illuminant of 2007 Annuity Payments

illuminant of 2007 Annuity Payments 1 Name of DRAT Annuev Payment Due ) can Panclnal Due Loan Interest Due Net Annuity Payments Due to Leon Judah Investment Trust A 2 Judah Investment Trust B S 703,069.77 703,869.77 3 Judah Investment Trust C 1,829,070.02 1,829,070.02 4 Judah Imeettnent Trust D S 22,603,141.76 (20.000,000) (663,726) 1,949,416.73 Judah Investment Trust E 112,520,026.88 (100000.000) S (2.198,630) 10,321,395.74 6 Judah Investment Trust F S 4.758058.16 4,76655616 7 Judah Investment Trust G 43,124015.21 (40,000,000) (416.274) 2,708.14124 8 Judah Investment Trust H 10010,205.01 (6000,000) S (183,432) 5,146,773.50 9 Judah Inentmen1 Trust I $ 48,973,473.82 S (40000,000) S (112,863) 8,860,610.81 10 Judah Invirstmenl Trust J 39,902076.14 (25000,000) $ (155,370) 14,747,10627 11 Judah Investment Trust K 5,222,185.76 S 6,222,185.76 Total S 289,947,419.53 S (230000,000) (53.700,295) 4' E. 50,247,126J% Summary of Loans Made to Leon Black In 2007 Amount 7brouctit2ROI2007 Actived Interes Accrued Interes PAELEtlatikild /salty Account LBF HoWings 61 Account From Judah Trust D 20,000,000 653,726 S 20,653.726 From Judah Trust E 100,000,800 s 2.198,630 102,198,630 From Judah Trust G S 40000,000 416,274 40,416,274 From Judah Trust H S 6,000,000 163,432 S 5,163,432 From Judah Trust) S 40.000,000 S 112.863 S 40,112,843 From Judah Trust J S 26.000,000 155.370 $ 25,155,370 Tonit 3.700295 S 233,700,296 230.000,000 Summary of Withdraws/6 by Leon Stack in 2007 ASO= Black Family Partners Account Total: Summary of Transfers to Leon Black In 2007 6222981 LBF Holding* LLC 51 Account LBF Holdin0s LLC SI Account Total Transfers Total Amount Received by Leon Black In 2007 Amami 25,000,000 (personal sandal) BMW! 230000,000 (Icons) 56,247,125.01 (annuhies net of loan reproof* "S"'' -'4F-286.247025' S 24 125 EFTA01146200 Account Balances OF Holtinas it Account Judah madmen( Trust A (AM III) Judah nvestmert Trust B (AM DI) Judah madmen' Trust C (AM V) Juan nveslment That D (AM VO Judah nvestmeri Trust E (AIM) J0101 Investment Trust F (Vacua) Judah nvestrimr4 Trust 6 (SVF) Judah nveslmont Trust H (Asia) Judah rrxstment Trust I (Europe) Judah nvesbnenl Trust J (MA) Initial Balance Loan b Leon Wittelanvais WI Amyl*, Paymer4 nakt0211 Transfer From B.0 Maim S • 536.199 5 (703,870) 5 (167670) S 105,284 17,613 1.90055 5 (1629.070) 5 153,965 5 685.245 839,229 31,495,360 610600,0031 $ (1,949,416) 5 9.545944 S 10.883.223 20,429467 132,293071 (1026000(0) S (10.321396) S 21,681,675 S 46.602,777 67,564,452 9.432.703 S (4.758.556) S 4674147 S 3.259471 7.933.618 68.655.938 5 (4060000 S (2.706,141) S 23,958.797 S 23,038.763 46,995,561 9.917,318 5 (5,803,0066 S (5.146.774) S (229,456) S 3,426.930 3,197,474 $ 104.750539 5 (40.0:0.000) S (0.630,611) S 55.689,929 S 36,194553 92.06482 77.105.343 $ 05,000,000) S (14.747.108) S 37.358,237 S 26,643.755 64,001,992 Total S 434,033.527 $ 030,006000) - s (51.024.919) S 153.065.568 S 150.000,030 303,065,5138 Black Porde., Partners. LP Account Weal Balance Loan kr Leon Withdrawals Net Annuity Payment Tranakr to Sc ft 1/1/2008 Balance LBF Holencrs LLC Judah 'macaw* Trial K Judah investment 7041 L Judah Inveslnlct Trust M Judah Imeslment Trust N Judah Investment Trust 0 317557.008 7.405.356 8.965,213 21.920.775 18,297,487 20.073.814 S (5.222.158) (150000.000) 167,557,008 2,183.170 8,985.213 21,920,775 18.297,487 20.073.814 Leon D. Black Investment Trusts A S 9,452,735 9,452.735 Bleck Family 1997 70..81 8,677,904 8677.904 1992 rustler Joshua Max Black 6351,636 sass.sse 1992 trunks Banjamin Ell Back 6,751,636 6,751.636 1992 trust for Alexander Samuel Btack $ 6,751636 6,751,06 1952 trust tar Wiens Rachel Mack S 6751.636 6,751.636 1958 trust for Joshua Max Black 299.704 299.704 190 rust for Beesamin Es Back 299.704 299.704 1966 rust for Alecandet Samuel Bleck S 299,704 299.704 1936 trust to Vs:lona Rachel Black 299.704 299,704 :C400.061:60106810115):ii;... 29.20888' • S (25.000.060) 409.3 Total. S 469.784.984 (525.020,010) (5.222.106) S (1so.omoso) 289,562,799 EFTA01146201 CASH RECONCILIATION-2007 DIP 5492 7-Apr 7-Jul 12/31/2007 Ff l:Sljg LEIFIII a/c 4544 LBF s2 ale 4902 TOTAL $ 431,696,805 dep-Dividend 431,696,805 $ (50.000.000) loan taken $ (32.000.000) KUE funded $ 2,388,409 addl Div 742 5,312 addl Div $ 12.200.000 interest S 8.854.879 July Inc $ (394.422) check pd 460,646,600 strategic ea* $ 4.063,547 Aug income $ (100.000.000) loan taken 8/14 $ (982.881) cap call $ (20,003,000) loan laken9/17 $ (5000,000) loan taken 9/28 $ (10,000,000) PFPC funded $ 1.346.261 Oahe (5,000,000) loan taken 11/6 $ 2.313,366 Nov inc (20.000.000) loan taken 11/5 $ (713,514) checks pd $ (20.000.000) loan taken 11/8 $ (819.068) Mack pd 121,198 Dec inc $ 8,541,514 balance (25,000,000) cap WI) 11/28 $ (15,000,000) loan taken 12/10 (900,000) HAG Cap funded (2.000.000) Crete funded $ (56.247,125) DecGRAT pay (50,000,000) LorteFIne funded $ 7500.000 Interest $ 308.718,330 balance 200,457,682 balance $ 517,717,426 EFTA01146202 Summary of 2008 Annuity Payments Annuity Payment Du Net Annuity Payments Income taken Due to Leon Loan prin due Interest Payments net of loan repay Name of GRAT 1 Judah Investment Trust A $ 2 Judah Investment Trust B $ 844,644 $ (122,026) $ 722,618 $ 722,618 3 Judah Investment Trust C $ 2,194,884 $ (451,300) $ 1,743,584 $ 1,743,584 4 Judah Investment Trust D $ 27,123,770 $ (7,167,637) $ 19,956,133 $ 199,562,133 5 Judah Investment Trust E $ 135,024,031 $ (30,086,454) $ 104,937,577 $ 10,000,000 $ 107,000 $ 94,830,577 6 Judah Investment Trust F $ 5,710,267 $ (2,146,672) $ 3,563,595 $ 3,563,595 7 Judah Investment Trust G $ 51,749,298 $ (15,171,899) $ 36,577,399 $ 36,577,399 8 Judah Investment Trust H $ 12,372,246 $ (2,256,959) $ 10,115,287 $ 10,115,287 9 Judah Investment Trust I $ 58,768,169 $ (23,838,873) $ 34,929,296 $ 34,929,296 10 Judah Investment Trust J $ 47,882,971 $ (17,547,447) $ 30,335,524 $ 30,335,524 11 Judah Investment Trust K $ 6,266,663 $ 6,266,663 $ 6,266,663 $ 347,936,943 $ (98,789,267) $ 249,147,676 $ 10,000,000 $ 107,000 $ 239,040,675 LBF Holdings $ 110,000,000 $ 1,761,852 $ - 12 Judah Investment Trust L $ 11,190,156 0 $ 11,190,156 $ 8,000,000 $ 64,493 $ 3,125,663 13 Judah Investment Trust M $ 29,041,930 0 $ 29,041,930 $ 21,000,000 $ 148,774 $ 7,893,156 14 Judah Investment Trust N $ 60,058,911 0 $ 60,058,911 $ 18,000,000 $ 145,110 $ 41,913,801 15 Judah Investment Trust O $ 0 $ $ 25,000,000 $ 356,617 $ Leon D Black Investment Tr A $ 9,000,000 $ 130,598 $ Black Family 1997 Trust $ $ $ 9,000,000 $ 130,598 $ $ 100,290,997 $ 100,290,997 $ 200,000,000 $ 2,738,042 $ 52,932,620 Total payments scheduled $ 448,227,940 $ 349,438,673 $ 210,000,000 $ 2,845,042 $ 291,973,295 Page 1 (cont'd below) EFTA01146203 Date of loa Calculation of Loan Interest GRAT Rate Days out Int due Int paid int credit Repayments on June4,2008: Original Outstand repay 6/5/08 4/17/2008 $ 20,000,000 $ 20,000,000 Judah M 5.35% 48 $ 140,712 $ 140,712 4/10/2008 $ 1,000,000 $ 1,000,000 Judah M 5.35% 55 $ 8,062 $ 8,062 4/10/2008 $ 18,000,000 $ 18,000,000 Judah Tr N 5.35% 55 $ 145,110 $ 145,110 4/10/2008 $ 8,000,000 $ 8,000,000 Judah Tr L 5.35% 55 $ 64,493 $ 64,493 4/10/2008 $ 13,000,000 $ 13,000,000 Judah Tr O 5.35% 55 $ 104,801 $ 104,801 4/10/2008 $ 110.000,000 $ 80,000.000 LBF 5.35% 55 $ 644,932 $ 684.467 $ 39,535 $ 170,000,000 $ 140,000,000 $ 1,108,110 $ 1,147,645 $ 39,535 Repayments on Dec 20, 2008 credit Int mid 4/10 Bal $ 30,000,000 $ 30,000,000 LBF 5.35% 254 $ 1,116,920 $ 39,535 $ 1,077,385 New loans 7/21/2008 $ 10,000,000 $ 10,000,000 Judah Tr O 0 152 $222,794 $ 222,794 9/12/2008 $ 20,000,000 $ 20,000,000 see below $ 2,000,000 Judah Tr O 5.35% 99 $ 29,022 $ 29,022 S 9,000,000 Inv Tr A 5.35% 99 $ 130,598 $ 130,598 S 9,000,000 97 Trust 5.35% 99 $ 130,598 $ 130,598 10/08/208 $ 10,000,000 $ 10,000,000 Judah Tr E 5.35% 73 $ 107,000 $ 107,000 $ 40,000,000 $ 40,000,000 $ 2,845,042 $ 620,012 Total Loans $ 210,000,000 $ 210,000,000 $ 2,845,042 $ 2,845.042 EFTA01146204 Calculation of Net Annuity Payment Scheduled Less Income Net payment due Grat Due payment Distributed before loan repay Judah Tr L 6/5/2008 11,190,156 Judah Tr M 6/5/2008 29,041,931 Judah Tr N 6/5/2008 60,058,911 100,290,998 - $ 100,290,998 615/08 Payments Grat Pay due 100,290,998 Income due Leon* 78,789,268 Loan repayment•" (141,147,645) 37,932,621 net cash paid to Leon *Included in income: 1Q BFP Inc 6,792,264 1Q LBF Inv Inc 3,254,205 BFP Inc - Apr&May 21,518,906 (=$20,873,087+$645,819) 31,565,375 "see Loan Int Tab All of the above was calculated 6/4/08 before 6/5/08 Grat payment Net Payment due Grat Due Scheduled Payment Less Inc dist". before loan repay Judah Inv Tr A 12/20/2008 Judah Inv Tr B 12/20/2008 844,644 (122,026) $ 722,618 Judah Inv Tr C 12/20/2008 2,194,884 (451,300) $ 1,743,584 Judah Inv Tr D 12/20/2008 27,123,770 $ (7,167,637) $ 19,956,133 Judah Inv Tr E 12/20/2008 135,024,031 $ (30,086,454) $ 104,937,577 Judah Inv Tr F 12/20/2008 5,710,267 $ (2,146,672) $ 3,563,595 Judah Inv Tr G 12/20/2008 51,749,298 $ (15,171,899) $ 36,577,399 Judah Inv Tr H 12/20/2008 12,372,246 $ (2,256,959) $ 10,115,287 Judah Inv Tr I 12/20/2008 58,768,168 $ (23,838,873) $ 34,929,295 Judah Inv Tr J 12/20/2008 47,882,971 $ (17,547,447) $ 30,335,524 Judah Inv Tr K 12/20/2008 6,266,663 - $ 6,266,663 347,938,942 S (98,789,267) $ 249,147,675 "• $78,789,267 dist 6/5 + $20,000,000 dist Aug '08 12/20/08 Payments Grat payment due Income already dist Net Grat payment due Loan repayment to Judah Tr E Grat payment due from LBF Grat payment due from BFP Loan repayments w/Interest' $347,936,942 $98,789,267 $ 249,147,675 (10,107,000) 232,773,999 6,266,663 (61,590,397) 177,460,266 net cash paid to Leon EFTA01146205 CASH RECONCILIATION-2008 DETAIL FP 5492/4384 31-Dec $ 12,185,558 dap 1tom1101420 $ 7,606,612 from APH $ (1074,988) cap cal (3,000,003) trans to 0135 31-Jan $ 14,949,107 $ 3,826,220 Vans fr 0135 Inc BFP 0135 $ 8.541,514 $ 3,000,000 trans from 5492 1,019013 no Colnc IV $ (10,027,129) cap calls LEIFS1 acct 4548/8049 $ 306.718,330 w/acc inc $ 2,546,771 $ 309,240,323 $ (877,398) cap call $ 69,862,066 Inc ApolloV&Colnv 28-Feb $ 18,815,313 $ $ 2,441,714 10, bfp Ent inc $ 3144ar $ 18,814,445 $ $ 51,860,584 Iran from LBF*2 $ $ 86,964,802 Iran from BFP 0135 $ $ (20,000,000) Loan taken $ (1.203,517) coinvest cap call $ 1,814,079 coinvest income 413W2008 $ 116.380,384 5/31/2008 S 116,531,984 $ (22,664,000) GRAT payment 30-Jun 94,272,196 22,109,049 AGM ON $ (10,000,000) loan taken 7/31/2005 $ 106.530,276 8/312008 106,710,130 (32,000,000) tran to 0135 30-Sep $ 74,894,413 $ (25,009003) trans (00135 31-Oct $ 49,929,585 30-Nov $ 49,043,826 $ (3,878,323) cap cals $ (20,135,706) trans to LBF $ 5,526,547 Div $ 1,324,316 TRA 12/31/2008 32,803.089 71,880,499 (513,561) cap call 71,314,187 $ (66,964,802) tran to BFP5492 $ 30,879,084 AGM Dlv (4.349,385) mist cap calls $ 31,927,257 $ 31,273,125 $ 2,064.903 Colnvest Inc $ (15,288,621) GRAT payment $ 18,104,778 $ 6,306.659 ValiOUS Income $ 24,411.436 $ (1,203,517) $ 1.955,762 $ $ $ $ 227.224.510 310,142,498 3,254205 1Q LBF int inc 310,990,018 (75,150,000) Creed Opp $ coinvest cap cal $ coinvest Income $ $ 25212.058 32.000000 $ (20,000,000) loan taken•taxes $ (1.980.560) colnvest cap can $ 34.230.734 $ 25000000 trans from 5492 $ $ (3,146,152) cap calls $ 1,892,814 colnv Income $ 58,104,235 $ 58,182.533 S S $ $ (6,797,321) trans fr LBFeadj $ $ 61.416,766 236,747,451 (9.992.240) AINV buy 227.226,149 227,656,848 (10,000.000) Leon 8/7 (10,000,000) Leon 8/29 (7,114,069) Crerfl Opp 4,001,054 Credit Opp Ret 204,907,881 $ (60,000,000) to Seat dap o/c $ LEIF 42 acct 4902/8403 S 200.457,582 $ 200,829,793 201,384,507 201.955205 (150.000,000) taxes (51,850,564) Iran to 8FP 2,753 23.714 $ 23.752 $ 22,128 $ (22,127) Iran to BFP $ $ 1 $ 60.000,000 newiElFe628 $ 145,271,763 $ 60.029,672 (50,000,000) trans to 6216 S 50,000,000 transit 8049 $ TOTAL $ 617,717,426 $ 12,185,558 Initial dep $ 7,606,612 from APH $ (11,902,117)48p cals $ 1,019,013 Income $ 527,684,994 $ (877.398) cap calls $ 69,862086 Income 3,826,220 income $ 602,002,949 S (513,561) cap call $ 603,073,855 (150,000,000) loan for taxes (75,150,000) Credit Opp $ (20,000,000) loan taken $ 30,879,084 AGM Div $ (3,738.823) cop callsrinc net $ 385,057,826 (9,992,240) AIM, buy $ 375,054,972 2,064,902 ooinveM inc $ (37,932,621) GRAT payment $ 339,826,234 $ 22,109,049 AGM Div $ (10,000,000) loan taken 6,306,659 various inc $ 358,820,487 S (20,000,000) DIst-GRAT inc to Leon (3,113,015) Credit Opp not (1,203,517) coinvest cap cal 1,955,766 colnvest Income 336,830,069 (20,000,000) loan for est taxes $ (1,980.560) coinvest cap calls (10,000,000) Leon 10/08 85.380,623 85,421,387 (17.906.833) COF Cap cal 20,135,706 trans In fr BFP (25,000,000) Addl COF Cal (62.855,162) GRAT Pay 42,991 $ $ (2.396.782) COF Cap call $ $ 107,852,446 $ $ 107,997,782 $ S $ $ 6,797,321 trans tr BFP $ $ (114.795,102) GRAT Pay $ 76,186 314,426,682 (10,000,000) ban taken 1,892,814 income (5,542,914) cap calls 301,266,889 301,545,638 (46,785,156) COF Cap calls 1,415,458 Int Income 6,850,863 Dividend/TRA (177,450,265) GRAT Payment 84,338,031 EFTA01146206 Attorney Work Product Privileged and Confidential Weil, Gotshal 85 Menges LLP MEMORANDUM May 5, 2008 To: Leon Black cc: Tom Turrin John Suydam From: Carlyn McCaffrey Elyse Kirschner Re: December 2008 Annuity Payments from 2006 GRATs By December 20, 2008, the trustees of each of the eleven (11) grantor retained annuity trusts ("GRATs") Leon established on December 21, 2006 are required to make an annuity payment to Leon. Based on the appraisals of the assets Leon transferred to the GRATs prepared by Empire Valuation Consultants and Ernst & Young, the 2007 annuity payments from the GRATs are as follows: Judah Investment Trust A: $ Judah Investment Trust B: $ 844,643.72 Judah Investment Trust C: $ 2,194,884.03 Judah Investment Trust I): $ 27,123,770.12 Judah Investment Trust E: Judah Investment Trust F: Judah Investment Trust G: Judah Investment Trust IT: Judah Investment Trust I: Judah Investment Trust J: —2 16.98 — $135,024,031.06 $ 5,710,267.39 $ 51,749,298.25 $ 12,372,246.02 $ 58,768,168.58 $ 47,882,971.37 NY I Al 5$5934C1XCXY0ILDOO.26$04.0001 EFTA01146207 Judah Investment Trust K: $ 6,266,662.911 TOTAL: S348,240;510.41 31/41 3 CS, 1 "t Please note that by December 20, 2008 each GRAT should have distributed to Leon an aggregate amount of assets equal to the amount of its required annuity payment. If a GRAT distributed to Leon the operating profits earned by the Apollo interests held in the GRAT during the course of the year, the annuity amount payable to Leon on December 20th should be reduced by the amount of such operating profits he received during the year. Once the GRATs have made their final 2008 payments, the assets remaining in the GRATs should be distributed to the Black 2006 Family Trust. If you have any questions, please call Carlyn at (212) 310-8136 or Elyse at (212) 310-8665. As part of its effort to curb tax shelters, the Internal Revenue Service recently issued regulations that impose sanctions on attorneys who provide informal written tax advice without prominently disclosing that the advice cannot be relied upon by the taxpayer for the purpose of avoiding penalties. Because this memorandum contains a discussion of tax issues that we do not believe warrants the significant additional time or expense that would be involved in the preparation of a formal opinion that complies with the IRS rules, we include the relevant IRS disclosure, below. If you would like us to prepare a formal tax opinion on which you may rely for penalty relief, please let us know, and we can discuss the cost of preparing one. IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS. we inform you that any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. For more information about this notice, see http://www.weil.com/circular230/article.html I This figure may be subject to change based on the revised appraisal we are expecting from Ernst & Young. NYI:11555954CMCKYOMD0026304.0001 2 EFTA01146208