Sandringham Yacht Club FMP 2

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Sandringham Yacht ClubFMP 2

• Non-Bank Financing
• Options for SYC Members

Tuesday September 6th 2005
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FMP2 Funding Status September 2005

• The club has expressions of interest _at_ 2Million
  to date
• We have to raise a minimum additional 1Million
  from members to enable the project to proceed to
  the next stage
• Tonight we will launch a series of alternative
  options in regard to non bank financing and we
  anticipate that through these options we can
  raise an additional 4Million
• The benefit of member funding of 6Million to the
  club over the next 10 years is significant

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• Disclaimer
• As with all financial products we are required
  to provide the following disclaimer
•  
• While SYC Officers have taken all due care to
  ensure that the information contained in this
  presentation ("Information") is true and correct
  and is not misleading or deceptive, the Club
  makes no representations or warranties, express
  or implied, as to the accuracy, reliability or
  completeness of the Information.
•  
• The Information is presented for general
  informational purposes only and is not intended
  to be relied upon for the purpose of making an
  investment decision.
•  

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Debenture Proposals

• A series of 4 Debentures are proposed with the
  following characteristics
• Tailored to provide particular benefits for
  members
• Provide returns on the Investment of Members
  comparable to commercial rates or be transparent
  in any member subsidy (donation) inherent in the
  Debenture
• Provide early redemption in case of hardship etc.
• Run for a term (10years) to match the funding
  requirements (with option to extend)
• Formally Documented
• Provide recognition to the Members participating
• Positively assist in meeting the funding needs of
  FMP2

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Tailored to provide Benefits

• The 4 Debenture types enable members to select
  the series that most appeals to them (and this
  may be more than one)
• Series 1 are Income Debentures.
• Series 2 are Membership Debentures ( tied to
  Membership)
• Series 3 are Supporters Debentures ( tied to a
  locker)
• Series 4 are Supporters Debentures ( tied to a
  hard stand)
• Each is designed to provide a unique benefit in
  return for assistance in funding
• Other than Series 1, each incorporate an element
  of donation to the Club by providing a yield
  around 2 - 4 (vs. a commercial yield of 4
  -5)

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Key Attractions

• Members invest in the Club and get their
  investment back in 10years
• A classic win-win - Members get real benefits
  and the Club can finance the new clubhouse and
  car park
• Members receive the benefits rather than interest
  being paid to a bank (keep it in the family)
• Early repayment is available in case of hardship
  etc.
• Further benefits planned through a Supporters
  Club
• Members can buy a stake in the future of the Club

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Series 1 Income Debentures

• Series1 are Income Debentures
• Interest rate of 6 pa Interest compounds
  annually (so you receive interest on interest)
• Minimum value of 5000
• Interest deferred to Redemption (10years)
• Expected to be suitable for Self Managed Super
  Funds (ATO private ruling under way)
• Provide an after tax yield of 5.05 (to SMSFs
  at 15 tax)
• Early redemption available in case of death,
  hardship etc.
• Formal documentation will be produced.
• For example a 25,000 investment would yield
  44,771 on redemption.

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Series 2 Membership Debentures

• Designed for Senior Members to exchange a
  Debenture (a loan) of 50,000 for the waiver of
  Membership fees and Levies for 10 years
• Protects against future fee/levy increases
• Provides an effective yield of 2.2 based on
  escalation in fees and levies of 3 pa.
• Incorporates a donation to the Club (difference
  between 5.0 and 2.2)
• Very effective funding for FMP2
• You save paying 10,627 over the 10 years (at 3
  escalation)

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Series 3 Supporters Debentures
(tied to a locker)

• Loan 50,000 for 10 year allocation of a locker
• Designed for Senior Members who seek a locker and
  are prepared to contribute to secure it.
• These are likely to be very appealing (there
  aren't many lockers!)
• Protects against future rental increases
• Provides an effective yield of 3.64 based on a
  rental value of 1,500 pa escalating at 3 pa.
• Incorporates a donation to the Club ( via the low
  yield)
• Very effective funding for FMP2

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Series 4 Supporters Debentures (tied to a
Hard Stand)

• Loan 70,000 for 10 years
• designed for Senior Members who would be prepared
  to pre-pay for their hard stand spot.
• These are a specialist Series- not for most
  Members!
• Provides an effective yield of 3.5 based on a
  rental value of 2,000 pa escalating at 3 pa.
• Incorporates a donation to the Club ( via the low
  yield)
• Very effective funding for FMP2

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Donations

• A facility is available to enable Members to
  make a donation to assist in developing training
  facilities in the new clubhouse
• This will be structured to ensure they are
  available via the Sports Foundation to secure
  tax-deductibility
• Confidentiality will be ensured if this is
  desired
• Donations over 5000 will receive all Supporters
  Recognition benefits

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Process

• Commitment from Members to raise a minimum
  additional 1Million
• Lodgment of Information Statement with ASIC (to
  gain final approval from Members October 05)
• Call Special General Meeting (anticipated
  November 05)
• Formal documentation to be issued call on
  funds (November 05)
• Continued Member fundraising for the additional
  3Million as per objective
• Continue to pursue Government funding

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• Non-Bank Financing
• Summary

TARGET PARTICPATION

NO MEMBERS VALUE
CAPITAL VALUE SERIES 1 (INCOME /
DONATIONS) 50 25,000 1,250,000 SERIES 2
(MEMBERSHIP) 51 50,000 2,550,000 SERIES 3
(LOCKERS) 30 50,000 1,500,000 SERIES 4
(HARDSTAND) 10 70,000 700,000 6,000
,000
(CASH Interest saved
_at_ 6.65 is 414,000)
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Summary

• We have to raise a minimum of an additional
  1Million with an ultimate goal of an additional
  4Million
• Including the 2M raised to date the end goal
  would be 6Million
• To maintain the program and go to a Special
  General Meeting in November we need to raise the
  minimum of an additional 1Million within the
  next 4 weeks
• We need Members help. We can go no further
  without this help.
• We have come a long way to get to here and we
  need assistance and promptly
• At 6 it is an attractive investment option

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• It is time for the members
• of Sandringham Yacht Club
• to take charge of our destiny
• and deliver the future vision of FM2

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Sandringham Yacht ClubFMP 2

• Non-Bank Financing
• Options for SYC Members

Tuesday September 6th 2005