0800z Royalty Finance Invitation

ROYALTYLENDING:MAXIMUMRETURN400%

Invitation to

participate

0800z ROYALTY LENDING 1

0800z IS AN AMBITIOUS NEWBUSINESS SCHEDULED TOLAUNCH IN THE UK IN 2016.TO SECURE WORKING CAPITAL,THE COMPANY IS RAISINGFUNDS THROUGH ROYALTYLENDING.

THIS DOCUMENT HAS TWOPARTS:1. THE BUSINESS OUTLINE2. INVITATION TO THE ROYALTY

LENDING SCHEME

Our number is our name.0800z

oh-eight-hundred-zed

PART 1:BUSINESSOUTLINE

IN GOOD FAITHThe directors of 0800z Limited have prepared theinformation in the business outline in good faith.However, the company and all its respective officers,agents and employees make no representation orwarranty (express or implied) nor shall they have anyresponsibility or liability in respect of: statements andinformation given in the outline, or subsequently madeavailable to the recipient, or for any omissions. Recipientsof the business outline must rely only on thoserepresentations, warranties and undertakings containedin the actual loan agreement with 0800z Limited.Recipients of the business outline are recommended toseek their own financial advice and to conduct their ownanalysis and investigation of the company and contents ofthe business outline. 0800z LIMITED Registered inEngland: 6476346


100 MILLIONREASONS FOR US

100 MILLIONASSISTANCETYPE POLICIESPURCHASED ANNUALLY

Roadside Rescue 29mAnnual Travel 20mMobile Phone 7.2mLegal Expenses 4.8m

Source: Mintel

Home Emergency 14mBoiler Cover 10mExtended Warranty 15m

Source: Industry

For everyday emergencies like

Roadside Rescue, Boiler Breakdown,

Lost Mobile, Missed Flights etc,

people currently buy separate

assistance policies.

Then, when someone's day goes

wrong, they end up looking for

policy documents, phone

numbers and the right people.


123-5-789makes a Z-shape on a key-pad

UNIQUENEWSERVICE

For every kind of

emergency assistance:

One policy.

One network.

One number.


TOTALASSISTANCEWhatever the problem, 0800z will have people

ready to save the day. Members won't have to pay

for repairs, parts or call-out-fees. 0800z will take

care of everything.

Roadside rescue | Domestic response | Live IT help | Assistance abroad | Legal help | Phone replacement | And a whole lot more


NOW ISTHE TIMEWe’ve had the credit crunch, housing crisis, food

scares, job losses, terrorism and weird weather.

Uncertainty is a background stress. Society has a

sense that anything could happen to anybody.

In the early 2000s is was: Live for Today.Now it’s: Worry About Tomorrow.

CRITICAL MASS IS HERE36m holidays abroad

45m mobile phone owners

49m bank current account holders

29m car owners

7m homeowners,

9m pensioners with private income

5m SME’s

1.5m Landlords

NEWORKS EXISTThe products and services we are offering are all proven and already

exist. There’s no need to re-invent anything – just re-package and deliver

in a better way.

PROVEN FIRST CALLThe Z-shape has already been proven to aid brand recall. The device

allows us to be contacted at the time of need. No need for Google or a

phone number search. The consumer can access us instantly.

OFCOM 2015 RULINGFrom June 2015 all mobile calls to 0800 numbers will be free. All mobile

service providers will have to comply. There will be news stories and

Ofcom publicity about 0800 numbers that we will take advantage of.

UNIQUEThere is no similar specialist brand proposition currently marketed direct

to consumer.

NOWHERE TO TURNPeople are living longer and cities are growing bigger. There's a general

breakdown of community and informal support networks. People feel

more isolated and uncertain about where to turn in times of crisis.

DISTRUST OF THE INSTITUTIONSUtility companies and banks provide some insured help services but there

is increasing distrust of these institutions. Mis-selling, lack of transparency,

year-on-year complaints increases and lack of choice are making people

resent the banks, insurance companies and energy suppliers they feel

forced to deal with.


NETWORKIS READY

ASSISTANCEPROVIDERSThe insurance productsand the assistancenetworks already exist.We link them all togetherunder strict service-levelagreements.

THE HUBOur hub will be run by a world-leader in process systems.

HUMANSAll adults. All in the UK.All helpful.

TECHNOLOGYAll robust, tried andtrusted systems.

APPROVALMember ratings keepproviders on their toes.

SMART TELECOMSAn innovative system,already tested and in place.Our call-centre and service-hub providers are ready.

All the assistance-providers are in place.

Together, they will create one really big,

really helpful network.


VIDEOEVIDENCE

PILOT TEST RESULTIndustry standard cost per enquiry: £7Pilot test cost per enquiry: £1.80

One of the keys to the success of 0800z will

be our memorable brand-device. To prove

its power, we ran an advertising pilot test.

The TV commercial we ran was for general

insurance. That way we measured

memorability of the brand, not the

proposition or offer.

Watch the TV advert once and you’ll see

why this idea is so effective.

Search YouTube: 0800z

national cost4,257 impactsto get each call.£14 per call.

test region cost 561 impactsto get each call.£1.80 per call.


TEAMThe principals’ combined experience and

expertise encompass critical aspects of the

business. A core of established suppliers

will help to bring the network alive.

XL TELECOM LIMITEDXL Telecom uses smart technologyto provide innovative solutions andservices of outstanding quality,enabling it to be the market leaderin high quality telecoms.

Our innovation will enable 0800z toapproach consumer interactions in away that has not been done before.Together with 0800z, we believe that wewill develop systems and processes thatwill become industry benchmarks.

NICHOLAS MUTTONCHIEF OPERATING OFFICER

CGIProviding end-to-end IT andbusiness process services. With68,000 professionals in 40 countriesthey have delivered award-winningsystems in public and commercialsectors including financial services,telecoms and media.

UK consumer financial services areabout to undergo a revolution driven bytechnology. In workshops with the 0800zteam it became evident that CGI has thecapability to play a pivotal role in thesuccess of a new force in UK consumerinsurance.

NEIL SADLERVICE PRESIDENT HEAD OF INSURANCE

STRATEGICINSURANCE SERVICESInsurance solutions for individualsand companies worldwide. Based inthe heart of the City of London,Strategic is dynamic, innovative andvery experienced.

The 0800z team are consumer focussed.They have a fine understanding of whatthe market really wants. We look forwardto helping them deliver neat,no-nonsense solutions.

TIM SNOWBALLCHAIRMAN AND FOUNDER

MARTINROWANPreviously foundedHome Assistance UKLimited, a successfuljoint venture withBritish Gas. Also aUK expert on FCAregulation.

JANELOWTHERCreated the UK’s firstonline conciergeservice. Her career incustomer-care teamleadership includescreating a new,customer-focussedculture for BarclaysMercantile.

MICHAELKAPLANFounder of 0800z.Twenty five years inbrand advertising,creating propertiesfor brands such asPhilips, Volkswagen,Pepsico, andBarclaycard.


UNIQUE0800z is difficult to imitate because any

credible total-assistance service needs

a super-memorable number – and

that’s a difficult thing to invent.

No other 0800 number can be

expressed as a simple shape on a

keypad. This is due to the way Ofcom

has issued numbers.

You will alwaysremember the Z-shape.Zat is how you knowit is great.

WHY THE ZEBRA?If you don’t know why the Zebra is here, you haven’t watchedthe advert from the pilot test. You really should see it.


WE’RECONFIDENTEven if we only penetrate 0.2% of the

assistance market we will achieve

commercial success. And there is no other

total-assistance service like ours in the UK.

ASSISTANCE TYPE POLICIESBOUGHT ANNUALLYIN THE UK

100,000,000

0800z TARGET200,000


DONATINGWe are here to help. And having a

memorable phone number is a great help

to anyone running a donation drive.

We are setting up a automated phone

donation system. It will be offered to all UK

charities and will be operated by us on a

not-for-profit basis.

Our application is with the

Charity Commission

IT’S 0800z.IT GET’S INSIDEYOUR HEAD.Even more whenyou use it more.


I QUICKLY SAID: I’M IN When I first sat down with Michael and Jane to discuss 0800z, I

felt excited. I could see that, given my experience, I could make

their good idea even better.

For 20 years I have been in the Home Emergency sector. In fact,

I was involved in developing much of the UK sector that exists

today. I have worked with almost every major insurer to help

them create Home Emergency offerings, make them more

efficient, more competitive and more profitable. More than once,

I found myself employed by someone who wanted to compete

with a product I created for someone else.

I also created several Assistance Services from scratch - to be

targeted at consumers under the names of existing brands. A

notable example is the Home Assistance service for British Gas

which is now a significant part of their customer proposition.

The years of working in just one sector have made me a true

specialist. Now, the opportunity to create a new brand based on

something I know well, obviously fills me with confidence. The

key 0800z requirements are already like part of my everyday

routine – creating repairer networks, managing supplier

performance and ensuring regulatory standards are adhered to.

Today, in the UK, almost every driver has breakdown cover,

homeowners increasingly hold policies for emergencies like boiler

breakdown and burst pipes, gadget insurance is growing fast and

travel insurance is viewed almost as a necessity.

We have a mature market. It's ready for innovation. A new entrant

can make an impact if their offer is compelling. We have given a

great deal attention to ensuring that the 0800z service will be

market-leading in terms of the cover, price and the service our

Members will experience. 0800z is the innovator that will shake

the assistance market and become a leading player.

There are more than one hundred million of such policies

arranged in the UK every year – a very large market. Our initial

business target is to attract 200,000 members per year. Given

what I know of the market I am sure we will quickly exceed that

modest target.

PART 2:INVITATIONTO THEROYALTYLENDINGSCHEMETo secure working capital, 0800z is raising fundsthrough its own Royalty Lending Scheme. There islimited availabilty, so if you would like to participate,don’t delay.

REGULATORY POSITIONThe regulatory status of the 0800z Royalty Lending Schemeand of the offering of the Scheme to lenders: Through itsown UK website, 0800z Limited (as principal) is solicitingloans from lenders. Loans to 0800z are exempt fromregulation by the Financial Conduct Authority (FCA) underthe provisions of Article 34 of the Financial Services andMarkets Act 2000 (Regulated Activities) Order 2001 (RAO)which provides that corporate bodies do not requireregulation to arrange their own finance. Loans entered intothrough the 0800z website are principal-to-principalagreements which are not regulated under the RAO.Anyone making a loan directly to 0800z Limited is notprotected by the Financial Services Compensation Scheme(FSCS), and is not entitled to redress from the FinancialOmbudsman. 0800z LIMTED Registered in England:6476346


0800z ROYALTYLENDING BASICS

ROYALTIES PAID ANNUALLYWhen a consumer has been an 0800z member fortwelve months a Royalty is due. In our launchyear, more people will join towards the end of theyear. So the first accumulated Royalties will bepaid at the end of Year-2. All following Royaltieswill be paid annually.

FIVE YEAR FORECASTThis is not a fixed-term loan. The loan is repaidwhen 0800z sells its one millionth consumermembership. We forecast that our millionthmember will join in 2020 - within five years of ourlaunch, which is scheduled for Spring 2016.

MONITORINGRoyalty Slice holders will receive a pre-launch packand regular updates on performance andmembership numbers.

LIMITED SLICESThere are only 1,500 Slices, which must besubscribed for by February 28th 2016.

A lender makes a loan to 0800z.

Instead of earning interest, the lender earns Royalties.

Royalties are earned every time 0800z sells a new

consumer membership.

LOAN SIZELoans are in units of £1,000 - called Royalty Slices.

You may subscribe for as many Royalty Slices as you like.

There are only 1,500 Slices available.

MAXIMUM RETURN 400%Every time 0800z sells a new consumer membership

a Royalty Slice earns 0.5p – until 0800z admits its one

millionth member.

So a Slice earns a maximum of 0.5p multiplied by

One Million - £5,000 - the same as the original

£1,000 loan + £4,000.


WHY WELIKE ROYALTIES

For the Company, this Royalty Loan is moreexpensive than a fixed-interest loan would be.

However, with the Royalty Loan the Company’soutgoings are in line with sales. The cost ofRoyalty Payments are accounted for in the priceof membership, so cash-flow is easier tomanage.

During the early years, the shareholders acceptless profit while the Royalty Slice Holders reapthe rewards. After lenders have been repaid andearned a 400% return, the company is free ofthe debt.

Also, because the scheme is from a genuinecommercial business, raising finance throughborrowing, it is not subject to UK financialregulation and is accessible to a wide range oflenders.


0800zROYALTYLENDINGRISKS

UNSECURED LOANIn legal terms, these Royalty Slices are unsecured loans to 0800z.

SUBORDINATED LOANIn order to protect consumers (our members) the FCA requires that all suchloans must be subordinated. In other words, in the event of our insolvency yourposition as a creditor would be below that of an 0800z member or customer.

ILLIQUID Royalty Slices are not listed or traded on any stock market or exchange. Thereis no secondary market for Royalty Slices.

NON-TRANSFERRABLERoyalty Slices are not transferable, other than at the discretion of the Boardof 0800z.

NO OTHER FORM OF RETURNOther than the Royalties on new membership, there is no obligation on 0800zto provide any other form of return on Royalty Slices.

REPAYMENT OF LOAN CAPITAL DEFERRED0800z is not obliged to repay capital loaned under the Scheme until the dateof admission of the one millionth consumer member.

UNDERPERFORMANCEThe maximum return is a refund of the original investment + 400%. It mighttake longer than the 5 years forecasted or we may even never reach 1mmembers. For example, if 0800z underperformed by 60% you would onlydouble your money.

NO ACCESS TO THE FINANCIAL SERVICES COMPENSATION SCHEMEIf 0800z ceases trading you have no right to make a claim to the FSCS.

EFFECT OF EXTERNAL ECONOMIC FACTORSYou should consider the effect on your loan of inflation and of interest rates.Both are currently at historic lows, but this may not continue.

Before making a decision, think about whether

0800z Royalty Lending is right for you. Don't

lend more than you can afford and be conscious

that there is a risk that you could lose your entire

loan. We also draw your attention to these other

risks. They are not necessarily all the risks

associated with lending this way and are not

listed in any particular order.


MONIES HELD IN ESCROWAll transfers of funds by Lenders for the purpose of extending loans (RoyaltySlices) will be held in Escrow by the regulated payment processor until 1,500Royalty Slices have been subscribed for. If 1,500 Slices are not taken up by 28thFebruary 2016 all funds will be returned to lenders, less a modest processorfee for reasonable administration.

REGULATED PAYMENT PROCESSORAll payments will be processed by and all funds will be held in Escrow by GCENwho are regulated by the FCA as an authorised payment institution.

REGULATION BY THE FCAAs a provider of insurance products, 0800z will be regulated by the FCA. Thisdoes not mean that the FCA is in any way responsible for scrutiny of theRoyalty Loan Scheme, but it does mean that significant aspects of the day today business of 0800z will be subject to UK financial regulation.

AUDIT0800z will be required to make an annual audit. It will show how many newmembers have joined and the amounts payable to each Royalty Slice Holder.The audit will be conducted by Leaman Mattei Limited who are RecognisedAuditors authorised and regulated by The Institute of Chartered Accountantsin England and Wales.

LEGAL ADVISORSThe terms and conditions of this offer have been drawn up by Howard KennedyLLP who are authorised and regulated by the Solicitors Regulatory Authority.

0800zROYALTYLENDINGSAFE-GUARDS


MORE INFORMATIONWE CAN’T CHANGE THE AGREEMENTThe amount of the Royalty payment cannot be varied or cancelled by the boardof 0800z or anyone else. The Royalty Loan Agreement is a legal undertakingby 0800z Limited.

YOU CAN’T CHANGE THE AGREEMENTAfter you have your Royalty Slices, your money is committed. The Board of0800z will consider requests for the surrender of Royalty Slices on acase-by-case basis.

HOW AND WHEN ROYALTIES WILL BE PAIDThe Royalty will be paid directly into the nominated bank account of the lender.The Royalty Years are counted from when the first consumer member joins. Amessage will go out to all Royalty Slice Lenders as soon as the counter startsrunning. You will receive your first payment at the end of the second RoyaltyYear and thereafter annually until the admission of our one millionth member.

TAX POSITIONRoyalty Slices are loans. Under UK tax laws the final repayment, equal to theinitial loan, will be a repayment of capital and is tax free. Royalty payments aretreated as income by HMRC. This is the position of a typical UK-residenttax-paying individual. Tax rates, practices and procedures are subject to changeand you should always consider taking professional tax advice before makinga loan of this nature.

FROM OUTSIDE THE UKThis scheme is directed at residents of the United Kingdom. If you are not a UKresident it is entirely your responsibility to satisfy yourself that it is legal for youto make a loan to 0800z from your jurisdiction. If you proceed to apply forRoyalty Slices, we take that application as your assurance that you are residentfor tax purposes in the United Kingdom or that you have clarified that it is legalfor you to make a loan to 0800z from your jurisdiction.

IN SOMEONE ELSE’S NAMEYou can register your Royalty Slices to another person and the proceeds willbe paid to them. On the application, fill in the name of the Royalty Slice holder.We will make contact with the named holder as soon as the agreement issubmitted.

IF 0800z REQUIRES FURTHER INVESTMENTIf the Board decides that another injection of capital is needed that would notdilute the rights of lenders to be paid their annual royalties. Furtherarrangements may be structured as Royalty Lending and existing Royalty SliceHolders will of course be welcome to participate.

ANY QUESTIONS?If you have a question, please use our website contact page to reach us andwe'll respond as quickly as we can. Please note that, as we are not regulated,we cannot provide you with advice as to the merits of participation in theRoyalty Scheme, nor afford you any legal, tax or financial advice.

0800z Limited, First Floor 47-57 Marylebone Lane, London W1U 2N. Registered in England: 6476346

GET YOUR SLICECLICK HERE

http://www.0800z.co.uk/slices

0800z Royalty Finance Invitation

Investor Relations

Transcript of 0800z Royalty Finance Invitation