FINANCIAL INSTRUMENTS


Long Term Note Monetization (LTN) 0020

Instrument & Service Description:

Complete Non Recourse Monetization of (Long Term Notes, Letra do Tesouro Nacional / National Treasury Notes of Brazil) Series M, R or Z that are on Euroclear.

This LTN settlement process is fast, transparent and uses the Free Euroclear Delivery process so Clients DO NOT incure any SWIFTING FEES or Delays. Euroclear is a well established European financial transaction settlement network that was founded in 1968 by JP Morgan and continues to operate successfully employing over 3500 people today.

This Monetization service is ideal for clients looking to Discount, Monetize, or create an immediate non recourse loan against a Brazilian LTN Bond or Note that they own because this monetization method is the cleanest, fastest and cheapest way to do it!

The Monetization process allows the client to retain ownership of their LTN while at the same time creating a Non Recourse Loan against the LTN each year.

Monetization LTV:

• 25% to 35% Non Recourse

Estimated Completion Time:

• 7 to 14 Days after all documents are signed and verified or 3 Days After Instrument Euroclear Delivery.

Closing Process:

1. After execution of the monetization contract by both parties the Client will instruct his bank to assign the LTN using FREE Euroclear Delivery to the bank coordinates provided by the Monetizer.

2. The Clients Banker shall immediately email a certified Euroclear execution receipt of the LTN delivery to the Monetizer.

3. Upon receipt and confirmation of the Euroclear assignment and delivery, the Monetizer will within maximum three (3) banking days grant a Non Recourse Loan for the LTV as agreed from its nominated bank to the Client.

4. The Monetizer agrees to return the LTN unencumbered fifteen (15) calendar days before the 1 year anniversary of the signed contract between the parties.

Example:

The LTN is listed on Euroclear with a Value of Maturity: $80,000,000,000 Real (Brazils Currency)

The LTN is Monetized Non Recourse at 35% LTV being: $28,000,000,000 Real (Brazils Currency)

The Client is paid the USD equivalent of $28,000,000,000 Real (Brazils Currency)