© COPYRIGHT 2004 INTERNATIONAL ENTREPRENEUR NETWORK ALL RIGHTS RESERVED Transforming ordinary investors into “Fearless Venture Capitalists” VENTURE FUNDING

© COPYRIGHT 2004INTERNATIONAL ENTREPRENEUR NETWORKALL RIGHTS RESERVED

Transforming ordinary investors into

“Fearless Venture Capitalists”

Transforming ordinary investors into

“Fearless Venture Capitalists”

VENTURE FUNDING ADVISORSPrincipalProtector TRUST© COPYRIGHT – ALL RIGHTS RESERVED


Financial insurance that guarantees to return an amount equal to an investor’s principal investment in any new or emerging company.



• A custodial trust held by an American FDIC insured bank.

• Guaranteed Contracts of Insurance issued by top rated U.S. insurance companies.

Utilizes



Is offered by companies committed to providing the safety of capital protection as well as upside potential to investors.



• Security of investment

• Return on investment

• Liquidity of investment

• Exit Strategies

Provides Solutions



The The InvestorInvestorThe The InvestorInvestor

New Venture New Venture oror Emerging Emerging CompanyCompany

New Venture New Venture oror Emerging Emerging CompanyCompany

PrincipalProtector® Insurance TrustInsurance Trust

Guaranteed Contracts of

Insurance

%%%%

Pre-agreed Upon Performance or

Exit Strategy

Pre-agreed Upon Performance or

Exit Strategy



acts as a sinking fund which has been utilized by financial institutions for years.



Trust Contribution

Trust Contribution

Money placed in the Trust grows to become equal to the total or principal amount invested in the transaction.

The provisions of the Trust enhance the safety of the investment since the money will accumulate at a pre-determined rate.



Investors utilizing the PrincipalProtector will receive an amount equal to their principal in a defined period regardless of underlying company performance.



The ProcessThe Process• A portion of the capital invested

goes into the PrincipalProtector Trust.

• A Guaranteed Contract of Insurance is purchased by the Trust.

• The Investor is the beneficiary of the Trust.

• The Trust matures in a period certain.

• Distribution of the Trust is made to beneficiaries.



The insurance products purchased by the Trust:

• Are underwritten by top rated U.S. insurance companies.

• Provide tax deferred capital accumulation.



Trust Structure

• Creditors of the company may never attach the beneficial interest of investors.

• Creditors of one individual investor within the trust may never attach the beneficial interest of any other individual investor.

• One trust is established for each company with sub-trusts established for each investor.



The scenario for the investor involves the best of two worlds.

“A no lose proposition with high yield potential“.

A No Lose PropositionA No Lose

Proposition



By combining the equity investment with beneficial interest in the Trust, the investor:

• Is assured of receiving an amount equal to his or her original investment.

• No signatory guarantees to be enforced.

• The beneficial interest in the Trust is immediately available.



The Beneficial Interest

The Beneficial Interest

The beneficial interest

in the trust can be:• Sold

• Gifted

• Willed

• Bequeathed

• AssignedVENTURE FUNDING ADVISORSPrincipalProtector TRUST© COPYRIGHT – ALL RIGHTS RESERVED


Because the PrincipalProtector Trust can utilize a number of different types of guaranteed contracts of insurance, various accumulation features and duration periods make a variety of Trust options available.



Guaranteed contracts of insurance include:

• Guaranteed Investment Contracts

• Annuities

• Conventional life insurance products



Flexibility of the Trust

Flexibility of the Trust

Once established, the flexibility

consists of:

• Assignment of beneficial interest.

• Assignment of trustee.

• Change in custodian.

• Early exit strategiesVENTURE FUNDING ADVISORSPrincipalProtector TRUST© COPYRIGHT – ALL RIGHTS RESERVED


Early Exit Strategies for

Investors

Early Exit Strategies for

Investors1. Stock Exchange Option

2. Deferred Compensation Option

3. Early Trust Distribution



Stock Exchange Option

Stock Exchange Option

The Investor may receive an option that enables him to exchange the beneficial interest in the Trust for shares of common stock in the company.

• This option can be elected at any time the investor is willing to forgo further guarantee protection.

• Upon exercise of this option, the company will receive the beneficial interest in the Trust.



Deferred Compensation

Option

Deferred Compensation

OptionEntrepreneurs that meet pre-arranged obligations to their investors may acquire the beneficial interest in the PrincipalProtector Trust with a benefit similar to deferred compensation.



Early Trust DistributionEarly Trust Distribution

To provide the investor with more control over the guaranteed investment, the Trust may be distributed prior to the maturity of the program.

• If this option is exercised, the beneficiary of the Trust would have control over the process of maintaining the contract or dissolving the Trust and receiving the current value in cash.

• This option would be permitted after approximately 5 to 7 years or upon the insolvency of the company.

• This allows the beneficiary to end the program prior to the normal 10-12 year duration.



• Anyone can emulate a venture capitalist by investing in a new venture.

• Out of the current and upcoming group of small and emerging companies will come billion dollar giants.

The Venture Capitalist WayThe Venture

Capitalist Way



Many early investors in new ventures will become

multi-millionaires as a result of small investments.

The Venture Capitalist Way

The Venture Capitalist Way



Investors now have the opportunity to place some of their discretionary capital or IRA money into a private company or new venture with a guarantee of principal.



Author and founder of The Capital Institute, America’s largest financing advisory firm for small businesses.

“This Product is the first program I’ve seen that takes the risk out of risk capital.”Bruce Blechman

Takes the Risk OutTakes the Risk Out



“The product is a solid strategy that helps investors participate in Super Ventures.”

Author, attorney and partner of Development Company, whose principals have invested over $150 million in private equities of emerging companies.

A Solid StrategyA Solid Strategy



“The Program would seem to favor the investor…the elimination of risk makes venture capital investing safe enough for people to invest money from their individual retirement accounts.”Jed Graham, Wednesday, December 19, 2001

Volume 18, No. 176. Investor’s Business Daily

Low Risk Investing Gets Upgrade NEW VENTURE FUND IDEA: PrincipalProtector plan gives ultimate safeguard: money-back guarantee.


Documents

© COPYRIGHT 2004 INTERNATIONAL ENTREPRENEUR NETWORK ALL RIGHTS RESERVED Transforming ordinary investors into “Fearless Venture Capitalists” VENTURE FUNDING