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Jimmy / Devon:


In response to your queries relating to the 2015 Budget, we will not be amending the 2015 Budget as presented to the Board at the February board meeting but the following should be noted:


1. BHR’s 2015 income will be marginally impacted. We lost out on a one-time US$7.5mm management fees (payable in equal amounts over 3 years) as a result of Ding Feng defaulting on their RMB2.25billion subscription, however, we managed to raise RMB200mm of replacement funds for which we have already received RMB2 mm in management fees for 2015 (and will receive an additional 6.4mm over the next two years). All in all, we have not suffered any material loss of income for 2015

2. Expenses-wise, we foresee additional legal expense in the approximate range of RMB4,500,000, current income is sufficient to accommodate such additional expenses

3. As indicated previously, we are actively pursuing all channels of communication with Sinopec with the view of settling any claims they might have against us. We will keep you updated

4. Aside from a recent VP joining us from CITIC Securities, we have no plans to make any additional hires for 2015


Hope this clarifies. Happy for you to pass this information on to the others whom I have missed on this email.


Xin


发件人: jbulger123@gmail.com [mailto:jbulger123@gmail.com] 代表 James Bulger
发送时间: Wednesday, March 25, 2015 7:36 AM
收件人: 王昕
抄送: Devon Archer; Jason Zhu; Jonathan.li; Hunter Biden
主题: Re: 2015 BHR budget


Xin

Thank you for sending the budget over to us. Please provide an updated version so we can see how the reduced fee on the SINOPEC deal financially impacts the firm. I would also like to see the how the expense side is affected, for instance we are surely incurring more legal expenses due to that LP's actions

It is important for us to be able to see how the firm is being impacted financially by that LP breaking his contract with us.

I copied Hunter on this email just to streamline communications

Thanks again for your attention to this matter Xin much appreciated

Regards

Jimmy

On Tuesday, March 24, 2015, 王昕 <xin.wang@bhrpe.com <mailto:xin.wang@bhrpe.com> > wrote:

Jimmy and Devon – as promised, here is the 2015 BHR budget as presented to the board at the February 5 board meeting and I confirm that no adjustments have been made thereto. Any questions, let us know.


Xin


Xin Wang 王昕

Managing Director

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

<javascript:_e(%7B%7D,'cvml','xin.wang@bhrpe.com');> xin.wang@bhrpe.com


--
James J. Bulger
Chairman
Thornton Group LLC
14 Beacon Street, Suite 804A
Boston, MA 02108
Office tel: 617.248.9440