EFTA00806407

BERDON ACCOUNTANTS AND ADVISORS - Next Management, LLC 15 Watts Street 6th Floor New York, NY 10013 Dear Client, Enclosed are the following partnership returns prepared on behalf of Next Management, LLC for the year ended December 31, 2015. 2015 U.S. Return of Partnership Income 2015 IRS e-file Signature Authorization for Form 1065 2015 California LLC Return of Income 2015 California E-File Return Authorization for LLC's 2015 Florida Partnership Information Return 2015 State of New York Partnership Return 2015 New York State E-File Signature Authorization for IT-204 2015 New York City UBT Return for Partnerships 2015 Signature Authorization for E-filed UBT Return 2016 New York City Estimated Unincorporated Business Tax The original of each of the above mentioned returns should be dated and signed in accordance with the filing instructions included with the copy of the return. This copy is for your use and should be retained for your files. These return(s) were prepared from information provided by you or your representative. The preparation of tax returns does not include the independent verification of information used. Therefore, we recommend you review the return(s) before signing to ensure there are no omissions or misstatements. If you note anything which may require a change to the return(s), please contact us before filing them. Please return your signed electronic filing authorizations to us either by faxing to Berdon at 212-699-8832 or by uploading to your Berdon portal. If you have any questions in this regard, contact your tax advisor. We appreciate this opportunity to serve you. Please contact us if you have any questions or if we may be of further assistance. Sincerely, Berdon LLP Certified Public Accountants Enclosure(s) Berdon LLP • CPAs and Advisors 360 Madison Avenue. New York. NY 10017. 212.832.04001 One Jericho Plaza. Jericho. NY 11753 .516.931.3100j www.8EFtDONLLP.com XL460 2.000 EFTA00806407 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form 8879-PE 2015 IRS e-file Signature Authorization for Form 1065 for the year ended December 31. 2015 The original form should be signed (using full name and title) and dated by an authorized general partner or limited liability company member manager of the partnership. The signed form should be returned on or before September 15, 2016: Berdon LLP Certified Public Accountants 360 Madison Ave New York. NY 10017 Or fax to: 212.699.8832 Attn: Tax Control Or email to: efile@berdonllp.com DO NOT separately file a paper Form 1065 with the Internal Revenue Service. Doing so will delay the processing of your return. We must receive your signed form before we can electronically transmit your return. The Internal Revenue Service will notify us when your return is accepted. Please note that the IRS does not consider your return as filed until they confirm acceptance of the return. EFTA00806408 Form 8879-PE IRS e-file Signature Authorization for Form 1065 O148 No. 1545-0123 ► Do not send to the IRS. Keep for your records. Department of the Treasury ► Information about Form 8879-PE and its instructions is at wwwirs.govilom78879pe. 2015 Internal Revenue Service Fiat calendar year 2015. a lax year beginning 201'.. are ma. 20 Name of partnership Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Part I Return Information (Whole dollars only) 1 Gross receipts or sales less returns and allowances (Form 1065. line 1c) 1 20,059,894. 2 Gross profit (Form 1065, line 3) 2 20,059,894. 3 Ordinary business income (loss) (Form 1065, line 22) 3 2,415,902. 4 Net rental real estate income (loss) (Form 1065, Schedule K, ine 2) 4 5 Other net rental income (loss) (Form 1065, Schedule K, line 3c) 5 Part II Declaration and Signature Authorization of General Partner or Limited Liability Company Member Manager (Be sure to get a copy of the partnership's return) Under penalties of perjury, I declare that I am a general partner or limited liability company member manager of the above partnership and that I have examined a copy of the partnership's 2015 electronic return of partnership income and accompanying schedules and statements and to the best of my knowledge and belief, it is true, correct, and complete. I further declare that the amounts in Part I above are the amounts shown on the copy of the partnership's electronic return of partnership income. I consent to allow my electronic return originator (ERO), transmitter, or intermediate service provider to send the partnership's return to the IRS and to receive from the IRS (a) an acknowledgement of receipt or reason for rejection of the transmission and (b) the reason for any delay in processing the return. I have selected a personal identification number (PIN) as my signature for the partnership's electronic return of partnership income. General Partner or Limited Liability Company Member Manager's PIN: check one box only I authorize BERDON LLP to enter my PIN 2 6 6 8 9 as my signature EROIrm name do not enter all zeros on the partnership's 2015 electronically filed return of partnership income. As a general partner or limited liability company member manager of the partnership, I will enter my PIN as my signature on the partnership's 2015 electronically filed return of partnership income. General partner or limited liability company member manager's signature ► Title ►PRES OF MEMBER—MGR Date ► Part III Certification and Authentication ERO's EFIN PIN. Enter your six-digit EFIN followed by your five-digit self-selected PIN. 21 6 3 7 7 4- 11 3 0 4. do not enter all zeros I certify that the above numeric entry is my PIN, which is my signature on the 2015 electronically filed return of partnership income for the partnership indicated above. I confirm that I am submitting this return in accordance with the requirements of Pub. 3112, IRS e-file Application and Participation, and Pub. 4163, Modernized e-File (MeF) Information for Authorized IRS e-iiie Providers tor Business Retums. EROs signature ► Date ► ERO Must Retain This Form - See Instructions Do Not Submit This Form to the IRS Unless Requested To Do So For Paperwork Reduction Act Notice. see instructions. Form 8879-PE (nisi JS.A SPAM? 1.000 R66297 1608 5 EFTA00806409 F., 1065 U.S. Return of Partnership Income OMB No. 1545.0123 Department of the Treasury internal Revenue Service A Principal business actiaty For calendar year 2015. or tax year beginning 2015, ending 20 b Information about Form 1065 and its separate instructions is at www.lre.gov/form1065. Name of partnershp 2015 oemplayoridemiscationmmbef 13-3495607 MODEL AGENCY NEXT MANAGEMENT, LLC E Date business stated BPMcipalswahmorsoMm Type Number. street. and room or suite no. II a P.O. box. see the instructions. MODELING or 15 WATTS STREET 01/04/1989 AGENCY Print 6TH FLOOR F Total assets (see the instructions) C Business code number City or town, state or province. country, and ZIP or breign postal code 812990 NEW YORK, NY 10013 16,760.866. G Check applicable boxes: (1) Initial return (2) ❑ Final return (3) El Name change (4) 0 Address change (5) 0 Amended return (6) Technical termination - also check (1) or (2)_ Check accounting method: 1) Cash (2) E Accrual (3) U Other (specify) b. Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year Itr. 3 Check if Schedules C and M-3 are attached Caution. Include arty trade or business income and expenses on lines la through 22 below. See the instructions for more information. la Gross receipts or sates Ia 20,059,894. b Returns and allowances lb c Balance. Subtract line lb from line la lc 20,059,894. 2 Cost of goods sold (attach Form 1125•A) 2 3 Gross profit. Subtract line 2 from line lc 3 20,059,894. . 4 Ordinary income (loss) from other partnerships, estates, and trusts (attach statemenDSTMT. 1 4 248,456. E 5 Net farm profit (loss) (attach Schedule F (Form 1040)) 5 2 6 Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) 6 — 7 Other income (loss) (attach statement) SEE. STATEMENT 1.. . 7 -234,496. 8 Total Income (loss). Combine lines 3 through 7 8 20,073,854. Deductions (see the Insbuctoes tor Imitations) 9 Salaries arid wages (other than to partners) (less employment credits) 9 11,291,732. 10 Guaranteed payments to partners 10 11 Repairs and maintenance 11 414,619. 12 Bad debts 12 8,131. 13 Rent 13 749,810. 14 Taxes and licenses SEE. STATEMENT J 74 769,540. 15 Interest 15 16a Depreciation (if required, attach Form 4562) 16a 120,998 b Less depreciation reported on Form 1125-A and elsewhere on return 16b I 16c 120,998. 17 Depletion (Do not deduct oil and gas depletion.) 17 18 Retirement plans, etc 18 106,026. 19 Employee benefit programs 19 338,804. 20 Other deductions (attach statement) SEE. STATEMENT J.. . 20 3,858,292. 21 Total deductions. Add the amounts shown in the far right column for lines 9 through 20 . . . 21 1 7 , 657, 952 . 22 Ordinary business income (loss). Subtract line 21 from line 8 22 2,415.902. Under penalties of penury. I declare that I have examined this return. incbding accompanying schedules and statem nts. and to the best of my knowledge and belief. it is true. correct. and complete. Declaration olpreparet (other than general partner or lasted liability company member manager) is based on as information of which preparer has any knowledge. Sign May the IRS &muss this mum with th PRES or MEMBER-MGR praparor silo= bolos (see Here FAITH KATES .nstrucbonsi? gil • Yes ❑ Signature of general partner or kneed liability company member manager Date Print/Type preparers name Preparees signature Date PUN Paid CheckU it MARC YATKOWSKY sell-employed 200002675 Preparer Firm's name le. BERDON LLP FlreYsEINK 3 — 0485070 Use Only • Fires address Ili. 360 MADISON AVE Phone no. NEW YORK, NY 10017 212-832-0400 For Paperwork Reduction Act Notice, see separate instructions. Form 1065 (2015) SSA 6P1010 2.000 R66297 1608 7 EFTA00806410 Electronic Return Acknowledgement Tax Year : 2015 Return No: R66297 Taxpayer: NEXT MANAGEMENT, LLC ID No : 13-3495607 Return Identification Number : 4/18/2016 10:38:00 A Return Type : 7004 Filing Type Description : FEDERAL EXTENSION Tax Period End Date : 12/31/2015 Electronic Postmark : 4/18/2016 10:38:00 A Return Status : ACCEPTED Status Date : 04/18/2016 ELECTRONIC POSTMARK: THIS IS THE TRANSMISSION DATE AND TIHESTAXP AS PER CENTRAL TIME. SX9000 1.000 R66297 1608 08/16/2016 10:42:01 V EFTA00806411 Form 1065 (2015) NEXT MANAGEMENT. LLC 13-3495607 Page 2 Schedule B Other Information 1 What type of entity is filing this return? Check the a licable box: Yes No a Domestic general partnership b Domestic limited partnership c X Domestic limited liability company d Domestic limited liability partnership e Foreign partnership f Other ► 2 At any time during the tax year, was any partner in he partnership a disregarded entity, a partnership (including an entity treated as a partnership), a trust, an S corpo ation, an estate (other than an estate of a deceased partner), or a nominee or similar person? X 3 At the end of the tax year: a Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax- exempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership X b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If "Yes," attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership X 4 At the end of the tax year, did the partnership: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all dasses of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If "Yes," complete () through (iv) below X (I) Name of caporation (II) Employer Identification (III) Country of Qv) Percentage Number (If any) Incorporation Owned in Voting Stock b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the p ofit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If "Yes," complete () through (v) below . . . X 0i) Employer all) Type of (Iv) Country of (v) Maximum (I) Named Entity Identification Entity Organization Percentage Owned in Number (if any) Prate. Loss. or Capital TWO TWELVE MANAGEMENT LLC 20-1354409 PARTNERSHI US 80.000 Yes No 5 Did the partnership file Form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment, that is in effect for this tax year? See Form 8893 for more details X 6 Does the partnership satisfy all four of the following conditions? a The partnership's total receipts for the tax year were less than $250,000. b The partnership's total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return. d The partnership is not filing and is not required to file Schedule 11-3 X If "Yes," the partnership is not required to complete Schedules L, M-1, and M-2; Item F on page 1 of Form 1065; or hem Lon Schedule K-1. 7 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? X 8 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? X 9 Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? X 10 At any time during calendar year 2015, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? See the instructions for exceptions and filing requirements for FInCEN Form 114, Report of Foreign Bank and Financial Accounts MAR If -Yes ' enter the name of the foreign country. ► UK X JSa Fan, 1065 2015, 5P1020 2.000 R66297 1608 8 EFTA00806412 NEXT MANAGEMENT, LLC 13-3495607 Form 1065 (2015) Page 3 Schedule B Other Information conbnued Yes No 11 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If -Yes; the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions X 12a Is the partnership making, or had it previously made (and not revoked), a section 754 election'? X See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If "Yes." attach a statement showing the computation and allocation of the basis adjustment. See instructions X c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If 'Yes," attach a statement showing the computation and allocation of the basis adjustment. See instructions X 13 Check this box if, during the current or prior tax year, the partnership distributed any property received in a like-kind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) Ito ni 14 At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? X 15 If the partnership is required to file Fonn 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities, enter the number of Forms 8858 attached. See instructions lo. 16 Does the partnership have any foreign partners? If "Yes," enter the number of Forms 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, filed for this partnership.b. X 17 Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached to this return. li- 18a Did you make any payments in 2015 that would require you to file Form(s) 1099? See instructions X b If "Yes," did you or will you file required Form(s) 1099? X 19 Enter the number of Form(s) 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, attached to this return. Iii. 20 Enter the number of partners that are foreign governments under section 892. Iii. Designation of Tax Matters Partner (see instructions) Enter below the general partner or member-manager designated as the tax matters partner (IMP) lot the tax year of this return: Named PARTNERSHIP HOLDING CORP. designated Identifying TMP C/O NEXT MANAGEMENT LLC number of IMP 13—3501977 If the IMP is an enti . name Phone number of Tty MP representative FAITH KATES of TMP Address d k 15 WATTS STREET designated 6TH FLOOR NEW YORK, NY 10013 IMP r Form 1065 (2015) 35* SP1035 2.000 R66297 1 608 9 EFTA00806413 Form 1065 (2015) NEXT MANAGEMENT, LLC 13-349 6 7 Fa0e4 Schedule K Partners' Distributive Share hems Total amount 1 Ordinary business income (loss) (page 1, line 22) 1 2, 415, 902 . 2 Net rental real estate income (loss) (attach Form 8825) 2 3a Other gross rental income (loss) 3a b Expenses from other rental activities (attach statement) . , . , 3b c Other net rental income (loss). Subtract line 3b from line 3a 3c 4 Guaranteed payments 4 Income (Loss) 5 Interest income SEE. STATEMENT 2 . . 5 17, 910. 6 Dividends: a Ordinary dividends 6a b Oualified dividends 16b I 7 Royalties 7 8 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) 8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065 ) 9a b Collectibles (28%) gain (loss) 9b I c Unrecaptured section 1250 gain (attach statement) 9c 10 Net section 1231 gain (loss) (attach Form 4797) 10 11 Other income (loss) (see instructions) Time,. 11 12 Section 179 deduction (attach Form 4562) SEE. STATEMENT Z 12 191,194. Deductions 13a Contributions SEE. STATEMENT 3. 13a 103,335. b Investment interest expense 13b c Section 59(e)(2) expenditures: (1) Type N. (2) Amount Iiii• 1_3O2) d Other deductions (see instructions) Type Iii 13d it 14a Net earnings (loss) from self-employment 14a ti b Gross farming or fishing income 14b a E c Gross nonfarm income 14c 15a Low-income housing credit (section 42(j)(5)) 1_5a b Low-income housing credit (other) 15b Credits c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) 1_5c d Other rental real estate credits (see instructions) Type IN. t5d e Other rental credits (see instructions) Type lo. U. f Other credits (see instructions) Type 0 15f 16a Name of country or U.S. possession 0. b Gross income from aN sources 16b c Gross income sourced at partner level 16c Foreign Transactions Foreign gross income sourced at partnership level d Passive category 0.. e General category 0. f Other 0.. 16f Deductions allocated and apportioned at partner level g Interest expense 0. h Other 0. 16h Deductions allocated and apportioned at partnership level to foreign source income i Passive category O. j General category 0 k Other 0. 16k I Total foreign taxes (check one): 0. Paid Accrued U 161 m Reduction in taxes available for credit (attach statement) 16m n Other foreign tax information (attach statement) 17a Post-1986 depreciation adjustment SEE. STATEMENT 3 17a —976. Alternative b Adjusted gain or loss 17b c Depletion (other than oil and gas) 17c Minimum Tax d Oil, gas. and geothermal properties - gross income 17d (AMT) Items e Oil, gas, and geothermal properties - deductions 17e f Other AMT items (attach statement) 17f 18a Tax-exempt interest income 18a Other Information b Other tax-exempt income lab c Nondeductible expenses 5gg. STATMW4' 1 18c 118,554. 19a Distributions of cash and marketable securities 19a 3,000,000. b Distributions of other property 19b 20a Investment income 20a 17,910. b Investment expenses 20b c Other items and amounts (attach statement) Form 1065 (2015) JSA SP 1030 2.000 R66297 1608 10 EFTA00806414 Form loss mist NEXT MANAGEMENT, LLC 13-3495607 Pages Analysts of Net Income (Loss) 1 Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 161 1 2,139,283 2 Analysis by (a) Individual (IN) Individual (v Exempt (vi) partner type: (0 Corporate (active) (passive) (Iv) Partnership Organization Nominee/Other a General partners b Limited artners 2.139.283. Balance Sheets per Books Beginning of tax year End of ax year Assets (a) b) (c) (d) 1 Cash 4 577 394 3 532 783 2a Trade notes and accounts receivable 10 526,765 9,290,056. b Less allowance for bad debts 100,000 10 426,765 100,000 9,190,056. 3 Inventories 4 U.S. government obligations 5 Tax-exempt securities 6 Other current assets (attach statement) STMT 4 228,894 176 432 7a Loans to partners (or persons related to partners) b Mortgage and real estate loans 8 Other investments (attach statement) STMT 4 —214 609 83 446 9a Buildings and other depreciable assets 4,116,424 4,123,029. b Less accumulated depreciation 3 577 355 539,069 3 396 487 726 542. 10a Depletable assets b Less accumulated depletion 11 Land (net ol any amortization) 12a Intangible assets (amortizable only) b Less accumulated amortization 13 Other assets (attach statement) STMT 4 2 361 407 3 051 607 14 Total assets 17 918,_920. 16,760 866 Liabilities and Capital 15 Accounts payable 13 449,263 12,182,330 16 Mortgages. notes. bonds payable in less than 1 year 17 Other current liabilities (attach statement) STMT 4 1, 304, 038 1 786 832 18 All nonrecourse loans 19 a Loans from partners (or persons related to partners) b Mortgages. notes. bonds payable s. 1 yew or more 20 Other liabilities (attach statement) STMT 4 1, 314, 035 1 620 133 21 Partners' capital accounts 1,851, 584. 1 171 571 22 Total liabilities and capital 17,918,920. 16,760.866. Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note. The partnership may be required to tile Schedule M-3 (see instructions). 1 Net income (loss) per books 6 Income recorded on books this yew not included 2 Income included on Schedule K. lines I. 2.3c on Schedule K. lines I through 11 (itemize): 5. 6a. 7. 8. 9a. 10. and 11. not recorded on a Tax-exempt interest bocks this year (Itemize): 3 Guaranteed payments (other than 7 Deductions included on Schedule K, lines health insurance) 1 through 13d, and 161 not charged 4 Expenses recorded on books this year against book income this year (Itemize): not included on Schedule K. lines 1 a Depreciation $ through 13d. and 16I(Itemize): a Depreciation 8 Add lines 6 and 7 b Travel and entertainment 9 Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5. . 5 Add lines 1 through 4 Schedule M-2 Analysis of Partners' Capital Accounts 1 Balance at beginning ol year 1,851,584. 6 Distributions: a Cash . . STMT. 5. . 3,000,000. 2 Capital contributed: a Cash b Property b Property 7 Other decreases (Itemize): 3 Net income (loss) per books 2,319,987. 4 Other increases (Itemize): 8 Add lines 6 and 7 3,000,000. 5 Add lines 1 through 4 4,171,571. 9 Balance at end of year. Subtract line 8 from line 5 1,171,571. JsA Form 1065 (2015) 5P1035 2.000 R66297 1608 11 EFTA00806415 SCHEDULE C (Form 1065) Additional Information for Schedule M-3 Filers (Rev. December 2014) OMB No. 1646-0123 ► Attach to Form 1065. See separate instructions. Department of the Treasury Interns Revenue Service ► Information about Schedule C (Form 1065) and its instructions is at wwwirs.govilorrn1065. Name of partnershp Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Yes No 1 At any time during the tax year. were there any transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8? 2 Does any amount reported on Schedule M-3. Part II. lines 7 or 8. column (d), reflect allocations to this partnership from another partnership of income, gain, loss, deduction, or credit that are disproportionate to this partnership's share of capital in such partnership or its ratio for sharing other items of such partnership9 3 At any time during the tax year. did the partnership sell, exchange, or transfer any interest in an intangible asset to a related person as defined in sections 267(b) and 707(b)(1)? 4 At any time during the tax year, did the partnership acquire any interest in an intangible asset from a related person as defined in sections 267(b) and 707(b)(1)? 5 At any time during the tax year, did the partnership make any change in accounting principle for financial accounting purposes? See instructions for a definition of change in accounting principle 6 At any time during the tax year, did the partnership make any change in a method of accounting for U.S. income tax purposes? X For Paperwork Reduction Act Notice, see the Instructions for Form 1065. Schedule C (Form 1065) (Rev. 2.2014) JSA 5P1037 1.000 R66297 1608 12 EFTA00806416 SCHEDULE M-3 Net Income (Loss) Reconciliation OMB No. 1545.0123 (Form 1065) for Certain Partnerships DCD4 nm Cft of tnc PO.rAir, Internal Revenue Santee We Attach to Form 1065 or Form 1065-B. ie. Information about Schedule M-3 (Form 1065) and its instructions is at wwwirs.gov.lorm1065. 2015 Name ol partnership Employer identification number NEXT MANAGEMENT, LLC 13-3495607 This Schedule M-3 is being filed because (check all that apply): A X The amount of the partnership's total assets at the end of the tax year is equal to $10 million or more. j. The amount of the partnership's adjusted total assets for the tax year is equal to $10 million or more. If box B is checked, enter the amount of adjusted total assets for the tax year 19,760,866. . C ❑ The amount of total receipts for the tax year is equal to $35 million or more. If box C is checked, enter the total receipts for the tax year D ❑ An entity that is a reportable entity partner with respect to the partnership owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss, on any day during the tax year of the partnership. Name of Reportable Entity Partner Identifying Number Maximum Percentage Owned or Deemed Owned aE Voluntary Filer. Financial Information and Net Income (Loss) Reconciliation la Did the partnership file SEC Form 10-K for its income statement period ending with or within this tax year? Yes. Skip lines 1b and lc and complete lines 2 through 11 with respect to that SEC Form 10-K. No. Go to line lb. See instructions if multiple non-tax-basis income statements are prepared. b Did the partnership prepare a certified audited non-tax-basis income statement for that period? E Yes. Skip line lc and complete lines 2 through 11 with respect to that income statement. No. Go to line lc. c Did the partnership prepare a non-tax-basis income statement for that period? Yes. Complete lines 2 through 11 with respect to that income statement. N No. Skip lines 2 through 3b and enter the partnership's net income (loss) per its books and records on line 4a. 2 Enter the income statement period: Beginning 01/01/2015 Ending12/31/2015 3a Has the partnership's income statement been restated for the income statement period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. b Has the partnership's income statement been restated for any of the live income statement periods immediately preceding the period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. 4a Wo ldwide consolidated net income (loss) from income statement source identified in Part I, line 1 4a 2,319,987. b Indicate accounting standard used for line 4a (see instructions): I X GAAP 2 IFRS 3 D 704(b) 4 __ Tax-basis 5 _ Other: (Specify) IP. 5a Net income from nonincludible foreign entities (attach statement) 5a ( b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) 5b 6a Net income from nonincludible U.S. entities (attach statement) 6a ( b Net loss from nonincludible U.S. entities (attach statement and enter as a positive amount) 6b 7a Net income (loss) of other foreign disregarded entities (attach statement) 7a b Net income (loss) of other U.S. disregarded entities (attach statement) 7b 8 Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach statement) 8 9 Adjustment to reconcile income statement period to tax year (attach statement) 9 10 Other adjustments to reconcile to amount on line 11 (attach statement) 10 11 Net income (loss) per income statement of the partnership. Combine lines 4a through 10. . . . 11 2,319,987 . Note: Part I, line 11, must equal Part II, line 26, column (a) or Schedule M-1, line 1 (see instructions) 12 Enter the total amount (not just the partnership's share) of the assets and liabilities ol all entitles included or removed on the following lines: Total Assets Total Liabilities a Included on Part I, line 4 16,760,866. 15,589,295. b Removed on Part I. fine 5 c Removed on Part I. line 6 d Included on Part I, line 7 dye, For Paperwork Reduction Act Notice, see the Instructions for your return. Schedule 14-3 (Form 1065) 2015 SP 1042 2.000 R66297 1608 13 EFTA00806417 Schedule M4 (Form 1065) 2015 Page 2 Name of parinershp Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Part II Reconciliation of Net Income (Loss) per Income Statement of Partnership With Income (Loss) per Return (a) (b) (c) CO Income (Lose) Items Income (Loss) per Temporary Permanent Income (Loss) per Income Statement Difference Difference Tax Return IMUICh statements sar lines 1 through let I income (loss) Iron EquityM(00d MOW ~pennons 2 Gross toreegn &Mends nee preecosly taxed 3 enapan F. OEF. ans ~MI room ~UM . . 4 Gross loregn Sikhism: pnwcosty taxed 5 meows (U10)110. saucy Weed US. ~maw 6 U.S. diedends 7 Income005s' from u.S. panncarar. 6 298,055. 5,160. -59.919. 243,296. II Income (loss) tram foram, partnerships . 9 Income (loss, front ena sossIncutib entities 10 gems relating to repcdeble trent9COM5 . 11 Intetest frame (me insouctonal 17,910. 17.910. 12 TOW accrual »Men letbuSMent 13 Hed9in0 usms833717 14 mark.temarket income (loss) Is Cost Moot& sold (see insaucitynt . . ( ) ( ) 16 Sale ~sue lease 00r sears ardor 1~41) . 17 Section 481(a) alumnus 18 Unearnedkieterted revenue 19 Income recognition (ran bog-term cortrms 20 Original :me discount and other imputed ,teren 21e Income statement gainiloes on sale exchange. Mean:lawn:M. worthlessness or other mammon of assets other than inventory and pass-through entities. . . . b Gass capital gains from Schedule Q credo. ding amoures from pass-through entities . . c Gess caplet losses from Schedule D. exCludng amounts horn pal354breUgh entities. abandonment loses, and wont: stock losses d Nol gan/loss reported on Form 4797. Inc I?. exdudrg amounts from pus-through entities.aban000Metell04403. and wrolhke-s stock losats e Abandonment lasses 1 Worthless stock losses (Mach statement'. . 9 Other ganlloss on cfspeolson of assns other than inventory 22 Other income 1o55) dens with ChllegenCe5 latliaCh 51$100130) 23 Total Income (loss) Items. Corrbine Ines I through 22 315,965. 5,160. -59.919. 261,206. 24 Total exponse'deductIon Hems. Morn Pal II me 31) Imo nstmclons) -12,859.017. -216,737. 90,792. —12,984,962. 25 Other gems with fledges:ewe:STMT. 7 14.863.039. 14,863,039. 26 Raemeseelon saute Corium iron 23 mom 25 2,319,987. -211,577. 30,873. 2,139,283. Note: Line 26, column (a), must equal Part I, line 11, and column (d) must equal Form 1065, Analysis of Net Income (Loss). line 1. Schedule h1-3 (Form 1065) 2015 JSA 51.1043 2.000 R66297 1608 14 EFTA00806418 Schedule M-3 (Form 1065) 2015 Page 3 Name of partnershp Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Part III Reconciliation of Net Income (Loss) per Income Statement of Partnership With income (Loss) per Return - Expense/Deduction items (a) Ot) (c) (d) Expense/Deduction Items Expense per Temporary Permanent Deduction per Income Statement Difference Difference Tax Return I Slate and kcal current income lax expense 155,391. 155,391. 2 Slate and kcal deterred ncome tax eipense 4.000. -4.000. 3 Foreign current mane lax expense (other than foreign wthhoidag taxes) 0 Foreign deterred income lax expense S Equity based compensation 6 lAeals and ereenaninall 181,584. -90,792. 90,792. 7 Fines and penalties 0 .lioam•rn. eamiges. innede.ans witness 9 Guaranteed payments 10 Pension and peafesharing II Other post.relirement benefits 12 Deferred Dampen:anal 13 Charitable conabution of cash and tangible property 10 Charitable conInbuton et intsigible properly 98,175. 98,175. II Organizational eoponses as per Regulations section 1.709-2(al II Syndication expenses as per Regulations section 1.709•2gol 17 Current year acquisitionheaganization investment barildro lees II Current year acquisibanseceganixaban legal and accounting Ices 19 Amortization:impairment et goodeil . . 20 Amortization el acquisition. reorganization and statue costs 21 Other amorfization et impainnall wnto.cels 20,790. 179.824. 200.614. 22 Reserved 23a °optimal • 04 & Gas b Depletion - Other than On & Gas 24 Intangible biting 6 development cost . 25 Doprociatian 159,326. 152,866. 312,192. 26 Sad debt exprise 8,131. 8,131. 2/ Interest expense (see munitions, . . . 29 Purchase versus lease (la purchasers and a lessees) 29 Research and development costs 30 Other expense deducbcn items with differences (sten staterront)STMT 8 12.231.620. -111,953. 12.119.667. 31 TOP OrarnP1100•11101. erre. coterie ties I vireo It Env Sea and en Pan i. M. 24. caPPIPP poses accounts as nagatia ens eflatita amanita. palkOre 12.859.017. 216.737. -90.792. 12,984,962. Schedule M-3 (Form 1065) 2015 35.a 5P1044 2.000 R66297 1608 15 EFTA00806419 Form8916-A Supplemental Attachment to Schedule M-3 OMB No. 1545-0123 Department of the Treasury Internal Revenue Service ► Attach to Schedule M-3 for Form 1065. 1120, 1120-L. 1120-PC. or 1120S. ► Information about Form 8916-A and its instructions is at knnvirs.gotelorrn1120. 2015 Name ol common parent Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Name ol subsidiary Employer Identification number Part I Cost of Goods Sold (a) (b) (e) Off Cost of Gads Sold Items Expense per Temporary Permanent Deduction per Tax Income Statement Difference Difference Return 1 Amounts attributable to cost flow assumptions 2 Amounts attributable to: a Stock option expense b Other equity based compensation e Meals and entertainment d Parachute payments e Compensation with section 162(m) limitation I Pension and profit sharing, g Other post-retirement benefits h Deferred compensation I Reserved j Amortization k Depletion I Depreciation m Corporate owned life insurance premiums n Other section 263A costs 3 Inventory shrinkage accruals, 4 Excess inventory and obsolescence reserves 5 Lower of cost or market write- downs 6 Other Items with differences (attach statement) 7 Other items with no differences 8 Total cost of goods sold. Add lines 1 through 7 in columns a, b. c. and d. Enter totals on the applicable Schedule M-3. See instructions For Paperwork Reduction Act Notice. see instructions. Form 8916-A (2015) J SA SX9035 2.000 R66297 1608 16 EFTA00806420 Form 8916-A (20t5) NEXT MANAGEMENT, LLC 13-3495607 Noe 2 Part II Interest Income (a) (b) (c) (d) Interest Income Item Income (Loss) per Income Temporary Permanent Income (Loss) per Statement Difference Difference Tax Return 1 Tax-exempt interest income 2 Interest income from hybrid securities 3 Sale/lease interest income 4a Intercompany interest Income - From outside tax affiliated group Intercompany interest Income - From tax affiliated group 5 Other Interest income 17,910. 17,910. 6 Total interest income. Add lines 1 through 5 in columns a, b, c, and d. Enter total on the applicable Schedule M-3. See instructions. 17.910. 17.910. Part Interest Expense (a) (b) (c) Expense per Income Temporary Permanent (d) Interest Expense Item Deduction per Tax Return Statement Difference Difference 1 Interest expense from hybrid securities 2 Leasetpurchase interest expense 3a Intercompany interest expense - Pad to outside tax affiliated group 3b Intercompany interest expense - Paid to tax affiliated group 4 Other Interest expense 5 Total interest expense. Add lines 1 through 4 in columns a, b, c. and d. Enter total on the applicable Schedule M-3. See instructions. Form 8916-A (2015) 5X9036 2.000 R66297 1608 17 EFTA00806421 F.,„, 4562 Depreciation and Amortization OMB No. 1545.0172 NipailmOMOttel[Poarur, (Including Information on Listed Property) ► Attach to your tax return. 2015 Attachment Interne/ Revenue &IVO (99) ► Information about Form 4562 and its separate instructions is at onvwdrs.gov/form4562. Sequence No. 179 Name(s) shown on return Identifying number NEXT MANAGEMENT, LLC 1 3-3 4 9 5 6 07 Business or activity to which this form relates NEXT MANAGEMENT, LLC Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 1 5 00, 0 0 0 . 2 Total cost of section 179 properly placed in service (see instructions) 2 346,797. 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 3 2,000.000. 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- 4 5 DOWN limitation ter lac year. SODIUM:Atha 4 WM line 1.1zer0Or Len. enter ME/1,00 51115 5 Sapasalelv. see instructions 5 00, 0 0 0 . 6 (a) Description of property (b) Cost (business use only) (c) Elected cost SEE DEPRECIATION DETAIL 191,194. 7 Listed property. Enter the amount from line 29 17 8 Total elected cost of section 179 property. Add amounts in column (c), nes 6 and 7 8 191,194. 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 191,194. 10 Carryover of disallowed deduction from line 13 of your 2014 Form 4562 10 11 Business Income limitation. Enter the smaller of business income (not less than zero) or line 5 (see Instructions) 11 500.000. 12 Section 179 amens. deduction. Add lines 9 and 10, but do not enter more than line 11 12 191.194. 13 Carryover of disallowed deduction to 2016. Add lines 9 and 10, less line 12 , 13 1 Note: Do not use Part II or Part Ill below for listed property. Instead, use Pal V. Part II Special Depreciation Allowance and Other Depreciation (Do not include listed property) See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) 14 77,802. 15 Properly subject to section 168(1)(1) election 15 16 Other depreciation (includng ACRS) 16 24.391. Part III MACRS Depreciation (Do not include listed properly.) (See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2015 17 1 18, 805 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here .1-1 Section B - Assets Placed in Service During 2015 Tax Year Using the General Depredation System (b) Month and year (c) Basis for depreciation 00 Reemery (a) Classification dproperly placed in (businesarimestment use naiad (e) Convention (I) Method (g) Depreciation deduction service only - see insmictions) r— 19a 3-year property b 5-year property e 7-year property d 10-year properly e 15-year properly f 20-year properly g 25-year properly 25 yrs. S/L h Residential rental 27.5 yrs. MM S/L property 27.5 yrs. MM S/L i Nonresidential real 39 yrs. MM S/L property MM SIL Section C - Assets Placed in Service During 2015 Tax Year Using the Alternative De reciation System 20a Class life SIL b 12-year 12 yrs. SIL e 40-year 40 yrs. MM SIL Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 22 Total. Add amounts from line 12. lines 14 through 17. lines 19 and 20 In column (g). and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations -see instructions 22 120,998. 23 For assets shown above and placed in service during the current year. enter the portion of the basis attributable to section 263A costs 23 -ISA For Paperwork Reduction Act Notice, see separate instructions. Form 4562 (2015) 5)(2300 2.000 R66297 1608 18 EFTA00806422 NEXT MANAGEMENT, LLC 15) 13-34942i For 4562 (20 Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the businessAnvestment use claimed?I I Yes I I No 124b if "Yes,* is the evidence written? I I Yes I I No (a) (b) (c) (e) (0 (0) 01) (0 Business/ (r4 Basis tordepredalios 0 Type d propeny fret Date placed investment use Cost or ether barn Recovery Method? Depreciation Elected scam 179 vehicles first) service necovelY period Convention deduction Dom percentage use only) 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) 25 26 Property used more than 50% in a qi qualified business use: % 27 Property used 50% or less in a qualified business use: S/L • rS/1J SiL • 28 Add amounts in co umn (h), lines 25 hrough 27. Enter here and on line 21, page 1 128 29 Add amounts in co umn (i), line 26. Enter here and on line 7, page 1 29 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor. partner, or other "more than 5% owner." or related person. If you p melded vehicles to your employees, first answer the questions in Section C to see it you meet an exception to completing this section for those vehicles. (a) 04 (c) (d) (e) (0 Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 30 Total business/investment miles driven during the year (do not include commuting miles), , , 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year. Add lines 30 through 32 34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36 Is another vehicle available for personal use? l Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes No your employees? 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," do not complete Section B for the covered vehicles. Part VI Amortization (0) (a) Date 00 amortization (0) (d) Amortization (I) Description of costs Amortizable amount Code section period or Amortization for this year begins percentage 42 Amortization of costs that begins during your 2015 tax ear (see instructions): ORGANIZATION COSTS 06/15/2015 43 Amortization of costs that began before your 2015 tax year [ 15,790. 709 15.000 43 614. 200,000. 44 Total. Add amounts in column (f). See the instructions for where to report 44 200,614. JSA Form 4562 (2015) 5%2310 2.000 R66297 1608 19 EFTA00806423 INCOME FROM OTHER PASS-THROUGH ENTITIES Activity Name and Address ID Number and Type of Income C.A:ray InCgrine ihrousra MOS MOP TWO TWELVE MANAGEMENT, LLC 20-1354409 ,GENERAL TRADE/BUSINESS NO NO NO 1 Ordinary income (loss) from trade or business activities 248,456. 2 Rental real estate income (loss) 3 Other rental income (loss) 4 Guaranteed payments 5 Interest Income (loss) 6a Total ordinary dividends 6b Qualified dividends 7 Royalty Income (loss) 8 Net short-term capital gain (loss) (entire year) 9a Net long-term capital gain (loss) (entire year) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) (entire year) 11 Other Income (loss) 12 Section 179 expense deduction 13a-g Charitable contributions SEE STATEMENT 9 5,160. 13h Interest expense on investment debts 131, k, I Deductions related to portfolio income 13j Section 59(e)(2) expenditures 13m-w Other deductions 15a, c Low-Income housing credit from section 42(D(5) partnerships 15b, d Low-Income housing credit (other) 15e Qualified rehabilitation expenditures related to rental real estate activates 151 Credits related to rental real estate activities 15g Credits related to other rental activities 15h-p Other credits 16b Gross income from all sources 16c Gross Income sourced at partner level 16d Foreign gross Income (partnership level): Passive 16e Foreign gross Income (partnership level): General categories 16I Foreign gross Income (partnership level): Other 16g Deductions allocated and apponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner levee: Other 16i Deductions allocated and apportioned (partnership level): Passive 16j Deductions allocated and apportioned (partnership level): General category 16k Deductions allocated and apportioned (partnership level): Other 16I Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions 17a Depredation adjustment on property placed in service after 1986 -58. 17b Adjusted gain or loss 17c Depletion (other than oil and gas) 17d Gross Income from oil. gas, and geothermal properties 17e Deductions allocable 17I Other adjustments and tax preference items 18a Tax-exempt Interest income 18b Other tax-exempt income 18c Nondeductible expenses SEE STATEMENT 9 27,762. 20a Investment income 20b Investment expenses 20c-z Other information JSA 5P9055 I 000 R66297 1608 20 EFTA00806424 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date 179 exp. Beginning Ending Con- MA Current placed In Unadjusted Bus. reduc. Basis Resistor Accumulated Accumulated Me- ven- /CRS CRS -yr 179 Current-year Asset description service costorbaMs % inbasts Reduction Depreciation depreciation depreciation thod lion Life demi class evens& depreciation OFFICE EQUIPMENT 08/31/1991 22,526. 100. 22,526. 12,526. 12,526.200 DB HY 5 COMPUTER EQUIPMENT 10/31/1991 18,041. 100. 18,041. 18,041. 18,041.200 DB HY S FURNITURE4FIXTURES 05/31/1991 20,823. 100. 20,821. 20,923. 20,823.200 DB HY 7 OFFICE EQUIPMENT 01/04/1989 12,215. 100. 12,215. 12,215. 12,215.200 DB HY S COMPUTER 01/04/1989 47,819. 100. 47,819. 47,819. 47,819.200 DB HY S LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 100. 25,209. 25,209. 25,209.200 DB HY S FURNITURE 6 FIXTURES 01/04/1989 26,013. 100. 26,011. 26,013. 26,013.200 DB HY 7 OFFICE EQUIPMENT 07/01/1990 6,535. 100. 6,535. NONE NONE200 DB HY LEASEHOLD IMPRO(NY) 07/01/1990 33,158. 100. 31,158. 12,540. 33,158.3/1 sti. 31.000 618. FURNITURE4FIXTURES 07/01/1990 4,541. 100. 3,465. 1,076. 2,076. 1,076.200 DB HY 7 COMPUTER EQUIPMENT 01/31/1992 8,539. 100. 8,519. 8,539. 8,539.200 DB HY S PRINTER 02/26/1993 4,241. 100. 4,241. 4,241. 4,241.200 Ds MO S OFFICE EQUIPMENT 05/10/1993 2,382. 100. 2,382. 2,382. 2,302.200 Ds MO S OFFICE EQUIPMENT 10/01/1993 2,454. 100. 2,454. 2,454. 2,454.200 Ds MO S COMPUTER EQUIPMENT 11/01/1993 31,034. 100. 17,500. 11,534. 13,534. 13,534.200 DB MO S OFFICE EQUIPMENT 06/01/1993 2,500. 100. 2,500. 2,500. 2,500.200 Ds MO S LEASEHOLD IMPROV(NYI 02/28/1994 8,179. 100. 8,179. 4,174. 4,384.S/L )0 39 210. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 100. 2,319. 1,163. 1,222.S/L NH 39 59. LHI WO 07/31/1994 10,964. 100. 10,964. 5,468. 5,749.3/1 NH 39 281. LHI IN?) 08/31/1994 32,074. 100. 32,074. 15,927. 16,749.5/1 ma 39 822. LHI IN?) 10/30/1994 11,325. 100. 11,325. 5,571. 5,861.3/1 NH 39 290. LHI IN?) 11/30/1994 12,425. 100. 12,425. 6,101. 6,420.3/1 NH 39 319. OFFICE EQUIPMENT 07/01/1995 55,855. 100. 55,855. 55,854. 55,854.200 DB HY 5 LEASEHOLD IMPROVE 07/01/1995 12,155. 100. 12,155. 6,105. 6,413.S/L me 39 312. LEASEHOLD IMPROVE 07/01/1995 11,498. 100. 21,498. 5,772. 6,067.5/1 me 39 295. FURNITURE 6 FIXTURES 07/01/1995 31,451. 100. 31,451. 11,451. 31,451.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1995 16,832. 100. 26,832. 16,811. 16,831.200 DB HY 7 OFFICE EQUIPMENT(NYI 07/01/2996 45,326. 100. 45,326. 45,326. 45,126.200 DB HY 5 OFFICE EQUIPMENT(FLI 07/01/2996 20,695. 100. 20,695. 10,694. 10,694.200 DB HY 5 LEASEHOLD IMPROV(NYI 07/01/2996 54,075. 100. 54,075. 25,584. 26,970.3/1 me 39 1,386. FURNITURE 6 FIXTURES 07/01/2996 35,874. 100. 17,500. 18,334. 18,374. 18,174.2000B HY 7 FURNITURE 6 FIXTURES 07/01/2996 26,528. 100. 26,528. 16,528. 16,528.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1996 6,256. 100. 6,256. 6,256. 6,256.200 DB HY 7 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 100. 55,400. 24,792. 26,212.3/1 me 39 1,420. OFFICE FURNITURE 07/01/2997 8,872. 100. 8,872. 200 DB HY 7 OFFICE FURNITURE 07/01/1997 1,952. 100. 1,952. 200 DB HY 7 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 21 EFTA00806425 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date 179 sip. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me• yen• /CRS CRS •yr 179 Current•year Asset description service cost or basis % Ill bases Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation LEASEHOLD 1MPROV. 11/22/1998 11,700. 100. 11,700. 4,839. 5,138.511. MN 39 300. LEASEHOLD 1MPROV. 06/26/1998 29,553. 100. 29,551. 12,413. 13,171.5/1 me 39 758. FURNITURE 6 FIXTURES 07/01/1998 12,254. 100. 12,254. 12,254. 12,254.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1998 21,639. 100. 21,639. 21,638. 21,638.200 DB HY 7 FURNITURE 6 FIXTURES 07/01/1998 13,092. 100. 11,092. 11,092. 13,092.200 DB HY 7 OFFICE EQUIPMENT 07/01/1998 126,474. 100. 126,474. 226,474. 126,474.200 DB HY 5 OFFICE EQUIPMENT 07/01/1998 77,109. 100. 77,109. 77,109. 17,109.200 DB HY S • CCMPUTER 01/26/1998 236,963. 100. 236,963. 236,961. 236,963.200 DB HY S • CCMPUTER 01/26/1998 0,330. 100. 67,330. 67,329. 67,329.200 DB HY S • CCMPUTER 01/26/1998 35,900. 100. 35,900. 15,900. 35,900.200 DB HY 5 LEASEHOLD IMPROV(NYI 07/01/1999 112,785. 100. 112,785. 44,707. 47,599.S/L ma 39 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 100. 66,766. 66,766. 66,766.200 DB HY 7 FURNITURE 6 F (FL) 07/01/1999 1,951. 100. 1,951. 1,952. 1,952.200 DB HY 7 CCMPUTER (NYI 07/01/1999 202,098. 100. 202,098. 202,098. 202,098.200 DB HY 5 CCMPUTER (FLI 07/01/1999 45,399. 100. 45,399. 45,399. 45,199.200 DB HY S CCMPUTER (CAI 07/01/1999 69,509. 100. 69,509. 69,509. 69,509.200 DB HY S CCMPUTER (NYI 07/01/1997 38,206. 100. 36,206. 38,206. 38,206.200 DB HY S CCMPUTER (FLI 07/01/1997 12,929. 100. 22,929. 12,928. 12,928.200 DB HY S CCMPUTER-96'RETIRED 07/01/1996 —19,757. 100. —19,757. —19,757.200 DB HY S CCMPUTER (NYI 07/01/2000 174,341. 100. 174,341. 174,340. 174,340.200 DB HY S CCMPUTER (FLI 07/01/2000 66,827. 100. 66,827. 66,06. 66,626.200 DB HY S CCMPUTER (CAI 07/01/2000 66,027. 100. 66,027. 66,026. 66,026.200 DB HY S LEASEHOLD IMPROV(NYI 07/01/2000 37,330. 100. 37,330. 11,817. 14.794.S/L me 39 957. FURNITURE 6 F (NY) 07/01/2000 39,506. 100. 39,506. 19,506. 39,506.200 08 HY 7 OFFICE EQUIPMENT (NY 01/01/2001 2.014. 100. 2,014. 200 DB HY S OFFICE EQUIPMENT (NY 01/01/2001 1,959. 100. 1,959. 200 DB HY S OFFICE EQUIPMENT 01/01/2001 4,899. 100. 4,899. 200 DB HY S OFFICE EQUIPMENT 05/01/2001 4.244. 100. 4,244. 200 DB HY S OFFICE EQUIPMENT 01/01/2001 1.161. 100. 1,161. 200 DB HY S OFFICE EQUIPMENT 01/01/2001 1,546. 100. 2,546. 200 DB HY S OFFICE EQUIPMENT 02/16/2001 1,232. 100. 1,132. 200 DB HY S OFFICE EQUIPMENT 02/15/2001 2,271. 100. 2,273. 200 DB HY S OFFICE EQUIPMENT- CA 07/15/2002 4,569. 100. 4,569. 200 DB HY S FURNITURE -NY 04/30/2002 12,000. 100. 12.000. 200 DB HY 7 COMPUTER -NY 04/10/2003 41,698. 100. 41,698. 200 DB HY 5 COMPUTER -NY 04/10/2003 20,169. 100. 20,169. 200 DB HY 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 22 EFTA00806426 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date 179 exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me- ven- /CRS CRS -yr 179 Current•year Asset description service cost or basis % in basis Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation COMPUTER -NY 04/29/2003 1,372. 100. 3,372. 200 DB HY 5 COMPUTER 05/21/2003 4,441. 100. 4,443. 200 DB HY 5 COMPUTER 06/17/2003 6,582. 100. 6,582. 200 DB HY S COMPUTER 07/22/2003 5,359. 100. 5,359. 200 DB HY S COMPUTER - NY 06/06/2003 19,961. 100. 18,377. 792. 792. /91. 791.200 DB HY S OFFICE EQUIPMENT -NY 06/22/2003 6,045. 100. 4,021. 4,022. 4,021. 4,021.200os HY S OFFICE EQUIPENT - FL 04/09/2003 11,449. 100. 1,435. 8,014. 8,014. 6,014.200os HY S OFFICE EQUIP-FL 04/09/2003 5,561. 100. 1,669. 3,294. 3,894. 1,894.200os HY S OFFICE EQUIP-FL 04/09/2003 15,000. 100. 4,500. 10,500. 10,500. 10,500.200 os HY S OFFICE EQUIP-FL 06/01/2003 4,088. 100. 2,044. 2,044. 2,043. 2,041.200os HY S OFFICE EQUIP-FL 06/30/2003 1,880. 100. 940. 940. 939. 939.200os HY S OFFICE EQUIP-FL 06/06/2003 2,098. 100. 1,049. 1,049. 1,049. 1.049.200 DB HY S OFFICE EQUIP-FL 10/02/2003 2,101. 100. 1,094. 1,093. 1,093. 1,091.200os HY S OFFICE EQUIP-FL 10/06/2003 1,639. 100. 820. 819. 818. 818.200 DB HY S OFFICE EQUIP-FL 11/16/2003 1,355. 100. 1,676. 1,677. 1,677. 1,677.200 DB HY S OFFICE EQUIP-FL 12/31/2003 1,596. 100. 1,796. 1,798. 1,790. 1.798.200 DB HY S OFFICE EQUIP-CAL 04/09/2003 17,211. 100. 5,761. 12,046. 12,048. 12,048.200 DB HY S OFFICE EQUIP-CAL 04/16/2003 15,000. 100. 4,500. 10,500. 10,500. 10,500.200 DB HY S OFFICE EQUIP-CAL 06/30/2003 6,016. 100. 1,006. 3,008. 3,008. 1,006.200os HY S OFFICE EQUIP-CAL 12/31/2003 2,420. 100. 1,210. 1,210. 1,209. 1.209.200 DB HY S LEASEHOLD IMPRO-NY 06/22/2003 103,492. 100. 51,746. 51 746. 15,316. 1.6.643.S/L me 39 1,327. LEASEHOLD IMPRO-NY 07/24/2003 26,080. 100. 13,040. 71,040. 3,827. 4.161.S/L MN 39 334. LEASEHOLD IMPRO-NY 06/12/2003 17,158. 100. 8,879. 8,879. 2,594. 2,822.3/1 me 39 228. LEASEHOLD IMPRO-NY 09/16/2003 128,435. 100. 64,278. 64,217. 18,598. 20,245.3/1 me 39 1,647. LEASEHOLD IMPRO-NY 10/26/2003 16,767. 100. 8,384. 8,383. 2,410. 2,625. sn. me 39 215. LEASEHOLD IMPRO-NY 11/19/2003 41,981. 100. 20,991. 20,990. 5,985. 6,521.5/1 me 39 538. FURNITURELFIX- NY 11/25/2003 1,598. 100. 1,799. 1,799. 1,199. 1,799.200 Ds HY 7 FURNITURE6FIX- NY 12/04/2003 28,027. 100. 14,014. 14,011. 14,012. 14,012.200 DB HY 7 FURNITURE6FIX- NY 08/08/2003 48,543. 100. 24,272. 24,2/1. 24,269. 24,269.200 DB HY 7 FURNITURE6FIX- NY 09/26/2003 1,874. 100. 1,937. 1,917. 1,937. 1,937.200 DB HY 7 FURNITURELFIX- NY 12/06/2003 1,2/5. 100. 1,636. 3,617. 3,637. 1,637.200 DB HY 7 COMPUTER - NY 04/01/2003 46,500. 100. 13,950. 32,550. 12,550. 32,550.200 DB HY 5 OFFICE EQUIPMENT-NY 01/05/2004 10,835. 100. 10,815. 200 DB HY 5 MAINTENANCE-NY 02/25/2004 7,750. 100. 7,750. 200 DB HY 3 MAINTENANCE-FL 02/25/2004 2,500. 100. 2,500. 200 DB HY 3 OFFICE EQUIPMENT-CAL 09/29/2004 8,646. 100. 8,646. 200 DB HY 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 23 EFTA00806427 NEXT MANAGEMENT, LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, Liz GENERAL TRADE oR BUSINESS Date 179 exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me- van- ACAS CRS -yr 179 Current-year Asset description service cost or basis % in bases Reduction Depreciation depreciation depreciation thod Son Life cins class expense depreciation LEASEHOLD IMPROVE-NY 01/16/2004 5,649. 100. 2,825. 2,924. 789. sit.sit ss 39 72. LEASEHOLD IMPROVE-NY 02/17/2004 3,686. 100. 1,841. 3,843. 2,076. 1,175.5/1 HM 39 99. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 100. 12,500. 12,500. 8,754. 9,587.s/L HY 15.000 15 813. FURNITURELFIX-NY 11/21/2004 6,001. 100. 6,001. 200 DB Hy 7 FURNITURELFIX-NY 01/30/2004 165. 100. 165. 200 DB Hy 7 OFFICE Kumasi -NE 01/01/2004 2,500. 100. 2,500. 200 DB Hy 3 OFFICE EQuIRNENT-FLA 02/07/2005 2,110. 100. 2,110. 200 DB Hy 5 OFFICE EQUIPMENT-CAL 01/16/2005 1,904. 100. 1,984. 200 DB Hy 5 LEASEHOLD IMP-CAL 02/24/2005 6,000. 100. 6,000. 4,052. 4,407.250 DB Hy 15 355. LEASEHOLD IMP- CAL 01/21/2005 800. 100. 800. 539. 586.250 DB Hy 25 47. FURNITURE 6 FIXT CAL 01/16/2005 6,291. 100. 6,191. 200 DB Hy 7 FURNITURE 6 FIXT CAL 04/29/2005 7,975. 100. 7,975. 200 DB Hy 7 OFFICE EQuIRNENT-NE 02/07/2005 6,714. 100. 6,724. 200 DB Hy 5 OFFICE EQUIPMENT-NY 02/05/2005 2,496. 100. 2,496. 200 DB Hy S OFFICE EQuIRNENT-NE 02/15/2005 2,086. 100. 2,086. 200 DB Hy 5 OFFICE EQuIRNENT-NE 11/01/2005 23,164. 100. 13,164. 200 DB Hy 5 FURNITURELFIX-NY 01/20/2005 6,215. 100. 6,225. 200 DB Hy 7 FURNITURELFIX-NY 01/11/2005 111. 100. 111. 200 DB Hy 7 FURNITURELFIX-NY 06/17/2005 8,440. 100. 8,440. 200 DB Hy 7 FURNITURELFIX-NY 07/14/2005 936. 100. 936. 200 DB Hy 7 OFFICE EQUIPMENT- Hy 02/16/2006 9,755. 100. 9,155. 200 DB Hy 5 OFFICE EQUIP. - FLA 02/09/2006 5,550. 100. 5,550. 200 DB Hy 5 LEASEHOLD IMP-NY 02/21/2006 10,485. 100. 10,495. 6,461. 7,080.150 DB Hy 15 619. LEASEHOLD IMP-NY 01/01/2006 21,461. 100. 21,461. 13,223. 14,489.150 DB Hy 15 2,266. FURNITURE 6 Fix-FLA 05/15/2006 2,789. 100. 2,189. 200 DB Hy 5 FURNITURE 6 Fix-FLA 07/20/2006 2,999. 100. 2,999. 200 DB Hy S FURNITURE 6 Fix-NT 01/14/2006 4,664. 100. 4,664. 200 DB Hy S OFFICE EQuIRNENT-NE 05/15/2007 39,598. 100. 19,598. 200 DB Hy S OFFICE EQIFHENT-NY 11/20/2007 29,628. 100. 19,628. 200 DB Hy S OFFICE EQuIRNENT-FL 05/15/2007 11,175. 100. 11,175. 200 DB Hy S OFFICE EQuIRKENT-FL 11/20/2007 5,3211. 100. 5,328. 200 DB Hy S OFFICE EQUIPMENT-CA 05/15/2007 9,291. 100. 8,293. 200 DB Hy 5 OFFICE EQUIPIONT-CA 11/20/2007 1,094. 100. 3,084. 200 DB Hy 5 FURNITURE 6 Fix-NE 02/14/2007 4,891. 100. 4,881. 200 DB Hy 7 FURNITURE 6 FIX-NY 05/15/2007 6,610. 100. 6,620. 200 DB HY 7 OFFICE EQuIRKENT-NT 01/18/2008 9,967. 100. 8,90. 200 DB HY 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 24 EFTA00806428 NEXT MANAGEMENT, LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Date In exp. Beginning Ending Con- MA Current placed in Unadjusted BUS. reduc. Basis Basis for Accumulated Accumulated hie- ven- /CRS CRS -yr 179 Current-year Asset description service cost or basis % inbasts Reduction Depreciation depreciation depreciation thod don Life cues class expense depreciation OFFICE EouIRNENT-Ny 05/02/2008 26,400. 100. 16,400. 200 DB Hy 5_ OFFICE EQUIPMENT-NY 07/02/2008 21,364. 100. 11,364. 200 DB Hy 5 OFFICE EQUIPMENT-FL 01/21/2008 22,126. 100. 12,116. 200 DB Hy 5 OFFICE EQUIPMENT-CA 01/21/2008 14,069. 100. 14,060. 200 DB HY 5 LEASEHOLD IMP-NY 02/12/2008 21,736. 100. 5,860. 5,068. 2,680. 1,079.5/1 HO 15 391. LEASEHOLD IMP-NY 12/19/2008 16,000. 100. 8,000. 8,000. 3,270. 1,801.5/1 HO 25 513. FURNITURE 6 FIX-NY 05/07/2008 1,542. 100. 3,542. 200 DB HY 7 FURNITURE 6 FIX-NY 12/26/2008 4,400. 100. 4,400. 200 DB HY 7 FURNITURE 6 FIX-NY 01/21/2009 4,400. 100. 4,400. 200 DB HY 7 LEASEHOLD IMP-NY 07/01/2010 75,753. 100. 75,753. 150 DB HY IS FURNITURE 6 FIX-NY 01/14/2010 1,214. 100. 1,214. 200 DB HY 7 LEASEHOLD IMP-NY 11/14/2011 11,227. 100. 11,227. 150 DB Hy 25 OFFICE EouIRNENT-NE 05/31/2011 4.382. 100. 4,382. 200 DB Hy 5 OFFICE EQUIPMENT-CA 11/14/2011 13,425. 100. 11,425. 200 DB Hy 5 LEASEHOLD IMP-NY 05/04/2012 4,167. 100. 4,167. 150 DB Hy 25 LEASEHOLD IMP-NY 11/10/2012 14,059. 100. 14,059. 150 DB Hy 25 LEASEHOLD IMP-CA 09/16/2012 5,205. 100. 5,285. 150 DB Hy 25 OFFICE EQUIPMENT-NY 02/22/2012 6,075. 100. 6,075. 200 DB Hy 5 OFFICE EQUIPMENT-NY 06/22/2012 1,325. 100. 3,325. 200 DB Hy 5 OFFICE EQUIPMENT-NY 08/05/2013 21,002. 100. 11,001. 200 DB Hy 5 LEASEHOLD IMP-NY 09/19/2013 111,030. 100.131,030. 150 DB Hy 25 LEASEHOLD IMP-NY 12/17/2013 9,631. 100. 9,633. 150 DB Hy 25 LEASEHOLD IMP-NY 12/31/2013 100,954. 100.200,954. 150 DB Hy 25 LEASEHOLD IMP-FL 09/26/2013 13,994. 100. 13,994. 150 DB Hy 25 LEASEHOLD IMP-CA 08/31/2013 21,300. 100. 21,300. 150 DB Hy 25 FURNITURE 6 FIX-NY 08/08/2013 39,929. 100. 19,929. 200 DB Hy 7 FURNITURE 6 FIX-NY 12/31/2013 11,680. 100. 11,688. 200 DB Hy 7 FURNITURE 6 FIX-FL 01/29/2013 2,825. 100. 2,825. 200 DB Hy 7 OFFICE EouIRNENT-NE 01/20/2014 22,211. 100. 22,211. 200 DB Hy 5 LEASEHOLD IMP-NY 02/27/2014 22,760. 100. 12,760. 200 DB Hy 5 LEASEHOLD IMP-NY 06/04/2014 156,004. 100.256,004. 150 DB Hy 25 FURNITURE 6 FIX-NY 01/10/2014 23,085. 100. 21,005. 200 DB Hy 7 FURNITURE 6 FIX-NY 02/14/2014 41,566. 100. 41,566. 200_0B Hy 7 FURNITURE 6 FIX-NY _05/07/2014 17,813. 100. 17,813. 200 DB Hy 7 FURNITURE 6 FIX-FL 07/10/2014 7,296. 100. 7,196. 200 DB Hy 7 soFTHARE 01/22/2015 255,603. 100. 77,802. 77,801. 23,773.s/L S/L 1.000 23.773. Less: Retired Assets TOTALS 'Assets Refired SA 5X9027 1.000 866297 1608 25 EFTA00806429 NEXT MANAGEMENT LW 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date in exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me- yen- /CRS CRS -yr 179 Current-year Asset description service cost or basis % in basis Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation OFFICE EQUIPMENT-NY 12/31/2015 35,905. 100. 15,905. 200 DB HY 5 35,905. LEASEHOLD IMP-NY 06/05/2015 63,396. 100. 63,396. 150 DB HY 15 63,396. — LEASEHOLD IMP-FL J 09/25/2015 25,179. 100. 25,1/9. 150 DB HY 15 25,179. LEASEHOLD IMP-CA 06/26/2015 44,230. 100. 44,230. 150 DB HY 15 44,230. FURNITURE 8 FIX-FL 10/12/2015 1,776. 100. 3,179. 200 DB HY 7 1,716. FURNITURE 8 FIX-NY 07/01/2015 6,706. 100. 8,706. 200 DB HY 7 8,706. LEASEHOLD IMP-MET 07/0112015 10,000. 100. 10,000. 150 DB HY 15 10,000. Less: Retired Assets 340,193. 340,193. 340,192. 340,192. TOTALS 4,123,029. 1441147. 375,429. 2,326,210. 1,053,232. 1,896,429. 191,194. 43,106. 'Assets Retied SA 5X9027 1.000 866297 1608 26 EFTA00806430 NEXT MANAGEMENT LLC 2015 Depreciation 11-349560? Description of Property NEXT MANAGEMENT, LW GENERAL TRADE Ca BUSINESS Date lig exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me• Yen• /CRS CRS •yr 179 Current•year Asset description service cost or basis % in bass Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation _OTHER THAN LISTED GROSS 4,463,222. 2,666,403. 2,193,424. 2,236,620. 43,196. LESS: RETIRED ASSETS 340,193. 340,193. 340,192. 340,192. SUBTOTAL: 4,123,029. 2,326,210. 1,953,232. 1,896,424. 43,196. LISTED PROPERTY GROSS LESS: RETIRED ASSETS SUBTOTAL: GROSS AMOUNTS 4,463,222. 2,666,403. 2,193,424. 2,236,620. Less: Retired Assets 340,193. 340,193. 340,202. 340,192. TOTALS 4,123,029. 2,326,210. 1,053,212. 1,896,429. 43,196. 'Assets Retired SA 5X9027 1.000 866297 1688 27 EFTA00806431 NEXT MANAGEMENT LLC 2015 Amortization 11-2495607 Description of Property NEXT_MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Date Beginning Ending placed in Accumulated Accumulated Current•year Asset description service Cost or basis amortization amortization Code Lite amortization ORGANIZATION_COSTS 01/04/1989 26,951. 26,950. 26,950. 709 5.000 1- START-VP COSTS_ 0 7/16/1992 26,000. 26,000. 262_000. 195 5.000 START-UP COSTS_ 07/01/1992 25,000. 25,000. 252_000. 195 5.000 COP. NOT TO COMPETE 10/31/2010 3,000,000. 513413. 2,033413. 297 15.000 200,000. ORGANIZATION COSTS 06/15/2018 15,790. 624. 709 15.000 614. Less: Retired Assets TOTALS 2 091 741 911, 221 I III 897 200.614 ' Assets Retired SA 829026 14000 866297 1608 28 EFTA00806432 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Date AMT AMT AMT AMT AMT AMT Regular Post•86 Leased Real Placed in basis for accumulated me- conven• depreciation depreciation depreciation pers. prop. property Assei description Smvice depreciation _ depreciation *hod lion life deduclion deduction adjustment preference preference OFFICE EQUIPMENT 09/31/1991 12,526. 12,526. HY 6.000 COMPUTER EQUIPMENT 10/31/1991 25,041. _182042, HY 6.000 OFFICE EQUIPMENT 01/04/1989 12,215. 14,719. HY 6.000 COMPUTER 01/04/1989 47,819. 57,623. HY 6.000 LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 25,209. HY 6.000 COMPUTER EQUIPMENT 01/31/1992 8,539. 9,539. HY 5.000 PRINTER 02/26/1993 4,241. 4,240. HQ 6.000 OFFICE EQUIPMENT 05/10/1993 2,392. 2,392. HQ 6.000 OFFICE EQUIPMENT 10/01/1993 2,454. 2,454. MQ 6.000 COMPUTER EQUIPMENT 11/01/1993 13,534. 13,534. MQ 6.000 OFFICE EQUIPMENT 06/01/1993 2,500. 2,500. MQ 6.000 LEASEHOLD IMPROV(NYI 02/24/1994 8,179. 4,259. S/L 194 39.000 204. 210. 6. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 1,201. S/L MI 39.000 58. 59. 1. LHI INYI 07/31/1994 10,964. 5,606. S/L 194 39.000 274. 241. 7. LHI INYI 04/31/1994 32,074. 16,341. S/L 194 39.000 802. 822. 20. LHI INYI 10/30/1994 11,325. 5,719. S/L NM 39.000 283. 290. 7. LHI INYI 11/30/1994 12,425. 6,259. S/L NM 39.000 111. 319. 8. OFFICE EQUIPMENT 07/01/1995 55,855. 55,855. HY 6.000 LEASEHOLD IMPROVE 07/01/1995 12,155. 5,915. S/L KM 39.000 304. 312. 8. LEASEHOLD IMPROVE 07/01/1995 11,499. 5,585. S/L 181 39.000 287. 295. 8. FURNITURE 6 FIXTURES 07/01/1995 31,451. 31,451. HY 10.000 FURNITURE 6 FIXTURES 07/01/1995 16,832. 16,831. HY 10.000 OFFICE EQUIPMENT(NYI 07/01/1996 45,326. 45,252. HY 6.000 OFFICE EQUIPMENT(FLI 07/01/1996 10,695. 10,695. HY 6.000 LEASEHOLD IMPROV(NYI 07/01/1996 54,075. 24,956. S/L KM 40.000 1,352. 1,386. 34. FURNITURE 6 FIXTURES 07/01/1996 18,374. 18,174. HY 10.000 FURNITURE 6 FIXTURES 07/01/1996 16,528. 16,528. HY 10.000 FURNITURE 6 FIXTURES 07/01/1996 6,256. 6,256. HY 10.000 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 24,180. S/L NM 40.000 1,385. 1,420. 35. OFFICE FURNITURE 07/01/1997 8,872. HY OFFICE FURNITURE 07/01/1997 1,952. HY LEASEHOLD IMPROV. 11/22/1998 11,700. 4,725. SA KM 40.000 293. 300. 7. LEASEHOLD IMPROV. 08/28/1998 29,553. 12,102. S/L NM 40.000 239. 758. 19. FURNITURE 6 FIXTURES 07/01/1998 12,254. 12,254. HY 10.000 FURNITURE 6 FIXTURES 07/01/1998 21,639. 21,637. HY 10.000 FURNITURE 6 FIXTURES 07/01/1998 13,092. 13,091. HY 10.000 OFFICE EQUIPMENT 07/01/1998 126,474. 126,473. HY 6.000 Less: Retired Assets TOTALS SA 5%9034 1.000 • Assets Retired R66297 1608 29 EFTA00806433 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC GENERAL TRADE OR BUSINESS Date AMT AMT AMT AMT AMT AMT Regular Post•86 Leased Real Placed in basis for accumulated me- conven• depreciation depreciation depreciation pers. prop. property Asset description Service depreciation depreciation thod lion life deduclion deduction adjustment preference preference OFFICE EQUIPMENT 07/09/1998 77,109. 77,109, HY 6.000 • COMPUTER 01/28/1998 236,963. 236,963. HY 6.000 • COMPUTER 01/28/1998 67,330. 67430. HY 6.000 • COMPUTER 01/28/1998 35,900. 35,900. HY 6.000 LEASEHOLD IMPROV(NYI 07/01/1999 112,785. 44,707. S/L NM 39.000 2,892. 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 66,766. HY 7.000 FURNITURE 6 F (FL) 07/01/1999 1,951. 875. 150 DB HY 40.000 1,078. -1,078. COMPUTER (NYI 07/01/1999 202,098. 202,097. HY 6.000 COMPUTER (FLI 07/01/1999 45,399. 45,199. HY 6.000 COMPUTER (CAI 07/01/1999 69,509. 69,509. HY 6.000 COMPUTER (NYI 07/01/1997 38,206. 38,206. HY 6.000 COMPUTER (FLI 07/01/1997 12,929. 12,929. HY 6.000 COMPUTER (NYI 07/01/2000 174,341. 174,341. HY 5.000 COMPUTER (FLI 07/01/2000 66,827. 66,827. HY 5.000 COMPUTER (CAI 07/01/2000 66,027. 66,027. HY 5.000 LEASEHOLD IMPROV(NYI 07/01/2000 37,330. 13,837. S/L 144 39.000 957. 957. FURNITURE 6 F (NY) 07/01/2000 39,506. 39,504. HY 7.000 COMPUTER - NY 08/06/2003 792. 791. HY 5.000 OFFICE EQUIPMENT -NY 08/22/2003 4,022. 4,021. HY 5.000 OFFICE EQUIP/ea - FL 04/09/2003 8,014. 8,014. HY 5.000 OFFICE EQUIP-FL 04/09/2003 1,894. 3,894. HY 5.000 OFFICE EQUIP-FL 04/09/2003 10,500. 10,500. HY 5.000 OFFICE EQUIP-FL 06/01/2003 2,004. 2,001. HY 5.000 OFFICE EQUIP-FL 06/30/2003 940. 939. HY 5.000 OFFICE EQUIP-FL 08/06/2003 1,009. 1,049. HY 5.000 OFFICE EQUIP-FL 10/02/2003 1,091. 1,091. HY 5.000 OFFICE EQUIP-FL 10/08/2003 819. 818. HY 5.000 OFFICE EQUIP-FL 11/18/2003 1,677. 1,671. HY 5.000 OFFICE EQUIP-FL 12/31/2003 1,798. 1,798. HY 5.000 OFFICE EQUIP-CAL 04/09/2003 12,048. 12,048. HY 5.000 OFFICE EQUIP-CAL 04/16/2003 10,500. 10,500. HY 5.000 OFFICE EQUIP-CAL 06/30/2003 1,008. 3,008. HY 5.000 OFFICE EQUIP-CAL 12/31/2003 1,210. 1,209. HY 5.000 LEASEHOLD IMPRO-NY 06/22/2003 51,746. 15,116. S/L RM 39.000 1,327. 1,327. LEASEHOLD IMPRO-NY 07/24/2003 13,040. 3,827. S/L 144 39.000 334. 334. LEASEHOLD IMPRO-NY 08/12/2003 8,879. 2,594. S/L KM 39.000 228. 228. LEASEHOLD IMPRO-NY 09/18/2003 64,217. 18,598. S/L IN 39.000 1,647. 1,647. Less: Retired Assets TOTALS SA 5%0034 1.000 • Assets Retired R66297 1608 30 EFTA00806434 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date AMT AMT AMT AMT AMT AMT Regular Pest-86 Leased-- Real Placed in basis for accumulated me- conven• depreciation depreciation depreciation pers. prop. property Asses description Service depreciation depreciation thod lion life deduction deduction adjustment preference preference LEASEHOLD IMPRO-NY 10/28/2003 8,38B. 2,410, SLL 1,74 39.000 215. 215. LEASEHOLD IMPRO-NY II/19620_03 20_,_990_. 5,_9.85. SLL 674 39.000 538. 538. PURNITURE4FIX- NY 11/25/2003 1,799. 1,799. HY 7.000 PURNITURE4FIX- NY 12/04/2003 14,013. 14,012. HY 7.000 PURNITURE4FIX- NY 08/08/2003 24,271. 24,269. HY 7.000 PURNITURE4FIX- NY 09/26/2003 1,937. 1,937. HY 7.000 PURNITURE4FIX- NY 12/08/2003 1,637. 3,637. HY 7.000 COMPUTER - NY 04/01/2003 32,550. 32,550. HY 5.000 LEASEHOLD IMPROVE-NY 01/16/2004 2,824. 789. S/L 1,24 39.000 72. 72. LEASEHOLD IMPROVE-HY 02/17/2004 1,841. 1,076. S/L WI 39.000 99. 99. LEASEHOLD IMPROVE-HY 12/31/2004 12,500. 8,754. S/L HY 15.000 833. 831. LEASEHOLD IMP-CAL 02/24/2005 6,000. 4,052. 150 DB HY 15.000 155. 355. LEASEHOLD IMP- CAL 01/21/2005 800. 539. 150 DB HY 15.000 41. 47. LEASEHOLD IMP-NY 02/21/2006 10,485. 6,461. 150 DB HY 15.000 619. 619. LEASEHOLD IMP-NY 01/01/2006 21,461. 13,223. 150 DB HY 15.000 1,266. 1,266. LEASEHOLD IMP-NY 02/12/2008 5,868. 2,688. S/L HQ 15.000 191. 391. LEASEHOLD IMP-NY _1211912008 8,000. 3,270. Sirl. HQ 15.000 533. 531. Less: Retired Assets 340,193. 340,193. TOTALS 2,178,163. 1,802,632. 19,723. 18,805. -918. SA 5%9034 1.000 • Assets Retired R66297 1608 31 EFTA00806435 NEXT MANAGEMENT LLC 2015 ACE Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date ACE ACE placed in basis for accumulated Me- Orig. Rem. ACE me — ACE Asset description service depreciation depreciation thod Life Life _ depreciation depreciation used adjustment OFFICE EQUIPMENT 08/31/1991 12,526. 12.526. SL 5.000 5.000j_ COMPUTER EQUIPMENT 10/31/1992 18,041. 18,041. SL 5.000 5.000 FURNITURE4FIXTURES 05/31/1991 20,823. 20.823. SL 7.000 7.000 OFFICE EQUIPMENT 01/04/1989 12,215. 10,656. SL 5.000 4.500 COMPUTER 01/04/1989 47,919. 42,504. SL 5.000 4.500 LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 25,209. SL 4.000 3.500 FURNITURE 4 FIXTURES 01/04/1989 26,013. 24,012. SL 7.000 6.500 FURNITURE4FIXTURES 07/01/1990 1,076. 924. SL 7.000 7.000 COMPUTER EQUIPMENT 01/31/1992 8,539. 8,539. SL 5.000 5.000 PRINTER 02/26/1993 4,241. 4,241. SL 6.000 6.000 OFFICE EQUIPMENT 05/10/1993 2,382. 2,365. SL 6.000 6.000 OFFICE EQUIPMENT 10/01/1993 2,454. 2,403. SL 6.000 6.000 COMPUTER EQUIPMENT 11/01/1993 13,534. 13,442. SL 6.000 6.000 OFFICE EQUIPMENT 06/01/1993 2,500. 2,500. SL 6.000 6.000 LEASEHOLD IMPROV(NYI 02/28/1994 8,179. 4,259. SL 39.000 39.000 204. 204. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 1,201. SL 39.000 39.000 58. 58. LHI IHY) 07/31/1994 10,964. 5,606. SL 39.000 39.000 274. 2/4. LHI INY) 08/31/1994 12,0)4. 16,342. SL 39.000 39.000 802. 802. LHI INY) 10/30/1994 11,325. 5,719. SL 39.000 39.000 283. 283. LHI INY) 11/30/1994 12,425. 6,259. SL 39.000 39.000 311. 311. OFFICE EQUIPMENT 07/01/1995 55,855. 53,527. SL 6.000 6.000 LEASEHOLD IMPROVE 07/01/1995 12,155. 5,915. SL 39.000 39.000 304. 304. LEASEHOLD IMPROVE 0.7101/1995_ 11,498. 5,585. SL 39.000 39.000 267. 287. FURNITURE 4 FIXTURES 0.7101/1995_ 31,451. 302665. SL 10.000 10.000 FURNITURE 4 FIXTURES 0.7101/1995_ 162612. 162412. SL 10.000 10.000 OFFICE EQUIPMENT(NYI 07/01/1996 45,326. 45,252. SL 6.000 6.000 OFFICE EQUIPMENT(FLI 07/01/1996 10.695. 10,695. SL 6.000 6.000 LEASEHOLD IMPROV(NYI 0.7/01/199.6_ 54,075. 24,956. SL 40.000 40.000 1,352. 1,352. FURNITURE 4 FIXTURES 0.7101/199.6_ 18,314. 182 314. SL 10.000 10.000 FURNITURE 4 FIXTURES 07/01/1996 16,528. 16,528. SL 10.000 10.000 FURNITURE 4 FIXTURES 07/01/1996 6,256. 6,256. SL 10.000 10.000 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 24,180. SL 40.000 40.000 1,385. 1,385. LEASEHOLD IMPROV. 11/22/1998 11,700. 4,725. SL 40.000 40.000 293. 291. LEASEHOLD IMPROV. 08/28/1998 29,553. 12,101. SL 40.000 40.000 719. 719. FURNITURE 4 FIXTURES 07/01/1998 12,254. 12,254. SL 10.000 10.000 FURNITURE 4 FIXTURES 07/01/1998 21,619. 21,617. SL 10.000 10.000 Less: Retired Assets TOTALS 'Assets Retired "In certain circumstances, this may be regular tax depreciation rather than AMT depreciation. SA 5)(9033 1.000 CORPORATE PARTNERS' SHARE (FROM SCHEDULE K) 866297 1608 32 EFTA00806436 NEXT MANAGEMENT LLC 2015 ACE Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date ACE ACE placed in basis for accumulated Me• Orig. Rem. ACE AMT•• ACE Asset description service depreciation depreciation thod Lite Life depreciation depreciation used adjustment FURNITURE 6 FIXTURES 07/01/1998 11,092. 13,091. SL 10.000 10.000 OFFICE EQUIPMENT 07/01/1998 126,4/4. 124,471. SL 6.000 6.000 OFFICE EQUIPMENT 07/01/1998 17,109. 17,109. SL 6.000 6.000± • COMPUTER 01/28/1998 236,961. 236,961. SL 6.000 6.000 • COMPUTER 01/28/1998 67,330. 67,330. SL 6.000 6.000 • COMPUTER 01/28/1998 15,900. 15,900. SL 6.000 6.000 LEASEHOLD IHPROV(NYI 07/01/1999 112,785. 44,707. SL 39.000 39.000 2,892. 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 66,766. SL 1.000 7.000 FURNITURE 6 F (FL) 07/01/1999 1,953. 875. DB 40.000 40.000 1,078. 1,078. COMPUTER (NYI 07/01/1999 202,098. 202,097. SL 6.000 6.000 COMPUTER (FLI 07/01/1999 45,399. 45,399. SL 6.000 6.000 COMPUTER (CAI 07/01/1999 69,509. 69,509. SL 6.000 6.000 COMPUTER (NYI 07/01/1997 38,206. 38,206. SL 6.000 6.000 COMPUTER (FLI 07/01/1997 12,929. 12,929. SL 6.000 6.000 COMPUTER-96'RETIRED 07/01/1996 -19,757. SL COMPUTER (NYI 07/01/2000 174,341. 174,341. SL 5.000 5.000 COMPUTER (FLI 07/01/2000 66,827. 66,827. SL 5.000 5.000 COMPUTER (CAI 07/01/2000 66,027. 66,027. SL 5.000 5.000 LEASEHOLD IHPROV(NYI 07/01/2000 17,330. 13,817. SL 39.000 39.000 957. 957. FURNITURE 6 F INT) 07/01/2000 19,506. 39,504. SL 7.000 7.000 COMPUTER - NY 08/06/2003 792. /91. 200DB 5.000 OFFICE EQUIPMENT -NY 08/22/2003 4,022. 4,021. 200DB 5.000 OFFICE comma - FL 04/09/2003 8,014. 8,014. 200DB 5.000 OFFICE EQUIP-FL 04/09/2003 3,894. 3,894. 200DB 5.000 OFFICE EQUIP-FL 04/09/2003 10,500. 10,500. 200DB 5.000 OFFICE EQUIP-FL 06/01/2003 4,088. 2,043. 200DB 5.000 OFFICE EQUIP-FL 06/30/2003 940. 919. 200DB 5.000 OFFICE EQUIP-FL 08/06/2003 2,098. 1,049. 200DB 5.000 OFFICE_EQUIP-FL 10/02/2003 2,187. 1,093. 200DB 5.000 OFFICE EQUIP-FL 10/08/2003 819. 818. 200DB 5.000 OFFICE EQUIP-FL 11/18/2003 3,155. 1,677. 200DB 5.000 OFFICE EQUIP-FL 12/31/2003 1,798. 1,798. 200DB 5.000 OFFICE EQUIP-CAL 04/09/2003 17,211. 12,048. 200DB 5.000 OFFICE EQUIP-CAL 04/16/2003 10,500. 10,500. 200DB 5.000 OFFICE EQUIP-CAL 06/30/2003 3,008. 3,008. 200DB 5.000 OFFICE EQUIP-CAL 12/31/2003 2,420. 1,209. 200DB 5.000 Less: Retired Assets TOTALS _I 'Assets Retired •'In certain circumstances, this may be regular tax depreciation rather than AMT depreciation. SA 5)(9033 1.000 CORPORATE PARTNERS' SHARE (FROM SCHEDULE K) 866297 1608 33 EFTA00806437 NEXT MANAGEMENT LLC 2015 ACE Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW GENERAL TRADE OR BUSINESS Date ACE ACE placed in basis for accumulated Me• Orig. Rem. ACE me- ACE Asset description service depreciation depreciation thod Life Life depreciation depreciation used adjustment LEASEHOLD IMPRO-NY 06/22/2003 51,746. 15,316. SL 39.000 1,327. 1,327. LEASEHOLD IMPRO-NY 01/24/2003 26,080. 3,827. SL 39.000 33)1„ 334. LEASEHOLD IMPRO-NY 08/12/2003 8,879. 2,594. SL 39.000 228_._ _228. LEASEHOLD IMPRO-NY 09/18/2003 64,217. 18,598. SL 39,000 1.00. LSI. LEASEHOLD IMPRO-NY 10/28/2003 8,383. 2,410. SL _ 39,_000 _215_. 215. LEASEHOLD IMPRO-NY 11/19/2003 20,990. 5,985. SL 39.000 538. 538. FURNITURE4FIX- NY 11/25/2003 1,799. 1,799. 200DB 7.000 FURNITURE4FIX- NY 12/04/2003 14,013. 14,012. 200DB 7.000 FURNITURE4FIX- NY 08/08/2003 24.211. 24,269. 200DB 7.000 FURNITURE4FIX- NY 09/26/2003 1,937. 1,937. 200DB 7.000 FURNITURE4FIX- NY 12/08/2003 3,637. 3,637. 200DB 7.000 COMPUTER - NY 04/01/2003 12,550. 12,550. 200DB 5.000 LEASEHOLD IMPROVE-NY 01/16/2004 2,824. 789. SL 39.000 72. 72. LEASEHOLD IMPROVE-NY 02/17/2004 3,843. 1,076. SL 39.000 99. 99. LEASEHOLD IMPROVE-NY 12/31/2004 12.500. 8,754. SL 15.000 811. 811. LEASEHOLD IMP-CAL 02/24/2005 6,000. 4,052. DB 15.000 15.000 355. 355. LEASEHOLD IMP- CAL 01/21/2005 800. 519. DB 15.000 15.000 47. 47. LEASEHOLD IMP-NY 02/21/2006 10,485. 6,461. DB 15.000 15.000 619. 619. LEASEHOLD IMP-NY 03/01/200.6 21,461. 13,223. DB 15.000 15.000 1,266. 1,_26_6. LEASEHOLD IMP-NY 02/12/200.8 5,868. 2,688. SL 15.000 391. 391. LEASEHOLD IMP-NY 12/19/2008 8,000. 3,270. SL 15.000 511. 511. Less: Retired Assets 340,191. 340,193. TOTALS 2,220.712. 1.825,116. 19.723. 19,721. 'Assets Retired "In certain circumstances, this may be regular tax depreciation rather than AMT depreciation. SA 5)(9033 LOGO CORPORATE PARTNERS' SHARE (FROM SCHEDULE K) R66297 1608 34 EFTA00806438 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065 SUPPORTING SCHEDULES LINE 4 - PAGE 1 - ORD INCOME(LOSS) FROM OTH PTNRSHPS AND FIDUCIARIES FROM TWO TWELVE MANAGEMENT, LLC 248,456. TOTAL ORDINARY INCOME(LOSS) FROM OTHER PTNRSHPS AND FIDUCIARIES 248,456. LINE 7 - PAGE 1 - OTHER INCOME(LOSS) FOREIGN EXCHANGE LOSS -234,496. TOTAL OTHER INCOME(LOSS) -234,496. LINE 14 - PAGE 1 - TAXES NYC UNINCORPORATED BUSINESS TAX 152,391. PAYROLL TAXES 578,105. NY COMMERCIAL RENT TAX 21,486. FL COMMERCIAL RENT TAX 1,853. CA LLC TAX 800. BEVERLY HILLS TAX 14,500. LA TAX 405. TOTAL TAXES 769,540. LINE 20 - SUMMARY OF TRAVEL, MEALS AND ENTERTAINMENT GROSS MEALS AND ENTERTAINMENT 181,584. LESS 50% LIMITATION TO SCH M-1 90,792. NET MEALS & ENTERTAINMENT 90,792. TOTAL 90,792. LINE 20 - PAGE 1 - OTHER DEDUCTIONS AMORTIZATION 200,614. TRAVEL, MEALS, AND ENTERTAINMENT 90,792. INSURANCE EXPENSE 112,776. OFFICE SUPPLIES AND EXPENSES 105,286. PRINTING EXPENSE 43,338. SCOUTING EXPENSE 9,354. COMPUTER EXPENSE 108,201. CLEANING SERVICE 40,953. UTILITIES 34,652. POSTAGE 11,389. MISCELLANEOUS 104,822. BANK CHARGES 57,683. CONTINUED ON NEXT PAGE STATEMENT 1 MUNI31A00 R66297 1608 35 EFTA00806439 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065 SUPPORTING SCHEDULES LINE 20 - PAGE 1 - OTHER DEDUCTIONS ( PUBLICATIONS & SUBSCRIPTIONS 12,677. TRAVEL 803,503. ADVERTISING AND PROMOTION 259,861. COMMISSIONS EXPENSE 2,002,456. PROFESSIONAL FEES 240,861. TELEPHONE EXPENSE 214,004. CONSULTING FEES 640,280. CONTEST EXPENSE 5,550. PAYROLL PROCESSING EXPENSE 14,299. OVERHEAD REIMBURSEMENT -1,470,551. MISCELLANEOUS MODEL EXPENSES 55,856. PROMOTIONAL MODEL EXPENSES 100,004. LITIGATION SETTLEMENT 45,632. CALIFORNIA LLC FEE 6,000. NYS LLC FEE 3,000. ORGANIZATION COSTS 5,000. TOTAL OTHER DEDUCTIONS 3,858,292. SCHEDULE K - LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 17,910. TOTAL INTEREST INCOME 17,910. SCHEDULE K - LINE 12 - SECTION 179 DEDUCTION TRADE/BUSINESS ACTIVITIES 191,194. TOTAL SECTION 179 DEDUCTION 191,194. STATEMENT 2 MUNI31A00 R66297 1608 36 EFTA00806440 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065 SUPPORTING SCHEDULES SCHEDULE K - LINE 13A - CHARITABLE CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS - 50% LIMITATION FROM TWO TWELVE MANAGEMENT, LLC 5,160. CHARITABLE CONTRIBUTIONS 98,175. TOTAL CASH CHARITABLE CONTRIBUTIONS - 50% LIMITATION 103,335. TOTAL CHARITABLE CONTRIBUTIONS 103,335. SCHEDULE K - LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY TRADE/BUSINESS ACTIVITIES -918. FROM TWO TWELVE MANAGEMENT, LLC -58. TOTAL DEPRECIATION ADJUSTMENT ON PROPERTY -976. SCHEDULE K - LINE 18C - NONDEDUCTIBLE EXPENSES FROM TWO TWELVE MANAGEMENT, LLC 27,762. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 27,762. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE PORTION 90,792. TOTAL NONDEDUCTIBLE EXPENSES 118,554. STATEMENT 3 MUNI31A00 R66297 1608 37 EFTA00806441 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065, SUPPORTING SCHEDULES SCHEDULE L - LINE 6 - OTHER CURRENT ASSETS BEGINNING ENDING PREPAID EXPENSES 213,894. 159,432. DEFERRED TAX ASSET- CURRENT 15,000. 17,000. TOTAL OTHER CURRENT ASSETS 228,894. 176,432. SCHEDULE L - LINE 8 - OTHER INVESTMENTS BEGINNING ENDING INVESTMENT IN TWO TWELVE -214,609. 83,446. TOTAL OTHER INVESTMENTS -214,609. 83,446. SCHEDULE L - LINE 13 - OTHER ASSETS BEGINNING ENDING DEPOSITS 29,606. 43,931. RESTRICTED CASH 40,000. 40,000. DUE FROM AFFILIATES 774,693. 1,313,624. DUE FROM MODELS 1,464,108. 1,607,052. DEFERRED TAX BENEFIT-LONG TERM 53,000. 47,000. TOTAL OTHER ASSETS 2,361,407. 3,051,607. SCHEDULE L - LINE 17 - OTHER CURRENT LIABILITIES BEGINNING ENDING ACCRUED EXPENSES 1,304,038. 1,786,832. TOTAL OTHER CURRENT LIABILITIES 1,304,038. 1,786,832. SCHEDULE L - LINE 20 - OTHER LIABILITIES BEGINNING ENDING ADVANCES FROM AFFILIATES 21,519. 8,342. DUE TO RELATED PARTY 1,223,293. 1,476,782. DEFERRED RENT-LONG TERM 69,223. 135,009. TOTAL OTHER LIABILITIES 1,314,035. 1,620,133. STATEMENT 4 MUNI31A00 R66297 1608 38 EFTA00806442 NEXT MANAGEMENT, LLC 13-3495607 FORM 1065, SCHEDULE M-2, SUPPORTING SCHEDULES SCHEDULE M-2 - LINE 6A - CASH DISTRIBUTIONS CASH DISTRIBUTIONS 3,000,000. TOTAL CASH DISTRIBUTIONS 3,000,000. STATEMENT 5 MUNI31A00 R66297 1608 39 EFTA00806443 NEXT MANAGEMENT, :.LC 11-340607 SCHEDULE M-3, PART II DETAIL LINE 7 - INCOME (LOSS) FROM U.S. PARTNERSHIPS EAT EAT PROFIT-SHARING LOSS-SHARING INCOME (LOSS) TEMPORARY PERMANENT INCOME (LOSS( NAME EIN PERCENTAGE PERCENTAGE PER ENCORE 571a DIFFERENCE DIFFERENCE PER TAW RETURN TWO TWELVE MANAGEMENT LLC 20-1354409 80.000 80.000 298,055. 3,164. -59,919. 243,296. TOTAL 290,055. 5,160. -59,919. 243,296. R66297 1608 STATEMENT 6 40 EFTA00806444 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART II DETAIL LINE 25 - OTHER INCOME (LOSS) AND EXPENSE/DEDUCTION ITEMS WITH NO DIFFERENCES GROSS RECEIPTS 20,059,894. OPERATING EXPENSES -5,196,855. TOTAL 14,863,039. STATEMENT 7 R66297 1608 41 EFTA00806445 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART III DETAIL LINE 30 - OTHER EXPENSE/DEDUCTION ITEMS WITH DIFFERENCES EXPENSE TEMPORARY PERMANENT DEDUCTION DESCRIPTION PER INCOME STMT DIFFERENCE DIFFERENCE PER TAX RETURN RENTAL EXPENSE - STRAIGHTLINING OF LEASE 815,962. -66,152. 749,810. SALARIES 11,415,658. -50,801. 11,364,857. ORGANIZATION COSTS 5,000. 5,000. TOTAL 12,231,620. -111,953. 12,119,667. R66297 1608 42 STATEMENT 8 EFTA00806446 NEXT MANAGEMENT, LLC 13-3495607 PASS-THROUGH ENTITIES SUPPORTING SCHEDULES TWO TWELVE MANAGEMENT, LLC PASS-THROUGH ENTITIES - LINE 13A-G CHARITABLE CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 5,160. TOTAL CASH CHARITABLE CONTRIBUTIONS 5,160. TOTAL CHARITABLE CONTRIBUTIONS 5,160. PASS-THROUGH ENTITIES - LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 27,762. TOTAL NONDEDUCTIBLE EXPENSES 27,762. STATEMENT 9 MUNI31A00 R66297 1608 43 EFTA00806447 Schedule K-1, Item L - Analysis of Partners Capital Accounts Penner A. Capital Account at B.Capnideomnbuted aPannetWSInamsolSch. D.WithdrawalsalW E. Capital Account at Number Beginning of Year During Year M•2, Unes3,4,and7 Distributions End of Year 1 777 664. 974 394. 1 260 000. 492 058. 2 573,991. 719,196. 930,000. 363,187. 3 499 929. 626 397. 810 000. 316 326. MIMS 1,851,584. 2,319,987. 3,000,000. 1,171,571. JSA 5P9040 1.003 NEXT MANAGEMENT, LLC 13-3495607 R66297 1608 44 EFTA00806448 NEXT MANAGEMENT, LLC 13-3495607 Partner Summary Partner Number Partner Name Partner Number . Beginning Capital Capital Contribution Property Contribution m Cash Distributions Property Distribution 737 Distributions I CLAXON INC 11-3508513 T27,664. 2,260,000. 2 PARTNERSHIP HOLDING CORP. 11-3501977 571,991. 930,000. 3 THE WILCOR CROUP, INC. 21-3682060 499,929. 010,000. To ale : ,:: : 4. J. 940.940. JSA 589040 1.000 866297 1608 45 EFTA00806449 651113 Final K-I 1 I Amended Kil OMB No. 1505.0123 Schedule K-1 (Form 1065) 2015 For calendar year 2015. or tax Part III Partner's Share of Current Year income, Deductions. Credits and Other items Department of the Treasury 1 Ordinary business income (Ices) IS Credits Internal Revenue Service year beginning 2015 ending 20 1,014,678. 2 Net rental real estate income (loss) Partner's Share of Income, Deductions, 3 Other net rental Mcome (loss) 16 Foreign transactions Credits, etc. ► See back of form and separate Instructions. Part I Information About the Partnership Guaranteed payments A Pan nership's employer identification number 13-3495607 5 Interest income B Partnership's name. address. city, state, and 2IP code 7,522. 6e Ordinary dividends NEXT MANAGEMENT, LLC 15 WATTS STREET 6b Qualified cavklends 6TH FLOOR NEW YORK, NY 10013 7 Royalties C IRS Center where partnership Med return EF / LE 8 Net short-term capital gain pass) D 0 Check if this is a publicly traded pannershp (PTP) ea Net long-term capital gain (loss) 17 Alternative minimum ten(NM) RPM Part Information About the Partner A* —410. E Partners identifying number 1 9b Collectibles (28%) gain (loss) 13-3508513 F Partner's name, address. eq. state. and ZIP code 9c Unrecaptured section 1250 gain CLAXON INC 10 Net section 1231 gain (loss) 18 Tax-exempt income and C/O NEXT MANAGEMENT LLC nondeductible expenses 15 WATTS STREET 6TH FLOOR 11 Other income (loss) C* 49,793. NEW YORK, NY 10013 O LX1 member-manager General partner or LLC U Limited partner or other LLC member H 5] Domestic partner El Foreign partner 11 What type of entity is the partner? CORPORATION 19 Distributions 12 Section 179 deduction A 1,260,000. 12 If this penner is a retirement plan (lRNSEPIKeogIVelc.). check here ❑ * 80,301. J Partners share ol profit. bee. and Capital (see instructions): 13 Other deductions Beginning Ending A* 43,4O1. 20 Other information Profit 42.000000 42.000000 % Loss 42.000000 42.000000 % A 7,522. Capital 42.000000 42.000000 % K Partner's share of liabilities at year end: Nonrecourse $ 6,117, 989. 14 Seff-employment earnings (loss) Qualified nonrecourse financing. $ Recourse $ 621,752. L Partners capital account anaimis: 'See attached statement for additional information. Beginning capital account 777,664. Capital contributed during the year $ Current year increase (decrease) $ 974,394. For IRS Use Only Withdrawals a distributions . . . . $ ( 1,260,000. ) Ending capital account $ 492,058. Tax basis il GAAP E Section 700(0) book Other (explain) 1.1 Did the partner contribute properly with a built-in gain or loss? ❑ Yes EN° If 'Yes.' attach statement (see instructions) For Paperwork Reduction Ml Notice. see Instructions for Form 1065. IRS.govitorm1065 Schedule K-1 (Form 1065) 2015 JSA P12O0 1.000 R66297 1608 46 EFTA00806450 Schedule K-1 (Form 1065) 2015 PARTNER # 1 CLAXON INC Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is Code Report on passive or nonpassive and enter on your return as follows. L Empowerment zone Report on employment credit Passive loss See the Partners Instructions PA Credit for increasing research Passive income Schedule E. one 28. column (g) activities Nonpassive loss Schedule E. the 28. column (h) N Credit for employer social See the Partners Instructions Non pass-ve income Schedule E. line 28. column 0) security and Medicare taxes 2. Net rental real estate income (loss) See the Partners Instructions O Backup withholdrig 3. Other net rental income (loss) P Other credits Net Income Schedule E. the 28. column (g) 16. Foreign transactions Net loss See the Partners Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28. column 0) possession 5. Interest Income Form 1040. Ine 8a B Gross income from M sources }- Form 1116. Pan I 6a. Ordinary dividends Form 1040. linage C Gross income sourced at 6b. Qualified dividends Form 1040. ine9b partner level 7. Royalties Schedule E. line 4 Foreign gross income sourced at partnerslup level 8. Net short-term capital gain (loss) Schedule D. line Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form 1116. Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet. line 4 F Other (Schedule D instructions) Deductions allocated and apportioned at partner level 0 Interest expense Form 1116. Part I 9c. Unrecaptured section 1250 gain See the Partners Instructions H Other Form 1116. Pan I 10. Net section 1231 gain (loss) See the Partners Instructions Deductions allocated and apportioned at partnership levet to foreign source 11. Other income (loss) income Code I Passive categcry A Other portfolio income floss) See the Partners Instructions J General category Form 1116. Part I B Involuntary conversions See the Partner's Instructions K Other C Sec. 1256 contracts /1 straddles Form 6781. Mel Other information 0 Mining exploration poets recapture See Pub. 535 L Total foreign taxes paid Form 1116. Pan II E Cancellation of debt Form 1040. line 21 or Form 982 IA Total foreign taxes accrued Form 1116. Pan II F Other income (loss) See the Partners Instructions N Reduction in taxes available far credit Form 1116. line 12 12. Section 179 deduction See the Partners Instructions 0 Foreign trading gross receipts Form 8873 13. Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) 0 Other foreign transactions See the Partners Instructions B Cash contributions (30%) 17. Alternative minimum tax (MAT) items C Noncash contributions (50%) A Post-1986 depreciation adjustment Noncash contributions (30%) See the Partners B Adjusted gait or loss See the Partner's E Capital gain property to a 50% Instructions C Depletion (other than al & gas) Instructions and organization (30%) D Oil, gas. & geothermal - gross income the Instructions for F Capital gain properly (20%) E Oil, gas. & geothermal deductions Form 6251 0 Contributions (IOC%) F Other AMT items H Investment interest expense Form 4952. Mel 18. Tax-exempt Income and nondeductib expenses I Deductions royalty income Schedule E. Ire 19 A Tax-exempt interest income Form 1040. line 80 J Section 59(e)(2)npencrures See the Partners Instructions B Other tax-exempt ncome See the Partners Instructions K Deductions portfolio (2% floor) Schedule A. line 23 C Nondeductible expenses See the Partners Instructions L Deductions port-lobo (other) Schedule A. line 28 19. Distributions NI Amounts paid for medical insurance Schedule A. fine I ix Fan 1040. ine 29 A Cash and marketable securties N Educational assistance benefits See the Partners Instructions B Distribution subject to section 737 See the Partners Instructions 0 Dependent care benefits Form 2441. line 12 C Other property P Preproductwe penod expenses See the Partners Instructions 20. Other Information 0 Commercial rentalcahon deduction from rental real estate activities A Investment income Form 4952. line 4a See Form 8582 instructions B Investment expenses Form 4952. line R Pensions and IRAs See the Partners Instructions C Fuel tax credit niormation Form 4136 S Reforestation expense deduction See the Partners Instructions T Domestic production wines Cs Qualified rehabinabon expenditures (other than rental real estate) See the Partners Instructions information See Form 8903 instructions E Basis of energy property See the Partners Instructions U Qualified production amities income Form 8903. Ine 7b V Employers Form W-2 wages F Recapture ol low-income housing Form 8903. line 17 credit (section 420(5)) Form 8611. line 8 W Other deductions See the Partners Instructions CI Recapture ol low-income housing 14. Sell-employment earnings (loss) credit (other) Form 8611. line 8 Note: If you have a section 179 deduction or any partner-level deductions. see the H Recapture ol investment credit See Form 4255 Partner's Instructions before oompletng Schedule SE. I Recapture of other credits See the Partners Instructions A Net earnings (loss) from J Look-back interest completed self-employment Schedule SE. Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partners Instructions K Look-back interest - income forecast C Gross non-farm income See the Partners Instructions method See Form 8866 15. Credits L Dispositions ol properly with A Low-Income housing credit section 179 deductions (section 420)(5)) from pre-2008 NI Recapture ol section 179 deduction bur/dings N Interest expense for corporate B Low-Income housing credit partners (other) from pre-2008 buldngs O Section 453(1)(3) information C Low-Income housing credit P Section 453A(c) information (section 420)(5)) from O Section 1260(b) information post-2007 buddngs See the Partners Instructions R Interest allocable to production ts. See the Partners D Low-Income housing credit expenditures r Instructions (other) from post-2007 S CCF nonqualified vmhdrawals buildings T Depletion information al and gas E Qualified rehabiudion U Reserved expenditures (rental real estate) V Unrelated business taxable income F Other rental real estate credits W Precontrbution gain floss) 0 Other rental credits X Section 108(i) information H Undistributed capital gains crecM Form 1040. line 73: check box a V Net investment income I Biofuel producer credit 2 Other information J Work opportunity credit See the Partners Instructions Jas K Disabled access credit SP ISM 1.000 R66297 1608 47 EFTA00806451 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 1 CLAXON INC ITEM L - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11 1,022,200. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12, 13, 16L, AND 16M 123,702. TOTAL INCOME PER SCHEDULE K-1 898,498. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 38,133. DEFERRED TAX EXPENSE 1,680. SHAREHOLDER SALARIES 21,336. RENT ESCALATION ADJUSTMENT 27,784. NONDEDUCTIBLE EXPENSES 11,660. PLUS: INCOME RECORDED ON BOOKS, NOT INCL. ON SCH. K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 34,659. PLUS: DEDUCTIONS ON SCH. K-1, NOT CHARGED AGAINST BOOKS: AMORTIZATION 77,626. DEPRECIATION 64,204. TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR) 974,394. ITEM L - WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 1,260,000. TOTAL WITHDRAWALS AND DISTRIBUTIONS 1,260,000. LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 7,522. TOTAL INTEREST INCOME 7,522. LINE 12 - SECTION 179 EXPENSE DEDUCTION FROM TRADE/BUSINESS 80,301. TOTAL SECTION 179 EXPENSE DEDUCTION 80,301. STATEMENT 1 609000 1.000 R66297 1608 48 EFTA00806452 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 1 CLAXON INC LINE 13 - OTHER DEDUCTIONS A CASH CONTRIBUTIONS (50%) FROM TRADE\BUSINESS 41,234. FROM PASS-THROUGH ENTITIES 2,167. TOTAL BOX A 43,401. LINE 17 - ALTERNATIVE MINIMUM TAX (AMT) ITEMS A POST-1986 DEPRECIATION ADJUSTMENT FROM OTHER (GENERAL BUSINESS) -386. FROM PASS-THROUGH ENTITIES -24. TOTAL BOX A -410. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 11,660. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 11,660. TRAVEL AND ENTERTAINMENT EXPENSE NONDEDUCTIBLE 38,133. TOTAL NONDEDUCTIBLE EXPENSES 49,793. STATEMENT 2 1509000 1.000 R66297 1608 49 EFTA00806453 PTA 1 CLAXON INC NEXT MANAGEMENT LLC 13-349560? chedule of Activities Type way Deposed Cal PTP Paseavough k TWO TWELVE MANAGEMENT, LLC P\T GEN TS NO NO NO YES B: NEXT MANAGEMENT, LLC PORTFOLIO NO NO NO NO C: NEXT MANAGEMENT, LLC GEN. T/B NO NO NO NO D: A B C D 1 Ordinary business income (loss) 100,352. 910,326. 2 Nat rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 7,522. --- 2 6a Ordinary dividends 3 6b Qualified dividends Royalties Net short-term capital gain (loss) 1 87 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income floss) 12 Section 179 deduction 80,301. 13a-g Contributions Deductions 2,167. 41,234. 1314O Deductions related to portfolio income 13h Investment interest expense 131 Section 59(e)(2) expenditures 13I-v Other deductions 15a,c Low-income housing credit (section 42()1(5)) 15b,d Low-income housing credit (other) I 151 15e ()gratified rehabilitation expenditures (rental real estate) Other rental real estate credits u 15g Other rental credits 15h-p Other credits 16b Gross income from all sources 16c Gross income sourced at partner level 16d Foreign gross income (partnership level): Passive 16e Foreign gross income (partnership level): General categories 16f Foreign gross income (partnership level): Other Foreign Transactions 16g Deductions allocated and apponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner leveg: Other 16i Deductions allocated and apportioned (partnership level): Passive 16j Deductions allocated and apportioned (partnershp level): General calcgolios 16k Deductions allocated and apportioned fpannership leveg: Other 161 Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions 17a Post-1986 depreciabsn adjustment -386. Alternative 17b Adjusted gain or loss 17c Depletion (other than al and gas) Minimum Tax 17d Gross Income from oil. gas. and geothermal 17e Deductions from oil, gas, and geothermal 17f Other MAT items 18a Tax-exempt Interest income is 18b Other tax-exempt income 'A g 18c ,.. Nondeductible expenses 11.660. 38.133. 20a Investment income 7,522. S2 20b 20c-x Other information Investment expenses JSA 5P9011 1.000 866297 1608 50 EFTA00806454 NEXT MANAGEMENT, LLC 13-3495607 PARTNER ACTIVITIES DETAIL PARTNER # 1 CLAXON INC ACTIVITY: TWO TWELVE MANAGEMENT, LLC LINE 13A-G CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS A CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 2,167. TOTAL CHARITABLE CONTRIBUTIONS 2,167. LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 11,660. TOTAL NONDEDUCTIBLE EXPENSES 11,660. STATEMENT 1 1509000 1.000 R66297 1608 51 EFTA00806455 651113 Schedule K-1 U Ame^Ce0 1(.1 OMB No. 1545.0123 (Form 1065) 2015 For calendar year 2015. or tax Part III Partner's Share of Current Year Income, Deductions, Credits and Other Items Department of the Treasury 1 Ordinary business income (loss) 15 Credits Internal Revenue Service year beginning 2016 ending 20 748,931. 2 Net rental real estate income (kiss) Partner's Share of Income, Deductions, 3 Other net rental income (loss) 16 Foreign transactions Credits, etc. lib See back of form and separate Instructions. Part Information About the Partnership 4 Guaranteed payments A Partnership's employer identification number 13-34956O7 5 Interest income B Partnership's name. address. dry. state, and 2IP code 5,552. 6s Ordinary dividends NEXT MANAGEMENT, LLC 15 WATTS STREET 6b Qualified dividends 6TH FLOOR NEW YORK, NY 1OO13 7 Royalties C IRS Center where partnership flied return EFILE 8 Net short-term capital gain (loss) D 0 Check tr this is a publicly traded parthershp (PTP) Gs Net long-term capital gain (loss) 17 Malmo.* minimum tar(ANT) Items Part II Information About the Partner A* —3O2. E Partners identilying number 2 9b Collectibles (28%) gain (loss) 13-35O1977 F Partners name, address. dry. state. and 2IP code 9c Unrecaptured section 1250 gain PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 10 Net section 1231 gain (loss) 18 Tax-exempt income and nondeductible expenses 15 WATTS STREET 6TH FLOOR 11 Other income (loss) C* 36,751. NEW YORK. NY 1OO13 CI LX1 member-manager General partner or LLC U Limited member partner or other LLC H 5] Domestic partner El Foreign partner 11 What type o4 entity is Me partner? s CORPORATION 19 DistributIons 12 Section 179 deduction A 93O,OOO. 12 If this partner is a retirement plan (lRNSEPIKecolVetc.). check here ❑ 59,271. J Partners share o1profit loss. and capital (see instructions): 13 Other deducbons Beginning Ending A* 32,O34. 20 Other information Profs 31.OOOOOO 31.OOOOOO Loss 31.OOOOOO 31.OOOOOO A 5,552. Capital 31.OOOOOO 31.OOOOOO K Partner's share of liabilities at year end: Nonrecourse 4,530,420. 14 Seff-employment earnings (loss) Qualified nonrecourse financing. $ Recourse 460,309. L Partners capital account analyse: 'See attached statement for additional information. Beginning capital account S 573,991. Capital contributed during the year Current year increase (decrease) $ 719,196. Withdrawals 8 distributions . . . . 8 ( C 93O,OOO. ) O Ending capital account 363,187. 0 Tax basis GAAP ❑ Section 704(b) book Other (explain) IA Did the partner contribute properly with a built-in gain or loss? ❑ Yes EN° If - Yes.' attach statement (see instructions) For Paperwork Reduction Act Notice, see Instructions for Form 1065. IRS.go torm1065 Schedule K-1 (Form 1065) 2015 SA P1200 1.000 R66297 16O8 52 EFTA00806456 Schedule K-1 (Form 1065) 2015 PARTNER # 2 PARTNERSHIP HOLDING CORP. Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) Is Code Report on passive or nonpasslve and enter on vox return as follows. L Empowerment zone Report on employment credit Passive loss See the Partners Instructions PA Credit for increasing research Passive ncome Schedule E. one 28. column (g) activities Nonpassive loss Schedule E. Ice 28. column (h) N Credit for employer social See the Partners Instructions Non pass-ve income Schedule E. line 28. column 0) security and Medicare taxes 2. Net rental real estate income (loss) See the Partners Instructions O Backup withhcideg 3. Other net rental income (loss) P Other credits Net income Schedule E. Ice 28. column (g) 16. Foreign transactions Net loss See the Partners Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28. column 0) possession 5. Interest Income Form 1040. Ine 8a B Gross income from M sources }- Form 1116. Pan I 6a. Ordinary dividends Form 1040. linage C Gross income sourced at 6b. Qualified dividends Form 1040. Ine9b partner level 7. Royalties Schedule E. line 4 Foreign gross income sourced at partnerslup level 8. Net short-term capital gain (loss) Schedule D. line Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form 1116. Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gam Worksheet, line 4 F Other (Schedule D instructions) Deductions allocated and apportioned at partner level 0 Interest expense Form 1116. Pan I 9c. Unrecaptured section 1250 gain See the Partners Instructions H Other Form 1116. Pan I 10. Net section 1231 gain (loss) See the Partners Instructions Deductions allocated and apportioned at partnership levet to foreign source 11. Other income (loss) income Code I Passive category A Other portfolio income (loss) See the Partners Instructions J General category Form 1116. Pan I B Involuntary conversions See the Partner's Instructions K Other C Sec. 1256 contracts /1 straddles Form 6781. Mel Other infonnathon 0 Mining exploration costs recapture See Pub. 535 L Total foreign taxes paid Form 1116. Pan II E Cancellation of debt Form 1040. line 21 or Form 982 Total foreign taxes accrued Form 1116. Pan II F Other income (loss) See the Partners Instructions N Reduction in taxes available far credit Form 1116. line 12 12. Section 179 deduction See the Partners Instructions 0 Foreign !Wag gross receipts Form 8873 13. Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) 0 Other foreign transactions See the Partners Instructions B Cash contributions (30%) 17. Alternative minimum tax (MAT) items C Noncash contributions (50%) A Post-1986 depreciation adjustment Noncash contributions (30%) See the Partners B Adjusted gam or loss See the Partners E Capital gain property to a 50% Instructions C Depletion (other than or a gas) Instructions and organization (30%) D Oil, gas. a geothermal - gross income the Instructions for F Capital gain properly (20%) E Oil, gas. 8 geothermal deductions Form 6251 0 Contributions (IOC%) F Other AMT items H Investment interest expense Form 4952. Mel 18. Tax-exempt Income and nondeductible expenses I Deductions royalty income Schedule E. Ire 19 A Tax-exempt interest income Form 1040. line 8b J Section 59(e)(2)npencrures See the Partners Instructions B Other tax-exempt ncome See the Partners Instructions K Deductions portfolio (2% floor) Schedule A. line 23 C Nondeductible expenses See the Partners Instructions L Deductions port-lobo (other) Schedule A. line 28 19. Distributions NI Amounts paid for medical insurance Schedule A. line 14 Fan 1040. In. 29 A Cash and marketable securities N Educational assistance benefits See the Partners Instructions B Distribution subject 10 section 737 See the Partners Instructions 0 Dependent care benefits Form 2441. line 12 C Other property P Preproductwe penod expenses See the Partners Instructions 20. Other Information 0 Commercial rentalcabco deduction from rental real estate activities A Investment income Form 4952. line 4a See Form 8582 instructions B Investment expenses Form 4952. line A Prawns and IRAs See the Partners Instructions C Fuel tax credit niormation Form 4136 S Reforestation expense deduction See the Partners Instructions T Domestic production wines Ci Qualified rehabinabon expenditures (other than rental real estate) See the Partners Instructions Information See Form 8903 instructions E Basis of energy property See the Partners Instructions U Qualified production acmes income Form 8903. Ine 7b V Employers Form W-2 wages F Recapture ol low-income housing Form 8903. line 17 credit (section 42((5)) Form 8611. line 8 W Other deductions See the Partners Instructions CI Recapture ol low-income housing 14. Sell-employment earnings (loss) credit (other) Form 8611. line 8 Note: If you have a section 179 deduction or any partner-level deductions. see the H Recapture ol investment credit See Form 4255 Partner's Instructions before oompletng Schedule SE. I Recapture of other credits See the Partners Instructions A Net earnings (loss) from J Look-back interest completed self-employment Schedule SE. Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partners Instructions K Look-back interest - income forecast C Gross non-farm income See the Partners Instructions method See Form 8866 15. Credits L Dispositions ol properly with A Low-income housing credit section 179 deductions (section 420)(5)) from pre-2008 NI Recapture ol section 179 deduction buiidings N Interest expense for corporate B Low-income housing credit partners (other) from pre-2008 buldngs O Section 453(1)(3) information C Low-income housing credit P Section 453A(c) information (section 420)(5)) from O Section 1260(b) information post-2007 buildngs See the Partners Instructions Ft Interest allocable to production ts. See the Partners D Low-income housing credit expenditures r Instructions (other) from post-2007 S CCF nonqualified vmhdrawals buildings T Depletion information or and gas E Qualified rehabiudion U Reserved expenditures (rental real estate) V Unrelated business taxable income F Other rental real estate credits W Precontrbution gain (loss) 0 Other rental credits X Section 1080) information H Undistributed capital gams credi Form 1040. line 73: check box a V Nei investment income I Biofuel producer credit 2 Other information J Work opportunity credit See the Partners Instructions Jas K Disabled access credit SP 1300 1.000 R66297 1608 53 EFTA00806457 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 2 PARTNERSHIP HOLDING CORP. ITEM L - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11 754,483. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12, 13, 16L, AND 16M 91,305. TOTAL INCOME PER SCHEDULE K-1 663,178. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 28,145. DEFERRED TAX EXPENSE 1,240. SHAREHOLDER SALARIES 15,749. RENT ESCALATION ADJUSTMENT 20,507. NONDEDUCTIBLE EXPENSES 8,606. PLUS: INCOME RECORDED ON BOOKS, NOT INCL. ON SCH. K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 25,581. PLUS: DEDUCTIONS ON SCH. K-1, NOT CHARGED AGAINST BOOKS: AMORTIZATION 57,296. DEPRECIATION 47,388. TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR) 719,196. ITEM L - WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 930,000. TOTAL WITHDRAWALS AND DISTRIBUTIONS 930,000. LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 5,552. TOTAL INTEREST INCOME 5,552. LINE 12 - SECTION 179 EXPENSE DEDUCTION FROM TRADE/BUSINESS 59,271. TOTAL SECTION 179 EXPENSE DEDUCTION 59,271. STATEMENT 1 609000 1.000 R66297 1608 54 EFTA00806458 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 2 PARTNERSHIP HOLDING CORP. LINE 13 - OTHER DEDUCTIONS A CASH CONTRIBUTIONS (50%) FROM TRADE\BUSINESS 30,434. FROM PASS-THROUGH ENTITIES 1,600. TOTAL BOX A 32,034. LINE 17 - ALTERNATIVE MINIMUM TAX (AMT) ITEMS A POST-1986 DEPRECIATION ADJUSTMENT FROM OTHER (GENERAL BUSINESS) -284. FROM PASS-THROUGH ENTITIES -18. TOTAL BOX A -302. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 8,606. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 8,606. TRAVEL AND ENTERTAINMENT EXPENSE NONDEDUCTIBLE 28,145. TOTAL NONDEDUCTIBLE EXPENSES 36,751. STATEMENT 2 1509000 1.000 R66297 1608 55 EFTA00806459 FIR # 2 PARTNERSHIP HOLDING CORP NEXT MANAGEMENT LLC 13-349560? chedule of Activities Type way Mewed Cal PTP Pappthrepah k TWO TWELVE MANAGEMENT, LLC P\T GEN TB NO NO NO YES B: NEXT MANAGEMENT, LLC PORTFOLIO NO NO NO NO C: NEXT MANAGEMENT, LLC GEN. T/B NO NO NO NO D: A B C D 1 Ordinary business income (loss) 77,021. 671, 910. 2 Nat rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 5,552. --- 2 6a Ordinary dividends 3 6b Qualified dividends Royalties Net short-term capital gain (loss) 1 87 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income floss) 12 Section 179 deduction 59,272. 13a-g Contributions Deductions 1, 600. 30, 434. 1314O Deductions related to portfolio income 13h Investment interest expense 131 Section 59(e)(2) expenditures 13I-v Other deductions 15a,c Low-income housing credit (section 42()1(5)) 15b,d Low-income housing credit (other) I 151 15e ()wigged rehabilitation expenditures (rental real estate) Other rental real estate credits u 15g Other rental credits 15h-p Other credits 16b Gross income from all sources 16c Gross income sourced at partner level 16d Foreign gross income (partnership level): Passive 16e Foreign gross income (partnership level): General categories 16f Foreign gross income (partnership level): Other Foreign Transactions 16g Deductions allocated and apponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner leveg: Other 16i Deductions allocated and apportioned (partnership level): Passive , . , , 16j Deductions allocated and apportioned (partnershp level): General calcipies 16k Deductions allocated and apportioned (partnership Imp:Other 161 Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions 17a Post-1986 depredation adjustment -254. Alternative 17b Adjusted gain or loss 17c Depletion (other than col and gas) Minimum Tax 17d Gross Income from oil. gas. and geothermal 17e Deductions from oil, gas, and geothermal 171 Other MAT items 184 Tax-exempt Interest income is 18b Other tax-exempt income ,..'A g 18c Nondeductible expenses 8.606. 28.145. 20a Investment income 5,552. S2 20b 20c-x Investment expenses Other information JSA 5P9011 1.000 866297 1608 56 EFTA00806460 NEXT MANAGEMENT, LLC 13-3495607 PARTNER ACTIVITIES DETAIL PARTNER 4 2 PARTNERSHIP HOLDING CORP. ACTIVITY: TWO TWELVE MANAGEMENT, LLC LINE 13A-G CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS A CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 1,600. TOTAL CHARITABLE CONTRIBUTIONS 1,600. LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 8,606. TOTAL NONDEDUCTIBLE EXPENSES 8,606. STATEMENT 1 1509000 1.000 R66297 1608 57 EFTA00806461 651113 Schedule K-1 Final K-I 1 I Amended K-1 OMBNo. 1545.0123 (Form 1065) 2015 For calendar year 2015. or tax Part III Partner's Share of Current Year income, Deductions. Credits and Other items Department of the Treasury 1 Ordinary business mama (Ices) 15 Credits Internal Revenue Service year beginning 2015 ending 20 652,293. 2 Net rental real estate income (loss) Partner's Share of Income, Deductions, 3 Other net rental income (loss) 16 Foreign transactions Credits, etc. Ile See back of form and separate Instructions. Part I Information About the Partnership Guaranteed payments A Partnership's employer identification number 13-3495607 5 Interest income B Partnership's name. address. dry. state, and 2IP code 4,836. 6s Ordinary dividends NEXT MANAGEMENT, LLC 15 WATTS STREET 66 Qualified dividends 6TH FLOOR NEW YORK, NY 10013 7 Royalties C IRS Center where partnership filed return EFILE 8 Net short-term capital gain (loss) D ❑ Check if this is a publicly traded partnershp (PTP) Gs Net long-term capital gain (loss) 17 Alternative minimum teX(MAT)INIM Part Information About the Partner A* —264. E Partners identifying number 3 9b Collectibles (28%) gain (loss) 13-3682060 F Partners name, address. city. state. and 2IP code 9c Unrecaptured section 1250 gain THE 14/ LCOR GROUP, INC. 10 Net section 1231 gain (loss) 18 Tax-exempt income and C/O NEXT MANAGEMENT LLC nondeductible expenses 15 WATTS STREET 6TH FLOOR 11 Other income (loss) C* 32,010. NEW YORK NY 10013 O Li] General partner or LLC U Limited partner or other LLC member-manager member H 5] Domestic partner El Foreign partner 11 What type o4 entity is the partner? S CORPORATION 19 Distributions 12 Section 179 deduction A 810,000. 12 If this partner is a retirement plan (lRNSEPIKeogIVelc.). check here ❑ * 51,622. J Partners share of profit. loss. and capital (see instructions): 13 Other deductions Begbnrng Ending A* 27,900. 20 Other information Profit 27.000000 27.000000 % Loss 27.000000 27.000000 % A 4,836. Capital 27.000000 27.000000 % K Partner's share of liabilities at year end: Nonrecourse 3,945,550. 14 Set-employment earnings (loss) Qualified nonrecourse financing. $ Recourse 400, 951. L Partners capital account aflame: 'See attached statement for additional information. Beginning capital account S 499,929. Capital contributed during the year $ Current year ncrease (decrease) $ 626,397. For IRS Use Only Withdrawals 8 distributions . . . . $ ( 810,000. ) Ending capnal account $ 316,326. Tax basis GAAP ❑ Section 700(0) book Other (explain) 1.1 Did the partner contribute properly with a built-in gain or loss? ❑ Yes EN° If 'Yes.' attach statement (see instructions) For Paperwork Reduction Ml Notice, see Instructions for Form 1065. IRS.govitorm1065 Schedule K-1 (Form 1065) 2015 JSA P1200 1.000 R66297 1608 58 EFTA00806462 Schedule K-1 (Form 1065) 2015 PARTNER # 3 THE WILCOR GROUP, INC. Page 2 This list identifies the codes used on Schedule K-1 for all partners and provides summarized reporting information for partners who file Form 1040. For detailed reporting and filing information, see the separate Partner's Instructions for Schedule K-1 and the instructions for your income tax return. 1. Ordinary business income (loss). Determine whether the income (loss) is Code Report on passive or nonpassive and enter on your return as folios's. L Empowerment zone Report on employment credit Passive loss See the Partners Instructions PA Credit for increasing research Passive income Schedule E. one 28. column (g) activities Nonpassive loss Schedule E. the 28. column (h) N Credit for employer social See the Partners Instructions Non pass-ve income Schedule E. line 28. column 0) security and Medicare taxes 2. Net rental real estate income (loss) See the Partners Instructions O Backup withholdrig 3. Other net rental income (loss) P Other credits Net Income Schedule E. Ice 28. column (g) 16. Foreign transactions Net loss See the Partners Instructions A Name of country or U.S. 4. Guaranteed payments Schedule E. line 28. column 0) possession 5. Interest Income Form 1040. Ine 8a B Gross income from M sources }- Form 1116. Pan I 6a. Ordinary dividends Form 1040. Isle 9a C Gross income sourced at 6b. Qualified dividends Form 1040. ine9b partner level 7. Royalties Schedule E. line 4 Foreign gross income sourced at partnerslup level 8. Net short-term capital gain (loss) Schedule D. line 5 Passive category 9a. Net long-term capital gain (loss) Schedule D. line 12 E General category Form 1116. Part I 9b. Collectibles (28%) gain (loss) 28% Rate Gain Worksheet. line 4 F Other (Schedule D instructions) Deductions allocated and apportioned at partner level 0 Interest expense Form 1116. Part I 9c. Unrecaptured section 1250 gain See the Partners Instructions H Other Form 1116. Pan I 10. Net section 1231 gain (loss) See the Partners Instructions Deductions allocated and apportioned at partnership levet to foreign source 11. Other income (loss) income Code I Passive categcry A Other portfolio income floss) See the Partners Instructions J General category Form 1116. Part I B Involuntary conversions See the Partner's Instructions K Other C Sec. 1256 contracts /1 straddles Form 6781. Me I Other information 0 Mining exploration poets recapture See Pub. 535 L Total foreign taxes paid Form 1116. Pan II E Cancellation of debt Form 1040. line 21 or Form 982 IA Total foreign taxes accrued Form 1116. Pan II F Other income (loss) See the Partners Instructions N Reduction in taxes available far credit Form 1116. line 12 12. Section 179 deduction See the Partners Instructions 0 Foreign !Wag gross receipts Form 8873 13. Other deductions P Extraterritorial income exclusion Form 8873 A Cash contributions (50%) 0 Other foreign transactions See the Partners Instructions B Cash contributions (30%) 17. Alternative minimum tax (MAT) items C Noncash contributions (50%) A Post-1986 depreciation adjustment Noncash contributions (30%) See the Partners B Adjusted gain or loss See the Partner's E Capital gain property to a 50% Instructions C Depletion (other than al & gas) Instructions and organization (30%) D Oil, gas. & geothermal - gross income the Instructions for F Capital gain properly (20%) E Oil, gas. & geothermal deductions Form 6251 0 Contributions (IOC%) F Other AMT items H Investment interest expense Form 4952. Me I 18. Tax-exempt Income and nondeductib expenses I Deductions royalty income Schedule E. Ire 19 A Tax-exempt interest income Form 1040. line 80 J Section 59(e)(2) expenditures See the Partners Instructions B Other tax-exempt income See the Partners Instructions K Deductions portfolio (2% floor) Schedule A. line 23 C Nondeductible expenses See the Partners Instructions L Deductions port-lobo (other) Schedule A. line 28 19. Distributions NI Amounts paid for medical insurance Schedule A. line 14 Fan 1040. In. 29 A Cash and marketable securties N Educational assistance benefits See the Partners Instructions B Distribution subject 10 section 737 See the Partners Instructions 0 Dependent care benefits Form 2441. line 12 C Other property P Preproductwe penod expenses See the Partners Instructions 20. Other Information 0 Commercial rentalcabon deduction from rental real estate activities A Investment income Form 4952. line 4a See Form 8582 instructions B Investment expenses Form 4952. line R Pensions and IRAs See the Partners Instructions C Fuel tax credit niormaten Form 4136 S Reforestation expense deduction See the Partners Instructions T Domestic production wines Cs Qualified rehabinabon expenditures (other than rental real estate) See the Partners Instructions information See Form 8903 instructions E Basis of energy property See the Partners Instructions U Qualified production amities income Form 8903. Ine 7b V Employers Form W-2 wages F Recapture ol low-income housing Form 8903. line 17 credit (section 420(5)) Form 8611. line 8 W Other deductions See the Partners Instructions CI Recapture ol low-income housing 14. Sell-employment earnings (loss) credit (other) Form 8611. line 8 Note: If you have a section 179 deduction or any partner-level deductions. see the H Recapture ol investment credit See Form 4255 Partner's Instructions before oompletng Schedule SE. I Recapture of other credits See the Partners Instructions A Net earnings (loss) from J Look-back interest completed self-employment Schedule SE. Section A or B long-term contracts See Form 8697 B Gross farming or fishing income See the Partners Instructions K Look-back interest - income forecast C Gross non-farm income See the Partners Instructions method See Form 8866 15. Credits L Dispositions ol properly with A Low-Income housing credit section 179 deductions (section 420)(5)) from pre-2008 NI Recapture ol section 179 deduction bur/dings N Interest expense for corporate B Low-Income housing credit partners (other) from pre-2008 buldngs O Section 453(1)(3) information C Low-Income housing credit P Section 453A(c) information (section 420)(5)) from O Section 1260(b) information post-2007 budrIngs See the Partners Instructions R Interest allocable to production ts. See the Partners D Low-Income housing credit expenditures r Instructions (other) from post-2007 S CCF nonqualified vmhdrawals buildings T Depletion information al and gas E Qualified rellabiudion U Reserved expenditures (rental real estate) V Unrelated business taxable income F Other rental real estate credits W Precontrbution gain floss) 0 Other rental credits X Section 108(i) information H Undistributed capital gains crew Form 1040. line 73: check box a V Net investment income I Biofuel producer credit 2 Other information J Work opportunity credit See the Partners Instructions Jas K Disabled access credit SP ISM 1.000 R66297 1608 59 EFTA00806463 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 3 THE WILCOR GROUP, INC. ITEM L - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11 657,129. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12, 13, 16L, AND 16M 79,522. TOTAL INCOME PER SCHEDULE K-1 577,607. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 24,514. DEFERRED TAX EXPENSE 1,080. SHAREHOLDER SALARIES 13,716. RENT ESCALATION ADJUSTMENT 17,861. NONDEDUCTIBLE EXPENSES 7,496. PLUS: INCOME RECORDED ON BOOKS, NOT INCL. ON SCH. K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 22,281. PLUS: DEDUCTIONS ON SCH. K-1, NOT CHARGED AGAINST BOOKS: AMORTIZATION 49,902. DEPRECIATION 41,274. TOTAL INCOME PER ITEM L, CURRENT YEAR INCR(DECR) 626,397. ITEM L - WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 810,000. TOTAL WITHDRAWALS AND DISTRIBUTIONS 810,000. LINE 5 - INTEREST INCOME OTHER INTEREST INCOME INTEREST INCOME 4,836. TOTAL INTEREST INCOME 4,836. LINE 12 - SECTION 179 EXPENSE DEDUCTION FROM TRADE/BUSINESS 51,622. TOTAL SECTION 179 EXPENSE DEDUCTION 51,622. STATEMENT 1 609000 1.000 R66297 1608 60 EFTA00806464 NEXT MANAGEMENT, LLC 13-3495607 SCH K-1 SUPPORTING SCHEDULES PARTNER # 3 THE WILCOR GROUP, INC. LINE 13 - OTHER DEDUCTIONS A CASH CONTRIBUTIONS (50%) FROM TRADE\BUSINESS 26,507. FROM PASS-THROUGH ENTITIES 1,393. TOTAL BOX A 27,900. LINE 17 - ALTERNATIVE MINIMUM TAX (AMT) ITEMS A POST-1986 DEPRECIATION ADJUSTMENT FROM OTHER (GENERAL BUSINESS) -248. FROM PASS-THROUGH ENTITIES -16. TOTAL BOX A -264. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 7,496. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 7,496. TRAVEL AND ENTERTAINMENT EXPENSE NONDEDUCTIBLE 24,514. TOTAL NONDEDUCTIBLE EXPENSES 32,010. STATEMENT 2 1509000 1.000 R66297 1608 61 EFTA00806465 PTR # 3 THE KILCOR GROUP INC NEXT MANAGEMENT LLC 13-349560? chedule of Activities Type way Depased Cal PTP Paraihrough k TWO TWELVE MANAGEMENT, LLC P\T GEN TS NO NO NO YES B: NEXT MANAGEMENT, LLC PORTFOLIO NO NO NO NO C: NEXT MANAGEMENT, LLC GEN. T/B NO NO NO NO D: A B C D 1 Ordinary business income (loss) 6%083. 585,210. 2 Nat rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 40336. --- 2 6a Ordinary dividends 6b Qualified dividends 2. Royalties Net short-term capital gain (loss) 1 87 9a Net long-term capital gain (loss) 9b Collectibles (28%) gain (loss) 9c Unrecaptured section 1250 gain 10 Net section 1231 gain (loss) 11 Other income floss) 12 Section 179 deduction 51, 622. 13a-g Contributions Deductions 1,393. 26,567. 1314O Deductions related to portfolio income 13h Investment interest expense 131 Section 59(e)(2) expenditures 13I-v Other deductions 15a,c Low-income housing credit (section 42()1(5)) 15b,d Low-income housing credit (other) I 151 15e ()gratified rehabilitation expenditures (rental real estate) Other rental real estate credits u 15g Other rental credits 15h-p Other credits 16b Gross income from all sources 16c Gross income sourced at partner. level 16d Foreign gross income (partnership level): Passive 16e Foreign gross income (partnership level): General categories 16f Foreign gross income (partnership level): Other Foreign Transactions 16g Deductions allocated and epponioned (partner leveg: Interest expense 16h Deductions allocated and apportioned (partner leveg: Other 16i Deductions allocated and apportioned (partnership level): Passive , , , , 16j Deductions allocated and apportioned (partnershp level): General calcimmies 16k Deductions allocated and apportioned Ipattnetship level): Other 161 Total foreign taxes paid 16m Total foreign taxes accrued 16n Reduction in taxes available for credit 16o Foreign trading gross receipts 16p Extraterritorial income exclusion 16q Other foreign transactions 17a Post-1986 depreciaben adjustment -16. -248. Alternative 17b Adjusted gain or loss 17c Depletion (other than al and gas) Minimum Tax 17d Gross Income from oil. gas. and geothermal 17e Deductions from oil, gas, and geothermal 171 Other MAT items 186 Tax-exempt Interest income is 18b Other tax-exempt income 'A g 18c ,.. Nondeductible expenses 7,496. 24.514. 20a Investment income 4,826. Other 20b Investment expenses 20c-x Other information JSA 5P9011 1.000 866297 1608 62 EFTA00806466 NEXT MANAGEMENT, LLC 13-3495607 PARTNER ACTIVITIES DETAIL PARTNER # 3 THE WILCOR GROUP, INC. ACTIVITY: TWO TWELVE MANAGEMENT, LLC LINE 13A-G CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS A CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 1,393. TOTAL CHARITABLE CONTRIBUTIONS 1,393. LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 7,496. TOTAL NONDEDUCTIBLE EXPENSES 7,496. STATEMENT 1 1509000 1.000 R66297 1608 63 EFTA00806467 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form 8453-LLC 2015 California E-File Return Authorization for LLC's for the year ended December 31. 2015 The original form should be signed (use full name) and dated by an authorized partner. The signed form should be returned on or before October 17, 2016 via: Email (preferred method) 4.filna_herrlonUp corn Fax 212.699.8832 Mail Berdon LLP Attn: Tax Control 360 Madison Avenue, 6th Floor New York, NY 10017 We must receive your signed Form 8453-LLC before we can electronically transmit your return. This return indicates a tax due in the amount of $5,790. Payment of this liability is made payable by authorizing to initiate an electronic funds withdrawal as indicated on Form 8453-LLC. The amount of $5.790 will be withdrawn from your bank account on September 10, 2016. Please review for accuracy the financial institution routing number and account number. DO NOT separately file your tax return with the state. Doing so will delay the processing of your return. The state will notify us when your return is accepted. Your return is not considered filed until the state confirms their acceptance. which may occur after the due date of your return. EFTA00806468 027 DO NOT MAIL THIS FORM TO FTB Date Accepted TAXABLE YEAR California &file Return Authorization for FORM 2015 Limited Liability Companies 8453-LLC Limited liabilitycompany name Identifying numb°, NEXT MANAGEMENT, LLC 200506910067 Part I Tax Return Information (whole dollars only) 1 Total income (Form 568. Schedule B. Line 12 or Form 568. Line 1 for Single Member LLCs) 1 20,091,944. 2 Ordinary income (Form 568, Schedule B, line 23 or Form 568, Line 1 for Single Member LLCs) 2 2,530,411. 3 Tax and fee due (Form 568. line 13) 3 5,790. 4 Overpayment (Form 568, hne 14) 4 5 Total amount due (Form 568, line le) 5 5,790. Part II Settle Your Account Electronically for Taxable Year 2015. (Payment due 4/1812016) 6 Electronic funds ...Andrews Bit Amount 5,790. 6b Withdrawal date (mmiddiyyyy) 09/10/2016 Part Ill Make Annual Tax or Estimated Fee Pa ment for Taxable Year 2016 This is NCLI an installment payment for the current amount the LLC owes. Annual Tax Payment I Estimated Fee Payment 7 Amount 8 Withdrawal date Part IV Banking Information (Have you verified the LLC's banking information?) 9 Routing number 026013576 10 Account number 1501920157 11 Type of account: E Checking D Savings Part V Declaration of Authorized Member or Manager I authorize the limited liability company account to be settled as designated in Parts It. Ill, and IV. If I check Box 6, I authorize an electronic funds withdrawal for the amount listed on line 6a and for the 2016 annual tax or estimated fee payment amount listed on line 7 from the account specified in Part IV. Under penalties of perjury, I declare that I am an authorized member or manager of the above limited liability company and that the information I provided to my electronic return originator (84O). transmitter, or intermediate service provider and the amounts in Part I above agree with the amounts on the corresponding lines of the limited liability company's 2015 California income tax return. To the best of my knowledge and belief, the limited liability company's return is true, correct, and complete. If the limited liability company is filing a balance due return. I understand that if the Franchise Tax Board (FTB) does not receive full and timely payment of the limited liability company's tax liability, the limited liability company will remain liable for the tax liability and all applicable interest and penalties. I authorize the limited liability company return and accompanying schedules and statements be transmitted to the FTB by my ERO, transmitter. or intermediate service provider. It the processing of the limited liability company's return or refund is delayed, I authorize the Fre to disclose to my ERO or intermediate service provider, the reason(s) for the delay or the date when the refund was sent. Sign PRES OF MEMBER—MGR Here Signature of authorized member or manager Date Lae Part VI Declaration of Electronic Return Originator (ERO) and Paid Preparer. See instructions. I declare that I have reviewed the above limited liability company's return and that the entries on form FTB 8453-LLC are complete and correct to the best of my knowledge. (If I am only an intermediate service provider. I understand that I am not responsible for reviewing the limited liability company's return. I declare, however, that form FIB 8453-LLC accurately reflects the data on the return.) I have obtained the signature from the limited liability company authorized member or manager on form FIB 8453-LLC before transmitting this retum to the FIB: I have provided the limited liability company authorized member or manger with a copy of all forms and information that I will file with the FTB. and I have followed all other requirements described in FIB Pub. 1345. 2015 e-file Handbook for Authorized ofIle Providers. I will keep form FIB 8453-LLC on file for four years from the due date of the return or four years from the date the limited liability company retum is filed, whichever is later, and I will make a copy available to the FIB upon request. If I am also the paid preparer, under penalties of perjury. I declare that I have examined the above limited liability company's return and accompanying schedules and statements. and to the best of my knowledge and belief, they are true, correct, and complete. I make this declaration based on all information of which I have knowledge. ERO Must ERO's signature Date Check if also paid preparer III Check self- employed Sign Firm's name (or yours if self-employed) BERDON LLP 13-0485070 and address ZIP code 360 MADISON AVE NEW YORK NY 10017 Under penalties of perjury. I declare that I have examined the above limited liability company's return and accompanying schedules and statements. and to the best of my knowledge and belief, they are true, correct, and complete. I make this declaration based on all information o which I have knowledge. Paid I Date ICheck ❑ Paid preparers MIN Paid preparers if self- Preparer signature employed Must FEIN Firm's name (or yours Sign it self-employed) and address ZIP code For Privacy Notice, get FTB 1131 ENG/SP. FTB 8453-LLC 2015 SYOS7S 1.000 R66297 1608 64 EFTA00806469 ' A Limited Liability Company • CALIFORNIA FORM 2015 Return of Income 568 RE' 200506910067 NEXT 13-3495607 15 PBA 812990 TYB 01-01-2015 TYE 12-31-2015 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 ACCTMETHOD 2 01-04-1989 ASSETS 16,760,866. INITIAL 0 FINAL 0 AMENDED 0 J (1) During this taxable year. did another person or legal entity acquire control or majomy ownership (more than a 50% interest) of this LLC or any legal entity in which the LLC holds a controlling or majority interest that owned California real properly (i.e.. land. buildings). leased such properly fora term of 35 years or more. or leased such property Yam a government agency 10( any term? • ❑ Yes al No (2) During this taxable year. did this partnership acquire control or majority ownership (more than a 50% interest) in another legal entity that owned California real properly (i.e.. land. buildings). leased such property for a term of 35 years or more. or leased such properly from a government agency for any term, • ❑ Yes al No (3) During this taxable year. has more than 50% of the partnership's ownership interests cumutathety transferred n one or more transactions after an interest in California real property (i.e.. land. buidngs) was translerred to it that was excluded from property tax reassessment under Revenue and Taxation Code section 62(O2) and it was not reported on a previous years tax return? • ❑ Yes al No (Yes requires filing of statement. penalties may apply - see instructions.) Complete Schedule IW, LLC Income Worksheet (on Side 7) first to determine Line 1. Whole dollars only 1 Total income from Schedule IW. Limited Liability Company Income Worksheet. See instructions • 1 5,505,311 00 2 Limited Liability Company fee. See instructions • 2 11,790 00 3 2015 annual Limited Liability Company tax. See instructions • 3 80000 4 Nonconsenting nonresident members' tax liability from Schedule T (Side 4) • 4 00 5 Total tax and fee. Add line 2. line 3, and line 4 • 5 12,590 00 6 Amount paid with form FT8 3537 and 2015 form FTB 3522 and form FIB 3536 • 6 6,800 00 7 Overpayment from prior year allowed as a credit • 7 00 8 Withholding (Form 592-B andfor 593) • 8 00 9 Total payments. Add line 6. tine 7. and ine 8 • 9 6,800 00 10 Use tax. This is not a total line. See instructions • 10 00 11 Payments balance. II line 9 is more than line10. subtract line 10 from line 9 • 11 6,800 00 12 Use Tax balance. II line 10 is more than line 9, subtract line 9 from line 10 • 12 00 • 027 3671154 I Form 568 Cl 2015 Side 1 • svouelmo R66297 1608 65 EFTA00806470 Whole dollars only 13 Tax and fee due. If line 5 is more than line 11, subtract line 11 from line 5 • 13 5, 790 00 14 Overpayment. If line 11 is more than line 5, subtract line 5 from line 11 • 14 00 15 Amount of line 14 to be credited to 2016 tax or fee • 15 00 16 Refund. II the total of line 15 is less than line 14. subtract the total from line 14 *16 00 17 Penalties and Interest. See instructions • 17 00 18 Total amount due. Add line 12. Ilne 13. line IS. and line I7. then subtract Ine 14 tram the result. 518 5,790. 00 K Enter the maximum number of members in the LLC at any time during the year. For multiple member LLCs. attach a California Schedule K-1 (568) for each ol these members • 3 L Is this LLC an investment partnership? See General Information 0 • ❑ Yes al No M (1) Is this LLC apportioning or allocating Income to California using Schedule Fr • al Wisp No (2) If "No." was this LLC registered in California without earning any income sourced in this state during the taxable year? C) ❑ Wisp No N Was there a distribution of property or a transfer (for example. by sale or death) of an LLC interest during the taxable year? • ❑ Yes E No P (1) Does the LLC have any foreign (non-U.S.) nonresident members/ • ❑ Yes al No (2) Does the LLC have any domestic (non-foreign) nonresident members? • 2 Yes ❑ No (3) Were Form 592. Form 592-A. Form 592-B and Form 592-F filed for these members/ • ❑ Yes al No O Are any members in this LLC also LLCs or partnerships/ • ❑ Yes al No Fl Is this LLC under audit by the IRS or has it been audited in a prior year? • ❑ Yes al No S Is this LLC a member or partner in another multiple member LLC or partnership? • al Yes El No If 'Yes,' complete Schedule EO. Part I. T Is this LLC a publicly traded partnership as defined in IRC Section 469(k)(2)' ❑ 2 No Yes U (1) Is this LLC a business entity ckstegarcied for tax purposes/ • ❑Yes 2 No (2) If 'Yes." see instructions and complete Side 1. Side 2. Side 3. Schedule B. Side 5. and Side 7. if applicable. Are there credits or credit carryovers attributable to the cisregarded entity? • (El Yes ❑ No (3) II "Yes' to U(1). does the disregarded entity have total Income derived from or attributable to California that is less than the LLC's total income from all sources? ❑ Yes ❑ No ✓ Has the LLC included a Reportable Transaction, or Listed Transaction within this retum? (See instructions for definitions). If 'Yes." complete and attach federal Form 8886 for each transaction • ❑ Yes al No W Did this LLC file the Federal Schedule M-3 (federal Form 1065)? • Yes ❑ No X Is this LLC a direct owner of an entity that filed a federal Schedule M-3? • Yes ❑ No Y Does the LLC have a beneficial interest in a trust or is it a grantor ol a Trust? • ri Yes E No If 'Yes,' attach schedule of trusts and federal identification numbers. Z Does this LLC own an interest in a business entity disregarded for tax purposes? C) [ Yes X No If 'Yes.' complete Schedule EO Part II. (continued on Side 3) Side 2 Form 568 01 2015 7:1277 3672154 I wins.) too° R66297 1608 66 EFTA00806471 (continued from Side 2) AA Is any member of the LLC related (as defined in IRC Section 287(c)(4)) to any other member of the LLC" • D Yes No B8 Is any member of the LLC a trust for the benefit of any person related (as defined in IRC Section 287(c)(4)) to any other member? • 0 Yes al No CC (1) Is the LLC deferring any income from the disposition of assets? (see instructions) • 0 Yes 0 No (2) It 'Yes,' enter the year of asset disposition • DD Is the LLC reporting previously deferred Income from: (see instructions) • Installment Sale • I IRC §1031 • 0 IRC §1033 • 0 Other EE (1) Did this LLC generate a New Employment Credit? • D Yes ®No (2) II 'Yes.' enter the generated amount • FF "Doing business as" name. See instructions: • GG (1) Has this LLC operated as another entity type such as a corporation. S corporation. General Partnership. Limited Partnership, or Sole Proprietorship in the previous five (5) years? • D Yes No (2) II 'Yes'. provide prior FEIN(s) if different, business name(s), and entity typists) for prior returns filed with the FEB and/or IRS (see instructions). NH (1) Has this LLC previously operated outside California', • ®Yes 0 No (2) Is this the first year of doing business in California/ • 0 Yes No Single Member LLC Information and Consent - Complete only if the LLC is tfisregarded. • Federal 11NISSN Sole Owner's name (as shown en owners return) FEIN/CA Corp noiCA SOS Fie no. • Return Ned with the FIB by the Omer Sweet Address. City. State and ZIP Code klembries Consent Statement: I consent to the winsochan ol the Stale of Caltorna to tax my Ile income and agree lotto returns and pay tax 0 0, Form 540 0 (5) Form 541 as may be required by the FtenalliSO Tax Ward. 0 (2) Form 100 0 (6) Form 100S I❑ (3) Form 565 0 (7) Form 568 Signature illl. Dale 0 (4) Other To learn about your privacy nghls. how we may use your intarrealtan. and the consequences for net provslisg the requested intarmation. go to Whoopee and search tor PIS, note. TO reptant this notice by mat. eall 00:0452 ST11. WOW penalties of priory. I deOrre Oar I have erernhe0 Ns return. InCludhg accompanying schedules axi iSsiements. and $3 Itali best Ol My kn.:wedgeand dawn IS true. correct. and complete. Declaration of preparer (other than laqsame) is based on all intarmalian ol which ph:paler has any knowledge. Signature of authorized Dale Sign member or Telephone Here mane it, Authorized member or manager's email address (optional) • (212) 925-5100 Raid Date KIN preparers ChOdt if rn Paid signature IP sellencleyedLj • P00002675 Preparer's FEIN Us• OIBY Firm's name (or yourl. If self-employed) pr. BERDON LLP • 13-0485070 and address 360 MADISON AVE Telephone NEW YORK NY 10017 • 212-832-0400 May the FIB discuss this return with the preparer shown above (see instructions)? . . . . • El Yes 0 No • SY0504 1.000 027 3673154 I Form 568Ci 2015 Side 3 • R66297 1608 67 EFTA00806472 NEXT MANAGEMENT, LLC 13-3495607 Schedule A Cost of Goods Sold 1 Inventory at beginning of year 1 00 2 Purchases less cost of items withdrawn for personal use 2 00 3 Cost of labor 3 00 4 Additional IRC Section 263A costs. Attach schedule 4 00 5 Other costs. Attach schedule 5 00 6 Total. Add line 1 through line 5 6 00 7 Inventory at end of year 7 00 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Schedule Et line 2 00 9 a Check all methods used for valuing closing inventory: (1) ❑ Cost (2) n Lower of cost or market as described in Treas. Reg. Section 1.4714 (3) ❑ Write down of 'subnormal" goods as described in Treat Reg. Section 1.471.2(c) (4) ❑ Other. Specify method used and attach evianation b Check this box if the LIFO inventory method was adopted this taxable year for any goods. If checked. attach federal Form 970 0 c Do the rules of IRC Section 263A (with respect to properly produced or acquired for resale) apply to the LLC? 0 yes 0 No d Was there any change (other than for IRC Section 263A purposes) in determining quantities. cost, or valuations between opening and closing inventory? If 'Yes.' attach explanation ❑Yes ❑No Schedule B Income and Deductions Caution Include only trade or business income and expenses on Ilne 1a through line 22 below. See the Instructions for more Information. 1 a Ciorrosasisesrecepts s 20,059,894. b Latsoswrer anumcess and $ c Balance • 1C 20, 059, 894 00 2 Cost of goods sold (Schedule A. line 8) ® 2 00 3 GROSS PROFIT. Subtract line 2 from line 1c • 3 20, 059, 894 00 4 Total ordinary income from other LLCs. partnerships. and fiduciaries. Attach schedu6 247 i. 4 266, 546 00 5 Total ordinary loss from other LLCs. partnerships, and fiduciaries. Attach schedule • 5 00 Income 6 Total farm profit. Attach federal Schedule F (Form 1040) • 6 00 7 Total farm loss. Attach federal Schedule F (Form 1040) • 7 00 8 Total gains included on Schedule D-1. Part II. line 17 (gain only) • 8 00 9 Total losses included on Schedule D-1. Part II. line 17 (loss only) • 9 00 10 Other income. Attach schedule • 10 00 11 Other loss. Attach schedule $7MT la 11 234,496 00 12 Total income (loss). Combine line 3 through kne 11 • 12 20, 091, 944 00 13 Salaries and wages (other than to mamba's) 13 11, 291, 732 00 14 Guaranteed payments to members ® 14 00 15 Bad debts • 15 8,13100 16 Deductible interest expense not claimed elsewhere on return C) 15 00 Deductions 17 a Depreciation and amortization. Attach form FTB 3885E $ 378,384. b Loss depreciation reported an Schedule A and elseetiere on return $ C Balance • 17c 378, 384 00 18 Depletion. Do not deduct oil and gas depletion 18 00 19 Retirement plans. etc. 19 106, 026 00 20 Employee benefit programs 20 338, 804 00 21 Other deductions. Attach schedule $7MT I* 21 5, 438,456 00 22 Total deductions. Add line 13 through line 21 • 22 17,561,533 00 23_ Ordinary income (loss) from trade or business activities. Subtract line 22 from line 12 . . . . . • 23 2, 530,411 00 Schedule T Nonconsenting Nonresident Members' Tax Liabili y. Attach additional sheets if necessary. (d) 14 Member's name SSti%N. Distgutkre Tax Meggert Amount withheld by this Members or FEIN share of Income rate total tax due ISO on this member - net tax due (see instructions) reported on Form 592-B Total the amount of tax due. Enter the total here and on Side I. line 4. II less than zero enter -0- • Side 4 Form 568 ci 2015 SYOSO? 1.000 027 3674154 R66297 1608 68 EFTA00806473 NEXT MANAGEMENT, LLC 13-3495607 Schedule K Members' Shares of Income, Deductions, Credits, etc. 00 (8) c 0 DI strItuthe share Items /mounts Irons federal K (I1:45) California $02.210Manta Told amountsusing Calilornia law 1 Ordinary income (loss) from trade or business activities 1 • 2,415,902. 114,509. 0.) 2,530,411. 2winemeememnmntal red 044014 *OWE. Math ledefill Form 88.M 2 go) 3 a Gross Income (loss) from other rental activities 3a (7) b Less expenses. Attach schedule 3b e Net Income (loss) from other rental activities. Subtract line 3b from line 3a 3e e 4 Guaranteed payments to member; 4 e Income (Loss) 5 Interest income . STMT. 3 5 17,910. • 17,910. 8 Dividends 6 _ • 7 Royalties 7 • 8 Net short-term capital gain (loss). Attach Schedule 0 (568) 8 • 9 Net long-term capital gain (loss). Attach Schedule 0 (568) . 9 • 10 a Total Gain under INC Section 1231 (COW than due 10 Mutiny or MOM 10a • b Total Loss uncle: IBC Section 1231 (other than duo to casualty or Mall) 10b • 11 a Other portfolio income (loss). Attach schedule 115 (i) b Total other Income. Attach schedule 11b 61) I e Total other loss. Attach schedule 11e 12 Expense deduction for recovery prcpery (IFIC Section 179). Attach schedule SYMT.3 12 191,194. -191,194. NONE 13 a Charitable contribute's. See instructions. Mach schedule . . . 13e 103,335. 103,335. Deductions b Investment interest expense 13b • C 1 Total expenditures to v.tfth Inc SeC000 59(e) election may apply. . . 13e1 2 Type or expenciturea 13e2 d Deductions related to portfolio income 13d e Other deductions. Mach schedule 13e (() 15 a Withholding on LLC allocated to all members 15a b Low-income housing credit 15b Credits e Credits other than the credit shown on line 15b related to rental real estate activities. Attach schedule 15e d Credits related to other rental activities. Attach schedule, 15d e Nonconsenting nonresident members' tax paid by LLC 15e f Other credits. Attach schedule 15f • g New Employment Credit 154 17 a Depreciation adjustment on propeny placed in service after 198IYfr 17e —976. 12,252. 11,276. Alternative Minimum b Adjusted gain or loss 17b e Depletion (other than oil and gas) 17e Tax (ANT) IMma d Gross income from oil, gas, and geothermal properties 17d e Deductions allocable to oil. gas, and geothermal properties 17e I Other alternative minimum tax items. Attach schedule, . 1W 18 a Tax-exempt interest income 18a Other Information b Other tax-exempt income 18b • e Nondeductible expenses STMT. 3.... the 118,554. 118,554. 19 a Distributions of money (cash and marketable securities) 19a 3.000,000. () 3,000,000. b Distribution of property other than money 19b ( ) 20 a Investment income 20a 17.910. 17.910. b Investment expenses 20b e Other information. See instructions 20e 21 a Total distributtvo encornerpaprent toms. Combine linos 1.2. and 3c through ia 11c. From the result siblract the sum c4 Inas 12 Ihrcugh 13o. b Analysis (a) 21a (b) Individual 2 139 283 (c) 305 703 • (d) (e) 2 444 986. (f) Exempt of members: Corporate L Active IL Passive Partnership Organizatei Nominee/Other LLC Members 2,444,986. *STMT 3 027 3675154 I Farm 568 ci 2015 Sides I 5110334 1.000 R66297 1608 69 EFTA00806474 NEXT MANAGEMENT, LLC 13-3495607 Schedule L Balance Sheets. See the Instructions for Schedule L, before completing Schedules L. M-1, and M-2. Beginning of taxable year End of taxable year Assets (a) (b) (c) (d) 1 Cash 4 577 394. 3,532,783. 10 526 765. I 9 290 056. 2 a Trade noes and accounts receivable b Less ailov.ance for bad debts ( 100 000. ) 10,426,765. ( 1 0. ) 9,190,056. 3 Inventories • 4 U.S. government obligations 5 Tax-exempt securities 6 Othat Curreilt aSSetS. Attach schedule STMT 4 228,894. • 176,432. 7 Mortgage and real estate loans 8 Other investments. Attach schedule STMT 4 -214 609. • 83,446. 9 a Bult1,41and 016/1 deratilltiltatliat. 4,116,424. 4,123,029 b Less accumulated depreaatron 3,577,355. ) 0 539 069. ( 3,396,487. ) • 726,542. 10 a Depletable assets M r 1 b Less accumulated depletion ( ) ) 11 Land (net of any amortization). 12 a Intangble assets tamortaable ally) b Less accumulated amortization ( ) 13 Other assets. Attach schedule 1,-.•iiii :;',eet- I 2,361,407. di • 3: 051607. 14 Total assets 17,918,920. IIIIIIIIIP JIM 16 760, 866. Liabilities and Capital 15 Accounts payed° 13,449,263. 12,182,330. 16 titmez Mtn. bores Nivea a it • 17 Other Current tabula. Mach uneduse 1=_ 'r!4 *,t111 '_r 1,304,038. 1,786,832. 18 All nonrecourse loans • 19 ifl rer." '" "" w 0 20 Other habilties. Attach schedule 1,314,035. • 1,620,133. 21 Members' capital accounts . CO 1,851,584. • 1,171,571. 22 Total liabilities and capital . 17,918,920. 16,760,866. Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return. Use total amount under Catania law. See instructions. 1 Nei income (loss) per backs. . . . . 2 319 987 8 on Income recorded o becks this yew not Included Schedule K. line I through We 11c. Itemize: 2 Income included on Schedule K. line 1 a Tax-exempt interest. . . . through line 11c, not recorded on books this yes. Itemize • b Other . . . STMT. 5$ 82 521 3 Guaranteed payrnalls other that health nsurance) c Total. Add line 6.2 and line 6b • 4 Expenses recorded on books this year 7 Deductions included on Schedule K. line 1 not included on Schedule K, line 1 through line 13e, not charged against book through line 13e. Itemize: income this year. Itemize: a oepredewn . .S a Depreciation 56 772 b Travel and ontonelnment .$ 90,792. b Other, symr.ss 337 690 • annual ILO to .S 800. c Total. Add line 7a and line 70 • • Omer 510,390. 8 Total. Add line 6c and line 7c. • Total. Add line 4a through 4d. 601,982. 9 Income (loss) (Schedule K. line 21a). Subtract • 5 Total of line 1 through line 49 2 921 969 line 8 from line 5 2 444 986 Schedule M-2 Analysis of Itembers' Capital Accounts. Use California amounts. 1 Balance at beginning ol year 1 851,584 5 Total of line 1 through line 4 4 171 571. 2 Capital contributed during year 6 Distributions: a Cash SIMT.6.. 3 000 000 a Cue • b Property • b Properly • 7 Other decreases. Itemize • 3 Nei income (loss) per baolcsSiMi . 5 2 319 987 8 Total of line 6 and hne 7 3 000 000 4 Other Increases. Itemize • 9 Balance at end of year. Subtract line 8 Irom line 5 1,171,571. Schedule O Amounts from Liquidation used to Capitalize a Limited Liability Company. (complete only it Mel return boils etuaNted CO side I. Question H.) Name of entity liquidated (if more than one, attach a schedule) Type of entity: c (1) O Corporation c (2) S Corporation Q (3) Partnership Li (4) Limited Partnershp Li (5) Sole Proprietor Li (6) Farmer Entity identification number(s) FEIN SSN or MN Corporation CA SOS Amount of liquidation gains recognized to capitalize the LLC • Side 6 S001591.000 Form 568 CI 2015 027 3676154 I • R66297 1608 70 EFTA00806475 Schedule 1W Limited Liability Company (LLC) Income Worksheet Enter your California income amounts on the worksheet. MI amounts entered must be assigned for Callama law differences. Use only amounts that are from sources derived from or attributable to California when completing lines 1-17 of this worksheet It your business is both vathin and outside of Callama. see Schedule IW instructions to assign the correct amounts to California. If the LLC is wholly within California. the total income amount is assigned to Cana is and is entered beginning with line I a. It the single member LLC (SMLLC) does not meet the 3 million were for ling Schedule 8 (568) and Schedule K (568). the SMLLC is still required to complete Schedule IW. Disregarded entities that do not meet the tong requirements to complete Schedule 8 or Schedule K should prepare Schedule IW by entering the California amounts alubulable to the disregarded entity from the members federal Schedule B. C. D. E. F (Form 1040). or additional schedules associated wan other activities. Do not enter amounts on this worksheet that have already been reported by another LLC to determine its lee. See instructions on page 13 of the Form 568 Booklet for more information on how to complete Schedule IW. 1 a Total California income from Form 568. Schedule B. line 3. See instructions 01a 5,238,765. b Enter the California cost of goods sold Irom Form 568. Schedule B. line 2 and from federal Schedule F (Form 1040) (plus California adjustments) associated with the receipts assigned to California on lines 1a and 4 0 lb 2 a II the answer to Question U(t) on Form 568 Side 2. is 'Yes', include the gross income of this disregarded entity that is not included in lines 1 and 8 through 16 0 2a b Enter the cost ol goods sold of disregarded entities associated with the receipts assigned to California on line 2a 0 2b 3 a LLC's distributive share of ordinary income from pass-through entities 0 3a 266,546. b Enter the LLC's distributive share of cost of goods sold Irom other pass-through entities associated with the receipt assigned to California on line 3a (see Schedule K-1s (565). Table 3. tine la) 0 3b c Enter the LLC's distributive share of deductions from other pass-through entities associated with the receipt assigned to Cardonsa on line 3a (see Schedule K-I s (565). Table 3. bile lb) 0 3c 4 Add gross farm income from federal Schedule F (Form 1040). Use California amounts 0 4 5 Enter the total of other income (not loss) from Form 568. Schedule B. line 10 0 5 NONE 6 Enter the total gains (not losses) from Form 568. Schedule B. line 8 0 6 7 Add line la through line 6 7 5, 505, 311. 8 California rental real estate a Enter the total gross rents from federal Form 8825. line 18a 8a b Enter the total gross rents from all Schedule K-1s (565). Table 3. line 2 8b c Add line 8a and line 8b 8e 9 Other California rentals. a Enter the amount Irom Schedule K (568). line 3a 0 9a b Enter the amount from all Schedule K-1s (565). Table 3. line 3 0 9b c Add lines 9a and 9b 0 9c 10 California interest. Enter the amount from Form 568. Schedule K. line 5 010 NONE 11 California dividends. Enter the amount from Form 568. Schedule K. line 6 011 12 California royalties. Enter the amount Irom Form 568. Schedule K. line 7 012 13 California capital gains. Enter the capital gains (not losses) included in the amounts Irom Form 568. Schedule K. lines 8 and 9 013 14 California 1231 gains. Enter the amount of total gains (not losses) from Form 568. Schedule K. line 10a 014 15 Other California portfolio income (not loss). Enter the amount from Form 568 Schedule K. tine Ila 015 16 Other California income (not loss) not included in line 5. Enter the amount Irom Form 568. Schedule K. tine 11b. . O 16 NONE 17 Total California income. Add lines 7. 8c. 9c. 10. 11. 12. 13. 14. 15. and 16. Line 17 may not be a negative number. Enter here and on Form 568. Side 1. Line I. II less than zero enter -0- 017 5,505,311. • SVOS.48 1.000 027 3677154 I- Form 568 ei 2015 Side? • R66297 1608 71 EFTA00806476 AXt,ELL YEA'-{ CALIFORNIA FORM 2015 Depreciation and Amortization 3885L Name as shown on return CaIdornia Secretary of State (SOS) Se no. NEXT MANAGEMENT, LLC 200506910067 ACTIVITY: FEIN NEXT MANAGEMENT, LLC 13-3495607 Assets and intangibles placed in service during the 2015 taxable year: Depreciation of assets Amortization of properly 14 (b) D4 OD (I) CM al M Datespv[Ce papa Method (e) Depreciation tar Description of properly In Cost or of figuring Life or this year Code Period or Arnortizarion to (InntIOWYPrv) — Other beans dcprcoaacei rale seism Perceefbile thiS year 1 * * * SEE DETAIL *** 1 Enter line 1. column (9 and column (I) totals I 63, 651. 614 Depreciation Be sure to make adjustments for any basis differences when calculating depreciation. 2 California depreciation for assets placed in service beginning before the 2015 taxable year 2 114,119. 3 Total California depreciation. Add line 1(1) and line 2 3 177,770. Amortization Be sure to make adjustments for any basis differences when calculating amortization. 4 California amortization for intangibles placed in service beginning before the 2015 taxable year 4 200,000. 5 Total California amortization. Add line 1(i) and line 4 5 200,614. 6 Total depreciation and amortization. Add line 3 and line 5. Enter the total here and on Form 568, Schedule B, line 17a. if from a trade or business. or on federal Form 8825, line 14. if from rental real estate activities 6 378,384. 7 IRC Section 179 expense deduction from tine 12 of the worksheet in the instructions . 7 NONE 8 Carryover of disallowed deduction to 2016 from line 13 of the worksheet in the instructions 8 NONE General Information B Federal/State Calculation Differences In general, for taxable years beginning on or after January 1. 2015. California California law has not always conformed to federal law with regard law conforms to the Internal Revenue Code (IRC) as of January 1. 2015. to depreciation methods. special credits, or accelerated write-oils. However. there are continuing differences between California and federal Consequently, the recovery periods and the basis on which the depreciation law. When California conforms to federal tax law changes, we do not always is calculated may be different from the amounts used for federal purposes. adopt all of the changes made at the federal level. For more information. go Reportable differences may occur If all or part of your assets were placed in to ftb.ca.gov and search for conformity. Additional information can be found service: in FTB Pub. 1001. Supplemental Guidelines to California Adjustments, the • Before January 1, 1987: California disallowed depreciation under the instructions for California Schedule CA (540 or 540NR). and the Business federal Accelerated Cost Recovery System (ACRS). Continue to calculate Entity tax booklets. California depreciation in the same manner as in prior years for those The instructions provided with California tax forms are a summary of assets. California lax law and are only intended to aid taxpayers in preparing their • On or after January 1, 1987: California provides special crafts and state income tax returns. We include information that is most useful to the accelerated write-offs that affect the California basis for qualifying assets. greatest number of taxpayers in the limited space available. It is not possible California does not conform to all the changes to federal law enacted in to Include all requirements of the California Revenue and Taxation Code 1993. Therefore. the California basis or recovery periods may be afferent (R8TC) in the tax booklets. Taxpayers should not consider the tax booklets for some assets. as authoritative law. California law does not conform to the federal law for: A Purpose • IRC Section 168(k) relating to the 50% bonus depreciation for Use form FTB 3885L, Depreciation and Amortization, to compute certain assets. depreciation and amortization allowed as a deduction on Form 568. Limited • The enhanced IRC Section 179 expensing election. Liability Company Return of Income. Attach form FTB 3885L to Form 568. • The additional first-year depreciation of certain qualified property Depreciation is the annual deduction allowed to recover the cost or other placed in service after October 3, 2008. and the election to claim basis of business or income producing property with a determinable useful additional research and minimum tax credits in lieu of claiming the life of more than one year. Land is not depreciable. bonus depreciation. Amortization is an amount deducted to recover the cost of certain capital expenses over a fixed period. • MOM LWO 027 7651154 I FTB 3885L 2015 IM R66297 1608 72 EFTA00806477 TAXABLE YEAR CAUF3fINLA SCHEDULE 2015 Pass-Through Entity Ownership EO (568) Name as shown on tax return FEIN NEXT MANAGEMENT, LLC 13-3495607 California Secretary of State (SOS) file no. 200506910067 Part I - Partial Ownership List the entities in which the taxpayer holds ownership of less than 100%. CA Profit and Loss Source Sharing Percentage. Name of Entity CA SOS file no. FEIN Income See instructions. See instrs. Profit Loss • TKO TNELVE MANAGEMENT, LW • • 201154409 • n • 0.8000 • 0.8000 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Part II - Full Ownership List the disregarded entities in which the taxpayer holds full ownership oil00%. CA Source Name of Entity CA SOS file no. FEIN Income Full Ownership See instrs. • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • • 100% • • • 100% • 5Y0505 1.000 027 8331154 I Schedule EO (568)2015 ■ R66297 1608 73 EFTA00806478 NEXT MANAGEMENT, LLC 13-3495607 027 CALIFORNIA INCOME FROM OTHER PASS-THROUGH ENTITIES Activity Name and Address ID Number and Type of Income A TWO TWELVE MANAGEMENT, LLC 20-1354409 GENERAL TRADE/BUSINESS B C D Activity A B C D Publicly traded pannership NO Qualified low income housing . . . NO Activity disposed of dunng year • • • NO Schedule K -1 Line References 1 Ordinary Income 266,546. 2 Rental Real Estate 3 Other Rental 5 Interest Income 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income . . 4 Guaranteed Payments 10 ab Net Section 1231 0/1. 11 be Other Income 13 a Charitable Contributions . . 5, 160. 12 Section 179 Expense 13 d Deductions For Portfolio Inc. 13 e Other Deduclions 13 b Investment Interest Expense 20 a Investment Income 20 b Investment Expense . . . 15 b Low Income Housing Credit 15 c Credit Rental Real Estate. . 15 d Credit Other Rental 15 1 Other Credits 17 a Depr. Adj. Prop. 12/31/86 -58 . 17 b Adj. °Moss 17c Depletion 17 d Gross Income 003as/Geoth 17 a Deducts Allen. To ChltGas 17 1 Other AMT 13 c Section 59(e) 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded expense 27,762. 20 Other Items 9 Long-term Net Capital GA. . 600561 1.000 R66297 1608 74 EFTA00806479 TAXABLE YEAR CAIJFORNIA SCHEDULE 2015 Apportionment and Allocation of Income Attach this schedule behind the California tax return and prior to the supporting schedules. For calendar year 2015 or fiscal year beginning month (mmiddlyyyy) , and ending (mmiddryyyy Corporation name California corporation number NEXT MANAGEMENT, LLC Waters-Edge Filers Only: If controlled foreign corporations we Included in the combined report, attach form FTB 2418. Complete Schedule R (Side 1 and Side 2) and all applicable Schedules (R-1 through R-7). See General Information for Schedule R. 1 a Net Income (loss) after state adjustments from Form 100 or Form 100W. Side 2. line 17: Farm 100S. Side 2. line 14: Form 100X. line 4. Form 565 and Form 568 filers: Enter the total of line 1 through line 11c from Schedule K (565 or 568) less the total of line 12 through line 13e Worn Schedule K (565 or 568) • to 2,444,98600 b Waters-edge foreign investment interest offset from form FTB 2424. line 17 • lb 00 c Total. Combine line 1a and line lb • lc 2,444,98600 Nonbusiness Income (Lose) from All Sources. See General Information A for definitions and examples. 2 DoAdends included on line la and not deducted on Form 100. Side 2. line 11: Form 100W. Side 2. lines 11alb: or Form 1005. Side 2. lines 9 and 10 • 2 00 3 Interest. Attach schedule • 3 00 4 Net income (loss) from the rental of property from Schedule R-3, line 3. column (c) • 4 00 5 Royalties. Attach schedule • 5 00 6 Gain (loss) from the sale of assets from Schedule R-4. line 2. column (e) • 8 00 7 Gain (loss) from sale of a nonbusiness interest in a partnership or LLC. Attach schedule • 7 00 8 Miscellaneous nonbusiness income (loss). Attach schedule • 8 00 9 Total nonbusiness income (loss). Combine line 2 through line 8 • 00 Business Income (Lose) before Apportionment (subject to a separate apportionment formula) 10 Nonunitary partnership or LLC business income (loss) • 10 00 11 Income (loss) from a separate trade or business. Attach supplemental Schedule R • 11 00 12 Business income (loss) deferred tom poor years. See General Information L, • 12 00 13 Capital gain (loss) netting subject to separate apportionment. See General Information M • 13 00 14 Total separately apportionable business income (loss). Combine line 10 through line 13 • 14 00 15 Total business income (loss) subject to apportionment for this trade or business. subtract the sum of line 9 and line 14 from line lc • 15 2,444,98600 16 Interest offset from Schedule R-5. line 7 or line 16 (California domiciliaries only) • 16 00 17 Business income (loss) for this trade or business subject to apportionment. Combine line 15 and line 16 • 17 2,444,98600 18 a Apportionment percentage from Schedule R-1. Part A. line 2 or Part B. line 5 0 18a 24.8951 % b Business income (loss) apportioned to California. Multiply line 17 by line 18a • 18b 608,682 00 Nonbusiness Income (Loss) Allocable to California. If no income (loss) is allocable to California. do not complete line 19 through line 26. enter -0- on line 27 and go to Side 2. line 28. 19 Dividends and interest income (if taxpayer's commercial domicile is in California): a Dividends included in line 2 above • 19a 00 b Interest included in line 3 above • 19b 00 20 Net income (loss) from the rental of property within California from Schedule R-3. line 3. column (b) • 20 00 21 Royalties. Attach schedule • 21 00 22 Gain (loss) from the sale of assets within California from Schedule R-4. line 2. total of column (b) and column (d). Combined reporting groups. see General Information M • 22 00 23 Gain (loss) from sale of a nonbusiness interest in a partnership or LLC. Attach schedule • 23 00 24 Miscellaneous nonbusiness income (loss). Attach schedule • 24 00 25 Total nonbusiness income (loss) allocable to California. Combine line 19a through line 24 • 25 00 26 Interest offset from line 16 allocated to income included on line 19a and line 19b (California domicikary only) See General Information J • 26 00 27 Net nonbusiness income (loss) allocable to California. Subtract line 26 from line 25 • 27 00 027 8011154 I Schedule R 2015 Side 1 MMUO 1.000 R66297 1608 75 EFTA00806480 Corporation name California corporation number NEXT MANAGEMENT, LLC California Business Income (Loss) subject to a separate apportionment formula. 28 California business income (loss) from a nonunitary partnership or LLC. • 28 00 29 California income (loss) from a separate trade or business. Attach supplemental schedule R • 29 00 30 California business income (loss) deferred from prior years. See General Information L • 30 00 31 Total business income (loss) separately apportioned to California. Combine ine 28 through line 30 • 31 00 Net Income (Lon) for California Purpose 32 Post-apportioned and allocated amounts from capital gain (loss) netting. See General Information M • 32 00 33 Net income (loss) for California purposes before contributions adjustment. Combine lines 18b. 27.31. and 32. • 33 608,682 00 34 Contributions adjustment from Schedule R-6 line 15 • 30 00 35 Net income (loss) for California purposes. Combine line 33 and line 34. Enter here and on Form 100 or Form 100W. Side 2. line 18 or Form 100S. Side 2 line 15 • 35 608,682 00 • Side 2 Schedule R 2015 syosal 1.000 027 8012154 I- • R6 629 7 1608 76 EFTA00806481 Corporation name California corporation number NEXT MANAGEMENT, LLC Schedule R-1 Apportionment Formula Part A Standard Method - Single-Sales Factor Formula. Complete this pan only it the corporation uses the single-sales factor formula. (e) Percent within See General Information G and Specific Instructions. Total within amilutskle California Total wrthln)Catfamia California (lb) ÷ (a)) x 100 1 Sales: Gross receipts, less returns, and allowances 21,043,361. a Sales delivered or shipped to California purchasers. (i) Shipped from outside California (i) Shipped from within California 5,238,765. b Sales shipped from California to: (I) The United States Government (1) Purchasers in a statewbere the taxpayer is not taxable. . • • c Total other gross receipts • (I) Sales from services • (1) Sales or other income from intangibles • (iii) Sales nom rental. leasing or itensag or istogibie or real progeny • • • (iv) Sales from other gross receipts • d Sales from partnerships or LLCs treated as partnerships • • Total sales • 21,043,361. • 5,238,765. 2 Apportionment percentage. Divide total sates column (b) by total salescolumn la) and muffler), Iheresult by 100. Enter the result here and on Schedule R. Side 1. line I8a. See General Information H . . • 24.8951 % Part B Thute-FactorFonnula.commete this part only it the corporation uses the three-lam, formula. / (e) Percent within Total within anrill) outside California Total irdthSIA California California ((h)+ (a)] x 100 1 Property: Use the average yearly value of owned real and tangible personal poverty used in the business at original cost. See General Information E. Exclude property not connected wsh the business and the value of construction in progress. Inventory Buildings Machinery and equipment (including delivery equipment) Furniture and fixtures Land Other tangible assets. Attach schedule. Rented property used in the business. See General Information E. Total • ro 2 Perna use emPkiree we* sales. comnierlons. and drier compensation related to ovenees ocome see General inlormailon F. Total payroll • • . 3 Sales: Gross receipts. less returns. and allowances. See General Information G and Specific Instructions a Sales delivered or shipped to California purchasers. (I) Shipped from outside California (i) Shipped from within California b Sales shipped from California to: (I) The United States Government (i) Purchasers in a state where the taxpayer s not taxable. . c Total other gross receipts • • Total sales • • • 5, 4 Total percent. Add the percentages in column (c). . . . °I 5 Apportionment percentage. DnAde line 4 by3. enter the result here and on Schedule R. Side 1. line 18a. See General iniormation H • % VOSOG 1.000 027 8013154 I Schedule R 2015 Side 3 • R66297 1608 77 EFTA00806482 Corporation name California corporation number NEXT MANAGEMENT, LLC Schedule R-2 Sales and General Questionnaire. Attach additional sheets if necessary. 1 Describe briefly the nature and location(s) of the California business activities. SEE STATEMENT 8 2 State the exact title and principal business activity of all joint ventures, partnerships. or LLCs in which the corporation has an interest. SEE STATEMENT 8 3 Does the California sales figure on Schedule R-1(82 a comparable schedule in a combined reran) include all sales shipped from California where the purchaser is the U.S. Government? E Yes Lxj No II "No: enalain. SEE STATEMENT 8 4 Does the California sales figure on Schedule R-1 (or a comparable schedule in a combined report include all sales shipped from California to states in which the taxpayer is not subject to tax? See General Information G and Specific Instructions. Yes El No If "No," $EE STATEMENT 8 5 Did the taxpayer use reasonable approximation to assign sales under Schedule R-1, Part A. line lc (i)-(iv)?•E Yes E No If "Yes." provide a brief description. 6 Are the nonbusiness items reported on Schedule R. Side 1. line 2 throiiti line 8, and the apportionment factor items reported on Schedule RA treated consistently on all state tax returns filed by the taxpayer? E Yes Lj No If 'No." explain. 7 Has this corporation or any member of its combined unitary group changed the way income is apportioned or allocated to California from prior year tax returns? See General Information I. ❑ Yes El No II "Yes," explain. 8 Does the California sales figure on Schedule R-1 (or comparable schedule in a combined report) include all sales shipped to California destinations? E Yes El No If "No,' Indicate the name of the selling member and the nature of the sales activity believed to be immune. SEE STATEMENT 8 9 Does the California sales figure on Schedule R-1 (or comparable schedule in a combined report) include all sales delivered to customers outside California which have an ultimate destination in Cakfornia? ❑ Yes E No If "No," explain. SEE STATEMENT 8 Schedule R-3 Net Income (Loss) from the Rental of Nonbusiness Property (a) (b) (0) Total outside Total within Total outside and wthin California California California (a) • (b) 1 Income Trom rents 2 Rental deductions 3 Net income (loss) from rents. Subtract line 2 from line I. Enter the result here and enter column (c) on Side I. line 4: enter column (b) on Side 1. line 20 CI (ID Schedule R-4 Gain (Loss) from the Sale of Nonbusiness Assets California sales of nonbusiness assets include transactions involving: (1) real property located in California; 2) tangible personal property, if h had a shut in California at the time of sale, or if the corporation is commercially domiciled in California and not taxable in the state where the properly had a shut at the time of sale: and (31 intangible oersonal 000env if the co ration's commercial domicile is in California or the income is otherwise allocable to California. Description 01property sold Real estate and other tangible assets intangible assets Total (a) (9) (c) (d) le) Gain (loss) from Gain (loss) horn Gain (loss) gran Gain (loss) from Cain (oss) outside California within California outside California Within California 90•044(c)+(c0 1 CI C.) CI 0 0 C) C) CI C) 0 2 Total gain (loss) 0 C) CI Cl 0 Enter total gain (loss) line 2. column (e) on Side 1, line 6 and enter total of line 2. columns (b) and (d) on Side 1, line 22. Side 4 Schedule R 2015 027 8014154 r SY0S.12 1.000 R66297 1608 78 EFTA00806483 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Date 179 exp. Beginning Ending Con- MA Current placed in Unadjusted Sus. reduc. Basis Basis for Accumulated Accumulated Me- ven- /CRS CRS -yr 179 Current-year Asset description service cost or basis % an basis Reduction Depreciation depreciation depreciation thod Mon Life cies class suspense depreciation OFFICE EQUIPMENT 08/31/1991 22,526. 100. 22,526. 12,526. 12,526.5c 5.000 COMPUTER EQUIPMENT 10/31/1991 18,041. 100. 18,041. 18.041. 182041.SL 5.000 FURNITURE/FIXTURES 05/31/1991 20,823. 100. 20,821. 20,1123. 20,823.5c 7.000 OFFICE EQUIPMENT 01/04/1989 12,215. 100. 12,215. 12,215. 12,215.5c 5.000 COMPUTER 01/04/1989 47,819. 100. 47,819. 47,819. 47,819.31. 5.000 LEASEHOLD IMPROV(NYI 01/04/1989 25,209. 100. 25,209. 25,209. 25209.5c 5.000 FURNITURE 6 FIXTURES 01/04/1989 26,013. 100. 26,011. 26,013. 26,013.5c 7.000 OFFICE EQUIPMENT 07/01/1990 6,535. 100. 6,535. NONE NCMESL 5.000 LEASEHOLD IMPRO(NY) 07/01/1990 33,156. 100. 31,158. 12,540. 33,158.51 31.000 618. FURNITURE/FIXTURES 07/01/1990 4,541. 100. 3,465. 1,076. 2,076. 1,076.51 7.000 COMPUTER EQUIPMENT 01/31/1992 6,539. 100. 8,519. 8,539. 8,539.31 5.000 PRINTER 02/26/1993 4,241. 100. 4,241. 4,241. 4,241.31 5.000 OFFICE EQUIPMENT 05/10/1993 2,382. 100. 2,382. 2,382. 2,382.51 5.000 OFFICE EQUIPMENT 10/01/1993 2,454. 100. 2,454. 2,454. 2.454.SL 5.000 COMPUTER EQUIPMENT 11/01/1993 31,034. 100. 11,500. 21,534. 13,534. 13,534.SL 5.000 OFFICE EQUIPMENT 06/01/1993 2,500. 100. 2,500. 2,500. 2,500.31 5.000 LEASEHOLD IMPROV(NYI 02/28/1994 8,179. 100. 8,179. 4,174. 4./84.SL 39.000 210. LEASEHOLD IMPRO(NY) 04/30/1994 2,319. 100. 2,319. 1,163. 1,222.31 39.000 59. LHI INV) 07/31/1994 10,964. 100. 20,964. 5,468. 5.749.SL 39.000 281. LHI INV) 08/31/1994 32,074. 100. 32,074. 15,927. 16,749.51 39.000 822. LHI INV) 10/30/1994 11,325. 100. 11,325. 5,571. 5,861.51 39.000 290. LHI INV) 11/30/1994 12,425. 100. 12,425. 6,101. 6,420.51 39.000 319. OFFICE EQUIPMENT 07/01/1995 55,855. 100. 55,855. 55,854. 55,654.5c 5.000 LEASEHOLD IMPROVE 07/01/1995 12,155. 100. 12,155. 6,105. 6,417.SL 39.000 312. LEASEHOLD IMPROVE 07/01/1995 11,496. 100. 21,498. 5,772. 6,067.SL 39.000 295. FURNITURE 6 FIXTURES 07/01/1995 31,451. 100. 31,451. 11,451. 31,481.SL 7.000 FURNITURE 6 FIXTURES 07/01/1995 16,832. 100. 26,832. 16,811. 16,831.51 7.000 OFFICE EQUIPMENT(NYI 07/01/1996 45,326. 100. 45,326. 45,326. 45,126.51 5.000 OFFICE EQUIPMENT(FLI 07/01/1996 20,695. 100. 20,695. 10,694. 10,694.31 5.000 LEASEHOLD IMPROV(NYI 07/01/1996 54,075. 100. 54,075. 25,596. 26,983.51 39.000 1,387. FURNITURE 6 FIXTURES 07/01/1996 35,874. 100. 17,500. 18,374. 18,374. 18,174.SL 7.000 FURNITURE 6 FIXTURES 07/01/1996 26,528. 100. 26,528. 16,528. 16,528.31 7.000 FURNITURE 6 FIXTURES 07/01/1996 6,256. 100. 6,256. 6,256. 6,256.31 7.000 LEASEHOLD IMPROV(NYI 07/01/1997 55,400. 100. 55,400. 24,804. 26,225.5c 39.000 1,421. OFFICE FURNITURE 07/01/2997 8,872. 100. 8,872. 200DR HY 7 OFFICE FURNITURE 07/01/1997 1,952. 100. 2,952. 20008 HY 7 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 79 EFTA00806484 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Date lig exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me• yen• !CRS CRS •yr 179 Current•year Asset description service cost or basis % in basis Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation LEASEHOLD IMPROV. 11/22/1998 11,700. 100. 11,700. 4,838. 5,138.SL 39.000 300. LEASEHOLD IMPROV. 08/28/1998 29,553. 100. 29,551. 12,413. 13,171.SL 39.000 758. FURNITURE 6 FIXTURES 07/01/1998 12,254. 100. 12,254. 12,254. 12,254.51 7.000 FURNITURE 6 FIXTURES 07/01/1998 21,639. 100. 21,639. 21,619. 21,619.5E 7.000 FURNITURE 6 FIXTURES 07/01/1998 13,092. 100. 11,092. 11,092. 13,092. si. 7.000 OFFICE EQUIPMENT 07/01/1998 126,474. 100. 126,474. 126,474. 126.4/4.SL 5.000 OFFICE EQUIPMENT 07/01/1998 77,3.09. 100. 77,109. 77,109. 77,109.SL 5.000 • COMPUTER 01/28/1998 236,963. 100. 236,963. 227,261. 227,263.5E 5.000 • COMPUTER 01/28/1998 0,330. 100. 67,330. 64,573. 64,573. si. 5.000 • COMPUTER 01/28/1998 35,900. 100. 35,900. 34,412. 34,431.51 5.000 LEASEHOLD IMPROV(NYI 07/01/1999 112,785. 100. 112,785. 44,707. 47,599.51 39.000 2,892. FURNITURE 6 F (NY) 07/01/1999 66,766. 100. 66,766. 66,766. 66,766.SL 7.000 FURNITURE 6 F (FL) 07[01L1_9_99 1,951. 100. 1,951. 1,953. 1,951.5L 7.000 COMPUTER (NYI 07/01/1999 202,098. 100. 202,098. 202,098. 202,098.5L 5.000 COMPUTER (FLI 07/01/1999 45,399. 100. 45,399. 45.399. 45,199.51 5.000 COMPUTER (CAI 07/01/1999 69,509. 100. 69,509. 69,509. 69,509.51 5.000 COMPUTER (NYI 07/01/1997 38,206. 100. 36,206. 38,206. 38,206.51 5.000 COMPUTER (FLI 07/01/1997 12,929. 100. 12,929. 12,928. 12,928. sc. 5.000 COMPUTER-96'RETIRED 07/01/1996 -19,757. 100. -19,757. -19,757. -19.757.SL 5.000 COMPUTER (NYI 07/01/2000 174,341. 100. 174,341. 174,341. 174,341.SL 5.000 COMPUTER (FLI 07/01/2000 66,827. 100. 66.827. 66,07. 66,827.5E 5.000 COMPUTER (CAI 07/01/2000 66,027. 100. 66,027. 66,027. 66,027.SL 5.000 LEASEHOLD IMPROV(NYI 07/01/2000 37,330. 100. 37,330. 11,817. 14,794.SL 39.000 957. FURNITURE 6 F (NY) 07/01/2000 39,506. 100. 39,506. 19,506. 39,506.5E 7.000 OFFICE EQUIPMENT (NY 01/01/2001 2,014. 100. 2,014. 20008 HY 5 OFFICE EQUIPMENT (NY 01/01/2001 1,959. 100. 1,959. 200DB HY S OFFICE EQUIPMENT 01/431/2001 4,899. 100. 4,899. 200DB HY S OFFICE EQUIPMENT 05/01/2001 4,244. 100. 4,244. 200DB HY S OFFICE EQUIPMENT 01/01/2001 1,161. 100. 1,161. 200DB HY S OFFICE EQUIPMENT 01/01/2001 1,546. 100. 2,546. 200DB HY S OFFICE EQUIPMENT 02/16/2001 1,132. 100. 2,3.32. 200DB HY S OFFICE EQUIPMENT 02/15/2001 2,271. 100. 2,273. 200DB HY S OFFICE EQUIPMENT- CA 07/15/2002 4,569. 100. 4,569. 20008 HY 5 FURNITURE -NY 04/30/2002 12,000. 100. 12,000. 200os Hy 7 COMPUTER -NY 04/10/2003 41,698. 100. NONE 41,698. 41,698. 41,698.SL 5.000 COMPUTER -NY 04/10/2003 20,169. 100. NONE 20,169. 20,169. 20,169.5E 5.000 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 80 EFTA00806485 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Date lig exp. Beginning Ending Con- MA Current placed In Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me- yen- /CRS CRS -yr 179 Current•year Asset description service cost or basis % in basis Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation COMPUTER -NY 04/2612003 1,372. 100. NONE 3.312. 3,372. 1,372.m. 5.000 COMPUTER 05/21/2003 4,441. 100. NONE 4,443. 4,443. 4,441. si. 5.000 COMPUTER 06/17/2003 6,582. 100. NONE 6,562. 6,582. 6,582.81 5.000 COMPUTER 07/22/2003 5,359. 100. NONE 5,359. 5,359. 5,359. sc. 5.000 COMPUTER - NY 06/06/2003 19,961. 100. NONE 29,961. 19,961. 19,962.m. 5.000 OFFICE EQUIPMENT -NY 08/22/2003 6,045. 100. 8,045. 8,045. 6,045.m. 5.000 OFFICE EQUIPIEIT - FL 04/09/2003 11,449. 100. 21,449. 11,449. 13,449.m. 5.000 OFFICE EQUIP-FL 04/09/2003 5,561. 100. 5,563. 5,563. 5,561. sc. 5.000 OFFICE EQUIP-FL 04/09/2003 15,000. 100. 15,000. 15,000. 15,000.m. 5.000 OFFICE EQUIP-FL 06/01/2003 4,088. 100. 4,088. 4,088. 4.096.m. 5.000 OFFICE EQUIP-FL 06/30/2003 1,880. 100. 1,880. 1,880. 1,880.51 5.000 OFFICE EQUIP-FL 06/06/2003 2,096. 100. 2,098. 2,098. 2,096. SL 5.000 OFFICE EQUIP-FL 10/02/2003 2, HO . 100. 2,187. 2,187. 2, 307. sc. 5.000 OFFICE EQUIP-FL 10/08/2003 1,639. 100. 1,619. 2,639. 1,639. SL 5.000 OFFICE EQUIP-FL 11/18/2003 1,355. 100. 3,355. 3,355. 1,355. SL 5.000 OFFICE EQUIP-FL 12/31/2003 1,596. 100. 3.596. 3,596. 1,596.m. 5.000 OFFICE EQUIP-CAL 04/09/2003 17,211. 100. 17.211. 17,211. 17,213 . sc. 5.000 OFFICE EQUIP-CAL 04/16/2003 15,000. 100. 15.000. 15,000. 15,000.m. 5.000 OFFICE EQUIP-CAL 06/30/2003 6,016. 100. 6,016. 6,026. 6,016.m. 5.000 OFFICE EQUIP-CAL 12/31/2003 2,420. 100. 2,420. 2,420. 2,420. SL 5.000 LEASEHOLD IMPRO-NY 06/22/2003 103,492. 100. 103,492. 30,634. 33,288.5E 39.000 2,654. LEASEHOLD IMPRO-NY 07/24/2003 26,080. 100. 26,080. 7,666. 8,335.51 39.000 669. LEASEHOLD IMPRO-NY 08/12/2003 17,758. 100. 27,756. 5,176. 5,631.51 39.000 455. LEASEHOLD IMPRO-NY 09/18/2003 128,435. 100. 128,435. 17,185. 40,478.m. 39.000 3,293. LEASEHOLD IMPRO-NY 10/26/2003 16,767. 100. 16,767. 4,820. 5,250.51 39.000 430. LEASEHOLD IMPRO-NY 11/19/2003 41,981. 100. 41,981. 11,9/1. 13,047.m. 39.000 1,076. FURNITURE/FIX- NY 11/25/2003 1,598. 100. 3,598. 3,598. 1,598.51 7.000 FURNITURE6FIX- NY 12/04/2003 28,027. 100. 26,027. 28,027. 28,027.m. 7.000 FURNITURE6FIX- NY 08/08/2003 48,543. 100. 46,541. 48,543. 48,543.m. 7.000 FURNITURE6FIX- NY 09/26/2003 1,874. 100. 3,04. 3,874. 1,874.51 7.000 FURNITURE/FIX- NY 12/06/2003 7,275. 100. 7,275. 7,275. 7,275.31 7.000 COMPUTER - NY 04/01/2003 46,500. 100. 46,500. 46,500. 46,500.m. 5.000 OFFICE EQUIPMENT-NY 01/05/2004 10,835. 100. 10,815. SL 5.000 MAINTENANCE-NY 02/25/2004 7,750. 100. 7,750. SL 1.000 MAINTENANCE-FL 02/25/2004 2,500. 100. 2,500. SL 1.000 OFFICE EQUIPMENT-CAL 09/29/2004 8,646. 100. 3,915. 4011. 4,730. 4, 730. si. HY 5.000 5 Less: Retired Assets TOTALS 'Assets Retied SA 5X9027 1.000 866297 1608 81 EFTA00806486 NEXT MANAGEMENT LLC 2015 Depreciation 11-3405607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Date 179 exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. reduc. Basis Basis for Accumulated Accumulated Me- ven- PISS CRS -yr 179 Current•year Asset description service cost or basis % MINIS Reduction Depreciation depreciation depreciation thod tion Life cies class expense depreciation LEASEHOLD IMPROVE-HY 01/16/2004 5,649. 100. 5,649. 1,589. 1,734.SL "al 39 145. LEASEHOLD IMPROVE-NY 02/17/2004 3,686. 100. 7,686. 2,143. 2,340.SL MI 39 197. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 100. 25,000. 17,499. 19,164.SL HY 15.000 15 1,665. FURNITURELFIX-NY 11/21/2004 6.001. 100. NONE 6,001. 6,001. 6,001.n. 3.000 FURNITURELFIX-NY 01/30/2004 165. 100. NONE 265. 165. 165.SL 3.000 OFFICE EQUIPMENT-NY 01/01/2004 2,500. 100. NONE 2,500. 2,500. 2,500.SL HY 1.000 3 OFFICE EQUIPMENT-FLA 02/07/2005 2,210. 100. 2,110. SL 5.000 OFFICE EQUIPMENT-CAL 01/16/2005 1,984. 100. 1,984. SL 5.000 LEASEHOLD IMP-CAL 02/24/2005 6,000. 100. 6,000. 3,933. 4,331.SL 15.000 400. LEASEHOLD IMP- CAL 01/21/2005 800. 100. 800. 517. 570.SL 15.000 51. FURNITURE 6 FIXT CAL 01/16/2005 6,201. 100. 6,191. SL 3.000 FURNITURE 6 FIXT CAL 04/29/2005 7,975. 100. 7,975. SL 3.000 OFFICE EQUIPMENT-NY 02/07/2005 6,714. 100. 6,724. SL 5.000 OFFICE EQUIPMENT-NY 02/05/2005 2,496. 100. 26. 2,4/0. 2,470. 2,470.SL 5.000 OFFICE EQUIPMENT-NY 02/15/2005 2,086. 100. NONE 2,086. 2,086. 2,086. SL 5.000 OFFICE EQUIPMENT-NY 11/01/2005 13,164. 100. NONE 21,264. 13,164. 13.164.SL 5.000 FURNITURE4FIX-NY 01/20/2005 6,215. 100. NONE 6,215. 6,215. 6,215.n 3.000 FURNITURE4FIX-NY 01/11/2005 111. 100. NONE 111. 111. 111.SL 3.000 FURNITURELFIX-NY 06/17/2005 8,440. 100. NONE 8,440. 8,440. 8,440.SL 3.000 FURNITURELFIX-NY 07/14/2005 936. 100. NONE 936. 936. 936.SL 3.000 OFFICE EQUIPMENT- NY 02/16/2006 9,755. 100. 9,755. SL 5.000 OFFICE EQUIP. - FLA 02/09/2006 5,550. 100. 5,550. SL 5.000 LEASEHOLD IMP-NY 02/21/2006 10,485. 100. 10,485. 6,175. 6,874 . sc. 15.000 690. LEASEHOLD IMP-NY 01/01/2006 21,461. 100. 21.461. 12.640. 14.072.SL 15.000 1,431. FURNITURE 6 FIX-FLA 05/15/2006 2,789. 100. 2,789. SL 5.000 FURNITURE 6 FIX-FLA 07/20/2006 2.999. 100. 2,999. SL 5.000 FURNITURE 6 FIX-NY 01/14/2006 4,664. 100. 3,907. 757. 757. 751.SL 5.000 OFFICE EQUIPMENT-NY 05/15/2007 39,598. 100. 25,000. 14,598. 14,598. 14,598.51 5.000 OFFICE EQIPMENT-NY 11/20/2007 20,628. 100. NONE 29.626. 19,628. 19,628.SL 5.000 OFFICE EQUIPMENT-FL 05/15/2007 11,175. 100. NONE 11.175. 11,175. 11.175.SL 5.000 OFFICE EQUIPMENT-FL 11/20/2007 5,328. 100. NONE 5,328. 5,328. 5,328.SL 5.000 OFFICE EQUIPMENT-CA 05/15/2007 8,291. 100. NONE 8,293. 8,293. 8,291.0c 5.000 OFFICE EQUIPMENT-CA 11/20/2007 1,084. 100. NONE 3,084. 3,084. 1,084.n 5.000 FURNITURE 6 FIX-NY 02/14/2007 4,881. 100. NONE 4,881. 4,881. 4,881.SL 3.000 FURNITURE 6 FIX-NY 05/15/2007 6,610._ 100. NONE 6,610. 6,620. 6,610.SL 1.000 OFFICE EQUIPMENT-NY 01/18/2008 8,967. 100. 8,9O. SL HY 5.000 5 Less: Retired Assets TOTALS 'Assets Retied SA 5290271400 866297 1608 82 EFTA00806487 NEXT MANAGEMENT LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC CALIFORNIA GENERAL TRADE OR BUSINESS Date in exp. Beginning Ending Con- MA Current placed In Unadjusted Sus. reduc. Basis Basis for Accumulated Accumulated Me- yen- /CRS CRS -yr 179 Current•year Asset description service cost or basis % MINIS Reduction Depreciation depreciation depreciation thod Mon Life cuss class expense depreciation OFFICE EQUIPMENT-NY 05/01/2008 26,400. 100. 16,013. 36/. 144. 344. DDB 5.000 OFFICE EQUIPMENT-NY 07/02/2008 21,364. 100. NONE 21,364. 10,657. 10,657. ODB 5.000 OFFICE EQUIPMENT-FL 01/21/2008 22,126. 100. NONE 12,116. 11,362. 12,362.DDB 5.000 OFFICE EQUIPMENT-CA 01/21/2008 14,060. 100. NONE 24,069. 13,194. 13,194.DDB 5.000 LEASEHOLD IMP-NY 02/12/2008 11,736. 100. 21,736. 5,415. 6,207. sc. MQ 15 762. LEASEHOLD IMP-NY 12/19/2008 16,000. 100. 26,000. 6,468. 7,534.51 MQ 15 2,066. FURNITURE 6 FIX-NY 05/07/2008 1,542. 100. NONE 3,542. 3,130. 1,254.ope 1.000 115. FURNITURE 6 FIX-NY 12/26/2008 4,400. 100. NONE 4,400. 3,899. 4.042.DDB 1.000 143. FURNITURE 6 FIX-NY 01/21/2009 4,400. 100. 4,400. SL 1.000 LEASEHOLD IMP-NY 07/01/2010 75,753. 100. 25,000. 50,751. 19,124. 22,286.150os HY 15 3,162. FURNITURE 6 FIX-NY 01/14/2010 1,214. 100. NONE 1,214. 942. 1.050.200DB HY 7 108. LEASEHOLD IMP-NY 11/14/2011 11,227. 100. 11,227. 15008 HY 25 OFFICE EQUIPMENT-NY 05/31/2011 4.382. 100. 4,382. 200os HY 5 OFFICE EQUIPMENT-CA 11/14/2011 13,425. 100. 9,391. 4,034. 2,733. 1.196.200os HY 5 465. LEASEHOLD IMP-NY 05/04/2012 4,167. 100. 4,167. 150os HY 25 LEASEHOLD IMP-NY 11/10/2012 14,059. 100. 14,059. 150DB Hy 25 LEASEHOLD IMP-CA 09/16/2012 5,285. 100. 5,285. 150DB HY 25 OFFICE EQUIPMENT-NY 02/22/2012 6,075. 100. 2,489. 4,566. 3,266. 1.794.200os HY 5 528. OFFICE EQUIPMENT-NY 06/22/2012 1,325. 100. NONE 3,325. 2,367. 2.750.200DB HY 5 383. OFFICE EQUIPMENT-NY 06/05/2013 21,002. 100. NONE 11,001. 5,720. 7.832.200DB HY 5 2,122. LEASEHOLD IMP-NY 09/19/2013 131,030. 100. NONE 111,030. 19,000. 30,203.150DB HY 25 11,203. LEASEHOLD IMP-NY 12/17/2013 9,631. 100. NONE 9,613. 2,397. 2.221.150DB HY 25 824. LEASEHOLD IMP-NY 12/31/2013 100,954. 100. NONE 100,954. 14,619. 23,271.150os HY 15 8,632. LEASEHOLD IMP-FL 09/26/2013 13,994. 100. NONE 21,904. 2,029. 1,225.250os HY 15 1,196. LEASEHOLD IMP-CA 08/31/2013 21,300. 100. NONE 21,300. 3,080. 4,910.150DB HY 15 2,821. FURNITURE 6 FIX-NY 06/06/2013 30,920. 100. NONE 39,929. 15,465. 22,469.200os HY 7 6,984. FURNITURE 6 FIX-NY 12/31/2013 11,688. 100. NONE 21,600. 4,532. 6.576.200os HY 7 2,044. FURNITURE 6 FIX-FL 01/29/2013 2,825. 100. NONE 2,825. 2,096. 1.590.200os HY 7 494. OFFICE EQUIPMENT-NY 01/26/2014 22,221. 100. NONE 22,211. 4,442. 1.1,550.200os HY 5 7,108. LEASEHOLD IMP-NY 02/27/2014 22,760. 100. NONE 22,760. 2,552. 6.635.200os HY 5 4,083. LEASEHOLD IMP-NY 06/04/2014 156,004. 100. NONE 156,004. 7,800. 22,620.150os HY 25 14,820. FURNITURE 6 FIX-NY 01/10/2014 23,085. 100. NONE 21,085. 3,299. 6.951.200os HY 7 5,654. FURNITURE 6 FIX-NY 02/14/2014 41,566. 100. NONE 41,566. 5,940. 16,120.200os HY 7 10,180. FURNITURE 6 FIX-NY 05/07/2014 27,823. 100. NONE 27,811. 2,545. 6.907.200os HY 7 4,362. FURNITURE 6 FIX-FL 01/10/2014 7,196. 100. NONE 7,196. 1,028. 2.790.200os HY 7 1,762. SOFTNARE 01/22/2015 155,603. 100. 155,603. 47,545.sc 1.000 47,545. Less: Retired Assets TOTALS 'Assets Refired SA 5190271.000 866297 1608 83 EFTA00806488 NEXT MANAGEMENT, LLC 2015 Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LLC CALIFORNIA GENERAL TRADE OR BUSINESS Date in exp. Beginning Ending Con- MA Current placed in Unadjusted Bus. rictus. Basis Basis for Accumulated Accumulated Me- yen- !CRS CRS -yr 179 Current-year Asset description service cost or basis % in basis Reduction Depreciation depreciation depreciation thod lion Life class class expense depreciation OFFICE EoulFNENT-NY 12/31/2015 35,905. 100. NONE 35,905. 1, 101. 200Ds Hy 5 NONE 7,181. LEASEHOLD IMP-NY 04/05/2015 63,396. 100. NONE 61,306. 1,270.250DH Hy Is NONE 3,170. LEASEHOLD IMP-FL 09/25/2015 25,179. 100. NONE 25,179. 1,259.250DH Hy 25 NONE 1,259. LEASEHOLD IMP-CA 06/26/2015 44,230. 100. NONE 44,230. 2,212.150os Hy 25 NONE 2,222. FURNITURE 6 FIX-FL 10/12/2015 1,770. 100. NONE 3,718. 540.200DB Hy 7 NONE 540. FURNITURE 6 FIX-NY 07/01/2015 0,706. 100. NONE 8,706. 1,244.200DB Hy 7 NONE 1,244. LEASEHOLD IMP-MET 07/01/2015 10,000. 100. NONE 10,000. 500.250DB Hy IS Nom, 500. Less: Retired Assets 340,193. 340,193. 326,267. 326,267. TOTALS 4,123,029. 296,021. 3,827,000. 2,401,644. 2,579,414. NoNEI 177,770. 'Assets Retied SA 5X9027 1.000 R66297 1608 84 EFTA00806489 NEXT MANAGEMENT LLC 2015 Amortization 11-340560T Description of Property NEXT_MANAGEMENT, LLC CALIFORNIA GENERAL TRADE OR BUSINESS Date Beginning Ending placed in Accumulated Accumulated Current•year Asset description service Cost or basis amortization amortization Code Lite amortization OROANIZATION_COSTS 01/04/1989 26,951. 26,950. 26,950. 709 5.000 r START-UP COSTS 07/16/1992 26,000. 26,000. 26,000. 195 5.000 START-UP COSTS 07/01/1992 25,000. 25,000. 25,000. 195 5.000 COV. NOT TO COMPETE 10/31/2010 3,000,000. 411413. 2,013413. 191 15.000 200,000. ORGANIZATION COSTS 06/15/2015 15,190. 624. 709 15.000 614. Less: Retired Assets TOTALS 3 04,1041 914 253 1 111 897 900.614 ' Assets Retired SA SX9026 1.000 866297 1608 85 EFTA00806490 NEXT MANAGEMENT LLC 2015 Alternative Minimum Tax Depreciation 11-3495607 Description of Property NEXT MANAGEMENT, LW CALIFORNIA GENERAL TRADE OR BUSINESS Date AMT AMT AMT AMT AMT AMT Regular Post•86 Leased Real Placed in basis for accumulated me- conven• depreciation depreciation depreciation pets. prop. property Asset description Service depreciation depredation thod lion life deduction deduction adjustment preference preference OFFICE EQUIPMENT-CAL 09/29/2004 4,731. 4,139. HY 5.000 LEASEHOLD IMPROVE-NY 01/16/2004 5,649. 1,519. SL NM 39.000 145. 145. LEASEHOLD IMPROVE-NY 02/17/2004 7,686. 2,056. SL lim 39.000 197. 197. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 17,082. SL HY 15.000 1,665. 1,665. OFFICE EQUIPMENT-NY 01/01/2004 2,500. 2,187. HY 3.000 LEASEHOLD IMP-NY 02/12/2008 11,736. 3,422. SL HO 15.000 191. 782. 391. LEASEHOLD IMP-NY 12/19/2008 26,000. 3,870. SL HO 15.000 533. 1,066. 533. FURNITURE 4 FIX-NY 05/07/2008 1,542. 3,542. 7.000 115. 115. FURNITURE 4 FIX-NY 12/26/2008 4,400. 4,400. 7.000 141. 143. LEASEHOLD IMP-NY 07/01/2010 50,753. 19,124. 150DB HY 15.000 3,162. 3,162. FURNITURE 4 FIX-NY 01/14/2010 1,214. 842. 15000 Hy 7.000 149. 108. OFFICE EQUIPMENT-CA 11/14/2011 4,034. 2,572. 15000 Hy 5.000 672. 465. -207. OFFICE EQUIPMENT-NY 02/22/2012 4,506. 2,676. 15000 Hy 5.000 764. 528. -236. OFFICE EQUIPMENT-NY 06/22/2012 1,325. 1,941. 15008 HY 5.000 554. 381. -171. OFFICE EQUIPMENT-NY 08/05/2013 11,001. 4,455. 15008 Hy 5.000 1,964. 2,112. 149. LEASEHOLD IMP-NY 09/19/2013 111,030. 19,000. 15000 Hy 15.000 11,203. 11,203. LEASEHOLD IMP-NY 12/17/2013 9,631. 1,397. 15008 Hy 15.000 824. 824. LEASEHOLD IMP-NY 12/31/2013 100,954. 14,639. 15008 HY 15.000 8,632. 8,632. LEASEHOLD IMP-FL 09/26/2013 13,994. 2,029. 15008 HY 15.000 1,196. 1,196. LEASEHOLD IMP-CA 08/31/2013 21,300. 3,009. 15008 Hy 15.000 1,821. 1,821. FURNITURE 4 FIX-NY 09/09/2013 39,929. 11,914. 150011 NY 7.000 6,001. 6,984. 983. FURNITURE 4 FIX-NY 12/31/2013 11,688. 3,488. 150o9 NY 7.000 1,757. 2,044. 20. FURNITURE 4 FIX-FL 01/29/2013 2,825. 843. 150o9 NY 7.000 425. 494. 69. OFFICE EQUIPMENT-NY 01/29/2014 22,221. 3,332. 150o9 NY 5.000 5,664. 7,108. 1,444. LEASEHOLD IMP-NY 02/27/2014 12,760. 1,914. 150011 HY 5.000 3,254. 4,003. 829. LEASEHOLD IMP-NY 06/04/2014 156,004. 7,800. 150o9 Hy 15.000 14,820. 14,820. FURNITURE 4 FIX-NY 01/10/2014 23,085. 2,472. 150o9 Hy 7.000 4,416. 5,654. 1,238. FURNITURE 4 FIX-NY 02/14/2014 41,566. 4,452. 150DB Hy 7.000 7,952. 10,180. 2,228. FURNITURE 4 FIX-NY 05/07/2014 17,823. 1,906. 150o9 Hy 7.000 3,408. 4,362. 954. FURNITURE 4 FIX-FL 07/10/2014 7,196. 771. 15008 HY 7.000 1,377. 1,762. 385. OFFICE EQUIPMENT-NY 12/31/2015 35,905. 15008 HY 5.000 5,386. 1,181. 1,795. LEASEHOLD IMP-NY 08/05/2015 63,396. 150DB NY 15.000 3,170. 3,170. LEASEHOLD IMP-FL 09/25/2015 25,179. 150DB NY 15.000 2,259. 1,259. LEASEHOLD IMP-CA 06/26/2015 44,230. 150DB NY 15.000 2,222. 2,212. FURNITURE 4 FIX-FL 10/12/2015 1,778. 150DB NY 7.000 405. 540. 135. FURNITURE 4 FIX-NY 07/01/2015 8,706. 150DB NY 7.000 932. 1,244. 312. LEASEHOLD IMP-NET 07/01/2015 10,000. 150DB NY 15.000 500. 500. Less: Retired Assets TOTALS 959,139. 152,005. 96,810. 108,144. 11,334. SA 5X9034 ;.000 • Assets Retired R66297 1608 86 EFTA00806491 027 Reconciliation of State to Federal Page One State Name CALIFORNIA Federal State Applicable Description Return Adjustment to State Income: 1A GROSS RECEIPTS 20,059,894. 20,059,894. 1B LESS RETURNS AND ALLOWANCES 1C BALANCE 20,059,894. 20,059,894. 2 LESS COSTS OF GOODS SOLD 3 GROSS PROFIT 20,059,894. 20,059,894. 4-5 ORD INC(LOSS)-OTHER PTNRSHPS 248,456. 18,090. 266,546. 6-7 NET FARM PROFIT (LOSS) 8-9 NET GAIN (LOSS) 10-11 OTHER INCOME (LOSS) -234,496. -234,496. TOTALINCOME 20,073,854. 18,090. 20,091,944. Deductions: 13 SALARIES AND WAGES 11,291,732. 11,291,732. 14 GUARANTEED PAYMENTS 15 BAD DEBTS 8,131. 8,131. 16 INTEREST 17 DEPRECIATION 120,998. 257,386. 378,384. 18 DEPLETION 19 RETIREMENT PLANS, ETC 106,026. 106,026. 20 EMPLOYEE BENEFIT PROGRAMS 338,804. 338,804. 21 OTH DED (FED LNS 11+13+14+20) 5,792,261. -353,805. 5,438,456. TOTALDEDUCTIONS 17,657,952. -96,419. 17,561,533. NETORDINARYINCOME(LOSS) 2,415,902. 114,509. 2,530,411. SY055i 000 NEXT MANAGEMENT, LLC 13-3495607 R66297 1608 87 EFTA00806492 027 Reconciliation of State to Federal Schedule K State Name CALIFORNIA Federal State Applicable DemdptIon Return Adjustment to State ** INCOME ** 1 ORDINARY INCOME 2.415,902. 11', -)ui. 2,530,411. 2 RENTAL REAL ESTATE INCOME 3 OTHER RENTAL INCOME 4 GUARANTEED PAYMENTS 5 INTEREST INCOME 17.910. 17.910. 6 DIVIDEND INCOME 7 ROYALTY INCOME 8 NET SHORT-TERM CAP.GN/LS 9 NET LONG-TERM CAP. GN/LS 10A-B NET GN/LS UNDER SEC.1231 11A OTHER PORTFOLIO INCOME 11B-C OTHER INCOME/LOSS ** DEDUCTIONS ** 12 SECTION 179 EXPENSE DEDUCTION 191,194. -191,194. NONE 13A CHARITABLE CONTRIBUTIONS 103,335. 103,335. 13B INVESTMENT INTEREST EXPENSE 13C1 IRC SEC 59(E) EXPENSE 13D PORTFOLIO DEDUCTIONS 13E OTHER DEDUCTIONS ** CREDITS ** 15A W/HOLDING ALLOC TO ALL PTRS 15B LOW INC HOUSING CR-ELEC PSHP 15C CREDIT - RENTAL REAL ESTATE 15D CREDIT - OTHER RENTAL 15F OTHER CREDITS ** AMT ITEMS ** 17A ACCEL. DEPR. POST 12/86 Z 2. 11.276. 17B ADJUSTED GAIN OR LOSS 17C DEPLETION 17D GROSS INCOME OIL/GAS 17E DEDUCTIONS OIL/GAS 17F OTHER AMT ITEMS ** OTHER ** 18A TAX-EXEMPT INTEREST INCOME 18B OTHER TAX-EXEMPT INCOME 18C NONDEDUCTIBLE EXPENSES 118,554. 118,554. 20A INVESTMENT INCOME 17.910. 17.910. 20B INVESTMENT EXPENSE 5Y05521.000 R66297 1608 EFTA00806493 NEXT MANAGEMENT, LLC 13-3495607 FORM 568 SUPPORTING SCHEDULES SCHEDULE B - INCOME AND DEDUCTIONS LINE 4 ORDINARY INCOME FROM OTHER PARTNERSHIPS & FIDUCIARIES FROM PASS THROUGH ENTITY - TWO TWELVE MANAGEMENT, LLC 266,546. TOTAL ORDINARY INCOME FROM 0TH PSHPS & FIDUCIARIES 266,546. LINE 11 - OTHER LOSS FOREIGN EXCHANGE LOSS 234,496. TOTAL OTHER LOSS 234,496. LINE 21 - OTHER DEDUCTIONS TRAVEL AND ENTERTAINMENT 90,792. INSURANCE EXPENSE 112,776. OFFICE SUPPLIES AND EXPENSES 105,286. PRINTING EXPENSE 43,338. SCOUTING EXPENSE 9,354. COMPUTER EXPENSE 108,201. CLEANING SERVICE 40,953. UTILITIES 34,652. POSTAGE 11,389. MISCELLANEOUS 104,822. BANK CHARGES 57,683. PUBLICATIONS & SUBSCRIPTIONS 12,677. TRAVEL 803,503. ADVERTISING AND PROMOTION 259,861. COMMISSIONS EXPENSE 2,002,456. PROFESSIONAL FEES 240,861. TELEPHONE EXPENSE 214,004. CONSULTING FEES 640,280. CONTEST EXPENSE 5,550. PAYROLL PROCESSING EXPENSE 14,299. OVERHEAD REIMBURSEMENT -1,470,551. MISCELLANEOUS MODEL EXPENSES 55,856. PROMOTIONAL MODEL EXPENSES 100,004. LITIGATION SETTLEMENT 45,632. CALIFORNIA LLC FEE 6,000. NYS LLC FEE 3,000. ORGANIZATION COSTS 5,000. REPAIRS 414,619. RENTS 749,810. TAXES 616,349. TOTAL OTHER DEDUCTIONS 5,438,456. STATEMENT 1 MUNI31A00 R66297 1608 89 EFTA00806494 NEXT MANAGEMENT, LLC 13-3495607 FORM 568 SUPPORTING SCHEDULES TAXES NYC UNINCORPORATED BUSINESS TAX NONE PAYROLL TAXES 578,105. NY COMMERCIAL RENT TAX 21,486. FL COMMERCIAL RENT TAX 1,853. CA LLC TAX NONE BEVERLY HILLS TAX 14,500. LA TAX 405. TOTAL TAXES 616,349. STATEMENT 2 6/O(063 1.000 R66297 1608 90 EFTA00806495 NEXT MANAGEMENT, LLC 13-3495607 FORM 568 SCHEDULE K SUPPORTING SCHEDULES SCHEDULE K - LINE 5 - INTEREST INCOME INTEREST INCOME 17,910. TOTAL INTEREST INCOME 17,910. SCHEDULE K - LINE 12 - EXPENSE DEDUCTION FOR RECOVERY PROPERTY OTHER (GENERAL BUSINESS) NONE TOTAL EXPENSE DEDUCTION FOR RECOVERY PROPERTY NONE SCHEDULE K - LINE 13A - CHARITABLE CONTRIBUTIONS CASH CONTRIBUTIONS: CASH CONTRIBUTIONS - 50% LIMITATION: CHARITABLE CONTRIBUTIONS 98,175. TOTAL CASH CONTRIBUTIONS - 50% LIMITATION 98,175. FROM TWO TWELVE MANAGEMENT, LLC 5,160. TOTAL CONTRIBUTIONS 103,335. SCHEDULE K - LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY OTHER (GENERAL BUSINESS) 11,334. FROM TWO TWELVE MANAGEMENT, LLC -58. TOTAL DEPRECIATION ADJUSTMENT ON PROPERTY 11,276. SCHEDULE K - LINE 18C - NONDEDUCTIBLE EXPENSES FROM TWO TWELVE MANAGEMENT, LLC 27,762. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 27,762. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 90,792. TOTAL NONDEDUCTIBLE EXPENSES 118,554. STATEMENT 3 6/O(063 1.000 R66297 1608 91 EFTA00806496 NEXT MANAGEMENT, LLC 13-3495607 FORM 568, SIDE 6 SUPPORTING SCHEDULES OTHER CURRENT ASSETS BEGINNING ENDING PREPAID EXPENSES 213,894. 159,432. DEFERRED TAX ASSET- CURRENT 15,000. 17,000. TOTAL OTHER CURRENT ASSETS 228,894. 176,432. OTHER INVESTMENTS BEGINNING ENDING INVESTMENT IN TWO TWELVE -214,609. 83,446. TOTAL OTHER INVESTMENTS -214,609. 83,446. OTHER ASSETS BEGINNING ENDING DEPOSITS 29,606. 43,931. RESTRICTED CASH 40,000. 40,000. DUE FROM AFFILIATES 774,693. 1,313,624. DUE FROM MODELS 1,464,108. 1,607,052. DEFERRED TAX BENEFIT-LONG TERM 53,000. 47,000. TOTAL OTHER ASSETS 2,361,407. 3,051,607. OTHER CURRENT LIABILITIES BEGINNING ENDING ACCRUED EXPENSES 1,304,038. 1,786,832. TOTAL OTHER CURRENT LIABILITIES 1,304,038. 1,786,832. OTHER LIABILITIES BEGINNING ENDING ADVANCES FROM AFFILIATES 21,519. 8,342. DUE TO RELATED PARTY 1,223,293. 1,476,782. DEFERRED RENT-LONG TERM 69,223. 135,009. TOTAL OTHER LIABILITIES 1,314,035. 1,620,133. STATEMENT 4 SX.X083 1.000 R66297 1608 92 EFTA00806497 NEXT MANAGEMENT, LLC 13-3495607 FORM 568, SIDE 6 SUPPORTING SCHEDULES SCHEDULE M-1 - LINE 4B - TRAVEL AND ENTERTAINMENT LIMITATION GROSS TRAVEL AND ENTERTAINMENT EXPENSES 181,584. LESS: TRAVEL AND ENTERTAINMENT INCLUDED ON SCHEDULE K 90,792. NET TRAVEL AND ENTERTAINMENT EXPENSES NOT INCLUDED ON SCHEDULE K 90,792. SCHEDULE M-1 - LINE 4 OTHER - EXPENSES ON BOOKS NOT INCLUDED ON SCH K DEFERRED TAX EXPENSE 4,000. SHAREHOLDER SALARIES 50,801. RENT ESCALATION ADJUSTMENT 66,152. NONDEDUCTIBLE EXPENSES FROM OTHER PSHP ACT/PASS THROUGH ENTITIES 27,762. FEDERAL/CALIFORNIA DIFFERENCES 361,675. TOTAL EXPENSES RECORDED ON BOOKS NOT INCLUDED ON SCHEDULE K 510,390. SCHEDULE M-1 - LINE 6B OTHER INCOME RECORDED ON BOOKS BUT NOT INCLUDED ON SCHEDULE K BOOK TO TAX DIFFERENCE IN INVESTMENT 82,521. TOTAL INCOME RECORDED ON BOOKS BUT NOT INCLUDED ON SCHEDULE K 82,521. SCHEDULE M-1 - LINE 7B OTHER - DEDUCTIONS ON SCH K NOT ON BOOKS AMORTIZATION 184,824. DEPRECIATION 152,866. TOTAL DEDUCTIONS ON SCHEDULE K NOT CHARGED AGAINST BOOK INCOME 337,690. SCHEDULE M-2 - LINE 3 - NET INCOME PER BOOKS NET INCOME PER BOOKS 2,319,987. TOTAL NET INCOME PER BOOKS 2,319,987. STATEMENT 5 SX.X083 1.000 R66297 1608 93 EFTA00806498 NEXT MANAGEMENT, LLC 13-3495607 FORM 568, SIDE 6 SUPPORTING SCHEDULES SCHEDULE M-2 - LINE 6A - CASH DISTRIBUTIONS CASH DISTRIBUTIONS 3,000,000. TOTAL CASH DISTRIBUTIONS 3,000,000. STATEMENT 6 MUNI31A00 R66297 1608 94 EFTA00806499 NEXT MANAGEMENT, LLC 13-3495607 CALIFORNIA PASS-THROUGH ENTITIES SUPPORTING SCHEDULES TWO TWELVE MANAGEMENT, LLC PASS-THROUGH ENTITIES - LINE 13A - CHARITABLE CONTRIBUTIONS CASH CHARITABLE CONTRIBUTIONS CASH CONTRIBUTIONS SUBJECT TO 50% LIMITATION 5,160. TOTAL CASH CHARITABLE CONTRIBUTIONS 5,160. TOTAL CHARITABLE CONTRIBUTIONS 5,160. PASS-THROUGH ENTITIES - LINE 18C - NONDEDUCTIBLE EXPENSES TRAVEL AND ENTERTAINMENT 27,762. TOTAL NONDEDUCTIBLE EXPENSES 27,762. STATEMENT 7 MUNI31A00 R66297 1608 95 EFTA00806500 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE R-2, SUPPORTING SCHEDULES SCHEDULE R-2, LINE 1 MODELING AGENCY SCHEDULE R-2, LINE 2 TWO TWELVE MANAGEMENT LLC - PUBLIC RELATIONS SCHEDULE R-2, LINE 3 NOT APPLICABLE. SCHEDULE R-2, LINE 4 NOT APPLICABLE. SCHEDULE R-2, LINE 8 NOT APPLICABLE. SCHEDULE R-2, LINE 9 NOT APPLICABLE. STATEMENT 8 MUNI31A00 R66297 1608 96 EFTA00806501 NEXT MANAGEMENT, LLC 13-3495607 027 CALIFORNIA Reconciliation of Partners' Capital Account A. Capital Account B. Capital aPartneesShamol D. Withdrawal E. Capital Account Unes%Ataid7Forni565 Palms' INKOmMgdYeas Contributed SetieduleM4 Distribution End of Year 1 777,664. 974,394. 1,260,000. 492,058. 2 573,991. 719,196. 930,000. 363,187. 3 499,929. 626,397. 810,000. 316,326. TOTALS 1,851,584. 2,319,987. 3,000,000. 1,171,571. SY0550 1.000 R66297 1608 97 EFTA00806502 TAXABLE YEAR Member's Share of Income, CALIFORNIA SCHEDULE 2015 Deductions, Credits, etc. K-1 (568) TYB 01-01-2015 TYE 12-31-2015 13-3508513 CLAXON INC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 13-3495607 200506910067 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 A What type of entity is this member?• (1) ❑ Individual (4) E C Corporation (7) ❑ LLP (10) ❑ Exempt Organization (2) ❑ S Corporation (5) ❑ General Partnership (8) ❑ LLC (11) ❑ Disregarded Entity (3) ❑ Estate/Trust (6) ❑ Limited Partnership (9) ❑ IRAIKeoghtSEP B Is this member a foreign member? • ❑ Yes No C Enter members percentage (without regard to special allocations) of: (i) Before decrease (ii) End of year or termination Profit sharing 42.0000 42.0000 96 Loss sharing 42.0000 42.0000 96 Ownership of capital 42.0000 • 42.0000 96 D Members share of liabilities: Nonrecourse • $ 6.137.989 Qualified nonrecourse financing • $ Other • $ 621,152_ E Reportable transaction or tax shelter registration number(s) F (1) Check here if this is a publicly traded partnership as defined in IRC Section 469(k)(2) o0 (2) Check here if this is an investment partnership (R&TC Sections 17955 and 23040.1) o0 a Check here if this is: • (1) ❑ A final Schedule K-1 (568) (2) ❑ An amended Schedule K-1 (568) H Is this member a resident of California) • ❑ Yes ► M No ■ Fer Minn,Maim get km Pre1101 DAMP. 5O0577 1.000 027 7901154 I Schedule K-1 (568) 2015 Side 1 ■ R66297 1608 98 EFTA00806503 NEXT MANAGEMENT, LLC 13-3495607 Members name Members Identifying number ARTNFR N 1 CLMON JNC 23-1508513 I Analysis of members capital account: Cheetahs box •(1)0 Tax Basis (2)® GAM' (3)❑ Section 704(b) Book (4)❑Other (explain) (a) (b) (c) 00 (e) Carla account a larginners cd yew Capital Gonad:Ned during yaw Manbeses shwa of Ina 1. Yea 4. and Withdrawals and distributions Capital accounl al cod ol year. line? Form 568 Schedule M-2 combine column Cal ar0Uall COMM (dl 777,664. • • 974,394. •( 1,260,000. )• 492,058. Caution: Refer to Members Instructions for Schedule K-1 568) before entering information from this schedule on you California return. (a) (19 (c) 00 (e) Distributive share items Amounts from California adjustments Total amounts using California federal Schedule K-1 California law. Combine source amounts (1065) col. 0:0 and col. (c) and credits where applicable 1 Ordinary income (loss) Irom trade or business activities 1,014,678. 48,095.• 1062773. ► 26457$. 2 Net income (loss) from rental real estate activities • ► 3 Nat income (loss) from other rental activities 0 0 4 Guaranteed payments to members • ► 5 Interest income 7,522. • 7522. ► 1873. 6 Dividends • ► Income (Loss) 7 Royalties • ► 8 Net short-term capital gain (loss) • ► 9 Net long-term capital gain (loss) • ► 10 a Total gain under IRC Section 1231 (other than due to casualty or theft) • ► b Total loss under IRC Section 1231 (other than due to casualty or theft) • ► 11 a Other portfolio income (loss). Attach schedule • ► b Total other Income. Attach schedule • ► I c Total other loss. Attach schedule • ► 12 Expense deduction for recovery properly (IRC Section 179) 80,301. -80.301. 13 a Charitable contributions 43,401. 43401. b Investment interest expense Deductions c 1 Total expenditures to which an IRC Section 59(e) election may apply. 2 Type of expenditures d Deductions related to portfolio income Attach schedule e Other deductions. Attach schedule I Side 2 Schedule K-1 (568) 2015 soosao tom 027 7902154 • R66297 1608 99 EFTA00806504 NEXT MANAGEMENT, LLC 13-3495607 Member's name Member's Identifying number PARTNER if 1 CLAXON INC 11-3508511 (a) (b) (c) 00 (e) Distributive share items Amounts from California adjustments Total amounts using California federal Schedule K-I California law. Combine source amounts 00651 col. (b) and cd. (c) and credits 15 a Total withholding (equals amount on Form 592-B II calendar year LLC). . . . • 90. b Low-Income housing credt e Credits other than line I 5b related to rental Credits real estate activities. Attach schedule . . . . d Credits related to other rental activities. Attach schedule e Nonconsenting navesident members' tax paid by LLC f Other credits - Man required schedules or statements • New em • o ment credit 'Alternative Minimum Tax (AIM Marna 17 a Depreciation adjustment on property placed In service alter 1986 STMT. 2 -410. 5,146.0 4736. (7) 1179. b Adjusted gain or loss c Depletion (other than oil 8 gas) . . . d Gross Income from oil, gas, and geothermal properties e Deductions allocable to oil, gas, and geothermal properties f Other alternative minimum tax items. Attach schedule Tax Exempt Income 18 a Tax-exempt Interest income and Nandeduchble b Other tax-exempt income Expenses e Nondeductible expenses STMT.2 49,793. 49793. 12 96. Distributions 19 a Distributions of money (cash and marketable securities) 1,260,000. ® 1260000. b Distributions of property other than money Q. c 20 a Investment Income 7,522. 7522. 1873. 0 191 5 € b Investment expenses 0 e Other Information. See instructions. . • 50037e 1.000 027 7903154 Schedule K-1 (568) 2015 Side 3 El R66297 1608 100 EFTA00806505 NEXT MANAGEMENT, LLC 13-3495607 Member's mime Member's Identifying number kARTNER 1 1 CLAXON INC 11-15011511 Other Member Information Table 1 - Member's share of nonbusiness income from intangibles (source of income is dependent on residence or commercial domicile of the member): Interest $ Sec. 1231 Gains/Losses $ Capital Gains/Losses $ Dividends $ Royalties $ Other FOR USE BY MEMBERS ONLY - See Instructions. Table 2 - Member's share of distributive Items. A. Members share of the LLC's business Income. See Instructions. $ B. Members share of nonbusiness income from real and tangible personal property sourced or allocable to California. Capital Gains/Losses $ Rents/Royalties $ Sec. 1231 Gains/Losses $ Other C. Members distributive share of the LLC's property. payroll. and sales: Factors Total within and outside California Total within California Properly: Beginning $ 1.775.200. 155,397. Property: Ending $ 1.777.974. 173.976. Property: Annual rent expense 314,920. 42.1 91. Payroll 4,776.335. 809.557. Sales 8.838.212. 2.200.281. Side 4 Schedule K-1 (568) 2015 monism) 027 7904154 • R66297 1608 101 EFTA00806506 NEXT MANAGEMENT, LLC 13-3495607 027 CALIFORNIA PARTNER'S SCHEDULE OF ACTIVITIES PARTNER 1 1 CLAXON INC ActivityName(sHmdTypeofftwome: A NEXT MANAGEMENT, LLC, PORTFOLIO B NEXT MANAGEMENT, LLC, TRADE OR BUSINESS C TWO TWELVE MANAGEMENT, LLC, GENERAL TRADE/BUSINESS D E Activity A Activity B Activity C Activity D Activity E Activity disposed of during year NO NO NO Qualdiedlow-MomehousIng NO NO NO PuNdytra&Wprimwth0 NO NO NO Pass.thmuilhacWO NO NO YES Schedule K - Line References 1 Ordinary income 236,708. 27,870. 2 Rental Real Estate 3 Other Rental 5 Interest income 1,87.3. 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income 4 Guaranteed Payments 10 ab Net 1231 G/L 11 be Other Income 13 a Charitable Contributions, . 41,234. 2,167. 12 Section 179 13 d Deductions Portfolio Income 13 e Other Deductions 13 b Investment Interest Expense 20 a Investment Income 1,873. 20 b Investment Expenses . . . 15 a Credit Income Tax Withheld 15 b Low Income House Credit 15 c Credit Rental Real Estate . 15 d Credit Other Rental 15 1 Other Credits 17a Depr. Adj. Prop. 12,31:86 1,185. 17 b Adjusted Gain or Loss 17 c Depletion 17 d Gross Inc OiliGasteoth. 17 e Deducts Alloc. to OrMas 17 1 Other Tax Preference 13 c Section 59(e) Expense 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded. expense 9,493. 2,903. 20 Other Items 9 Longterm Net Capital at . S00520 2.000 R66297 1608 102 EFTA00806507 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 1 PARTNER NAME CLAXON INC ITEM I, COLUMN(C) - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11C 1,070,295. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12 - 13E 43,401. TOTAL INCOME PER SCHEDULE K-1 1,026,894. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 38,133. LLC TAX 336. DEFERRED TAX EXPENSE 1,680. SHAREHOLDER SALARIES 21,336. RENT ESCALATION ADJUSTMENT 27,784. NONDEDUCTIBLE EXPENSES 11,660. OTHER FEDERAL/CALIFORNIA DIFFERENCES 151,904. ADD: INCOME RECORDED ON BOOKS, NOT INCLUDED ON K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 34,659. ADD: DEDUCTIONS INCL. ON SCH. K-1, NOT CHARGED AGAINST BOOKS: DEPRECIATION 23,844. AMORTIZATION 77,626. DEPRECIATION 64,204. TOTAL INCOME PER ITEM I, COLUMN(C) 974,394. CAPITAL WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 1,260,000. TOTAL CAPITAL WITHDRAWALS AND DISTRIBUTIONS 1,260,000. LINE 5 - INTEREST FROM PARTNERSHIP 1,873. TOTAL INTEREST 1,873. LINE 13A - CHARITABLE CONTRIBUTIONS CONTINUED ON NEXT PAGE STATEMENT 1 MUNI31A00 R66297 1608 103 EFTA00806508 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 1 PARTNER NAME CLAXON INC LINE 13A - CHARITABLE CONTRIBUTIONS ( CASH CONTRIBUTIONS: SUBJECT TO 50% LIMITATION 41,234. FROM PASS-THROUGH ENTITIES 2,167. TOTAL CONTRIBUTIONS 43,401. LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY AFTER 12/31/86 OTHER (GENERAL BUSINESS) PROPERTIES 1,185. FROM PASS-THROUGH ENTITIES TOTAL DEPRECIATION ADJ. AFTER 12/31/86 1,179. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 2,903. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 2,903. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 9,493. TOTAL NONDEDUCTIBLE EXPENSES 12,396. STATEMENT 2 MUNI31A00 R66297 1608 104 EFTA00806509 TAXABLE YEAR Member's Share of Income, CALIFORNIA SCHEDULE 2015 Deductions, Credits, etc. K-1 (568) TYB 01-01-2015 TYE 12-31-2015 13-3501977 PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 13-3495607 200506910067 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 A What type of entity is this member?• (1) ❑ Individual (4) ❑ C Corporation (7) ❑ LLP (10) ❑ Exempt Organization (2) S Corporation (5) ❑ General Partnership (8) ❑ LLC (11) ❑ Disregarded Entity (3) ❑ Estate/Trust (6) ❑ Limited Partnership (9) ❑ IRAIKeoghtSEP B Is this member a foreign member? • ❑ Yes El No C Enter members percentage (without regard to special allocations) of: (i) Before decrease (ii) End of year or termination Profit sharing 31.0000 31.0000 96 Loss sharing 31.0000 31.0000 96 Ownership of capital 31.0000 • 31.0000 96 D Members share of liabilities: Nonrecourse • $ 4.530.420 Qualified nonrecourse financing • $ Other • $ 460.389 E Reportable transaction or tax shelter registration number(s) F (1) Check here if this is a publicly traded partnership as defined in IRC Section 469(k)(2) o0 (2) Check here if this is an investment partnership (R&TC Sections 17955 and 23040.1) o0 G Check here if this is: • (1) ❑ A final Schedule K-1 (568) (2) ❑ An amended Schedule K-1 (568) H Is this member a resident of California'? • ❑ Yes ► M No ■ Fer Minn,Maim get km PIM 1131 DAMP. 5O0577 1.000 027 7 9 0 11 5 4 I Schedule K-1 (568) 2015 Side 1 ■ R66297 1608 105 EFTA00806510 NEXT MANAGEMENT, LLC 13-3495607 Members name Members identifying number ARTNFR # 2 PARTNERSHIP HOLDING CORP. 23-1501977 I Analysis of members capital account: Cheetahs box •(1)0 Tax Basis (2)® GAAP (3)❑ Section 704(b) Book (4)❑Other (explain) Ca) (b) (c) 00 (e) Capital account alb:gime* cd year Capital aantritulad during year Mamba's shwa of Ina 1. Yea 4. and Withdrawals and distributions Capital accatml al end ol year. line 7 Form 568 ScheduleM-2 combine Odurnn MI arOUOII COMM MI 573,991. • • 719,196. •( 930,000.)• 363,187. Caution: Refer to Members Instructions for Schedule K-1 568) before entering information from this schedule on you California return. (a) (19 (c) 00 (e) Distributive share items Amounts from California adjustments Total amounts using California federal Schedule K-1 California law. Combine source amounts (1065) col. (b) and cat (c) and credits where applicable 1 Ordinary income (loss) from trade or business activities 748,931. 35,496. • 784427. ► 195284. 2 Net income (loss) from rental real estate activities • ► 3 Nat income (loss) from other rental activities 0 0 4 Guaranteed payments to members • ► 5 Interest income 5,552. • 5552. ► 1382. 6 Dividends • ► Income (Loss) 7 Royalties • ► 8 Net short-term capital gain (loss) • ► 9 Net long-term capital gain (loss) • ► 10 a Total gain under IRC Section 1231 (other than due to casualty or theft) • ► b Total loss under IRC Section 1231 (other than due to casualty or theft) • ► 11 a Other portfolio income (loss). Attach schedule, • ► b Total other Income. Attach schedule • ► I c Total other loss. Attach schedule • ► 12 Expense deduction for recovery property (IRC Section 179) 59,271. -59,271. 13 a Charitable contributions 32,034. -1. 32033. b Investment interest expense Deductions c 1 Total expenditures to which an IRC Section 59(e) election may apply. 2 Type of expenditures d Deductions related to portfolio income Attach schedule e Other deductions. Attach schedule I Side 2 Schedule K-1 (568) 2015 soma tom 027 7902154 • R66297 1608 106 EFTA00806511 NEXT MANAGEMENT, LLC 13-3495607 Member's name Member's Identifying number ARTNER 8 2 PARTNERSHIP HOLDING CORP. 11-1,501977 (a) (b) (c) 00 (e) Distributive share Items Amounts from California adjustments Total amounts using California federal Schedule K-I California law. Combine source amounts 00651 col. (b) and cd. (c) and credits 15 a Total withholding (equals amount on Form 592-B II calendar year LLC). . . . • 90. b Low-Income housing credt e Credits other than line I 5b related to rental Credits real estate activities. Attach schedule . . . . d Credits related to other rental activities. Attach schedule e Nonconsenting navesident members' tax paid by LLC f Other credits - Attach required schedules or statements • New em • o ment credit 'Alternative Minimum Tax (AIM Marna 17 a Depreciation adjustment on property placed In service alter 1986 STMT. 2 —302. 3,797.C) 3495.0 870. b Adjusted gain or loss c Depletion (other than oil 8 gas) . . . d Gross Income from oil, gas, and geothermal properties e Deductions allocable to oil, gas. and geothermal properties f Other alternative minimum tax items. Attach schedule Tax Exempt Income 18 a Tax-exempt Interest income and Nandeduchble b Other tax-exempt income Expenses e Nondeductible expenses. STMT. 2 36,751. 36751. 9149. Distributions 19 a Distributions of money (cash and marketable securities) 930,000. ID 930000. b Distributions of property other than money ® c 20 a Investment Income 5,552. 5552. 1382. 0 191 5 € b Investment expenses 0 o -E e Other Information. See instructions. . • 500370 1.000 027 7903154 Schedule K-1 (568) 2015 Side 3 El R66297 1608 107 EFTA00806512 NEXT MANAGEMENT,LLC 13-3495607 Members name Member's Identifying number [PARTNER1 2 PARTNERSHIPHOLDINGCORP. 11-1501977 Other Member Information Table 1 - Member's share of nonbusiness income from intangibles (source of income Is dependent on residence or commercial domicile of the member): Interest $ P Sec. 1231 Gains/Losses $ Capital GainsiLosses $ Dividends $ Royalties $ Other FOR USE BY MEMBERS ONLY • See Instructions. Table 2 - Member's share of distributive items. A. Members share of the LLC's business income. See instructions. $ B. Members share of nonbusiness Income from real and tangible personal property sourced or allocable to California. Capital Gainstosses $ Rents(Royalties $ Sec. 1231 Gainstosses $ Other C. Members distributive share of the LLC's property, payroll, and sales: Factors Total within and outside California Total within California Properly: Beginning $ 1.310.267. 114,698. Properly: Ending $ 1.312.314. 128.410. Properly: Annual rent expense $ 232,441. 31.141. Payroll 3,525.391. 597.520. Sales 6.523.442. 3.624.017. • Side 4 Schedule K-1 (568) 2015 027 7904154 • 5O0579 1.000 R66297 1608 108 EFTA00806513 NEXT MANAGEMENT, LLC 13-3495607 027 CALIFORNIA PARTNER'S SCHEDULE OF ACTIVITIES PARTNER # 2 PARTNERSHIP HOLDING CORP ActivityName(sHmdTyNHOIncome: A NEXT MANAGEMENT, LLC, PORTFOLIO B NEXT MANAGEMENT, LLC, TRADE OR BUSINESS C TWO TWELVE MANAGEMENT, LLC, GENERAL TRADE/BUSINESS D E Activity A Activity B Activity C Activity D Activity E Activity disposed of during year NO NO NO Oualifiedlow-ificomettaising NO NO NO PuNdytra&Wprimwth0 NO NO NO Pass - throuoh activity NO NO YES Schedule K - Line References 1 Ordinary income 174,713. 20,571. 2 Rental Real Estate 3 Other Rental 5 Interest Income 1,382. 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income 4 Guaranteed Payments 10 ab Net 1231 G/L 11 be Other Income 13 a Charitable Contributions, . 30,434. 1,599. 12 Section 179 13 d Deductions Portfolio Income 13 e Other Deductions 13 b Investment Interest Expense 20 a Investment Income 1,382. 20 b Investment Expenses . . . 15 a Credit Income Tax Withheld 15 b Low Income House Credit 15 c Credit Rental Real Estate . 15 d Credit Other Rental 15 I Other Credits 17 a Depr. Adj. Prop. 12,31:86 875. 17 b Adjusted Gain or Loss 17 c Depletion 17 d Gross Inc OiliGasteoth. 17 e Deducts Alloc. to Oil*tas 17 I Other Tax Preference 13 c Section 59(e) Expense 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded. expense 7,007. 2,142. 20 Other Items 9 Lono.term Net Capital at . 60062e 2.000 R66297 1608 109 EFTA00806514 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 2 PARTNER NAME PARTNERSHIP HOLDING CORP. ITEM I, COLUMN(C) - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11C 789,979. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12 - 13E 32,033. TOTAL INCOME PER SCHEDULE K-1 757,946. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 28,145. LLC TAX 248. DEFERRED TAX EXPENSE 1,240. SHAREHOLDER SALARIES 15,749. RENT ESCALATION ADJUSTMENT 20,507. NONDEDUCTIBLE EXPENSES 8,606. OTHER FEDERAL/CALIFORNIA DIFFERENCES 112,120. ADD: INCOME RECORDED ON BOOKS, NOT INCLUDED ON K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 25,581. ADD: DEDUCTIONS INCL. ON SCH. K-1, NOT CHARGED AGAINST BOOKS: DEPRECIATION 17,600. AMORTIZATION 57,296. DEPRECIATION 47,388. TOTAL INCOME PER ITEM I, COLUMN(C) 719,196. CAPITAL WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 930,000. TOTAL CAPITAL WITHDRAWALS AND DISTRIBUTIONS 930,000. LINE 5 - INTEREST FROM PARTNERSHIP 1,382. TOTAL INTEREST 1,382. LINE 13A - CHARITABLE CONTRIBUTIONS CONTINUED ON NEXT PAGE STATEMENT 1 MUNI31A00 R66297 1608 110 EFTA00806515 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 2 PARTNER NAME PARTNERSHIP HOLDING CORP. LINE 13A - CHARITABLE CONTRIBUTIONS (CONT'D) CASH CONTRIBUTIONS: SUBJECT TO 50% LIMITATION 30,434. FROM PASS-THROUGH ENTITIES 1,599. TOTAL CONTRIBUTIONS 32,033. LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY AFTER 12/31/86 OTHER (GENERAL BUSINESS) PROPERTIES 875. FROM PASS-THROUGH ENTITIES TOTAL DEPRECIATION ADJ. AFTER 12/31/86 870. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 2,142. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 2,142. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 7,007. TOTAL NONDEDUCTIBLE EXPENSES 9,149. STATEMENT 2 MUNI31A00 R66297 1608 111 EFTA00806516 TAXABLE YEAR Member's Share of Income, CALIFORNIA SCHEDULE 2015 Deductions, Credits, etc. K-1 (568) TYB 01-01-2015 TYE 12-31-2015 13-3682060 THE WILCOR GROUP, INC. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK NY 10013 13-3495607 200506910067 NEXT MANAGEMENT LLC 15 WATTS STREET NEW YORK NY 10013 A What type of entity is this member?• (1) ❑ Individual (4) ❑ C Corporation (7) ❑ LLP (10) ❑ Exempt Organization (2) S Corporation (5) ❑ General Partnership (8) ❑ LLC (11) ❑ Disregarded Entity (3) ❑ Estate/Trust (6) ❑ Limited Partnership (9) ❑ IRAIKeoghtSEP B Is this member a foreign member? • ❑ Yes El No C Enter members percentage (without regard to special allocations) of: (i) Before decrease (ii) End of year or termination Profit sharing 27.0000 27.0000 96 Loss sharing 27.0000 27.0000 96 Ownership of capital 27.0000 • 27.0000 96 D Members share of liabilities: Nonrecourse • $ 3,945,850 Qualified nonrecourse financing • $ Other • $ 400.983 E Reportable transaction or tax shelter registration number(s) F (1) Check here if this is a publicly traded partnership as defined in IRC Section 469(k)(2) o0 (2) Check here if this is an investment partnership (R&TC Sections 17955 and 23040.1) o0 G Check here if this is: • (1) ❑ A final Schedule K-1 (568) (2) ❑ An amended Schedule K-1 (568) H Is this member a resident of California'? • ❑ Yes ► M No ■ Fer Minn,Maim get km PIM 1131 DAMP. 5O0577 1.000 027 7 9 0 11 5 4 I Schedule K-1 (568) 2015 Side 1 ■ R66297 1608 112 EFTA00806517 NEXT MANAGEMENT, LLC 13-3495607 Members name Members identifying number ARTNFR # 3 THE WTLCOR GROUP. INC. 23-3682060 I Analysis of members capital account: Cheetahs box •(1)0 Tax Basis (a) (b) (c) pa GAAP (3)❑ Section 704(b) Book (4)❑Other (explain) 08 (e) Capital account at begin iv cd year Capital aanaitulad during year Mernbeses shwa of Ina 3. Yea 4. and Withdrawals and distributions Capital accounl al cod ol year. line 7 Form 568 ScheduleM-2 combine column Cal arOUall tOkann CM 499,929. • • 626,397. •( 810,000.)• 316,326. Caution: Refer to Members Instructions for Schedule K-1 568) before entering information from this schedule on you California return. (a) 1 14 (o) (4) (e) Distributive share items Amounts from California adjustments Total amounts using California federal Schedule K-1 California law. Combine source amounts (1065) col. (b) and ca (c) and credits where applicable 1 Ordinary income (loss) from trade or business activities 652,293. 30,918.• 683211. ► 170086. 2 Net income (loss) from rental real estate activities • ► 3 Nat income (loss) from other rental activities 0 0 4 Guaranteed payments to members • ► 5 Interest income 4,836. • 4836. ► 1204. 6 Dividends • ► Income (Loss) 7 Royalties • ► 8 Net short-term capital gain (loss) • ► 9 Net long-term capital gain (loss) • ► 10 a Total gain under IRC Section 1231 (other than due to casualty or theft) • ► b Total loss under IRC Section 1231 (other than due to casualty or theft) • ► 11 a Other portfolio income (loss). Attach schedule - • ► b Total other Income. Attach schedule • ► I c Total other loss. Attach schedule • ► 12 Expense deduction for recovery property (IRC Section 179) 51,622. -51.622. 13 a Charitable contributions 27,900. 1. 27901. b Investment interest expense Deductions c 1 Total expenditures to which an IRC Section 59(e) election may apply. 2 Type of expenditures d Deductions related to portfolio income Attach schedule e Other deductions. Attach schedule I Side 2 Schedule K-1 (568) 2015 soosso tow 027 7902154 • R66297 1608 113 EFTA00806518 NEXT MANAGEMENT, LLC 13-3495607 Member's name Member's Identifying number PARTNER if 3 THE WILCOR GROUP. INC. 11-1882060 (a) (b) (0) 00 (e) Distributive share Items Amounts from California adjustments Total amounts using California federal Schedule K-I California law. Combine source amounts (10651 col. (b) and cd. (c) and credits 15 a Total withholding (equals amount on Form 592-B II calendar year LLC). . . . • la b Low-Income housing credt e Credits other than line 15b related to rental Credits real estate activities. Attach schedule . . . . d Credits related to other rental activities. Attach schedule e Nonconsenting navesident members' tax paid by LLC f Other credits - Attach required schedules or statements • New em • o ment credit 'Alternative Minimum Tax (AIM Marna 17 a Depreciation adjustment on property placed In service alter 1986 SIMI' . 2 —264. 3,309.0 3045.0 758. b Adjusted gain or loss c Depletion (other than oil 8 gas) . . . d Gross Income from oil, gas, and geothermal properties e Deductions allocable to oil, gas, and geothermal properties f Other alternative minimum tax items. Attach schedule Tax Exempt Income 18 a Tax-exempt Interest income and Nandeduchble b Other tax-exempt income Expenses e Nondeductible expenses. STMT.2 32,010. 32010. 7969. Distributions 19 a Distributions of money (cash and marketable securities) $10,000. ® $10000. b Diminutions of property other than money ® c 20 a Investment Income 4,836. 4836. 1204. O lil a 5 € b Investment expenses 0 o "a' e Other Information. See instructions. . • SOMM 1.000 027 7903154 Schedule K-1 (568) 2015 Side 3 El R66297 1608 114 EFTA00806519 NEXT MANAGEMENT, LLC 13-3495607 Member's mime Member's Identifying number 'PARTNER 1 3 THE WILCOR GROUP. INC. 11-1682060 Other Member Information Table 1 - Member's share of nonbusiness income from intangibles (source of income is dependent on residence or commercial domicile of the member): Interesi $ Sec. 1231 Gains/Losses $ Capital Gains/Losses $ Dividends $ Royalties $ Other FOR USE BY MEMBERS ONLY - See instructions. Table 2 - Member's share of distributive items. A. Members share of the LLC's business income. See instructions. $ B. Members share of nonbusiness income from real and tangible personal property sourced or allocable to California. Capital Gains/Losses $ Rents/Royalties $ Sec. 1231 Gains/Losses $ Other C. Members distributive share of the LLC's property. payroll. and sales: Factors Total within and outside California Total within California Properly: Beginning $ 1.141.200. 99.898. Property: Ending $ 1.142.983. 111.842. Property: Annual rent expense 202,449. 27.123. Payroll 3.070.501. 520.429. Sales 5.681.707. r 1.414.467. Side 4 Schedule K-1 (568) 2015 =wet= 027 7904154 • R66297 1608 115 EFTA00806520 NEXT MANAGEMENT, LLC 13-3495607 027 CALIFORNIA PARTNER'S SCHEDULE OF ACTIVITIES PARTNER # 3 THE WILCOR GROUP, INC ActivityName(sHmdTyNHOIncome: A NEXT MANAGEMENT, LLC, PORTFOLIO B NEXT MANAGEMENT, LLC, TRADE OR BUSINESS C TWO TWELVE MANAGEMENT, LLC, GENERAL TRADE/BUSINESS D E Activity A Activity B Activity C Activity D Activity E Activity disposed of during year NO NO NO Qualifiediow-incomehousing NO NO NO PuNdytra&Wprimwth0 NO NO NO Pass - throuoh activity NO NO YES Schedule K - Line References 1 Ordinary income 152,170. 17,916. 2 Rental Real Estate 3 Other Rental 5 Interest Income 1,204. 6 Dividend Income 7 Royalty Income 8 Short-term Net Capital Gil. 11 a Other Portfolio Income 4 Guaranteed Payments 10 ab Net 1231 G/L 11 be Other Income 13 a Charitable Contributions, . 26,507. 1,394. 12 Section 179 13 d Deductions Portfolio Income 13 e Other Deductions 13 b Investment Interest Expense 20 a Investment Income 1,204. 20 b Investment Expenses . . . 15 a Credit Income Tax Withheld 15 b Low Income House Credit 15 c Credit Rental Real Estate . 15 d Credit Other Rental 15 1 Other Credits 17 a Depr. Adj. Prop. 12,31:86 762. 17 b Adjusted Gain or Loss 17 c Depletion 17 d Gross Inc OiliGasteoth. 17 e Deducts Alloc. to Oil*tas 17 1 Other Tax Preference 13 c Section 59(e) Expense 18 a Tax - exempt int. Income 18 b Other tax exempt Income 18c Nonded. expense 6,103. 1,866. 20 Other Items 9 Lono.term Net Capital at . 60062e 2.000 R66297 1608 116 EFTA00806521 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 3 PARTNER NAME THE WILCOR GROUP, INC. ITEM I, COLUMN(C) - RECONCILIATION OF INCOME INCOME (LOSS) FROM SCH. K-1, LINES 1 - 11C 688,047. LESS: DEDUCTIONS FROM SCH. K-1, LINES 12 - 13E 27,901. TOTAL INCOME PER SCHEDULE K-1 660,146. LESS: EXPENSES RECORDED ON BOOKS, NOT INCLUDED ON SCH. K-1: TRAVEL AND ENTERTAINMENT 24,514. LLC TAX 216. DEFERRED TAX EXPENSE 1,080. SHAREHOLDER SALARIES 13,716. RENT ESCALATION ADJUSTMENT 17,861. NONDEDUCTIBLE EXPENSES 7,496. OTHER FEDERAL/CALIFORNIA DIFFERENCES 97,651. ADD: INCOME RECORDED ON BOOKS, NOT INCLUDED ON K-1: BOOK TO TAX DIFFERENCE IN INVESTMENT 22,281. ADD: DEDUCTIONS INCL. ON SCH. K-1, NOT CHARGED AGAINST BOOKS: DEPRECIATION 15,328. AMORTIZATION 49,902. DEPRECIATION 41,274. TOTAL INCOME PER ITEM I, COLUMN(C) 626,397. CAPITAL WITHDRAWALS AND DISTRIBUTIONS CASH DISTRIBUTIONS 810,000. TOTAL CAPITAL WITHDRAWALS AND DISTRIBUTIONS 810,000. LINE 5 - INTEREST FROM PARTNERSHIP 1,204. TOTAL INTEREST 1,204. LINE 13A - CHARITABLE CONTRIBUTIONS CONTINUED ON NEXT PAGE STATEMENT 1 MUNI31A00 R66297 1608 117 EFTA00806522 NEXT MANAGEMENT, LLC 13-3495607 PARTNER # 3 PARTNER NAME THE WILCOR GROUP, INC. LINE 13A - CHARITABLE CONTRIBUTIONS (CONT'D) CASH CONTRIBUTIONS: SUBJECT TO 50% LIMITATION 26,507. FROM PASS-THROUGH ENTITIES 1,394. TOTAL CONTRIBUTIONS 27,901. LINE 17A - DEPRECIATION ADJUSTMENT ON PROPERTY AFTER 12/31/86 OTHER (GENERAL BUSINESS) PROPERTIES 762. FROM PASS-THROUGH ENTITIES TOTAL DEPRECIATION ADJ. AFTER 12/31/86 758. LINE 18C - NONDEDUCTIBLE EXPENSES FROM PASS-THROUGH ENTITIES 1,866. TOTAL NONDEDUCTIBLE EXPENSES BEFORE TRAVEL AND ENTERTAINMENT 1,866. TRAVEL AND ENTERTAINMENT EXPENSES - NONDEDUCTIBLE 6,103. TOTAL NONDEDUCTIBLE EXPENSES 7,969. STATEMENT 2 MUNI31A00 R66297 1608 118 EFTA00806523 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form F•1065 2015 Florida Partnership Information Return for the year ended December 31, 2015 The original return should be signed (use full name) and dated on page 1 by an authorized member. The signed return should be filed on or before October 3, 2016 with the following: Florida Department of Revenue 5050 W. Tennessee Street Tallahassee, Florida 32399.0135 To document the timely filing of your tax return(s), we suggest that you obtain and retain proof of mailing. Proof of mailing can be accomplished by sending the tax retum(s) by registered or certified mail (metered by the U.S. Postal Service) or through the use of an IRS approved delivery method provided by an IRS designated private delivery service. EFTA00806524 THOM F-1065 Florida Partnership Information Return R. 01/16 Rule 12C-1.051 Maki Administrapilve Code Elleelive 01.'16 For the taxable year beginning 01/01 , 2015 and ending 12/31 , 2015 NEXT MANAGEMENT, LLC 13-3495607 Name of Pannerstip Federal Employer Identification Number (FEIN) 15 WATTS STREET 6TH FLOOR Street Address 812990 Principal Business Activity Code NEW YORK NY 10013 City Stale ZIP Part I. Florida Adjustment to Partnership Income A. Additions to lederal income: 1. Federal tax-exempt interest Total interest excluded from federal ordinary income Lass associated expenses not deductible in computing federal ordinary income ( ) Net Interest 2. State Income taxes deducted in computing federal ordinary income 176,961. 3. Other additions SEE STATEMENT 1 107,792. Total A. 284,753. B. Subtractions from federal income SEE STATEMENT 1 B. 66.477. C. Subtotal (Line A less Line Et) C. 218,276. D. Net adjustment from other partnerships or joint ventures D. E. Partnership income adjustment 1. Increase (total of Lines C and D) Et 218, 276. 2. Decrease (total of Lines C and D) 2.1 ) Part IL Distribution of PadmushWIncomeAMushnent Partners name and address (Include FEIN) (a) (b) (c) Amount shown Partners percentage Column (a) times Column (b) - paints share of Line E. Note: if there is no adjustment on Line E, show partnees percentage on Line E, Part I. of profits Enter heat and on Florida Form F-1123. of profits in Column (b) and leave Columns (a) and (c) blank. above Schedule I. Line 19 le decrease. Schedule II. UM it A. 8. SEE STATEMENT 1 c Under penalties of penury. I declare dull haw exarroned this return. eictoring accompanyng schedules and stmernenls. and to the best al my knowledge and b it is true, correct. and complete. Declaration a prepare( Maw than lawayen s based an a Mormaticn ol Mach paperer has any knowledge. Sign Here Signature of partner or member (Must be an original signature.) Date Pr s iderblioseon Watt. P Preparers Check d sett- Paid Preparer Only SI• nature Firm% name (or yours' BERDON LLP If self-employed) 360 MADISON AVE Date employed FEIN ► f 13-0485070 aid address NEW YORK NY ZIP Is. 10017 Mail To: Florida Department of Revenue. 5050 W. Tennessee St.. Tallahassee FL 32399-0135 901114 2.000 R66297 1 608 EFTA00806525 NEXT MANAGEMENT LLC 13-3495607 THOM F-1065 R. 01/16 II II Page 2 NOTE: Please read instructions (Florida Form F-1065N) before completing the schedules below. Part M. Apportionment Information III-A For use by partnerships doing business both within (a) Within Florida (b) Total Everywhere and without Florida 1. Average value of property per Schedule III-C (Line 8) 1.272,372. 10,228.449. 2. Salaries, wages, commissions. and other compensation paid or accrued in connection with trade or business for the period covered by this return 988,189. 11,372,227. 3. Sales 2.403,868. 21,043.361. III-B. For use by partnerships providing transportation (a) Within Florida (b) Total Everywhere services within and without Florida 1. Transportation services revenue miles (see instructions) Within Florida Total Everywhere III-C. For use in computing average value of property a. Beginning a Yew b. End of Year c. Beginning of Yew d. End of Year 1. Inventories of raw material, work in process, finished goods 2. Buildings and other depreciable assets (at original cost) 395,315. 327,985.2,051,722. 1,747,434. 3. Land owned (at original cost) 4. Other tangible assets (at original cost) and intangble assets (financial organizations only). Attach schedule STMT 2 117,475. 146,432.2,174,945.2,485,837. 5. Total (Lines 1 through 4). 512,790. 474,417. 4,226,667. 4,233,271. 6. Average value of property in Florida (Within Florida). add Line 5, Columns (a) and (b) and divide by 2. For average value of properly everywhere (Total Everywhere), add Line 5, Columns (c) and (d) and divide by 2. 493,604. 4,229,969. 7. Rented property - (8 times net annual rem) 778,768. 5.998,480. 8. Total (Lines 6 and 7). Enter on Part III-A, Line 1. Columns (a) and (b) 1,272,372. 10,228,449. Average Florida Average Everywhere Part IV. Apportionment of Partners' Share Percent of Property Data Payroll Data Sales Data Partner (Name and Address) Interest In Partnership Within Florida Everywhere Within Florida Everywhere Within Florida Everywhere A. SEE STATEMENT 3 B. C. NOTE: Transfer data to Schedule Ill - A, Florida Form F-1120. 5O1115 2000 R66297 1608 120 EFTA00806526 NEXT MANAGEMENT, LLC 13-3495607 FLORIDA FORM F-1065 SUPPORTING STATEMENTS OTHER ADDITIONS BONUS DEPRECIATION 107,792. TOTAL OTHER ADDITIONS 107,792. OTHER SUBTRACTIONS BONUS DEPRECIATION 66,477. TOTAL OTHER SUBTRACTIONS 66,477. FLORIDA F-1065 PART II DISTRIBUTION OF PARTNERSHIP INCOME ADJUSTMENT AMOUNT ON PERCENT PARTNERS' LINE E OF SHARE OF NAME AND ADDRESS PART I PROFIT LINE E CLAXON INC 218,276. 42.000000 91,676. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 13-3508513 PARTNERSHIP HOLDING CORP. 218,276. 31.000000 67,665. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 13-3501977 THE WILCOR GROUP, INC. 218,276. 27.000000 58,935. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 13-3682060 STATEMENT 1 MUNI31.000 R66297 1608 121 EFTA00806527 NEXT MANAGEMENT, LLC FLORIDA FORM F-1065 SUPPORTING STATEMENTS OTHER TANGIBLE AND INTANGIBLE ASSETS WITHIN FLORIDA TOTAL EVERYWHERE DESCRIPTION BEG. OF YEAR END OF YEAR BEG. OF YEAR END OF YEAR OTHER TANGIBLE ASSETS 117,475. 146,432. 2,174,945. 2,485,837. TOTALS 117,475. 146,432. 2,174,945. 2,485,837. STATEMENT 2 MUNI31A00 R66297 1608 122 EFTA00806528 NEXT MANAGEMENT, LLC 21-3055607 FLORIDA FORM F-2065 SUPPORTING STATEMENTS PART IV APPORTIONMENT '; SHARE PERCENT OF PROPERTY DATA PAYROLL DATA SALES DATA TRANSPORTATION DATA PRTR NAME AND ADDRESS INTEREST FLORIDA EVERYWHERE FLORIDA EVERYWHERE FLORIDA EVE RYWNERE FLORIDA EVERYWHERE 1 CLAXON INC 42.000000 534,196. 4,295,949. 415,019. 4,776,135. 1,009,625. 8,838,212. C/O NEXT MANAGER= LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 2 PARTNERSHIP HOLDING CORP. 31.000000 194,436. 3,170,819. 306,319. 3,525,191. 745,199. 6,523,442. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 3 THE NILCOR GROUP, INC. 27.000000 143,540. 2,761,601. 266,011. 3,070,501. 649,044. 5,681,707. C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 866297 1608 7:15-6.39 STATEMENT 3 123 EFTA00806529 Florida K-1 Equivalent Tax Year beginning _01/01/2015 and ending 12/31/2015 Partner's Identification number 13-3508513 Partnership's Identification number 13- 3495607 Partner's name, address, and Zip code Partnership's name, address, and Zip code CLAXON INC NEXT MANAGEMENT LLC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 15 WATTS STREET 6TH FLOOR 6TH FLOOR NEW YORK, NY 10013 NEW YORK, NY 10013 Distribution of Partnership Income Adjustment Partnership income adjustment 218,276. Partner's percentage of profits 42.000000 Partner's share of adjustments 91,676. Partner's Share of Apportionment Factors Within Florida Everywhere Property Data 534,396. 4,295,949. Payroll Data 415,039. 4,776,335. Sales Data 1,009.625 . 8.838,212 . Transportation 601113LUM R66297 1608 124 EFTA00806530 Florida K-1 Equivalent Tax Year beginning 01/01/2015 and ending 12/31/2015 Partner's Identification number 13-3501977 Partnership's Identification number 13-3495607 Partner's name, address, and Zip code Partnership's name, address, and Zip code PARTNERSHIP HOLDING CORP. NEXT MANAGEMENT LLC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 15 WATTS STREET 6TH FLOOR 6TH FLOOR NEW YORK, NY 10013 NEW YORK, NY 10013 Distribution of Partnership Income Adjustment Partnership income adjustment 218,276. Partner's percentage of profits 31.000000 Partner's share ot adjustments 67,665. Partner's Share of Apportionment Factors Within Florida Everywhere Property Data 394.436. 3.170.819. Payroll Data 306.339. 3.525,391. Sales Data 745,199. 6,523,442. Transportation 601113LUM R66297 1608 125 EFTA00806531 Florida K-1 Equivalent Tax Year beginning 01/01/2015 and ending 12/31/2015 Partner's Identification number 13-3682060 Partnership's Identification number 13-3495607 Partner's name, address, and Zip code Partnership's name, address, and Zip code THE WILCOR GROUP, INC. NEXT MANAGEMENT LLC C/O NEXT MANAGEMENT LLC 15 WATTS STREET 15 WATTS STREET 6TH FLOOR 6TH FLOOR NEW YORK, NY 10013 NEW YORK, NY 10013 Distribution of Partnership Income Adjustment Partnership income adjustment 218,276. Partner's percentage of profits 27.000000 Partner's share ot adjustments 58,935. Partner's Share of Apportionment Factors Within Florida Everywhere Property Data 343,540. 2.761.681. Payroll Data 266,811. 3,070,501. Sales Data 649,044. 5.681,707. Transportation 601113LUM R66297 1608 126 EFTA00806532 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form TR-579-PT 2015 New York State E-File Signature Authorization for IT-204 for the year ended December 31. 2015 The original form should be signed (use full name) and dated by an authorized partner. The signed form should be returned on or before September 15, 2016 via: Email (preferred method) efilpdailherdonllp com Fax 212.699.8832 Mail Berdon LLP Attn: Tax Control 360 Madison Avenue, 6th Floor New York, NY 10017 We must receive your signed Form TR-579-PT before we can electronically transmit your return. DO NOT separately file your tax return with the state. Doing so will delay the processing of your return. The state will notify us when your return is accepted. Your return is not considered filed until the state confirms their acceptance. which may occur after the due date of your return. EFTA00806533 5'0502 I POO rj rNEW YORK New York State E-File Signature Authorization for Tax Year 2015 STATE For Forms IT-204 and IT-204-LL 2015 - Electronic return originator (ERO): do not mail this form to the Tax Department. Keep it for your records. Partnership name NEXT MANAGEMENT, LLC Return type (mark an X to indicate which form you are e-filing): L_. IT-204 IT-204-LL Purpose Both the paid preparer and the ERO are required to sign Part B. Form TR-579-PT must be completed to authorize an ERO to e-file However, if an individual performs as both the paid preparer and Form 1T-204, Partnership Return, or Form IT-204-LL, Partnership, the ERO, he or she is only required to sign as the paid preparer. It is Limited Liability Company, and Limited Liability Partnership Filing not necessary to include the ERO signature in this case. Note that Fee Payment Form. For the purposes of this form, aN three forms of an alternative signature can be used as described in Publication 58, business entities will be referred to hereinafter as a partnership. Information for Income Tax Return Preparers. Go to our website at www.tax.ny.gov to view this document. General Instructions Part A must be completed by an authorized member or general Do not mail Form TR-579-PT to the Tax Department. EROs must partner before the ERO transmits the electronically filed Form IT-204 or keepthis form for three years and present it to the Tax Department IT-204-LL. upon request. EROs must complete Part B prior to transmitting an electronically filed This form is not required for electronically filed Form IT-370-PF, Form IT-204 or IT-204-LL. Application for Automatic Extension of Time to File for Partnerships and Fiduciaries. Financial institution information for Form IT-204-LL filers (must be present if electronic payment is authorized) 1 Amount owed on return 1 2 Financial institution routing number 2 3 Financial institution account number 3 Part A - Declaration of authorized member or general partner and authorizations for Forms IT-204 or IT-204-LL Under penalty of perjury, I declare that I have examined the information on this 2015 New York State electronic partnership return, including any accompanying schedules, attachments, and statements, and certify that this electronic return is true, correct, and complete. The ERO has my consent to send this 2015 New York State electronic partnership return to New York State through the Internal Revenue Service (IRS). I understand that by executing this Form TR-579-PT, I am authorizing the ERO to sign and file this return on behalf of the partnership and agree that the ERO's submission of the partnership's return to the IRS, together with this authorization, will serve as the electronic signature for the return and any authorized payment transaction. If I am paying my New York State partnership fees due by electronic funds withdrawal, I authorize the New York State Tax Department and its designated financial agents to initiate an electronic funds withdrawal from the financial institution account indicated on this 2015 electronic return, and I authorize the financial institution to withdraw the amount from the account. As New York does not support International ACH Transactions (IAT), I attest the source for these funds is within the United States. I understand and agree that I may revoke this authorization for payment only by contacting the Tax Department no later than five (5) business days prior to the payment date. Signature of authorized member or general partner: Date' Print your name and title' FAITH KATES TITLE: PRES OF MEMBER-MGR Part B - Declaration of (ERO) and paid preparer Under penalty of perjury, I declare that the information contained in this 2015 New York State electronic partnership return is the information furnished to me by the partnership. If the partnership furnished me a completed paper 2015 New York State partnership return signed by a paid preparer, I declare that the information contained in the partnership's 2015 New York State electronic partnership tax return is identical to that contained in the paper return. If I am the paid preparer, under penally of perjury I declare that I have examined this 2015 New York State electronic partnership tax return, and, to the best of my knowledge and belief, the return is true, correct, and complete. I have based this declaration on all information avalable to me. ERO's signature: Date' Print name- BERDON LLP Paid preparers signature' Date' Print name- MARC YATKOWSKY TR-579-PT (12/15) 1062 R66297 1608 127 EFTA00806534 Department of Taxation and Financm 503511 1.000 Partnership Return IT-204 For calendar year 2015 and See the instructions, Form IT-2044. or tax year beginning 1st ending F Legal name Employer identification number (EIM NEXT MANAGEMENT LLC 133495607 Trade name of business if deferent from legal name above NYS principal business activity MODEL AGENCY Address (number and sneer or rural route) City. village. or post office NAICS business code number mamma Pub 910) 15 WATTS STREET NEW YORK 812990 State 2IP code Country Principal product or service Date business started NY 10013 UNITED STATES MODELING 01041989 Special conditions for filing your I Section 1 - Partnership information 2015 tax return (see mstr) . . . I I I A Mark an X in the box that applies to your entity Regular partnership 0 Limited liability partnership (LLP) 0 Portfolio investment partnership (see instr.) 0 Other _x. Limited liability company (LLC - including limited liability investment company and a limited liability trust compa B 1) Did the partnership have any income, gain, loss. Of deduction derived from NY sources during the tax year, BI Yes I7LJ No 0 2) If No, enter the number of resident partners B2 C Mark applicable box(es) 0 Change of address 0 Initial return 0 Amended return ❑ Final return (s explane D 1) Is this return the result of federal audit changes? 131 Yes • No If Yes:2) Enter date of final federal determination D2 3) Do you concede the federal audit changes? D3 Yes E Did you file a NYS partnership return for: 11 2013? El Yes Fn. No 71 21 2014? E2 Yes If No, state reason: I F Number of partners 1) Article 22 Fl 2) Article 9-A F2 3 3) Other F3 4) Total F4 3- G Does the partnership currently have tax accounts with NYS for the folowing taxes? 1) Sates and use tax Yes Nou. . . . (1/Yes. enter ID number) 01 133495607 2) Withholding tax Yes IXJ No LJ (flYes. enter ID number) . . 02 1334 ct5607 H Did the partnership have an interest in real property located in NYS during the last three years? H Yes No Has there been a transfer or acquisition of a controlling interest in this entity during the last three years? I Yes No J Did the partnership engage in a like-kind transaction under IRC 1031 during the tax year? J Yes No K Did the partnership sell property during the tax year that had a deterred gain from a previous IRC 1031 or IRC 1033 transaclion, K Yes No L Was there a distribution of property or a transfer of a partnership interest during the tax year? L Yes No M Did the partnership make an election under IRC 754? pA Yes No N Is this partnership under audit by the IRS or has it been audited in a prior year? N Yes No 0 Is this partnership required to file Form DTF-686 or DTF-686-ATT for this filing period, to report a reportable transaction, New York reportable transaction, listed transaction or registered tax shelter?. . 0 Yss No 5]0 If Yes, complete and submit Form(s) DTF-686, DTF-686-ATT, and any applicable federal forms. P Did the partnership make purchases subject to sales and compensating use tax for which NYS tax was not paid? (see Instr) p Yes No Did the partnership have a financial account located in a foreign counhy? (see Instructions) p Yes No Third party Print designee's name Designees phone number Personal identikazion designee? (see instr.) number (PIN) MARC YATKOWSKY 212-832-0400 Yes ric Non Emas: • Paid preparer must complete (seeInstr.) • Date • Sign here • Preparers signature Preparers NYTPAIN Signature 01 general partner Firms name (or yours. d selt-errployed) Preparers PUN or SSN BERDON LLP P00002675 Address Employer Identification number Date Daytime phone number 360 MADISON AVE 130485070 2129255100 NEW YORK, NY 10017 rifcifire l 03 I ex Email: E-mail: 204001151062 Mail your return to: STATE PROCESSING CENTER. PO BOX 4149. BINGHAMTON NY 13902-4149. R66297 1608 128 EFTA00806535 Page 2 of 8 IT-204 (2015) 5O3512 1.000 Section 2 - Federal ordinary business Income (loss) Part 1 - Income from federal Form 1065 1 Gross receipts or sales 20059894 2 Returns and allowances 2 3 Subtract line 2 from line 1 3 20059894 4 Cost of goods sold 4 5 Gross profit (subtract line 4 from line 3) 5 20059894 6 Ordinary income (loss) from other partnerships, estates, and trusts (submit statement) .S.-114T 1 6 248456 7 Net farm profit (loss) (submit federal Form 1040. Schedule F) 7 8 Net gain (loss) from federal Form 4797, Part II. line 17 (submit federalForm 4797) 8 9 Other income (loss) (submit statement) SEE. SIATEMENT. 1. 9 -234496 10 Total income (toss) (combine lines 5 through 9) 10 20073854 Part 2 - Deductions from federal Form 1065 11 Salaries and wages (other than to partners) (less employment credits) 11 11291732 12 Guaranteed payments to partners 12 13 Repairs and maintenance 13 414619 14 Bad debts 14 8131 15 Rent 15 749810 16 Taxes and licenses 16 769540 17 Interest 17 18 Depreciation (if required, submit federal Form 4562) I 181 120998 19 Depreciation reported on federal Form 1125-A and elsewhere on return I 191 20 Subtract line 19 from line 18 20 120998 21 Depletion (do not deduct dl and gas depletion) 21 22 Retirement plans, etc 22 106026 23 Employee benefit programs 23 338804 24 Other deductions (submit statement) SEX. 24 3858292 25 Total deductions (add lines 11 through 17 and lines 20 through 24) 25 17657952 26 Ordinary business income (loss) (subtract line 25 horn line 10) 26 2415902 Section 3 - Cost of goods sold (from federalForm 1125-A; see instructions) 27 Inventory at beginning of year 27 28 Purchases 28 29 Cost of labor 29 30 Additional IRC section 263A costs (submit statement) 30 31 Other costs (submit statement) 31 32 Total (add lines 27 through 31) 32 33 Inventory at end of year 33 34 Cos of goods sold (subtract line 33 from line 32) St 35 Methods used for valuing closing inventory (mar* an X in applicable boxes) cost ❑Lower of cost or market Other (specify method used and explain) 36 Was there a writedown of subnormalgoods/ Yes No 37a Was LIFO inventory method adopted this tax year for any goods? (If Yes. submit federal Form 970) Yes No 37b If the LIFO inventory method was used for this tax year, enter the amount of closing inventory computed under LIFO 37b 38 Do the rules of IRC section 263A (for property produced or acquired for resale) apply to the partnership?. . . . Yes No 39 Was there any change in determining quantities, cost, or valuations between opening and closing inventory? . Yes No If Yes, explain 204002151062 111 R66297 1608 129 EFTA00806536 5O3513 1.000 I7-204 (2015) Page 3 of 8 Section 4 - Balance sheets per books (from federal Form 1065, Schedule L) Assets Beginning of tax year End of tax year (a) (b) (c) (d) 40 Cash 40 4577394 3532783 41 Trade notes and accounts receivable 41 10526765 9290056 42 Less allowances for bad debts 42 100000 10426765 100000 9190056 43 Inventories 43 44 U.S. government obligations 44 45 Tax-exempt securities 45 46 Other current assets (submit statement). ,S,TMT 2. 46 228894 176432 47a Loans to partners (or persons related to partners) 47a 47b Mortgage and real estate loans 47b 48 Other investments (submit statement). ,S,TtIT 2. 48 -214609 83446 49 Buildings and other depreciable assets 49 4116424 4123029 50 Less accumulated depreciation 50 3577355 539069 3396487 726542 51 Depletable assets 51 52 Less accumulated depletion 52 53 Land (net any amortization) 53 54 Intangible assets (amortizable only) 54 55 Less accumulated amortization 55 56 Other assets (submit statement). ,S,-TMT 2 56 2361407 3051607 57 Total assets 57 17918920 16760866 Liabilities and capital Beginning of tax year End of tax year (a) (b) (c) (d) 58 Accounts payable 58 13449263 12182330 59 Mortgages, notes, bonds payable in less than one year 59 60 Other current liabilities (submit statement)Sibir 60 1304038 1786832 61 All nonrecourse loans 61 62a Loans from partners (or persons related to partners) 62a 62b Mortgages. notes. bonds payable in one year or more 62b 63 Other liabilities (submit statement). ,S,TMT 63 1314035 1620133 64 Partners' capital accounts . . 64 1851584 1171571 65 Total liabilities and capital. . 65 17918920 16760866 204003151062 R66297 1608 130 EFTA00806537 Page 4 of 8 I7-204 (2015) 5O3520 1.000 Section 5 — Reconciliation of income (loss) per books with income (loss) per return (From federal Form 1065. Schedule M-1: see instructions. If Schedule M-3 was filed. mark an X in the boxl_xi file Schedule M-3 and any related documents with Form IT-204: skip Section 5 and continue with Section 6.) 66 Net income (loss) per books 66 67 Income included on return not recorded on books this year, from Schedule M-1, line 2 67 Identify: 68 Guaranteed payments (other than health insurance) 68 69 Expenses recorded on books this year not included on return, from Schedule M-1, line 4 . . . 69 Identify: 70 Add lines 66 through 69 71 Income recorded on books this year not included on return, from Schedule M-1, line 6 711 Identify: 72 Deductions included on return not charged against book income this year, from Schedule M-1, line 7 7 WSW 73 Add lines 71 and 72 73 74 Income (loss) (subtract line 73 from tine 70) 74 Section 6 - Analysis of partners' capital accounts (from federal Form 1065, Schedule M-2) 75 Balance at beginning of year 75 1851584 76 Capital contributed - cash 76 77 Capital contributed - property 77 78 Net income (loss) per books 78 2319987 79 Other increases 79 Identify: 80 Add lines 75 through 79 801 41715711 81 Distributions - cash 81 3000000 82 Distributions • property 82 83 Other decreases 83 Identity: 84 Add lines 81. 82, and 83 84 3000000 85 Balance at end of year (subtract line 84 from line 80) 85 1171571 11111IIIIriiiiii2111111111 R66297 1608 131 EFTA00806538 5O352] 1.000 77-204 (2015) Page 5 of 8 Section 7 - Partners' share of income, deductions, etc. (from federalForm 1065, Schedule K) Partners' distributive share items 86 Ordinary business income (loss) 86 2415902 87 Net rental real estate income (loss) (submit federal Form 8825) 87 88a Other gross rental income (loss) 88a 88b Expenses from other rental activities 88b 89 Other net rental income (loss) (subtract line 88b from line 88a) 89 90 Guaranteed payments 90 91 Interest income 91 17910 92 Ordinary dividends 92 93 Royalties 93 94 Net short-term capital gain (loss) (submit federal Schedule pi 94 95 Net long-term capital gain (loss) (submit federal Schedule 0) 95 96 Net section 1231 gain (loss) (submit federalForm 4797) 96 97 Other income (loss) (see instructions) 97 Identify: 98 Section 179 deduction (submit federal Form 4562) 98 191194 99 Other deductions (see instructions) 99 1 03335 Identify: SEE STATEMENT 3 100 This line intentionally left blank 100 101 Net earnings (loss) from self-employment 101 102 Tax-exempt income and nondeductible expenses (seeinstructions) 102 -118554 103 Distributions - cash and marketable securities 103 3000000 104 Distributions - other property 104 105 Other Items not Included above that are required to be reported separately to gannets (see Instr.) 105 1791 0 Identify: SEE STATEMENT 3 Analysis of net income (loss) 106 Enter amount from federal Form 1065, Analysis of Net Income (Loss), line 1 106 2139283 Analysis by type of partner A B C D E F Corporate Individual Individual Partnership Exempt Nominee/other (active) (passive) organization General partners Limited partners 2139283 204005151062 VIIIII II IIVIII II I II III III III R66297 1608 132 EFTA00806539 Page 6 of 8 1T-204 (2015) 6O1522 1.000 Section 8 - New York modifications (see instructions) 107 This line intentionally left blank 108 Total addition modifications (from Forrn17-225. Nne 9) 312745 109 This line intentionally left blank 110 Total subtraction modifications (from Form 1T-225. line 18) 110 66457 111 Additions to federal itemized deductions Letter Amount 111a 111b 111e 111d 111e lilt 112 Total additions to federal itemized deductions (add lines 111a through MO 112 113 Subtractions from federal itemized deductions Letter Amount 113a 113b 113e 113d 113e 113t 114 Total subtractions from federal itemized deductions (add lines 113a through 1131) 114 115 This line intentionally left blank 115 204006151062 III VIII I II I II I III I III VIII III III R66297 1608 133 EFTA00806540 5O3523 1.000 IT-204 (2015) Page 7 of 8 Section 9 - Other information 116a New York source gross income (see instructions) 116a 34186.17 116b MCTD allocation percentage (see instructions) 1166 70.7200 961 116c Total receipts from the sale of goods by manufacturing 1160 116d Adjusted basis of qualified manufacturing property 116d 11Th Did the partnership sell assets subject to IRC 1060? Yes ❑ No El 117b If the partnership filed a group return on behalf of any nonresident partners, enter the special NYS identification number 1176 117c Is this partnership a partner in another partnership or LLC? (if Yes. list the names and ElNs below: submit additional sheets necessary.) Yes No ❑ Name of entity EIN TWO TWELVE MANAGEMENT LLC 201354409 Section 10 - New York allocation schedule Part 1 - List all places, both in and out of NYS, where the partnership carries on business (submit additional sheets )(necessary) Street address City and state Description (see instructions) 15 WATTS STREET NEW YORK, NY OFFICE 1688 MERIDIAN AVE MIAMI BEACH, FL OFFICE 8447 WILSHIRE BLVD BEVERLY HILLS, CA OFFICE 118 Do books and records reflect income earned in New York? (IIYes, do not complete Pan 2.) Yes ❑ No [1) Part 2 - Formula basis allocation of income if books and records do not reflect income earned in New York Items used as factors A Totals - in and out of NYS B - New York State amounts C - Percent col. B Property percentage (see Mat) Dollars Dollars is of col. A 119 Real property owned 119 119 120 Real property rented from others 120 6467368 120 4768832 121 Tangible personal property owned 121 194521 121 168776 122 Property percentage (add;nes 10 120. and 121: see Instr.) 122 6661889 122 4937608 122 74.1172 % 123 Payroll percentage (see instr.) 123 11379227 123 8456522 123 74 3612 % 124 Gross income percentage (seeinstr.) 124 21041361 124 13400728 124 63.6815 % 125 Total of percentages (total column C, lines 122,123, and 124) 125 212.1599 % 126 Business allocation percentage (divide line 125 by three or by actual number of percentages it less than three) 126 70 7200 % Section 11 - Partners' credit information (see instructions) Has the partnership (or an entity of which the partnership is an owner) been convicted of Bribery Involving Public Servants and Related Offenses, Corrupting the Government, or Defrauding the Government (NYS Penal Law Article 200 or 496, or section 195.20)? Yes ❑ No II 204007151062 VIII IIII I VIII I I II I II VIII III III R66297 1608 134 EFTA00806541 Page 8 of 8 1T-204 (2015) 601520 1.000 Section 11 (continued) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Form IT-611. 1T-611.1, arufrot fr611.2) 127 Site preparation credit component 127 128 Tangible property credit component 128 129 On-site groundwater remediation credit component 129 EZ capital tax credit (Form IT-602) 130 This line intentionally left blank 130 131 Recapture of credit for investments in certified EZ businesses 131 132 Recapture of credit for contributions of money to EZ community development projects . . 132 QEZE tax reduction credit (Form ff-604) 133 QEZE employment increase factor 133 134 QEZE zone allocation factor 134 135 QEZE benefit period factor 135 Excelsior jobs program tax credit (Rem 17-607) 136 Excelsior jobs tax credit component 136 137 Excelsior investment tax credit component 137 138 Excelsior research and development tax credit component 138 139 Excelsior real property tax credit component 139 Farmers' school tax credit (Font 17-21'7) 140 Acres of qualified agricultural property 140 141 Acres of qualified conservation property 141 142 Eligible school district property taxes paid 142 143 Acres of qualified agricultural property converted to nonqualified use 143 Other flow-through credit bases and information Credit bases Code Amount Code Amount 144a 144d 144b 144e 144c 144f Credit information Code Information Code Information 1441 144k 1441 Part 2 - fl ow-through credits, addbacks and recaptures 145 Long-term care insurance credit (Form IT-249) 145 146a investment credit (including employment incentive cred' and historic bam reimbeepon mat FormIT-212) . 146a 146b Research and development - investment credit (Form IT-212) 146b 147 Other flow-through credits Code Amount Code Amount 147a 147e 147b 147f 147c 147g 147d 147h 148 Addbacks of credits and recaptures Code Amount Code Amount 148a 148d 148b 148e 148c 148f Part 3 - START-UP NY tax elimination credit information (FormIT-638) 149 START-UP NY business certificate number (Form DTF-74). 149 204008151062 11111 I1111 III III III II III VIII III 150 Year of START-UP NY business tax benefit period 151 START-UP NY area allocation factor 150 151 R66297 1608 135 EFTA00806542 Department of Taxation and Finance 5O3507 2 F i CINEW YORK STATE New York Corporate Partners' Schedule K IT-204.1 Tax Law - Article 9-A 2015 - Partnership's name (as shown on FormIT204) Partnership's EIN NEXT MANAGEMENT. 1LC 133495607 Entire net income (ENI) information when the corporate partner's New York tax filing status Is a C corporation ENI addition modifications I Total additions 1 107792 A- Number B- Amount A- Number 8- Amount Is EA- 507 10779.2_ ld a- lb a- Is a- lc EA- If a - ENI subtraction modifications 2 Total subtractions 2 18912 A- Number 9- Amount A- Number B- Amount 2a ES- 507 18912 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Assets and liabilities (see instructions) Average value 3 Total assets 3 18409058 4 Real property and marketable securities included on line 3 4 439859 5 Real property and marketable securities at fair market value (FMV) 5 439859 6 Average value of adjusted total assets 6 18409058 7 Total liabilities 7 16419604 8 Liabilities directly attributable to business capital 8 9 Liabilities directly attributable to investment capital 9 Items related to Investment capkal under Article 9-A Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Descrption of asset (identity each asset. and enter number of shares el applicable) and date acquired here: for each asset complete columns D through G on the corresponding lines below) Item A- Description of asset B- Number of shares C- Date acquired acquired, II applicable A B C D E F Item D E F G H Number of Date sold Average Liabilities directly Nat average shares sold, if applicable FMV reported attributable FMV A B C D E F Total from additional sheet(s) 10 Total columns F and 0 lip 116001151062 IIIDIIII1II11111011111 IIIIIIII R66297 1608 136 EFTA00806543 Page 2 of 7 IT-204.1 (2015) 603608 2.000 Part 2 - Investment capital - stocks actually held more than one year Description of investment (identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding Hoes below) Item A - Name/CUSINCINS/lot number B • Number ol shares C - Date acquired acquired A B C D E F Item 0 E F G H Number of Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G 11 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and date acquired here: to each investment complete columns F and G on the corresponding lines below) Item A - Name/CUSIP/CINS4ot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(s) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add fines fO. 11. and 12 an colunm Fend G) 13 116002151062 III III I III III III I II I illII VIII III R66297 1608 137 EFTA00806544 5O3514 3.000 IT-204.1 (2015) Page 3 of 7 Part 5 - Prior year Investment capital - stocks that did not meet holding period requirement (see Instructions) Description of investment (Identify each Investment. and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding Noes below) Item A -Name/CUSINCINSilot number B- Number of shares C- Date aoquIred acquired A B C D E F Item 0 E F G H Number of Date sold Average FMV Liabilit es directly attributable Net average shares sold as previously reported as previously reported FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Items related to Investment and other exempt Income under Article 9-A 16 Gross exempt cross-article dividends 16 17 Gross exempt controlled foreign corporation (CFC) income 17 18 Gross exempt unitary corporation dividends 18_ 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 19 20 Dividend income from investment capital from stocks actually held more than one year 20 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 21 22 Dividend income from investment capital from stocks presumed heir' more than one year 22 Items related to interest deductions directly attributable to Investment and other exempt income under Article 9-A 23 Total interest expense per federal Form 1065, line 15 23 24 Interest deductions directly attributable to income reported on line 16 24 25 Interest deductions directly attributable to income reported on line 17 25 26 Interest deductions directly attributable to income reported on line 18 26 27 Interest deductions directly attributable to income reported on line 19 27 28 Interest deductions directly attributable to income reported on line 20 28 29 Interest deductions directly attributable to income reported on line 21 29 30 Interest deductions directly attributable to income reported on line 22 30 31 Interest deductions directly attributable to business capital III 111 R66297 1608 138 EFTA00806545 Page 4 of 7 IT-204.1 (2015) 5O351S 3.000 Items related to subtraction modifications for qualified banks 32 Qualified residential loan portfoio assets 32 33 Gross interest income from qualifying loans 33 33a Gross interest income from al loans 33a 33b Gross interest expense from al loans 33b Items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34 34a Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 34a 35 Adjusted basis of qualified manufacturing property 35 36 Number of employees employed in manufacturing in New York 36 Apportionment and Metropolitan Commuter Transportation District (MCTD) information Apportionment - Part 1 1 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (mark an X In rho apprcprlate box) Yes a No ❑ 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in the MCTD? (mark an X in the appropriate box) Yes No ❑ Average value of property A B (see instructions for Apportionment - Part 1, lines 3 through 7) MCTD New York State 3 Real estate owned 3 4 Real estate rented 4 4763784 4768832 5 Inventories owned 5 6 Tangible personal property owned 6 168776 168776 7 Tangible personal property rented 7 Apportionment - Part 2 A B C Receipts from: (see instructions for Apportionment MCTD New York State Everywhere Part 2, lines 1 through 52a) Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property , , , , 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-44(a)(2)(4) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property , 11 12 Net gains from sales of loans not secured by real property n 12 116004151062 R66297 1608 139 EFTA00806546 I7-204.1 (2015) Page 5 of 7 103618 2.000 A B Receipts from: (continued) MOTO New York State Everywhere Section 210-A.5(a)(2)(B) U 13 Interest from federal debt 13 14 Net gains from federal debt 14 15 Interest from NYS and its political subdivisions debt 15 16 Net gains from NYS and its political subdivisions debt 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) ❑ 19 Interest from asset-backed securities and other government agency debt 19 20 Net gains from government agency debt or asset-backed securities sold through an exchange 20 21 Net gains from all other asset-backed securities . . 21 Section 210-A.5(a)(2)(D) ❑ 22 Interest from corporate bonds 22 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements 25 Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 26 Section 210-A.5(a)(2)(I) ❑ 27 Net income from sales of physical commodities . . 27 Section 210-A.5(a)(2)(J) ❑ 28 Marked to market net ains 28 Section 210-A.5(a)(2)(H) u 29 Interest from other financial instruments 29 30 Net gains from other financial instruments 30 30a Net gains from other financial instruments (broker/deafer/exchange) 30a 30b Other income from other financial investments. . 30b 30c Other income from other financial investments (broker/deater/exchange) 30c Section 210-A.5(b) 31 Brokerage commissions 31 32 Margin interest earned on behalf of brokerage accounts 32 33 Fees for advisory services for underwriting or management of underwriting 33 34 Receipts from primary spread of selling concessions 34 35 Receipts from account maintenance fees 35 36 Fees for management or advisory services 36 37 Interest from an affiliated corporation 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards. . . 38 39 Service charges and fees from credit cards 39 40 Receipts from merchant discounts 40 41 Receipts from credit card authorizations and settlement processing 41 42 Other credit card processing receipts 42 116005151062 IIIIII I II II I II III III VIII III III R66297 1608 140 EFTA00806547 Page 6 of 7 IT-204.1 (2015) 5O3517 3.000 A B Receipts from: (continued) MCTD New York State Everywhere Section 210-A.5(d) 43 Remain from certain services to Investment companies 43 Section 210-A.6 44 Receipts from railroad and trucking business . . . . 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Section 210-A.7 46 Receipts from air freight forwarding 46 47 Receipts from other aviation services 47 Section 210-A.8 48 Advertising in newspapers or periodicals 48 49 Advertising on television or radio St 50 Advertising via other means 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52 13400728 13400728 21043360 52a Receipts from other services/activities not specified 52a Payroll A MCTD B New York State 53 Wages andother compensationof employeesexcept general executive officers 53 8456522 8456522 54 Average number of individuals employed full-time in New York State (excluding employees with partnershinelde authority) 54 51 Gross proceeds or receipts from certain sales A B C (for apportionment purposes) MCTD New York State Everywhere 55 Sales of loans secured by real property _55. 56 Sales of loans not secured by real property 56 57 Sales of other asset-backed securities 57 58 Sales of corporate bonds 58 59 Sales of physical commodities 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 60 61 Of loans not secured by real property 61 62 Of federal debt instruments 62 63 Of New York State and its political subdivisions debt instruments 63 64 Of other states and their political subdivisions debt instruments 64 65 Of government agency debt or asset-backed securities (through exchange) 65 66 Of all other asset-backed securities 66 67 Of corporate bonds through licensed exchange or broker/dealer 67 68 Of other corporate bonds 68 69 Of physical commodities 69 70 Of other financial instruments 20 III III111 R66297 1608 141 EFTA00806548 I7-204.1 (2015) Page 7 of 7 5035112.000 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 71 72 Value of borrowing agreements when partnership is securities borrower 72 73 Value of repurchase agreements when partnership is seller/borrower 73 74 Value of lending agreements when partnership is securities lender 74 75 Interest income from reverse repurchase agreements and securities borrowing agreements 75 76 Interest expense from repurchase agreements and securities lending agreements 76 116007151062 IIIIII I VIII II I II III I VIII III III R66297 1608 142 EFTA00806549 Department of Taxalion and Finance 5Y3510 3.000 YORK New York State Modifications IT-225 Attachment to Form IT-201, IT-203, IT-204, or IT-205 2015 Name(s) as shown on return Identifying number as gown on return NEXT MANAGEMENT, LLC 133495607 Complete all parts that apply to you; see Instructions (Form IT-225-I). Submit this form with Form IT-201, IT-203,11'204, or IT-205. Mark an X in the box identifying the return you are filing: IT-201 ❑ IT-203 ❑ IT-204 jd IT-205O Schedule A — New York State additions (enter whole dollars only) Part 1 — Individuals, partnerships, and estates or trusts 1 New York State additions Number A - Total amount B - NYS alocated amount la A- 201 153191 00 108337 00 lb A- 209 107792 00 76231 00 1c A- 214 27192 00 19230 00 Id A- 00 00 le A- 00 00 If A- 00 00 to A- 00 00 2 Total (add column A roes la through rot 2 288175 00 3 Total of Schedule A Pan 1, column A amounts from additional Form(s) IT-225, if any 3 00 4 Add lines 2 and 3 4 288175 00 Part 2 — Partners, shareholders, and beneficiaries Form IT-201 filers: do not enter EA-103 or EA-113 Form IT-203 filers: do not enter EA-113 LU Form IT-205 filers: do not enter EA-113 or EA-201 5 New York State additions Number A - Total amount B - NYS alocated amount 5a EA- 201 24570 00 10800 00 5b a- 00 00 5c a- 00 00 5d a- 00 00 5e a- 00 00 5f a- 00 00 EA - 0_0 00 6 Total (add column A, 'nes 5a through 5g) 6 24570 00 7 Total of Schedule A Pan 2, column A amounts from additional Form(s) IT-225. if any . . . 7 00 8 Add lines 6 and 7 8 24570 00 9 Total additions (add lines 4 and 8: see instructions) 9 312745 00 (continued) 225001151062 R66297 1608 143 EFTA00806550 IT-M (2015) (back) SY3511 3.000 Schedule B - New York State subtractions (enter whole dollars only) Part 1 - Individuals, partnerships, and estates or trusts 10 New York State subtractions Number A • Tots amount 8 - NYS allocated amount 10a S- 213 59977 00 42416 00 10b 5- 00 00 10c 5- 00 00 10d S 00 00 10e S 00 00 10f S- 00 00 S- 0Q 00 11 Total (add column A. lines 10a through 10g) 11 59977 00 12 Total of Schedule B, Part 1, column A amounts from additional Form(s) FT-225, if any 12 00 13 Add lines 11 and 12 13 59977 00 Part 2 - Partners, shareholders, and beneficiaries Form IT-201 filers: do not enter ES-103, ES-104, ES-106, ES-107, or ES-125 Form IT-203 filers: do not enter ES-106, ES-107, or ES-125 Form IT-205 filers: do not enter ES-125 14 New York State subtractions Number A - Total amount 8 • NYS allocated amount 14a ES- 213 6480 00 4583 00 14b ES - 00 00 14c ES - 00 00 14d ES- 00 00 14e ES- 00 00 14f ES - 00 00 41 a ES - 00 00 15 Total (add column A. lines 14a through 14g) 15 6480 00 16 Total of Schedule B, Part 2, column A amounts from additional Form(s) FT-225, if any 16 00 17 Add lines 15 and 16 17 6480 00 18 Total subtractions (add lines 13 and 17: see instructions) 18 66457 00 225002151062 R66297 1608 144 EFTA00806551 •.O Y,BG 2 CO) NEW YORK Department of Taxation and Finance New York State Depreciation Schedule for IT-398 STATE 2015 IRC Section 168(k) Property Use this to= only for tax years beginning alter December 31, 2002, and only for property placed in service inside or outside New York State alter May 31, 2003. NameN) as shown on return Identifying number as shown an return NEXT MANAGEMENT. LLC 1334 Q5607 Mark an Xin one box to show the income tax return you are filing and submit this form with that return. IT-201, Resident 0 IT-203, Nonresident and part-year resident u IT-204. Partnership ki IT-205, Fiduciary 0 Part 1 - Depreciation information for Internal Revenue Code (IRC) section 168(k) property (except for resurgence zone property and New York liberty zone property described in IRC section 14001(b)(2)) placed in service inside or outside New York State, beginning after May 31, 2003 (see instructions) A B C D E F G Description of property Date placed Depreciable Convention Method New York Federal depreciation (use addidonal sheet it needed) in service basis depreciation deduction deduction SEE ATTACHED DEPR SCH .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 1 Enter column F and column G totals 1 59977.00 107792 .00 Transfer the column F total to: Transfer the column G total to: Form IT-225. line 10, Total amount column and enter Form IT-225, Nne 1, Totalamount column and enter subtraction modification S-213 In the Number column. addition modification ,4409 in the Number column. Part 2 - Year-of-disposition adjustment for IRC section 168(k) property (except for resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2)) placed in service inside or outside New York State. beginning after May 31, 2003 (see instructions) Mark an X in the box if you claimed an investment credit on Form 11-212, Investment Credit, for any property listed below (see instructions) ❑ A B C D E Description of property Date of Method of Total New York Total federal (use additional sheet it needed) disposition disposition depreciation deduction depreciation deduction .00 .00 .00 .00 .00 .00 .00 .00 2 Enter column D and column E totals 2 .00 .00 3 Enter amount from line 2, column E 3 .00 4 Enter amount from line 2, column D 4 .00 S Subtract line 4 from line 3 5 .00 Transfer the line 5 amount to Form IT-225. line 10, Total amount column and enter subtraction modification S-214 in the Number column. 398001151002 R66297 1608 145 EFTA00806552 NEXT MANAGEMENT, LLC 13-3495607 IT-204, PAGE 2 SUPPORTING SCHEDULE LINE 6 - ORDINARY INCOME FROM OTHER PTNRSHPS AND FIDUCIARIES FROM TWO TWELVE MANAGEMENT, LLC 248456 TOTAL ORDINARY INCOME FROM OTHER PTNRSHPS AND FIDUCIARIES 248456 LINE 9 - OTHER INCOME FOREIGN EXCHANGE LOSS -234496 TOTAL OTHER INCOME -234496 LINE 24 - OTHER DEDUCTIONS AMORTIZATION 200614 TRAVEL & ENTERTAINMENT EXPENSE 90792 INSURANCE EXPENSE 112776 OFFICE SUPPLIES AND EXPENSES 105286 PRINTING EXPENSE 43338 SCOUTING EXPENSE 9354 COMPUTER EXPENSE 108201 CLEANING SERVICE 40953 UTILITIES 34652 POSTAGE 11389 MISCELLANEOUS 104822 BANK CHARGES 57683 PUBLICATIONS & SUBSCRIPTIONS 12677 TRAVEL 803503 ADVERTISING AND PROMOTION 259861 COMMISSIONS EXPENSE 2002456 PROFESSIONAL FEES 240861 TELEPHONE EXPENSE 214004 CONSULTING FEES 640280 CONTEST EXPENSE 5550 PAYROLL PROCESSING EXPENSE 14299 OVERHEAD REIMBURSEMENT -1470551 MISCELLANEOUS MODEL EXPENSES 55856 PROMOTIONAL MODEL EXPENSES 100004 LITIGATION SETTLEMENT 45632 CALIFORNIA LLC FEE 6000 NYS LLC FEE 3000 ORGANIZATION COSTS 5000 TOTAL OTHER DEDUCTIONS 3858292 STATEMENT 1 MUNI31A00 R66297 1608 146 EFTA00806553 NEXT MANAGEMENT, LLC 13-3495607 IT-204, PAGE 3 SUPPORTING SCHEDULE LINE 46 - OTHER CURRENT ASSETS BEGINNING ENDING PREPAID EXPENSES 213894 159432 DEFERRED TAX ASSET- CURRENT 15000 17000 TOTAL OTHER CURRENT ASSETS 228894 176432 LINE 48 - OTHER INVESTMENTS BEGINNING ENDING INVESTMENT IN TWO TWELVE -214609 83446 TOTAL OTHER INVESTMENTS -214609 83446 LINE 56 - OTHER ASSETS BEGINNING ENDING DEPOSITS 29606 43931 RESTRICTED CASH 40000 40000 DUE FROM AFFILIATES 774693 1313624 DUE FROM MODELS 1464108 1607052 DEFERRED TAX BENEFIT-LONG TERM 53000 47000 TOTAL OTHER ASSETS 2361407 3051607 LINE 60 - OTHER CURRENT LIABILITIES BEGINNING ENDING ACCRUED EXPENSES 1304038 1786832 TOTAL OTHER CURRENT LIABILITIES 1304038 1786832 LINE 63 - OTHER LIABILITIES BEGINNING ENDING ADVANCES FROM AFFILIATES 21519 8342 DUE TO RELATED PARTY 1223293 1476782 DEFERRED RENT-LONG TERM 69223 135009 TOTAL OTHER LIABILITIES 1314035 1620133 STATEMENT 2 MUNI31A00 R66297 1608 147 EFTA00806554 NEXT MANAGEMENT, LLC 13-3495607 IT 204, PAGE 5 SUPPORTING SCHEDULES PARTNERS' DISTRIBUTIVE SHARE ITEMS LINE 99 - OTHER DEDUCTIONS CASH CHARITABLE CONTRIBUTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 103335 TOTAL CASH CONTRIBUTIONS 103335 TOTAL OTHER DEDUCTIONS 103335 LINE 105 - OTHER ITEMS INVESTMENT INCOME 17910 TOTAL OTHER ITEMS 17910 STATEMENT 3 MUNI31A00 R66297 1608 148 EFTA00806555 NEXT MANAGEMENT, LLC 13-3495607 IT-204, PAGE 7 SUPPORTING SCHEDULE NEW YORK SOURCE GROSS INCOME WORKSHEET A MODIFIED NEW YORK SOURCE ENTER CURRENT YEAR AMOUNTS FED. GROSS INC. GROSS INCOME AMOUNT FROM FEDERAL FORM 1065, LINE 1C 20,059,894. 12,417,261. AMOUNT FROM FEDERAL FORM 1065, SCH K, LINE 5 17,910. 17,910. NY SOURCE INCOME FROM LOWER TIERED PARTNERSHIPS 983,466. TOTAL 13,418,637. STATEMENT 4 MUNI31.000 R66297 1608 149 EFTA00806556 NEXT MANAGEMENT, LLC 13-3495607 NEW YORK IT-398, PAGE 1, SUPPORTING SCHEDULES DESCRIPTION OF DATE DEPRECIABLE RECOVERY NEW YORK FEDERAL DEPR. PROPERTY ACQUIRED BASIS PERIOD CONVEN METHOD DEPRECIATION DEDUCTION LEASEHOLD IMPRO-NY 06/22/2003 103,492. 39.000 MM M39 2,654. 1,327. LEASEHOLD IMPRO-NY 07/24/2003 26,080. 39.000 MM M39 669. 334. LEASEHOLD IMPRO-NY 08/12/2003 17,758. 39.000 MM M39 455. 228. LEASEHOLD IMPRO-NY 09/18/2003 128,435. 39.000 MM M39 3,293. 1,647. LEASEHOLD IMPRO-NY 10/28/2003 16,767. 39.000 MM M39 430. 215. LEASEHOLD IMPRO-NY 11/19/2003 41,981. 39.000 MM M39 1,076. 538. LEASEHOLD IMPROVE-NY 01/16/2004 5,649. MM M39 145. 72. LEASEHOLD IMPROVE-NY 02/17/2004 7,686. MM M39 197. 99. LEASEHOLD IMPROVE-NY 12/31/2004 25,000. 15.000 HY M3 1,665. 833. LEASEHOLD IMP-NY 02/12/2008 11,736. MQ M15 782. 391. LEASEHOLD IMP-NY 12/19/2008 16,000. MQ M15 1,066. 533. SOFTWARE 01/22/2015 155,603. 3.000 CS 47,545. 101,575. TOTAL DEPRECIATION 59,977. 107,792. STATEMENT 5 5XX063 LOCO R66297 1608 150 EFTA00806557 Department of Taxation and Finance IT-204-CP 5O3501 2000 New York Corporate Partner's 4 4al ia Schedule K-1 2015 Tax Law - Article 9-A Final K4 For calendar year 2015 or tax year beginning 151 and ending Amended K4 Parinere: Before completing your franchise tax return, see Form IT-204-CP-I, Partner's Instructions for Form IT-204-CP (available at ownicbmny.goty. Partnership's Information Partnership's name (as shown on Form IT-204) Partnership's EIN ❑ NEXT MANAGEMENT. LLC 133495607 A Mark an X in the box if either applies to your entity ❑ Publicly traded partnership Portfolio investment partnership B Tax shelter registration number, if any Partner's Information (see instructions) Partner's name Partners EIN CLAXON INC 133508513 Partner's address 15 WATTS STREET City State ZIP code NEW YORK NY 10013 C The partner is a (marks', X in me sppwpaare box) Lxl General partner or LLC member-manager U Limited partner or other LLC member D What is the New York tax filing status of the partner? (Mark an X in the appropriate box. known.) C corporation ❑ S corporation E If the partner is a disregarded entity, enter the EIN of the entity reporting the income of the partner (if known) F Did the partner sell its entire interest during the tax year? F Yes ❑ No El G Partner's share of profit. loss. and capital Beginning Ending 1) Profit G1 42.0000 % 42.0000 % 2) Loss G2 42.0000 % 42.0000 % 3) Capital G3 42,0000 % 42.0000 %i H Partner's share of liabilities at the end of the year 1) Nonrecourse H1 6137989 2) Qualified nonrecourse financing H2 3) Recourse 113 623752 1 Partner's capital account analysis 1) Beginning capital account 11 777664 2) Capital contributed during the year - cash 12 3) Capital contributed during the year - property 13 4) Current year increase (decrease) 14 974394 5) Withdrawals and distributions - cash 15 1260000 6) Withdrawals and distributions - property 16 7) Ending capital account 17 492058 8) Method of accounting (mark an X in the appropriate box) Tax basis GAAP n Book n Other (submit explanation) 117001151062 IIIIIIIII1I~I11111111111 IIIIII11 R66297 1608 151 EFTA00806558 Page 2 of 11 rr-204-CP (2015) 5O3502 2.000 J Was Form CT-2658-E filed with the partnership" J Yes ❑ No K NYS estimated tax paid on behalf of partner (from Form CT-2658) Date Amount 1) First installment K1 2) Second installment K2 3) Third installment K3 4) Fourth installment K4 Total NYS estimated tax paid on behalf of partner (add linos K1 through K4) Partner's share of entire net Income (ENI) information when the corporate partner's New York tax filing status is a C corporation ENI addition modifications 1 Total additions 45273 A - Number B- Amount A- Number B- Amount 1a EA -507 45273 Id EA- 1b EA- 1e a- lc EA- 11 a - ENI subtraction modifications 2 Total subtractions 2 7943 A - Number B- Amount A- Number B- Amount 2a ES-507 7943 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Partner's proportionate part of assets and liabilities (for New York C corporate partners only) Average value 3 Total assets 3 7731804 4 Real property and marketable securities included on line 3 4 184741 5 Real property and marketable securities at fair market value (FMV) 5 184741 6 Average value of adjusted total assets 6 7731804 7 Total liabilities 7 6896234 8 Liabilities directly attributable to business capital 8 9 Liabilities directly attributable to investment capital 9 117002151062 R66297 1608 152 EFTA00806559 5O35D3 2.000 IT-204-CP (2015) Page 3 of 11 Partner's proportionate pad of items related to investment capital under Article 9-A (for New York C corporate partners only) Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Description of asset (Identify each asset, and enter number of shares (ilapplicable) and date acquired here: for each asset complete Call716S D through G on the corresponding lines below) Item A • Description of asset 8 - Number of shares C - Date acquired acquired. if applicable A B C D E F Item D E F G H Number ol Date sold Average Liabilities directly Net average shares sold, if applicable FMV reported attributable FMV A B C D E F Total from additional sheet(s) 10 Total columns F and G 1 10 Part 2 - Investment capital - stocks actually held more than one year Description of investment (Identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding lines below) Item A - NamefCU$IPfCINSllot number 8 - Number of shares C - Date acquired acquired A B C D E F Item D E F G H Number ol Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G I 11 117003151062 111 R66297 1608 153 EFTA00806560 Page 4 of 11 IT-204-CP (2015) 503504 3.000 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and dale acquired here: for each investment complete columns F and G on the corresponding lines below) Item A - NameICU$IPICINSIIot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(S) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add tines TO. 21. and 12 LO columns Fend0) 13 Part 5 - Prior year investment capital - stocks that did not meet holding period requirement Description of investment (identify each investment. and enter number of shares and date acquired here: tor each investment complete columns D through G on the corresponding lines below) Item A - NamelCU$IPICINSIIot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average FMV Liabilities directly attributable Net average shares sold as previously reported as previously reported FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 III ifirlIII111 R66297 1608 154 EFTA00806561 103106 3.000 IT-204-CP (2015) Page 5 of 11 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Partner's share of items related to investment and other exempt income under Article 9-A (for New York C corporate partners only) 16 Gross exempt cross•article dividends 16 17 Gross exempt controlled foreign corporation (CFC) income 17 18 Gross exempt unitary corporation dividends 18 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 19 20 Dividend income from investment capital from stocks actually held more than one year -2Q 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 21 22 Dividend income from investment capital from stocks presumed held more than one year 22 Partner's share of items related to interest deductions directly attributable to investment and other exempt income under Article 9-A (for New York C corporate partners only) 23 Interest expense per federal Form 1065, line 15 23 24 Interest deductions directly attributable to income reported on line 16 24 25 Interest deductions directly attributable to income reported on line 17 25 26 Interest deductions directly attributable to income reported on line 18 26 27 Interest deductions directly attributable to income reported on line 19 27 28 Interest deductions directly attributable to income reported on line 20 28, 29 Interest deductions directly attributable to income reported on line 21 29, 30 Interest deductions directly attributable to income reported on line 22 30 31 Interest deductions directly attributable to business capital 31 Partner's share and proportionate part of items related to subtraction modification for qualified banks 32 Qualified residential loan portfolio assets 32 33 Gross interest income from qualifying loans 33 33a Gross interest income from all loans 33b Gross interest expense from all loans 3b III 111 R66297 1608 155 EFTA00806562 Page 6 of 11 IT-204-CP (2015) 5O3506 2.000 Partner's share and proportionate part of items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34 343 Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 34a 35 Adjusted basis of qualified manufacturing property 35 35a Number of employees employed in manufacturing in New York 35a Partner's share of New York modifications (for New York S corporate partners only) 36 New York State additions Number A— Total amount 36a E A- 36b E A- 36c EA- 36d EA- 36e EA- 36f EA - 37 Total addition modifications (total of column A, lines 36a through 360 37 38 New York State subtractions Number A — Total amount 38a E S- 36b E S- 38c E S- 36d E S- 38e E S- 38f E S- 39 Total subtraction modifications (total of column A, lines 38a through 381) 39 1 40 Additions to federal itemized deductions Letter Amount 40a 40b 40c 40d 40e 401 41 Total additions to federal itemized deductions (add lines 40a through 400 41 42 Subtractions from federal itemized deductions Letter Amount 42a 42b 42c 42d 42e 42f 43 Total subtractions from federal itemized deductions (add lines 42a through 420 L31 117006151062 IIImo R66297 1608 156 EFTA00806563 503550 2.000 IT-204-CP (2015) Page 7 of 11 Partner's share of Income, deductions, etc. (from federal Form 1065, Schedule K-1) Partner's distributive share items 44 Ordinary business income (loss) 44 1014678 45 Net rental real estate income (loss) 45 46 Other net rental income (foss) 46 47 ivaranteed payments 47 48 iterest income 48 7 522 49 Ordinary dividends 49 50 Royalties 50 51 Net short-term capital gain (loss) 51 52 Net long-term capital gain (loss) 52 53 Net section 1231 gain (loss) 53 54 Other income (loss) 54 Identify: 55 Saction 179 deduction 55 80301 56 Thar deductions (see instructions) 56 43401 Wont* SEE STATEMENT 1 57 Tax-exempt income and nondeductible expenses (see Instructions) 57 -4 9793 58 Distributions - cash and marketable securities 58 1260000 59 D'stributions - other property 59 60 Other items not included above that are required to be reported separately to partners 60 7 522 Identity: SEE STATEMENT 1 Partner's credit information (see instructions) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Fenn CT61t. Form CT.6 Mt. or Form CT-6112L_ A — Form CT411 B — Form CT-611.1 C - Form CT4112 61 Site preparation credit component 61 62 Tangible property credit component 62 63 On-site groundwater remediation credit component 63 EZ capital tax credit (Form CT-602) 64 Recapture of credit for investments in certified EZ businesses [64 65 Recapture of credit for contributions of money to EZ community development projects 65 QEZE tax reduction credit (Form CT-604-CP) 66 QEZE employment increase factor 67 QEZE zone allocation factor 67 6 68 QEZE benefit period factor 68 Excelsior jobs program tax credit (Form CT-607) 69 Excelsior jobs tax credit component 69 70 Excelsior investment tax credit component 70 71 Excelsior research and development tax credit component 71 72 Excelsior real property tax credit component III i ifirIIII111 R66297 1608 157 EFTA00806564 Page 8 of 11 rr-204-CP (2015) 5O355] 2.000 Partner's credit information (continued) Farmers' school tax credit (Form CT-47) 73 Acres of qualified agricultural property 73 74 Acres of qualified conservation properly 74 75 Eligible school district property taxes paid 75 76 Acres of qualified agricultural property converted to nongualified use 76 Other flow-through credit bases and Information Credit bases Code Amount Code Amount 77a 77d 77b 77e 77c 77f Credit information Code Information Code Information 77j EMI 77k 771 Part 2 Flow-through credits, addbacks, and recaptures 78 Flow-through credits Code Amount Code Amount 78a 78e 78b 78f 78c 78g 78d 78h 79 Addbacks of credits and recaptures Code Amount Code Amount 79a 79d 79b 79e 79c 79f Part 3 START-UP NY tax elimination credit information (Form CT-638) 80 START-UP NY business certificate number (Form DIF-74) 80 81 Year of START-UP NY business tax benefit period 81 82 START-UP NY area allocation factor 82 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information Part 1 I During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (math an X in the appropriate box) . . . Yes Gi No ❑ 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity. in the MCTD? (mark an X in the appropriate box) Yes No ❑ 117008151062 III IIII III I I III II II VIII I III III II R66297 1608 158 EFTA00806565 5O3552 3.000 IT-204-CP (2015) Page 9 of 11 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information (continued) Part 1 A B Average value of property MCTD New York State 3 Real estate owned 3 4 Real estate rented 4 2000789 2002909 5 Inventories owned 5 6 Tangible personal property owned 6 70886 70886 7 Tangible personal property rented 7 Part 2 A B C Receipts from: MCTD New York Slate Everywhere Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property . . . 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-A.5(a)(2)(A) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property D 11 12 Net gains from sales of loans not secured by real property ❑ 12 Section 210-A.5(a)(2)(B) ❑ 13 Interest from federal debt 13 14 Net gains from federal debt 14 15 Interest from NYS and Its political subdivisions debt . . . . 15 16 Net gains from NYS and Its political subdivisions deb' . . 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) ❑ 19 Interest from asset-backed securities and other government agency debt 19 20 Net gains from government agency debt or asset-backed securities sold through an exchange , 20 21 Net gains from all other asset-backed securities . . . 21 Section 210-A.5(a)(2)(D) ❑ 22 Interest from corporate bonds 22 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 117009151062 R66297 1608 159 EFTA00806566 Page 10 of 11 IT-204-CP (2015) 5O3553 3.000 A B Receipts from: (continued) MOTO New York State Everywhere Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements 25 Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 26 Section 210-A.5(a)(2)(1) 27 Net income from sales of physical commodities . . . 27 Section 210-A.5(a)(2)(J) n 28 Marked to market net gains 28 Section 210-A.5(a)(2)(H) 29 Interest from other financial instruments 29 30 Net gains from other financial instruments 30 30a Net gains from other financial instruments (broker/dealer/exchange) 30a 30b Other income from other financial instruments. . . 30b 30c Other income from other financial instruments (broker/dealer/exchange) 30c Section 210-A.5(b) 31 Brokerage commissions 31 32 Margin interest earned on behalf of brokerage accounts • • 32 33 Fees for advisory services for underwriting or management of underwriting 33 34 Receipts from primary spread of selling concessions 34 35 Receipts from account maintenance fees 35 36 Fees for management or advisory services 36 37 Interest from an affiliated corporation 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards . . . 38 39 Service charges and fees from credit cards 39 40 Receipts from merchant discounts 40 41 Receipts from credit card authorizations and settlement processing 41 42 Other credit card processing recepts 42 Section 210-A.5(d) 43 Receipts from certain services to Investment companies • • 43 Section 210-A.6 44 Receipts from railroad and trucking business 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Secton 210-A.7 46 Receipts from air freight forwarding 46 47 Receipts from other aviation services 47 Section 210-A.8 48 Advertising in newspapers or periodicals 48 49 Advertising on television or radio 49 50 Advertising via other means 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52 5628306 5628306 8838211 52a Receipts from other services/activities not specified 52a 117010151002 III11111 R66297 1608 160 EFTA00806567 503554 3.000 IT-204-CP (2015) Page 11 of 11 Payroll A B MCTD New York State 53 Wages and other compensation of employees except general executive officers 53 3551739 3551739 54 Average number of individuals employed lull time in New York State (excluding employees with partnership-wide authority) 54 21 Gross proceeds or receipts from certain sales A B C (for apportionment purposes) MCTD New York State Everywhere 55 Sales of loans secured by real property 55 56 Sales of loans not secured by real property 56 57 Sales of other asset-backed securities 57 58 Sales of corporate bonds 58 59 Sales of physical commodities 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 60 61 Of loans not secured by real property 61 62 Of federal debt instruments 62 63 Of New York State and its political subdivisions debt instruments 63 64 Of other states and their political subdivisions debt instruments. 64 65 Of government agency debt or asset-backed securities (through exchange) 65 66 Of all other asset-backed securities 66 67 Of corporate bonds through licensed exchange or broker/dealer 67 68 Of other corporate bonds 68 69 Of physical commodities 69 70 Of other financial instruments 70 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 71 72 Value of borrowing agreements when partnership is securities borrower 72 73 Value of repurchase agreements when partnership is seller/borrower 73, 74 Value of lending agreements when partnership is securities lender 74 75 Interest income from reverse repurchase agreements and securities borrowing agreements 75, 76 Interest expense from repurchase agreements and securities lending agreements 76 117011151062 IIIIIIIIIi III II I II II I VIII III III R66297 1608 161 EFTA00806568 NEXT MANAGEMENT, LLC 13-3495607 IT 204-CP, PAGE 7 SUPPORTING SCHEDULES PARTNER'S SHARE OF INCOME, DEDUCTIONS, ETC FEDERAL LINE 56 - OTHER DEDUCTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 43401 TOTAL OTHER DEDUCTIONS 43401 FEDERAL LINE 60 - OTHER ITEMS INVESTMENT INCOME 7522 TOTAL OTHER ITEMS 7522 STATEMENT 1 MUNI31A00 R66297 1608 162 EFTA00806569 Department of Taxation and Finance IT-204-CP 5O3501 2000 New York Corporate Partner's 2015 ATE Schedule K-1 Tax Law - Article 9-A Final K-1 For calendar year 2015 or tax year beginning 151 and ending Amended K-1 Partnere: Before completing your franchise tax return, see Form IT-204-CP-I. Partner's Instructions for Form IT-204-CP (available at monabutsy.gov). Partnership's Information Partnership's name (as shown on Form IT-204) Partnership's EIN NEXT MANAGEMENT. LLC 133495607 A Mark an X in the box if either applies to your entity Publicly traded partnership Portfolio investment partnership B Tax shelter registration number, if any Partner's Information (see instructions) Partner's name Partners EIN PARTNERSHIP HOLDING CORP 133501977 Partner's address 15 WATTS STREET City State ZIP code NEW YORK NY 10013 C The partner is a (marks', X in me ippropnare box) Lxl General partner or LLC member-manager U Limited partner or other LLC member D What is the New York tax filing status of the partner? (Mark an X in the appropriate box. known.) ❑ C corporation E S corporation E If the partner is a disregarded entity, enter the EIN of the entity reporting the income of the partner (if known) F Did the partner sell its entire interest during the tax year? F Yes ❑ No El G Partner's share of profit, loss, and capital Beginning Ending 1) Profit G1 31.0000 % 31.0000 % 2) Loss G2 31.0000 % 31.0000 % 3) Capital G3 31.0000 % 31.0000 % H Partner's share of liabilities at the end of the year 1) Nonrecourse H1 4530420 2) Qualified nonrecourse financing H2 3) Recourse 113 460389 I Partner's capital account analysis 1) Beginning capital account Ii 573991 2) Capital contributed during the year - cash 12 3) Capital contributed during the year - property 13 4) Current year increase (decrease) 14 719196 5) Withdrawals and distributions - cash 15 930000 6) Withdrawals and distributions - property 16 7) Ending capital account 17 363187 8) Method of accounting (mark an X in the appropriate box) Tax basis GAAP ❑ Book n Other (submit explanation) 117001151062 IIIIIIIII1I~I11111111111 IIIIII11 R66297 1608 163 EFTA00806570 Page 2 of 11 rr-204-CP (2015) 5O3502 2.000 J Was Form CT-2658-E filed with the partnership" J Yes ❑ No K NYS estimated tax paid on behalf of partner (from Form CT-2658) Date Amount 1) First installment K1 2) Second installment K2 3) Third installment K3 4) Fourth installment K4 Total NYS estimated tax paid on behalf of partner (add linos K1 through K4) Partner's share of entire net Income (ENI) information when the corporate partner's New York tax filing status is a C corporation ENI addition modifications 1 Total additions 1 A - Number B- Amount A- Number B- Amount 1a EA - Id EA - 1b EA - 1e EA - lc EA - 1f EA - ENI subtraction modifications 2 Total subtractions 2 A - Number B- Amount A- Number B- Amount 2a ES- 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Partner's proportionate part of assets and liabilities (for New York C corporate partners only) Average value 3 Total assets 3 4 Real property and marketable securities included on line 3 4 5 Real property and marketable securities at fair market value (FMV) 5 6 Average value of adjusted total assets 6 7 Total liabilities 7 8 Liabilities directly attributable to business capital 8 9 Liabilities directly attributable to investment capital 9 117002151062 R66297 1608 164 EFTA00806571 5O35D3 2.000 IT-204-CP (2015) Page 3 of 11 Partner's proportionate pad of items related to investment capital under Article 9-A (for New York C corporate partners only) Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Description of asset (Identify each asset, and enter number of shares (ilapplicable) and date acquired here: for each asset complete Call716S D through G on the corresponding lines below) Item A • Description of asset 8 - Number of shares C - Date acquired acquired. if applicable A B C D E F Item D E F G H Number ol Date sold Average Liabilities directly Net average shares sold, if applicable FMV reported attributable FMV A B C D E F Total from additional sheet(s) 10 Total columns F and G 1 10 Part 2 - Investment capital - stocks actually held more than one year Description of investment (Identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding lines below) Item A - NamefCU$IPfCINSllot number 8 - Number of shares C - Date acquired acquired A B C D E F Item D E F G H Number ol Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G I 11 117003151062 111 R66297 1608 165 EFTA00806572 Page 4 of 11 IT-204-CP (2015) 503504 3.000 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and dale acquired here: for each investment complete columns F and G on the corresponding lines below) Item A - NameICU$IPICINSIIot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(S) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add tines TO. 21. and 12 LO columns Fend0) 13 Part 5 - Prior year investment capital - stocks that did not meet holding period requirement Description of investment (identify each investment. and enter number of shares and date acquired here: tor each investment complete columns D through G on the corresponding lines below) Item A - NamelCU$IPICINSIIot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average FMV Liabilities directly attributable Net average shares sold as previously reported as previously reported FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 III ifirlIII111 R66297 1608 166 EFTA00806573 103106 3.000 IT-204-CP (2015) Page 5 of 11 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Partner's share of items related to investment and other exempt income under Article 9-A (for New York C corporate partners only) 16 Gross exempt cross•article dividends 16 17 Gross exempt controlled foreign corporation (CFC) income 17 18 Gross exempt unitary corporation dividends 18 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 19 20 Dividend income from investment capital from stocks actually held more than one year -2Q 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 21 22 Dividend income from investment capital from stocks presumed held more than one year 22 Partner's share of items related to interest deductions directly attributable to investment and other exempt income under Article 9-A (for New York C corporate partners only) 23 Interest expense per federal Form 1065, line 15 23 24 Interest deductions directly attributable to income reported on line 16 24 25 Interest deductions directly attributable to income reported on line 17 25 26 Interest deductions directly attributable to income reported on line 18 26 27 Interest deductions directly attributable to income reported on line 19 27 28 Interest deductions directly attributable to income reported on line 20 28, 29 Interest deductions directly attributable to income reported on line 21 29, 30 Interest deductions directly attributable to income reported on line 22 30 31 Interest deductions directly attributable to business capital 31 Partner's share and proportionate part of items related to subtraction modification for qualified banks 32 Qualified residential loan portfolio assets 32 33 Gross interest income from qualifying loans 33 33a Gross interest income from all loans 33b Gross interest expense from all loans 3b III 111 R66297 1608 167 EFTA00806574 Page 6 of 11 IT-204-CP (2015) 5O3506 2.000 Partner's share and proportionate part of items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34 34a Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 34a 35 Adjusted basis of qualified manufacturing property 35 35a Number of employees employed in manufacturing in New York 35a Partner's share of New York modifications (for New York S corporate partners only) 36 New York State additions Number A —Total amount 36a EA- 201 55106 36b EA- 209 33415 36c EA- 214 $429 36d EA- 36e EA- 36f EA - 37 Total addition modifications (total of column A, lines 36a through 360 Lsrl. 96950 38 New York State subtractions Number A — Total amount 38a ES- 213 20601 36b ES- 38c ES- 36d ES- 38e ES- 38f ES- 39 Total subtraction modifications (total of column A, lines 38a through 381) 39 40 Additions to federal itemized deductions Letter Amount 40a 40b 40c 40d 40e 401 41 Total additions to federal itemized deductions (add lines 40a through 400 41 42 Subtractions from federal itemized deductions Letter Amount 42a 42b 42c 42d 42e 42f 43 Total subtractions from federal itemized deductions (add lines 42a through 420 L31 117006151062 IIImo R66297 1608 168 EFTA00806575 503550 2.000 IT-204-CP (2015) Page 7 of 11 Partner's share of Income, deductions, etc. (from federal Form 1065, Schedule K-1) Partner's distributive share items 44 Ordinary business income (loss) 44 74 8931 45 Net rental real estate income (loss) 45 46 Other net rental income (foss) 46 47 ivaranteed payments 47 48 I iterest income 48 5552 49 Ordinary dividends 49 50 Royalties 50 51 Net short-term capital gain (loss) 51 52 Net long-term capital gain (loss) 52 53 Net section 1231 gain (loss) 53 54 Other income (loss) 54 Identify: 55 Saction 179 deduction 55 59271 56 Thar deductions (see instructions) 56 32034 Wont* SEE STATEMENT 1 57 Tax-exempt income and nondeductible expenses (see Instructions) _57 -36751 58 Distributions - cash and marketable securities 58 930000 59 D'stributions - other property 59 60 Other items not included above that are required to be reported separately to partners 60 5552 Identity: SEE STATEMENT 1 Partner's credit information (see instructions) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Fenn CT61t. Form CT.6 Mt. or Form CT-6112L_ A — Form CI411 B — Form CT-611.1 C — Form CT4112 61 Site preparation credit component 61 62 Tangible property credit component 62 63 On-site groundwater remediation credit component 63 EZ capital tax credit (Form CT-602) 64 Recapture of credit for investments in certified EZ businesses [64 65 Recapture of credit for contributions of money to EZ community development projects 65 QEZE tax reduction credit (Form CT-604-CP) 66 QEZE employment increase factor 67 QEZE zone allocation factor 67 6 68 QEZE benefit period factor 68 Excelsior jobs program tax credit (Form CT-607) 69 Excelsior jobs tax credit component 69 70 Excelsior investment tax credit component 70 71 Excelsior research and development tax credit component 71 72 Excelsior real property tax credit component III i ifirIIII111 R66297 1608 169 EFTA00806576 Page 8 of 11 rr-204-CP (2015) 5O355] 2.000 Partner's credit information (continued) Farmers' school tax credit (Form CT-47) 73 Acres of qualified agricultural property 73 74 Acres of qualified conservation properly 74 75 Eligible school district property taxes paid 75 76 Acres of qualified agricultural property converted to nongualified use 76 Other flow-through credit bases and Information Credit bases Code Amount Code Amount 77a 77d 77b 77e 77c 77f Credit information Code Information Code Information 77j EMI 77k 771 Part 2 Flow-through credits, addbacks, and recaptures 78 Flow-through credits Code Amount Code Amount 78a 78e 78b 78f 78c 78g 78d 78h 79 Addbacks of credits and recaptures Code Amount Code Amount 79a 79d 79b 79e 79c 79f Part 3 START-UP NY tax elimination credit information (Form CT-638) 80 START-UP NY business certificate number (Form DIF-74) 80 81 Year of START-UP NY business tax benefit period 81 82 START-UP NY area allocation factor 82 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information Part 1 I During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (math an X in the appropriate box) . . . Yes El No ❑ 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity. in the MCTD? (mark an X in the appropriate box) Yes❑ No ❑ 117008151062 III IIII III I I III II II VIII I III III II R66297 1608 170 EFTA00806577 5O3552 3.000 IT-204-CP (2015) Page 9 of 11 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information (continued) Part 1 A B Average value of property MCTD New York State 3 Real estate owned 3 4 Real estate rented 4 5 Inventories owned 5 6 Tangible personal property owned 6 7 Tangible personal property rented 7 Part 2 A B C Receipts from: MCTD New York State Everywhere Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property . . . 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-A.5(a)(2)(A) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property D 11 1 12 Net gains from sales of loans not secured by real property ❑ 12 Section 210-A.5(a)(2)(B) ❑ 13 Interest from federal debt 13 14 Net gains from federal debt 14 15 Interest from NYS and Its political subdivisions debt . . . . 15 16 Net gains from NYS and Its political subdivisions deb' . . 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) ❑ 19 Interest from asset-backed securities and other government agency debt 19 20 Net gains from government agency debt or asset-backed securities sold through an exchange , 20 21 Net gains from all other asset-backed securities . . . 21 Section 210-A.5(a)(2)(D) ❑ 22 Interest from corporate bonds 22 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 117009151062 R66297 1608 171 EFTA00806578 Page 10 of 11 IT-204-CP (2015) 5O3553 3.000 A B Receipts from: (continued) MOTO New York State Everywhere Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements 25 Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 26 Section 210-A.5(a)(2)(1) 27 Net income from sales of physical commodities . . . 27 Section 210-A.5(a)(2)(J) n 28 Marked to market net gains 28 Section 210-A.5(a)(2)(H) 29 Interest from other financial instruments 29 30 Net gains from other financial instruments 30 30a Net gains from other financial instruments (broker/dealer/exchange) 30a 30b Other income from other financial instruments. . . 30b 30c Other income from other financial instruments (broker/dealer/exchange) 30c Section 210-A.5(b) 31 Brokerage commissions 31 32 Margin interest earned on behalf of brokerage accounts • • 32 33 Fees for advisory services for underwriting or management of underwriting 33 34 Receipts from primary spread of selling concessions 34 35 Receipts from account maintenance fees 35 36 Fees for management or advisory services 36 37 Interest from an affiliated corporation 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards . . . 38 39 Service charges and fees from credit cards 39 40 Receipts from merchant discounts 40 41 Receipts from credit card authorizations and settlement processing 41 42 Other credit card processing recepts 42 Section 210-A.5(d) 43 Receipts from certain services to Investment companies • • 43 Section 210-A.6 44 Receipts from railroad and trucking business 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Secton 210-A.7 46 Receipts from air freight forwarding 46 47 Receipts from other aviation services 47 Section 210-A.8 48 Advertising in newspapers or periodicals 48 49 Advertising on television or radio 49 50 Advertising via other means 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52 4154225 6523442 52a Receipts from other services/activities not specified 52a 117010151002 III11111 R66297 1608 172 EFTA00806579 5O3554 3.000 1T-204-CP (2015) Page 11 of 11 Payroll A B MCTD New York State 53 Wages and other compensation of employees except general executive officers I 53 54 Average number of individuals employed lull time in New York State (excluding employees with partnership-wide authority) 54 Gross proceeds or receipts from certain sales A B C (for apportionment purposes) MCTD New York State Everywhere 55 Sales of loans secured by real property 55 56 Sales of loans not secured by real property 56 57 Sales of other asset-backed securities 57 58 Sales of corporate bonds 58 59 Sales of physical commodities 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 60 61 Of loans not secured by real property 61 62 Of federal debt instruments 62 63 Of New York State and its political subdivisions debt instruments 63 64 Of other states and their political subdivisions debt instruments. 64 65 Of government agency debt or asset-backed securities (through exchange) 65 66 Of all other asset-backed securities 66 67 Of corporate bonds through licensed exchange or broker/dealer 67 68 Of other corporate bonds 68 69 Of physical commodities 69 70 Of other financial instruments 70 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 71 72 Value of borrowing agreements when partnership is securities borrower 72 73 Value of repurchase agreements when partnership is seller/borrower 73, 74 Value of lending agreements when partnership is securities lender 74 75 Interest income from reverse repurchase agreements and securities borrowing agreements 75, 76 Interest expense from repurchase agreements and securities lending agreements 76 117011151062 i II I II Holum II IIII I VIII III III R66297 1608 173 EFTA00806580 NEXT MANAGEMENT, LLC 13-3495607 IT 204-CP, PAGE 7 SUPPORTING SCHEDULES PARTNER'S SHARE OF INCOME, DEDUCTIONS, ETC FEDERAL LINE 56 - OTHER DEDUCTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 32034 TOTAL OTHER DEDUCTIONS 32034 FEDERAL LINE 60 - OTHER ITEMS INVESTMENT INCOME 5552 TOTAL OTHER ITEMS 5552 STATEMENT 1 MUNI31A00 R66297 1608 174 EFTA00806581 Department of Taxation and Finance IT-204-CP 5O3501 2000 New York Corporate Partner's ATE 2015 Schedule K-1 Tax Law - Article 9-A Final K-1 For calendar year 2015 or tax year beginning 151 and ending Amended K-1 Pothers: Before completing your franchise tax return, see Form IT-204.CP-I. Partner's Instructions for Form IT-204-CP (available at monabut.ny.gov). Partnership's Information Partnership's name (as shown on Form IT-204) Partnership's EIN NEXT MANAGEMENT. I.,LC 133495607 A Mark an X in the box if either applies to your entity Publicly traded partnership LI Portfolio investment partnership B Tax shelter registration number, if any Partner's Information (see instructions) Partner's name Partners EIN THE 14/ LCOR GROUP. INC 133682060 Partner's address 15 WATTS STREET City State ZIP code NEW YORK NY 10013 C The partner is a moronxi° tht topropriare toxr Lxl General partner or LLC member-manager Ll Limited partner or other LLC member D What is the New York tax filing status of the partner? (Mark an X in the appropriate box. known.) ❑ C corporation E S corporation E If the partner is a disregarded entity, enter the EIN of the entity reporting the income of the partner (if known) F Did the partner sell its entire interest during the tax year? F Yes ❑ No El G Partner's share of profit. loss, and capital Beginning Ending 1) Profit G1 27.0000 % 27.0000 % 2) Loss G2 27.0000 % 27.0000 % 3) Capital G3 27.0000 % 27.0000 ,fcg H Partner's share of liabilities at the end of the year 1) Nonrecourse H1 3945850 2) Qualified nonrecourse financing H2 3) Recourse H3 400983 1 Partner's capital account analysis 1) Beginning capital account Ii 499929 2) Capital contributed during the year - cash 12 3) Capital contributed during the year - property 13 4) Current year increase (decrease) 14 626397 5) Withdrawals and distributions - cash 15 810000 6) Withdrawals and distributions - property 16 7) Ending capital account 17 316326 8) Method of accounting (mark an X in the appropriate box) Tax basis ❑ GAAP ❑ Book ❑ Other (submit explanation) 117001151062 IIIIIIIII1I~I11111111111 IIIIII11 R66297 1608 175 EFTA00806582 Page 2 of 11 rr-204-CP (2015) 5O3502 2.000 J Was Form CT-2658-E filed with the partnership" J Yes ❑ No K NYS estimated tax paid on behalf of partner (from Form CT-2658) Date Amount 1) First installment K1 2) Second installment K2 3) Third installment K3 4) Fourth installment K4 Total NYS estimated tax paid on behalf of partner (add linos K1 through K4) Partner's share of entire net Income (ENI) information when the corporate partner's New York tax filing status is a C corporation ENI addition modifications 1 Total additions 1 A - Number B- Amount A- Number B- Amount 1a EA - Id EA - 1b EA - 1e EA - lc EA - 1f EA - ENI subtraction modifications 2 Total subtractions 2 A - Number B- Amount A- Number B- Amount 2a ES- 2d ES- 2b ES- 2e ES- 2c ES- 2f ES- Partner's proportionate part of assets and liabilities (for New York C corporate partners only) Average value 3 Total assets 3 4 Real property and marketable securities included on line 3 4 5 Real property and marketable securities at fair market value (FMV) 5 6 Average value of adjusted total assets 6 7 Total liabilities 7 8 Liabilities directly attributable to business capital 8 9 Liabilities directly attributable to investment capital 9 117002151062 R66297 1608 176 EFTA00806583 5O35D3 2.000 IT-204-CP (2015) Page 3 of 11 Partner's proportionate pad of items related to investment capital under Article 9-A (for New York C corporate partners only) Part 1 - Investment capital that generates income claimed not apportionable to New York under the U.S. Constitution Description of asset (Identify each asset, and enter number of shares (ilapplicable) and date acquired here: for each asset complete Call716S D through G on the corresponding lines below) Item A • Description of asset 8 - Number of shares C - Date acquired acquired. if applicable A B C D E F Item D E F G H Number ol Date sold Average Liabilities directly Net average shares sold, if applicable FMV reported attributable FMV A B C D E F Total from additional sheet(s) 10 Total columns F and G 1 10 Part 2 - Investment capital - stocks actually held more than one year Description of investment (Identify each investment, and enter number of shares and date acquired here: for each investment complete coktmns D through G on the corresponding lines below) Item A - NamefCU$IPfCINSllot number 8 - Number of shares C - Date acquired acquired A B C D E F Item D E F G H Number ol Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(s) 11 Total columns F and G I 11 117003151062 111 R66297 1608 177 EFTA00806584 Page 4 of 11 IT-204-CP (2015) 503504 3.000 Part 3 - Investment capital - stocks presumed held more than one year Description of investment (identify each investment. and enter number of shares and dale acquired here: for each investment complete columns F and G on the corresponding lines below) Item A - NameICU$IPICINSIIot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average Liabilities directly Net average shares sold FMV reported attributable FMV A B C D E F Total from additional sheet(S) 12 Total columns F and G 112 Part 4 - Total investment capital 13 Total average FMV and liabilities directly attributable (add tines TO. 21. and 12 LO columns Fend0) 13 Part 5 - Prior year investment capital - stocks that did not meet holding period requirement Description of investment (identify each investment. and enter number of shares and date acquired here: tor each investment complete columns D through G on the corresponding lines below) Item A - NamelCU$IPICINSIIot number B - Number ol shares C - Date acquired acquired A B C D E F Item D E F G H Number of Date sold Average FMV Liabilities directly attributable Net average shares sold as previously reported as previously reported FMV A B C D E F Total from additional sheet(s) 14 Total columns F and G 114 III ifirlIII111 R66297 1608 178 EFTA00806585 103106 3.000 IT-204-CP (2015) Page 5 of 11 Part 6 - Prior year gross investment income for stocks that did not meet holding period requirement 15 Prior year presumed gross investment income from stocks presumed in the prior year to be held more than one year that failed to meet the presumption 15 Partner's share of items related to investment and other exempt income under Article 9-A (for New York C corporate partners only) 16 Gross exempt cross•article dividends 16 17 Gross exempt controlled foreign corporation (CFC) income 17 18 Gross exempt unitary corporation dividends 18 19 Gross investment income from investments generating income not apportionable to New York State under the U.S. Constitution 19 20 Dividend income from investment capital from stocks actually held more than one year -2Q 21 Net capital gains in excess of losses from investment capital from stocks actually held more than one year 21 22 Dividend income from investment capital from stocks presumed held more than one year 22 Partner's share of items related to interest deductions directly attributable to investment and other exempt income under Article 9-A (for New York C corporate partners only) 23 Interest expense per federal Form 1065, line 15 23 24 Interest deductions directly attributable to income reported on line 16 24 25 Interest deductions directly attributable to income reported on line 17 25 26 Interest deductions directly attributable to income reported on line 18 26 27 Interest deductions directly attributable to income reported on line 19 27 28 Interest deductions directly attributable to income reported on line 20 28, 29 Interest deductions directly attributable to income reported on line 21 29, 30 Interest deductions directly attributable to income reported on line 22 30 31 Interest deductions directly attributable to business capital 31 Partner's share and proportionate part of items related to subtraction modification for qualified banks 32 Qualified residential loan portfolio assets 32 33 Gross interest income from qualifying loans 33 33a Gross interest income from all loans 33b Gross interest expense from all loans 3b III 111 R66297 1608 179 EFTA00806586 Page 6 of 11 IT-204-CP (2015) 5O3506 2.000 Partner's share and proportionate part of items related to manufacturing 34 Total receipts from the sale of goods by manufacturing 34 34a Receipts received from the generation and distribution of electricity, the distribution of natural gas, and the production of steam associated with the generation of electricity 34a 35 Adjusted basis of qualified manufacturing property 35 35a Number of employees employed in manufacturing in New York 35a Partner's share of New York modifications (for New York S corporate partners only) 36 New York State additions Number A —Total amount 36a EA- 201 47996 36b EA- 209 29104 36c EA- 214 7342 36d EA- 36e EA- 36f EA - 37 Total addition modifications (total of column A, lines 36a through 360 L37 84442 38 New York State subtractions Number A — Total amount 38a ES- 213 17944 36b ES- 38c ES- 36d ES- 38e ES- 38f ES- 39 Total subtraction modifications (total of column A, lines 38a through 381) 39 17944 40 Additions to federal itemized deductions Letter Amount 40a 40b 40c 40d 40e 401 41 Total additions to federal itemized deductions (add lines 40a through 400 41 42 Subtractions from federal itemized deductions Letter Amount 42a 42b 42c 42d 42e 42f 43 Total subtractions from federal itemized deductions (add lines 42a through 420 L31 117006151062 IIImo R66297 1608 180 EFTA00806587 503550 2.000 IT-204-CP (2015) Page 7 of 11 Partner's share of Income, deductions, etc. (from federal Form 1065, Schedule K-1) Partner's distributive share items 44 Ordinary business income (loss) 44 652293 45 Net rental real estate income (loss) 45 46 Other net rental income (foss) 46 47 ivaranteed payments 47 48 I iterest income 48 4836 49 Ordinary dividends 49 50 Royalties 50 51 Net short-term capital gain (loss) 51 52 Net long-term capital gain (loss) 52 53 Net section 1231 gain (loss) 53 54 Other income (loss) 54 Identify: 55 Saction 179 deduction 55 51622 56 Thar deductions (see instructions) 56 27900 Wont* SEE STATEMENT 1 57 Tax-exempt income and nondeductible expenses (see Instructions) 57 -32010 58 Distributions - cash and marketable securities 58 810000 59 D'stributions - other property 59 60 Other items not included above that are required to be reported separately to partners 60 4836 Identity: SEE STATEMENT 1 Partner's credit information (see instructions) Part 1 - Flow-through credit bases and information Brownfield redevelopment tax credit (Fenn CT61t. Form CT.6 Mt. or Form CT-6112L_ A — Form CT411 B — Form CT-611.1 C — Form CT4112 61 Site preparation credit component 61 62 Tangible property credit component 62 63 On-site groundwater remediation credit component 63 EZ capital tax credit (Form CT-602) 64 Recapture of credit for investments in certified EZ businesses [64 65 Recapture of credit for contributions of money to EZ community development projects 65 QEZE tax reduction credit (Form CT-604-CP) 66 QEZE employment increase factor 67 QEZE zone allocation factor 67 6 68 QEZE benefit period factor 68 Excelsior jobs program tax credit (Form CT-607) 69 Excelsior jobs tax credit component 69 70 Excelsior investment tax credit component 70 71 Excelsior research and development tax credit component 71 72 Excelsior real property tax credit component III i ifirIIII111 R66297 1608 181 EFTA00806588 Page 8 of 11 rr-204-CP (2015) 5O355] 2.000 Partner's credit information (continued) Farmers' school tax credit (Form CT-47) 73 Acres of qualified agricultural property 73 74 Acres of qualified conservation properly 74 75 Eligible school district property taxes paid 75 76 Acres of qualified agricultural property converted to nongualified use 76 Other flow-through credit bases and Information Credit bases Code Amount Code Amount 77a 77d 77b 77e 77c 77f Credit information Code Information Code Information 77j EMI 77k 771 Part 2 Flow-through credits, addbacks, and recaptures 78 Flow-through credits Code Amount Code Amount 78a 78e 78b 78f 78c 78g 78d 78h 79 Addbacks of credits and recaptures Code Amount Code Amount 79a 79d 79b 79e 79c 79f Part 3 START-UP NY tax elimination credit information (Form CT-638) 80 START-UP NY business certificate number (Form DIF-74) 80 81 Year of START-UP NY business tax benefit period 81 82 START-UP NY area allocation factor 82 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information Part 1 I During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity, in New York State? (math an X in the appropriate box) . . . Yes El No ❑ 2 During the reporting year, did the partnership do business, employ capital, own or lease property, maintain an office, or derive receipts from activity. in the MCTD? (mark an X in the appropriate box) Yes❑ No ❑ 117008151062 III IIII III I I III II II VIII I III III II R66297 1608 182 EFTA00806589 5O3552 3.000 IT-204-CP (2015) Page 9 of 11 Partner's share of apportionment and Metropolitan Commuter Transportation District (MCTD) information (continued) Part 1 A B Average value of property MCTD New York State 3 Real estate owned 3 4 Real estate rented 4 5 Inventories owned 5 6 Tangible personal property owned 6 7 Tangible personal property rented 7 Part 2 A B C Receipts from: MCTD New York State Everywhere Section 210-A.2 1 Sales of tangible personal property 1 2 Sales of electricity 2 3 Net gains from sales of real property 3 Section 210-A.3 4 Rentals of real and tangible personal property . . . 4 5 Royalties from patents, copyrights, trademarks, and similar intangible personal property 5 6 Sales of rights for certain closed-circuit and cable TV transmissions of an event 6 Section 210-A.4 7 Sale, licensing, or granting access to digital products 7 7a Sale, licensing, or granting access to digital products 7a 8 This line intentionally left blank 8 Section 210-A.5(a)(2)(A) 9 Interest from loans secured by real property 9 10 Net gains from sales of loans secured by real properly . . 10 11 Interest from loans not secured by real property D 11 1 12 Net gains from sales of loans not secured by real property ❑ 12 Section 210-A.5(a)(2)(B) ❑ 13 Interest from federal debt 13 14 Net gains from federal debt 14 15 Interest from NYS and Its political subdivisions debt . . . . 15 16 Net gains from NYS and Its political subdivisions deb' . . 16 17 Interest from other states and their political subdivisions debt 17 18 Net gains from other states and their political subdivisions debt 18 Section 210-A.5(a)(2)(C) ❑ 19 Interest from asset-backed securities and other government agency debt 19 20 Net gains from government agency debt or asset-backed securities sold through an exchange , 20 21 Net gains from all other asset-backed securities . . . 21 Section 210-A.5(a)(2)(D) ❑ 22 Interest from corporate bonds 22 23 Net gains from corporate bonds sold through broker/dealer or licensed exchange 23 24 Net gains from other corporate bonds 24 117009151062 R66297 1608 183 EFTA00806590 Page 10 of 11 IT-204-CP (2015) 5O3553 3.000 A B Receipts from: (continued) MOTO New York State Everywhere Section 210-A.5(a)(2)(E) 25 Net interest from reverse repurchase and securities borrowing agreements 25 Section 210-A.5(a)(2)(F) 26 Net interest from federal funds 26 Section 210-A.5(a)(2)(1) 27 Net income from sales of physical commodities . . . 27 Section 210-A.5(a)(2)(J) n 28 Marked to market net gains 28 Section 210-A.5(a)(2)(H) 29 Interest from other financial instruments 29 30 Net gains from other financial instruments 30 30a Net gains from other financial instruments (broker/dealer/exchange) 30a 30b Other income from other financial instruments. . . 30b 30c Other income from other financial instruments (broker/dealer/exchange) 30c Section 210-A.5(b) 31 Brokerage commissions 31 32 Margin interest earned on behalf la brokerage accounts • • 32 33 Fees for advisory services for underwriting or management of underwriting 33 34 Receipts from primary spread of selling concessions 34 35 Receipts from account maintenance fees 35 36 Fees for management or advisory services 36 37 Interest from an affiliated corporation 37 Section 210-A.5(c) 38 Interest, fees, and penalties from credit cards . . . 38 39 Service charges and fees from credit cards 39 40 Receipts from merchant discounts 40 41 Receipts from credit card authorizations and settlement processing 41 42 Other credit card processing recepts 42 Section 210-A.5(d) 43 Receipts from certain services to Investment companies • • 43 Section 210-A.6 44 Receipts from railroad and trucking business 44 Section 210-A.6-a 45 Receipts from the operation of vessels 45 Secton 210-A.7 46 Receipts from air freight forwarding 46 47 Receipts from other aviation services 47 Section 210-A.8 48 Advertising in newspapers or periodicals 48 49 Advertising on television or radio 49 50 Advertising via other means 50 Section 210-A.9 51 Transportation or transmission of gas through pipes 51 Section 210-A.10 52 Receipts from other services/activities not specified 52 3618197 5681707 52a Receipts from other services/activities not specified 52a 117010151002 III11111 R66297 1608 184 EFTA00806591 5O3554 3.000 1T-204-CP (2015) Page 11 of 11 Payroll A B MCTD New York State 53 Wages and other compensation of employees except general executive officers I 53 54 Average number of individuals employed lull time in New York State (excluding employees with partnership-wide authority) 54 Gross proceeds or receipts from certain sales A B C (for apportionment purposes) MCTD New York State Everywhere 55 Sales of loans secured by real property 55 56 Sales of loans not secured by real property 56 57 Sales of other asset-backed securities 57 58 Sales of corporate bonds 58 59 Sales of physical commodities 59 Marked to market net gain or loss from deemed sales (for apportionment purposes) 60 Of loans secured by real property 60 61 Of loans not secured by real property 61 62 Of federal debt instruments 62 63 Of New York State and its political subdivisions debt instruments 63 64 Of other states and their political subdivisions debt instruments. 64 65 Of government agency debt or asset-backed securities (through exchange) 65 66 Of all other asset-backed securities 66 67 Of corporate bonds through licensed exchange or broker/dealer 67 68 Of other corporate bonds 68 69 Of physical commodities 69 70 Of other financial instruments 70 Items related to repurchase agreements and securities borrowing/lending agreements 71 Value of reverse repurchase agreements when partnership is purchaser/lender 71 72 Value of borrowing agreements when partnership is securities borrower 72 73 Value of repurchase agreements when partnership is seller/borrower 73, 74 Value of lending agreements when partnership is securities lender 74 75 Interest income from reverse repurchase agreements and securities borrowing agreements 75, 76 Interest expense from repurchase agreements and securities lending agreements 76 117011151062 i II I II Holum II IIII I VIII III III R66297 1608 185 EFTA00806592 NEXT MANAGEMENT, LLC 13-3495607 IT 204-CP, PAGE 7 SUPPORTING SCHEDULES PARTNER'S SHARE OF INCOME, DEDUCTIONS, ETC FEDERAL LINE 56 - OTHER DEDUCTIONS CASH CONTRIBUTION SUBJECT TO 50% LIMITATION 27900 TOTAL OTHER DEDUCTIONS 27900 FEDERAL LINE 60 - OTHER ITEMS INVESTMENT INCOME 4836 TOTAL OTHER ITEMS 4836 STATEMENT 1 MUNI31A00 R66297 1608 186 EFTA00806593 F.,„, 4562 Depreciation and Amortization OMB No. 1545.0172 NipailmOMOttel[Poarur, (Including Information on Listed Property) ► Attach to your tax return. 2015 Attachment Interne/ Revenue &IVO (99) ► Information about Form 4562 and its separate instructions is at onvwdrs.gov/form4562. Sequence No. 179 Name(s) shown on return Identifying number NEXT MANAGEMENT, LLC 1 3-3 4 9 5 6 07 Business or activity to which this form relates NEXT MANAGEMENT, LLC Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) 1 5 00, 0 0 0 . 2 Total cost of section 179 properly placed in service (see instructions) 2 346,797. 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 3 2,000.000. 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- 4 5 DOWN limitation ter lac year. SODIUM:Atha 4 WM line 1.1zer0Or Len. enter ME/1,00 51115 5 Sapasalelv. see instructions 5 00, 0 0 0 . 6 (a) Description of property (b) Cost (business use only) (c) Elected cost SEE DEPRECIATION DETAIL 191,194. 7 Listed property. Enter the amount from line 29 17 8 Total elected cost of section 179 property. Add amounts in column (c), nes 6 and 7 8 191,194. 9 Tentative deduction. Enter the smaller of line 5 or line 8 9 191,194. 10 Carryover of disallowed deduction from line 13 of your 2014 Form 4562 10 11 Business Income limitation. Enter the smaller of business income (not less than zero) or line 5 (see Instructions) 11 500.000. 12 Section 179 amens. deduction. Add lines 9 and 10, but do not enter more than line 11 12 191.194. 13 Carryover of disallowed deduction to 2016. Add lines 9 and 10, less line 12 , 13 1 Note: Do not use Part II or Part Ill below for listed property. Instead, use Pal V. Part II Special Depreciation Allowance and Other Depreciation (Do not include listed property) See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) 14 77,802. 15 Properly subject to section 168(1)(1) election 15 16 Other depreciation (includng ACRS) 16 24.391. Part III MACRS Depreciation (Do not include listed properly.) (See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2015 17 1 18, 805 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here .1-1 Section B - Assets Placed in Service During 2015 Tax Year Using the General Depredation System (b) Month and year (c) Basis for depreciation 00 Reemery (a) Classification dproperly placed in (businesarimestment use naiad (e) Convention (I) Method (g) Depreciation deduction service only - see insmictions) r— 19a 3-year property b 5-year property e 7-year property d 10-year properly e 15-year properly f 20-year properly g 25-year properly 25 yrs. S/L h Residential rental 27.5 yrs. MM S/L property 27.5 yrs. MM S/L i Nonresidential real 39 yrs. MM S/L property MM SIL Section C - Assets Placed in Service During 2015 Tax Year Using the Alternative De reciation System 20a Class life SIL b 12-year 12 yrs. SIL e 40-year 40 yrs. MM SIL Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 22 Total. Add amounts from line 12. lines 14 through 17. lines 19 and 20 In column (g). and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations -see instructions 22 120,998. 23 For assets shown above and placed in service during the current year. enter the portion of the basis attributable to section 263A costs 23 -ISA For Paperwork Reduction Act Notice, see separate instructions. Form 4562 (2015) 5)(2300 2.000 R66297 1608 187 EFTA00806594 NEXT MANAGEMENT, LLC 15) 13-34942i For 4562 (20 Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the businessAnvestment use claimed?I I Yes I I No 124b if "Yes,* is the evidence written? I I Yes I I No (a) (b) (c) (e) (0 (0) 01) (0 Business/ (r4 Basis tordepredalios 0 Type d propeny fret Date placed investment use Cost or ether barn Recovery Method? Depreciation Elected scam 179 vehicles first) service necovelY period Convention deduction Dom percentage use only) 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) 25 26 Property used more than 50% in a qi qualified business use: % 27 Property used 50% or less in a qualified business use: S/L • rS/1J SiL • 28 Add amounts in co umn (h), lines 25 hrough 27. Enter here and on line 21, page 1 128 29 Add amounts in co umn (i), line 26. Enter here and on line 7, page 1 29 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor. partner, or other "more than 5% owner." or related person. If you p melded vehicles to your employees, first answer the questions in Section C to see it you meet an exception to completing this section for those vehicles. (a) 04 (c) (d) (e) (0 Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 30 Total business/investment miles driven during the year (do not include commuting miles), , , 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven 33 Total miles driven during the year. Add lines 30 through 32 34 Was the vehicle available for personal Yes No Yes No Yes No Yes No Yes No Yes No use during off-duty hours? 35 Was the vehicle used primarily by a more than 5% owner or related person? 36 Is another vehicle available for personal use? l Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes No your employees? 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners 39 Do you treat all use of vehicles by employees as personal use? 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," do not complete Section B for the covered vehicles. Part VI Amortization (0) (h) amortization (d) Amortization (I) (a) Date (0) Description of costs Amortizable amount Code section period or Amortization for this year begins percentage 42 Amortization of costs that begins during your 2015 tax ear (see instructions): ORGANIZATION COSTS 06/15/2015 43 Amortization of costs that began before your 2015 tax year [ 15,790. 709 15.000 43 614. 200,000. 44 Total. Add amounts in column (f). See the instructions for where to report 44 200,614. JSA Form 4562 (2015) 5%2310 2.000 R66297 1608 188 EFTA00806595 SCHEDULE M-3 Net Income (Loss) Reconciliation OMB No. 1545.0123 (Form 1065) for Certain Partnerships DCD4 nm Cft of tnc PO.rAir, Internal Revenue Santee We Attach to Form 1065 or Form 1065-B. ie. Information about Schedule M-3 (Form 1065) and its instructions is at wwwirs.gov.lorm1065. 2015 Name ol partnership Employer identification number NEXT MANAGEMENT, LLC 13-3495607 This Schedule M-3 is being filed because (check all that apply): A X The amount of the partnership's total assets at the end of the tax year is equal to $10 million or more. j. The amount of the partnership's adjusted total assets for the tax year is equal to $10 million or more. If box B is checked, enter the amount of adjusted total assets for the tax year 19,760,866. . C ❑ The amount of total receipts for the tax year is equal to $35 million or more. If box C is checked, enter the total receipts for the tax year D ❑ An entity that is a reportable entity partner with respect to the partnership owns or is deemed to own an interest of 50 percent or more in the partnership's capital, profit, or loss, on any day during the tax year of the partnership. Name of Reportable Entity Partner Identifying Number Maximum Percentage Owned or Deemed Owned aE Voluntary Filer. Financial Information and Net Income (Loss) Reconciliation la Did the partnership file SEC Form 10-K for its income statement period ending with or within this tax year? Yes. Skip lines 1b and lc and complete lines 2 through 11 with respect to that SEC Form 10-K. No. Go to line lb. See instructions if multiple non-tax-basis income statements are prepared. b Did the partnership prepare a certified audited non-tax-basis income statement for that period? E Yes. Skip line lc and complete lines 2 through 11 with respect to that income statement. No. Go to line lc. c Did the partnership prepare a non-tax-basis income statement for that period? Yes. Complete lines 2 through 11 with respect to that income statement. N No. Skip lines 2 through 3b and enter the partnership's net income (loss) per its books and records on line 4a. 2 Enter the income statement period: Beginning 01/01/2015 Ending12/31/2015 3a Has the partnership's income statement been restated for the income statement period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. b Has the partnership's income statement been restated for any of the live income statement periods immediately preceding the period on line 2? Yes. (If "Yes; attach a statement and the amount of each item restated.) No. 4a Wo ldwide consolidated net income (loss) from income statement source identified in Part I, line 1 4a 2,319,987. b Indicate accounting standard used for line 4a (see instructions): I X GAAP 2 IFRS 3 D 704(b) 4 __ Tax-basis 5 _ Other: (Specify) IP. 5a Net income from nonincludible foreign entities (attach statement) 5a ( b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) 5b 6a Net income from nonincludible U.S. entities (attach statement) 6a ( b Net loss from nonincludible U.S. entities (attach statement and enter as a positive amount) 6b 7a Net income (loss) of other foreign disregarded entities (attach statement) 7a b Net income (loss) of other U.S. disregarded entities (attach statement) 7b 8 Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach statement) 8 9 Adjustment to reconcile income statement period to tax year (attach statement) 9 10 Other adjustments to reconcile to amount on line 11 (attach statement) 10 11 Net income (loss) per income statement of the partnership. Combine lines 4a through 10. . . . 11 2,319,987 . Note: Part I, line 11, must equal Part II, line 26, column (a) or Schedule M-1, line 1 (see instructions) 12 Enter the total amount (not just the partnership's share) of the assets and liabilities ol all entitles included or removed on the following lines: Total Assets Total Liabilities a Included on Part I, line 4 16,760,866. 15,589,295. b Removed on Part I. fine 5 c Removed on Part I. line 6 d Included on Part I, line 7 dye, For Paperwork Reduction Act Notice, see the Instructions for your return. Schedule 14-3 (Form 1065) 2015 SP 1042 2.000 R66297 1608 189 EFTA00806596 Schedule M4 (Form 1065) 2015 Page 2 Name of parinershp Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Part II Reconciliation of Net Income (Loss) per Income Statement of Partnership With Income (Loss) per Return (a) (b) (c) CO Income (Lose) Items Income (Loss) per Temporary Permanent Income (Loss) per Income Statement Difference Difference Tax Return IMEICh statements sar lines 1 through lot I income (loss) Iron Equityn*3mM lotsin mmormms 2 Gross toreegn &Mends ner progeny taxed 3 enapan F. OEF. ans ~MI (101(111~.16 . . 4 Gross foreign Sikhism: pnwsisty taxed s mama (bid) 110. stay Weed US. common 6 U.S. diedends 7 Income (loss' tram U.S. panncaraT. a 298,055. 5,160. -59.919. 243,296. 9 Income (loss) tram Imago panne/slaps . 9 Income (loss, from ena aossInco9h enlikes 10 items relating to repcdable trenteCOM5 . 11 Intetest frame (me insituctonal 17,910. 17.910. 12 Total acobal le <WM letbueMent 13 Hedging tnms833717 14 mark.s.market income (las) Is Cost ol goads sold (see insaucitynt . . ( ) ( ) 16 Sale moue lease 1101 seers area lessen) . 17 Section 481(a) alumnus 18 Unearnedkieterted revenue 19 Income recognrticn (ran bog-term tornats 20 Original :sue discount and NW imputed MUMS 21e Income statement ceinoloss on sale exchange. Mean:lamb:M. worthlessness or other mammon at assets other than Inventory and pass-through entities. . . . b Goss capital gains (rom Schedule Q =sa. ding amours from pasethrough entities . . o Goss caplet tosses from Schedule D. echidna amounts horn 00354hrOUgh entities. abandament loses, and wont: stock losses d Nol gan/loss reponed on Form 4797. Inc! I?. exdudrg amounts from pass.through entities.abandCOMMI I04403. and wathleSs sleek 10544$ e Abandonment lasses 1 Worthless stock losses (Mach statement'. . 9 Other gan/loss m aspeolson of assns other than inventory 22 Other income goes) dens with ChllegenCe5 lalleCh Illelealmt) 23 Total Income (loss) Items. Combine Ines I through 22 315.965. 5.160. -59.919. 261.206. 24 Total exponsadeductIon Hems. Morn PM IC me 31) lam nstmclons) -12,859.017. -216,737. 90,792. —12.984,962. 21 Other gems with no dritemnaSIMT. 2 14.863.039. 14,863,039. 26 Raoseseelan sawn. Corium iron 23 mom 25 2,319.987. -211,577. 30,873. 2,139,283. Note: Line 26, column (a), must equal Part I, line 11, and column (d) must equal Form 1065, Analysis of Net Income (Loss). line 1. Schedule h1-3 (Form 1065) 2015 JSA 5P1043 2.000 R66297 1608 190 EFTA00806597 Schedule M-3 (Form 1065) 2015 Page 3 Name of partnershp Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Part III Reconciliation of Net Income (Loss) per Income Statement of Partnership With income (Loss) per Return - Expense/Deduction items (a) Ot) (c) (d) Expense/Deduction Items Expense per Temporary Pemunen1 Deduction per Income Statement Difference Difference Tax Return I Slate and kcal current income lax expense 155,391. 155,391. 2 Slate and kcal deterred ncome tax eipense 4.000. -4.000. 3 Foreign current mane lax expense (other than foreign wthhedag taxes) 0 Foreign deterred income lax expense S Equity based compensation 6 lAeals and ertenaninall 181,584. -90,792. 90,792. 7 Fines and penalties 0 .lioamarn. eamigas. iminte. are ants mm 9 Guaranteed payments 10 Pension and peafesharing II Other postmlirement benefits 12 Deferred compensate. 13 Charitable conabution at cash and tangible property 10 Charitable conInbuton et intsigible properly 98,175. 98,175. II Organizational eoponses as per Regulations section 1.709-2(al II Syndication *incises as per Regulations section 1.709•2gol 17 Current year acquisitionheaganization investment barildro lees II Current year acquisitionseceganixaban legal and accounting lees 19 Amortization:impairment et goodail . . 20 Amortization el acquisition. reorganization and 'leavecosts 21 Other amorfization et impainnall amto.cels 20,790. 179.824. 200.614. 22 Reserved 23a Decimal • 04 & Gas b Depletion - Other than On & Gas 24 Intangible biting 6 development costs . 25 Doprociatian 159,326. 152,866. 312,192. 26 Sad debt exprise 8,131. 8,131. 2/ Interest expense (see munitions, . . . 29 Purchase versus lease (la purchasers and a lessees) 29 Research and development costs 30 Other capon sededucbcn items web differences (sten staterront)STMT 3 12.231.620. -111,953. 12.119.667. 31 TOY 019.14.11411allon Mat cosier. tries t vireo It Caw Sr. and on Rut i. Ito 24. 14,313((ipassia accounts as meats es regatta arna.0111.16p01/0” 12.859.017. 216.737. -90.792. 12,984,962. Schedule M-3 (Form 1065) 2015 35.a 5P1044 2.000 R66297 1608 191 EFTA00806598 Form8916-A Supplemental Attachment to Schedule M-3 OMB No. 1545-0123 Department of the Treasury Internal Revenue Service ► Attach to Schedule M-3 for Form 1065. 1120, 1120-L. 1120-PC. or 1120S. ► Information about Form 8916-A and its instructions is at knnvirs.gotelorrn1120. 2015 Name ol common parent Employer Identification number NEXT MANAGEMENT, LLC 13-3495607 Name ol subsidiary Employer Identification number Part I Cost of Goods Sold (a) (b) (e) Off Cost of Gads Sold Items Expense per Temporary Permanent Deduction per Tax Income Statement Difference Difference Return 1 Amounts attributable to cost flow assumptions 2 Amounts attributable to: a Stock option expense b Other equity based compensation e Meals and entertainment d Parachute payments e Compensation with section 162(m) limitation I Pension and profit sharing, g Other post-retirement benefits h Deferred compensation I Reserved j Amortization k Depletion I Depreciation m Corporate owned life insurance premiums n Other section 263A costs 3 Inventory shrinkage accruals, 4 Excess inventory and obsolescence reserves 5 Lower of cost or market write- downs 6 Other Items with differences (attach statement) 7 Other items with no differences 8 Total cost of goods sold. Add lines 1 through 7 in columns a, b. c. and d. Enter totals on the applicable Schedule M-3. See instructions For Paperwork Reduction Act Notice. see instructions. Form 8916-A (2015) J SA SX9035 2.000 R66297 1608 192 EFTA00806599 Form 8916-A (20t5) NEXT MANAGEMENT, LLC 13-3495607 Noe 2 Part II Interest Income (a) (b) (c) (d) Interest Income Item Income (Loss) per Income Temporary Permanent Income (Loss) per Statement Difference Difference Tax Return 1 Tax-exempt interest income 2 Interest income from hybrid securities 3 Sale/lease interest income 4a Intercompany interest Income - From outside tax affiliated group Intercompany interest Income - From tax affiliated group 5 Other Interest income 17,910. 17,910. 6 Total interest income. Add lines 1 through 5 in columns a, b, c, and d. Enter total on the applicable Schedule M-3. See instructions. 17.910. 17.910. Part Interest Expense (a) (b) (c) Expense per Income Temporary Permanent (d) Interest Expense Item Deduction per Tax Return Statement Difference Difference 1 Interest expense from hybrid securities 2 Leasetpurchase interest expense 3a Intercompany interest expense - Pad to outside tax affiliated group 3b Intercompany interest expense - Paid to tax affiliated group 4 Other Interest expense 5 Total interest expense. Add lines 1 through 4 in columns a, b, c. and d. Enter total on the applicable Schedule M-3. See instructions. Form 8916-A (2015) 529036 2.000 R66297 1608 193 EFTA00806600 NEXT MANAGEMENT, :.LC 11-340607 SCHEDULE M-3, PART II DETAIL LINE 7 - INCOME (LOSS) FROM U.S. PARTNERSHIPS EAT EAT PROFIT-SHARING LOSS-SHARING INCOME (LOSS) TEMPORARY PERMANENT INCOME (LOSS( NAME EIN PERCENTAGE PERCENTAGE PER ENCORE 571a DIFFERENCE DIFFERENCE PER TAW RETURN TWO TWELVE MANAGEMENT LLC 20-1354409 80.000 80.000 298,055. 3,164. -59,919. 243,296. TOTAL 290,055. 5,160. -59,919. 243,296. R66297 1608 STATEMENT 194 EFTA00806601 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART II DETAIL LINE 25 - OTHER INCOME (LOSS) AND EXPENSE/DEDUCTION ITEMS WITH NO DIFFERENCES GROSS RECEIPTS 20,059,894. OPERATING EXPENSES -5,196,855. TOTAL 14,863,039. STATEMENT 2 R66297 1608 195 EFTA00806602 NEXT MANAGEMENT, LLC 13-3495607 SCHEDULE M-3, PART III DETAIL LINE 30 - OTHER EXPENSE/DEDUCTION ITEMS WITH DIFFERENCES EXPENSE TEMPORARY PERMANENT DEDUCTION DESCRIPTION PER INCOME STMT DIFFERENCE DIFFERENCE PER TAX RETURN RENTAL EXPENSE - STRAIGHTLINING OF LEASE 815,962. -66,152. 749,810. SALARIES 11,415,658. -50,801. 11,364,857. ORGANIZATION COSTS 5,000. 5,000. TOTAL 12,231,620. -111,953. 12,119,667. R66297 1608 196 STATEMENT 3 EFTA00806603 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for payment of New York City Estimated Unincorporated Business Tax Form NYC-5UB The appropriate voucher should accompany each payment as follows: Voucher On or Before Amount 1 April 18.2016 2 June 15. 2016 3 September 15, 2016 $20,200 4 January 16, 2017 $20,200 Overpayment of 2015 income tax credited against 2016 tax $90,148 Total estimate of 2016 income tax $130,548 Each voucher, together with your check or money order payable to NYC Department of Finance, should be filed with: NYC Department of Finance P.O. Box 3923 New York, NY 10008.3923 To document the timely filing of your tax return(s), we suggest that you obtain and retain proof of mailing. Proof of mailing can be accomplished by sending the tax retum(s) by registered or certified mail (metered by the U.S. Postal Service) or through the use of an IRS approved delivery method provided by an IRS designated private delivery service. EFTA00806604 NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX Dentlirmololirume 2016 For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name Employer Identification Number Name rt NEXT MANAGEMENT, LLC Changel__J In Care of 13-3495607 Business address (number and street) Addressn %OBES Code Mate( as per Federal Rehm) 15 WATTS STREET Charge City and State hp Code Country (if not US) 812 990 NEW YORK, NY 10013 Business Telephone Number Taxpayers Email Address Payment Amain A. Payment Amount included with form - Make payable to: NYC Department of Finance. . A. 1. Estimate of 2016 tax 130,514. 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OFFINANCE) 2. Signature of taxpayel: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3.400 or less. Your credo is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is Mowed. Enter Tr. Tax on line 4 is over $3.400 but less than 55.400, use formula for credit amount: Tax an line 4 x ($5,400 minus tax on line 4) 5a. instrucliont2).0O0 5b. O her credits (see 5b. 5c. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 7a. Partnership's 2015 Un ncaporated Songless Tax 73.1 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. COMPUTATION OF INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see mow:dons. 8. Thhts declaration I April 18, 2016. enter 1/4 of line 7b _ Sept. 15, 2016. enter 1/2 of line lb• • • • is&s on: June 15. 2016. enter 1/3 of line 7b Jan. 15. 2017. enter amount of line 7h . . 18. 32,630. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a croon against 2016 estimated tax 9. 22,537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: !WCDEPARTMENT OF FINANCE) . . . . 10. MAILING INSTRUCTIONS Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, UNINCORPORATED BUSINESS TAX drawn on a U.S. bank. P. O. BOX 3923 NEW YO • NY 10008-3923 503650 2.000 R66297 1606 198 EFTA00806605 NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX Dentlirmololirume 2016 For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name Employer Identification Number Name rt NEXT MANAGEMENT, LLC Changel__J In Care of 13-3495607 Business address (number and street) Addressn %OBES Code Mate( as per Federal Rehm) 15 WATTS STREET Charge City and State hp Code Country (if not US) 812990 NEW YORK, NY 10013 Business Telephone Number Taxpayers Email Address Payment Amain A. Payment Amount included with form - Make payable to: NYC Department of Finance. . A. 1. Estimate of 2016 tax 130,514. 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OFFINANCE) 2. Signature of taxpayel: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3.400 or less. Your credo is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is Mowed. Enter Tr. Tax on line 4 is over $3.400 but less than 55.400, use formula for credit amount: Tax on line 4 x ($5,400 minus tax on line 4) 5a. credits instrucliont2/0O0 5b. O her (see 5b. 5c. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 7a. Partnership's 2015 Un nouporated Songless Tax 73.1 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. COMPUTATION OF INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see instructions. 8. HMIs declaration April 18, 2016. enter 1/4 of line 7b _ Sept. 15, 2016. enter 1/2 of line lb• • • • heron: ...X.. June 15.2016. enter 1/3 of line 7b Jan. 15.2017. enter amount of line 7b . . } 8. 32,630. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a credo against 2016 estimated tax 9. 22, 537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: NYC DEPARTMENT OF FINANCE) . . . . 10. MAILING INSTRUCTIONS Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, UNINCORPORATED BUSINESS TAX drawn on a U.S. bank. P. O. BOX 3923 NEW YO • NY 10008-3923 503650 2.000 R66297 1606 199 EFTA00806606 NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX Mmultmolairume 2016 For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name Employer Identification Number Name rt NEXT MANAGEMENT, LLC Changel__J In Care of 13-3495607 Business address (number and street) Addressn Signets Code Weber as per Federal Refute 15 WATTS STREET Change City and State hp Code Country (if not US) 812990 NEW YORK, NY 10013 Business Telephone Number Taxpayers Email Address Panel Amount A. Payment Amount included with form - Make payable to: NYC Department of Finance A. 20,200. 1. Estimate of 2016 tax 1. 130,514. 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OFFINANCE) 2. 20,200. Signature of taxpayer: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3A00 or less. Your credit is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is mowed. Enter Tr. Tax on line 4 is over $3.400 but less than $5.400, use formula for credit amount: Tax on line I x ($5,400 minus tax on line 4) 5a. credits instrucliont2/0O0 5b. O her (see 5b. 5c. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 7a. Partnership's 2015 Un ncaporated Songless Tax 78.I 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. COMPUTATION OF INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see mow:dons. 8. dthis declaration , April 18, 2016. enter 1/4 of line 7b I.Sept. 15, 2016. enter 1/2 of line lb• • • • heron:on: June 15. 2016. enter 1/3 of line 7b Jan. 15. 2017. enter amount of line 7b . . 18. 32,630. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a credo against 2016 estimated tax 9. 22,537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: NYC DEPARTMENT OF FINANCE) . . . . 10. 20,200. MAILING INSTRUCTIONS Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, UNINCORPORATED BUSINESS TAX a drawn on a U.S. bank. P. O. BOX 3923 NEW YO • NY 10008-3923 5036502.a* R66297 1606 200 EFTA00806607 NYC-5UB PARTNERSHIP DECLARATION OF ESTIMATED UNINCORPORATED BUSINESS TAX Depatagololirume 2016 For CALENDAR YEAR 2016 or FISCAL YEAR beginning and ending Business name Employer Identification Number Name rt NEXT MANAGEMENT, LLC Changel__J In Care of 13-3495607 Business address (number and street) Addressn %Men Cede MAMA as Mt Fennel Return 15 WATTS STREET Charge City and Sumo hp Code Country (if not US) 812990 NEW YORK, NY 10013 Business Telephone Number Taxpayers Email Address Pummel Amount A. Payment Amount included with form - Make payable to: NYC Department of Finance A. 20,200. 1. Estimate of 2016 tax 1. 130,514. 2. Amount to be paid with this declaration (Payable to: NYC DEPARTMENT OFFINANCE) 2. 20,200. Signature of taxpayel: Date To receive proper credit, you must enter your correct Employer Identification Number on your declaration and remittance. DETACH ON DOTTED LINE & MAIL UPPER PORTION. RETAIN LOWER PORTION FOR YOUR RECORDS ESTIMATED TAX WORKSHEET • KEEP THIS PORTION FOR YOUR RECORDS • 1. Net income from business expected in 2016 (see instructions) 2. Exemption (see instructions) 2. 3. Line 1 less line 2 (estimated taxable business income) 3. 4. Tax - enter 4% of line 3 (see instructions) 5a. Business Tax Credit (I) (Check applicable box below and enter credit amount) Tax on line 4 is $3A00 or less. Your credo is the entire amount of tax on line 4. Tax on line 4 is $5.400 or over. No cretin is Mowed. Enter Tr. Tax on line 4 is over $3.400 but less than $5.400, use formula for credit amount: Tax on line 4 x ($5,400 minus tax on line 4) 5a. instrucliont2).0O0 5b. O her credits (see 5b. Sc. Total credits (add lines 5a and 5b) 6. Estimated 2016 Unincorporated Business Tax (line 4 less line 5c) Enter here, on line 7b, and on line 1 of declaration above 7a. Partnership's 2015 Un ncaporated Songless Tax 73.1 130,319. I7b. Estimate of 2016 tax from line 6. 7b. 130,514. COMPUTATION OF INSTALLMENT - (,/) Check proper box below and enter amount indicated. Fiscal year taxpayers see mow:dons. 8. dthis declaration , April 18, 2016. enter 1/4 of line 7b Sept. 15, 2016. enter 1/2 of line lb• • • • heron: June 15. 2016. enter 1/3 of line 7b _X_ Jan. 15.2017. enter amount of line 7h . . 18. 32,630. 9. Enter amount of overpayment on 2015 return which you elected to have applied as a credo against 2016 estimated tax 9. 22,537. 10. Amount to be paid with this declaration (line 8 less line 9) (Payable o: !WCDEPARTMENT OF FINANCE) 10. 20,200. MAILING INSTRUCTIONS Make remittance payable to the order of: NYC DEPARTMENT OF FINANCE MAIL YOUR DECLARATION FORM TO: NYC DEPARTMENT OF FINANCE Payment must be made In U.S. dollars, UNINCORPORATED BUSINESS TAX a drawn on a U.S. bank. P. O. BOX 3923 NEW YO • NY 10008-3923 5036502.000 R66297 1606 201 EFTA00806608 Berdon LLP Certified Public Accountants 360 Madison Ave New York, NY 10017 212-832-0400 Next Management, LLC Instructions for Filing Form NYC-579-UBTP 2015 Signature Authorization for E-filed UBT Return for the year ended December 31. 2015 The original form should be signed (use full name) and dated by an authorized partner. The signed form should be returned on or before October 17, 2016 via: Email (preferred method) efileipherdonUp com Fax 212.699.8832 Mail Berdon LLP Attn: Tax Control 360 Madison Avenue, 6th Floor New York, NY 10017 We must receive your signed Form NYC-579-UBTP before we can electronically transmit your return. The return shows a $90,148 overpayment. Of this amount, $90,148 will be applied to your 2016 estimated tax. DO NOT separately file your tax return with the state. Doing so will delay the processing of your return. The state will notify us when your return is accepted. Your return is not considered filed until the state confirms their acceptance. which may occur after the due date of your return. EFTA00806609 NEW YORK CITY DEPARTMENT OF FINANCE NYC NYC Signature Authorization for --- 579-UBTP E-Filed Unincorporated 2015 Business Tax Return for Partnerships ELECTRONIC RETURN ORIGINATORS ERO): DO NOT MAIL THIS FORM TO THE DEPARTMENT OF FINANCE. KEEP THIS FOR YOUR RECORDS. LEGAL NAME OF PARTNERSHIP: EMPLOYER IDENTIFICATION NUMBER NEXT MANAGEMENT, EMAIL ADDRESS: LLC 13-3495637 TYPE OF FORM: NYC-EXT NYC-204 H NYC-5UB NYC-204EZ Financial Institution Information - must be Included it electronic payment Is authorized AMOUNT OF AUTHORIZED DEBIT: FINANCIAL INSTITUTION ROUTING NUMBER: FINANCIAL INSTITUTION ACCOUNT NUMBER: Part A - Declaration and authorization of Partner or limited liability company member manager Under penalty of perjury. I declare that I am the general partner or limited liability company manager of the taxpayer and that I have examned the information on its 2015 New York City electronically filed Unincorporated Business Tax return. including any accompanying schedules. attachments and statements or other report and to the best of my know - edge and belief. the electronically filed document is true. correct and complete. The ERO has my consent to send the 2015 New York City electronleafy filed Unincorporated Business Tax return or other report checked above to the New York City Department of Finance through the Internal Revenue Service. I authorize the ERO to enter my PIN as my signature on the 2015 New York City electronically filed Unincorporated Easiness Tax return or other report. as indicated above &twill enter my PIN as my signature on the document indicated above. If I am paying the New York City Unincorporated Business Tax owed by electronic funds withdrawal. I authorize the New York City De- partmereof Finance and its designated financial agents to initiatean electronic fundswithdrawal from the financialinstitution account indicated on the Partnership's electronically filed the Unincorporated Business Tax return or other report. and I authorize the financial institution to debt the amount from that account. E I authorize BERDON LLP ERO FIRM NAME to enter my PIN • 26689 as my signature on the electronically filed 2015 Unincorporated Business Tax return or other report, as incricated above ❑ As a general partner or limited liability company member manager. I will enter my PIN as my signature on the electronically filed 2015 Unincorpo- rated Business Tax return or other report, as indicated above. PRES OF MEMBER-MGR Signature of General Partner or Limited Liability Company Member Manager Official title Date Part B - Declaration of electronic return originator (ERO) and paid preparer Under penalty of perjury. I declare that the information contained in the above-named pannership's or limited liability company's 2015 New York City electronically tiled Unincorporated Business Tax return or other report. as indicated above. is the information furnished to me by the taxpayer. If the taxpayer furnished me with a completed 2015 New York City paper Unincorporated Business Tax return or other report signed by a paid preparer. I declare that the information contained in the electronically filed Unincorporated Business Tax return or other report is identical to that contained in the paper return. If I am the paid preparer. under penalty of perjury I declare that I have examined this electronically filed 2015 Unincorporated Goalless Tax Return or other report. and to the best of my knowledge and belief. the return or other report is true. correct and complete. I have based this declaration on all the information available to me. ERO EFINIPIN: Enter your six-digit EFIN followed by your live digit PIN. 26377413048 MARC YATKOWSKY ERO's Signature Print Name Date MARC YATKOWSKY Paid Preparers Signature Print Name Date PURPOSE - A completed Form NYC-579-UBTP provides documental on that an ERO has been authorized to electronically file an Unincorporated Business Tax Return or other report foe a taxpayer. The general partner or limited liability company manager of the taxpayer may designate the ERO to electronically sign the return or report by entering the personal identification number (PIN). The torn also authorizes payment of tax due on an electronically submitted return or report by an automatic clearing house (ACH) debit from a designated checking or saving account of the partnership. You cannot revoke this authorization. GENERAL INSTRUCTIONS Part A- Part A must be completed by the general partner or limited liability company manager of the taxpayer before the ERO transmits the electronically filed Form NYC-204 (Unincorporated Rosiness Tax Return for Parinershps. including Limited Liability Companies): NYC-204E2 (Unincorporated Business Tax Return for Partnerships. includng Limted Liability Companies EZ Form): NYC-EXT (Application for 6-Month Extension to File Business Income Tax Return): or NYC-5(1B (Declaration of Estimated Unincorporated Business Tax for Partnerships). EROsipald preparers must complete Part 8 prior to transmitting electronically filed unincorporated business tax returns or reports (Forms NYC-204. NYC-204E2. NYC- EXT or NYC-SUB). Both the paid tamperer and the ERO are required to sign Part B. However. II an indivolual performs as both the pad preparer and the ERO. he or she is only required to sign as the paid preparer. Ito not necessary to include the ERO signature in this case. Do not mail Form NYC-579-UBTP to the Department of France. The EROsrpaid preparers must keep the completed Form NYC-579.UBTP for three years from the due dale of the return or report or the date the return or report was filed. whichever is later. and must present it to the Department of Finance upon request. NYC-579.UBTP 2015 5O3653 t.000 R66297 1608 197 EFTA00806610 NYC-204 y Single member Lles using SSN as their primary identifier must use Form NYC-202 UNINCORPORATED BUSINESS TAX RETURN 2015 FOR PARTNERSHIPS (INCLUDING LIMITED LIABILITY COMPANIES) For CALENDAR YEAR 20150r FISCAL YEAR begillelkl 2015, end ending Name TAXPAYERS EWUL ADDRESS Name NEXT MANAGEMENT, LLC Change In Cared Elkes1.0YER IDENTIFICATION NUNGER Address (number and SIMI) Address 15 WATTS STREET Criange 13-3495607 City and Stale Zp Code County fil net US) BUSNESS CODE NUMBER AS PER FEDERAL RETURN NEW YORK, NY 10013 Business Telephone Nurnbct Date bosoms began n NYC Date tosness ended in NYC 812990 01-04-89 Entity Type: general pa ip registered lensed fabldy partn limited partners,* limited habely company - Amended return II tee purpose of tee amended return ts to report a - IRS change lecleial or ONO Change. check the aPPICOMN box Date cd Final — NTS dung° Determination - Final return • ceased eperabons Federal Return filed: X 1060 10604 - Engaged in a fullyexempt unincorpaoted business suety - Engaged in a partiallyexempt unincorporated busmocs =tray - Claim any 9I11,01.related federal lax benefits (see IOSONCIIVISI Enter 2.charaMm special condition code. if apphcable (see instructions) SCHEDULE A Computation of Tax BEON wmiSCH5XIIE BON FADE 3. COMPLETE ALL OTHER SCIEDULES. TRANSFERAPPLICABLE PA1OUNTS TO SCHEDULE A Payment Awoke A. Payment Amount being paid electronically with this return A. 1. Business income (from page 3. Schedule B, 31) 1. 5,512,248. 2. Business allocation percentage from Schedule E. line 5. (if not allocating, enter 100%) 2. 65.79 % 3a. If line 2 is less than 100%. enter income or loss on NYC real property (see instructions) 3a. 3b. Enter allocated business income, or subtract business loss, from other partnerships (see instructions). 3b. 4. Balance (line 1 less line 3a) 4. 5,512,248. 5. Multiply line 4 by the business allocation percentage from line 2 5. 3,626,508. 6. Total of lines 3a and 3b. (see instructions) 6. 7a. Investment income (from page 3. Schedule B, hne 30) 7a. 7b. Add allocated investment income, or subtract investment loss. from other partnerships (see ins(t) 7b. 8. Investment allocation percentage (TAP) (from page 4. Schedule D. line 2) 8 9. Multiply line 7a by the IAP from line 8. Add the amount on hne 7b. (see instructions) 9. 10. Total before NOL deduction (See instructions) 10. 3,626,508. 11. Deduct NYC net operating loss deduction (from Form NYCNOLD-UBTP. hne 11) (see instructions) 11. 12. Balance before allowance for active partners' services (line 10 less line 11) 12. 3,626,508. 13. Less: allowance for active partners' services (it line 12 is a loss. enter "0') (see instructions) Number of active partners claimed • 3 13. 30,000. 14. Balance before specilic exemption (line 12 less line 13) 14. 3,596,508. 15. Less: specific exemption (see instructions and attach schedule) (if line 12 is a loss, enter '0") 15. 5,000. 16. Taxable income (line 14 less line 15) 16. 3,591,508. 17. Tax before business tax credit (4% of amount on line 16) 17. 143,660. 18. Less: business tax credit (select the applicable credit condition from the sch. on page 2 and enter amount) (see instructions) 18. 19. Total tax before Unincorporated Business Tax paid credit (line 17 less line 18) (see instructions) 19. 143,660. 20. Less: Ur Paid Credit (from Schedule A. line 3 of attached Form NYC-114.7) (see instructions) 20. 13,341. 21. UNINCORPORATED BUSINESS TAY (line 19 less line 20) (If the balance is less than '0% enter "0) (see kW.) 21. 130,319. 60411510 TIMRETURN MUST BE SIGNED, (SEE PAGE 6 FOR SIGNATURE BOX AND MAILING INSTRUCTIONS) NYC-204 • EMS 10 S036611.000 EFTA00806611 Form NYC-204 -2015 Page 2 Name NEXT MANAGEMENT, LLC EMI 13-3495607 SCHEDULE A Computation of Tax - Continued 22a. Credits from Form NYC-114.5 (attach form) (see instructions) 22a. 22b. Credits from Form NYC-114.6 (attach form) (see instructions) 22b. 22e. Credits from Form NYC•114.8 (attach form) (see instructions) 220. 22d. Credits from Form NYC-114.10 (attach form) (see instructions) 22d. 23. Net tax alter credits (line 21 less sum of lines 22a, 22b. 22c and 22d) 23. 130,319. 24. Payment of estimated tax. including credit from preceding year and payment with e elision, NYC-EXT (see irlSfr.) 24. 2 20, 4 67. 25. II line 23 is larger than line 24. enter balance due 25. 28. II line 23 is smaller than line 24. enter overpayment 28 90, 1 4 8. 27a. Interest (see instructions) 27a. 27b. Additional charges (see instructions) 27b. 27e. Penally for underpayment of estimated tax (attach Form NYC-221) 27e. 28. Total of lines 27a. 27b aid 27c 28. 29. Net overpayment (line 26 less line 28) (see instructions) 29. 90, 1 4 8. 30. Amount of line 29 to be: (a) Refunded • Direct deposit - fill out line 30c OR Paper check 30a. (b) Credited to 2016 estimated taxon Form NYC•5UB 30b. 90, 1 4 8. 30e RotAbig Ammo. ACCOUNT TYPE NwOw NwOw Chocking — Sings_ 31. TOTAL REMITTANCE DUE (see instructions) 31. 32. NYC rent deducted on lederal tax return or NYC rent from Schedule E. Part 1. (THIS LINE MUST BE COMPLETED) 32. 596,104. 33. Gross receipts or sales from federal return 33. 20,059,894. 34. Total assets from federal return. 34. 16, 760, 866. Business Tax Credit Computation I 1. II the amount on page 1, line 17, is $3.400 or less, your credit on line 18 is the entire amount of tax on line 17. (NO TAX WILL BE DUE) 2. II the amount on page 1, line 17, is $5.400 or over. no credit is allowed. Enter '0" on line 18. 3. II the amount on page 1, line 17, is over $3.400 but less than $5.400. your credit is computed by the following formula: tax on page 1. line 17X (0,400 minus tax on line 17 ) _ = your credit $2,000 Payments of Estimated Tax Computation PREPAYMENTS CLAIMED ON SCHEDULE A, UNE 24 DATE AMOUNT A. Payment with declaration. Form NYC-5UB (1) B. Payment with Notice of Estimated Tax Due (2) , , , , 06-18 —15 25,000. C. Payment with Notice of Estimated Tax Due (3) . . . . 09-01 -15 86,250. D. Payment with Notice of Estimated Tax Due (4) , , , , 01-15 —16 28,750. E Payment with (Mansion. Form NYC-EXT 04-14 —16 40, 000. F. Overpayment credited from practicing year 40, 4 67. a TOTAL of A through F. (Enter on Schedule A. Ine 24) . 22 0, 4 67. 60421510 S038651.000 10 EFTA00806612 Form NYC-204 -2015 Page 3 Name NEXT MANAGEMENT, LLC EIN 13-3495607 SCHEDULE B Computation of Total Income Part 1 Items of income, gain, loss or deduction 1. Ordinary income (loss) from federal Form 1065, line 22 or 1065-B, Pad I, line 25 (see instr.) 1. 2,415,902. 2. Net income (loss) from all rental real estate activity not included in Form 1065, line 22 or 1065-B, Part I, line 25 but included on federal Schedule K 2. 3. All portfolio income such as interest. dividends. royalties, annuity income and gain (lose) on the disposition of prcpeny not Included In Form 1065. line 22 or 1065.8. Part I. Ine 25. but included on lederal Sch. K (attach sch. of ellportloNc. income). 3. 17,910. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 5. Payments to current and retired partners Included in other deductions from federal Form 1065. line 20 or 1065.8. Part I. line 23 5. 6. Other income not included in Form 1065. line 22 or 1065-B. Part I. line 25. but included on federal Sch. K wpm ech co otter inxmo 6. 7. Charitable contributions from federal Schedule K 7. 103,335. 8. °Met deductions included in Form 1065. fine 22 cr 10654. Peril. Me 25 end Pal Me 13. but nol allowed Ice VDT rettecneched) pee Mst) . 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) SEE STATEMENT 1 9. -191,194. 10. Total federal income (combine lines 1 through 9, do not include line 7) 10. 2,242,618. 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property situated outside NYC if included in line 10 above (attach schedule) (see instructions) 11. 12. Total income before New York City modifications (combine line 10 and line 11) 12. 2,242,618. Part 2 New York City modifications (see instructions for Schedule a part 2) PARTNER A PARTNERS PARTNER C TOTAL ADDITIONS ON OR SSN 13-3508513 13-3501977 13-3682060 13. All Income taxes and Unincorporated Business Taxes 13. 74,659. 55,107. 47,995. 13. 177, 761. 14. (a) Relocation credts 14a. 14a. (b) Expenses related to exempt income 14b. 14b. (C) Depreciation adjustments (see Nutt and anech Form NYC-399 end/or NYC-3992) 14c. 45,273. 33,415. 29,104. 14c. 107,792. (d) Exempt Activities 14d. 14d. 15. Other additions (attach schedules) (see instructions) 15. 1,324,625. 977, 699. 851, 545. 15. 3,153,869. 16. Total additions (add lines 13 through 15) 16 1,444,557. 1,066,221. 928,644. 16. 3,439,422. SUBTRACTIONS PARTNER A PARTNERS PARTNER C TOTAL 17. All income tax and Unincorporated Business Tax refunds (included in part 1) 17. 17. 18. Wages and salaries subject to federal jobs credit (attach federal Form 5884) 18. 18. 19. Depreciation adjustment (see instr. and attach Form NYC-399 and/or NYC-3992) 19. 25,190. 18,594. 16,193. 19. 59,977. 20. Exempt Income (included in part 1. line 10) (see mstc) 20. 20. 21. 50% of dividends (see instructions) 21. 21. 22. Exempt Activities 22 22. 23. Other subtractions (attach schedule)(see Man/coons). 2,722. 2,008. 1,750. 23. 6,480. 24. Total subtractions (add lines 17 through 23). . 24. 27,912. 20,602. 17,943. 24. 66,457. 25. Combine lines 16 and 24 (total) 25. 3,372,965. 26. Total income (combine lines 12 and 25) 26. 5,615,583. 27. Less: Charitable contributions (not to exceed line 7, or 5% of line 26. whichever is less) 27. 103,335. 28. Balance (line 26 less line 27) 28 5,512,248. 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from investment capital (include non-exempt governmental obligations) (Remise on rider) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for Investment . . . . 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. ft) Deductions directly or indirectly attributable to investment income 29f. (9) Interest on bank accounts included in income reported 29g. on line 29d 30. Investment income (line 29e less line 29f) (enter on page 1, Sch. A, line 7a) . . . 30. 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line I.) 31. 5,512,248. 60431510 503662 1.000 10 R66297 1608 202 EFTA00806613 Form NYC-204 - 2015 Page 4 Name NEXT MANAGEMENT, LLC EIN 13-3495607 SCHEDULE C I Partnership Information - THIS SCHEDULE MUST BE COMETED FOR PORTNERSHPS TO CLAIM ALLOWANCE FOR RYMER'S SERVCES AND FOR PARTERS TO CLAIM THE WI PAO CREDIT ON THEP LOT OCT BCT OR PIT RETURNS le. How many partners are in this partnership/ PP. 3 P. Number of active partners ► 3 Please provide the following information: Full Name and Address, Employer Identification Number or Social Security Number, check Yes or No if individual partner is a resident of NYC, enter type of partner (C if Corporation, S if S Corporation, I if Individual, P if Partnership, LLP or LLC, Off Other), check the appropriate box if partner is a general or a limited partner. A B C 0 E F a H I Pcycentago Is htholual Pannots ParaMIS04,04 Name and Zip Code Olalthin USA) Interest °I Inc Pan"' a Purina Employer Identification Numb& DisInbutim Dewed Resent a Farina ClIstributerto Name and Country (if outside of USA) % to Eluanoss NYC? ( i ) Type I a/I of Share Share Social Security timber (see instr.) (see 6601 YES NO at HINTED (a) % % % SEE STATEMENT 2 lb) % % (C) % % (d) % (e) % TOTALS: 100% SCHEDULE D (_Investment Capital and Allocation and Cash Election A B C D E F G DESCRIPTION OF INVESTMENT No el Shares or Average Liabilities Net Average Value Issuers Value Allocated LIST EACH STOCK AND SECURITY Amount al Value Attributable to Invest- (column C rams Sumo DI Allocation to NYC (USE RIDER IF NECESSARY) Securities ment Carmel Percentage (column E X column F) % 1. Totals (Including Items on rider) Ilio. 2. Investment allocation percentage pine f0 chided by line I E. Round to the nearest one hundredth of a percentage point) 2. % 3. cash - (To treat cash as Investment capital, you must Include It on this line.) le 4. Investment capital. Total of Mete and 3e le• ATTACH FEDERAL FORM 1065 OR 1065-B AND ALL ACCOMPANYING SCHEDULES INCLUDING THE INDIVIDUAL K-1s 60441510 10 503663 1.000 R66297 1608 203 EFTA00806614 Form NYC-204 - 2015 Page 5 Name NEXT MANAGEMENT, LLC EIN 13-3495607 I ALLOCATION OF BUSINESS INCOME I ALLOCA77ON NONALLOCATION Taxpayers who allocate income outside the City: I Taxpayers who do not allocate business income: - complete Schedule E Parts 1.2 and 3 (below) end - omit Schedule E. Parts 1 and 2 (below) • Enter percentage rounded to the nexest ono hindredth *lemma *pane on ached. A One 2 - enter 100% on Schedule E. Part 3. line 5 and 100% on Schedule A. line 2 LSCHEDULE E I Complete this schedule it business Is carried on both inside and outside New York City I List location of each place of business INSIDE New York City, nature of activities at each location (manufacturing. sales dike, executive office. Part 1 public warehouse, contractor. converter, etc.), and number of employees. their wages, salaries and duties at each location. Complete Address Rent Nature of Actmlies No. cl Employees Wars. Salanes. Etc. Oulias NJA3111MOISCIT 15 WATTS ST. NY, NY Cl., SUR NEW YORK MY 10011 552,009. MODEL AGENCY 53 8,376,027. BOOKING & AD NAOCAMOSTOCCT Cr, NEW YORK Inert 15 WATTS ST. —TKO TWELVE M MY I re 10011 44,095. PUBLIC RELATIONS 2 80,496. BOOKING & AD ,at APP:matt Cr, curt ID wAocewo:nect Cr( rAn IID Total 596,104. 55 8,456,523. List location of each place of usiness OUTSIDE New York City, nature of activities at each location (manufacturing, sales o lice, executive office, Part 2 public warehouse, contractor, onverter, etc.), and number of employees, their wages, salaries and duties at each location. CWW.MOAMMSS Flan, Nature el ACIWII06 No. of Employees WC*. SSA* Elc Doles NJOLCIAPOSMCIT 1688 MERIDIAN AVE cm SAW 212 MIAMI FL 31101 111,862. OFFICE 9 988,189. BOOKING & AD NJAZIAMO.r4tT 840 WILSHIRE BLVD. Cm cRR 2.2 BEVERLY HILLS CA 90210 100,455. OFFICE 20 1,927,516. BOOKING & AD NJAZIAMO .r4tT cry cnn 2P NJAIRMD.WIT COY SUR 2P Total 212,317. 29 2,915,705. Part 3 I Formula Basis Allocation of Income I DESCRIPTION OF ITEMS USED AS FACTORS COLUMN A- NEW YORK CITY COLUMNS-EVERYWHERE COLUMN C 1. Average value of the real and tangible personal properly of the business (see Usti) PERCENTAGE IN NEW YORK CITY a Business real properly owned 1a b. Business real properlyrented from others (rent x 8) lb. 4,768,832. 6,467,368. (COLUMN A 168,776. 194,521. MOO BY e. Business tangible personal properly owned 1c. COLUMN 8) d. auuwinpmiu, wizen.' Fenny MOS (ran wen ass .0> Id. e. Total of lines to -Id le. 4,937,608. 6,661,889. 74.1172 % 1. Multiply Column C of line le by 10 If 741.1720 2a. Wages. :alarms and other personal sante compensalson pad to employees dreg the year . . 2a. 8,456,522. I 11,372,227. 74.3612 % 2b. Multiply Column C of line 2a by 10 2b 743.6120 Sa. Gross sales of merchandse or charges for services during the year 3a 13,400,728. 21,043,361. 63.6815 % 3b. Multiply Column C of line 3a by 80 SD 5094.5200 WeightedFactotAllocation Oa. Add Column C. lines If. 2b and 3b ea 6579.3040 Ob. Divide line 4a by 100 if no factors are missing. If abider is missing. etvole line 4a by the total of the weights of the factors present. Enter as percentage. Round to the nearest one hundredth of a percentage point . . . Ob. 65.79 % Business ANocationPercentoge S. Enter percentage from line 4b. Transfer to page 1. Schedule A. Ye 2. See Instructions 5 65.79 % 6. IS ANY PLACE OF BUSINESS LISTED IN PARTS 1 AND 2 LOCATED IN A PARTNERS HOME? YES X NO 7. DID YOU CLAIM A DEDUCTION FOR EXPENSES OF AN OFFICE IN A PARTNER'S HOME? YES X NO ATTACH FEDERAL FORM 1065 OR 1065-B AND ALL ACCOMPANYING SCHEDULES INCLUDING THE INDIVIDUAL K-11 60451510 10 503664 1.000 R66297 1608 204 EFTA00806615 Form NYC-204 -2015 Page 6 Name NEXT MANAGEMENT, LLC EIN 13-3495607 If you are taking a Net Operating Loss Deduction this year, please attach Form SCHEDULE F NYC-NOLD-UBTP. If you have a loss on Page 1, Line 10 which you are carrying forward, please attach Form NYC-NOLD-UBTP and enter that value on Line 6. SCHEDULE G The following information must be entered for this return to be complete 1. Nature of business or profession. MODELING AGENCY 2. New York State Sales Tax ID Number: 3. Did you file a New York City Partnership Return for the following years:. . .2013: x YES - NO 2014: X YES _ NO If "NO,' state reason: 4. If business terminated during the current taxable year, state date terminated. (mm-dd-w) (Attach a statement showing disposition of business property.) 5. Has the Internal Revenue Service or the New York State Department of Taxation and Finance increased or decreased any taxable income reported in any tax period, or are you currently being audited/ YES x NO If "YES", by whom? . . Internal Revenue Semite State period(s): Beg.: End.: um.ODYY ktIAODYY New York State Department of Taxabon and Finance State period(s): Beg.: End.: IAA ODYY ktIA OD YY 6. Has Form NYC-115 (Report of Federal/State Change in Taxable Income) been filed? YES .)_.0 NO 7. Did you calculate a depreciation deduction by the application of the federal Accelerated C051 Recovery System (ACRS)? (seeMstr.) YES X NO 8. Were you a participant in a "Safe Harbor Leasing' transaction during the period covered by this return/ YES .?( NO 9. At any time during the taxable year, did the partnership have an interest in real property (including a leasehold interest) located in NYC or in an entity owning such real property/ X YES - NO 10. If "YES" to 9: a) Attach a schedule of the property. indicating the nature of the interest and including the street address. borough, block and lot number. b) Was any NYC real property (including a leasehold interest) or interest in an entity owning NYC real property, acquired or transferred with or without consideration/ YES X NO c) Was there a partial or complete liquidation of the partnership? YES X NO d) Was 50% or more of the partnership ownership transferred during the tax year. over a three-year period, or according to a plan? YES X NO 11. If 'YES" to 10b, 10c or 10d, was a Real Property Transfer Tax Return filed? YES _ NO 12. If 'NO" to 11, explain: 13. Does this taxpayer pay rent greater than $200,000 for any premises in NYC in the borough of Manhattan south of 96th Street for the purpose of carrying on any trade, business, profession, vocation or commercial activity/ X YES _ NO 14. If 'YES', were all required Commercial Rent Tax Returns Ned? X YES — NO Please enter Employer Identification Number which was used on the Commercial Rent Tax Return. CERTIFICATION Am.'s Email Address: I Malay canny Vol Oils town. incbtdava ant OcaamPsnOn0 Ma. ink. en Mal or not inanana0. WOW. lea carnal Inn coal:ant I oulhoilt• be on.....eet a mire. to disonis Me return the In*PaW wtd Wk., 04.InouNbnq YES X Signature of taxpayer: Title: PRES OF MEMBE Dale: Prewar. Social Security Number or Pliti ISACONY P00002675 Preparers Preparers signature: emits name: MARC YATKOWSKY Dale: BERDON LLP 360 MADISON AVE Rims Employer Identification Number NEW YORK, NY 10017 Check if 13-0485070 A hp Code sea-employed Firm's name A Address MAILING INSTRUCTIONS Attach federal form 1065 or 1065-B and all accompanying schedules Including the Individual K-Is Make remittance payable to the order of NYC DEPARTMENT OF FINANCE. Payment must be made In U.S. dollars and drawn on a U.S. bank. To receive proper credit you must enter your correct Employer Identification Number on your tax return and remittance. The due date for the calendar year 2015 return Is on or before Apr1118, 20 6. For fiscal years beginning in 2015, file on or before the 15th day of the fourth month following the close of the fiscal year. ALL RETURNS EXCEPT REFUND RETURNS REMITTANCES RETURNS CLAIMING REFUNDS NYC DEPARTMENT OF FINANCE PAY ONLINE WITH FORM NYC-200V NYC DEPARTMENT OF FINANCE UMNOORPORATED BUSINESS TAX AT NYC.GOWESERVICES UNINCORPORATED BUSINESS TAX M. sox 6564 OR Box 5563 BINGHAMTON. NY 13902-5564 Mail Payment and Form NYC-200V ONLY to: BINGHAMTON, NY 13002-556.5 NYC DEPARTMENT OF FINANCE . BOX 3646 60461510 NEW YORK. NY 10008-3646 503666 2.000 10 R66297 1608 205 EFTA00806616 UBT PAID CREDIT 2015 NYC-114.7 Chp.Invorti of Fttencr UNINCORPORATED BUSINESS TAXPAYERS ATTACH TO FORM NYC-204 For CALENDAR YEAR 2015 or FISCAL YEAR beginning 2015 and ending • Pnnt or Type name as shonn on Form NYC-204 V EMPLOYER IDENTIFICATION NUMBER NEXT MANAGEMENT, LW 13-3495607 SCHEDULE A la. Add total of amounts from Schedule B, line 9, for aN partnerships with respect to which you are claiming a credit (see instructions) la 13,341. lb. Enter amount from Schedule D, line 9 lb. lc. Total of lines 1a and 1b lc. 13,341. 2. Enter amount from Form NYC-204, Schedule A, line 19 2 143,660. 3. UBT PAID CREDIT - Enter the lesser of line lc and line 2 and transfer amount to Form NYC-204, Schedule A, line 20. 3 13,341. SCHEDULE B A separate Schedule B must be completed for each partnership with respect to which you are claiming this credit. Name of partnership from %Mich you received a distributive EMPLOYER IDEN11FICA11ON NUMBER OF DISTRIBUTING PARTNERSHIP share or guaranteed payment (distributing partnership): TWO TWELVE MANAGEMENT, LLC 20-1354409 1. Unincorporated business tax paid by distributing partnership (from Its Form NYC-204. Schedule A. line 23) 1. 27,807. 2. Credits taken by distributing partnership on its own return (from its Form NYC-204, Schedule A, line 20 and lines 22a through 22d) (see instructions) 2. 3. Total of lines 1 and 2 3. 27,807. 4. Your distributive share percentage with respect to the distributing partnership (see instructions) • • 4. 47.977956 5. Multiply line 3 by the percentage on line 4 5. 13,341. 6. Tax from Form NYC-204, Schedule A, line 17. modified if necessary (see instructions) 6. 143,660. 7. Tax from pro forma Form NYC-204, Schedule A, line 17 (see instructions) STMT 6 7. 129,839. 8. Subtract line 7 from line 6 8. 13,821. 9. Enter lesser of line 5 and line 8 here 9. 13,341. COMPLETE SCHEDULES C AND D IF YOU HAVE UBT PAID CREDITS FROM PRECEDING YEARS THAT YOU MAY CARRY FORWARD TO 2015 SCHEDULE C 1. 7th preceding year percentage . . .1a. current year percentage • • lb 2. 6th preceding year percentage . . .2a. current year pe centage • • 2b. 3. 5th preceding year percentage . . .3a. current year pe centage • • 3b. 4. 4th preceding year percentage . . .4a. current year pe centage • • 4b. 5. 3rd preceding year percentage . . .5a. current year pe centage • • 5b. 6 2nd preceding year percentage . . .6a. current year pe centage • • 6b. 7. 1st preceding year percentage . . .7a. current year pe centage • • 7b. SCHEDULE D (see Instructions) APPLICABLE YEAR COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E Credit Available in 2015 Gabs Perccolatie Credit to 2016 Column A Mous Column 13 (II loss du" we. enter IV) 1 Currentyear 13,341. 143,660. NA NA 2. 7th preceding year 130,319. 3. 6th preceding year 130,319. 4. 5th preceding year 130,319. 5. 4th preceding year 130,319. 6. 3rd preceding year 130,319. 7. 2nd preceding year 130,319. 8. 1St preceding year 130,319. 9. Total Column 0, lines 2 through 8 (enter on Schedule A. line lb) 9. 61111510 NYC4Ia.p 2015 10 206 EFTA00806617 DEPRECIATION ADJUSTMENTS FOR Nycn7,399Z CERTAIN POST 9/10/01 PROPERTY For CALENDAR YEAR 2015 or FISCAL YEAR beginning and ending Name (Print or Type) EMPLOYER ICENTIRCATION NUMBER NEXT MANAGEMENT, LLC 13-3495607 OR A Federal Form 4562 must accompany this form. • This schedule must be attached to your applicable New York City tax return. SOCIAL SECURITY MJMBER See instructions. • Use Schedule A2 to report modifications to the deductions for certain sport utility vehicles, not Schedule Al. See instructions. SCHEDULE Al Computation of allowable New York City depreciation for current year I Attach rider If necessary A B C D E F G H I Descnption Class of Date Placed Cost Accumulated NYC Federal Depreciation Method Fvudngof Lite Allowable of Property in Service Or Depreciator, Taken Met or New York City Property mrn-ddly Other Baps an Prior Years Wrocoban Rate Deprecation STMT 7 is. Total columns D. E. F. and I 556, 187. 130,598. 107, 792. 69,977. Enter total of columns F and I on line 4 and line 5 of Schedule C below. (Sae instructions on back.) SCHEDULE A2 Computation of NYC deductions for current year for sport utility vehicles t Attach rider if necessary A 8 C D E F G H I 1.1othod of Description Class of Date Placed Cost Accumulated NYC Federal Figurine Life Total Allowable of Property in Service: or Deductions Taken Depreciation and tAt or New Yak Ctty Property mm4d.yy Other Basis in Prior Years Section 179 Deductions Deprecator Rale Deductions lb. Total columns D. E. F. and I MCMI-2O15 00811510 10 We367S 1.000 R66297 1608 207 EFTA00806618 Form NYC-399Z Page 2 SCHEDULE B Disposition adjustment I Attach rider If necessary For each Item of property listed below, determine the difference between federal and New York City deductions used in the computation of federal and New York City taxable income in prior yea's. • If federal deduction exceeds New York City deduction. subtract column E from column 0 and enter in column F. A II New York City deduction exceeds federal, subtract column I) from column E and enter in column G. A B C D E F G Description Class of Date Placed Total Federal Total NYC Adjustment Adjustment of Property Property in Service: Depreciation Taken Depreciation Taken (0 minus E) (E anus 0) (SCRS) m-del-yy 2. Total excess federal deductions over NYC deductions (see instructions) 3. Total excess NYC deductions over federal deductions (see instructions) SCHEDULE C Computation of adjustments to New York City income A. Federal B. New York City 4. Enter amount from Schedule Al. line l a. column F 4. 107,792. 5. Enter amount from Schedule Al. line la. column I 6 59,977. 6a. Enter amount from Schedule A2. line lb, Column F Ba 6b. Enter amount from Schedule A2. line lb, Column I OM is. Enter amount from Schedule B. line 2 la 7b. Enter amount from Schedule B. line 3 7b 8. Totals: column A. Ines 4, 66 md 7b: column tines S. se and 7a . . 8. 107,792. 59,977. Enter the amount on line 8. column A. as an addition and the amount on line 8. column B. as a deduction on the applicable New York City return. (See Instr.) using a straight-line method. The Act also allows an ad- GENERAL INFORMATION ditional first-year expense deduction of up to $35,000 for NOTE "qualified New Yodt Liberty Zone property" under RC At the time of the drafting of these instructions, bonus §179 in addition to the otherwise allowable deduction. depreciation provisions under section 168(k) of the The Jobs and Growth Tax Relief Reconciliation Act of Internal Revenue Code had expired for all property 2003, P.L 108.27, (the "2003 Act") increased the first except for those provisions applicable to certain long- year federal depreciation deduction for certain qualified lived and transportation property. Check the De- property to 50%. partment of Finance website for any updates on The New York Liberty Zone generally encompasses an federal legislation affecting depreciation. area of the borough of Manhattan below Canal Street. The Job Creation and Worker Assistance Act of 2002, 'Qualified property' (as defined in IRC §168(k)(2)) gen- P.L 107.147, (the "Act") allows taxpayers an additional erally includes certain personal property acquired after 30 percent depreciation deduction in the first year "qual- September 10, 2001 and before January 1, 2005 and ified property is placed in service. The Act allows a placed in service after September 10, 2001 and before simlar additional 30 percent first-year depreciation de- January 1, 2005 or 2006 in certain i circumstances. The duction for "qualified New York Liberty Zone property" 2003 Act modified the definition of qualified property" and allows "qualified New York Liberty Zone leasehold to provide that to qualify for the 50% deduction, the improvements" to be depreciated over a five-year period property must be acquired after May 5, 2003 and before 00621510 SY3676 1.000 10 R66297 1608 208 EFTA00806619 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-204 SUPPORTING STATEMENTS PORTFOLIO INCOME INTEREST INCOME 17,910. TOTAL PORTFOLIO INCOME 17,910. OTHER DISTRIBUTABLE ITEMS LESS: SECTION 179 EXPENSE DEDUCTION 191,194. TOTAL OTHER DISTRIBUTABLE ITEMS -191,194. ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX 152,391. NYC UBT TWO TWELVE 24,570. CALIFORNIA LLC TAX 800. TOTAL ADDITIONS TO INCOME AND UBT 177,761. OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS 3,069,725. AMORTIZATION OF SECTION 754 GOODWILL 84,144. TOTAL OTHER ADDITIONS 3,153,869. OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 6,480. TOTAL OTHER SUBTRACTIONS 6,480. STATEMENT 1 SXX043 1.000 R66297 1608 209 EFTA00806620 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-204 SUPPORTING STATEMENTS FOR' NYC-2D4 SCHEDULE C - PARTNERSHIP INFORMATION PERCENTAGE OF IS INDIVIDUAL PARTNER'S PERCENTAGE OF TINE DEVOTED PTR A NYC RES PARTNER PARTNER DISTRIBUTIVE DISTRIBUTIVE NAME AND ADDRESS INTEREST % TO BUSINESS YES NO TYPE GEN LIM FEIN OR ESN SHARE SHARE CLAXON INC 42.000000 100.00 X c X 12.-3508512. 2,115,104. 41.999997 C/0 NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 PARTNERSHIP HOLDING CORP. 11.000000 100.00 X s X 11-3501977 1,706,797. 11.000002 C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10013 THE NILCOR GROUP, INC. 27.000000 100.00 X s X 11-3662040 1,406,307. 27.000001 C/O NEXT MANAGEMENT LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 10011 STATEMENT 2 R66297 1608 210 EFTA00806621 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC 204 PARTNER INFORMATION **INFORMATION FOR NYC RESIDENTS TO COMPLETE FORM IT-219** PARTNER NUMBER 1 PARTNER NAME AND I.D. CLAXON INC C/O NEXT MANAGEMENT LLC 13-3508513 NAME OF PARTNERSHIP NEXT MANAGEMENT, LLC PARTNERSHIP YEAR END 12/31/2015 EMPLOYER ID NUMBER 13-3495607 1. TOTAL NET TAX AFTER CREDITS (LINE 23) 130,319. 2. TOTAL UBT PAID CREDIT (LINE 20) 13,341. 3. ADD LINE 1 AND 2 143,660. 4. PERCENTAGE OF TOTAL DISTRIBUTIVE SHARES FROM NYC-204 41.999997 5. MULTIPLY LINE 3 BY LINE 4 60,337. STATEMENT 3 MUNI31.000 R66297 1608 211 EFTA00806622 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC 204 PARTNER INFORMATION **INFORMATION FOR NYC RESIDENTS TO COMPLETE FORM IT-219** PARTNER NUMBER 2 PARTNER NAME AND I.D. PARTNERSHIP HOLDING CORP. C/O NEXT MANAGEMENT LLC 13-3501977 NAME OF PARTNERSHIP NEXT MANAGEMENT, LLC PARTNERSHIP YEAR END 12/31/2015 EMPLOYER ID NUMBER 13-3495607 1. TOTAL NET TAX AFTER CREDITS (LINE 23) 130,319. 2. TOTAL UBT PAID CREDIT (LINE 20) 13,341. 3. ADD LINE 1 AND 2 143,660. 4. PERCENTAGE OF TOTAL DISTRIBUTIVE SHARES FROM NYC-204 31.000002 5. MULTIPLY LINE 3 BY LINE 4 44,535. STATEMENT 4 MUNI31.000 R66297 1608 212 EFTA00806623 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC 204 PARTNER INFORMATION **INFORMATION FOR NYC RESIDENTS TO COMPLETE FORM IT-219** PARTNER NUMBER 3 PARTNER NAME AND I.D. THE WILCOR GROUP, INC. C/O NEXT MANAGEMENT LLC 13-3682060 NAME OF PARTNERSHIP NEXT MANAGEMENT, LLC PARTNERSHIP YEAR END 12/31/2015 EMPLOYER ID NUMBER 13-3495607 1. TOTAL NET TAX AFTER CREDITS (LINE 23) 130,319. 2. TOTAL UBT PAID CREDIT (LINE 20) 13,341. 3. ADD LINE 1 AND 2 143,660. 4. PERCENTAGE OF TOTAL DISTRIBUTIVE SHARES FROM NYC-204 27.000001 5. MULTIPLY LINE 3 BY LINE 4 38,788. STATEMENT 5 MUNI31.000 R66297 1608 213 EFTA00806624 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-114.7 SUPPORTING STATEMENTS NYC 114.7 - COMPUTATION FOR LINE 7 DISTRIBUTING PARTNERSHIP NAME TWO TWELVE MANAGEMENT, LLC EIN NUMBER 20-1354409 1. TAXABLE BUSINESS INCOME 3,591,508. 2. LESS DISTRIBUTIVE SHARE OF INCOME 345,526. 3. LINE 1 LESS LINE 2 3,245,982. 4. TAX: 4% OF LINE 3 129,839. 5. SALES TAX ADDBACK 6. TOTAL TAX BEFORE BUSINESS CREDIT 129,839. STATEMENT 6 MUNI31A00 R66297 1608 214 EFTA00806625 NEXT MANAGEMENT, LLC 13-3495607 FORM NYC-3992 SUPPORTING STATEMENTS NEI/ YORK CITY DEPRECIATION SCHEDULE Al A.DESCRIPTION OF ASSET B.CLASS [-DATE PUT D.COST E.ACCUMULATED F. FED. ACRS G.NETNOD N.LIFE 1.22C OF PROP. EN SERVICE OR BASIS DEPRECIATION DEDUCTION \RATE DEPR. LEASEHOLD IKPRO-NY 14,ACRS 06/22/2003 103,492. 30,632. 1,327. N39 2,654. LEASEHOLD IIPRO-NY NACRS 07/24/2003 26.020. 7.666. 134. N39 669. LEASEHOLD IIPRO-NY 14,ACRS 08/12/2003 17.758. 5.176. 228. N39 455. LEASEHOLD IIPRO-NY 14,ACRS 09/12/2003 128,435. 37,185. 1,647. N39 3,293. LEASEHOLD IKPRO-NY 14,ACRS 10/28/2003 16.767. 4.820. 215. N39 430. LEASEHOLD IKPRO-NY 14,ACRS 11/19/2003 41.921. 11,971. 532. N39 1,076. LEASEHOLD IMPROVE-NY 14,ACRS 01/16/2004 5,649. 1.589. 72. N39 145. LEASEHOLD IMPROVE-NY 14,ACRS 02/17/2004 7,686. 2.143. 99. N39 197. LEASEHOLD IMPROVE-NY 14,ACRS 12/31/2004 25.000. 17,499. 233. N15 15.000 1,665. LEASEHOLD 1NP-NY 14,ACRS 02/12/2008 11.736. 5.382. 191. N15 722. LEASEHOLD 1NP-NY 14,ACRS 12/19/2008 16.000. 6.535. 533. N15 1,066. SOFTWARE 14,ACRS 01/22/2015 155,603. 101.575. CS 3.000 47,545. TOTALS 556,187. 130.598. 107.792. 59,977. 96 STATEMENT 7 SXX063 1.000 R66297 1608 215 EFTA00806626 NEW YORK CITY 13-3508513 SCHEDULE K-1 EQUIVALENT Partner's Share of Income For calendar year 2015 or liscal year beginning ending LARTNER # 1 13-3495607 CLAXON INC Partners identification number Partnership's identification number NEXT C/O MANAGEMENT LLC Partners name, address, and ZIP code Partnership's name, address, and ZIP code 15WATTS STREET 6THFLOOR NEWYORK, NY10013 NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1 0013 1,014,678 SCHEDULE B - Computations Amount Part 1 j items of Income, gain, loss or deduction I 1. Ordinary income (loss) from federal Form 1065, line 22 (see instructions) 1. 7,522. 2. Net Income (loss) from all rental real estate activity not included in Form 1065. line 22. but Included on federal Schedule K, , 2. 3. All portfolio income such as interest, dividends, royalties, annuity income and gain (loss) on the disposition of property not included in Form 1065. line 22 but included on federal Sch. K (attach soh. of &porno& income) 3. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 43,401 5. Payments to current and retired partners included in other deductions from federal Form 1065, line 20 5. 6. Other income not included in Form 1065, line 22 but included on federal Sch. K (attach soh. of other Income). 6. 7. Charitable contributions from federal Schedule K 7.I1 8. Other deductions included in Form 1065, line 22 but not allowed for UBT (attach sched.) (see inst.). 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) 10. Total federal income (combine lines 1 through 9, do not include line 7) 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property SEE. STATEMENT .1. . . .9. 10. -80,301 941,90 situated outside NYC if included in line 10 above (attach schedule) (see instructions) 12. Total income before New York City modifications (combine line 10 and knell) Part 2 I New York City modifications 1 ADDITIONS and SUBTRACTIONS 13. All income taxes and Unincorporated Business Taxes 11. 12 941,90 74,659 SEE. STATEMENT .1.. . 13. 14. (a) Relocation credits 14a. (b) Expenses related to exempt income (c) Depreciation adjustments (see Instr. and attach Form NYC-399) (d) Exempt Activities 14b. 14c. 14d. 45,273 1,324,6 15. Other additions (attach schedule) (see instructions) 16. Total additions (add lines 13 through 15) 17. All income tax and Unincorporated Business Tax refunds (included in part 1) SEE. STATEMENT .1. 15. 16. 17. 1,444,5 18. Wages and salaries subject to federal jobs credit(attach federal Form 5884) 19. Depreciation adjustment (see instr. and attach Form NYC-399) 20. Exempt income (included in part 1, line 10) (See instr.) 21. 50% of dividends (see instructions) 18. 19. 20. 21. 25,190 22. Exempt Activities 23. Other subtractions (attach schedule) (see instructions) 24. Total subtractions (add lines 17 through 23) SEE. STATEMENT .1. 22. 23. 24. 2,722. 27,912 1,416,6 25. Combine lines 16 and 24 26. Total income (combine lines 12 and 25) 27. Less: Charitable contnbutions (not to exceed line 7, or 5% of line 26, whichever is less) 28. Distributive Income (line 26 less line 27) 25. 26. 27. 28. 2,358,5 43,401 2,315,1 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from Investment capital (include non-exempt governmental obligations) (denim on skier) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for investment 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. (f) Deductions directly or indirectly attributable to investment capital 29f (g) Interest on bank accounts included in income reported on line 29d .29g. 30a. Investment income (line 29e less line 291 but not more than line 28) (enter on page 1. Schedule A. line 7) 30a. 30b. Investment income to be allocated (enter on page 1, Schedule A, Line 7a) (see instructions), 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line 1) 30b. 31. 2,315,1 503675 3.000 R66297 1608 216 EFTA00806627 NEXT MANAGEMENT, LLC PARTNER # 1 13-3495607 NEW YORK CITY SCHEDULE K-1 EQUIVALENT, SUPPORTING SCHEDULES PART 1, LINE 3 - PORTFOLIO INCOME INTEREST INCOME 7,522. TOTAL PORTFOLIO INCOME 7,522. PART 1, LINE 9 - OTHER ITEMS LESS: EXPENSE DEDUCTION FOR SECTION 179 80,301. TOTAL OTHER ITEMS -80,301. PART 2, LINE 13 - ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX 64,004. NYC UBT TWO TWELVE 10,319. CALIFORNIA LLC TAX 336. TOTAL ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES 74,659. PART 2, LINE 15 - OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS 1,289,285. AMORTIZATION OF SECTION 754 GOODWILL 35,340. TOTAL OTHER ADDITIONS 1,324,625. PART 2, LINE 23 - OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 2,722. TOTAL OTHER SUBTRACTIONS 2,722. STATEMENT 1 SX.X083 1.000 R66297 1608 217 EFTA00806628 3-34956L0ARTNER 7 # 2 NEW YORK CITY Partner's Share of Income 13-35 0 1 97 For calendar year 2015 or fiscal year beginning SCHEDULE K-1 ending EQUIVALENT Partners identification number Partnership's identification number 1 PARTNERSHIP HOLDING CORP. Partners name, address, and ZIP code NEXT C/O 15 MANAGEMENT WATTS STREET LLC Partnership's name, address, and ZIP code NEXT MANAGEMENT, LLC 6TH FLOOR NEWYORK, NY10013 SCHEDULE B - Computations 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1 0013 Amount Part 1 I Items of Income, gain, loss or deduction 1. Ordinary income (loss) from federal Form 1065, line 22 (see instructions) 2. Net Income (loss) from all rental real estate activity not included in Form 1065. line 22. but Included on federal Schedule K, 1. , 2. 748,93 3. All portfolio income such as interest, dividends, royalties, annuity income and gain (loss) on the disposition of property not included in Form 1065. line 22 but included on federal Sch. K (attach soh. of &porno& income) 4. Guaranteed payments to partners from federal Schedule K (see instructions) 3. 4. 5,552. 32,034 5. Payments to current and retired partners included in other deductions from federal Form 1065, line 20 5. 6. Other income not included in Form 1065, line 22 but included on federal Sch. K (attach sch. of other Income). 6. 7. Charitable contributions from federal Schedule K 7.I1 8. Other deductions included in Form 1065, line 22 but not allowed for UBT (attach sched.) (see inst.). 8. 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) 10. Total federal income (combine lines 1 through 9, do not include line 7) 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property SEE. STATEMENT .1. . . .9. 10. -59,271 695,212 situated outside NYC if included in line 10 above (attach schedule) (see instructions) 12. Total income before New York City modifications (combine line 10 and tine 11) Part 2 I New York City modifications 1 ADDITIONS and SUBTRACTIONS 13. All income taxes and Unincorporated Business Taxes 11. 12 695,212 55,107 SEE. STATEMENT .1. 13. 14. (a) Relocation credits 14a. (b) Expenses related to exempt income (c) Depreciation adjustments pee Instr. and attach Form NYC-399) (d) Exempt Activities 14b. 14c. 14d. 33,415 977,69 15. Other additions (attach schedule) (see instructions) 16. Total additions (add lines 13 through 15) 17. All income tax and Unincorporated Business Tax refunds (included in part 1) SEE. STATEMENT .1. 15. 16. 17. 1,066,2 18. Wages and salaries subject to federal jobs credit(attach federal Form 5884) 19. Depreciation adjustment (see instr. and attach Form NYC-399) 20. Exempt income (included in part 1, line 10) (seeinstr.) 21. 50% of dividends (see instructions) 18. 19. 20. 21. 18,594 22. Exempt Activities 23. Other subtractions (attach schedule) (see instructions) 24. Total subtractions (add lines 17 through 23) SEE. STATEMENT .1, 22. 23. 24. 2,008. 20,602 1,045,6 25. Combine lines 16 and 24 26. Total income (combine lines 12 and 25) 27. Less: Charitable contnbutions (not to exceed line 7, or 5% or line 26, whichever is less) 28. Distributive Income (line 26 less line 27) 25. 26. 27. 28. 1,740,8 32,034 1,708,7 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from investment capital (include non-exempt governmental obligations) Menem on sidet) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for investment 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. (f) Deductions directly or indirectly attributable to investment capital 29f (g) Interest on bank accounts included in income reported on line 29d , .29g. 30a. Investment income (line 29e less line 29f but not more than line 28) (enter on page 1. Schedule A. line 7) , 30a. 30b. Investment income to be allocated (enter on page 1, Schedule A, Line 7a) (see instructions), 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line 1) 30b. 31. 1,708,7 503675 3.000 R66297 1608 218 EFTA00806629 NEXT MANAGEMENT, LLC PARTNER # 2 13-3495607 NEW YORK CITY SCHEDULE K-1 EQUIVALENT, SUPPORTING SCHEDULES PART 1, LINE 3 - PORTFOLIO INCOME INTEREST INCOME 5,552. TOTAL PORTFOLIO INCOME 5,552. PART 1, LINE 9 - OTHER ITEMS LESS: EXPENSE DEDUCTION FOR SECTION 179 59,271. TOTAL OTHER ITEMS -59,271. PART 2, LINE 13 - ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX 47,241. NYC UBT TWO TWELVE 7,617. CALIFORNIA LLC TAX 249. TOTAL ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES 55,107. PART 2, LINE 15 - OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS 951,614. AMORTIZATION OF SECTION 754 GOODWILL 26,085. TOTAL OTHER ADDITIONS 977,699. PART 2, LINE 23 - OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 2,008. TOTAL OTHER SUBTRACTIONS 2,008. STATEMENT 1 SX.X083 1.000 R66297 1608 219 EFTA00806630 NEW YORK CITY SCHEDULE K-1 EQUIVALENT 3682 0 60 Partner's Share of Income For calendar year 2015 or liscal year beginning ending LARTNER # 3 3-3495607 THEWILCOR GROUP, INC. Partners identification number 13— Partnership's identification number 1 NEXT C/O MANAGEMENT LLC Partners name, address, and ZIP code Partnership's name, address, and ZIP code 15WATTS STREET 6THFLOOR NEWYORK, NY10013 NEXT MANAGEMENT, LLC 15 WATTS STREET 6TH FLOOR NEW YORK, NY 1 0013 652,293 SCHEDULE B - Computations Amount Part 1 I Items of Income, gain, loss or deduction 1. Ordinary income (loss) from federal Form 1065, line 22 (see instructions) 1. 4,836. 2. Net Income (loss) from all rental real estate activity not included in Form 1065. line 22. but Included on federal Schedule K. 2. 3. All portfolio income such as interest, dividends, royalties, annuity income and gain (loss) on the disposition of property not included in Form 1065. line 22 but included on federal Sch. K (attach soh. of &porno& income) 3. 4. Guaranteed payments to partners from federal Schedule K (see instructions) 4. 27,900 5. Payments to current and retired partners included in other deductions from federal Form 1065, line 20 5. 6. Other income not included in Form 1065, line 22 but included on federal Sch. K (attach sch. of other Income). 6. 7. Charitable contributions from federal Schedule K 7.I1 STATEMENT -51,622. SEE. 8. Other deductions included in Form 1065, line 22 but not allowed for UBT (attach sched.) (see inst.). 8. 605,506 9. Other income and expenses not included above that are required to be reported separately to partners (attach schedule) (see instructions) .1. . . .9. 10. Total federal income (combine lines 1 through 9, do not include line 7) 10. 11. Subtract net income or gain (or add net loss) from rental, sale or exchange of real property situated outside NYC if included in line 10 above (attach schedule) (see instructions) 605,506 47,995. 11. SEE. STATEMENT .1.. 12. Total income before New York City modifications (combine line 10 and fine 11) 12 Part 2 I New York City modifications 1 ADDITIONS and SUBTRACTIONS 13. All income taxes and Unincorporated Business Taxes 13. 29,104. 14. (a) Relocation credits 14a. (b) Expenses related to exempt income 14b. SEE. STATEMENT 851,545 (c) Depreciation adjustments pea Instr. and attach Form NYC-399) 14c. 928,644 (d) Exempt Activities 14d. 15. Other additions (attach schedule) (see instructions) .1. 15. 16. Total additions (add lines 13 through 15) 16. 16,193. 17. All income tax and Unincorporated Business Tax refunds (included in part 1) 17. 18. Wages and salaries subject to federal jobs credit(attach federal Form 5884) 18. 19. Depreciation adjustment (see instr. and attach Form NYC-399) 19. 20. Exempt income (included in part 1, line 10) (saeMoir ) 20. SEE. 1,750. STATEMENT 910,701 21. 50% of dividends (see instructions) 21. 17,943. 22. Exempt Activities 22. 23. Other subtractions (attach schedule) (see instructions) .1. 23. 1,516,207 24. Total subtractions (add lines 17 through 23) 24. 27,900. 25. Combine lines 16 and 24 25. 1,488,307 26. Total income (combine lines 12 and 25) 26. 27. Less: Charitable contnbutions (not to exceed line 7, or 5% of line 26, whichever is less) 27. 28. Distributive Income (line 26 less line 27) 28. 29. Investment income - (complete lines a through g below) (see instructions) (a) Dividends from stocks held for investment 29a. (b) Interest from investment capital (include non-exempt governmental obligations) oeuvre on sidet) 29b. (c) Net capital gain (loss) from sales or exchanges of securities held for investment 29c. (d) Income from assets included on line 3 of Schedule D 29d. (e) Add lines 29a through 29d inclusive 29e. (f) Deductions directly or indirectly attributable to investment capital 29f (g) Interest on bank accounts included in income reported on line 29d , .29g. 1,488,307 30a. Investment income (line 29e less line 291 but not more than line 28) (enter on page 1. Schedule A. line 7) , 30a. 30b. Investment income to be allocated (enter on page 1, Schedule A, Line 7a) (see instructions), 30b. 31. Business income (line 28 less line 30) (enter here and transfer this amount to page 1. Sch. A. line 1) 31. 503675 3.000 R66297 1608 220 EFTA00806631 NEXT MANAGEMENT, LLC PARTNER # 3 13-3495607 NEW YORK CITY SCHEDULE K-1 EQUIVALENT, SUPPORTING SCHEDULES PART 1, LINE 3 - PORTFOLIO INCOME INTEREST INCOME 4,836. TOTAL PORTFOLIO INCOME 4,836. PART 1, LINE 9 - OTHER ITEMS LESS: EXPENSE DEDUCTION FOR SECTION 179 51,622. TOTAL OTHER ITEMS -51,622. PART 2, LINE 13 - ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES NYC UNICORPORATED BUSINESS TAX 41,146. NYC UBT TWO TWELVE 6,634. CALIFORNIA LLC TAX 215. TOTAL ALL INCOME TAXES AND UNINCORPORATED BUSINESS TAXES 47,995. PART 2, LINE 15 - OTHER ADDITIONS INDIRECT COMPENSATION TO PARTNERS 828,826. AMORTIZATION OF SECTION 754 GOODWILL 22,719. TOTAL OTHER ADDITIONS 851,545. PART 2, LINE 23 - OTHER SUBTRACTIONS DEPRECIATION ADJUSTMENT FROM PASSTHROUGH 1,750. TOTAL OTHER SUBTRACTIONS 1,750. STATEMENT 1 SX.X083 1.000 R66297 1608 221 EFTA00806632