It’s the economy “S” (“Sir”) “Patent Pending” January 6, 2010 revised Confidential.

It’s the economy “S” (“Sir”)“Patent Pending”

January 6, 2010 revised

Confidential

State of the UnionJobs-Jobs-Jobs

Unemployment @ 9.8% and likely to stay at that level for some time (20M +++) New Jobs moving overseas

Federal Deficit’s increasing Government bail-outs costing taxpayers

billions Bank failures/VC firms capital frozen Healthcare costly and future uncertain Capital for start-ups and expansion capital

unavailable or too costly to enable effective businesses to utilize

Private Market Solution

1. Monetization financing Private investors provide funding

2. Government guarantee (Replaces privately arranged guarantee)

Potential link to job creation and taxes Potential to establish government bond to certify

guarantee (For government entities with credit issues)

3. Alternative investment in the form of an insurance wrap and or other investment option to protect government guarantee in the event of business failure.

Monetization FinancingStep One Competitive institutional pricing reflective of

credit quality (currently offered @ 8-9%) Option to add escalator for extended loans (libor

+) All lender costs included in fixed price quote Private placement with off balance sheet

structures available Creative repayment options

Repayment terms syncopated with a project’s economics

Single payment 3-5 year repayment available

Monetization Financing No requirement to issue equity or deal with

Venture Capital firms 100% term debt financing available Terms can permit collateral to be used for

Tax-Exempt IRB or bank loans on Equipment and Real Estate + 100 % of costs and payment reserves

No credit committee review and no road show No financial maintenance covenants No post funding reporting requirements

Monetization Financing

Path to funding Conference call to discuss details of project with

principals involved Completion of project data sheet and subsequent

due diligence Proof of support Face to face between lender and IGIG Closing date scheduled

Irrevocable Guarantee  Corporate Investment Grade Guarantor

Must be Moody’s or S&P rated BBB 1 or better

Regardless of rating must be acceptable to investor Must cover principal and interest for full term of loan

Irrevocable Letter of Credit Issued or confirmed by an American “Money Center” Bank (Chase,

Wells Fargo, Bank of America, etc.) acceptable to investor Letter of credit based on assets controlled by the bank or guarantee

of investor Generated on behalf of a patron with sufficient assets in his account

to cover the full amount of the loan payment (principal and interest) 

Irrevocable Guarantee Guaranteed Contract for Goods, Resources or

Services A signed, “Take or Pay” contract must be in place with an

Investment Grade source, Irrevocably Guaranteeing the minimum “Pay” portion.

The minimum “Pay” portion of the contract obligates the receiver of the goods, resources or services to irrevocably pay the full contracted amount, regardless of whether or not they receive the contracted goods, resources or services

Payments are usually made directly to a lockbox   Surety Bond from a Bond Rated Entity

(Guaranteed by an insurance company) Must be issued by an United States registered Insurance

Company, Moody’s AA rated. Guarantees repayment of the full principal and interest at

the maturity date of the loan Insurance company takes security interest in assets of

borrower

Loan Request Facts Total Project cost (in US Dollars) $_____________ Total (US Dollars to be financed $_____________ A preliminary Use of Funds spreadsheet with a loan disbursement

schedule, listing the suggested amount (s) and date (s) for the loan proceeds to be funded

Legal name of IGIG (Investment Grade Irrevocable Guarantor) & relationship to project (customer, sponsor, insurance, bonding company, etc.)

Length (years) of IGIG guarantee Legal name of Project, and the name, title and mailing address to whom

we should address the term sheet. Brief bios of Principal owners/operators; why do they think they will be

successful? Will they qualify for a Performance Bond by an insurance company?

Two or three page Executive Summary describing the project. Why will it be successful?

Your preferred repayment schedule, at 10% interest, amortized within the time of the IGIG guarantee. We can accept up to three years of skipped payments for construction and start-up projects.

Please provide the name, title Fed Ex address, phone, email and web page for: The person we should contact with our questions? The person to whom we should address the Term Sheet?

Government GuaranteeStep Two Federal, state, local irrevocable guarantee replacing current

IGIG guarantees to back total investment = principal, wrap and interest on principal and wrap Start-up companies generally unable to provide

irrevocable guarantee Potential for Federal Government program to provide

open ended guarantee (tarp alternative) (JDIC) JOBS DEPOSIT INSURANCE CORPORATION Government tarp funds used to provide insurance for private investment

dollars invested in job creation enterprises! Invest tarp funds in senior life settlements to leverage insurance dollars Insurance only needs to cover business failures

Focus job creation and tax benefits City, County, State, Federal

Economic Development Council Pilot

Wrap Insurance to Protect Government GuaranteeStep Three

Determine total $ (principal and interest minus recoverable $) needed 5-7 years to repay investor in the event of business/venture failure

Purchase Senior Life Settlement or similar alternative investment vehicle to enable repayment of debt only when business fails JDIC Lottery Other

Government lien on Senior Life Settlement until debt retired Government current budget issues require alternative

to putting obligations on taxpayers to repay lender in the event of failure of the financed project

Benefits Capable of funding start-up and expansion

capital needs Provides window 3-5 years interest deferral to

allow operation to get established and create financial engine to repay debt

Reduce interest cost based on strength of government guarantee (libor +) for extended credit periods to protect against inflation and potential for increase in interest rates

With business success makes Senior Life Settlement funds available to participants for profit sharing

Example (1)For demonstration purposes only not a target for first investment

SOBE $283 million casino cruise ship opportunity

Dade County, Florida and/or Federal Government Guarantee

Senior Life Settlement wrap of $205 million Payout in seven/fifteen years with successful

project $2 billion minus cost of insurance plus carry costs

($205 million + 194 = $399m + cost of servicing life settlement policies)

Ladder Senior Life Settlement 5-15 year Life Expectancy to provide early liquidity

Finances (1)

Project

SoBE $283

Senior Life Settlement $205 $100 M purchase of life settlement$105 M interest reserve

Seven year result Repay capital & interest @ 10% on $283m loan@ 8%

$ 551.5m

$485m

Repay Senior Life Settlement capital & interest @ 10% on $100m loan@ 8%$205M leveraged

$ 399m

$351m$2b

SoBe (1)7 years 150 + temporary jobs created 500 + permanent jobs created Taxes paid annually

Payroll $4m annually Property taxes $1m annually Income taxes $50m annually

Job and tax multiplier effect 3x Senior Life Settlement benefit if not needed for insurance

<$ 1.4B Insurance calculation: Recovery $300M from forced sale of

assets, life settlement cover cost of interest on original loan, cost of purchase of life settlement and cost of interest coverage for life settlement.

Senior Life Settlement benefit if needed for insurance: <$900M

Example (2) must have Shoes

$3 million investment $15 million investment

Year New Jobs Stores

1 34 5

2 73 11

3 132 20

4 228 35

5 367 57

6 513 80

7 701 110

Year New Jobs

Stores

1 46 6

2 166 24

3 354 54

4 603 94

5 974 154

6 1467 234

7 2087 334

Example (3) CMC

Country Music Café Nashville Impact

$5.5 million line of credit

$3.6 million purchase Senior Life Settlement

$3.5 million interest for credit line and Senior Life Settlement

100 + jobs Taxes paid annually

City State Federal Payroll

Alternatives Sell equity year 2-7 to retire debt

Pricing more attractive for private placement after business is operational

Sell equity year 2-7 to own Senior Life Settlement

Pay off obligations from free cash flow Private fund to own Senior Life Settlement and

provide loan protection for fee Re-insurance to reduce cost of Senior Life

Settlement

Next Step Wealth Management:

Confirm Senior Life Settlement platform (Completed)

Blue Orbis: Establish Government Guarantee Ralph LaCivita,

Controller, Naples, FL (Completed)

Steve LaCavita, University of Chicago Graduate Business School

White Paper (Meeting scheduled January)

Ed Burke, Sr. Alderman, Chicago (Yet to be scheduled)

Senator Democrat (TBN) Republican Governor

Sununu Berkshire Hathaway

President Obama Blue Orbis: Explore

alternative money sources to current source

Demonstration project Detroit, Chicago or

Nashville

Covered by Confidentiality Agreement Don Skelton, Blue Orbis

Capital Advisors Tim Moody, Fortress

Family Trust David Tingley FFS Lending Steve Braunstein FFS

Lending Corporate Attorney Kevin

Carmichael, Salvatori & Wood

Attorney John Artz, Patents, Dickinson Wright

Rusty Whitley, CPA, Wilshire, Whitley & English

Greg Fortune, Prosperitas Group

Rey Pezeshkan, PK Studios Ralph LaCivita, City of

Naples Governor Sununu, Sununu

Enterprises William Beynon, Capital

Wealth Blaine Ferguson, Capital

Wealth Jigs McHugh, Capital Wealth David Schwalb, Schwalb

Realty Mark Brodson, Schwalb

Realty Harry Cendrowski,

Cendrowski Corporate Advisors

George Raymond, Advisor

Recap Lender program under Monetization finance

formula Government guarantee Senior Life Settlement Wrap or comparable

protection

New Contacts Senator Carl Levin, Michigan (David Tingley) Chicago-Pilot-Quite Agent (Harry Cendrowski ) Nashville-Pilot (CMC founders) Detroit-Pilot (George Raymond, Board

Member) Nebraska Governor David Heineman, (David

Schwalb)