Opportunity for Everyone

Disclaimer : Living in Peace, Japan-based NPO, does NOT solicit investments or sell financial products.

LIP is a part-time organization Representative Director Taejun Shin

Project Manager Akiko Sugiyama

Number of directors 7

Number of part-time workers 50+

Number of supporters 800+

Email transaction / day (incl. weekend) 100+

Range of working hours / day (incl. weekend) 0 – 20

Main office location Cloud

Cups of coffee I have had since establishment 5,000+

LIP Microfinance for MDGs

LIP (Japan)

CARD MRI

(Philippines)

Samic Limited

(Cambodia)

Investors (Japan)

Partnership

TK Agreement Intermediary

Planning / MFI selection / Monitoring

Investment & Operational

Support

Investment

Music Securities

(Japan)

Components of DD Process*

Management Quality • Strategy • Management Capability • Information Management System • HR / Governance

Financial Performance • Portfolio Quality • Operation Sustainability • Balance-sheet Quality • Cash Flow Stability

Country Performance • Macro-economic Performance • Political Stability • Quality of MFI Regulation • MFI Competitive Situation

Social Performance • Operating Area • Borrower Type • Contents of Service • Social Responsibility

*Self-audit will be conducted separately

Term proposal

1st financing Oct 2010, USD 100,000

2nd financing* Dec 2010, USD 100,000

3rd financing* Mar 2011, USD 100,000

Investment currency USD

Type of financing Preference Share (No voting right)

Expected return Floating **

Maturity 2011 December

Extension / Refinancing option Yes

Maximum Maturity 2013 December

*Contingent upon PAR test, i.e. when PAR level ameliorated to certain level, second financing is conducted ** See next page

Investment Return Calculation

Type Profit Driven*

Profit calculation base Net income of Chamkar Leu 2009

Investment return Base return + Floating Return

Base Return 6.00% per year

Floating return 1.0% (if positive growth) * profit growth 3.0%( if negative growth) * profit growth**

*Due to Japan’s security investment regulation, the financing should be profit-driven, i.e. the investment return is related to accounting profit ** Profit growth = Chamkar Leu net income of the year / net income of year 2009

Investment Return Calculation – ctnd.

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-4.00 -3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00

Investment Return

Profit Growth

Investment Return Summary

Schedule

Until June 2010 Dud diligence conducted, agreement on MOU

Until early July 2010 Investment committee approval

Until late July or early Aug 2010 Documentation

From Aug 2010 Initiate fund-raising