Investors

We have reached the 60% of investors threshold required for Master Funding Agreement implementation. We have sent investors a report on the election results. A copy of the generic report is available here.

If you are one of the over 300 investors who has returned a signed joinder agreement to us, we thank you. If you have not returned a joinder agreement yet, we will continue to collect joinder agreements for Option 1 after Option 1 implementation. However, the deadline for submitting an Option 2 self-financing election is July 31, 2008.

Based upon the information we have obtained, we believe you have the following three options:

Option 1
Sign and return to us the Funder’s joinder agreement. The joinder agreement creates a new “waterfall distribution” of matured VESPERS policy proceeds in return for the Funder’s continuing payment of premiums and related expenses with respect to the polices. Option 1 will be implemented only if 60% or more of all investors reply to our letter and elect this option by returning an executed joinder agreement.

Option 2
Sign and return to us the Funder’s joinder agreement and elect to self-finance your proportionate share of the premiums and related expenses on your policy(ies). This also creates a new “waterfall distribution” of matured VESPERS policy proceeds that reflects both the Funder’s prior payment of premiums and related expenses with respect to the policies and your individual payments of premiums. Because there are multiple investors in every policy, Option 2 is only feasible if Option 1 is approved and the investors whose investments represent at least 40% of the face value of a policy elect Option 2.

Elect Not to Vote in Favor of Options 1 or 2
Elect not to participate in Option 1 or Option 2 or do nothing in response to our letter. If 40% of more of your fellow investors make such a negative election or do nothing, the Funder will withdraw from its voluntary arrangement and the policy(ies) will become at immediate risk of lapse for non-payment of premium on July 31, 2008. This means that you have forfeited all the money you have invested in the VESPERS program, but you will have no further obligation to continue to add money to maintain the policy(ies).

We are asking you to select one option which will apply to all of the life insurance policies that VESPERS acquired for you.

We are not taking a position or providing you with any advice or recommendation on which of these options you should select. Under the operative documents, we neither have, nor have we ever had, any responsibility for funding the premium payments for your policy(ies). The Funder similarly has no such obligation, but is in a position to provide the funding as described in Option 1. You should note that neither VESPERS nor any of its affiliates will receive any proceeds from a matured policy under the Funder’s agreement. You should carefully review our letter and its enclosures in consultation with your own attorney and advisors with specific reference to your own situation, including the application of your own country, state and local laws.

If you or your advisors have any questions, please write to us at PO. Box 33253, Washington, DC, 20033-0253 or email us at questions@privatesectorfix.info.