% 1. • :I S I INSURANCE May 20, 2013 Mr. Leon D. Black Apollo Management LP 9 West 5701 Street, 43f° Floor New York, NY 10019 RE: The Black Collection Fine Arts Insurance Dear Leon: Wens Fargo Insurance Services USA. Inc. 330 Madison Avenue 7th Floor New York NY 10017-5001 Tel: 212 682 75O0 Fax: 212 682 1043 wfismellshircloceom Enclosed please find primary and excess insurance company documents in connection with the May 8, 2013 renewal of your collection/fine arts program. Also attached are invoices representing the annual premiums which total $724,250 plus $5,235 for the taxes and fees on Lloyds business. Due to market conditions and recent catastrophic losses, there was an increase in premium of approximately $24,000 over last year. Fortunately, we have kept the increase to a minimum. The past several years, the rates remained unchanged with no premium increases. Insurance is provided against the usual 'all risks' terms and conditions with the territorial limits anywhere in the world'. The basis of valuation in the event of a claim is your inventory/appraisal amounts or current market value at the time of Voss whichever the higher. The total amount of insurance is $1,600,000,000 which covers the exposure at 760 Park Avenue, New York. If you recall, we increased the limit last year by $250,000,000 (previously $1,350,000,000). I attach herewith a synopsis of the placement. Kindly review the Named Insureds and advise if they are correct. Also, Bank of America, N.A. is listed as a loss payee. Copies of the primary and several excess renewal endorsements/policies have been previously forwarded to the Bank per the attached. I trust all will be found in order and look forward to discussing this matter with you. JAH:vnm Encl. 'There is a maximum of $300,000,000 worldwide coverage which includes transits and that part of the collection located at your homes in Bedford and Southampton, New York and elsewhere. Together we'll go far EFT