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Hunter
Good email fair and balanced questions
I will be on the call tonight at 8:30 looking forward to it
Let me know if you need the call in number or if you want to talk beforehand
Devon said he was going to join hope he does
Thanks
Jimmy

On Thursday, December 11, 2014, Hunter Biden <hbiden@rosemontseneca.com>
wrote:

> Jason:
>
>
> Many thanks for sending these documents around. I have reviewed them and I
> have some questions that are both general and specific in scope. I thought
> it might be helpful if I circulated my questions in advance of the board
> meeting so that the BHR team may be prepared to address these questions
> during the board meeting and so that other members of the board could
> consider them as well.
>
>
> *General Questions/Comments:*
>
> 1. Proposals such as these that significantly affect the bottom line
> of the Fund become difficult to evaluate without forward looking financial
> forecasts that clearly delineate the effect of the proposed board action. I
> realize that financial forecasts have sometimes been prepared on an ad hoc
> basis and that reference is made in the board document to projected fund
> revenue. However, as a board member I would like to see financial reporting
> which is updated on a monthly basis that outlines:
>
> a. Previous expenditures to date,
>
> b. Projected revenues and expenses going forward for some time
> period (maybe 12 months?), and
>
> c. Projected dividends and payments to shareholders.
>
> It is seemingly necessary for someone at the Fund to be specifically
> delegated with preparing this material on a monthly basis.
>
> 2. In furtherance of above it might be necessary for the Fund to
> prepare a business plan so that the context of certain executive actions
> may be clearer. Specifically, the first board action alludes to increasing
> the personnel from the current 18 employees to up to 32 employees in 2015.
> This causes me to wonder:
>
> a. What is the rationale of the expansion?
>
> b. Under what circumstances will increasing the staff size be
> necessary?
>
> c. Will significant expansion be subject to board approval?
>
>
> A business plan or some sort of memorandum might provide some context so
> that I can better evaluate proposals along these lines as they come up.
>
>
> 3. A lot of our efforts are predicated on securing a large Chinese
> limited partner for our cross-border fund in the near future. To that end,
> can we discuss in detail the Fund’s fundraising efforts? Specifically, can
> we discuss Guoxin and other entities? What is the current status of those
> talks and what is the outlook?
>
>
> 4. What is the status of Sinopec? When do we expect that deal to be
> approved by the Minister of Commerce and when can the Fund start collecting
> management fees? What sort of carry will the Fund be able to participate in
> with regard to this deal?
>
>
> *Specific Questions/Comments:*
>
> *Proposal 1: Compensation Adjustment*
>
> 1. Can you confirm that the increase of compensation from the 25th percentile
> to the 50th percentile (as discussed in the McLagan report) is subject to
> Board approval?
>
> 2. Will the total bonus pool be subject to board approval?
>
> 3. In line with what was asked above, to what degree will the
> expansion of the staff from 18 to 32 people be subject to board
> approval/oversight?
>
>
> *Proposal 2: Venture Partners*
>
> 1. I am concerned about Venture Partners’ ability to accrue expenses
> to the Fund. Especially since, board members/shareholders have accrued
> expenses that have not been reimbursed yet.
>
> 2. I would like to know more about why we think this is necessary. I
> have concerns over the value-add these individuals bring as well as
> potential reputational risk to BHR (this is a concern whenever anyone is
> acting in our name).
>
>
>
>
> I am confident that we can have fruitful discussions of these issues on
> our board meeting conference call and I look forward to hearing from the
> BHR management team as well as my fellow board members.
>
>
> Many thanks,
>
> Hunter
>
> R. Hunter Biden
> Rosemont Seneca Partners
> Washington D.C.
> 202-333-1880
>
>
>
> On Dec 10, 2014, at 11:20 PM, Jason Zhu <jason.zhu@bhrpe.com
> <javascript:_e(%7B%7D,'cvml','jason.zhu@bhrpe.com');>> wrote:
>
> 各位董事和监事：
> Dear all,
>
> 附件是本次董事会拟通过的决议草稿，请各位审阅。谢谢！
> Attached is the Board Resolution draft for your review. Thanks.
>
> 祝好，
> Regards，
>
> Jason
> *发件人:* Jason Zhu [mailto:jason.zhu@bhrpe.com
> <javascript:_e(%7B%7D,'cvml','jason.zhu@bhrpe.com');>]
> *发送时间:* 2014年12月10日 1:19
> *收件人:* '(anthonyfan88@me.com
> <javascript:_e(%7B%7D,'cvml','anthonyfan88@me.com');>)'; '(
> darcher@rosemontseneca.com
> <javascript:_e(%7B%7D,'cvml','darcher@rosemontseneca.com');>)'; 'Bulger
> Jim'; 'hbiden@rosemontseneca.com
> <javascript:_e(%7B%7D,'cvml','hbiden@rosemontseneca.com');>'; '
> jonathan.li@bohaicapital.com
> <javascript:_e(%7B%7D,'cvml','jonathan.li@bohaicapital.com');>'; '
> luchangqi@ample-harvest.com
> <javascript:_e(%7B%7D,'cvml','luchangqi@ample-harvest.com');>'; '
> ouwenzhi_bgi@bocgroup.com
> <javascript:_e(%7B%7D,'cvml','ouwenzhi_bgi@bocgroup.com');>'; 'Xue Ming (
> xueming@bohaicapital.com
> <javascript:_e(%7B%7D,'cvml','xueming@bohaicapital.com');>)'; 'zhoubing';
> '丰实lindsay'; '蒋明[Jiang Ming]'; '徐建新 (xujianxin@teda.com.cn
> <javascript:_e(%7B%7D,'cvml','xujianxin@teda.com.cn');>)'
> *抄送:* 'Amy.Liu'; 'felix.yu'; 'Leonard Mike'; 'Michael Lin'; '
> michael.frick@ample-harvest.com
> <javascript:_e(%7B%7D,'cvml','michael.frick@ample-harvest.com');>';
> 'Sebastian Momtazi'; '李新中'; '刘佳依'; '孙晶晶'; '杨帆[Stella Yang]'; '赵婷'
> *主题:* Rescheduled BHR Board Conference Meeting and Meeting Docs
>
> 各位董事和监事：
> Dear all,
>
> 由于周冰董事长临时有急事，拟将本次董事会会议召开时间推迟至北京时间本周五上午9:30 – 11:00
> ，烦请各位尽快回复确认是否能参加。对因此造成的不便，深表歉意。附件是此次董事会会议文件。
> We propose to postpone this board session to 9:30 – 11:00am this Friday
> (Bejing time) as Mr. Zhou is unable to attend the meeting as previously
> scheduled due to his unscheduled but urgent agenda. Would appreciate it
> very much if you could confirm your availability as soon as possible. Very
> sorry for any inconvenience thus caused to you. Attached is the board
> meeting documents.
>
> 祝好！
> Best Regards,
>
> Jason
>
> *发件人:* Jason Zhu [mailto:jason.zhu@bhrpe.com
> <javascript:_e(%7B%7D,'cvml','jason.zhu@bhrpe.com');>]
> *发送时间:* 2014年12月5日 10:42
> *收件人:* '(anthonyfan88@me.com
> <javascript:_e(%7B%7D,'cvml','anthonyfan88@me.com');>)'; '(
> darcher@rosemontseneca.com
> <javascript:_e(%7B%7D,'cvml','darcher@rosemontseneca.com');>)'; 'Bulger
> Jim'; 'hbiden@rosemontseneca.com
> <javascript:_e(%7B%7D,'cvml','hbiden@rosemontseneca.com');>'; '
> jonathan.li@bohaicapital.com
> <javascript:_e(%7B%7D,'cvml','jonathan.li@bohaicapital.com');>'; '
> luchangqi@ample-harvest.com
> <javascript:_e(%7B%7D,'cvml','luchangqi@ample-harvest.com');>'; '
> ouwenzhi_bgi@bocgroup.com
> <javascript:_e(%7B%7D,'cvml','ouwenzhi_bgi@bocgroup.com');>'; 'Xue Ming (
> xueming@bohaicapital.com
> <javascript:_e(%7B%7D,'cvml','xueming@bohaicapital.com');>)'; 'zhoubing';
> '丰实lindsay'; '蒋明[Jiang Ming]'; '徐建新 (xujianxin@teda.com.cn
> <javascript:_e(%7B%7D,'cvml','xujianxin@teda.com.cn');>)'
> *抄送:* 'Amy.Liu'; 'felix.yu'; 'Leonard Mike'; 'Michael Lin'; '
> michael.frick@ample-harvest.com
> <javascript:_e(%7B%7D,'cvml','michael.frick@ample-harvest.com');>';
> 'Sebastian Momtazi'; '李新中'; '刘佳依'; '孙晶晶'; '杨帆[Stella Yang]'; '赵婷'
> *主题:* BHR Board Conference Meeting
>
> 各位董事和监事，
> Dear all,
>
> 渤海华美拟在下周四（12月11日）上午9:30AM召开董事会电话会议，讨论关于渤海华美薪酬激励体系报告，以及公司拟设立投资人合伙人（Venture
> Partner）制度的报告。董事会的有关材料将于下周一发出。烦请大家事先安排好时间参加。如果哪位董事时间上有冲突，请及时告知。谢谢！
>
> We are pleasure to inform you that BHR arrange to have a board conference
> meeting at 9:30AM (Beijing Time) Dec. 11th( Next Thursday), to review and
> discuss 1) the BHR Compensation and Incentive System Design Report which
> already approved by the Remuneration Committee; 2) the Proposal of
> Establishment of Venture Partner System for BHR. The board docs will be
> sent out next Monday. Please arrange your schedule to attend on time. If
> any director is unable to attend, please let us know. Thanks.
>
>
> Regards,
>
> 诸晨刚 Jason Zhu
> 执行董事 Executive Director
>
> 渤海华美（上海）股权投资基金管理有限公司
> Bohai Harvest RST (Shanghai) Equity Investment Fund Management Co., Ltd.
> 北京市朝阳区建国路79号华贸中心写字楼2座31层3101室 邮编：100025
> 31/F, Unit 3101, Tower 2, China Central Place, 79 Jianguo Road,
> Chaoyang District, Beijing 100025, China
> Cellphone: 136 8169 7246
> Tel: 86 10 5969 5858
> Fax: 86 10 5969 6123
> Email: jason.zhu@bhrpe.com
> <javascript:_e(%7B%7D,'cvml','jason.zhu@bhrpe.com');>
>
> <20141212_BHR_Board Resolution.pdf>
>
>
>

--
James J. Bulger
Chairman
Thornton Group LLC
14 Beacon Street, Suite 804A
Boston, MA 02108
Office tel: 617.248.944