Fresh Start

1
Social Economy Symposium Social Finance
Panel May 1, 2008
Presented by Bill Young, President Social
Capital Partners
2
The Investment Structure
Tier 2 Investor
Tier 1 Investor
Tax Receipt (issued at time of donation)
Charitable Donation
Tier 1 Investment
Tier 1 Return (interest and principal)
Tides Canada Foundation PRI Fund
Tier 3 Investor (SCP/Bealight)
Tier 2 Investment
Fresh Start
Tier 2 Return (interest and principal to Tides
Foundation)
3
The Investment Structure

• We will raise over 2 million of Tier 1, 2 and 3
  capital . . .

• Coupon 5 per annum, payable annually
• Maturity Principal repaid at end of year 5, but
  may be delayed by up to 2 years
• Redemption Redeemable, in whole or in part, from
  end of year 3 without penalty

Tier 1 Capital (?1 mm)

• Coupon None. Qualifies as donation for which
  investors will receive a charitable tax receipt.
• In turn, Tides Canada is a Tier 2 debt investor
• Subordinate to Tier 1 debt
• Interest of 6 is cumulative, payable upon
  profitability
• No principal paid until Tier 1 debt is retired in
  full

Tier 2 Capital (?650 k)

• SCP/Bealight is a Tier 3 debt investor
• Debt ranks pari passu with Tier 2
• Interest of 4 is non-cumulative, payable upon
  profitability
• Other terms same as Tier 2

Tier 3 Capital (500 k)