19. SUBSEQUENT EVENTS

On June 3, 2013, Silvercrest redeemed units from two former principals. In conjunction with this redemption, Silvercrest issued promissory notes with an aggregate principal amount of approximately $5,300, subject to downward adjustments to the extent of any breach by the holders of such note. The principal amounts of the notes were originally payable in four equal annual installments on each of June 3, 2014, 2015, 2016 and 2017. The principal amounts outstanding under these notes bear interest at the U.S. Prime Rate plus 1% in effect at the time payments are due. Silvercrest elected not to make the June 3, 2014 payment as it was assessing whether the former principals had complied with the note covenants and whether any reduction to these notes should be made.  In October 2014, Silvercrest and the two former principals agreed to certain reductions, totaling $1,722, in their respective promissory notes, based upon a review of the note covenants.  As a result, the principal amounts of the notes of $3,578 are payable in four equal installments of approximately $900 on November 1, 2014, and on each of August 1, 2015, 2016 and 2017.