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H and D-

Talked to John DeLoche this afternoon re: economics. Told him they could have 60% of mgmt fees, but we wanted 50% equity and carry. He says he and Lara feel strongly about each of them having 20% of the carry and the GP. I told him our reasoning for wanting 50% (giving them the RS brand and needing us to be incentivized enough to make it work) and we agreed to think about it further and get back in touch next week. The one concession he made was that even though we are going to take the advisory services off the table, if we did sign up any portfolio companies we could take the entire retainer and they would take nothing.

Not sure what others think, but I am not sure 40% is the right number for us to be at. I can give you both more color by phone.

Let's discuss.

Eric


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