EMAIL DETAILS

Zac-

First and most importantly, congrats on the success you are having. Great to hear.

Wednesday at 3pm EDT works great for Arlene and me. If it works for you, let's use the following call-in number: 202-446-0483, passcode 333188.

Look forward to catching up.

Best,

Eric


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
P Consider the environment before printing this email.

On Aug 1, 2011, at 9:05 AM, Zachary Wydra wrote:

Eric,

Thanks for getting back to me…..I’m around this week….would a call at 3 pm on either Wed. or Thurs. afternoon work for you…..if so, let me know which you prefer.

Strong momentum continues…..BMPEX is still ranked in the top 1% YTD and over the past 12 mos as of this morning. We are in the 8th inning of winning a new $150 mm institutional account from a large publically traded insurance company and last night Morningstar Magazine contacted me and indicated that they wanted to do a profile of both me and the Fund (should be a nice piece to put in front of prospects)….

My point here is to not express hubris at all, but just to say that I’m hopeful that we can work something out.....working together I believe that we can translate the momentum into significant success…..

Best,

Zac


Zachary A. Wydra
Partner
Beck, Mack & Oliver
360 Madison Ave.
NY, NY 10017
212-661-2640

From: Eric Schwerin [mailto:eschwerin@rosemontseneca.com]
Sent: Friday, July 29, 2011 4:12 PM
To: Zachary Wydra
Cc: Hunter Biden; Arlene Busch
Subject: Re: follow-up

Zac-

Thanks for your response. Sorry for the delay on our end replying to your email - Hunter has been traveling and Arlene and I wanted to sit down with him and discuss with him in person.

If you have time next week, perhaps Arlene and I could get on a call with you and give you our thoughts on the below arrangement.

Let us know what your schedule is like.

Best,

Eric


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
P Consider the environment before printing this email.

On Jul 22, 2011, at 2:43 PM, Zachary Wydra wrote:


Hunter / Eric,

Apologies for the delay in getting back to you….things have been busy on this end….but a good kind on busy.

I remain very hopeful that we can find a way to work together as I am confident that our approach to investing will be compelling to your contacts.

As an update, our recent performance has been outstanding. Year-to-date (thru 07/21/11) BMPEX (the Beck, Mack & Oliver Partners Fund on which I am the lead portfolio manager) is up 13.8% and is ranked in the top 1% of the Large / Blend Category by Morningstar and over the past 12 months BMPEX also is in the top 2% relative to its peer group of almost 2,000 mutual funds. This Fund is a proxy for our separate account portfolios.

As you know our long term equity investing track record is exceptional (see attached). Over the past 24 rolling 5 year periods we have outperformed the S&P 500 18 times (11 straight years ending 12/31/10) and had zero negative 5 year periods vs. the S&P 500 which has had 4 negative rolling 5 year periods. Our batting average is better over rolling 10 year periods, having outperformed the S&P 500 17 out of 19 years (our two years of underperformance coming during the peak of the internet bubble). Our lowest rolling 10 year return is up 42% vs. the S&P 500 which is down 13%.

After having done some research on payout structures for marketing professionals I have learned that the industry standard is 20% of the first year revenue, 10% of the second year revenue and 5% for each year following, as long as the account remains. Clearly, this is a departure from our originally discussed $300,000 annual flat fee.

While I’m not going to be able to sell a flat fee structure here amongst my partners, I’m willing to meaningfully increase the incentive based compensation after an account is earned. Meaning, I would advocate for a 30%, 20% and then 10% into perpetuity structure on the revenue from all assets raised.

I feel confident that we can have success working together and I would expect that your contacts will appreciate our fundamental approach to allocating capital.

Let me know if this structure is agreeable to you both…..I’m hopeful that we will have an opportunity to work together.

Best,

Zac


Zachary A. Wydra
Partner
Beck, Mack & Oliver
360 Madison Ave.
NY, NY 10017
212-661-2640


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CONFIDENTIALITY NOTICE: The information contained in this electronic mail message and any attachment is confidential, privileged and/or proprietary and is intended for the exclusive use of the addressee(s). Any use of this information by anyone other than the addressee(s) of this message is strictly prohibited. If you receive this transmission in error, please notify Beck, Mack & Oliver LLC by e-mail Compliance@beckmack.com or telephone 212-661-2640 and destroy the original transmission.