mgu Marketing bro new ver2

The LTV Extension Commercial Banking Asset Backed Lending AR Financing Non-Bank Bank Credit Union Private Equity Patent Pending

Innovation We insure this portion in Lending Million & Millions of new revenue When a borrower comes to a bank, the financial Commercial Banking institution figures what they can borrow THEN Assert backed Lending the credit committee steps in placing there “Risk Tolerance” on the prospect called the LTV. 1. Yes, weNtAaonRk-eBFsianenacknucBriinatngyk, but it never leaves the We provide A+ rated insurance from where the bank or yCoruedrictoUnntiroonl LTV leaves off, too 99% of there borrowing power. We do this for BOTH old and new loans! 2. Even if thPerirveaties Eaqculiatyim the security STILL never leaves the bank! We guarantee 100% of Principal. 3. All insurance is hPigathenltyPernadtinegd 4. We use an asset you do not 5. No CECL effect on these new loans 6. The reinsurance pool has been put together by Willis re Towers Watson = a mark of quality

Mid-size companies at lenders miss the boat: Big Companies deemed to “Big to Fail” that have Click the link to view the report up to 2015 have received over 333,000 IP loans https://relecura.com/reports/IP_Backed_Financing.pdf A 36-page report of who did it, how much and what type of IP loans were lent against, along with a less than 2% loss! Only for those to big to fail! Providing insurance for IP assets The small-cap to mid-cap companies A or A+ rated paper have been mostly avoided regarding IP loans transformed it to the equivalent Why? of a hard asset There IP has been trapped in a and avoids CECL reserves! Blanket Lien and is perhaps the world most misunderstood asset $3 to $4 Trillion across the country waiting to be insured!

IP Extension loans will: • Allow you to leverage current borrowers for new loans • Give your lending operation a “Highly” competitive advantage • Provide means of avoiding CECL impending reserve regulations • Increase loan retention • Become an industry disrupter

How does this work? (more information) A banking term is LTV (loan to value). The average industry LTV is about 70%. That means when a company arrives at a lender, you analyze the company’s financials to see how much of a loan the company could qualify for. No lender will offer a loan for the maximum amount the company qualifies for. The credit committee sets a maximum LTV, often around 70%, as the institution’s loan tolerance. This product insures the missing piece between the lender’s maximum LTV and what the company could afford. The insurance limit is calculated as to “fair market value of the borrowers IP” discounted by 60% with a maximum limit of $15m. The offered limit is placed on a 5-year amortization schedule. You can finance both the appraisal fee, the insurance premium inside the loan and add a bank rate to it all!

If you will invest 10-15 minutes in reading this brochure and follow this plan, your financial Institution will experience a 5-15% increase in NEW BUSINESS for commercial loans. Simple basic facts: Warren Buffet has described the mid-cap market consisting of companies between $30 million and $1 billion. q We see the lending space possessing three types of markets: 1. Small companies under $30 million in sales a) For what we do these type of company's present risk 2. Small to medium size companies (mid-caps) – The Buffet definition a) This is our market 3. Lager companies a) These types of companies generally can get anything they need and have access to public markets g A common trait among all lenders, in our market segment, is to take a blanket lien on all assets when this size company approaches a lender. That lien encumbers the company’s IP assets. We believe this is a common trait across all types of lenders, accumulating about $3.5 Trillion in IP assets just sitting around, misunderstood, and underutilized. Our mission is to convert as much as possible of those assets as security for a new type loan. The majority of our market size accounts have no access to public debt. If a need for additional LIQUIDITY is required, the borrower falls prey to the exorbitant rates of mezzanine lenders.

Understanding that, it opens a new market for both lenders and insurers to cooperate for each other’s benefit. We backstop the intellectual property (IP) of a blanket lien with highly rated insurance companies. When this is done, under Basel II & III it is the insurance that picks up the reserve component of the new loan. When that happens you can use the CECL “free revenue” to help offset the CECL expense rule on your normal commercial lending function. How do you make money with this new product? When a borrower arrives from your current portfolio or as a result of a refinance from a competitive lender, if the borrower qualifies, your financial institution can add whatever rate you wish to our cost effective 3% rate per year on a 5-year amortization contract. The loan rate plus our premium rate will be much lower than the cost of a mezzanine lender. In a round about way, we turned your bank into a new type of lender. Many years ago it was called lending on the Air Ball - now we insured it. With the fed cutting rate after rate, lenders are having a hard time making money in an already very competitive market. This creatively weaves around that fact. The CFO’s are understanding CECL but it has not filtered down to the sales floor yet.

A lender may have an IP extension loan over any type of loan: (Minimum loan is $2m and the maximum is $15m per company) • Regular term commercial fixed loan • Revolver • ABL Loan • AR loan Corp., or lease • Commercial Real Estate Any of the above must be cross defaulted with the new IP Extension loan. g If we cross-default and the base loan goes bad, the lender gives up the IP for a claim. The lender would not be able to sell the company to recoup the losses without the IP. We understand that. We employ an insurance policy and claims system that always allows the security to remain with the lender . g The utilization of the fair market value discount and amortization schedule plays an important part in the product. If all goes well the client lender may never have to make a claim. If the loan goes “total bust” then the client lender has two choices: 1. Make a claim for the balance due on the schedule in the policy by exchanging the IP for the claim value. 2. As the discount is large on the IP, added to by the decreasing Amt schedule, they might find it wise to sell it on the out-side. Shortfall or Clawback Claim – here the lender can sell both loans but needs the IP to do so. We have developed a “Patent Pending” method to allow the lender to make a claim, always retaining the IP with this system. This allows the lender’s principal to always be 100% guaranteed.

Why work with us? As this is a vast new market that banks, and insurance companies alike will wish to participate, in time, there will be competition. It has been designed to meet a same type risk standard that would be met by top quality chief credit officers of lenders. Let’s return the three markets in the lending space, we defined. • We do not go after small start-up companies • You will shortly realize we seek the strongest accounts • We have set up a product to last the test of time with solid underwriting, metrics, and carriers • Our underwriting company is one of the worlds best and largest • We use a fronting carrier backed by highly rated reinsurers with the help of Willis Re. We have found many large reinsurers interested in this product. Our policy is rock solid. • We write only a $15m maximum limit and our combined carrier/reinsurers’ assets approach or exceed any financial institution you can find. • This may be a new market, but the company founder has worked for 17 years in the financial institution IP monetization field and completed the industries 1st IP deal • We have amassed a group of some of the largest and best appraisers in the world to ease the bottleneck of getting appraisals done in a timely fashion. Artificial Intelligence will help make speed & accuracy possible overtime

Prospecting Workflow Example: (We help you find the loans) We start here 1,000 200 Prospects In this exhibit shows a lender has 1,000 loans loans? to Account reps in their portfolio, found 200 prospects into, C&I Example for a possible 100 new loan extensions. Bank Found Current Bank Average sale = $5m loan @ bank rate 6% Portfolio Current Bank Current equals about $1 Million in spread over 5 Loans Portfolio Portfolio Loans years. Current records show write offs at 2% Loans Result 100 loans - Bank Loans Sorted to underwritten to 200 prospects Reps visited CFO New revenue $90,000,000 est. the VARIOUS with a 2 to 1 acceptance Lender sorts data for every 100 average loans default rates to apply INTERNALLY How many loans do you have in your Software searched and found 200 Portfolio? suspect loans at default levels on just one pass - many subsets to look at Bank applies filters to find prospects

IP Enhancements Prospect Search Distribution of leads Credit Acct. Score Rep Geography Start Sales Size Data Sort Acct. Loan Results Rep Prospects SIC Code Credit score - First Pass over 700 Acct. Out to CFO’s Loan Rep Size Geography - State, City, Zip Code Loan Acct. Type Sales Size - $30m to $400m Rep SIC Code - Per desire Base Loan Size - $5m to $50m Loan Type -Regular, Revolver, ABL, AR Query Results Query Data Set For Prospects

Underwriting – The Lender - the MGU Contracted Appraisers Loan Lender Decision No Prospects Yes Underwriting Underwriting Policy • Add to master Policy The lender makes certain Issue • Archive Data that the borrower has • Accounting reasonable ability to cover • Lender Notification the base loan and IP loan Loan MGU Specialty Risk is large information wholesale underwriter in the United State with the capacity Support to get the job done, no matter the volume.

What does this mean for you? Below the value for you of one loan over a 5-years term Spread simple math Loan Amt 5% 5.50% 6% 5,000,000 660,000 730,000 800,000 10,000,000 1,320,000 1,460,000 1,600,000 15,000,000 1,980,000 2,190,000 2,400,000 Currently the minimum loan is $2,000,000 & max is $15,000,000 You lending institution can add any interest rate to our 3% rate per year on a 5-year amortized loan. Now mezzanine lending will be almost over as even the combined rate is too competitive and there is of course “No” equity ever taken. Both the appraisal and the insurance premium can be financed in the loan.

We can easily show you how to determine just how much IP for new loans exist in your Institution. Finding out is free and we will tell you what to do to find out. For detailed information please call: Richard DAgostino, founder 704-575-5344