From: Richard Joslin To: jeffrey E. <[email protected]> CC: Brad Wechsler Subject: FW: Update on AIF IV Management Inc. Date: Wed, 04 Mar 2015 11:28:14 +0000 fyi From: Ada Clapp Sent: Tuesday, April 15, 2014 1:21 PM To: Jeffrey Epstein Cc: Eileen Alexanderson; Richard Joslin Subject: Update on AIF IV Management Inc. Hi Jeffrey, Eileen and I spoke with John Suydam yesterday about the possibility of liquidating AIF IV Management Inc. ("AIF"). To refresh your recollection on the background: • AIF was the original general partner ("GP") of AIF IV Management Inc. ("AIF MGT"). • In February 2007, a new entity (the "Successor GP") was admitted as a managing GP of AIF MGT and AIF was reclassified as an administrative GP. • In May 2007, AIF's GP interest was converted to a limited partner ("LP") interest and the Successor GP became the sole GP of AIF MGT. • In June 7, 2007, AIF transferred its LP interest in AIF MGT to Black Family Partners, LP ("BFP") and was admitted as a non-economic LP. John Suydam agreed that the LP interest in AIF MGT currently held by BFP has no economic value. He also confirmed that such interest could be cancelled and that AIF could thereafter be liquidated without creating any tax or regulatory problems for Apollo. Before doing that, however, John would like the AIF governing documents revised to remove all Apollo officers currently listed as officers of AIF (unless acting in their individual capacity), since AIF is no longer an Apollo related entity. We have a call in to Apollo to find out how to accomplish the above. I do have a few questions relating to the cancellation of BFP's LP interest in AIF MGT. If this interest is cancelled: (i) does AIF automatically cease to be a non-economic partner of BFP, or (ii) does AIF have to formally withdraw as a partner and demand the return of its capital, or (iii) does BFP have to cancel AIF's non-economic interest in BFP based on the fact that it has no economic value.