Estate Planning Overview

Estate Planning Overview Presented 饧： Leon D．and Debra R. Black Overview of Estate Plan as of April 16，2014 Apollo Global Management $30/share June 9, 2014 Nancy A. Kistner, CFPO Aaron Shamshoian, CFPO Managing Director Vice President Wealth Strategies Advisor Associate Wealth Strategies Advisor U.S. Trust, Bank of America Private Wealth Management 114 West 47th Street New York，New York 10036 EFTA01088415 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Statement of Disclosure Investment product such as sinks. heeds and mutual funds: Are Not FDIC Insured May Lose Value Are Not Sank Guaranteed IMPORTANT: TMMeigamma* is for disarms'. 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Pima rams la Smith Iniorpoiated gem as an advisor. Merrill Lynch. Pierce. Seenerit Smith Incorporatedire registered brokerecoler. member El-SRAand XIPC. and a Motif:owned robridiary of Punk of America Corporation. Merrill Lynch. Pima. !Mawr& Smith Incorporated dogmas mamma tat or Mal advisor. Several products such as mutual funds iariable annuities and other alternative inteamenti that maybe marks:ad ammingelment alternatim fa you are only toe sold "hew Procaled MaCromPanied by a meant prospeam and/or affair., merrewanda. The prapraus aratfor *fining memccanda prink mem cornpkite information on the prods& including diaries mews and special imminent and should he read carefully before inverting. The fallowing report la for fiduciary me only. The essoam piesenting this report roma is ming within his Of be, fidurlarycepidty with U.S. Twist. not withal boar her licamed meaty. If say. with Mail Lynch Parch F1114.1 Smith Incorpsetacd. 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If you theme to follow an insettment *vacant Meth intheMiming atomic) rcpwitioning of yaw ponfolio may mull in tax consequebe es Spathe contents of iha tementstian geoad not beaded 'wassailing oonsulting athlrOprote kgI are/ or tax advisors MI lax calculations herein are merely estimatteand strodel not be relied upon for Mailed tax planning purees MI income taxes art based on NM tat rats add not take all tbedetailsofa stater income tat laws into mount Thin anabstia Is bawd on the calendar year. All 453S and liabilities are lued ai the end af mth mar. Deaths are alio *seamed to mum at the end ofeactryter. For the finst mor of the anemia**. annual TCIU1115 are prorated on a daily halts US Trost. Bank of Marta Prime Wealth Management operates thrones Bead of America and other subsidiaries of Bank of Mania eathoration NM °fanatic, . • Member FDIC. C. son Bank aliments Porporgion. All rights Mewed Page 2 of 26 EFTA01088416 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Assumptions Exemption Amounts: Leon Debra Prior Taxable Gifts 5.340,000 $ 5.120,000 Available Unified Credit Amount 220,000 Prior GST Exemption Allocation 3,500,000 4,173.596 Available GST Exemption Amount 1.840.000 1,166.404 Federal Estate Tax Year Exclusion & GST Exemption Amounts Federal Estate Tax Highest Federal Estate Highest New York Estate Credit Tax Rate Tax Rate 2014 5.340,000 $ 2,081,800 40% 16% Notes and Assumptions: • Leon and Debra are presumed to die in 2014 with Leon immediately predeceasing Debra. • Debra's Will and Revocable Trust provisions are presumed to mirror those in Leon's documents. • Administration expenses are assumed to be $5 million in Leon's estate and are assumed to be 2% of Debra's probate estate. • Valuation discounts totaling 30% are applied to the value of Black Family Partners. L.P. interests, which are valued assuming a mean value of AGM stock on April 16, 2014 of $30 per share. • The value of each GRAT is "frozen- on Leon's presumed date of death. Because the GRATs had not terminated, the annuity amounts still payable from the GRATs and any principal value above this amount will be included in Leon's estate (the "Includible Portion"). Because the annuity payments to be received by his estate (`GRAT Annuity Receivables") exceed the date of death value of the GRATs, the Includible Portion will pass entirely to the Marital Trust in satisfaction of the GRAT Annuity Receivables. • For the $500,000 per year lifetime annuity calculations, Judy Black was born on September 27, 1948 (with a life expectancy of 20 years), and Jon Ressler is assumed to be age 61 (with a life expectancy of 19 years). • 100% charitable deduction is assumed for fractional interests in art pledged to museums. Page 3 of 26 EFTA01088417 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Inventory of Fannty Assets as of April DI 2014 Leon Debts To Lii Liquid Assets - Investment Accounts U.S. Trust Cash Account $ 25.587.000 S 5.562.000 $ 31.149.000 JPM Gasnhlarketable Securilies 8.558.000 6.927.000 15.463.000 Investments Ari.held through Entities 1,500,000.000 1.500.000.000 Other M. Rave Books & Bronzes 402295.000 402.295.000 • Includible Portion of GRATs 1.700253.000 1.700.253.000 Black Family Partners LP (8001790". DISCOUNT' 30% 178.702.000 178.702.000 AP Allernative Assets 21.655.000 21.655.000 Apollo Related Investments 5247.000 5.247.000 Investment PannenNps - Various 1.545.000 1.545.000 Avionella LLC: (LOB 50.1%. ORB 49.9%) - AT COST 11.135.000 11.090.000 22.225.000 BJAV Marine Ltd. (Situate) 22.121.000 22.121.000 Reel Estate - Personal Jointly Owned Residences 38.200.000 38200.000 76.400.000 Narrow's Road Parcel 10.000.000 10.000.000 750 Meadow Lane 16,600,000 16.600.000 Tangible Personal Property Household Property 11.562.000 11,562900 23.124.000 Jewelry 46A68.CCO 46.468.000 ALdomcbiles 419.000 419.030 $ 3.943.877.000 S 129,809,000 S 4,073,686,000 Total Personal Ameb Personal Liabilities Loan payable.Bank of America (An) (470.000.000) (470.003.030) Loan payable.Bank of America (Avionelta Hldgs) (11.135.000) (11.090.000) (22.225.000) Loan payable-Bank of America (BJAV Marine) (17.897.000) (17.697.000) Note payable to APOI Trust"' (1.694.738.000) (1.694.738.000) Note payable Black Family Partners LP 142 000 C001 (42 000 0001 Total Personal Liabilities $ (2.235.770.000) S (11,090.000) S (2.246,860.000) Total Net Estate Assets S 1.708.107.000 S 118.719,000 I s 1,826,826,0001 Non-Includible Trust Assets AP01 Agreement $ 1.976.541.000 APO2 Declaration 639.926.000 Black 2011 Family Trusts (LOB 2011 LLC) 269.528.030 1999 Llle Insurance Trust 02 (second-to-die death benefit) 100.0[0.030 1992 Life Insurance Trust (second-to-dle death benefit) 20.0[0.030 Mallory Trust 4.124.000 Black 1997 GST Exempt Trust 3.007.030 Total Trust Assets Total Family Assets • GHAT AnnoLy Receivables. AGM mean value sao.00rsnare. Note provides for a maturity date of Augusl 14. 2022 and accrued annual interest of 1.63% per annum on the unpaid prindpai balance (annual payment of interest is at LDS's discretion). Page 4 of 26 EFTA01088418 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Row Chart Upon Leon's Death EX0eUlOtS; Debra Bock. Barry aM Richard Renter Cohen Leon Black Gross Estate Non Probate Properly Outright to Debra Probate Property S 2205.424.000 12 of Joint Residences n.200.000 Non Probate Properly 38.200.000 Includible Portion of GRATs 1 70 253 000 Total 38.200.000 Gross Estate 3.943.877.000 Last Will and Testament Charitable Pledges Probate Estate S 19081377.002 Dartmouth Pledge $ 19.129.000 Administration Expenses (8000.003) Art Pledged to Museums 10.731.000 Charitable Pledges (29.880.000) Total 29 860000 Liabilities Due Upon Leon's Death (541 .032.000) Residuary Assets 3.329.785.000 Note payable - to APOI Trust (1.694.738.000) Net Residue to Revocable Trust S 1.635.047.000 Truants: Debra Black. Barry Cohen aM Rchaid Ranier 1 L. B. Revoca e Trust Agreement Tangibles Outright Bequest to Debra Tangible Property Total $ 11.981.000 11.981 000 Residuary Assets: Tangibles to Debra BequestAnnuily (Melanie 8 Judy) NY Estate Tax Federal Estate Tax 1329.785.000 (11.981.000) (11.020.003) (2.852.222) (7.322.667) Cash Bequest Bequest to Melanie Spinella Balance of Revocable Trust Residue S 3.296.609.111 Total Cash Legacies Note payable - to APOI Trust 694 738 001 Net to Marital Trust S 1.60 871 1 1 Lifetime Annuity for Jud Black Annuity' Marital Trusts GST Exempt Marital Trust $ 1.840.003 Total Annuity Non-Exempt Marital Trust: Art 1.421.564.000 750 Meadow Lane 16.600.003 induddrie Portion of GRATs 1.700.253.000 Balance of Revocable Trust Residue 156.352.111 Total Marital Trust Assets 3.296.609.111 Note payable - to APOI Trust (1.694.738.000) Net Marital Trust Assets $ 1.601 871 11 ' Based on April 2014 Secton 7520 rale 01 22% aM a 20 year life expectancy. 3.000.000 3.000.000 $ 8.020. C00 8.020.000 Page 5 of 26 EFTA01088419 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Floe/Chart Upon Debra's Death Trustees of Marital Trusts upon DebraSdealb: Barry Cohen and Richard Router Lifetime Annuity for Jon Ressler Annuity 7 6970)0 7 697,0)0 Debra Black Marital Trusts (Under L. B. Revocable Trust) Net Value of Marital Trusts' annuity tor Jon Ressler' OST Exempt Marital Trust to 97 Exempt Tr. Dsbm's OST Amount to 97 Exempt Tr. Chartable Pledges (An) to Museums 750 Meadow Lane to Heritage Trust NY Estate Tax Federal Estate Tax Marital Trust Residue 779.693.077 Art Selected for Heritage Trust 1751 246.0771 Residue Passes to Foundation .447.000 1.601.871.111 (7.697.200) (1 840 COO) 11.166.404) (24.533.600) (16.600.600) 1248.133.i061 1522 207 924i 1997 C1ST Exempt Trust Trust Assets GST Exempt Marital Trust Debra's ()ST Amount Total 1997 OST Exempt Trust $ 3.007.000 $840.000 1.166.404 $ 6.013.404 Charitable Pledges Leon Black F Hilly Foundation Marital Trust Residue Debra's Revocable Trust Residue Total Added Upon Dobria's Death: 28.447.060 8 447 OCO 'See nvontory of Debra's Taxable Estate (page 8). -Based on pont 2014 Sectich 7520 retie Of 2.2% end a 19 year lire evestancy. Heritage Trust Arizona Residence Art to Legacy Trusts Total Added Upon Debra Death: 787.546.077 $ 16.700.000 4- 1.000.000 1- 2.003.000 16.600.000 751246.077 An Pledged to Museums 24.533.600 $ 24.533 SOO Debra Black Gross Estate Probate Property' Dross Probate Estate $ i 68 903 003 $ 168.903 000 Last Will and Testament Gross Probate Estate Admire ttttt Ion Expenses (2%) Residuary Estate Passes to Revocable Trust 68.900 000 13.378 01)01 65.522 000 Revocable rust Agreement of Debra Black Residuary Estate — Residences to Heritage Trust Tangibles & Jewelry to Children NY Estate Tax Federal Estate Tax Revocable Trust Residue Passes 10 Foundation t. 165.522.000 (19.700000) (66.222.345) (25.639.696) 153.959 9591 Tangibles °Lark ht to Children in Equal Shares Tangible Property 66.222345 Page 6 of 26 EFTA01088420 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations 3.943.877,000 $ 3,465,509,111 Leon's Gross Estate Debra's Gross Estate Less Deductions: Less Deductions: Liabilities (2.235.770.000) Liabilities (1.694,738,000) Administration Expenses (5,000,000) Administration Expenses (3,378,000) Charitable Deduction (29,860,000) Charitable Deduction (52.980.600) Marital Deduction (1,652,088,111) Marital Deduction Estimated New York Estate Tax (2,852,222) Estimated New York Estate Tax (273,772,802) Plus: Adjusted Taxable Gilts 5,340,000 Plus: Adjusted Taxable Gifts 5,120,000 Taxable Estate $ 23,646,667 Taxable Estate $ 1.445.759.709 Tentative Federal Estate Tax 9,404,487 Tentative Federal Estate Tax 578,249,684 Less Credits/Payments: Less Credits/Payments: Unified Credit (2.081.800) Unified Credit (2.081.800) Gilt Taxes Paid Gill Taxes Paid Estimated Federal Estate Tax $ 7.322.667 Estimated Federal Estate Tax S 576.167,884 Estimated New York Estate Tax 2.852.222 Estimated New York Estate Tax $ 273.772,802 Total Estate Tax Due Upon Leon's Death Total Estate Tax Due Upon Debra's Death 10.174,889 $ 849.940.686 Combined Federal Estate Tax 583.490.550 Combined NY Estate Tax 276.625.024 Total Combined Federal & NY Estate Taxi $ 860.115.574 Page 7 ol 26 EFTA01088421 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Inventory of Debra's Taxable Estate Following Leon's Death Marital Trust Assets: Art $ 1,421,564,000 750 Meadow Lane 16,600,000 Includible Portion of GRATs 1,700,253,000 Black Family Partners LP (8.0%) - DISCOUNT 30% 127,905,111 AP Alternative Assets 21,655,000 Apollo Related Investments 5,247,000 Investment Partnerships - Various 1,545,000 Liquid assets in GST Ex Marital Trust 1.840.000 Note payable - to APO1 Trust (1.694.738.000) Si. Total Marital Trust Assets: S 1,601,871,111 .1 -Debra's Probate Assets: U.S. Trust Cash Account $ 5,562,000 JPM Cash/Marketable Securities 6,927,000 Residences (Formerly Joint) 76,400,000 Narrows Road Parcel 10,000,000 Household Property 23,124,000 Jewelry 46,468,000 Automobiles 419,000 Net Proceeds of sale of Avionetta (49.9%) Total of Debra's Probate Assets: $ 168,900,000 Page 8 of 26 EFTA01088422 Leon D. and Debra R. Black Overview of Estate Plan Cash Mavis on Iron's Death Cash Needed at Lewis Death for Bequests, Debts. Expenses 8 Taxes GS I BeQue:t $ 1.840.000 ALtilnistration I .per 5.000.000 NY Estate Tax 2.852.222 Fed Estate Tax 7.322187 Osamulh Pledge 19.129.000 Bequest lo Mean 3.000.000 Artistry lot Judy 8.020.000 Loan payable-Bank of PANIC" (An) 470.000.000 Loan payable-Bank of PANIC" (SJAV Matine) 17.897.000 Loan payable-Bank ol PANIC" (Avictiella Midge) 11.135.000 Male payable Blank Family Pattners LP 42.000 000 Total Cash Needed S se8.195,889 I Allocation of Available Cash U.S. Trust Cash A.: L.t) All $ 25.587.000 GST Beamed 1.840600 AcknOistralion Expenses 5.000.800 NY Estate Tax 2.852.222 Fed Estate Tax 7.322.667 Annuty lot Judy 8.020.000 Balance 552.111 JPIA Cashillatketable Securities $ 8,554000 Bedues1 to Malaria 3.000.000 Batance 5.556.000 Total Reaudring Avalatie Cash $ 8.108.111 Allocation of Cash to be Raised I.902.295.000 Sokl lo Pay. Bank of Ametoit loan (Ail) (470.000.0001 470.000.000 1.432.295.000 BJAV MaarasYtdhl 5 22.121.000 22.121.000 Sold lo pay: Bank of Ametoit loan 117.897.0001 5 4.224.000 Amonetta-Airplane (Leon's 50.1%) 4 11.135.000 11.135.000 Sokl lo pay: Bark of Arnetica loan I11 135 000) $ Black Famej Pain's. LP Wilmette (8%) 178.702.000 Redeemed IC pay: Nate lo Black Family Pallets. LP. (x2.000.000) 42.000.000 Sold lo pay: Dailmadh Pledge (8 708 889) 8.796.889 127.905.111 Datbnoulti Pledge US Trust Cash Account balance S 552.111 JPM Account balance 5.558.000 Yacht sale proceeds-balance 4224.000 BFP sale proceeds 8.798.889 19.129.000 Total Cash Raised Total Cash Available and Raised 554,062,889 $ 688,195,8891 Page 9 0128 EFTA01088423 Leon D. and Debra R. Black Oveniew of Estate Plan Cash Needs on Debra's Death • Debra's Estate Cash Needed in Debra's Estate for Bequests, Debts, Expenses & Taxes Administration Expenses NY Estate Tax Fed Estate Tax 3.378.000 25.639.696 53.959.959 Total Cash Needed Is 82,977,655 Allocation of Available Cash US Trust Cash Account 5,562.000 JPM Cash/Marketable Securities 6,927.000 Avionetta Sale Proceeds Total Available Cash $ 12,489.000 Administration Expenses (3.378.000) Total Remaining Available Cash 9,111,000 Allocation of Cash to be Raised Residences Sold to Pay Estate Tax 760 Park Avenue $ 20.000.000 All Narrows Rd. Parcels 30.000.000 1 Parcel Meadow Lane 16.700.000 Total Residence Proceeds $ 66.700,000 Jewelry Sold to Pay Estate Tax Total Jewelry in Estate $ 46.468,000 Sold To pay NY Estate Tax (3.788.655) 3,788.655 Balance of Jewelry: $ 42.679.345 Federal Estate Tax Residence sale proceeds $ 53.959.959 53.959.959 New York Estate Tax Residence sale proceeds $ 12.740,041 Jewelry sale proceeds 3.788,655 Remaining available cash 9.111.000 $ 25.639,696 12.740.041 Total Cash Raised $ 70,488,655 Total Cash Available and Raised $ 82,977,655 Page 10 of 26 EFTA01088424 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Debra's Death - Marital Trust Cash Needed In Marital Trust on Debra's Death for Bequest, Debts, Expenses & Taxes Note Payable- APOI Trust $ 1,694,738,000 Annuity For Jon 7.697.000 Bequest of Debra's GST Amount 1.166.404 NY Estate Tax 248.133.106 Fed Estate Tax 522,207.924 Total Cash Needed I S 2,473,942,434 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust S 1.828.158.111 Distributed BFP (Includible Portion of GRATs) (1,694.738.000) Sold To pay Jon's Annuity (7.697.000) Sold To pay Debra's GST bequest (1.166.404) Sold To pay taxes (124.556.707) Balance of BFP S Note Payable APO1 Trust BFP Interests Distributed 5 1,694.738.000 1,694.738.000 Art Sold and Distributed Art in Marital Trust 5 1,421,564.000 Distributed To Museums (24.533.600) Sold To pay tax (645.784.323) Balance of Art 5 751.246.077 Annuity for Jon BFP sale proceeds S 7.697.000 7.697.000 Bequest of GST Amount BFP sale proceeds S 1.166.404 1,166,404 New York Estate Tax Art sale proceeds $ 248.133.106 248.133.106 Federal Estate Tax BFP sale proceeds 5 124.556.707 Art sale proceeds 397.651.217 5 522.207.924 522.207.924 Total Cash Raised S 2,473,942,434 1 Page 11 of 26 EFTA01088425 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust How Chart- Following Debra's Death Tnatees: Barry Donag. Richard Ressler. John Hannan. Berramn Owe. Joshua Blast Alexander Main and 'reform Black Trustees Barry Doha,. Richard Resent and John Hannan Legacy Trust nib Benjamin a Brack Heritage Must Trust Assels Nei ol Liablifies) Added Upon Oetra's Death: 750 Meadow Lane Debra's Residences Art Stied kw Legacy TnnIS Taal S 787.646,077 16.600.000 19,700.000 751,246,077 Single "Per Trust A single Heritage Trust is amigo for Debra and Lear's descendants and foto separate Legacy Trusts are created (one for each ol Leon's children). The Trustees may dstribute income and principal go Debra and Leon's descendants. subject to the oisuiturtn viddines wined in be Trust Agreernewl. Alter Leon's death. an andcollet-tries held in the Merilage Trust designaled for a particular child will be disfibured to such chikf s Legacy INN. After Defies death. simitertydesignaled items in be Marital Trust wll be selected by the Trustees lo be held in a chiefs Legacy Trust. Alter Leon's death the Trustees shall daggers* me rearming amounts to eachchild's Legacy Trust. 1 $10 milker when the child miens age 30 (request d is used to acquire a principal residence). 2 650 mincer when the child mains age 35. 3 $100 mean when the Mild altains age 40. If a child dies under an, 40.1lke tbtli amourts wit be divided blo shares for the adds descendards and each share wll be held in a generale Legacy Trust for each such descendard. Separate Legacy Trials During the beneficiary's Memo: 1 The Trustees may pay Ihe income and pawner to the beneficiary subsea to disubarengudeeres (the descendani's financial acumen, marital dscord creditor claims. pendng Regalia% or substance abuse). 2 Trustees are aultwized lo invest in a business verdureproposedby the beneficiary. so law as its a career commitment. 3 Alter age 35. the beneficiary is a co-trustee of hither Legacy Trusl. Al the tenenciarys death: A chid may by Will aprioird she remering Dun properly among Leon's descendants and ups SI 0 minor, in tavor of a spouse. Any properly not appariled will be divided in equal shares for the beneficiary's chicken. Legacy Trust bib Joshua M. Black Legacy Trust Ebb Alexander S. Stack Artwork $ 187.811.519 Cash Distribution Legacy Trust tiro Vic-Iona R. Back Page 12 of 26 EFTA01088426 Leon D. and Debra R. Black Overview of Estate Plan APO( Agreement Flow Chan - Following Debra's Death Trustees: Barry Cohen. Thchard Ressler and John Haman Trustees. Barry Cohen. Fochard Ressler and John Kansan Alter age 35. each Beneficiary Is a einnatee of twit Separate Trust APO1 Agreement Trust Assets Repayment of Note Payable Less 34% Capital Gains Tax (Combined Federal. NY 8 NO Surtax) Total 28 i 803.000 1.694.738.000 (576.210.920) $ 1,400,330.080 Single Discretionary Trust A single Discretionary Trust is created for Debra and Leon's descendants until the Trustees decide to create and fund Separate Trusts for descendants (each called a 'Beneficiary' of higher Separate Trust). The Trustees may distribute income and principal to Debra and Leon's descendants. subject to the distribution guidelines outlined the Trust Agreement. Instead of makig distributions to a descendant. the Trustees may distribute to hisiher Separate Trust. Discretionary Trust terminates 21 years after the death of the survivor of Leon's children and Debra. The romaine's) trust property will be distributed to Leon's descendants or if none. to Leon's estate. Separate Trusts During the Beneficiary's lifetime, the Trustees may pay the income and principal to the Beneficiary after considering the Beneficiary's circumstances (financial acumen. marital discord. creditor claims. pending litigation. substance abuse. etc.). Each Separate Trust terminates on the Beneficiary's death and is distributed to the Beneficiary's descendants as the Beneficiary appoints by Will. Unappointed property will be divided for the Beneficiary's descendants and held in Separate Trusts subject to the same trust terms and Trust Agreement. Separate Trust Mat Benjamin E. Black 350.082.520 Separate Trus libt Joshua M. Black 350.082.520 Separate Trust Marra Alexander S. Black 350.082.520 Separate Trust f.t.'o Victoria R. Black S 350.082.520 Page 13 of 26 EFTA01088427 Leon D. and Debra R. Black Overview of Estate Plan APO:2 Declaration now Chart - Following Debra's Death Trustees: Barry Cohen. Richard Ressler and John Harvey, Trustees: Barry Cohen. Richard Ressler at Jahn Hann After age 35. each BeeelIeiary Is a co-Trustee or Whet Separate Trull Separate Trust fte Benjamin E. Back APO2 Declaration Trust Assets (Net of Liabilibes) 639.926.000 Added Upon Debra's Death: Total 639 926 000 Single Discretionary Trust A single Discretionary Trust is created for Debra and Leon's descendants until the Trustees decide to create and fund Separate Trusts for descendants (each called a 'Beneficiary of higher Separate Trust). The Trustees may &stribute income and principal to Debra and Leon's descendants. subject to the distribution guidelines outlined the Trust Agreement. Instead of makflg distributions to a descendant, the Trustees may distribute to hisiher Separate Trust. Discretionary Trust terminates 21 years after the death of the survivor of Leon's children and Debra. The remaining trust property will be distributed to Leon's descendants or if none. to Leon's estate. Separate Trusts Dural() the Beneficiary's lifetime. the Trustees may pay the income and principal to the Beneficiary after considering the Beneficiary's circumstances (financial acumen, marital discord. creditor claims, pending litigation, substance abuse. etc.). Each Separate Trust terminates on the Beneficiary's death and is distributed to the Beneficiary's descendants as the Beneficiary appoints by Will. Unappointed property will be divided for the Beneficiary's descendants and held in Separate Trusts subject to the same trust terms and Trust Agreement. Separate Trust fihro Alexander S. Black Separate Trust Victoria R. Black Page 14 of 26 EFTA01088428 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Black 2011 Family Trust Flow Chart - Following Debra's Death Trustees: Barry Cohen and John Hannan Administrative Trustee: U.S. Trust Company of Delaware 2011 Trust Ube° Benjamin E. Black $ 72.382.003 Black 2011 Family Trust LDB 2011 LW $ 289.528.030 1. Property is held in four separate Trusts: one for each child: 1 Prior to age 25. Trustees have discretion to pay the child income. 2 After age 25. child receives all trust income quarterly. 3 Trustees have broad discretion to distribute principal to the child. 4 Each child's trust terminates upon the child's death: II Leon and Debra are deceased and child was over age 35. child may appoint the principal of hisrher trust to Leon's issue. Unappointed assets will pass to child's issue. subject to lifetime trusts. 2011 Trust llyo Joshua M. Black $ 72.382.000 2011 Trust lbo Alexander S. Black $ 72.382.000 2011 Trust RV° Victoria R. Black $ 72.382.030 Page 15 of 26 EFTA01088429 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Leon D. Black 1999 Life Insurance Trust #2 Flow Chart - Following Debra's Death Trustees: Barry Cohen. John Hannan and Richard Ressler 1999 Trust f/blo Benjamin E. Black $ 25.000.000 1999 Life Insurance Trust in Combined Death Benefit: S 100.000.000 Upon the death of the survivor of Leon and Debra. Trust principal is divided into separate trusts: one for each of Leon's children. 1 Prior to age 21. Trustees have discretion to pay the child income. 2 After age 21. child receives all trust income quarterly. 3 The Trustees have broad discretion to pay principal to the child. 4 Each child's trust terminates 21 years after the death of the survivor of: - Leon. Debra and their issue living on 9/13/99. 5 Child has a testamentary power to appoint the trust to his/her issue. - Assets not appointed will pass to the child's issue. 1999 Trust 1/bit Joshua M. Black $ 25.000.000 1999 Trust f/b/o Alexander S. Black $ 25.000.000 1999 Trust f/t3/o Victoria R. Black $ 25.000.000 Page 16 of 26 EFTA01088430 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Debra and Leon D. Black Life Insurance Trust Flow Chart - Following Debra's Death Trustee: Barry Cohen 1992 Trust kW° Benjamin E. Black $ 5,000.000 1992 Life Insurance Trust Death Benefit: $ 20.000.063 Upon the death of the survivor of Debra and Leon. Trust is divided into separate trusts: one for each of Leon's children. 1 Prior to age 25. Trustee has discretion to pay the child income. 2 Alter age 25. the child receives all trust income quarterly. 3 Trustee has broad discretion to pay principal to the child. 4 Trustee is authorized (il deemed advisable) to distrbute principal: - 1/4th at age 30; - another 1/3rd at age 35: - another 1/2 at age 40: and - the balance of the child's trust principal at age 45. II the child dies prior to age 45. assets will pass to the child's issue. subject to Iru 1 until age 45. 1992 Trust bb/o Joshua M. Black $ 5.000.000 1992 Trust tiblo Alexander S. Black $ 5.000.000 1992 Trust lihro Victoria R. Black $ 5.000.000 Page 17 of 26 EFTA01088431 Leon D. and Debra R. Black Overview of Estate Plan Black Family 1997 CST-Exempt Trust Flow Chart - Following Debra's Death Trustees: Barry Cohen. John Hannan and Richard Ressler Separate Trust Irbro Benjamin E. Black 1.503.351 Black Family 1997 GST-Exempt Trust Trust Assets (Net of 3.007.000 Added won Debras death GST Marital Trust .640.000 Debra's GST Bequest 1.166.404 Total 6,013,404 Upon the death of the survivor of Leon and Debra. trust ptinapal is divided lito separate trusts: one for each of Leon's children. 1 The Independent Trustees have discretion to pay income and principal to the child. 2 After age 25. ctild can urilhdraw up to 3% of the 'retinal of the child's trust and can appoint the principal at death to anyone (except his/her credithes or estate). 3 After age 35. Trustees are requested to pay 10% of the principal of the child's trust to the child. 4 The child's trust terminates at the child's death. Any properly not appointed will pass to the child's issue (subject to a continuing trust). Jr Separate Trust Ciro Joshua M. Black 1.503.351 Separate Trust be Alexander S. Black 1.503.351 Separate Trust rbo Victona R. Black S 1.503.351 Page 18 of 26 EFTA01088432 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Mallory Trust Flow Chart - Following Debra's Death Trustee: Richard Ressler Trustees: After age 35. a child can be co-Trustee of his/her separate Trust. Trust f/b/o Benjamin E. Black $ 1.031.000 Mallory Trust Assets 4.124.000 1 Upon the death of the survivor of Leon and Debra. any property not appointed by Leon at his death will be divided into per slirpital shares for Debra's descendants. 1. Each share for a descendant of Debra will be held in a separate Trust for the lifetime of the beneficiary: - The Independent Trustee must distribute income and principal needed for the beneficiary's health, education. support and maintenance. - The Independent Trustee also has broad discretion to distribute income and principal to the beneficiary for any purpose. - Alter age 35. the beneficiary may appoint income and principal among Debra's descendants. 2. Al the beneficiary's death: The beneficiary's Trust will terminate and will be distributed as the beneficiary appoints. Any property not appointed will be distributed to his/her descendants. subject to the same trust terms. 4, Trust f/b/o Joshua M. Black $ 1.031.000 Trust WO) Alexander S. Black 1.031.000 Trust kilt Victoria R. Black 1.031.000 Page 19 of 26 EFTA01088433 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 DIStribuilOna to adidren and Cbaritage Institutions Upon Leon'a/Debra's Death family Womam Wan LOGO'S Upon Doetax Flanntm ProMeat Demn Oattn Benfrinin E. Sink /POT 14t6emm Tam lot tile M.062.520 ' AP02 Occlarabon Tom lorlito 159.981.5C0 19921noutarco Trint Total »DI ago 45 5.000.000 1999 snausne Trutt 82 Tam lot tile 25.000.000 hfrnmtint ard18024YT841 %allot14e 156186519 1987 GST Exorrat Tema Tom lorlito 751.601 Thins Black 2011 Fainl/f Trust Trust lortilo 72.3821:0) ',agog Trual Tani lot UM 1.031.03) TM Mtn Ototithi from Crotnis Emme Outn" 16.556600 Joshua IL Sink A OPl /peewee Tiosi lot Life 350.082.520 ' AP02 DtelanlhOn Taal lot 1.99 159.961.500 1992 Insurance rant Toni isms ago 45 5.000.00) 1999 Insurance Tani //2 Trust lot tiro • 24000.000 Fleet». and Lowy Trott %to lot UM 196261.519 1587 GST Extmmt hust Tam lo, UM 751/01 751.730 Black 2011 Farnl/; Taust Toni loft» 72.382.000 taldy Trust Trust loft» 1.031.00) Toruelof Cv(r gill from Debra's fatale Oink» 16.556600 - Almond& S. Boa AP01 aranont Trusi loft» 350.042520 »02 Ottlatation Taal lot tile 159.961.500 1992 ImAnonee Trust Tritet vol age 45 5.000.000 1999 Insurance Toni *2 Trust lot tiro • 2400000) ~WO and Legacy In» Tani lot tiro 194886.519 1997 OST EØ Trust Tasta lot UM 751.601 751.750 onek 2011 Family Tant Taal lot tile 72.382.000 manmy Trust Tani lot Lilo 1.031.000 Tan3mos Ommgm from Doha. Emato ~gm 16/56.000 • • Tani loft» Tani loft» TnalluM1 age 45 Tam lot tile Toni lot Lilo Toni kw Lilo Tron lot tile Timm lot UM Gann morons R. Slid APO' Antomoni A1402 Doclaranon 1992 Insure», Tnnt 1999 Ineurenee Tan* #2 ~ago areaway Irma 1997 G51 Eparnpt In» Mock 2011 Far», Tani Me og Tron Targblos OutngN from BOGYS kino 196/86519 751.601 14554000 360.082.520 159.981.5C0 5.000.000 25.000.000 ist.no 72.382.000 113,103 ~My MI ~god Mangum Coalinoula Mona* Loon °MO Firmly FotmclMoo 10.731.000 19.129.000 24.533600 35.447.0t0 EMITaltd Taxes and Expenses »dotal Estato Tax /4» York Ewe, Tax Actmoint anon Expenses Fototal 8 NY Caps Gate lax andN.1a' batallos 7322.347 576.167.884 2152222 273.772.802 5.000.000 3278600 576210.920 541.032.000 1.694.738.0:0 ' »01 Trust coda»! try 34K cm:addons lax podia Loris &mar stal 'aspect lo Ito S1.838.667.370 84310 In» Loon assumod lo haw/axon, baud. 828.422.8901 Is 828.422.890 I I8 828.422.890I 828.422.890 I8 82,840.8001 I $ 3.6ø.474.494I Page 20 of 26 EFTA01088434 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Black Family Partners - Financial Inventory Detail as of April 16, 2014 Assets Cash U.S. Trust Cash Account JP Morgan Cash Account Marketable Securities Lone Cascade LP Millennium Group USA LP Canyon Value Realization Fund LP Anchorage Capital Partners LP FCI Co-Invest 0 (A) LP AINV shs dist fr AIC King Street Capital LP Environmental Solutions Worldwide Illiquid Assets Investment Partnerships: Knowledge Universe LP Sustai,able Woodlands LP HAC Capital Fund LP Wolfensohn Capital Partners LP iCrete LLC Tenter° Holdings Fund I LP Rely Labs 44% Interest BRH HIdge Apollo Co-Invest VI (A) LLC Apollo Value Co-Invest LLC Apollo Co-Invest V LLC SOMA Co-Invest LLC Apollo Co-Invest III LLC AP Alternative Assets LP Apollo Co-Invest IV LLC T-Ink. Inc. Convertible Promissory Note- ESWW Credit Lire - Phaidon Global TRA Dividend - July 2007 Transaction Note due from LDB Note due from Narrows Fildgs Note due from PLB LLC $ 8.789,000 1.525,000 35.075,000 23.567,000 18.604,000 17.394,000 12.041,000 5.016,181 49,000 4,000 33.771,000 19.090,000 3.141,000 2.067,000 1.501.000 494.000 188.000 2,781,815.000 38.075.000 8.052.000 3.551.000 3.063.000 2.151.000 933.000 539.000 100.000 2.941.000 8.600.000 88.100.000 42.000.000 25.000,000 3 200 0C0 Total Assets (Undlscounted) $ 3,190.436,181 Discount • 30% '957.130.8&1' Total Assets (Discounted) $ 2,233,305.327 'AGM mean value S30Share. Page 21 of 26 EFTA01088435 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Includible Portion of APO GRATs as of April 16, 2014: Includible Value of APO GRATs APO1 GRAT' 837,425,863 APO1 GRAT No. 2" 735,009,343 APO1 GRAT No. 3*** 127,817,701 Total $ 1,700,252,908 Rounded Value: [s 1,700,253,000 *34.9794% limited partner interest in Black Family Partners, L.P. "31.7671% limited partner interest in Black Family Partners, L.P. m5.5335% limited partner interest in Black Family Partners, L.P. Page 22 of 26 EFTA01088436 Leon D. and Debra R. Black Overview of Estate Plan Personal Real Estate--Financial Inventory As of April 16, 2014 Leon Debra Total Jointly Owned Residences 760 Park Avenue, NY, NY 750 Park Avenue, NY. NY 5226 E. Desert Vista Rd. AZ 766 Meadow Lane and 3rd Parcel, Southampton, NY 190 and 200 Narrows Road, Bedford, NY Total Jointly Owned $10,000,000 500,000 1,000,000 16,700,000 10,000,000 $ 10.000.000 500,000 1.000,000 16,700,000 10,000,000 $ 20.000.000 1,000,000 2,000,000 33,400,000 20,000,000 $38,200,000 $38,200,000 $ 76,400,000 Individually Owned Residences 3rd Parcel Narrows Road. Bedford. NY' 750 Meadow Lane. Southampton, NY" Total Individually Owned 16,600.000 $ 10,000,000 $ 10,000,000 16.600,000 $16.600,000 $10.000.000 $ 26.600.000 Total Personal Real Estate $ 54.800,000 $ 48.200.000 $ 103.000,000 Total Liabilities - Net Value L$ 54,800,000 $ 48,200,000 $ 103,000,000 'Allocates $30 million value equally among the three Narrows Road parcels. **Allocates $50 million value equally among the three Meadow Lane parcels. Page 23 of 26 EFTA01088437 Leon D. and Debra R. Black Overview of Estate Plan APO1 Agreement - Financial Inventory As of April 16, 2014 Assets Cash and Marketable Securities $ 12,298,000 Apollo Credit Opportunities 40,838,000 Note Receivable From Leon D. Black 1,694.738,000 Note Receivable From APO2 Declaration 86,436,000 Art 142,231,000 Total Assets $ 1,976,541,000 Includes assets held through LBF Holdings LLC. Page 24 of 26 EFTA01088438 Leon D. and Debra R. Black Overview of Estate Plan APO2 Declaration - Financial Inventory As of April 16, 2014 Illiquid Assets Cash & Marketable Securities Black Family Partners LP (12.5498%) - DISCOUNT 30% Investment Partnerships - Various Apollo Related Investments Other Assets $ 16.851,000 280.275,352 5,088,000 889,000 298,000 Art 348.899,000 Phaidon Investment - AT COST 54,000,000 SH Meadow Lane LLC 8,312,000 101 Warren Street LLC 3,500,000 OFH LLC - NET VALUE 8.250.000 Total Assets $ 726 362,352 bil Net Assets Note Payable to APO1 Agreement (86,436,000) $ 639,926,352 Page 25 of 26 EFTA01088439 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 LDB 2011 LLC - Financial Inventory Detail Assets Cash and Marketable Securities $ 24.779.000 Illiquid Assets Black Family Partners LP (7.1685%) - DISCOUNT 30% 160.094.492 Apollo Related Investments 19.827.000 Investment Partnerships 2.394.000 Art 72.750.000 Phaidon Global - AT COST 10.000.000 Total Assets $ 289,844,492 Liabilities Liabilities (316.164) Total Liabilities $ (316,164) Net Value of Trust $ 289,528,328 Rounded Value: I $ 289,528,000 Page 26 of 26 EFTA01088440