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We didn't discuss this and I should get back to John soon. At first, I was a little taken aback by the splits but he actually asked for 60/40 first and I got him down from there. I do think this may be a little bit of a reason to do more than just a referral fee here. So, I am OK with 70/30 and will certainly push back on the 65/35 success fee split and say both should be 70/30 if you want. Mainly because I think the relationship can bear fruit in other areas down the line, e.g. in Africa if we choose to focus there. In addition, we already put John in touch with our Alt Inv clients as he had a German Family Office who was looking for AI investments in the U.S. I think he has an intriguing developing world network. Finally, I see this relationship to be more beneficial than the Transatlantic one and while we now admit we made a mistake, we are doing 50/50 there. While we didn't know it, TA has become a referral relationship with more work required on our end as far as client maintenance. I think in the way it will work with John is that we have less work to do vis a vis the client than we do with TA. Again, TA may not be the best example, but I am just thinking about the return we get for how much work it will take. What do you think?


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 5, 2011, at 1:04 PM, Hunter Biden wrote:

He already has OAS as a client so him doing most or substantial amount of client interface will not work in my opinion- and 30/35% is way outside of any referral fee we should ever pay.

R. Hunter Biden
Rosemont Seneca Partners
202-333-1880

On Aug 5, 2011, at 10:16 AM, Eric Schwerin <eschwerin@rosemontseneca.com> wrote:

> Talked to John this AM to confirm what we were splitting with him should OAS sign up with us which is hopefully looking positive.
>
> He would like (and I think it makes sense) to split any retainer 70/30 and then wanted split of any success fees, etc to be 65/35. Probably a tiny bit more generous than I would have proposed on the success fee side but I emphasized to him and he agreed that he would have to do a good deal of the client maintenance with OAS. I also told him we'd have to cut Jay and others in Colombia in and that would be taken off the top and our splits would be on the remainder.
>
> Bottom line - if OAS agrees to $25K/mo. for Colombia, it would be $17,500 a month for us. Success fees, equity on a $1 billion project would be all gravy.
>
> John also said that these splits shouldn't be a precedent for any work we may do together in Africa. I would assume it would be more like 50/50 there.
>
> Any disagreements?
>
>
>
> 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.
>