CAIC(Cash Accumulation Insurance Contracts)

Available through

Geneva Media Holdings, LLC

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 are removed at “break even”

This provides loan collateral and liquidity

CAIC also insures a cast and crew’s

families (from disability and death)

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 $75,000,000Negative Cost Insurance Cost

CAIC

$300M FACE

AMOUNTS

$75MCASH

VALUES

$75,000,000Negative Cost

LP spend: $75,000,000Negative Cost

Studio spend:

$150M Slate

25% Profits 75% 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

T H E C A S E S T U D Y

100% SAFETYregardless ofbox office or

ancillary sales!

T H E C A S E S T U D Y

The Crew♀♂ ♀♂ ♀♂ ♀♂♀♂ ♀♂ ♀♂ ♀♂

$

TAX FREE

CASHTO FAMILY

The Funding Entity:Pension Funds, V.C.s Hedge Funds, Banks,

Private Equity, but NOT a film studio!

Single Picture LLC

Single Picture LLC

Single Picture LLC

Single Picture LLC

The Funder$ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $

$

CollateralProtection

Media Mitigation Holdings, LLP

Who owns the CAIC --so it qualifies as deductible?

The Funder$ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $

$

TAX NEUTRAL

CASH TO FUNDER

T H E C A S E S T U D Y

The Crew♀♂ ♀♂ ♀♂ ♀♂♀♂ ♀♂ ♀♂ ♀♂

The Crew♀♂ ♀♂ ♀♂ ♀♂♀♂ ♀♂ ♀♂ ♀♂

The Funder$ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $

Who owns the CAIC --so it qualifies for perfection?

T H E C A S E S T U D Y

Media Mitigation Holdings, LLP

CAIC

98% L.Partners

Crew exchanges a partialCollateral Assignment

of the Cash Accumulationsfor a L.Partners’ interest

Policyowner

Major Bank

1% G.P. Owner

Film LP

Bank / Funder

G.P.s control theCollateral Assignment

and all Cash AccumulationA+ Insurer

$

$

1% G.P. Owner

1+1% G.P.

A+ Insurer

Major Bank

C a s t and Crew

Labor & Serv Costs

Families

Slate Fund

Studio / Network

$

$ 35%- 65% Tax Credits!

$CAIC$$$$$$$$$$$$$$

$

$SAFETY!

T H E T O O L

50%

50%

Insurance Premium Costs

Film LP

Hedge Fund

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 T O O L

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 T O O L

T H E T O O L

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)

50 years of proven COLI, BOLI and NQDC contracts

IRS tax code 181 and 199 film tax deductions

US and Canadian theatrical film tax credits

T H E T O O L

T H E T O O L

Year

States with Film Incentive Program

Incentive Amounts

Offered

1999 and earlier

4 $2 million

2000 4 $3 million

2001 4 $1 million

2002 5 $1 million

2003 5 $2 million

2004 9$68

million

2005 15$129

million

2006 24$369

million

2007 33$489

million

2008 35$807

million

2009 40$1.247 billion

2010 40$1.396 billion

2011 37$1.299 billion

Source: Tax Foundation.org, Movie Production Incentives

US

T H E T O O L

Year

States with Film Incentive Program

Incentive Amounts

Offered

1999 and earlier

4 $2 million

2000 4 $3 million

2001 4 $1 million

2002 5 $1 million

2003 5 $2 million

2004 9$68

million

2005 15$129

million

2006 24$369

million

2007 33$489

million

2008 35$807

million

2009 40$1.247 billion

2010 40$1.396 billion

2011 37$1.299 billion

Source: Tax Foundation.org, Movie Production Incentives

U.S. FILM TAX

INCENTIVE AMOUNTSARE STILLGROWING: $2B+ IN

2013.

US

T H E T O O L

Source: Weiss Research, American and Canadian L&H Company ratings, May 2012

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• 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) 666-8769

• 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