From: Brad Wechsler To: Jeffrey Epstein <jecvacationggmail.com> Subject: Re: option exercise Date: Fri, 17 Apr 2015 17:03:16 +0000 Jeffrey? Sent from my Verizon Wireless BlackBerry From: Richard Joslin < Date: Fri, 17 Apr 2015 16:37:00 +0000 To: Brad Wechsler< Subject: RE: option exercise >; jeffrey E<[email protected]> Before I initiate a payment to Apollo for $376,441, I wanted to make sure you were in agreement and LDB was aware It is not Apollo policy to require full re-payment and we would be looking to give 100% of the value to Apollo. From: Richard Joslin Sent: Wednesday, April 01, 2015 4:33 PM To: Brad Wechsler; 'jeffrey E.' Subject: option exercise Re: non-qualified stock options (NQO) granted to LDB/ founders as part of services provided as director or public company. Apollo policy is for founders to report the option exercise as taxable income (1099-MISC issued by public company to founder). Founder remits the after-tax cash profit to Apollo. Question was posited to to Glen Liebowitz/ John Suydam as to whether Apollo would accept 100% disgorgement, ie Apollo reports 100% of the income and receives 100% of the net cash exercise. John Suydam has confirmed that Apollo will accept 100% of the cash. Net cash retained by LDB on NQO exercise after tax would be payable to Apollo: $376,441. Given that the 1099-MISC would be reported on LDB 1040, there is tax risk that assignment of income would not be respected by the IRS notwithstanding the cash transfer/ disgorgement. I'd have to dig into this. Richard Joslin CFO Elysium Management LLC 445 Park Ave Ste. 1401 New York, NY 10022 (w) (c) (f) EFTA00667093