Estate Planning Overview

Estate Planning Overview Presented to: Leon D．and Debra R. Black Overview of Estate Plan as of April 16，2014 May 20, 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 EFTA01204270 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Statement of Disclosure Imestment produrta samti al Oaks. hoods and muted hoods: Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed IMPORTANT: This brier summary is for dieerissaan ~son . It does not contain BRO. tax. inventmerd. or ionmanceadvau and rennet be relied upon for implemenudion ard/or protean.: nØ ;enablers the provisiom of your come planninc decirmeas will totem die disposition «yaw estate Always commit with yaw rodeo's:den anomes and tat advisor for Iltak and tat «hire IMPORTANT: these porateteores are estimmes only and rebaud on constantlythawaing arearraptions Your adwal results may lie hosteror worse. Icrupwrm fin aid projections rannm be madeNib any ~minis. and are awe waranteed Moos woodlandsyour independent attorney and tax advisor for lea and Mt NO«. IRS Circular Rio Disclosure: Pursomt to IRS Pcsulacions.rx hdoim too dial am tax abbe remained to thee osannunicscron I:Deluding any anaehminets) ts tun intaded or oakumco he used. and canned he usN loony perma 01 enhey for ~awe ol tit molding tan 'daunt pantiles Imposed by any innacad ma reuthally m agerny. 01(11) ptomain& remelairpor10.,311111W~to•axolo party any wonssaran or ~Mc drowsed herein. We admire you to consult with an independent tax whiten on year particular tat eireunasurcts Immanent products and senleen may be viable thrown a irlatroustopmanowd by US. Team. Bonk of Åfillefilf4 Pdvau Wraith Mon :amain or through a rdolonship with hirdl Lynch. Pierce. St1111C1 & Smith lowarpmard. Certain US. Trust amodates my:anal represnamelses with Merrill Lomb. rime. Fenner ar Smith Inarpoiord and way assist you with Moulmein madras and mentors piostdall1110‘1)1Mellill OnetsPinee. Fenner Sr Smith Ineapoiabrd rod other substdiarla of Bankel AronloaCoipannica. llowneer.U.S.Towedoes w wawa insestmenb held at Stoll Leech. Plow. Fear Sr Smith Inempowird and you mein dit mpiesentailve tomb melon Behr shireMan. IndivItima il•~1110t. yea &ma will molt Si your owned twitted» lotio Insetted Ina mown tetrads may differ loon this repots In redditias 'hoe maredals may disrors .1111011ieltatna al an Mede:loafs named fenaneW profile fa which readier US Trust ow Merrill toast. Piro& Fenner lk Smith Inowporated sows as an whim'. Merrill Lynch. Pierce. Fenner est Smith Incorporated if .1 roistered tooter-dealer. member FTNRA end SIM. and a wholb owned erteimbary of Bank Of ~Oa ~cation- ›ItItil Lynch. 11~ Neuter rie Smith Incorporated Sienna sera as a tat otter?! advisor Several products such as mutual funds maid:leannuities, :Al other sheerimive inewsimenta Out rory be mentioned aeon Moorman ellernoldre Retort amonlYtnhe sold whenp.ecØ W WanaParnied by a amen pasputs and/or offering memoranda. ~no areelf or dining memoranda il onde more compkte information on the product. inelndinf charces.ewema and special inwornent risks. and should be read carefully hofter Worsting. The following report Is for fiduciary lane only. The Mandate presemIng this upon Mum Is acting within his or ha ficluelaryemaulty with US. Two. net within kb of Mr hembredemulty. II any. with Mell Lynch. Man. Omar &Smith In.-arts:mood. The Information and data In the hawing report wire obtained nom roams donned reliable. Their aommec and complamwm are ret oranantad. and the ghtsigol the game Is net 111V104.11111 din or ~nation Inc thr punkae of sale ol smudge. Thls report attempts to measure • partloilir seakermal tersesimenta he menglio the pertain:we ol all sonorities Inthelades The lades may Ise a maul tool. bid Is Si to son normentathe ol past pad:imams of a peatioilor fund or sorority. anti is nix represeauntaalisay Mute perfomuneealany pinata insestawnt Assumptions. mew:coins Medina or tax onesare Mastoid. e pur paws only and an. nol Inodel to peedict economic planen Any ismel 01 put:folk. amino antiol murm shown or used in this repon ate not maded co prober nnt planmm the mind results of an Immtnaent produa. Inorsion Mg, nut 111n« dancily Man indm. Tris report is n preliminary analysis and net neuerwerily the usual fulfilment of recommerdatiores. lltis material k for Ihistrmia and obtational purposes and has been prepared soldry tomato you in the rariew of tow Maureen' alien:mien Sou shouldconsult apnea:dambpi andeor tax adsisom and thew OWE, your repo:addict to lake appropriate next Mop. TAW report does not constitute Bpi. anairemostor revert wimestadwiee. If tou <hoar* to follow an insettment dralletTaet Cordon Ike ndlowint Moods) oTaitionini NYC« Portfolio may result in 13.X ceenwouerces Apanche content:Lot this pinwentatem Noald not beaded upon without eonsultiniaPPrOPrOte toal mad/or taxed:Ann All eve «Iodations herein are merely atimatterand skotid cube relied upon for detailed taxplanning purpaes. All income taxes are based on fiat to rates and do not take ail thee/dads of a stateh manse lax laws into attount This analysis is Wined on the calendar year. Allan«, and liabilities are mired al the end of each seer. BIMM are also assumed to arm at the end deals year. For die finites of the analysis Onb: annual warns an prormed on a daily basis. VS Torn. Bank of ÅllInied Priente Wealth Xlanaperesent operates throuda Bade of ATIWtial, NA andother subsidiaries of Hank of Amelia Oorporation. Bank of Americo. NA. Member FDIC. $1111 Bank «Amerce CaToration.ddl Pests mend Page 2 of 26 EFTA01204271 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 using the mean value of AGM stock on April 16, 2014 ($27.92). • 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. • Judy Black was born on September 27, 1948 (life expectancy of 20 years). • Jon Ressler is assumed to be age 61 (life expectancy of 19 years). • 100% charitable deduction is assumed for fractional interests in art pledged to museums. Page 3 of 26 EFTA01204272 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Inventory of Family Assets as of April 16, 2014 Leon ernorio 'swim Dow, Toro Liquid Assets • Investment Accounts U.S. Trust Cash &Cowl $ 25.587.000 $ 5.562030 $ 31.149.000 JP/A Cash'Markelable setwees 6.556.000 6.927.000 15.483.000 Investments Ail-herd through Enlikes 1.500.000.000 1.500.000.000 cadet's:tea (Ind./weal& waled wt. rare Cocks. bones) 402.296.000 402.295.000 • Incbdble Porlion of GRATs 1.600.331.000 - 1.600.331.000 Black Featly Partners LP (8.0%)••- DISCOUNT 30% 167.841.000 - 167.641.000 AP Alternative Assets 21.656.000 - 21.655.000 Apollo Related Investments 5.247.000 - 5.247.000 inveslmere Partneislips - Various 1.545.000 - 1.545.000 AVonetta LLC. (LOB 50.1%. ORB 49.9%) - AT COST 13.879.000 13.824.000 27.700.000 BJAV Marine Lid. (Slat) 22.121.000 - 22.121.000 Real aline • Personal Jcirfily Owned Residences 38.200.000 38.200.000 76.400.000 Nerovis Road Pare., 10.000.000 10.000.000 750 Meadow Lane 16.600.000 - 16.600.000 Tangible Personal Property Household Properly 11.562.000 11.562.000 23.124.000 Jewelry 46.468.000 46.468.000 Aulonxbiles 419.000 - 419.000 Total Personal Assets $ 3235,638.000 132,543.000 $ 2988,181,000 Loan payable-Bank ct Ameba (AM/ t470.010.000) (470.000.000) Loan payable- Bank of America (Aviorelta Hldgs) (11.135.000) (11.090.000) (22.225.000) Loan payable-Bank ot Arnett', (WAV Maine) (17.897.000) (17.897.000) Mote payable' APOI Trust— (1.694.738.000) (1 694.738 000) taxe payable' Black Family Partners LP 042.080.0001 i42 001 0001 Total Personal Liabilities = $ (2235.770.000) (11,090.000) (2.246.860.000) Total Net Estate Assets $ 1.599.868.000 $ 121.453,030 1 1,721,321.000 APOI Agreement $ 1.976.541.000 APO2 Declaration 822.577.000 Black 2011 Family Trusts (LOB 2011 LLC) 279.619.000 1999 Lile Insurance Trust $2 (death benefit) 100.000,000 1992 Lile Insurance Trust (death benefit) 20.000.000 Mallory Trust 4.124,000 Black 1997 GST Exempt Trust 3 007 000 Total Trust Assets Total Family Assets ' GRAT Aracily Bebe-tables. •• AGM mean value $27.92(share. ••• Note prcresles lot a maturity dated Augusl 14. 2022 and accrued !Merest o11.63% on the unpaid principal batance Page 4 of 26 EFTA01204273 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Leon's Death Executers: Debra Black. Barry Cohen and Richard Revak); Non Probate Property Outright to Debra Probate Property $ 2.197.107.000 112 of Joint Rasklences 38.200.003 Non Probate Property 38.200.000 Includible Portion of GRATs 1.600.331.000 Total 5 38.200.000 Gross Estate s 3.835.838.000 Last Will and Testament Charitable Pledges Probate Estate S 3.797.438.000 Administration Expenses (5.000000 Dartmouth Pledge Art Pledged to Muxeums 5 19.129.000 10,731,000 Charitable Pledges (29,880.000 Total 299180.000 Liabilities Due Upon Leon's Death 1591.032.000 Residuary Assets S 3/21.548.000 Note payable • to AP01 Trust 1 694 738000 Net Residue to Revocable Trust S 1.526.808.000 Tangibles OutrIght Bequest to Debra Trustees: Debra Black. Barry Cohen and Rchard Ressler Tangible Property 11.981.003 L. B. Revocable Trust Agreement Total 5 11,981.000 Residuary Assets: 3.221.546.000 Cash Bequest Tangibles to Debra 111.981.0001 Bequestannuity (Melanie 8 Judy) 111,020.000) Bequest to Melanie Spindle 5 3.000.000 NY Estate Tax (29152222) Federal Estate Tax (7.322.887) Balance of Revocable Trust Residue 3.188.370.111 Total Cash cies 5 3 000 000 Note payable to AP01 Trust (1.894.738,000 Net to lAarital Trust 1.493.832.111 Lifetime Annuity for Judv Slack Annuity $ 8.020.000 Marital Trust GST Exempt Marital Trust 5 1.840.000 Total Annuity 8.020.000 Non-Exempt Marital Trust: Art Eniiiies 8 Collectibles 1.421.584.000 750 Meadow Lane 18.800.000 kidudible Portion of GRATs 1.800.331.000 Balance of Revocable Trust Residue 1 035 111 Total Marital Trust Assets 5 3.188.370.111 Note payable to APO1 Trust 1.894.738000 Net Marital Trust Assets $ 1.493.832.111 Page 5 of 26 EFTA01204274 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Estate Flow Chart Upon Debra's Death Trustees of Marital Trusts Men Debra'sdear. Barry Cohen and Richard ResPer Lifetime Annuity for Jon Ressler Debra Black Marital Trusts (Under L. B. Revocable Trust) Net Value of Marital Trusts' 1.493.632.111 Annuity 7 697.000 Amulty tor Jon Ressler (7.697.000) 7 697,0)0 OST Exempt Marital Trust to 97 Exempt Tr. (1 840 COO) Debra's OST Amount to 97 Exempt Tr. (1.166.404) Charitable Pledges (Art) to Museums (24533.600) 750 Meadow Lane to Heritage Trust (15.600.800) NY Estate Tax 1230.882,9917 Federal Estate Tax 1485 973 269i Martial Trust Residue 724.938.847 Ad Selected for Heritage Trust 1696 491.847) Residue Passes to Foundation 6 28.447.000 1997 GST Exempt Trust Leon Black Family Foundation Marital Trust Residue S 28.447.080 Debra% Revocable Trust Residue Total Added Upon Debra's Death: S 28447000 'See nventory or Debra's Taxable Estate. Winne Twist 1 Patera Meadow Lane 9 16.700000 4- 750 Park Ave 2.000.000 4— Artiona Residence 1.000.000 750 Meadow Lane 16.600.000 Art Entities 8 Collectibles to Legacy Truffle 696 491 847 Total Added Upon Debra% Death: 8 732.791 847 Trust Assets 5 3.007.000 05T Exempt Marital Trust 1.840.000 Debra's (1ST Minuet, 1.166.404 Total 1997 OST Exempt Trust 6.013.404 Charitable Pledges An Pledged to Museums 24533.600 24 533 600 Debra Black Gross Estate Probate Prepense Oleg& Probate Estate 5 171 634 000 5 171 634 000 Last Will and Testament Oleg& Probate Estate Administration Expenses (2%) Residuary Estate Passes to Revocable Trust 171 634 030 , 3 433 COS S !SS 2C4 0C41 Revocable Trust Agreement of Debra Black Residuary Estate 158201 000 Residences to Heritage Trust 1119.703 080) Tangibles 8 Jewelry to Children 157.774 335) NY Estate Tax 126.000 211) Federal Estate Tex '54 726 .455) Revocable Trust Residue Passes to Foundation Tangibles Outright to Children in Equal Shares Tangible Progeny $ 67.774.335 Page 6 of 26 EFTA01204275 Leon D. and Debra R. Black Overview of Estate Plan as of Apri116, 2014 Estimated Estate Tax Calculations $ 3,360,004,111 Leon's Gross Estate $ 3,835,638.000 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 (3,433,000) Charitable Deduction (29,860.000) Charitable Deduction (52,980,600) Marital Deduction (1.543,849,111) Marital Deduction Estimated New York Estate Tax (2,852,222) Estimated New York Estate Tax (256,883,202) Plus: Adjusted Taxable Gilts 5,340.000 Plus: Adjusted Taxable Gifts 5,120,000 Taxable Estate $ 23,646.667 Taxable Estate $ 1.357,089,309 Tentative Federal Estate Tax 9,404,467 Tentative Federal Estate Tax 542,781,524 Less Credits!Payments: Less Credits/Payments: Unified Credit (2.081.800) Unified Credit (2.081.800) Gill Taxes Paid Gill Taxes Paid Estimated Federal Estate Tax Estimated Federal Estate Tax $ 7.322,667 S 540.699.724 Estimated New York Estate Tax S 2.852,222 Estimated New York Estate Tax S 256.883.202 Total Estate Tax Due Upon Leon's Death Total Estate Tax Due Upon Debra's Death 10.174,889 $ 797.582.926 Combined Federal Estate Tax $ 548.022.390 Combined NY Estate Tax 259.735.424 Total Combined Federal & NY Estate Tax 807.757.814 Page 7 at 26 EFTA01204276 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 Entities & Collectibles $ 1,421,564,000 750 Meadow Lane 16,600,000 Includible Portion of GRATs 1,600,331,000 Black Family Partners LP (8.0%) - DISCOUNT 30% 119,588,111 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) Total Marital Trust Assets: S 1,493,632,111 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%) 2.734.000 Total of Debra's Probate Assets: S 171,634,000 Page 8 of 26 EFTA01204277 Leon D. and Debra R. Black Overview of Estate Plan Cash Needs on Leon's Death Cash Needed at Leon's Death for Bequests, Debts. Expenses 8 Taxes GS EittQutt,t $ 1.840.000 Adm emus! on Experxe:, 5.000000 NY Estate Tax 2.852.222 Fed Eslate Tax 7.322687 Darlmoulh Pledge 19.129.000 Bequest to means 3.000.000 Arnuty lot Judy 8.020.000 Loan payableGank of America (Ar) 470.000.000 Loan payableGank of America (BJAV Marine) 17.897.000 Loan payable-Bank of America (AViCeletla Mdgs) 11.135.000 Note payable. Black Family PaltfletS LP 42.000.000 $ 588.195,889 1 Total Cash Needed Allocation of Available Cash U.S. Trust Cash Account LIST Begues1 Achmistralron Expenses NY Estate Tax Fed Eslate Tax Anntsty for Judy Balance JPM Cash/Marketable Securities eequesi to hieiane Balance Total Renudring Anise Cash $ 6.108.111 $ 26.587.000 1.840.000 5.000.000 2.852.222 7.322687 8 020000 $ 552111 $ 8.556.000 3003[00 $ 5.556.COD Allocation of Cash to be Raised AA and Cored/des Son lo Pay. Bank of Amens ban eel) BJAV Marine VenN Sold lo pay: Bank of America ban Anonetteltirplane (Leon's 50.1%) Sold lo pay: Bark of Ameka loan 1.902.295.000 M70.000.0001 470 000 000 1.432.295.000 $ 22.121.000 22.121.000 /17 Err gggi 4.224.000 13.879.000 13.879 000 (11 Aggg) 2.744.000 Black FILITIllyPanners. LP Irdemsts (8%) $ 187.641.000 Sold lo pay: Note lo Black Family Partners. LP. (42.000.000) 42.000.000 Sold lo pay: DruIrriculh Pledge again 6.052.889 $ 119.688.111 Dartmouth Pledge US Trust Cash Accounl balance $ 552.111 JPM ACCOLIIII balance 5.558.000 VacN sale proceects-balance 4.224.000 Airpkine sale proceects-baiance 2.744.000 BFP sale proceeds 6.0.5211£2 $ 19.129.000 Total Cash Raised Total Cash Available and Raised $ 554,062,889 $ 588.195,889] Page 9 ol 26 EFTA01204278 Leon D. and Debra R. Black Overview 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 3.433.000 26.000.211 54.726.455 Total Cash Needed I $ 84,159,665 Allocation of Available Cash US Trust Cash Account 5,562.000 JPM Cash/Marketable Securities 6.927.000 Avionetta Sale Proceeds 2.734.000 Total Available Cash $ 15,223.000 Administration Expenses (3.433.000) Total Remaining Available Cash $ 11,790,000 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 (2.236.665) 2.236.665 Balance of Jewelry: $ 44.231.335 Federal Estate Tax Residence sale proceeds $ 54.726.455 54,726.455 New York Estate Tax Residence sale proceeds $ 11.973.545 Jewelry sale proceeds 2.236.665 Remaining available cash 11.790.000 $ 26.000.211 11,973.545 Total Cash Raised 68,936,665 Total Cash Available and Raised $ 84,159,665 Page 10 of 26 EFTA01204279 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 Annuity For Jon Bequest of Debra's GST Amount NY Estate Tax Fed Estate Tax $ 1,694.738.000 7.697.000 1.166.404 230.882.991 485.973.269 Total Cash Needed J S 2,420,457,664 Allocation of Cash to be Raised Black Family Partners LP Interests to be Distributed BFP Interest in Marital Trust $ 1.719.919.111 Distributed BFP (Includible Portion of GRATs) (1.600.331.000) Distributed BFP (balance of 8% from LDB) (94.407.000) Sold To pay Jon's Annuity (7.697.000) Sold To pay Debra's GST bequest (1.166.404) Sold To pay taxes (16.317.707) Balance of BFP S Note Payable APO1 Trust BFP Interests Distributed S 1.694.738.000 1,694.738.000 Art and Collectibles Sold and Distributed Art and Collectibles in Marital Trust 5 1.421.564.000 Distributed To Museums (24.533.600) Sold To pay tax (700.538.553) Balance of Art and Collectibles $ 696.491.847 Annuity for Jon BFP sale proceeds S 7.697.000 7.697.000 Bequest of GST Amount BFP sale proceeds 5 1.166.404 1.166.404 New York Estate Tax Art sale proceeds S 230.882.991 230.882.991 Federal Estate Tax BFP sale proceeds 5 16.317.707 Art sale proceeds 469.655.562 S 485.973.269 485.973.269 Total Cash Raised S 2,420,457,664 1 Page 11 of 26 EFTA01204280 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Heritage Trust now Chart- Following Debra's Death Trusted: Barry Cohen. Richard Ressler, Jas Hannan. Serum Blau Joshua Black Alexanda Elbaand Vsiona Black Trasees ((any Cohen. Richard Racier and donn Hannan During the beneficiary's 'tome: 1 The Trustees may pay the income and principal to the bententry sulked to disubdongudelines (the descendants financial acumen. marital dscord eredtor clams. pendng Miceli," or SubStanCe abuse). 2 Trustees are aullwited to invesl in a business ventureproposedby the beneficiary. so long as it is a career commerrent. 3 Aller age 35. the beneficiary is a calrustee of hisher Legacy Trusl. At the beneficiary's death: A chid may by Will apnokil tie remairing Trusl properly among Leon's descendants and up to 310 mi0on in favor of a spouse. Any properly not appointed will be chided in equal shares for the beneficiary's chtdren. It Heritage Trust Trust Assels (Net of Liablilies) Added Upon Odirds Death: 750 Meadow Lane Odires Residences Art Selected lot Legacy TniSIS Weal $ 18.600.000 19.700.000 698 491 7 732 791 7 Single "Par Trust A single Heritage Trust is sealed for Debra and Lecn's descendents and fur separate Legacy Trusts are Created (one to, each of Leon's children). The Trustees may dstribute income and pnncipal to Debra and Leon's descendants. suiReCI to the distribution guidelines stunned in tie Trust Agreement. Alter Leon's death, art and tolleclbles held in the Hedge. Trust designated for a particular child will be disirbuied to such chikrs Legacy Trust. Mier Debra death. smiNstydesignaled items in the Marital Trust we be selected by the Trustees to be held in a tillers Legacy Trust. Aller Leon's death the Trustees shall distil:2de me learning amounts to eachchats Legacy Trust. 1 310 mince) when the child warns age 30 (request il is used to acquire a principal residence). 2 350 mince) when the child mans age 35. 3 3100 ration when the chld altains age 40. 0 ached dies under age 40. the &WO amounts wit be dvided kilo shares for thechild: descendants and each share we be held in a separate Legacy Trust 101 each such descendwil. Separate Legacy Trusts Legacy Trter Mee Sensamn E Back Legacy Trust ttiroJOShua M. Black AttAVO. 174.122.962 Artwork S 174.122 962 C:141) CI:166664n Cash Distbutian Legacy Trust Ibro Alexander S. Stack Legacy TrUS1 Ciao Victoria R. Back Artwork S 174.122.962 Cash Distrbuban Page 12 of 26 EFTA01204281 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 Hannan Alter age 35. each Beneficiary Is a co-Trustee or heaver Separate Trust APO1 Agreement Trust Assets Repayment of Note Payable Less 34% Capital Gains Tax (Combined Federal. NY 8 NO Surtax) Total 28 803.000 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 hisher 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) truss 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 properly 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 EFTA01204282 Leon D. and Debra R. Black Overview of Estate Plan APO:2 Declaration Flow Chart - Fdloning Debra's Death Trustees: Barry Cohen. Renard Ressler anclJohn Haman Trustees. Barry Cohen. Renard Ressler and John Hannan Alter age 35. each Beneadary Is a co-Trustee of lather Separate Trust APO2 Declaration Trust Assets (Net ol Liabilities) $ 622.577.000 Added Upon Debra's Death: Total 622 ST7 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 distribute income and principal to Debra and Leon's descendants. subject to the distribution guidelines outlined li the Trust Agreement. Instead of makilg distributions to a descendant. the Trustees may distribute to hislher Separate Trust. Discretionary Trust terminates 21 years after the death of the survivor ol 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 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 fill% Benjamin E. Black Separate Trust fihro Alexander S. Black Separate Trust Victoria R. Black Page 14 of 26 EFTA01204283 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 1/bfo Benjamin E. Black $ 69.904.750 r Black 2011 Family Trust LDB 2011 LW $ 279.619.030 I Properly 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 hislier trust to Leon's issue. Unappointed assets will pass to child's issue. subject to lifetime trusts. 2011 Trust Mato Joshua M. Black $ 69.904.750 2011 Trust I ho Alexander S. Black $ 69.904.750 2011 Trust IV° Victoria R. Black $ 69.934.750 Page 15 of 26 EFTA01204284 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 EFTA01204285 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 EFTA01204286 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 EFTA01204287 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 EFTA01204288 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Dietribullona to anldren and Cbaritable Institutions Upon Leon's/Debra's Death ~Iv falniamin E. Black Lesrakr• goon Loon's A•04«14 Oeafli goon &Sat On* ~me Flanni79 S 808 307.833 1 APOI A~ril %al lot the 350.082.520 AP02 oxiarabon Tred lor Ute 155544.250 1992 Insurance Trust Tun well ago 45 5000.000 1009 Inetranee Trust 82 %al lot tile - 25.000.000 141~08 ard1-491*CY IASI Truce lot the 183.197,962 1997 OST Exempt Teal Trust brute 751501 751.750 Black 2011 Fainikr Trust Trust bor Ute 69.904.750 ',Ague Trusl Treel lee Lila 1.031.00) Tanaides Oulreshl from Cletrtie fatale aitri" 16944.000 Josh» St Mock IS 808 307.833 APOI Artmere Tivei fin tile 350.062.520 AP020telaralion %el lot tile 155.644.250 1992Insurance Trust That vel age 45 5,000000 1999 Insurarco Trust 82 Trust bor Lilo • 25.03,30 Henlar ard ~Cy Taal Twin lot tile 183.197.962 1997 OST Exemµ Tani Titan lot UP 751.801 751.750 Black 2011 Famt/i Truss Trust lor We 69.904.750 Watery Trust Trust lortgo 1031.90) Teruel°, °flan, from Dada% ESIale Wag,' 16.1)44.90) Alexander S. BSc* IB 808.307.833 I APOI Aaccursant Trust lor Lilo 350.062520 ' AP02 Defletalion Train lot tile 155.844.250 1982 Unaware. Trust Into 101 we 45 - 5.000.000 1999 Insuranco Ins 42 Trust lor Lite 25000.90) Famtage ardLoaacy Trust Trust lortgo 123,197.%2 t997 OST EØ Trull Tuna ler tile 751501 751.750 Glace 2011 Family Trust Trual lot tile 6.9.9(11.750 Malcry Trust Trust lortgo 1031.900 Tanatios Outright from Dotas Estate D. 16.944.0:0 VIeloila A. Black • • I S 809 307.833 I APOI Aorcurnam Trust lor Ute 350.062520 APO 2 Dalai-anon Trust loft" 155544.250 992Inewante TruM Tryt utl 89' 45 5.000.800 leggin...nine %St 62 %al lot Ule 25.000.000 Sap an] Lcuacy Trust Trust lor Ute 183397.932 1997 051 Excapt Taal Trust lor Ule 751.601 751.750 Elbck 2011 Family Trust Tryt let tile 60.904.750 matury Teen Tryt let tile 1.ØI.39 Tarques Outnahl from Deans Estate Opal" 1693.000 CAMP IS 82.840.800 I An Ploegsa 10.731.000 24.533500 Ganitcuip 19.129.000 Leon Stec, FQ.Pyfyter. 28.447990 Eselnlated Taxes and Expenses I S 3628.171.734 i Fedora' Estate lax 7.322.667 540.699.724 new York Eats» Tax 2452222 256.823202 Actrinis9a10n Expent.Us 5.000.000 3.433.000 Gantal Gans Tax 576210.920 Lute i Ios 541.032.000 16941~ APOI Trust reduced try 34%. casual gans lax pad an Louisdame ate respect lo Me $1.638.667..370 Note Irom Loon assumed lo have a Zero Base. Page 20 of 26 EFTA01204289 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 Cash U.S. Trust Cash Account 8.789.000 JP Morgan Cash Account 1.525.000 Marketable Securities Lone Cascade LP 35.075.000 Millennium Group USA LP 23.567.000 Canyon Value Realization Fund LP 18.604.000 Anchorage Capital Partners LP 17.394.000 FCI Co-Invest 0 (A) LP 12.041.000 AINV shs dist fr AIC 5.016.181 King Street Capital LP 49.000 Environmental Solutions Worldwide 4.000 Illiquid Assets Investment Partnerships: Knowledge Universe LP 33.771.000 Sustailable Woodlands LP 19.090.000 HAO Capital Fund LP 3.141.000 Wolfensohn Capital Partners LP 2.067.000 iCrete LLC 1.501.000 Tenfore Holdings Fund I LP 494.000 Rely Labs 188.000 44% Interest BRH HIdgs* 2.588.479.000 Apollo Co-Invest VI (A) LLC 38.075.000 Apollo Value Co-Invest LLC 8.052.000 Apollo Co-Invest V LLC 3.551.000 SOMA Co-Invest LLC 3.063.000 Apollo Co-Invest III LLC 2.151.000 AP Alternative Assets LP 933.000 Apollo Co-Invest IV LLC 539.000 T-Ink. Inc. 100.000 Convertible Promissory Note- ESWW 2.941.000 Credit Lile - Phaidon Global 8.600.000 TRA Dividend - July 2007 Transaction 83.946.000 Note due from LDB 42.000.000 Note due from Narrows Hldgs 25.000,000 Note due from PLB LLC 3 200 OCO Total Assets (Undlscounted) $ 2,992,946,181 Discount 30% i897.883.854) Total Assets (Discounted) 2.095,062327 'AGM mean value $27.92, share. Page 21 of 26 EFTA01204290 Leon D. and Debra R. Black Overview of Estate Plan as of April 16, 2014 Includible Portion of APO GRATs as of April 16, 2014: Includible Value of APO GRATs APO1 GRAT $ 789,069,292 APO1 GRAT No. 2 691,093,551 APO1 GRAT No. 3 120,168,025 Total $ 1,600,330,868 Rounded Value: I $ 1,600,331,000 Page 22 of 26 EFTA01204291 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 EFTA01204292 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 EFTA01204293 Leon D. and Debra R. Black Overview of Estate Plan APO2 Declaration - Financial Inventory As of Apri116, 2014 Illiquid Assets Cash & Marketable Securities Black Family Partners LP (12.55%)* - DISCOUNT 30% Investment Partnerships - Various Apollo Related Investments Other Assets $ 16.851,000 262.926,000 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 $ 709 013.000 bil Net Assets *Rounded Note Payable to APO1 Agreement (86,436,000) $ 622,577,000 Page 25 of 26 EFTA01204294 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 (7.2%)" - DISCOUNT 30% 150.185.000 Apollo Related Investments 19.827.000 Investment Partnerships 2.394.000 Art 72.750.000 Phaidon Global - AT COST 10.000.000 Total Assets $ 279,935,000 Liabilities Liabilities (316.164) Total Liabilities $ (316,164) Net Value of Trust $ 279,618,836 $ 279,619,000 Rounded Value: 'Rounded Page 26 of 26 EFTA01204295