Replies to post #232 on Medley Management Inc. (MDLM)

[db7]

assuming our new, forward-looking payment date is mid-November'ish(?)

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G. The penalties ordered in Subsections A through C above shall be offset, in the
order set forth in Subsection H below, by the amount of any cash payments made by any of the
Respondents, as described in Subsection E, that are subsequently distributed to bondholders and
documented as set forth in Subsection F within 180 days of entry of this Order. Payment of
attorneys’ fees or any other costs of administering the distribution to bondholders in the
Bankruptcy Case, as well as any costs incurred by the notes indenture trustee in connection with
the Bankruptcy Case, shall not be deemed payment to bondholders of Medley LLC for purposes
of the civil penalty offsets set forth in this Subsection and in Subsection H below.
H. Upon the earlier of 180 days from the date of entry of this Order, or the receipt by
the Commission’s counsel of evidence documenting amounts paid by Respondents and
distributed to bondholders in the Bankruptcy Case in accordance with Subsections E and F
above, the Commission’s counsel shall calculate the amount by which each Respondent’s
penalty may be offset. Such offsets shall be applied in the following manner: 1) the first $4
million shall be credited toward the penalty to be paid by MDLY, set forth in paragraph A.3
above, regardless of which Respondent paid such amount; 2) any amounts greater than $4
million shall be credited two thirds toward the penalty to be paid by Respondent B. Taube, set
forth in paragraph B.3 above, and one third toward the penalty to be paid by Respondent S.
Taube, set forth in paragraph C.3 above.
I. If, upon calculation of the offsets as set forth in Subsection H above, any
Respondent’s civil penalty amount is not offset in full by the payments made and distributed to
bondholders in the Bankruptcy Case, the Commission’s counsel shall notify the Respondent(s) of
the amount(s) not offset. Any Respondent who receives such a notice shall, within 14 days of
receiving the notice, remit to the Commission the outstanding balance of such Respondent’s civil
penalty.

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