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Before I go, just wanted to give you general numbers to think about on RSTP in case you want to come to some resolution on this right after we get back.

RSTP I, Alpha and Bravo (the three Counsyl only vehicles that are closed) pay out $476,000 a year in mgmt fees. The RSP share of that would be $238,000 and the DC office share would be $119,000.

RSTP II currently is paying $540,000 a year in mgmt fees.

If we made no changes to RSTP I, Alpha and Bravo and decided to let John, Neil and Rob have all the mgmt fees from RSTP II mgmt fee splits would break out this way:

RSP (NY and DC): $238,000 a year ($20K a month total or $10K a month to DC) - not a lot but even a steady $10K a month to go to rent, etc. isn’t bad.

John, Neil and Rob (and Will?) would have $778,000 a year to split amongst themselves assuming not another dollar is raised. Assuming another $25m (which I think is the likeliest scenario) is raised for RSTP II, that number would increase to $1,278,000 a year. If, as you mentioned, you wanted management fees to kick back in above a certain number that might be the place at which to do it.

And of course there is also the complete break approach in which all of these numbers become moot.

Just thought the numbers would be helpful if you are thinking about this stuff.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
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