CAIC (Cash Accumulation Insurance Contracts) Available through Geneva Media Holdings, LLC

Source: Merill Lynch, Industry Overview Merill Lynch: Monte Carlo Simulations INPUT T H E P R O B L E M S

Source: Merill Lynch, Industry Overview Merill Lynch: Monte Carlo Simulations RESULT SLATE OF FILMS SINGLE FILMS T H E P R O B L E M S

Source: DyerData, Industry Indie Performance Survey “Single films packaged by top producers failed to recoup 30% of the time, and in total lost 45% of investor’s assets.“ --DyerData analysis Geneva Media: Monte Carlo Simulation T H E P R O B L E M S

Source: DyerData, Industry Slate Performance Survey Geneva Media: Monte Carlo Simulation “Studio slates failed to recoup 20% of the time, and lost 35% of investor’s assets.“ --DyerData analysis T H E P R O B L E M S

TopTotal GrossLibrary Avg. BO#1 PictureGross 1Steven Spielberg$6, $102.6E.T.$ Kathleen Kennedy$5, $94.5E.T.$ Stan Lee$4, $185.3The Avengers$ Jerry Bruckheimer$4, $112.2Dead Man's Chest$ Frank Marshall$4, $83.5Indiana Jones 4$ Brian Grazer$4, $66.7The Grinch$ Roger Birnbaum$3, $50.8Bruce Almighty$ Scott Rudin$3, $48.0True Grit$ Kevin Feige$3, $194.9The Avengers$ Joel Silver$3, $54.0The Matrix Reloaded$ Avi Arad$3, $161.8Spider-Man$ George Lucas$3, $161.6The Phantom Menace$ Thomas Tull$3, $142.7The Dark Knight$ Gary Barber$3, $46.4Bruce Almighty$ John Lasseter$3, $180.4Toy Story 3$ Neal H. Moritz$2, $69.7I Am Legend$ Ian Bryce$2, $162.1Spider-Man$ Arnon Milchan$2, $33.9Mr. & Mrs. Smith$ Ryan Kavanaugh$2, $49.9Little Fockers$ Jack Giarraputo$2, $77.1Big Daddy$ David Heyman$2, $192.7Harry Potter / Deathly Hallows (P2)$381.0 Box Office Mojo’s Top Independent Producers by Worldwide Box Office Gross T H E P R O B L E M S

Box Office Mojo’s Top Independent Producers by Worldwide Box Office Gross MANY NEW FINANCIERS IN THE “ TOP 20 ” HAD NO PRODUCTION EXPERIENCE PRIOR TO SECURING THEIR SLATE CAPITAL MANY ARE STILL BORROWING MONEY BECAUSE THEIR MODELS NEVER ACTUALLY WORKED FOR THEM… OR FOR INVESTORS T H E P R O B L E M S

T H E C A S E S T U D Y In simple terms, how does CAIC work? Cast and crews are bonused a salary The salaries “double” state film tax credits A “restriction” is placed on each salary bonus Restrictions removed at break even, or year 10 This provides loan collateral and liquidity CAIC also insures a cast and crew’s families (from disability and death)

$50 M FUND $25,000,000 Negative Cost Insurance Cost CAIC $25 M CASH VALUE $75 M FACE AMOUNTS $25,000,000 Negative Cost Fund spend: $25,000,000 Negative Cost Studio spend: $50 M SLATE 25% profit100% P&A C A S E S T U D Y (Single Picture Deal)

Srvs. Credit = $ 6,250,000 Picture Sub. = $ 6,250,000 Labr. Credit = $ 6,250,000 MGA = $ 3,750,000 CV = $ 25,000,000 CTC = $ 7,500,000 TOTAL = $ 55,000,000 (10% PROFIT ! EVEN WITH ZERO BOX OFFICE) Hit film? Keep: $ 55,000,000 Retain all FA +$ 75,000,000 (BENEFICIARY CHANGE--AFTER FILM SHOOT-- GIVES FAMILIES BENEFITS FOR A LIFETIME !) CAIC $75 M FACE AMOUNTS $50 M FUND $50 M SLATE $25,000,000 Negative Cost Insurance Cost $25,000,000 Negative Cost Fund spend: Studio spend: Srvs. Credit = $ 6,250,000 Picture Sub. = $ 6,250,000 Labr. Credit = $ 6,250,000 MGA = $ 3,750,000 CV = $ 25,000,000 CTC = $ 7,500,000 TOTAL = $ 55,000,000 $50 M FUND $50 M SLATE $25,000,000 Negative Cost Insurance Cost $25 M CASH VALUE CAIC $25,000,000 Negative Cost $75 M FACE AMOUNTS Fund spend: Studio spend: + 25% profit As well as SAFETY, fund receives 25 % of film’s PROFITS! If the feature film breaks even, the fund keeps $55,000,000 C A S E S T U D Y (Single Picture Deal)

10% PROFIT regardless of box office or ancillary sales C A S E S T U D Y (Single Picture Deal)

Srvs. Credit = $ 18,750,000 Picture Sub. = $ 18,750,000 Labr. Credit = $ 18,750,000 C.T.C. = $ 15,000,000 F.R. = $ 13,750,000 C.V. = $ 75,000,000 All Collateral = $ 150,000,000 $150M LP $75,000,000 Negative Cost Insurance Cost CAIC $300M FACE AMOUNTS $75M CASH VALUES $75,000,000 Negative Cost LP spend: $75,000,000 Negative Cost Studio spend: $150M Slate 25% Profits75% Profits 100 % break-even for bank or equity facility Retain F. A. + $ 300,000,000 ( FAMILIES PROTECTED W/ $300M IN BENEFITS) Hit films? C.V. $ 150,000,000 ( FAMILIES AND FUND RUNNERS RETAIN $150M) If the film facility breaks even, the fund keeps $150,000,000! M.G.A. = $15M to $ 30,000,000 C A S E S T U D Y (Indie Producer’s Slate)

100% SAFETY regardless of box office or ancillary sales C A S E S T U D Y (Indie Producer’s Slate)

Srvs. Credits $ 125,000,000 Picture Sub. $ 125,000,000 Labor Credit $ 125,000,000 Canada $ 50,000,000 PreSale $ 75,000,000 C.V. = $ 500,000,000 Liquid Cash = $1,000,000,000 $1B FUND $500,000,000 Negative Cost Insurance Cost CAIC $2B FACE AMOUNTS $500M CASH VALUES $500,000,000 Negative Cost Fund spend: $500,000,000 Negative Cost Studio spend: $1B SLATE 25% Profits75% Profits 100 % break-even for bank or equity facility Retain F. A. + $2,000,000,000 ( $2B OF FAMILY INSURANCE STAYS IN-FORCE) Hit films? C.V. $ 500,000,000 ( FAMILIES AND FUND RUNNERS RETAIN $500M ) If the film facility breaks even, the fund keeps $1,000,000,000 M.G.A. = $75M to $ 95,000,000 C A S E S T U D Y (Studio Financing Facility)

100% SAFETY regardless of box office or ancillary sales C A S E S T U D Y (Studio Financing Facility)

FUND’s TOTAL OUTLAY IS $1,000,000,000 (25% incentive returns $250 mm in tax credits) FUND’s TRUE SPENDING IS $750 mm (50% allocated to protect the cast / crew / investors) STUDIO'S TOTAL OUTLAY IS $500 mm STUDIO'S ACTUAL COST IS $500 mm (studio incurs FULL AMOUNT - NO tax credit) RESULT: FUND INVESTS……...$750 mm STUDIO INVESTS……$500 mm STUDIO SPENDS 50% LESS THAN THE FUND STUDIO KEEPS 50% MORE THAN THE FUND T H E C A S E S T U D Y

Who profits from the CAIC structure? States/provinces’ workers/businesses profit Stars and cast members have golden handcuffs Extras and crew member’s families are protected Net film revenues are pure profit to the investors CAICs earn tax-free accumulations and interest Profits are enhanced by the state tax credits At breakeven families/fund keep all gains T H E C A S E S T U D Y

The Crew ♀♂ ♀♂ $ TAX FREE CASH TO FAMILY The Funding Entity: Pension Funds, V.C.s Hedge Funds, Banks, Private Equity, but NOT a film studio! Film Company Film Company FIilm Company Film Company The Funder $ $ $ $ $ $ $ $ $ $ Collateral Protection Media Mitigation Holdings, LP (162 Bonus REBA) Who owns the CAIC --so it qualifies as deductible? The Funder $ $ $ $ $ $ $ $ $ $ TAX NEUTRAL CASH TO FUNDER T H E G E N E V A S T R U C T U R E The Crew ♀♂ ♀♂

Hedge Fund Major Bank Film Studio TV Network Investors PayeePlayers Participants Cast / Crew CV (Cash Values) CAIC (UL Policy) IRS 83(b) ERISA Media Mitigation LP pays premiums and holds CV assignment Film Company LP General Partnership (2%) Investors (1%) and Film Co. (1%) LP s capital contribution (98%) Cast / Crew swap bonus for equity Cast / Crew’s Families Film Company LP Funds Bonus Salary UL Ownership always remains with Cast/Crew Film Company LP can pay 162 Bonus to Media Mitigation, LP General Partners have CV collateral and deduct premium costs (because insurance is not purchased to cover loans, is owned by Cast and Crew, and qualifies for UL film credit reimbursements). Insurance face amounts (death benefits) are paid to the Film Company, and after filming, to; the families, their heirs, assigns, a dynasty or a family living trust. Cast and Crew receive a bonus (this earns tax credits from US film incentives for salary). Bonus is pledged as equity in exchange for valuable consideration in limited partnership interests in Media Mitigation Holdings, LLC (this acts as a capital contribution for LP interests). Media Mitigation LP applies for individual UL policies and pays the premiums from capital contributions. Cast and Crew are individual UL policyowners (who initially choose to make the death benefit payable to the Film Company), thereby making all individual UL premiums deductible (i.e., not salary or bonus, not owned by Media Mitigation LP, not used for loan collateral, not used for buy-sell purposes, not owned by key people or majority owners). The Cast and Crew’s capital contribution to the LP offsets the economic benefit of the premiums paid. T H E G E N E V A S T R U C T U R E

CAIC HAVE BECOME THE MOST COMMONLY UTILIZED “LIQUID ASSET” FOR ALL FORTUNE 1000 CORPORATIONS PROVIDING “INSURED RISK” NQDB PLANS COMPANYCO.’s CAPITAL VALUE CAIC (LIQUID CASH) % OF CAIC Tribune Media$ 0 US$ 119,000,000 US 2.130% Washington Mu $ 0 US $ 5,072,000,000 US 3.125% Wachovia$ 0 US$ 14,575,000,000 US 3.475% JPMorgan Chase $ 481,500,000,000 US$ 10,050,000,000 US 3.545% Citibank Group $ 72,500,000,000 US$ 4,579,000,000 US 5.863% Wal-Mart $ 193,400,000,000 US$ 13,090,000,000 US 6.768% Comerica Bank $ 10,000,000,000 US$ 1,073,000,000 US % First Republic $ 34,4000,000,000 US$ 701,672,000 US 2.095% U.S. COMPANIES HAVE USED CAIC FOR 50 YRS! T H E G E N E V A S T R U C T U R E

JP MORGAN HAS $481B ADMITTED ASSETS & $10B CAIC! T H E G E N E V A S T R U C T U R E

COMERICA HAS $10B ADMITTED ASSETS & $1B CAIC! T H E G E N E V A S T R U C T U R E

CITIBANK HAS $72.5B ADMITTED ASSETS & $4.6B CAIC! T H E G E N E V A S T R U C T U R E

What is the legal basis of the CAIC structure ? IRS tax code 264(a)(1) – L&H cost deductions Simple employee insurance benefit (162 Bonus) Restrictive Executive Benefit Agreement (REBA) Proven COLI and NQDC UL contract performance IRS tax code 181 and 199 film tax deductions US and Canadian theatrical film tax credits T H E G E N E V A S T R U C T U R E

The Crew ♀♂ ♀♂ The Funder $ $ $ $ $ $ $ $ $ Who owns the CAIC --so it qualifies for perfection? Media Mitigation Holdings, LLP (3 rd Party REBA) CAIC 98 % L.Partners Crew exchanges bonus & Collateral Assignment of the Cash Accumulations for a L.Partners’ interests Policyowner Major Bank 1 % G.P. Owner Film LP Bank / Funder G.P.s control the Collateral Assignment and all Cash Accumulation A+ Insurer $ $ 1 % G.P. Owner % G.P. T H E G E N E V A S T R U C T U R E

A+ Insurer Major Bank C a s t and Crew Labor & Serv Costs Families Slate Fund Studio / Network $ $ 35%- 65% Tax Credits! $ CAIC $$$$ $$$ $$ $ $ SAFETY! 50% Insurance Premium Costs Film LP Hedge Fund T H E G E N E V A S T R U C T U R E

How is a 162 Bonus structure offered to workers? Agents & Managers negotiate worker pay Film, LP also pays 162 Bonus The lower level Cast & Crew can decide to “PLAY” --or not Family is Protected

T H E G E N E V A S T R U C T U R E How does a “Media Mitigation” protect the funders? 1% General Partner controls cash values Film, LP pays Extra $50,000 Cast & Crew puts $50,000 in Media Mitigation Holdings LP $50,000 UL Premium

T H E C A S E S T U D Y STUDIO CO-PRODUCTION: CAICs ON 240 CREW MEMBERS (7 YEAR FUND TERM) Fund Spends $24,000,000 and a Studio Spends $12,000,000 ATLC – Above-the-Line Cost (Salary for 240 cast/crew members plus perks)$12,000,000 BTLC – Below-the-Line Cost (for physical production, rentals, negative costs)$12,000,000 CAIC – Cash Accumulation Insurance Contracts (on 240 insured employees) $12,000,000 Total Production Spending ($36,000,000) Studio’s Risk on Negative Costs ($12,000,000) Investment Fund Risk on Negative Costs ($24,000,000) Total Required for Investment Fund to Break Even $24,000,000 Recoupment from State Tax Credits (25% of film budget) $ 9,000,000 Guaranteed Cash Accumulation Insurance (CAIC) liquid cash reserves $ 6,330,000 Commissions Payable on Cash Accumulation Insurance Contracts $ 4,850,000 Foreign/Dom Distribution Revenues (Return of 10.75% of $36M budget) $ 3,870,000 Total Soft Money, CAIC Cash Values, Commissions, and Film Revenues $24,000,000

T H E C A S E S T U D Y Cash Accumulation Policy, Non-MEC, Guaranteed UL: Male, age 35, non-smoker, standard health risk. Guaranteed Values Illustrated (2.5%) Assumed Values Illustrated (4.75%) Yr Age ExpensedAccm Cash Face Amount Accm Cash Face Amount PremiumValue Value (Death Benefit) Value Value (Death Benefit) _____________________________________________________________________________________ 1 36 $50,000 45,787 37,523 1,497,006 $46,693 38,429 1,497, ,981 28,454 1,497,006 46,894 30,367 1,497, ,052 27,525 1,497,006 47,087 30,560 1,497, ,966 26,439 1,497,00647,205 30,678 1,497, ,733 25,206 1,497,006 47,213 30,686 1,497,006 _____________________________________________________________________________________ ( the death ,540 25, ,00048,163 31, ,000 benefit is ,249 26, ,000 49,073 34, ,000 lowered ,836 27, ,000 49,930 36, ,000 in year 6) ,274 28, ,000 50,719 39, , ,546 29, ,000 51,425 41, , ,633 30, ,000 52,070 43, , ,528 30, ,000 52,631 46, , ,254 31, ,000 53,119 48, , ,837 31, ,000 53,539 50, , ,241 31, ,000 53,893 52, ,000 _____________________________________________________________________________________ ,418 31, ,000 54,171 54, , ,309 29, ,00054,368 54, , ,852 26, ,000 54,463 54, , ,991 23, ,000 54,424 54, ,000 POLICY IS A CONSUMER GRADE UL CONTRACT ISSUED BY STATE FARM INSURANCE OF ILLINOIS STUDIO CO-PRODUCTION: CAICs ON 240 CREW MEMBERS (7 YEAR FUND TERM)

What does the structure achieve? Protects media investors from loss Helps increase capital at major studios Provides true, film/TV slate, risk mitigation Creates millions in new media spending Provides loan collateral and liquidity Protects the film’s cast and crew T H E G E N E V A S T R U C T U R E

25% to 35% tax incentives for financial service costs (including L&H and P&C insurance premiums and banking fees) from all qualified lenders or carriers that are commercially domiciled in over 20 states (GA, LA, IL, FL, NM, PA, CT, CA) Productions in a number of U.S. states (and Canadian provinces) also offer: 25% to 65% qualified production labor credits; and an additional 2% to 12% additional labor incentives, or for filming in areas of economic impoverishment T H E G E N E V A S T R U C T U R E

Source: Weiss Research, American and Canadian L&H Company ratings, May 2012 T H E G E N E V A S T R U C T U R E

Year States with Film Incentive Program Incentive Amounts Offered 1999 and earlier 4$2 million 20004$3 million 20014$1 million 20025$1 million 20035$2 million $68 million $129 million $369 million $489 million $807 million $1.247 billion $1.396 billion $1.299 billion Source: Tax Foundation.org, Movie Production Incentives US T H E G E N E V A S T R U C T U R E

Year States with Film Incentive Program Incentive Amounts Offered 1999 and earlier 4$2 million 20004$3 million 20014$1 million 20025$1 million 20035$2 million $68 million $129 million $369 million $489 million $807 million $1.247 billion $1.396 billion $1.299 billion Source: Tax Foundation.org, Movie Production Incentives U. S. FILM TAX INCENTIVE AMOUNTS ARE STILL GROWING: $2B+ IN US T H E G E N E V A S T R U C T U R E

CALIFORNIA T H E G E N E V A S T R U C T U R E

CALIFORNIA T H E G E N E V A S T R U C T U R E

ILLINOIS T H E G E N E V A S T R U C T U R E

GEORGIA T H E G E N E V A S T R U C T U R E

LOUISIANA T H E G E N E V A S T R U C T U R E

PUERTO RICO T H E G E N E V A S T R U C T U R E

FLORIDA T H E G E N E V A S T R U C T U R E

NEW MEXICO T H E G E N E V A S T R U C T U R E

PENNSYLVANIA T H E G E N E V A S T R U C T U R E

CONNECTICUT T H E G E N E V A S T R U C T U R E

Geneva Media Holdings LLC : (a risk mitigation consulting firm established in California in 1989, and incorporated in 1994) 9171 Wilshire Blvd #670, Beverly Hills, CA (424) We support accounting, financial, legal and tax advisors Offices; Beverly Hills, CA. Lake Forest, IL (100+ partners) We are top underwriters and experienced in working with: –Media verticals (e.g., Tribune Media… etc., since 1978) –Bell-Phillip TV (e.g., Y & R… CBS… etc., since 1989) –Other key client work (e.g., Kohl’s… Pritzker’s… etc.) –Advanced financial, tax, estate and NQDC planning –Administration for COLI, BOLI, CAIC and key-man T H E I N D U S T R Y L E A D E R S