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Flowcharts of Collateral eva Media Principal Protected Structure

Flowcharts of Collateral Geneva Media Principal Protected Structure

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Page 1: Flowcharts of Collateral Geneva Media Principal Protected Structure

Flowcharts of Collateral

Geneva Media Principal Protected Structure

Page 2: Flowcharts of Collateral Geneva Media Principal Protected Structure

Breakdown of Collateral Sources:

Service Credits = $ 32,000,000 Picture Subsidy = $ 32,000,000

Labor Credit = $ 32,000,000Canada Credit = $ 22,000,000

Pre-Sales = $ 21,000,000 Cash Values = $ 75,000,000

Commission = $ 15,000,000

Total Collateral = $ 230,000,000

$100,000,000 $100,000,000

Production Funds Insurance Costs

$75MMCASH

VALUES

$100,000,000Production Cost and no P&A cost

Fund spends:

$100,000,000Production Costs plus all P&A cost

Studio spends:

$200MM Media Slate

25% Profits 75% Profits

100% break-even for any bank or equity investor

Benefits: Families retain $ 750,000,000(FAMILIES STAY PROTECTED W/ $750MM IN BENEFITS)

Breakeven: Fund retains $ 118,000,000(FUND CAN RETAIN $118MM IN MEDIA TAX CREDITS)

(Estimated L&H Commissions on CAIC = $15MM to $18MM )

$200MM LOAN/EQUITY FACILITY w/ $230MM Collateral

CAIC

$750MM FACE

AMOUNTS

$200MM Geneva Media Structure

Geneva Media Principal Protected Structure

Page 3: Flowcharts of Collateral Geneva Media Principal Protected Structure

Hedge Fund

Bank

Producers

TV Network

Investors Payee Players Participants

Cast / Crew

CV(Cash Values)

CAIC(UL Policy)

IRS 83(b)

ERISA

MediaMitigation LPpays premiums

and has REBA onall policies on file

General Partnership (2%)Bank (1%) Media/Film Co (1%)

LPs capital contribution (98%)Cast / Crew swap bonus for equity

Cast / Crew’s Families

Media/Film Co.

Funds Bonus

Salary

UL Ownershipalways remainswith Cast/Crew

Media/Film Co. pays 162 Salary Bonus to Media Mitigation, LP

Media/FilmCo.

…NO MOVING PARTS, FULLY LEGAL, BANK AS FIDUCIARY…

Geneva Media Principal Protected Structure

Page 4: Flowcharts of Collateral Geneva Media Principal Protected Structure

Geneva Media Principal Protected Structure

Page 5: Flowcharts of Collateral Geneva Media Principal Protected Structure

Geneva Media Principal Protected Structure

“Insurance-Backed” Media Slates(similar to Destination Films and AIG P&C contracts)

“Cash-Backed” Media Slates(similar to tax credit or pre-sale discount contracts)

Property & Casualty Companieslike AXA or AIG unfortunately collected

too few premium dollars to suffciantly cover all $200mm of risk

Media Slate has $200,000,000 at risk

Property&

CasualtyPolicy

(wrapper)

PolicyProvisions

&Limitations(coverage)

Bankor

HedgeFund

$

DisclaimObligation

&Recind(lawsuit)

Life&

HealthPolicy(cash)

PolicyValues

&Benefits

(guarantee)

DisclaimObligation

&Recind

(unlawful)

Life & Health Companieslike Met, State Farm and Pan American

offer cash value accounts to suffciantly cover all $200mm of risk

Media Slate has no risk

Bankor

HedgeFund

$

Indieor

StudioFilms

$

Indieor

StudioFilms

$

P&C Premium:

$5,000,000 L&H Premium:

$100,000,000

Page 6: Flowcharts of Collateral Geneva Media Principal Protected Structure

Risk Mitigation Features

Geneva Media Principal Protected Structure

Page 7: Flowcharts of Collateral Geneva Media Principal Protected Structure

CAIC -- Cash Accumulation Insurance Contracts -- Provides a massive amount of liquid cash value which is set aside and reserved to protect fund assets. The proprietary use of CAIC adds life/health benefits for cast and crew members and also provides 100% cost recapture protection for all projects by effectively doubling or tripling Canadian and US tax credits

REBA -- Restrictive Employee Bonus Agreement -- Allows investors and banks to collateralize liquid cash surrender values inside CAIC. Aaa rated insurance carriers with a perfect track records in interest crediting and claims paying performance are also protected by State Guaranty Funds

Geneva Media Principal Protected Structure

Page 8: Flowcharts of Collateral Geneva Media Principal Protected Structure

Pre-Sales -- Discountable Contract Protection -- Foreign and domestic distributors promise to pay a fixed price for the right to exhibit media or sell software. Investors are thus protected by pre-payment agreements

Tax Credits -- Theatrical Incentives -- U.S. States and Canadian provinces provide between 32% and 62% reimbursement or credits for theatrical productions shot within their borders. Tax credits are considered collateral

Pick-Up Deal -- Studio Purchase Agreement -- A studio, TV network, or media company promises to purchase a project when it is finished, for a fixed price, which fully covers all of the fund’s production costs and invested expenditures

Geneva Media Principal Protected Structure

Page 9: Flowcharts of Collateral Geneva Media Principal Protected Structure

Contact:

This confidential investor preview document is intended solely for general informational purposes in order to foster the discussion of new business ideas with prospective partners and other persons relevant to such business. It is not intended as, and does not constitute,

an offer to sell, or a solicitation to buy, any security. Any such offer or solicitation, if ever made, shall be made by a prospectus, offering circular, offering memorandum, or similar

document which will contain updated and additional information as well as a discussion of risks and other important matters. Such information, and any other information provided to the recipient about the business ideas contained herein, may be based on estimates and

assumptions (which may be subjective), and information provided by third parties. All of the foregoing, as well as the information in this document and any other information provided to

the recipient, are subject to change. Any reproduction or distribution of this confidential document in whole or in part, or the divulgence of any of its contents without the prior written

consent of Geneva Media Holdings, LLC and is prohibited. Any distribution of this confidential document to any person other than the person to whom it was originally delivered by Geneva Media Holdings, LLC , or its authorized agent, is prohibited. By

accepting this confidential document, the recipient agrees to abide by all of the foregoing conditions.

Beverly Hills, CaliforniaTelephone 424.666.8769

Geneva Media Principal Protected Structure