RIGHT TO USE A COLLATERALIZED MORTGAGE BOND (CMO)

THIS OPPORTUNITY SUPERSEDES ALL PRIOR OFFERING ON THIS SUBJECT, IS ONLY AVAILABLE ON A PER CASE BASIS AND IS SUBJECT TO CLOSE AS ANY TIME WITHOUT PRIOR NOTIFICATION. PLEASE READ THIS DOCUMENT, CAREFULLY AS THERE HAVE BEEN SOME CHANGES, ESPECIALLY IN THE AMOUNT OF THE LINE OF CREDIT AGAINST THE CMOs.

July 01, 2008

Many of you have asked us about the use of a leased instrument or leased POF for the purposes of hypothecation and trading. Accordingly, this document has been prepared to provide you with an overview of this subject and an alternative solution for you and your clients.

GENERAL INFORMATION ABOUT LEASED ASSETS: When someone offers to lease you an instrument or a POF (Asset) for a period of time, for a fixed amount of costs (fees), they are not offering to allow you to have that Asset hypothecated, moved or pledged. In fact, all they are offering you is the ability to leave the Asset where it is, in safekeeping in the name of the lessor, not in your name. Further, you will never be able to obtain a line of credit or hypothecation against such Asset as you are NOT the actual, legal and beneficial owner of the Asset. Therefore, if you lease an instrument, you have done so without any opportunity to hypothecate it or trade on the value of the Asset. In short, you have wasted your money.

Accordingly, we have developed a turnkey solution for our clients, addressing that above shortcoming, based on the Right to Use a CMO for a one-year period of time.

GENERAL INFORMATION ABOUT CMOs:
A CMO is a Mortgage Bond that has a good coupon, but no value at Maturity. Like most instruments, the owner can clip the coupons on an annual basis. However, unlike other instruments, at the time of Maturity of the CMO, there is no one that is going to pay the owner the Face Value (like other instruments) or any value. At Maturity, the instrument is dead and the coupons are finished and there are no further activities with the CMO.

USE OF CMO, CREDIT LINE ON CMO AND TRADING OF CREDIT: Yes, it is possible for us to obtain a Credit Line against a CMO and then perform the trading. However, the criteria for these activities are much different, as are the profits and fees, than those for other types of instrument (BGs, SLOCs, CDs, MTNs, Bond, Treasury, etc.).

First, the client must identify the amount of Cash Funds that it has available for such a transaction. The minimum amount of Cash Funds for this transaction is US$5M and the maximum amount is US$50M.

Second, the client must clearly understand that its Cash Funds will be moved to a U. S. Securities House and used for the sole purpose of acquiring the Right to Use a CMO for a period of one (1) year. At the end of the year, the CMO is returned, much like a leased instrument.

Third, the difference is that as the Provider, we will contract for and make all of the arrangements for the use of the CMO, the Credit Line on the CMO and perform the trading on the Credit Line. Therefore, there is no risk to the client that they used their money and did not receive any benefits from the trading.

Fourth, for US$5M, you will be granted a Right to Use the CMO that will yield a paper Line of Credit of US$50M solely for the purposes of trading with our Platform. This is not a Cash Line of Credit and no funds can be disbursed from the Line of Credit.

$5M $50M Line of Credit for Trading Purposes $7.5M $75M Line of Credit for Trading Purposes $10M $100M Line of Credit for Trading Purposes

Each additional $5M--$50M additional Line of Credit for Trading Purposes.

If a client has an amount that is not a multiple of $5M, we can make special arrangements. However, the minimum amount is always $5M

Fifth, to participate, the client must issue a set of documents, including a current Bank Proof of Funds Letter, in the amount that will be used ($5M to $50M), demonstrating that the client owns the funds, that they are free and clear and that they are prepared to move the funds to the U. S. Securities House. After the receipt of the ALL of the documents, we will issue the Agreement and supporting documents for obtaining the Right to Use the CMO and the Credit Line. This Agreement will also include the trading of the Credit Line. This is a turnkey offering and all three (3) elements are included. Additionally, the client will be required to furnish the Provider with the authority to transaction all of this business, including the arrangements for the CMO, the arrangements for the Credit Line and the trading of the Credit Line.

Sixth, given the nature of the CMO and the underlying profits from the trading for this specific asset, the client’s profits from this trading will be 7 Points Per Week on the Credit Line, for a period of 50 weeks.

From this amount, the client will be required to pay the brokers a fee of 1 Point Per Week. We suggest you sign an agreement with your client, to secure 1% to a maximum 5% profit share. Brokers will be protected.

EXAMPLE:
• Client has $10M available in Cash Funds for use in this transaction. • We will select a CMO that will produce a Line of Credit of $100M. • Client’s Weekly Gross Profits would be $100M x 7% or $7M • Brokers’ Fees would be $1M Per Week. • Client’s Weekly Net Profits would then be $6M. • Based on this profits being replicated 50 times, the investor earns: $300M and the broker earns what was agreed between the investor and the broker. We will make sure your JVA is honored.

Seventh, this is a huge amount of money to earn for an initial investment of $10M. Further, the client has NO obligations for repayment of the Credit Line as it was a paper-only Line of Credit for the sole purpose of trading. Further, unlike our normal Private, Managed Buy/Sell Transaction that requires the client to deploy 70% of their profits for project funding, the client has NO obligations for project funding from this transaction.

Eighth, at the conclusion of all of the trading, the CMO will be returned, the client and the brokers have their profits and there are no further obligations.

Ninth, if the client has a small instruments and wants us to hypothecate that instrument and then use the Net Proceeds for participation in this transaction, we can accommodate that request.

REMEMBER, THIS OFFERING IS ON A CASE-BY-CASE BASIS AND IS SUBJECT TO CLOSING OR CHANGES AT ANY TIME PRIOR TO THE ISSUANCE AND SIGNING OF DEFINITIVE AGREEMENT.

AND REMEMBER, BROKERS WILL BE PROTECTED.