From: "Barry J. Cohen" <I

From: "Barry J. Cohen" <I To: 'Ada Clapp' <I CC: "jeffrey E. ([email protected])" <[email protected]>, ' Subject: RE: East 70th Street townhouse purchase Date: Tue, 01 Jul 2014 22:27:29 +0000 My point is that if Debra doesn't have the $ or the inclination, then there is nothing for us to discuss, and we need to go with single life. From: Ada Clapp [mailto: Sent: Tuesday, July 01, 2014 6:26 PM To: Barry J. Cohen; John Hannan; Richard Ressler d Cc: Halperin, Alan 5; Eileen Alexanderson; Jeffrey E. Subject: RE: East 70th Street townhouse purchase We would discuss advantages and disadvantages with Debra if the Trustees are inclined to go with successive life interests. Ada Clapp Elysium Management LLC 445 Park Avenue Suite 1401 New York, New York 10022 Direct Dial: 646-589-0303 Fax: 646-589-0330 Email: This communication and any attachment is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary. If you are not the intended recipient, you are hereby notified that further dissemination of this communication and its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you have received them in error. Thank you. From: BarryJ. Cohen [mailto: Sent: Tuesday, July 01, 2014 6:04 PM To: Ada Clapp; John Hannan; Richard Ressler ( Cc: Halperin, Alan 5; Eileen Alexanderson; jeffrey E. Subject: RE: East 70th Street townhouse purchase Is it a problem for Debra to pay out of her own funds? Defer to you whether that would have positive or negative estate planning objectives. From: Ma Clapp fmailto: Sent: Tuesday, July 01, 2014 5:53 PM To: Barry J. Cohen; John Hannan; Richard Ressler ( Cc: Halperin, Alan 5; Eileen Alexanderson; jeffrey E. Subject: East 70th Street townhouse purchase Dear Barry, Richard and John, EFTA00991979 As you know, the discretionary trust under the APO I Agreement (the "Trust") created the NY 70th Street LLC (the "LLC") and the LLC intends to enter into a split interest purchase of a residence. Attached for your reference is a Paul Weiss overview of the technique. To assist with the decision as to whether the LLC's remainder interest will vest upon Leon's death or upon the death of the survivor of Leon and Debra, I attach a chart comparing the split interest purchase technique structured with a single life interest and with successive life interests. You will see that with successive life interests, the LLC's initial contribution would be reduced by about $4.5 million (assuming a $48 million purchase price). In exchange for this savings, the LLC may be giving up some flexibility. This is because, assuming Leon dies first, the LLC would not take title to the residence until Debra's death. Accordingly, for the LLC to sell the residence during Debra's lifetime, it would need her consent. There would also be no flexibility to charge Debra rent (so that she could transfer assets to the Trust, gift-tax free) as she would have the right to live in the residence for her lifetime. Of course, these restrictions would also exist in the case of a single life interest-but for a shorter period of time. Two final points to consider: with successive life interests, an actuary will likely need to be retained to determine the share of the purchase price (and of capital expenditures) to be borne by Leon and Debra as the life interest holders and to allocate that charge between Leon and Debra. Each of Leon and Debra must satisfy his or her proportionate share from independent funds. Please let me know your preference for moving forward with the split-interest property purchase. Of course, I am happy to answer any questions you may have. Best regards, Ada Clapp Elysium Management LLC 445 Park Avenue Suite 1401 New York, New York 10022 Direct Dial: 646-589-0303 Fax: 646-589-0330 Email: This communication and any attachment is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary. If you are not the intended recipient, you are hereby notified that further dissemination of this communication and its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you have received them in error. Thank you. This email and any files transmitted with it are confidential and intended solely for the person or entity to whom they are addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you have received this email in error please contact the sender and delete the material from any computer. Apollo Global Management, LLC EFTA00991980 This email and any files transmitted with it are confidential and intended solely for the person or entity to whom they are addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you have received this email in error please contact the sender and delete the material from any computer. Apollo Global Management, LLC EFTA00991981