Subject: RSTP Fee Redistribution
From: "Eric Schwerin" <[email-masked]>
To: "Hunter Biden" <[email-masked]>
Date: Wed, 28 Jan 2015 16:44:37 -0500

This is just a back of the napkin calculation (and I included a reduction if you removed yourself from RSTP II - not sure if that is what you had in mind or not):

RSTP I, Alpha, Bravo, II

Total Fees = ~$1,000,000

Contractual Splits

RSP =50%

John = 16.67%

Neil = 16.67%

Will = 16.67%

If Rob is shared equally by RSP and (J/N/W) at $150,000/yr., that is the equivalent of approx.. 15%.   That means, RSP is reduced by 7.5% and J/N/W are reduced by 7.5%, leading to the following splits.

RSP = 42.5%  (This may be where John got the 21.25% for “DC” that he quoted you).

John= 14.17%

Neil = 14.17%

Will = 14.17%

Rob = 15%  (Clearly, Rob isn’t getting more than John, Neil and Will, but the management fees aren’t exactly $1m so the percentages would change slightly to even it out amongst the four of them.  Just showing how it does in fact make sense that John was getting that 21.25% number possibly from Rob getting $150K a year.)

One possible way to do this…….

RSTP I, Alpha and Bravo split 42.5%/57.5%  (Total Fees $476,000)

RSP (42.5%) = $202,3000

J/N/W/R (57.5%) = $273,700

If RHB’s RSTP II share is redistributed and assuming RHB has 16.25% of RSTP I, Alpha and Bravo (which means RSP share is split Devon 16.25/Hunter 16.25 and EDS 10) and that 16.25% for RSTP II were redistributed amongst the partners that means a 7.5% reduction for RSP in RSTP II would be fair.

RSTP II  (Total Fees = $540,000)

RSP/Devon (35%) = $189,000

J/N/W/R (75%) = $405,000

Total Fees to RSP for both = $391,300

Total Fees to J/N/W/R for both = $678,700 

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