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2

INDICATIVE SUMMARY

THE
ACCRUAL RESERVE
A
TURNKEY WEALTH ACCUMULATION REPOSITORY

Edition 2.0

PHOENIX EQUITY CONVERSIONS LLC
PORT WASHINGTON, NY 11050

The information contained herein is being disclosed to the recipient upon the express understanding that the
recipient agrees to keep the entire contents of this document confidential and that nothing contained herein will
be modified or reproduced in any manner whatsoever without prior written consent from Postscript Ventures, Inc.
©2013 POSTSCRIPT VENTURES, INC.
All Rights Reserved

clindicativesummaryar1034le5up21psv214-130411111027-phpapp01.docx

CONTENTS
THE ACCRUAL PROTOCOL .......................................................................................................................................1
INVESTMENT OVERVIEW ............................................................................................................................................1
ACCRUAL RESERVE ..............................................................................................................................................1
INVESTMENT POTENTIAL ............................................................................................................................................1
SCOPE OF ASSESSMENT ..........................................................................................................................................1
COMPOSITION OF THE SIMULATION .......................................................................................................................2
CONVERSION LOANS ...............................................................................................................................................5
COMPOSITION OF THE LOANS ....................................................................................................................................5
THE LOAN INDENTURE ...............................................................................................................................................6
HEALTH-RISK PROFILE ...............................................................................................................................................6
STATUTORY ASSURANCES ...........................................................................................................................................6
TRANSACTIONAL CLASSIFICATION .............................................................................................................................6
SAFEGUARD REGIMEN .............................................................................................................................................7
THE PROTECTED CASH-FLOW ENVIRONMENT ............................................................................................................7
COMPOSITION OF THE SAFEGUARDREGIMEN .........................................................................................................7
Fiduciary Designee ...........................................................................................................................................7
Asset Administrator .........................................................................................................................................7
PROGRAM OVERSIGHT ...............................................................................................................................................8

clindicativesummaryar1034le5up21psv214-130411111027-phpapp01.docx

Phoenix Equity Conversions LLC INDICATIVESUMMARY

THE ACCRUAL PROTOCOL

INVESTMENT OVERVIEW
This proprietary ACCRUAL PROTOCOL1 is a safeguarded financial initiative, which accumulates a
portfolio of highly lucrative, fully-collateralized Conversion Loans into an investor-owned, turnkey
ACCRUAL RESERVE. The entire undertaking is safeguarded through a professionally administered
operating regimen [see: “SAFEGUARD REGIMEN”]. Ownership of such ACCRUAL RESERVES is
exclusively available to investors seeking intensive monetary growth, with nominal investment
risk; who are willing and able to fund them at the requisite capitalization of 1.5 million dollars.

ACCRUAL RESERVE
Established as a wealth accumulation repository for the sole benefit of its vested owners, the
ACCRUAL RESERVE is professionally administered by independent AUTHORIZED ENTITIES, who
are contracted to accumulate and safeguard these dynamically expanding portfolios of self-
amortizing Conversion Loans.

INVESTMENT POTENTIAL
Based on the assumptions outlined below, a prototypical ACCRUAL RESERVE will accumulate its
most advantageous deferred asset: earned interest; compounding and accruing under officially
recorded Loan Indentures. [See: Figure 1].
FIGURE 1.

EARN ED IN TEREST
($ mil l io n s )

$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50
DURATIO N (year s )

1 -2 0

1 -1 5

1 -1 0

1 -5

SCOPE OF ASSESSMENT
The following is a quantitative analysis of certain factors regarding the ramp-up of a
simulated portfolio of Conversion Loans. The applied methodology measures performance
against appropriate industry indicators to illustrate the wealth accumulation potential of a
hypothetical ACCRUAL RESERVE.

COMPOSITION OF THE SIMULATION

1
The financial information contained in this document was taken from the Program Founder’s proprietary STRATEGIC
CAPITAL RESOURCE REPORT 2013AR1.0.3.3E4A2. As the entire ACCRUAL PROTOCOL is the Intellectual Property of
Postscript Ventures, Inc. (PSV), further information regarding its contents will only be povided by PSV under an
appropriately executed NONCIRCUMVENTION/NONDISCLOSURE AGREEMENT which will be provided upon request.
clindicativesummaryar1034le5up21psv214-130411111027-phpapp01.docx Page 1


Paid-in Capital: $1,500,000.00
Eligibility Criteria: The entry age of borrowers is 70 years or older with a weighted
life expectancy (LE) from 48 to 144 months [see: Figure 2].
Collateralization: The blend of collateralizing life insurance policies used in this
simulation is 50% universal-life and 50% convertible-term.
Average Face Value: $150,000.00
Death Benefit Contribution
Per LE Tranché: The weighted average DB Contributions in each of the nine LE
Tranchés ranges from 4% to 29% [see: Figure 3].
Weighted Effective
Annual Loan Advance: $12,407.00
Weighted Effective
Annual Senior Advance: $7,879.00
Effective Loan Interest
Rate: 6.72%
This configuration will develop a financial profile capable of ramping-up operations using a
constant benchmark of 55 Conversion Loans as its minimum universe. Over time and left
alone, this initial ramp-up can exponentially expand into a dynamic Portfolio of as much as
some 3,200 Conversion Loans – on average 160 annually – that will generate earned interest
of some 47 million dollars over a 20 year operating cycle. This is, in effect, a 665% return-
on-investment for the owners of an ACCRUAL RESERVE.
Consequently, Conversion Loans offer secure investment growth advantages that generate
continued prosperity for the owners of an ACCRUAL RESERVE, while providing seniors with
the needed funds to supplement their retirement income.
FIGURE 2. FIGURE 3.
D ISTRIB UTIO N O F L E TRAN C H ES DEATH B ENEFIT CO NTRIB UTIO N
PER LE TRANCHE

1 0 8 -Mo . L E 1 2 0 -Mo . L E
11% 11% 4 8 -Mo . LE
23%
9 6 -Mo . L E 1 3 2 -Mo . L E 6 0 -Mo . LE
11% 11% 19%
1 4 4 -Mo . LE
4%
1 3 2 -Mo . LE `
5%
8 4 -Mo . L E 1 4 4 -Mo . L E
11% 11% 1 2 0 -Mo . LE 7 2 -Mo . LE
6% 15%
7 2 -Mo . L E 4 8 -Mo . L E 1 0 8 -Mo . LE
11% 6 0 -Mo . L E 11% 7% 8 4 -Mo . LE
9 6 -Mo . LE
11% 9% 12%

The deferred earned interest of this wealth accumulation initiative consists of these
fundamental components [see: “Composition of the Loans”]: (i) the monthly interest
obligations paid by the senior borrowers to an ACCRUAL RESERVE for the remainder of their
lives; and, (ii) the entire deferred interest obligation, under the Conversion Indentures, paid to
the ACCRUAL RESERVE by the insurance carriers directly from the guaranteed cash proceeds of
a borrower’s pledged Settlement Benefits. [See: Figure 4]




FIGURE 4.

AGGREGATE IN TEREST REC EIVAB L E
($ mil l io n s )
$50

$45

$40
AC C RUED EARN ED IN TEREST

EARN ED IN TEREST
MO N TH L Y EARN ED IN TEREST $35

$30

$25

$20

$15

$10

$5

$0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
YEARS

Fully-collateralized Conversion Loans are the income engine that drives the dynamic growth of a
registered ACCRUAL RESERVE. Independent health underwriters, and proven actuarial
techniques, will be implemented by a RESERVE’S Authorized Entities to scientifically project
and spread pooled mortality probabilities that will create an optimal earnings horizon. And
this horizon will be maintained by using all accessible working capital to constantly leverage
a RESERVE’s initial pool of Conversion Loans; systematically investing accrued receivables in
additional Conversion Loan transactions. This procedure assures the consistent funding necessary
for new Conversion Loan acquisition, and drives a Reserve’s capital base to increase
exponentially; achieving impressive yields.



The ACCRUAL PROTOCOL engenders a protected financial profile by ramping-up2 operations with
analytically constrained collateral coverage [see: Figure 5].

FIGURE 5.
COLlATERAL COVERAGE
($ millions)
$8
EXCESS COLLATERAL
OUTSTANDING LOANS

$6

`
$4

$2

$0
1 2 3 4 5
YEAR

2
The ramp-up period is defined as the period required to originate the initial tranche of Conversion Loans; which is
expected to take approximately 3 months.


CONVERSION LOANS

COMPOSITION OF THE LOANS
Conversion Loans are meticulously formulated so that they are entirely safeguarded with the
guaranteed Settlement Benefits which are pledged as collateral by senior borrowers. Each
Settlement is the future death benefit payment of a life insurance asset that is irrevocably
conveyed to an ACCRUAL RESERVE. This safeguarding assures re-payment of a borrower’s entire
debt obligation due under an officially recorded funding arrangement [see: “Loan Indenture”].
Moreover, every Settlement Benefit is underwritten with an irrevocable statutory guarantee [see:
“Statutory Assurances”].
These specialized Loans are structured to generate sustainable earnings for an ACCRUAL
RESERVE, through the analytically responsive funding of lifetime Loan Advances. Senior borrowers
with impaired life expectancies, due primarily to advanced age, will assign their interest in,
and right to receive death benefits from, their insurance carriers. In return for these lifetime Loan
Advances, a RESERVE earns its previously mentioned return-on-investment through this funding
mechanism, and the realization of its registered claim on a life asset’s collateralizing Settlement
Benefit.
Every Conversion Loan is fully-collateralized with the irrevocable assignment and conveyance
of an acceptable life insurance asset: one with sufficient death benefit coverage to pay a
borrower’s entire debt obligations due under a comprehensive, officially recorded Loan
Indenture. Part of the ACCRUAL RESERVE’s aggregate Loan Advance protocol is to never let
Loan accumulation exceed 75% of a life asset’s Face Value. In this way, each Conversion Loan
will generate lucrative “absolute returns” during a borrower’s actuarially-established live
expectancy.

7.
Debt
Obligation
payments
AUTHORIZED
FIDUCIARY DESIGNEE
6.
Death
benefit
payments
INVESTOR OWNED
ACCRUAL INSURANCE
RESERVE 4. 8.
2. 5. CARRIER
Loan Remaining
Convey Interest
Advances Payments Settlement
Policies
1. payments
Pledge
Settlement
Benefits

SENIOR ANNUITANT'S
ANNUITANT BENEFICIARIES

3.
Loan
Indentures

This wealth accumulation initiative is run by transparent ACCRUAL PROTOCOLS, which
transform the Face Value of a life asset into leveraged liquidity that is capable of
engendering sustainable yields. These yields effectively underwrite by market-responsive
funding through which eligible seniors obtain the monthly cash advances spoken of earlier.
The net effect is that the PROTOCOLS develop and facilitate that ever-expanding ACCRUAL
RESERVE so necessary to meet future liabilities and successfully underwrite investment-
grade Conversion Loans. In addition, as a fail-safe proposition, the Loans remain collateralized
with irrevocably assigned assets (life policies, deferred annuities, etc.), which themselves
are entirely underwritten with those government guarantees allude to before [see:
“Statutory Assurances”].


CONVERSION LOANS
THE LOAN INDENTURE
The Loan Indenture is the financial obligation that legally provides seniors with monthly Loan
Advances for the remainder of their lives. Every Indenture is configured as a first-priority accruing
debt obligation of a senior borrower, consisting of fixed monthly Loan Advances, and serviced with
compounded monthly interest obligations paid to the ACCRUAL RESERVE, directly from the
guaranteed cash proceeds of a borrower’s pledged Settlement Benefit.

HEALTH-RISK PROFILE
Most insureds whose policies qualify for inclusion as surety in Conversion Loan transactions are
required to fit a general health-risk profile. They must be 70 years of age or older, and diagnosed
with impaired health conditions due to a downturn in wellness after originally being insured.
Accordingly, diligent screening and reliable medical evaluations coupled with conservative
actuarial analysis and appropriate fiscal assessments will effectively ensure that only acceptable
borrowers, with suitable insurance products identified as funding surety, qualify for Conversion
Loan transactions that are officially granted by the ACCRUAL RESERVE.

STATUTORY ASSURANCES
Insurance guaranty funds have existed in all states since 1991. Coverage is generally limited to a
maximum of $300,000 to $500,000 for individual claimants. The overriding effect is to make
death benefit payments immune from insurer default. Generally speaking, if a domestic insurer is
impaired or insolvent, each State Insurance Commissioner will guarantee, assume, or reinsure
each resident of their State; thereby assuring that the death benefits will be fully paid, and the
Conversion Loans will be fully-repaid.

TRANSACTIONAL CLASSIFICATION
Conversion Loans are similar in documentation to reverse mortgage transactions, except for the
monetary results generated by their respective pledged collateral. While both classifications are
mortality-based, collateralized funding transactions enhanced with government guarantees; that
is, Conversion Loans, are financially superior debt obligations, precisely because they have been
orchestrated to be repaid by a highly dependable and less volatile pledged asset class. Unlike real
estate liquidations, for example, which are susceptible to unpredictably adverse occurrences 3,
each accrued debt obligation under the Loan Indenture is actuarially formulated to never exceed
the pledged life asset’s Face Value; regardless of prevailing economic circumstances.
So Conversion Loans are able to provide financial assistance to eligible retirees by affording them
proportional and steady access to the guaranteed equity in their conveyable life insurance asset.
With over 1.5 trillion dollars of such life assets currently in the possession of our elderly
population, structured Conversion Loans furnish meaningful financial support to a population or
conspicuously, and ready to act as a market when shown a compelling product.
In short, participation in this market-responsive investment opportunity will engender substantial
monetary growth for the owners of a registered ACCRUAL RESERVE that grants structured
Conversion Loans to qualifying senior borrowers.

3
Real estate investments are consistently affected by arbitrary economic factors, e.g. an unstable
real estate market riddled with derivative schemes & volatile unavoidably property values,
escalating real estate taxes, property deterioration, endless maintenance and upkeep, etc.,
as well as the risks of overbuilding, zoning restrictions, environmental changes, and natural
disasters.


SAFEGUARD REGIMEN

THE PROTECTED CASH-FLOW ENVIRONMENT
The ACCRUAL PROTOCOL was designed as a safeguarded income growth & funding initiative. It
was constructed as a secure business environment in which to assemble an exponentially
expanding portfolio of Conversion Loans through an entirely analytical funding discipline. As stated
earlier, the PROTOCOL’S transparent SAFEGUARD REGIMEN provides comprehensive administration
under which independent AUTHORIZED ENTITIES manage the ACCRUAL RESERVE, and conserve
the revenues it earns through individually funded LOAN transactions. The Conversion Loans are
systematically accumulated under the statistical constraints of the PROTOCOL’S actuarially
responsive assessment procedures, which is completely administered by the aforementioned
AUTHORIZED ENTITIES for the benefit of vested owners of a registered ACCRUAL RESERVE.

COMPOSITION OF THE SAFEGUARD REGIMEN

1
Investors deposit
INVESTORS funds to capitalize
the ACCRUAL
RESERVE

FIDUCIARY
ASSET DESIGNEE
ADMINISTRATOR 2 3
Asset Administrator Fiduciary
originates and Designee
administers INVESTOR OWNED conducts all
CONVERSION LOANS ACCRUAL RESERVE monetary
for the ACCRUAL activities for the
RESERVE ACCRUAL
RESERVE

The SAFEGUARD REGIMEN will be contractually undertaken by the following AUTHORIZED ENTITY
GROUPS, who are compensated for their services solely with performance based fees:
Fiduciary Designee – To preserve the financial integrity of the registered ACCRUAL RESERVE, its
owners shall appoint an established financial entity as official Fiduciary Designee responsible for
handling all cash flow management for all Conversion Loans. This will be done on behave of the
vested owners of the ACCRUAL RESERVE, the senior borrowers, the seniors’ beneficiaries, and the
Asset Administrator.
Asset Administrator – Phoenix Equity Conversions LLLC, the Asset Administrator, is a professional
servicing entity, staffed with industry specialists who are responsible for originating and servicing
all aspects of Conversion Loans. On a case-by-case basis, Phoenix will gather and analyze
information regarding a borrower’s medical history, current medical condition, current estimated
life expectancy, and the prospective insurance asset which will be preserved by the Fiduciary



SAFEGUARD REGIMEN
Designee. Once approved, Phoenix will certify every borrower’s inclusion status with the Fiduciary
Designee and Post Script Ventures, Inc. (PSV), and then proceed to monitor and track every
included borrower until their demise. The compliance, monitoring, tracking and collection
functions will be supported by a seasoned team of personnel; with specialties in including
computer and data processing, and software architecture. Phoenix executives themselves possess
significant eldercare, insurance, sales & marketing, and financial origination, financial
development, a pool of structured Conversion Loans. support services.

PROGRAM OVERSIGHT.
Postscript Ventures, Inc. (PSV), The Program Founder will oversee the analysis of borrower
information collected by the Asset Administrator, and together with the requisite investment yield
of an ACCRUAL RESERVE’S owners, determine the future stream of acceptable lifetime Loan
Advances that a given insurance asset can support. Once underwriting standards, eligibility
criteria, and regulatory compliances are satisfied by the AUTHORIZED ENTITIES, PSV will review
the pending loan transactions to determine whether their financial obligations to the RESERVE will
be covered by the appropriate insurance asset. PSV will establish a valuation profile for each
prospective Conversion Loan, and furnish the Asset Administrator with a range of offers to be
extended to each approved senior borrower.
PSV is a financial services organization incorporated under the laws of the State of Delaware. It
specializes in establishing turnkey wealth accummulation initiatives; which contain innovative
capital resource strategies, augmented with extensive risk management oversight, embodying
effective asset custodial safeguards combined with qualitative fiduciary controls. With careers
spanning more than three decades in the capital formation marketplace, its staff of financial
strategists possess an array of proficiencies. Since 1976, they originated funding of nearly one
billion dollars for the following organizations: (i) ENERGY: AT&T, U.K. Atomic Energy, Atlantic
Richfield, Baker Oil, Cities Service, Dowell Schlumberger, Exxon, Pennzoil, Plough, Phillips
Petroleum, Shell Oil; (ii) TECHNOLOGY: Litton Industries, ITT Distributors, Xerox, Boeing, Bell
Telephone Laboratories, W. W. Grainger, General Motors, Otis Elevator, Duracell, British
Aerospace, Ingersoll-Rand, American Honda, Control Data, Bell Aerospace Textron, Hughes
Aircraft, Panasonic, Westinghouse, Western Electric; (iii) UTILITIES: Tampa Electric, New York
Telephone, Puget Sound Power & Light, Florida Power & Light, Central Telephone & Utilities,
General Telephone & Electronics, Michigan Bell Telephone, New England Power & Light, Kansas
Power & Light; (iv) CONSUMER PRODUCTS: Nestle, Kraft Foods, Coming, Kimberly-Clark, General
Foods, Winn Dixie Stores, Sears Roebuck, Johnson & Johnson, Bristol Myers, Seagram, British
American Tobacco, Kmart, Avon Cosmetics, Coca-Cola Bottling; (v) FINANCE: American Express,
Chemical Bank, Chase Manhattan Bank, Citizens & Southern National Bank, Citibank, E.F. Hutton,
European American Bank, London Stock Exchange, Merchants National Bank, Salomon Brothers,
Swiss Bank Corp., Shearson/Lehman, MasterCard, State Street Bank, Manufacturers & Traders
Trust; (vi) INSURANCE: Title Insurance & Trust, Travelers Insurance, Nationwide Mutual Insurance,
Farmers Group, Sentry Insurance, The Continental Group and (vii) MEDIA: New York Times, CBS,
Newsweek.


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