Subject: RSTP Talking Points
From: "Eric Schwerin" <[email-masked]>
To: "Hunter Biden" <[email-masked]>
Date: Wed, 8 Oct 2014 12:29:23 -0400

Admin:

Going forward, we should have:

A monthly spreadsheet that is circulated showing cash in reserve for expenses, expenses accrued and any fees received.
Before any distributions of management fees there should be another spreadsheet circulated with the proposed total management fees to be distributed vs. amount to be held back for expenses.
Ideally, these decisions could be made by a subset of the partners in the form of a management committee (as a suggestion, John, Neil, Devon and me as the four people who maybe have an aptitude about this stuff).   Also, I believe in the past, Devon has offered up Marianna to handle the Admin side of the books, etc. so John can focus on other things.
RSTP should get a credit card account so partners can pay for travel and people aren’t putting them on their personal cards and then having to get reimbursed.  Reimbursements are happening in a timely manner, but at the very least RSTP should be accruing points for all the travel being done that could then be used for additional travel or purchases.  It also saves time and allows all RSTP expenses to be in one credit card statement.

Expenses:

Our monthly nut to operate the DC office is approx. $55,000.   The largest expenses within that number include rent, health insurance, telecom/office equipment rental, travel and entertainment and Katie and Joan’s salaries.   Right now, with RSTP accounting for approximately a third of the revenue between RSA and RSTP, it would be $18,150 a month attributable to RSTP.  
This can be re-evalutated after we close the fund at the end of the year and know what our fees will look like and what the percentage of revenue attributable to RSTP is but it certainly wouldn’t be less than a third and would be more like half.  
Operationally, it will be difficult to have RSTP cut a check to the landlord for a third of our rent, etc.  The easiest thing in my mind is to come up with a number that would be allocated to the DC office and that amount would be paid to RSA as an “office expense” reimbursement off the top.  Probably the same for SF and NY - no idea if it is the same number for each or not.   
One expense we should move off of the RSA books and over to RSTP is Neil’s health insurance (and maybe Rob’s?).  We should just have them continue to be on our plan but like we did with NY for awhile they would just cut a check directly to CareFirst for the RSTP share.  Not sure how John or Will are covered health insurance wise but they should feel free to join our plan too.
Management fee percentages should be paid after all expenses in the agreed upon percentages. 

Proposed New GP Splits (based on our last conversation).  FYI, there would still be 5% of management fee income to be distributed but this could be allocated to expenses. 

GP Share	Fee Income Share
Hunter Biden	15.0%	15.0%
Devon Archer	15.0%	15.0%
John DeLoche*	15.0%	15.0%
Will Lee	15.0%	15.0%
Neil Callahan*	15.0%	15.0%
Rob Walker	12.0%	12.0%
Eric Schwerin	8.0%	8.0%
Chris Heinz	2.5%	0.0%
Arlene Busch	2.5%	0.0%
Total	100.0%	95.0%

Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked]
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