The purpose of the The Affiliate Venture Bond with PRPTM is to provide funds for Developers while simultaneously providing sufficient collateral and security for Qualified Institutional Buyers

Qualified Institutional Buyers (QIBs) require more collateral than Developers can manage under the current global financial conditions. What is necessary for development projects to move forward in today?s market is a funding vehicle that can meet QIB needs for additional security. our affiliate company has developed such a vehicle. As part of a Joint Venture, our affiliate Venture Capital proposes the acquisition of the necessary collateral and investment funds to make up to $1B in loan proceeds available for quality developments The affiliate Venture Bond with PRPTM is collateralized with the real estate assets of US. domestic and international development projects and with an actuarially-based product that pools Senior Life Settlement Policies (SLS) into a portfolio. The SLS portfolio provides the additional collateral necessary to encourage QIBs to undertake the funding of development projects. Our affiliate Venture Capital has relationships with the specific banking, legal, underwriting, and asset management firms to create the bond offering. A Special Purpose Vehicle (SPV) will be created to manage the SLS portfolio and supervise the fund distribution to the various projects. Wells Fargo Bank, N.A. will provide corporate trust services. The projects will be supervised by PBS&J, an internationally recognized construction management firm, and externally audited by a nationally recognized accounting firm. The development projects will make 10% annual coupon (interest) payments for ten consecutive years. The developer can make the first three year’s interest payments from loan funds held in reserve.This means that the development need not be profitable until the beginning of the fourth year of the project. The SPV will retire the principal on behalf of the Borrower at the conclusion of year ten of the bond. The Borrower will not be responsible for repayment of the principal, provided that the Borrower has made the required 10% interest payments annually for ten years. The portfolio is diversified by using multiple policies from multiple insurance companies. It functions similarly to a zero-coupon instrument, in that it is bought at a discount to face value, and the underlying benefit is known. The benefit of the investment is known and actuarially predictable. Two independent and competing companies hand select specific policies that meet our affiliates stringent criteria: the life expectancy of the policy, the cost or basis of the asset, the rating of the insurance company and the diversity the policy brings to the fund. Each SLS added to the fund has a known insurance benefit. The benefits of each SLS purchased by our affiliates Venture Capital are backed by the strength of each insurance carrier. These policies are purchased through a diversified group of companies, all of which are rated A or higher. Additionally, reinsurance may be used to mitigate longevity risk, should policy maturity not occur during the life expectancy period predicted.

Energy projects are preferred, as we have a substantial QIB (Qualified Institutional Buyer) available interested only in that asset class of projects.

Other asset classes acceptable:

1. Hotels

2. Resorts

3. Non-US Residential Housing Developments

4. Office Buildings

5. Large Ship Manufacturing

6. Energy Projects (preferred in fact)

For an initial evaluation, we need the following documents via e-mail attachment:

Funding Range: $25M to $1.5B Term: 10 years Percent Available: 100% Equity Position: 10-15% Success Fee at Closing: 3-4 % Payment – Annual, Interest Only: 10% (first three years may be held in escrow) Bond Preparation: $1.7 to 2.1M due when engaged. Closing Cost: 2 – 4% of loan – 3 weeks before closing (approx. 4 to 6 months) No initial underwriting fees charged to pre-qualify projects. To properly complete an initial evaluation, The following documents are required:

* A pro forma confirming the ability to make 10% annual interest payments * An executive summary * A business plan * A current appraisal, if available * Any other additional documentation pertinent for evaluation

The funding works well for under-capitalized development projects with great upside potential.


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