From: Faith Kates To: jeffrey E. <jeevacation®gmail.com> Subject: - Loan Investment Docs (CONFIDENTIAL & INTERNAL) Date: Mon, 06 Jun 2016 15:13:57 +0000 Attachments: CMG 258418,_LLC_OPERATING AGREEMENT.pdf; CMG 258418,_LLC_AIRCRAFT gECURITY AGREEMENT.pdf; CMG 258418,_LLC_PROMISSOTLY_NOTE.a; CMG_258418,_LLC_GUARANTY.pdf; Hawker 800XP_Appraisal[1].pdf What do you think of deals like this??? xoxo Jeff — attached are the loan investment docs for a 6-month pre-paid interest transaction that I participated in a few months ago. This is a good example to show Steve the deal docs to understand the paperwork for a typical deal. Attached is the LLC operating agreement that is signed by the investors (i.e. you, me, etc.), the aircraft security agreement signed by the borrower and CMG (run by Shawn Chemtov, the loan Processor), promissory note signed by the borrower, guaranty signed by the borrower, appraisal of the aircraft. Shawn runs a very successful mortgage business in Miami Beach that is on auto pilot and he has built a successful deal flow for premium hard equity lending transactions over the years. He added on aircraft deals a year ago and I have put a few million in to the deals. We all could probably do these deals on our own BUT we don't have the deal flow like Shawn does and it all centers around Miami Beach for these deals in one way or another. The business just flows to him because he gets deals done and everyone is happy. While he is not a prick, he is shrewd on getting the best terms in the deal for the investors (pre-paid, term, etc). Shawn makes his money on the closing fees for the loan (paid by the borrower) and on servicing the loan with the investors (paid by the borrower) — collecting the interest, paying it out to the investors and processing the accounting and 1099's. The investors make interest on the loan and potential upside in the event that a loan defaults from default interest and upside in the liquidation of the collater