INTERNATIONAL STRUCTURED FINANCE SOLUTIONS Insurance-Linked Capitalization Arbitrage Program (iCAP) www.iCapVentures.com

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INTERNATIONAL STRUCTURED FINANCE
SOLUTIONSInsurance-Linked Capitalization
Arbitrage Program (iCAP)www.iCapVentures.com
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Structured Finance Notes Bonds
? Information in this presentation is subject to
change without notice
? All calculations and timeframes are
approximations.
? Ratings are by Standard Poor or Moodys
? The information herein shall not constitute an
offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of
securities in any state in which such
offer, solicitation or sale is not authorized.
An offering is made solely by the prospectus
to accredited investors. The reader of
this information is advised to consult an
attorney and perform adequate due
diligence before making any decisions.
? Minimum Loan Amount 5M Max Loan Amount 100M
(smaller projects will require combining
with others to equal a total of 100M
multiple bonds per project are feasible).
? We participate in 10 to 20 of Equity
? Capital is disbursed in tranches per schedule,
with quarterly audits
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Qualifications Requirements
? Project/Venture must meet some or all of these
requirements to apply with iCAP
? Purpose Creates or advances new /or green
technology, jobs, industry, real estate
(limited new construction), film, for-profit
humanitarian, others may be considered on
their merits and business model
? Profit Potential Project must be able to pay
minimum of 10 per year of original loan
amount, year 3 - 10 (quarterly starting 27th
month).
? Management Project/venture sponsors must be
seasoned and experienced in their business
sector.
? Proof of Funds 5,000 per 1M of required
capitalization, for underwriting, legal,
due diligence and processing of loan application.
? Application must contain
? Business Executive Summary? Business Plan
project details, mgmnt., market intellectual
properties? Ten year Pro forma?
Client/borrower/issuer information sheet
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Process, Approval Use of Funds
? Submit Application and Required Client/Borrower
Deliverables
? iCAP Due Diligence and Pre-approval or
Non-approval
? If Letter of Pre-approval Issued with
Preliminary Term Sheet, Initial
Transaction Fee is Required for Loan Processing
? Repackaging, Legal, Underwriting, Trust
Indenture, Collateral Bond Reservation,
Escrow Account Established, Final Term Sheet
Issued
? Estimates of Initial Items to be Paid from
Escrow Account
? Institutional Investor/Lender Reservation
Fee 45,000 ? Introducing Broker
50,000? Collateral Underwriting
Reservation/Retainer 142,500?
Legal 45,000? Note Assignment
Fee 30,000? Indentured Trust, Issuing
Agent, Consulting Fees 187,500 ?
TOTAL 500,000
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Timeline Loan/Bond Processing Cycle
iCAP? Secures Institutional
Investor/Lender Partners? Arranges A Rated
Collateral Guarantee Fund? Lends Net Proceeds
to Project Provides TPA? Retains of Equity
150,000 IssuingAgent Consulting Fees
START
iCAP receives approves Project(s) BP, Pro
forma and Application
Example 100M Loan80M Net Proceeds
Establish EscrowAccount Fees to be expensed
as incurred
Reserve Account Established for Interest,
Premium Payments Maint. Fees
MTN Funds releasedfor acquisition of
Insurance-Linked Collateraland A Rated
reinsurance binder
First 2-Yrs Principal is pre-paid. Project pays
10 of Gross Loan Amount yrs 3 10 to equal
total Principal repayment only
30,000 Note Assignment Fee
iCAP securesMTN IndentureTrust from
PartnerInstitutionalInvestor/lender
Project underwritten attached to
MTNInsurance-LinkedAsset CollateralIdentified
reinsuranceCommitted
Est. from Escrow45,000 MTN Reservation50,000
Introducing Broker
45,000 Legal37,500 Indentured Trust
142,500 Collateral Retainer
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Loan Cost Structure
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iCAPVentures
Insurance-Linked CapitalizationArbitrage Program
(iCAP)Basic Structure
ICIB International Capital Investment BankTPA
Third Party Administrator
Principal InterestPayments
ICIBTPA
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ICIB Invests xxxM through its Professional Fund
Administrator (PFA)
Fund Participant
Asset-Class Collateral SecuritizationA Rated
Reinsured Insurance-Linked Longevity Product
Funds are Swift transferred to ICIB/PFA
established International Bank
Bank transaction
PFA as Escrow Agent establishesTrust for
transaction Admin. offunds
Escrow Agent Trust company
? PFA facilitates rated Reinsurance? Establishes
legal docs to transfer beneficial interest in
policies? Manages fund premiums
Payment to co-beneficiary of policy
A Rated Wrap Reinsurance
Premium (admin fees for fund) 1st yr buffer
Fund Administrator
ICIB makes premium paymentsafter yrs 1 2
no
Bank transaction by participant (premium)
10-Yr term expired?
10-Yr payment?
Insured person dies?
no
no
yes
yes
yes
? Reinsurance pays end of term Balance
remaining? Life Insurer pays death benefits?
Premiums maintained to term on un-matured
policies
Insurance company pays
Reinsurance company pays
Premium complied with
At end of Term PFA Fund pays out balance of any
un-matured policies so the total combined
guaranteed return from this Fund equals 581M
Fund Participant
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Benefits
? Borrower
? 100 Loans Possible
? No Collateral Requirements Possible
? No Personal Recourse or Guarantees
? Principal Repayment Only (no interest loan)
? First 2 Yrs Pre-paid (no additional payments
due until 27th month)
? Borrower Retains up to 90 of Equity
? Most Sectors Considered in Free-World
? Smaller Loans Considered if Combined with
Other Project Funding
? Low Entry Cost (5K per Million) 90
Refundable
? Application Approval to Funding 90 to 120 Days
? Pre-approval Process in 7 to 10 Business Days
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Summary Contact
? Funding Limits - 5M - 100M (more if multiple
Bonds used)? 120-180 day process? 5K per 1M
Initial Underwriting Cost? 1st 2-yrs Principal
pre-paid Prin. only payments yrs 3-10?
Requirements ? Executive Summary ?
Business Plan ? 10 Yr Pro forma ?
Client Application ? Experienced
Management? 10 - 20 EquityContact Jim
Nash [phone] jrnash_at_iCapVentures.com
Dan Somers [phone]
dgsomers_at_iCapVentures.com