KDB11

EXECUTIVE SUMMARY 2013An in-depth look at an emerging start-up and opportunity to invest in an early-growth Risk Mitigation Company

Decrease in Apartment Development

-4%

NOTES FROM OURCHEIF EXECUTIVE OFFICER

Larry went to friends and family to seek a guarantor for his lease without success. He had no options until his landlord shared with him LeaseLock®. After a successful application Larry moved into his new home. Larry’s full story can be seen at www.leaselock.com.

Introducing the most exciting new

guarantee program for leasing apartments: LeaseLock®

In conjunction with a worldwide rated reinsurer, and with the

association of Mucker Labs, LeaseLock® has created a program that assists credit challenged individuals, foreign nationals and those who don’t meet the required qualifications to lease their home, by providing landlords with the guarantee they seek in order to lease to the applicant.

Attached you will find the full LeaseLock® story, a very exciting investment opportunity, which we hope you will consider.

Our association with Mucker Labs is as exciting as our product. Mucker Labs is a nationally renowned business incubator. They only associate themselves with approximately 7 – 14 companies a year, and the success of these associations can be viewed at www.muckerlabs.com.

So please take the time to read the attached executive summary, visit the various websites and become a part of history.

Representatives from Brolacky Investment Group, one of our financial advisors, will be contacting you to discuss this great opportunity.

Reichen LehmkuhlChief Executive Officer

The LeaseLock® Team recerntly designed and implemented a web-based video is the first thing any visitor to our site will see. Our team spent several days working on this animated video about our product.

In our video, ‘Meet Larry,’ needed

to move into a new apartment, but because of his credit rating, he found did not qualify him for the

Since 2011, the percentage of U.S. Renters has risen to almost 35%—the highest rate since

1995.

Since 2008, there has been a 4% decrease in Apartment Developments across the U.S.

35%increase in U.S. Renters in 2011

Reichen LehmkuhlLeaseLock®’s CEO and Founder

THE CHANGINGU.S. RENTAL

Since the economic downturn of 2008, the U.S. Rental Market has drastically changed. Not unlike Europe, the U.S. is becoming a more “renter-based” community. More people are realizing that owning a home isn’t all that it promises. In an ever-changing economy, U.S. residents are beginning to move into apartment communities across the country. In 2012, the total annual revenue generated from Renter-Occupied unites was $537Billion. This ever increasing amount represents revenue generated by over 36 million apartments across the U.S. The demographic change puts enormous pressure on the rental housing stock, tightening supply, and pushing up rent prices in metro areas across the nation. Furthermore, it puts pressure

on the U.S. Renter who can’t completely qualify for the apartment they dream for. However, thanks to the founders of of the LEASELOCK® GUARANTEE, U.S. Residents and Landlords can move further down the road with this unique offering that will change the way U.S. Residents rent.

$537b

36m

$1231

Total Annual Revenue Generated from

Total # of Apartments in the U.S. that are renter-occupied

Average U.S. Rent per month

1.5 million households are moving into rental properties just in the past year, according to a

Real estate experts and analysts suggest that many people are unable to buy a home. Therefore, the rental

market is expanding and with it the rent charged for a rental unit.

“Investors will increase their holdings in large apartment communities to strengthen their positions during times

of high rental demand,” according to a Jan. 6 article on

INTERESTING FACTS ON THE CHANGING U.S. RENTAL

SAN FRANCIS-

CHICAGO

19,360 Residents need Guarantors

inSan Francisco


inChicago


in LA Coutny


in NYC

$588M $1.6b $4b

SAN FRANCISCO NEW YORK CITY

TOP 4 U.S. RENTAL MARKETS:GUARANTORS AND VACAN-CIES

$20bTotal Revenue

Generated from Residents who need a

Guarantor

Top U.S. Rental Markets Revenue:

Guarantors Needed

15% of all U.S. renters will require a co-signer or guarantor

with their lease. This stastistic is based on the average U.S.

Credit Score.

The following graph shows the total reveneu for this niche..

CHICAGO LOS ANGELES

19,780 Vacant Apartments in

Chicago

4,187 Vacant Apartments inSan Francisco

27,466 VacantApartments in

NYC

69,555 Vacant Apartments in

LA County

$588M $1.6b $1.2b

CHICAGO LOS ANGELES

$3bTotal Lost Revenue from

Vacant Apartments in Top 4 Markets

Top U.S. Rental Markets Rvenue:

Vacancies LostThere is on average a 3%

vacancy rate in the Top 4 Rental Markets in the U.S.

The following graph shows the total reveneu for this niche..

SAN FRANCISCONEW YORK CITY

TOTAL REVENUE FORGUARANTORS AND VACANCIES

IN U.S.

$108b

$24b

Total U.S. Revenue Available for Guaranteed Rental Units and

Filled Vacancies

Total U.S. Annual Revenue from Rental Units using a

Guarantor

Total U.S. Annual Revenue Lost from Rental Unit Vacancies

$23b

TOTAL REVENUE FORGUARANTORS AND VACANCIES

IN

$20b

$3b

Total U.S. Revenue Available for Guaranteed Rental Units and Filled Vacancies

Total U.S. Annual Revenue from Rental Units using a :Guarantor

Total U.S. Annual Revenue Lost from Rental Unit Vacancies:

THE PROBLEM FORRENTERS IN THE U.S. RENTAL

STRICT FINANCIAL

NOT LEGALLY PERMITEED TO PAY ANNUAL RENT

NOT LEGALLY PERMITTED TO PUT ADDITONAL DEPOSIT

HIGHER DEMAND/LESS INVENTORY ON UNITS

IF POTENTIAL RESIDENT DOESN’T MEET REqUIRE-MENTS,

RENT PAYMENTS TO LANDLORD ARE NOT RECORD-ED AND SUBMITTED TO CREDIT BUREAUS

RENTER’S PROBLEMS

THE PROBLEM FOR LANDLORDS IN THE U.S. RENTAL

4% VACANCIES IN THE U.S.

1.7% EVICITONS IN THE U.S.

UNSTABLE CASH FLOW FOR UNITS AND BUILDINGS

LONGER CLOSING TO LEASING PROCESS

CURRENT qUALIFICATIONS MEANS LESS ACCESS TO

LONGER LEASING TIMES FOR NEW RENTAL DEVELOPMENTS TO FILL UP UNITS

LANDLORD’S PROBLEMS

√ Assures Rent Payments

√ Helps Residents

√ Provides Landlord Peace of Mind

THE SOLUTION:THE LEASELOCK® GUAR-

√ Assures Rent Payments

√ Helps Residents

√ Provides Landlord Peace of Mind

LeaseLock® will continue to make monthly rent payments until the end of the lease or the unit is re-

who are re-building their credit ACCESS to lease the apartment that they really want, while allowing them to QUALIFY for the apartment they may not traditionally qualify for.

by EXPANDING the pool of QUALIFIED applicants, while helping to fill VACANT units and STABLIZE CASHFLOW and PREDICT DEFAULTS.

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ed sit amet nulla vel dolor gravida bibendum. Nunc odio massa, sodales et consectetur a, iaculis eget sapien. Mauris dignissim, arcu id faucibus laoreet, justo tortor imperdiet tellus, et egestas.

DEVELOPING THE SOLUTION TO THE U.S. RENTAL MARKET

WHAT ISTHE LEASELOCK® GUARANTEE?

THE LEASE RESIDUAL

VALUE GUARANTEE®

Application is submitted

Underwritting of Applicant

Approval for LeaseLock®

Premium Paid with Deposits on

Resident moves in

Application Submitted for a LeaseLock® Guarantee with an annual lease of

$20,000 lease

Approval of a LeaseLock® Guarantee. Conditions are an extra month of deposit needed to be held by LeaseLock

Applicant pays 10% of annual lease for premium for Guarantee and gives additional deposit to LeaseLock is case of

Resident moves into new apartment.

WHAT ISTHE LEASELOCK® REVENUE With the assistance of specialized insuranceexperts, the founders of LeaseLock® were able to build a revenue model that produes a 66% Gross to Revenue structure after subtracting the cost of sale. consectetur adipiscing elit. Sed et consectetur lacus. ed sit amet nulla vel dolor gravida bibendum. Nunc odio massa, sodales et consectetur a, iaculis eget sapien. Mauris dignissim, arcu id faucibus laoreet,

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Resident’s Annual LeaseLeaseLock® Guarantee Premium

$25,000$2,500 (10%)

Fee to A Rated Carrier for PolicyFee to Reserve Account to meet

$412$412

$1650

LeaseLock® Revenue

WE PREDICT: LeaseLock® knows how much rent the average building will lose with vacant units. With LeaseLock®’s actuaries and underwriting, we are highly knowledgeable in regard to resident default rates

WE STABILIZE CASH FLOW: Because large organizations don’t have to worry about the unpredictability of defaults with LeaseLock® service, therefore better hands on cash.

WE EXPAND THE APPLICANT POOL: LeaseLock® helps property managers and landlords expand the pool of qualified residents. With the LeaseLock® Guarantee, more people become more qualified residents, therefore filling up vacancies.

VALUE OF THE LEASELOCK® PROGRAM

Value to Landlords Value to Residents

WE HELP TO REBUILD A RESIDENT’S CREDIT: LeaseLock® works with residents who are building or re-building their credit while helping landlords rent their units with the confidence of knowing that rent payments are guaranteed.

WE HELP RESIDENTS QUALIFY FOR THE APARTMENT THEY WANT: LeaseLock® offers a much-needed Guarantee with all the current stringent rules for renting an apartment or home in today’s marketplace.

WE HELP LANDLORDS BY OFFERING A GUARANTEE: We qualify applicants with a LeaseLock® Guarantee that in the event of default on their rent, LeaseLock® will continue to make the rent payments on-time and monthly.

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$25,000$2,500 (10%)

$412

LEASELOCK®’S TARGET CUSTOM-

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ipsum. Nam vehicula lorem erat, a consectetur libero. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed et consectetur lacus. S

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Distant Bankruptcy

Marginal CreditHas cash on hand

Full-time Employment

Foreign NationalsNo U.S. CreditHas cash on handFull-time Employment

Full-time StudentsU.S. Credit is just becoming establishedHas cash on hand or Parent has cash on hand

RetireesMarginal Credit

Has cash on handNo Current-Employment

Recent College GradThin CreditFull-time EmploymentCash on Hand

EntrepreneursMarginal Credit Has cash on hand

Proof of steady owner operated business

DivorceesMarginal Credit

Has cash on handFull-time Employment

Individuals repairing their

creditMarginal Credit

Has cash on handFull-time Employment

Recent College GradThin CreditFull-time EmploymentCash on Hand

HOW WEMITIGATE OUR RISK

LEASELOCK® FEE COLLECTED: One month risk covered

STRICT UNDERWRITING: LeaseLock will not approve an applicant with bad credit and no cash on hand

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ipsum. Nam vehicula lorem erat, a consectetur libero. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed et consectetur lacus. S

ed sit amet nulla vel dolor gravida bibendum. Nunc odio massa, sodales et consectetur a, iaculis eget sapien. Mauris dignissim, arcu id faucibus laoreet, justo tortor imperdiet tellus, et egestas quam velit ac ligula. Quisque auctor.



2013 2014 2015 2016

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REACHINGLEASELOCK®’S MILESTONES

78%

Los Angeles

78%

New York City

60%

San Francisco

50%

Chicago

78%

LEASELOCK®FINANCIALS

2013 2014 2015 2016 2017

$484k

23%

23%

23%

$484K LeaseLockRevenue $1.2M $1.2M $1.2M $1.2M

$1.2M

POSSIBLEEXIT STRATE-

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MERGER/AqUISITIONSuspendisse congue

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NYSE IPOSuspendisse congue

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PELLENTESqUE SCELERISqUE

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PELLENTESqUE SCELERISqUE

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1.5 million households are moving into rental properties just in the past year, according to a recent report by Freddie Mac. Aliquam varius adipiscing tempor. Vivamus id ipsum sit amet massa consectetur porta. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Praesent dignissim ultrices neque. Aliquam auctor congue nunc sed interdum. Aenean sagittis gravida est, sit amet egestas metus venenatis non. Mauris non leo malesuada orci laoreet eleifend eget mattis ipsum. Nam vehicula lorem erat, a consectetur libero. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed et consectetur lacus. S

THE LEASELOCK®

Peter Mansfield

CMO, Co-FounderKeith D. Black

COO, Co-Founder

Reichen LehmkuhlCEO, Founder

1.5 million households are moving into rental properties just in the past year, according to a recent report by Freddie Mac.



CORE TEAM

ADVISORY TEAM

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KDB11

Documents

leaselock guarantee

new apartment

leaselock story

new home

apartment communities

apartment developments

exciting new guarantee

attached executive summary