- Fairlink V.Fund - Presentation: Fairlink Group (US / CH / Fr) has - - PDF document

• Fairlink V.Fund -

Presentation:

Fairlink Group (US / CH / Fr) has identified a new opportunity to use the film industry for profit making on a short period with a low level of risk. The Concept Virtual Fund or V.Fund: funds are always under investors survey, allowing full transparency for the investors, and reduced management expenses. Fixed rate of 12% per annum*, on funds held for 18 months minimum.To be paid on a Monthly Basis once funds are invested. * Investors over $2.5M, are entitled to a share of the V-Fund net profits.

Project:

• The funds are used to "finance" at discounted value, pre-sale contracts from international distributors

for films to be produced. These contracts are secured with a deposit. Once the distributor recieves the film, the balance is paid unto the V.Fund.

• The success of the investment is not reliant on the success of the film nor its break even potential, as

the contract financed has a definite and final value when executed. The V.Fund holds the collateral (distribution rights) until paid in full by distributor.

• Investors funds are secured in an escrow account: the V.Fund. Instructions of the management of

the funds are agreed between the Investor, Fairlink Group and Fintage House, Escrow account holder at ABN Amro Bank.It manages the V.Fund (the escrow account).

• The Contracts are paid in full (net of deposit) once the film is delivered. The Completion Guarantor

(Lloyd’s of London) insures the V.Fund that the film will be delivered. In the event the film cannot be completed the V.Fund will be fully reimbursed by the Completion Guarantor.

Objectives:

Raising $10M in 2011/12, $30/50M within 3 years. With a minimum call of $250.000.

Opportunity:

✓ In the past years, the film industry has seen traditional financing institutions hurt by the financial crisis. This has lead to a reduction of traditional financiers in the Film Industry. Comerica Bank, City National, Barcaly's, Union Bank, etc.. are today focusing on larger loans and have left the under $5M lending space ($3M to $15M budgets). This open a window to aggressive and imaginative new players. ✓ Producers are open to any proposal to start a new project as equity is usually tied to other agreed

• financing. It gives the opportunity to lend against distribution rights and pre-sale contracts at

discounted value. ✓The success of Fairlink Group strategy is based on close relationships with a limited number of producers, thus allowing premium offers and well known sales companies to guarantee the value of the buyers.

Benefits:

Investing in real assets used as guarantees to secure the investor's funds. The investments are protected as all projects have an insurance completion bond, thus in the worst case (3,5% of projects), the investment is payed back.

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Risk Management:

• Funds are transfered to a escrow account (the V.Fund ) hold by a Third Trusted Party (Fintage House) with

management rules approved by investor. This guarantees the return of the funds to the investors as instructed.

• The international sale company's responsibility is to control the rating of the buyers. We will only accept

contracts to be sold to a Bona Fide distributor.

• Our team analyses with the sale company the potential distribution value of the rights in each area to be
• bought. The minimum value taken is 70% of the worst scenario to give the lowest risk.
• We invest our own funds in the V.Fund as a regular investor. Fairlink will co-invest with you !

Strategy:

Acquisition of Distribution Rights @ discounted value ✓ Financing existing pre-sale distribution contracts(collateral): Over 30% of the budget of a movie comes from financing pre-sale contracts. When the project starts, the producer will look at the finance rather than the value. Purchase contract at 70%

• f its value. A deposit of 15-20%

is transfered to the V.Fund. The V.Fund "buys" the 70% but in fact finance only 55-50%. Security: The V.Fund will have a security interest on the film until paid in full. ✓ Upon the execution of the contracts, funds are pledged to the producer. Only once the Completion Bond is underwritten, the V.Fund transfers the amount to the Guarantor’s Escrow (the production).

Target:

• English speaking films with talents and script offering worldwide audience thus easy sales of international

distribution rights.

• Budgets from $3M up to $15M.
• Films to be produced and delivered with 12/18 months: average investment period / project is 18 months.

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Project Financial Structure:

Acquisition of Pre-sale contracts of dist. rights Contract Value (net of sales costs) 100 (90) Acquisition value (70% of net of sales costs) 63 Deposit on contract by distributor 20 Net Pay Back 80 Actual investment 45 Expenses / (legal) fees 3,15 Interest 12%/year paid to investor on a 18 months period 8.1 Profit 15.75 ROI 35 %

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The V.Fund = Investors's Escrow account @ Fintage House

Investor 2 Investor 1 Investor 3 Fairlink

Production's Escrow account @ Fintage House

Film Producer Presales Contracts

Procinvest France

Tour de l’horloge 4 place Louis Armand 75603 PARIS CDX 12 e-mail: info@procinvest.com

Fairlink International

MSA, Route des Jeunes 41A 1227 Carouge, CH e-mail: info@fairlink-int.com

Our Partners in the Film Industry:

ARTINA Films (USA) :

« Arbitrage », « We Need to Talk About Kevin », « Twelve », « A Single Man », « Tell Tale », « Chapter 27 », etc..

Robert Salerno Producer of several Academy Award nominated pictures: « All The Pretty Horses », « 21 Grams », etc.. Naomi Despres Former head of Tribeca Films West (Robert Deniro’s company): « Meet the Fockers », « The Good Shepherd », etc.. Mirabelle Pictures USA & France This company has extensive experience in international co-production, as well as securing financing through tax credit operations. Co-producer of « Dark Tide », « Missing William », « Tell Tale », « The Countess », etc..