Monetizing Of Financial Instruments

This program was formed to manage alternative investment strategies for the institutional and high net worth community. Through its hedge fund affiliates, the program will conduct business related to making private investments through the immediate acquisition and sale (buy/sell) of investment grade obligations (rated A or better by Standard & Poor’s / Moody’s) issued by various entities.

Market Conditions

 Zero correlation to Debt & Equity markets’ volatility.
 Availability of issuers, buyers and leverage facility due to the recent financial market crisis has not affected the mechanics or economics of the program.
 “Flight to Quality” movement in the market enhances the effectiveness of strategy as additional buyers create larger spreads on the transactions.

Types of Debt Instruments (buy/sell MUST comply with Investment Guidelines).

All instruments are subject to a strict verification process.

 US Government Securities
 Variable / Floating Rate
 Zero Coupon / Pay-in-Kind
 Foreign Securities
 Bank Guarantees
 Letters of Credit
 Medium Term Notes

Transaction Mechanics

 Value proposition tied to negotiations: Buyer achieves yield, banks achieve liquidity, spread captured as profit through matching buyer with seller.
 Private sale of debt securities through principal protected match-trade strategy.
 All transactions forward-sold with irrevocable agreement in place with buyer before transaction is executed.
 Synthetically “out” before trade completed.
 Buyer’s bank represents the end buyer; they are obligated to perform if the agreement is breached.
 Long positions open for very short periods, in some cases a matter of minutes.
 Pre-arranged leverage facility.
 Every transaction contemplated and executed is contracted to produce profit for investors through built-in spread.
 Returns are a function of leverage, frequency and spread.
 Custodial account assures strict enforcement of investment guidelines; professional management during settlement for each transaction.
 Client cash and marketable securities are used as placeholder to activate credit facility with the custodial bank.

Miscellaneous

 All trades subject to match-trading requirements that constitute a risk-less principal transaction, consistent with the Securities Act of 1933, Title 17, Section 230, §230.144A, except in cases of force majeure.
 Financial Institution / Custodian shall permit sale of the debt securities provided that the selling price is not less than the price paid for the debt securities when purchased by manager.
 Financial Institution / Custodian shall deposit proceeds in excess of original purchase price (“profit”) into an account for distribution according to the terms of the Investment Management Agreement.
 Principal is returned to the investor at the end of the investment term.
 Terms are subject to change without notice at any time prior to issuance of the Investment Management Agreement. No custodial accounts are opened nor any funds transferred prior to execution of the Investment Management Agreement.

Disclaimer: The Sender is not a U. S. Securities Dealer, Broker or Investment Adviser. The Sender makes no warranties or representations as to the Transaction and warns that all due diligence is the responsibility of the Recipient. This response to the recipient's request for private information is intended for the recipient's private use only. Gramm-Leach-Bliley Act, 15 U.S.C. 6801-6809.The Recipient hereby acknowledges this Disclaimer upon receipt hereof.