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< >; jeffrey E<jeevacation@grnail.com>
Subject: RE: option exercise
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