Xin-

After conferring with Devon, we wanted to take care of the following outstanding items as it relates to BHR, assuming it all meets with your approval.

1) Please consider Devon’s resignation letter that was emailed to you and which you reference below as a final version and please have his resignation take effect immediately.

2) Please disregard the letter which appoints Hunter to Devon’s Board seat. For the time being, we will leave Devon’s Board seat vacant.

3) We should begin the process to transfer the 20% of the shares of BHR owned by RSB immediately so that 10% will be owned by Skaneateles, LLC (of which the beneficial owners are Hunter Biden and Eric Schwerin) and 10% will be owned by Ulysses Diversified, Inc. (of which the beneficial owner is Devon).

4) Finally, we should begin the process to amend the Articles of Association so that the two Board Seats currently designated to RSB will be designated to Skaneateles, LLC and Ulysses Diversified, Inc, with each entity having a separate right to appoint one director. The three U.S. entities (Ulysses, Skaneateles and Thornton) will jointly designate a Vice-Chair.

I know Devon, Hunter and Jim have all agreed to the above and I am copying Jim Bulger, Hunter Biden, Eric Schwerin and George Mesires as well.

Thanks for your patience on this. Please let us know what additional information you need from us to affect the changes above.

Matthew L. Schwartz
BOIES, SCHILLER & FLEXNER LLP
212-303-3646 (Direct)
646-337-5787 (Mobile)

Dear Matthew,

I received the attached from Devon in relation to his resignation from BHR’s board of directors and RSB’s appointment of Hunter Biden as his replacement.  Please note that Hunter is an existing director of BHR.   Devon mentioned that you might need to further formalize the letters, however, we need to process the resignation at the earliest and I would be grateful if you could confirm that the attached is in order.  Additionally, I would also be grateful for your instructions on the proposed transfer of RSB’s shareholding in BHR to Ulysses, the relevant transfer documents as well as the incorporation documents of Ulysses would be required.  Upon your confirmation, we will proceed to make the relevant filings with the PRC regulators. 

Xin

Dear Matthew,

I understand from Devon that he has given instructions for Boies to effect his resignation from BHR’s board and the amendment of his shareholding entity from the existing Rosemont Seneca Bohai LLC to Ulysses.  As previously discussed on multiple occasions, please let us know what you need from our end to resolve these issues at the earliest.  We have been fending inquiries regarding RSB and Devon’s involvement in ongoing SEC and Justice Department investigations and we urgently need to remove Devon for the time being from our director roster to avoid interruptions to BHR businesses. 

Thanks.

Xin

Dear Matthew and George,

I trust you have had a chance to speak to your respective clients since my last email and I am wondering if any updates are available on the matters raised therein.

Xin

Dear Matthew and George,

Hope all is well since we last spoke.  I am writing to follow up on the status of Devon’s resignation from BHR’s board / remuneration committee and the appointment of a replacement.

On a related note, I would also like to understand how Devon would like to deal with his shareholding in BHR through Rosemont Seneca Bohai.  By way of background, we underwent a shareholder registration amendment last year with the Chinese regulators to change Devon’s shareholding entity from RST to the existing Rosemont Seneca Bohai (the process took altogether more than a year), we were subsequently instructed earlier this year to file another amendment to change Rosemont Seneca Bohai to Ulysses (an entity owned 100% by Devon) but that has been put on hold on account of present circumstances.  From BHR’s perspective, we ask the relevant parties to consider, for the time being, a transfer by Rosemont Seneca Bohai of its shareholding to another entity (whether it is to RSP or Thornton or the management team) to avoid potential complications for our U.S. M&A deals and/or U.S. fundraising activities.  

Happy to discuss over a call.

Xin

Xin Wang 王昕

Bohai Harvest RST (Shanghai) Equity Investment Fund Management Co., Ltd.

渤海华美（上海）股权投资基金管理有限公司

Tel: +86 (10) 5969 5858 ext 816

Cel: +86 139 1162 0708

xin.wang@bhrpe.com