS STREET City and Stale NEW YORK, NY Business Telephone Nurnbct Zp Code 10013 Address Criange County fil net US) Date bosoms began n NYC 01-04-89 Date tosness ended in NYC Entity Type: general pa - Amended return 2015, end ending TAXPAYERS EWUL ADDRESS Elkes1.0YER IDENTIFICATION NUNGER 13-3495607 BUSNESS CODE NUMBER AS PER FEDERAL RETURN 812990 ip registered lensed fabldy partn limited partners,* II tee purpose of tee amended return ts to report a lecleial or ONO Change. check the aPPICOMN box - Final return • ceased eperabons - Engaged in a fullyexempt unincorpaoted business suety - Claim any 9I11,01.related federal lax benefits (see IOSONCIIVISI limited habely company - IRS change Date cd Final — NTS dung° Determination Federal Return filed: X 1060 10604 - Engaged in a partiallyexempt unincorporated busmocs =tray Enter 2.charaMm special condition code. if apphcable (see instructions) SCHEDULE A Computation of Tax A. Payment 1. 2. 3a. 3b. 4. BEON wmiSCH5XIIE BON FADE 3. COMPLETE ALL OTHER SCIEDULES. TRANSFERAPPLICABLE PA1OUNTS TO SCHEDULE A Payment Awoke Amount being paid electronically with this return A. Business income (from page 3. Schedule B, 31) 1. Business allocation percentage from Schedule E. line 5. (if not allocating, enter 100%) 2. If line 2 is less than 100%. enter income or loss on NYC real property (see instructions) 3a. Enter allocated business income, or subtract business loss, from other partnerships (see instructions). 3b. Balance (line 1 less line 3a) 4. 5. Multiply line 4 by the business allocation percentage from line 2 5. 6. Total of lines 3a and 3b. (see instructions) 6. 7a. Investment income (from page 3. Schedule B, hne 30) 7a. 7b. Add allocated investment income, or subtract investment loss. from other partnerships (see ins(t) 7b. 8. Investment allocation percentage (TAP) (from page 4. Schedule D. line 2) 9. Multiply line 7a by the IAP from line 8. Add the amount on hne 7b. (see instructions) 5,512,248. 65.79 % 8 5,512,248. 3,626,508. 10. Total before NOL deduction (See instructions) 11. Deduct NYC net operating loss deduction (from Form NYCNOLD-UBTP. hne 11) (see instructions) 12. Balance before allowance for active partners' services (line 10 less line 11) 13. Less: allowance for active partners' services (it line 12 is a loss. enter "0') (see instructions) Number of active partners claimed 14. Balance before specilic exemption (line 12 less line 13) 15. Less: specific exemption (see instructions and attach schedule) (if line 12 is a loss, enter '0") 16. Taxable income (line 14 less line 15) 17. Tax before business tax credit (4% of amount on line 16) 18. Less: business tax credit (select the applicable credit condition from the sch. on page 2 and enter amount) (see instructions) 18. 19. Total tax before Unincorporated Business Tax paid credit (line 17 less line 18) (see instructions) 19. 20. Less: Ur Paid Credit (from Schedule A. line 3 of attached Form NYC-114.7) (see instructions) 20. 21. UNINCORPORATED BUSINESS TAY (line 19 less line 20) (If the balance is less than '0% enter "0) (see kW.) 21. • 3 9. 10. 11. 12. 13. 14. 15. 16. 17. 3,626,508. 3,626,508. 30,000. 3,596,508. 5,000. 3,591,508. 143,660. 143,660. 13,341. 130,319. 60411510 TIM RETURN MUST BE SIGNED, (SEE PAGE 6 FOR SIGNATURE BOX AND MAILING INSTRUCTIONS) NYC-204 • EMS 10 S036611.000 EFTA00806611 Form NYC-204 -2015 Page 2 Name NEXT MANAGEMENT, LLC EMI 13-3495607 SCHEDULE A Computation of Tax - Continued 22a. Credits from Form NYC-114.5 (attach form) (see instructions) 22a. 22b. Credits from Form NYC-114.6 (attach form) (see instructions) 22b. 22e. Credits from Form NYC•114.8 (attach form) (see instructions) 220. 22d. Credits from Form NYC-114.10 (attach form) (see instructions) 22d. 23. Net tax alter credits (line 21 less sum of lines 22a, 22b. 22c and 22d) 24. Payment of estimated tax. including credit from preceding year and payment with e NYC-EXT (see irlSfr.) 25. II line 23 is larger than line 24. enter balance due 28. II line 23 is smaller than line 24. enter overpayment 27a. Interest (see instructions) 27a. 27b. Additional charges (see instructions) 27b. 27e. 27e. Penally for underpayment of estimated tax (attach Form NYC-221) 28. Total of lines 27a. 27b aid 27c 29. Net overpayment (line 26 less line 28) (see instructions) 30. Amount of line 29 to be: (a) Refunded • Direct deposit - fill out line 30c OR Paper check (b) Credited to 2016 estimated taxon Form NYC•5UB 30e RotAbig Ammo. NwOw NwOw 31. TOTAL REMITTANCE DUE (see instructions) 32. NYC rent deducted on lederal tax return or NYC rent from Schedule E. Part 1. (THIS LINE MUST BE COMPLETED) 33. Gross receipts or sales from federal return 34. Total assets from federal return. Business Tax Credit Computation I 130,319. elision, 23. 24. 2 20, 4 67. 25. 28 90, 1 4 8. 28. 29. 90, 1 4 8. 30a. 30b. 90, 1 4 8. ACCOUNT TYPE Chocking — Sings_ 31. 32. 596,104. 33. 20,059,894. 34. 16, 760, 866. 1. II the amount on page 1, line 17, is $3.400 or less, your credit on line 18 is the entire amount of tax on line 17. (NO TAX WILL BE DUE) 2. II the amount on page 1, line 17, is $5.400 or over. no credit is allowed. Enter '0" on line 18. 3. II the amount on page 1, line 17, is over $3.400 but less than $5.400. your credit is computed by the following formula: tax on page 1. line 17X (0,400 minus tax on line 17 ) _ = your credit $2,000 Payments of Estimated Tax Computation PREPAYMENTS CLAIMED ON SCHEDULE A, UNE 24 DATE AMOUNT A. Payment with declaration. Form NYC-5UB (1) B. Payment with Notice of Estimated Tax Due (2) , , , , C. Payment with Notice of Estimated Tax Due (3) . . . . D. Payment with Notice of Estimated Tax Due (4) , , , , E Payment with (Mansion. Form NYC-EXT F. Overpayment credited from practicing year a TOTAL of A through F. (Enter on Schedule A. Ine 24) . 06-18 —15 25,000. 09-01 -15 86,250. 01-15 —16 28,750. 04-14 —16 40, 000. 40, 4 67. 22 0, 4 67. 60421510 S038651.000 10 EFTA00806612 Form NYC-204 -2015 Page 3 Name NEXT MANAGEMENT, LLC EIN 13-3495607 SCHEDULE B Computation of Total Income Part 1 Items of income, gain, loss or deduction 1. Ordinary income (loss) from federal Form 1065, line 22 or 1065-B, Pad I, line 25 (see instr.) 1. 2,415,902. 2. Net income (loss) from all rental real estate activity not included in Form 1065, line 22 or 1065-B, Part I, line 25 but included on federal Schedule K 2. 3. All portfolio income such as interest. dividends. royalties, annuity income and gain (lose) on the disposition of prcpeny not Included In Form 1065. line 22 or 1065.8. Part I. Ine 25. but included on lederal Sch. K (attach sch. of ell port loNc. income). 3. 17,910. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 5. Payments to current and retired partners Included in other deductions from federal Form 1065. line 20 or 1065.8. Part I. line 23 5. 6. Other income not included in Form 1065. line 22 or 1065-B. Part I. line 25. but included on federal Sch. K wpm ech co otter inxmo 6. 7. Charitable contributions from federal Schedule K 7. 103,335. 8. °Met deductions included in Form 1065. fine 22 cr 10654. Peril. Me 25 end Pal Me 13. but nol allowed Ice VDT rettecneched) pee Mst) . 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) SEE STATEMENT 1 9. -191,194. 10. Total federal income (combine lines 1 through 9, do not include line 7) 10. 2,242,618. 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property situated outside NYC if included in line 10 above (attach schedule) (see instructions) 11. 12. Total income before New York City modifications (combine line 10 and line 11) 12. 2,242,618. Part 2 New York City modifications (see instructions for Schedule a part 2) ADDITIONS ON OR SSN 13. All Income taxes and Unincorporated Business Taxes 13. 14. (a) Relocation credts 14a. (b) Expenses related to exempt income 14b. (C) Depreciation adjustments (see Nutt and anech Form NYC-399 end/or NYC-3992) 14c. (d) Exempt Activities 14d. 15. Other additions (attach schedules) (see instructions) 15. 16. Total additions (add lines 13 through 15) 16 PARTNER A PARTNERS PARTNER C TOTAL 13-3508513 13-3501977 13-3682060 74,659. 55,107. 47,995. 13. 177, 761. 14a. 14b. 45,273. 33,415. 29,104. 14c. 107,792. 14d. 1,324,625. 977, 699. 851, 545. 15. 3,153,869. 1,444,557. 1,066,221. 928,644. 16. 3,439,422. SUBTRACTIONS PARTNER A PARTNERS PARTNER C TOTAL 17. All income tax and Unincorporated Business Tax refunds (included in part 1) 17. 17. 18. Wages and salaries subject to federal jobs credit (attach federal Form 5884) 18. 18. 19. Depreciation adjustment (see instr. and attach Form NYC-399 and/or NYC-3992) 19. 25,190. 18,594. 16,193. 19. 59,977. 20. Exempt Income (included in part 1. line 10) (see mstc) 20. 20. 21. 50% of dividends (see instructions) 21. 21. 22. Exempt Activities 22 22. 23. Other subtractions (attach schedule)(see Man/coons). 2,722. 2,008. 1,750. 23. 6,480. 24. Total subtractions (add lines 17 through 23). . 24. 27,912. 20,602. 17,943. 24. 66,457. 25. Combine lines 16 and 24 (total) 25. 3,372,965. 26. Total income (combine lines 12 and 25) 26. 5,615,583. 27. Less: Charitable contributions (not to exceed line 7, or 5% of line 26. whichever is less) 27. 103,335. 28 28. Balance (line 26 less line 27) 5,512,248. 29. Investment income - (complete lines a through g below) (see instructions) Dividends from held for investment 29a. (a) stocks (b) Interest from investment capital (include non-exempt governmental obligations) (Remise on rider) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for Investment . . . . 29c. line 3 of Schedule D 29d. (d) Income from assets included on Add lines 29a through 29d inclusive 29e. (e) ft) Deductions directly or indirectly attributable to investment income 29f. (9) Interest on bank accounts included in income reported 29g. on line 29d 30. Investment income 29e less line 29f) (enter on page 1, Sch. A, line 7a) . . . 30. (line 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line I.) 31. 5,512,248. 60431510 503662 1.000 R66297 1608 202 10 EFTA00806613 Form NYC-204 - 2015 Page 4 Name NEXT MANAGEMENT, LLC EIN 13-3495607 SCHEDULE C I Partnership Information - THIS SCHEDULE MUST BE COMETED FOR PORTNERSHPS TO CLAIM ALLOWANCE FOR RYMER'S SERVCES AND FOR PARTERS TO CLAIM THE WI PAO CREDIT ON THEP LOT OCT BCT OR PIT RETURNS le. How many partners are in this partnership/ PP. 3 P. Number of active partners ► 3 Please provide the following information: Full Name and Address, Employer Identification Number or Social Security Number, check Yes or No if individual partner is a resident of NYC, enter type of partner (C if Corporation, S if S Corporation, I if Individual, P if Partnership, LLP or LLC, Off Other), check the appropriate box if partner is a general or a limited partner. A B C 0 E F a H I Name and Zip Code Olalthin USA) Name and Country (if outside of USA) Interest % Pcycentago °I Inc Dewed to Eluanoss Is htholual Pan"' a Resent a NYC? ( i ) Farina Type Purina I a/I Employer Identification Numb& of Social Security timber Pannots DisInbutim Share (see instr.) ParaMIS04,04 ClIstributerto Share (see 6601 YES NO at HINTED (a) % % % lb) SEE STATEMENT 2 % % (C) % % (d) % (e) % TOTALS: 100% SCHEDULE D (_Investment Capital and Allocation and Cash Election A DESCRIPTION OF INVESTMENT B No el Shares or Amount al Securities C Average Value D Liabilities Attributable to Invest- ment Carmel E Net Average Value (column C rams Sumo DI F Issuers Allocation Percentage G Value Allocated to NYC (column E X column F) LIST EACH STOCK AND SECURITY (USE RIDER IF NECESSARY) % 1. Totals (Including Items on rider) Ilio. 2. Investment allocation percentage pine f0 chided 3. cash - (To treat cash as Investment capital, you must Include It on this line.) 4. Investment capital. Total of Mete and 3e by line I E. Round le to the nearest one hundredth of a percentage point) 2. % le• ATTACH FEDERAL FORM 1065 OR 1065-B AND ALL ACCOMPANYING SCHEDULES INCLUDING THE INDIVIDUAL K-1s 60441510 503663 1.000 R66297 1608 203 10 EFTA00806614 Form NYC-204 - 2015 Page 5 Name NEXT MANAGEMENT, LLC ALLOCA77ON I ALLOCATION OF BUSINESS INCOME I EIN 13-3495607 NONALLOCATION Taxpayers who allocate income outside the City: I Taxpayers who do not allocate business income: - complete Schedule E Parts 1.2 and 3 (below) end - omit Schedule E. Parts 1 and 2 (below) • Enter percentage rounded to the nexest ono hindredth *lemma *pane on ached. A One 2 - enter 100% on Schedule E. Part 3. line 5 and 100% on Schedule A. line 2 LSCHEDULE E I Complete this schedule it business Is carried on both inside and outside New York City I Part 1 List location of each place of business INSIDE New York City, nature of activities at each location (manufacturing. sales dike, executive office. public warehouse, contractor. converter, etc.), and number of employees. their wages, salaries and duties at each location. Complete Address Rent Nature of Actmlies No. cl Employees Wars. Salanes. Etc. Oulias NJA3111MOISCIT 15 WATTS ST. NY, NY Cl., NEW YORK SUR MY 10011 552,009. MODEL AGENCY 53 8,376,027. BOOKING & AD NAOCAMOSTOCCT 15 WATTS ST. —TKO TWELVE M Cr, NEW YORK ,at APP :matt Inert re MY I 10011 Cr, curt ID 44,095. PUBLIC RELATIONS 2 80,496. BOOKING & AD wAocewo:nect Cr( Total rAn IID Part 2 List location of each place of public warehouse, contractor, CWW.MOAMMSS NJOLCIAPOSMCIT 1688 MERIDIAN AVE cm MIAMI NJAZIAMO.r4tT SAW FL 212 31101 840 WILSHIRE BLVD. Cm BEVERLY HILLS cRR CA 2.2 90210 NJAZIAMO .r4tT cry cnn 2P NJAIRMD.WIT COY SUR 2P Total 596,104. 55 8,456,523. usiness OUTSIDE New York City, nature of activities at each location (manufacturing, sales o lice, executive office, onverter, etc.), and number of employees, their wages, salaries and duties at each location. Flan, Nature el ACIWII06 No. of Employees WC*. SSA* Elc Doles 111,862. OFFICE 9 988,189. BOOKING & AD 100,455. OFFICE 20 1,927,516. BOOKING & AD 212,317. 29 2,915,705. Part 3 I Formula Basis Allocation of Income I DESCRIPTION OF ITEMS USED AS FACTORS COLUMN A- NEW YORK CITY COLUMNS-EVERYWHERE COLUMN C 1. Average value of the real and tangible personal properly of the business (see Usti) a Business real properly owned 1a b. Business real properlyrented from others (rent x 8) lb. Business PERCENTAGE IN NEW YORK CITY (COLUMN A MOO BY COLUMN 8) 4,768,832. 6,467,368. 168,776. 194,521. e. tangible personal properly owned 1c. d. auuwinpmiu, wizen.' Fenny MOS (ran wen ass .0> Id. 4,937,608. 6,661,889. 74.1172 % e. Total of lines to-Id le. 741.1720 1. Multiply Column C of line le by 10 If 2a. Wages. :alarms and other personal sante 8,456,522. I 11,372,227. 74.3612 % compensalson pad to employees dreg the year . . 2a. 743.6120 2b. Multiply Column C of line 2a by 10 2b 13,400,728. 21,043,361. 63.6815 % Sa. Gross sales of merchandse or charges for services during the year 3a 3b. Multiply Column C of line 3a by 80 SD 5094.5200 Weighted FactotAllocation ea is missing. etvole line 4a by the total of the Round to the nearest one hundredth of a percentage point . . . Ob. 6579.3040 Oa. Add Column C. lines If. 2b and 3b 65.79 % Ob. Divide line 4a by 100 if no factors are missing. If abider weights of the factors present. Enter as percentage. A. Ye 2. See Instructions 5 1 AND 2 LOCATED IN A PARTNERS HOME? OF AN OFFICE IN A PARTNER'S HOME? 65.79 % Business ANocation Percentoge S. Enter percentage from line 4b. Transfer to page 1. Schedule 6. IS ANY PLACE OF BUSINESS LISTED IN PARTS 7. DID YOU CLAIM A DEDUCTION FOR EXPENSES YES X NO YES X NO ATTACH FEDERAL FORM 1065 OR 1065-B AND ALL ACCOMPANYING SCHEDULES INCLUDING THE INDIVIDUAL K-11 60451510 10 503664 1.000 R66297 1608 204 EFTA00806615 Form NYC-204 -2015 Page 6 Name NEXT MANAGEMENT, LLC SCHEDULE F EIN 13-3495607 If you are taking a Net Operating Loss Deduction this year, please attach Form NYC-NOLD-UBTP. If you have a loss on Page 1, Line 10 which you are carrying forward, please attach Form NYC-NOLD-UBTP and enter that value on Line 6. The following information must be entered for this return to be complete SCHEDULE G 1. Nature of business or profession. MODELING AGENCY 2. New York State Sales Tax ID Number: 3. Did you file a New York City Partnership Return for the following years:. . .2013: x YES - NO 2014: X YES _ NO If "NO,' state reason: 4. If business terminated during the current taxable year, state date terminated. (mm-dd-w) (Attach a statement showing disposition of business property.) 5. Has the Internal Revenue Service or the New York State Department of Taxation and Finance increased or decreased any taxable income reported in any tax period, or are you currently being audited/ YES x NO If "YES", by whom? . . Internal Revenue Semite State period(s): Beg.: End.: um.ODYY ktIAODYY New York State Department of Taxabon and Finance State period(s): Beg.: End.: IAA ODYY ktIA OD YY 6. Has Form NYC-115 (Report of Federal/State Change in Taxable Income) been filed? YES .)_.0 NO 7. Did you calculate a depreciation deduction by the application of the federal Accelerated C051 Recovery System (ACRS)? (seeMstr.) YES X NO 8. Were you a participant in a "Safe Harbor Leasing' transaction during the period covered by this return/ YES .?( NO 9. At any time during the taxable year, did the partnership have an interest in real property (including a leasehold interest) located in NYC or in an entity owning such real property/ X YES - NO 10. If "YES" to 9: a) Attach a schedule of the property. indicating the nature of the interest and including the street address. borough, block and lot number. b) Was any NYC real property (including a leasehold interest) or interest in an entity owning NYC real property, acquired or transferred with or without consideration/ YES X NO c) Was there a partial or complete liquidation of the partnership? YES X NO d) Was 50% or more of the partnership ownership transferred during the tax year. over a three-year period, or according to a plan? YES X NO 11. If 'YES" to 10b, 10c or 10d, was a Real Property Transfer Tax Return filed? YES _ NO 12. If 'NO" to 11, explain: 13. Does this taxpayer pay rent greater than $200,000 for any premises in NYC in the borough of Manhattan south of 96th Street for the purpose of carrying on any trade, business, profession, vocation or commercial activity/ X YES _ NO 14. If 'YES', were all required Commercial Rent Tax Returns Ned? X YES — NO Please enter Employer Identification Number which was used on the Commercial Rent Tax Return. CERTIFICATION 60461510 503666 2.000 I Malay canny Vol Oils town. incbtdava ant OcaamPsnOn0 Ma. ink. en Mal or not inanana0. WOW. lea carnal Inn coal:ant I oulhoilt• be on.....eet a mire. to disonis Me return the In*PaW wtd Wk., 04. InouNbnq YES X Signature of taxpayer: Preparers Preparers signature: emits name: MARC YATKOWSKY BERDON LLP 360 MADISON AVE NEW YORK, NY 10017 Firm's name A Address A hp Code Title: PRES OF MEMBE Dale: Dale: ISACONY Am.'s Email Address: Prewar. Social Security Number or Pliti P00002675 Rims Employer Identification Number Check if 13-0485070 sea-employed MAILING INSTRUCTIONS Attach federal form 1065 or 1065-B and all accompanying schedules Including the Individual K-Is Make remittance payable to the order of NYC DEPARTMENT OF FINANCE. Payment must be made In U.S. dollars and drawn on a U.S. bank. To receive proper credit you must enter your correct Employer Identification Number on your tax return and remittance. The due date for the calendar year 2015 return Is on or before Apr1118, 20 6. For fiscal years beginning in 2015, file on or before the 15th day of the fourth month following the close of the fiscal year. ALL RETURNS EXCEPT REFUND RETURNS NYC DEPARTMENT OF FINANCE UMNOORPORATED BUSINESS TAX M. sox 6564 BINGHAMTON. NY 13902-5564 REMITTANCES PAY ONLINE WITH FORM NYC-200V AT NYC.GOWESERVICES OR Mail Payment and Form NYC-200V ONLY to: NYC DEPARTMENT OF FINANCE . BOX 3646 NEW YORK. NY 10008-3646 RETURNS CLAIMING REFUNDS NYC DEPARTMENT OF FINANCE UNINCORPORATED BUSINESS TAX Box 5563 BINGHAMTON, NY 13002-556.5 R66297 1608 205 10 EFTA00806616 NYC-114.7 Chp.Invorti of Fttencr UBT PAID CREDIT 2015 UNINCORPORATED BUSINESS TAXPAYERS ATTACH TO FORM NYC-204 For CALENDAR YEAR 2015 or FISCAL YEAR beginning 2015 and ending • Pnnt or Type name as shonn on Form NYC-204 NEXT MANAGEMENT, LW V EMPLOYER IDENTIFICATION NUMBER 13-3495607 SCHEDULE A la. Add total of amounts from Schedule B, line 9, for aN partnerships with respect to which you are claiming a credit (see instructions) la lb. Enter amount from Schedule D, line 9 lb. lc. Total of lines 1a and 1b lc. 2. Enter amount from Form NYC-204, Schedule A, line 19 2 3. UBT PAID CREDIT - Enter the lesser of line lc and line 2 and transfer amount to Form NYC-204, Schedule A, line 20. 3 13,341. 13,341. 143,660. 13,341. SCHEDULE B A separate Schedule B must be completed for each partnership with respect to which you are claiming this credit. Name of partnership from %Mich you received a distributive share or guaranteed payment (distributing partnership): TWO TWELVE MANAGEMENT, LLC EMPLOYER IDEN11FICA11ON NUMBER OF DISTRIBUTING PARTNERSHIP 20-1354409 1. Unincorporated business tax paid by distributing partnership (from Its Form NYC-204. Schedule A. line 23) 1. 2. Credits taken by distributing partnership on its own return (from its Form NYC-204, Schedule A, line 20 and lines 22a through 22d) (see instructions) 2. 3. Total of lines 1 and 2 3. 4. 5. 6. 7. 8. 9. 27,807. 27,807. Your distributive share percentage with respect to the distributing partnership (see instructions) • • 4. 47.977956 Multiply line 3 by the percentage on line 4 5. 13,341. Tax from Form NYC-204, Schedule A, line 17. modified if necessary (see instructions) 6. 143,660. Tax from pro forma Form NYC-204, Schedule A, line 17 (see instructions) STMT 6 7. 129,839. Subtract line 7 from line 6 8. 13,821. Enter lesser of line 5 and line 8 here 9. 13,341. COMPLETE SCHEDULES C AND D IF YOU HAVE UBT PAID CREDITS FROM PRECEDING YEARS THAT YOU MAY CARRY FORWARD TO 2015 SCHEDULE C current year percentage • • lb current year pe centage • • 2b. current year pe centage • • 3b. current year pe centage • • 4b. current year pe centage • • 5b. current year pe centage • • 6b. current year pe centage • • 7b. 1. 7th preceding year percentage . . .1a. 2. 6th preceding year percentage . . .2a. 3. 5th preceding year percentage . . .3a. 4. 4th preceding year percentage . . .4a. 5. 3rd preceding year percentage . . .5a. 6 2nd preceding year percentage . . .6a. 7. 1st preceding year percentage . . .7a. SCHEDULE D (see Instructions) APPLICABLE YEAR COLUMN A Credit Available in 2015 COLUMN B COLUMN C Gabs Perccolatie COLUMN D COLUMN E Credit to 2016 Column A Mous Column 13 (II loss du" we. enter IV) 1 Currentyear 13,341. 143,660. NA NA 2. 7th preceding year 130,319. 3. 6th preceding year 130,319. 4. 5th preceding year 130,319. 5. 4th preceding year 130,319. 6. 3rd preceding year 130,319. 7. 2nd preceding year 130,319. 8. 1St preceding year 130,319. 9. Total Column 0, lines 2 through 8 (enter on Schedule A. line lb) 9. NYC4Ia.p 2015 61111510 206 10 EFTA00806617 Nycn7,399Z DEPRECIATION ADJUSTMENTS FOR CERTAIN POST 9/10/01 PROPERTY For CALENDAR YEAR 2015 or FISCAL YEAR beginning Name (Print or Type) NEXT MANAGEMENT, LLC and ending A Federal Form 4562 must accompany this form. • This schedule must be attached to your applicable New York City tax return. See instructions. • Use Schedule A2 to report modifications to the deductions for certain sport utility vehicles, not Schedule Al. See instructions. EMPLOYER ICENTIRCATION NUMBER 13-3495607 OR SOCIAL SECURITY MJMBER SCHEDULE Al Computation of allowable New York City depreciation for current year I Attach rider If necessary A Descnption of Property B Class of Property C Date Placed in Service mrn-ddly D Cost Or Other Baps E Accumulated NYC Depreciator, Taken an Prior Years F Federal Depreciation G Method of Fvudng Met Wrocoban H Lite or Rate I Allowable New York City Deprecation STMT 7 is. Total columns D. E. F. and I 556, 187. 130,598. 107, 792. 69,977. Enter total of columns F and I on line 4 and line 5 of Schedule C below. (Sae instructions on back.) SCHEDULE A2 Computation of NYC deductions for current year for sport utility vehicles t Attach rider if necessary A Description of Property 8 Class of Property C Date Placed in Service: mm4d.yy D Cost or Other Basis E Accumulated NYC Deductions Taken in Prior Years F Federal Depreciation and Section 179 Deductions G 1.1othod of Figurine tAt Deprecator H Life or Rale I Total Allowable New Yak Ctty Deductions lb. Total columns D. E. F. and I MCMI-2O15 00811510 We367S 1.000 R66297 1608 207 10 EFTA00806618 Form NYC-399Z Page 2 SCHEDULE B Disposition adjustment I Attach rider If necessary For each Item of property listed below, determine the difference between federal and New York City deductions used in the computation of federal and New York City taxable income in prior yea's. • If federal deduction exceeds New York City deduction. subtract column E from column 0 and enter in column F. A II New York City deduction exceeds federal, subtract column I) from column E and enter in column G. A Description of Property B Class of Property (SCRS) C Date Placed in Service: m-del-yy D Total Federal Depreciation Taken E Total NYC Depreciation Taken F Adjustment (0 minus E) G Adjustment (E anus 0) 2. Total excess federal deductions over NYC deductions (see instructions) 3. Total excess NYC deductions over federal deductions (see instructions) SCHEDULE C Computation of adjustments to New York City income A. Federal B. New York City 4. Enter amount from Schedule Al. line l a. column F 4. 5. Enter amount from Schedule Al. line la. column I 6 6a. Enter amount from Schedule A2. line lb, Column F Ba 6b. Enter amount from Schedule A2. line lb, Column I OM is. Enter amount from Schedule B. line 2 la 7b. Enter amount from Schedule B. line 3 7b 107,792. 59,977. 107,792. 59,977. 8. Totals: column A. Ines 4, 66 md 7b: column tines S. se and 7a . . 8. Enter the amount on line 8. column A. as an addition and the amount on line 8. column B. as a deduction on the applicable New York City return. (See Instr.) GENERAL INFORMATION NOTE At the time of the drafting of these instructions, bonus depreciation provisions under section 168(k) of the Internal Revenue Code had expired for all property except for those provisions applicable to certain long- lived and transportation property. Check the De- partment of Finance website for any updates on federal legislation affecting depreciation. The Job Creation and Worker Assistance Act of 2002, P.L 107.147, (the "Act") allows taxpayers an additional 30 percent depreciation deduction in the first year "qual- if ied property is placed in service. The Act allows a simlar additional 30 percent first-year depreciation de- duction for "qualified New York Liberty Zone property" and allows "qualified New York Liberty Zone leasehold improvements" to be depreciated over a five-year period 00621510 SY3676 1.000 R66297 1608 using a straight-line method. The Act also allows an ad- ditional first-year expense deduction of up to $35,000 for "qualified New Yodt Liberty Zone property" under RC §179 in addition to the otherwise allowable deduction. The Jobs and Growth Tax Relief Reconciliation Act of 2003, P.L 108.27, (the "2003 Act") increased the first year federal depreciation deduction for certain qualified property to 50%. The New York Liberty Zone generally encompasses an area of the borough of Manhattan below Canal Street. 'Qualified property' (as defined in IRC §168(k)(2)) gen- erally includes certain personal property acquired after September 10, 2001 and before January 1, 2005 and placed in service after September 10, 2001 and before January 1, 2005 or 2006 in certain circumstances. i The 2003 Act modified the definition of qualified property" to provide that to qualify for the 50% deduction, the property must be acquired after May 5, 2003 and before 10 208 EFTA00806619 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-204 SUPPORTING STATEMENTS PORTFOLIO INCOME INTEREST INCOME 17,910. TOTAL PORTFOLIO INCOME 17,910. OTHER DISTRIBUTABLE ITEMS LESS: SECTION 179 EXPENSE DEDUCTION 191,194. TOTAL OTHER DISTRIBUTABLE ITEMS -191,194. ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX 152,391. NYC UBT TWO TWELVE 24,570. CALIFORNIA LLC TAX 800. TOTAL ADDITIONS TO INCOME AND UBT 177,761. OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS AMORTIZATION OF SECTION 754 GOODWILL 3,069,725. 84,144. TOTAL OTHER ADDITIONS 3,153,869. OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 6,480. TOTAL OTHER SUBTRACTIONS 6,480. SXX043 1.000 STATEMENT 1 R66297 1608 209 EFTA00806620 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-204 SUPPORTING STATEMENTS FOR' NYC-2D4 SCHEDULE C - PARTNERSHIP INFORMATION NAME AND ADDRESS PERCENTAGE OF IS INDIVIDUAL PARTNER'S PERCENTAGE OF TINE DEVOTED PTR A NYC RES PARTNER PARTNER DISTRIBUTIVE DISTRIBUTIVE INTEREST % TO BUSINESS YES NO TYPE GEN LIM FEIN OR ESN SHARE SHARE CLAXON INC 42.000000 100.00 X c X 12.-3508512. 2,115,104. 41.999997 C/0 NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 PARTNERSHIP HOLDING CORP. 11.000000 100.00 X s X 11-3501977 1,706,797. 11.000002 C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 THE NILCOR GROUP, INC. 27.000000 100.00 X s X 11-3662040 1,406,307. 27.000001 C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 R66297 1608 210 STATEMENT 2 EFTA00806621 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC 204 PARTNER INFORMATION **INFORMATION FOR NYC RESIDENTS TO COMPLETE FORM IT-219** PARTNER NUMBER 1 PARTNER NAME AND I.D. CLAXON INC C/O NEXT MANAGEMENT LLC 13-3508513 NAME OF PARTNERSHIP NEXT MANAGEMENT, LLC PARTNERSHIP YEAR END 12/31/2015 EMPLOYER ID NUMBER 13-3495607 1. TOTAL NET TAX AFTER CREDITS (LINE 23) 130,319. 2. TOTAL UBT PAID CREDIT (LINE 20) 13,341. 3. ADD LINE 1 AND 2 143,660. 4. PERCENTAGE OF TOTAL DISTRIBUTIVE SHARES FROM NYC-204 41.999997 5. MULTIPLY LINE 3 BY LINE 4 60,337. STATEMENT 3 MUNI31.000 R66297 1608 211 EFTA00806622 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC 204 PARTNER INFORMATION **INFORMATION FOR NYC RESIDENTS TO COMPLETE FORM IT-219** PARTNER NUMBER 2 PARTNER NAME AND I.D. PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 13-3501977 NAME OF PARTNERSHIP NEXT MANAGEMENT, LLC PARTNERSHIP YEAR END 12/31/2015 EMPLOYER ID NUMBER 13-3495607 1. TOTAL NET TAX AFTER CREDITS (LINE 23) 130,319. 2. TOTAL UBT PAID CREDIT (LINE 20) 13,341. 3. ADD LINE 1 AND 2 143,660. 4. PERCENTAGE OF TOTAL DISTRIBUTIVE SHARES FROM NYC-204 31.000002 5. MULTIPLY LINE 3 BY LINE 4 44,535. STATEMENT 4 MUNI31.000 R66297 1608 212 EFTA00806623 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC 204 PARTNER INFORMATION **INFORMATION FOR NYC RESIDENTS TO COMPLETE FORM IT-219** PARTNER NUMBER 3 PARTNER NAME AND I.D. THE WILCOR GROUP, INC. C/O NEXT MANAGEMENT LLC 13-3682060 NAME OF PARTNERSHIP NEXT MANAGEMENT, LLC PARTNERSHIP YEAR END 12/31/2015 EMPLOYER ID NUMBER 13-3495607 1. TOTAL NET TAX AFTER CREDITS (LINE 23) 130,319. 2. TOTAL UBT PAID CREDIT (LINE 20) 13,341. 3. ADD LINE 1 AND 2 143,660. 4. PERCENTAGE OF TOTAL DISTRIBUTIVE SHARES FROM NYC-204 27.000001 5. MULTIPLY LINE 3 BY LINE 4 38,788. STATEMENT 5 MUNI31.000 R66297 1608 213 EFTA00806624 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-114.7 SUPPORTING STATEMENTS NYC 114.7 - COMPUTATION FOR LINE 7 DISTRIBUTING PARTNERSHIP NAME TWO TWELVE MANAGEMENT, LLC EIN NUMBER 20-1354409 1. TAXABLE BUSINESS INCOME 3,591,508. 2. LESS DISTRIBUTIVE SHARE OF INCOME 345,526. 3. LINE 1 LESS LINE 2 3,245,982. 4. TAX: 4% OF LINE 3 129,839. 5. SALES TAX ADDBACK 6. TOTAL TAX BEFORE BUSINESS CREDIT 129,839. STATEMENT 6 MUNI31A00 R66297 1608 214 EFTA00806625 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-3992 SUPPORTING STATEMENTS NEI/ YORK CITY DEPRECIATION SCHEDULE Al A.DESCRIPTION OF ASSET B.CLASS [-DATE PUT D.COST E.ACCUMULATED F. FED. ACRS G.NETNOD N.LIFE 1.22C OF PROP. EN SERVICE OR BASIS DEPRECIATION DEDUCTION \RATE DEPR. LEASEHOLD IKPRO-NY 14,ACRS 06/22/2003 103,492. 30,632. 1,327. N39 2,654. LEASEHOLD IIPRO-NY NACRS 07/24/2003 26.020. 7.666. 134. N39 669. LEASEHOLD IIPRO-NY 14,ACRS 08/12/2003 17.758. 5.176. 228. N39 455. LEASEHOLD IIPRO-NY 14,ACRS 09/12/2003 128,435. 37,185. 1,647. N39 3,293. LEASEHOLD IKPRO-NY 14,ACRS 10/28/2003 16.767. 4.820. 215. N39 430. LEASEHOLD IKPRO-NY 14,ACRS 11/19/2003 41.921. 11,971. 532. N39 1,076. LEASEHOLD IMPROVE-NY 14,ACRS 01/16/2004 5,649. 1.589. 72. N39 145. LEASEHOLD IMPROVE-NY 14,ACRS 02/17/2004 7,686. 2.143. 99. N39 197. LEASEHOLD IMPROVE-NY 14,ACRS 12/31/2004 25.000. 17,499. 233. N15 15.000 1,665. LEASEHOLD 1NP -NY 14,ACRS 02/12/2008 11.736. 5.382. 191. N15 722. LEASEHOLD 1NP -NY 14,ACRS 12/19/2008 16.000. 6.535. 533. N15 1,066. SOFTWARE 14,ACRS 01/22/2015 155,603. 101.575. CS 3.000 47,545. TOTALS 556,187. 130.598. 107.792. 59,977. 96 SXX063 1.000 STATEMENT 7 R66297 1608 215 EFTA00806626 NEW YORK CITY SCHEDULE K-1 EQUIVALENT Partners identification number 13-3508513 Partners name, address, and ZIP code CLAXON INC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 SCHEDULE B - Computations Partner's Share of Income For calendar year 2015 or liscal year beginning ending LARTNER # 1 Partnership's identification number 13-3495607 Partnership's name, address, and ZIP code NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1 001 3 Amount Part 1 j items of Income, gain, loss or deduction I 1. Ordinary income (loss) from federal Form 1065, line 22 (see instructions) 1. 2. Net Income (loss) from all rental real estate activity not included in Form 1065. line 22. but Included on federal Schedule K, , 2. 3. All portfolio income such as interest, dividends, royalties, annuity income and gain (loss) on the disposition of property not included in Form 1065. line 22 but included on federal Sch. K (attach soh. of &porno& income) 3. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 5. Payments to current and retired partners included in other deductions from federal Form 1065, line 20 5. 6. Other income not included in Form 1065, line 22 but included on federal Sch. K (attach soh. of other Income). 6. 7. Charitable contributions from federal Schedule K 7.I1 43, 401 8. Other deductions included in Form 1065, line 22 but not allowed for UBT (attach sched.) (see inst.). 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) SEE. STATEMENT .1. . . .9. 10. Total federal income (combine lines 1 through 9, do not include line 7) 10. 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property situated outside NYC if included in line 10 above (attach schedule) (see instructions) 11. 12. Total income before New York City modifications (combine line 10 and knell) 12 Part 2 I New York City modifications 1 ADDITIONS and SUBTRACTIONS 13. All income taxes and Unincorporated Business Taxes SEE. STATEMENT .1.. . 13. 14. (a) Relocation credits 14a. (b) Expenses related to exempt income 14b. (c) Depreciation adjustments (see Instr. and attach Form NYC-399) 14c. (d) Exempt Activities 14d. 15. Other additions (attach schedule) (see instructions) SEE. STATEMENT .1. 15. 16. Total additions (add lines 13 through 15) 16. 17. All income tax and Unincorporated Business Tax refunds (included in part 1) 17. 18. Wages and salaries subject to federal jobs credit(attach federal Form 5884) 18. 19. Depreciation adjustment (see instr. and attach Form NYC-399) 19. 20. Exempt income (included in part 1, line 10) (See instr.) 20. 21. 50% of dividends (see instructions) 21. 22. Exempt Activities 22. 23. Other subtractions (attach schedule) (see instructions) SEE. STATEMENT .1. 23. 24. Total subtractions (add lines 17 through 23) 24. 25. Combine lines 16 and 24 25. 26. Total income (combine lines 12 and 25) 26. 27. Less: Charitable contnbutions (not to exceed line 7, or 5% of line 26, whichever is less) 27. 28. Distributive Income (line 26 less line 27) 28. 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from Investment capital (include non-exempt governmental obligations) (denim on skier) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for investment 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. (f) Deductions directly or indirectly attributable to investment capital 29f (g) Interest on bank accounts included in income reported on line 29d .29g. 30a. Investment income (line 29e less line 291 but not more than line 28) (enter on page 1. Schedule A. line 7) 30a. 30b. Investment income to be allocated (enter on page 1, Schedule A, Line 7a) (see instructions), 30b. 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line 1) 31. 1,014,678 7,522. -80,30 941,90 941,90 74,659 45,273 1,324,6 1,444,5 25,190 2,722 27,912 1,416,6 2,358,5 43,401 2,315,1 2,315,1 503675 3.000 R66297 1608 216 EFTA00806627 NEXT MANAGEMENT, LLC PARTNER # 1 13-3495607 NEW YORK CITY SCHEDULE K-1 EQUIVALENT, SUPPORTING SCHEDULES PART 1, LINE 3 - PORTFOLIO INCOME INTEREST INCOME 7,522. TOTAL PORTFOLIO INCOME 7,522. PART 1, LINE 9 - OTHER ITEMS LESS: EXPENSE DEDUCTION FOR SECTION 179 80,301. TOTAL OTHER ITEMS -80,301. PART 2, LINE 13 - ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX 64,004. NYC UBT TWO TWELVE 10,319. CALIFORNIA LLC TAX 336. TOTAL ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES 74,659. PART 2, LINE 15 - OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS AMORTIZATION OF SECTION 754 GOODWILL 1,289,285. 35,340. TOTAL OTHER ADDITIONS 1,324,625. PART 2, LINE 23 - OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 2,722. TOTAL OTHER SUBTRACTIONS 2,722. SX.X083 1.000 STATEMENT 1 R66297 1608 217 EFTA00806628 NEW YORK CITY Partner's Share of Income SCHEDULE K-1 For calendar year 2015 or fiscal year beginning ending EQUIVALENT Partners identification number 13-35 0 1 97 7 Partners name, address, and ZIP code PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 SCHEDULE B - Computations LARTNER # 2 Partnership's identification number 1 3 -34 95 6 0 7 Partnership's name, address, and ZIP code NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1 001 3 Amount Part 1 I Items of Income, gain, loss or deduction 1. Ordinary income (loss) from federal Form 1065, line 22 (see instructions) 1. 2. Net Income (loss) from all rental real estate activity not included in Form 1065. line 22. but Included on federal Schedule K, , 2. 3. All portfolio income such as interest, dividends, royalties, annuity income and gain (loss) on the disposition of property not included in Form 1065. line 22 but included on federal Sch. K (attach soh. of &porno& income) 3. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 5. Payments to current and retired partners included in other deductions from federal Form 1065, line 20 5. 6. Other income not included in Form 1065, line 22 but included on federal Sch. K (attach sch. of other Income). 6. 7. Charitable contributions from federal Schedule K 7.I1 32, 034 8. Other deductions included in Form 1065, line 22 but not allowed for UBT (attach sched.) (see inst.). 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) SEE. STATEMENT .1. . . .9. 10. Total federal income (combine lines 1 through 9, do not include line 7) 10. 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property situated outside NYC if included in line 10 above (attach schedule) (see instructions) 11. 12. Total income before New York City modifications (combine line 10 and tine 11) 12 Part 2 I New York City modifications 1 ADDITIONS and SUBTRACTIONS 13. All income taxes and Unincorporated Business Taxes SEE. STATEMENT .1. 13. 14. (a) Relocation credits 14a. (b) Expenses related to exempt income 14b. (c) Depreciation adjustments pee Instr. and attach Form NYC-399) 14c. (d) Exempt Activities 14d. 15. Other additions (attach schedule) (see instructions) SEE. STATEMENT .1. 15. 16. Total additions (add lines 13 through 15) 16. 17. All income tax and Unincorporated Business Tax refunds (included in part 1) 17. 18. Wages and salaries subject to federal jobs credit(attach federal Form 5884) 18. 19. Depreciation adjustment (see instr. and attach Form NYC-399) 19. 20. Exempt income (included in part 1, line 10) (see instr.) 20. 21. 50% of dividends (see instructions) 21. 22. Exempt Activities 22. 23. Other subtractions (attach schedule) (see instructions) SEE. STATEMENT .1, 23. 24. Total subtractions (add lines 17 through 23) 24. 25. Combine lines 16 and 24 25. 26. Total income (combine lines 12 and 25) 26. 27. Less: Charitable contnbutions (not to exceed line 7, or 5% or line 26, whichever is less) 27. 28. Distributive Income (line 26 less line 27) 28. 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from investment capital (include non-exempt governmental obligations) Menem on sidet) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for investment 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. (f) Deductions directly or indirectly attributable to investment capital 29f (g) Interest on bank accounts included in income reported on line 29d , .29g. 30a. Investment income (line 29e less line 29f but not more than line 28) (enter on page 1. Schedule A. line 7) , 30a. 30b. Investment income to be allocated (enter on page 1, Schedule A, Line 7a) (see instructions), 30b. 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line 1) 31. 748,93 5,552 -59,27 695,21 695,21 55,107 33,415 977,69 1,066,2 18,594 2,008 20,602 1,045,6 1,740,8 32,034 1,708,7 1,708,7 503675 3.000 R66297 1608 218 EFTA00806629 NEXT MANAGEMENT, LLC PARTNER # 2 13-3495607 NEW YORK CITY SCHEDULE K-1 EQUIVALENT, SUPPORTING SCHEDULES PART 1, LINE 3 - PORTFOLIO INCOME INTEREST INCOME 5,552. TOTAL PORTFOLIO INCOME 5,552. PART 1, LINE 9 - OTHER ITEMS LESS: EXPENSE DEDUCTION FOR SECTION 179 59,271. TOTAL OTHER ITEMS -59,271. PART 2, LINE 13 - ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX NYC UBT TWO TWELVE CALIFORNIA LLC TAX 47,241. 7,617. 249. TOTAL ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES 55,107. PART 2, LINE 15 - OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS 951,614. AMORTIZATION OF SECTION 754 GOODWILL 26,085. TOTAL OTHER ADDITIONS 977,699. PART 2, LINE 23 - OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 2,008. TOTAL OTHER SUBTRACTIONS 2,008. SX.X083 1.000 STATEMENT 1 R66297 1608 219 EFTA00806630 NEW YORK CITY SCHEDULE K-1 EQUIVALENT Partners identification number 13— 3 6 82 0 60 Partners name, address, and ZIP code THE WILCOR GROUP, INC. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 SCHEDULE B - Computations Partner's Share of Income For calendar year 2015 or liscal year beginning ending LARTNER # 3 Partnership's identification number 1 3 -3495607 Partnership's name, address, and ZIP code NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1 001 3 Amount Part 1 I Items of Income, gain, loss or deduction 1. Ordinary income (loss) from federal Form 1065, line 22 (see instructions) 1. 2. Net Income (loss) from all rental real estate activity not included in Form 1065. line 22. but Included on federal Schedule K. 2. 3. All portfolio income such as interest, dividends, royalties, annuity income and gain (loss) on the disposition of property not included in Form 1065. line 22 but included on federal Sch. K (attach soh. of &porno& income) 3. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 5. Payments to current and retired partners included in other deductions from federal Form 1065, line 20 5. 6. Other income not included in Form 1065, line 22 but included on federal Sch. K (attach sch. of other Income). 6. 7. Charitable contributions from federal Schedule K 7.I1 27, 900 8. Other deductions included in Form 1065, line 22 but not allowed for UBT (attach sched.) (see inst.). 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) SEE. STATEMENT .1. . . .9. 10. Total federal income (combine lines 1 through 9, do not include line 7) 10. 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property situated outside NYC if included in line 10 above (attach schedule) (see instructions) 11. 12. Total income before New York City modifications (combine line 10 and fine 11) 12 Part 2 I New York City modifications 1 ADDITIONS and SUBTRACTIONS 13. All income taxes and Unincorporated Business Taxes SEE. STATEMENT .1... 13. 14. (a) Relocation credits 14a. (b) Expenses related to exempt income 14b. (c) Depreciation adjustments pea Instr. and attach Form NYC-399) 14c. (d) Exempt Activities 14d. 15. Other additions (attach schedule) (see instructions) SEE. STATEMENT .1. 15. 16. Total additions (add lines 13 through 15) 16. 17. All income tax and Unincorporated Business Tax refunds (included in part 1) 17. 18. Wages and salaries subject to federal jobs credit(attach federal Form 5884) 18. 19. Depreciation adjustment (see instr. and attach Form NYC-399) 19. 20. Exempt income (included in part 1, line 10) (sae Moir ) 20. 21. 50% of dividends (see instructions) 21. 22. Exempt Activities 22. 23. Other subtractions (attach schedule) (see instructions) SEE. STATEMENT .1. 23. 24. Total subtractions (add lines 17 through 23) 24. 25. Combine lines 16 and 24 25. 26. Total income (combine lines 12 and 25) 26. 27. Less: Charitable contnbutions (not to exceed line 7, or 5% of line 26, whichever is less) 27. 28. Distributive Income (line 26 less line 27) 28. 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from investment capital (include non-exempt governmental obligations) oeuvre on sidet) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for investment 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. (f) Deductions directly or indirectly attributable to investment capital 29f (g) Interest on bank accounts included in income reported on line 29d , .29g. 30a. Investment income (line 29e less line 291 but not more than line 28) (enter on page 1. Schedule A. line 7) , 30a. 30b. Investment income to be allocated (enter on page 1, Schedule A, Line 7a) (see instructions), 30b. 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line 1) 31. 652,293 4,836. -51,622. 605,506 605,506 47,995. 29,104. 851,545 928,644 16,193. 1,750. 17,943. 910,701 1,516,207 27,900. 1,488,307 1,488,307 503675 3.000 R66297 1608 220 EFTA00806631 NEXT MANAGEMENT, LLC PARTNER # 3 13-3495607 NEW YORK CITY SCHEDULE K-1 EQUIVALENT, SUPPORTING SCHEDULES PART 1, LINE 3 - PORTFOLIO INCOME INTEREST INCOME 4,836. TOTAL PORTFOLIO INCOME 4,836. PART 1, LINE 9 - OTHER ITEMS LESS: EXPENSE DEDUCTION FOR SECTION 179 51,622. TOTAL OTHER ITEMS -51,622. PART 2, LINE 13 - ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX NYC UBT TWO TWELVE CALIFORNIA LLC TAX 41,146. 6,634. 215. TOTAL ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES 47,995. PART 2, LINE 15 - OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS 828,826. AMORTIZATION OF SECTION 754 GOODWILL 22,719. TOTAL OTHER ADDITIONS 851,545. PART 2, LINE 23 - OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 1,750. TOTAL OTHER SUBTRACTIONS 1,750. SX.X083 1.000 STATEMENT 1 R66297 1608 221 EFTA00806632