The BondFactor Company

The BondFactor CompanyCompany Brochure

Charting the new courseCharting the new coursefor

municipal guarantees.

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Fotolia © Freitas

BONDFACTORTransparent. Stable. Peerless credit.

Transparent. Stable. Peerless Credit.


We welcome you to

The BondFactor CompanyFotolia © Kaufmann

B FBONDFACTORWe invite you to learn more about our people, resources,

and track record of integrity and commitment that defines the creditworthiness of our Firm


defines the creditworthiness of our Firm.


Our vision is your reality

Transferring Value

The BondFactor guaranty is revolutionary in financial y f

impact, yet elegant in terms of process.

The Company’s game changing capital and risk

allocation structure is d b Scovered by U.S. Patents

7,266,524, 7,386,502, 7,593,894, and 7,848,983

and related pending patent application(s).

BondFactor’s guarantee is

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BondFactor s guarantee is anchored by top-tier municipal credits, not

temporal capital requirements or corporate

credit backstops.

BONDFACTOROur greater capital efficiency produces enhanced value for

all constituents. Google Images © Oxford SWF Project



The game changer

Intellectual PropertyFotolia © Bratslavsky

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BondFactor’s patented structure conforms to all tenets required by the rating agencies and uniquely achieves unassailable creditworthiness by segmenting municipal issues into two parity components:

BONDFACTOR BondFactor Guaranteed Bonds offered at a material savings and/or price appreciation, and

Trust Bonds/Certificates that are sold without a BondFactor guarantee to sophisticated investors with specialized credit and cash flow triggers.



The safest of the safe

Risk and Credit Criteria

Credit CriteriaBondFactor’s credit underwritingBondFactor s credit underwriting encompasses investment grade issues in pre-established sectors: General Obligation

• State and City• School Districts• Community Collegesy g

Tax-Supported Debt• State-wide• Guaranteed Entitlements• Personal Income Tax

Essential Service Utilities Public Universities

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Airport Revenue Bonds Federal Grants

Risk ExclusionsOur credit and risk management criteria explicitly excludes: Annual appropriation bonds

BONDFACTORFotolia © farmer

pp p Acceleration Termination payments Derivatives



Historic inflection point

Bond Insurance Industry

The future according to the rating agencies:

“But what is clear is that the future of the sector will be in striking contrast to the past – with new names, new business models, and a redefined scope . . .”

Standard & Poor’s Ratings Direct – January 20, 2010

“The emergence of guarantors that are not exposed to legacy risk could help fill the demand gap in the U.S. municipal market and could dramatically alter the competitive environment.”

Moody’s Industry Outlook – February 2010Moody s Industry Outlook February 2010

“We believe the future of the bond rating business will differ from the current model in terms of depth of analytics offered,. . . ‘black box’ ratings methodologies need to be clarified . . .”

Kroll Bond Ratings – markit – Autumn 2010

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The future according to BondFactor:

"The future belongs to those who can restore confidence in a sector rocked by undisciplined underwriting and an

BONDFACTORFotolia © Riedel

inadequate claims-paying ability.

The financial strength inherent to BondFactor’s revolutionary risk allocation and capital structure, addresses the ills of the past while raising the bar to a previously unimaginable standard.”


.


Charting the new course

Executing with Excellence

B FBONDFACTORBondFactor builds on the success and learns from the

failure of the legacy insurers while applying ‘best practices’ to operating and managing the BondFactor enterprise.



Meet our

Senior ExecutivesFotolia © Kuosumo

George Butcher, Chief Executive Officer 30+ years of municipal finance experience,

including legal, investment banking and advisory National expert on pooled financingsp p g Former Partner at Palmer & Dodge Former Managing Director at Goldman Sachs

• Head of Municipal Infrastructure Group• Chair of Goldman Sachs Municipal Credit

Committee Inventor of BondFactor’s patented technology Graduate of Bowdoin College majoring in

mathematics, JD from Harvard Law School

Brad Wendt, President 25+ years of municipal finance experience;

Managing Director and Municipal Capital Markets

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Managing Director and Municipal Capital Markets Group Head for Goldman Sachs Co-founded BondDesk, the leading electronic

trading platform for retail fixed income; President and Senior Risk Officer for broker dealer Scaled BondDesk from five employees to 100-plus

professionals; exponential increase in revenues

BONDFACTORp penabled highly successful sale to private equity Completed 17 New York City Marathons Graduate of the U.S. Air Force Academy; MBAs

from Dartmouth College and the University of Colorado



Meet our

Senior Management TeamWikimedia©Uris

Stephen Mark, Chief Analytics Officer Co-founder of ButcherMark Financial Advisors Senior quantitative specialist in municipal finance at

Goldman Sachs including portfolio metric analyses Served as a Senior Economist at Brookings InstitutionServed as a Senior Economist at Brookings Institution BA from Yale University and a PhD in economics from

the University of Pennsylvania

Faye Boatright, Chief Operating Officer 20 years of municipal and corporate finance experience

at Goldman Sachs and Morgan Stanley St t d l fi i di $3 0 b Structured complex financings; par exceeding $3.0 bn Board of Governors, The Municipal Forum of New York BA in Public Policy, Stanford University; MBA, The

Wharton School at the University of Pennsylvania

Adrienne Unae, Chief Administrative Officer Co-Founder and CAO ButcherMark Financial Advisors

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20 years scaling companies across multiple industries Attended Harvard on the Walter Terry Memorial

Scholarship; BA University of South Florida Completing MBA Program with Aspen University

Jim Gebhardt, Chief Risk Officer Served 20+ years as CFO for NYS EnvironmentalBONDFACTOR Served 20+ years as CFO for NYS Environmental

Facilities Corporation (EFC), a Triple-A rated issuer specializing in structured pooled financings and borrower guaranties Senior member of FGIC’s Utilities and Structured

Groups BA State University NY Albany, MS SUNY Syracuse; CFA



Meet our

Senior Management TeamGoogle Images © City of Naples

Amal Chaudhuri, Chief Technology Officer 25-year hands-on deployment of global infrastructure Former CIO of Citigroup Asset Management Served as Global Systems Manager for J.P. Morgan Invest. Mgt. BA Vassar College in Computer Science

Marianne Camille Spraggins, Managing Director 30+ years of municipal and mortgage finance, private equity, and

legal experience; over $20 bn investment banking transactions Former Senior Counsel, Congressional Oversight of TARP Prior Board member Securities Investors Protection Corp. (SIPC) BA Boston University, JD New York Law School, LLM Harvard Law

Dan Davis, Chief Information Officer 15 years providing technology strategy to the financial services

industry including Centre Partners private equity Industry expert in cross-functional technology integrations and

end-user custom interface design BA Trinity University; MBA Columbia Business School

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Roy Torkelson, Managing Director, Intellectual Property Investment banking positions span three decades including

senior posts at Merrill Lynch and JP Morgan Served as Chairman & CEO NYS Environmental Facilities Corp, a

prominent municipal pool loan issuer BA from St. Hyacinth College and an MPA from University of

Albany, New York

BONDFACTORElizabeth Hill, Managing Director, Surveillance 30 years experience in bond insurance and rating agencies Managing Director & Head of FSA’s Municipal Surveillance Responsible for 15,000 municipal credits and $500 bn par Received BS in Education, Illinois State University and Masters of

Public Administration, New York University

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Meet our

Senior Management TeamGoogle Images © CSF PUC

Robert Fine, Managing Director, Analytics 23 years of municipal finance experience, specializing in

quantitative analysis Senior quantitative positions at Goldman Sachs and JP Morgan,

specializing in algorithmic numeric analysis Received a BA from Kenyon College and an MBA from Cornell y g

University

Sally Zasloff, Managing Director, Operations 25 years of experience with monoline insurance firms Created FSA’s municipal Surveillance & Operations Dept. Among first members of FGIC’s surveillance department BS, The Wharton School, MS in Energy Management and Policy,

U i it f P l iUniversity of Pennsylvania

Louis Sterling, Managing Director, Capital Markets 10 years of corporate banking and private equity experience at

Goldman Sachs and Lincolnshire Mgt. Senior transaction banker on numerous private equity

investments and joint ventures Graduate of Howard University; JD/MBA joint degree from

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y; / j gHarvard University

Gabriel Topor, Managing Director, Credit and Risk 10-plus years credit and risk experience, including analyst

positions at AMBAC, Moody’s, and Royal Bank Canada Chief Underwriting Officer at CIFG Guaranty Columbia University: BA Political Science, MA International

Aff i MA P liti l S iBONDFACTORAffairs, MA Political Science

Ayana Davis, Director Human Resources Eight years of experience in all aspects of human resource

administration, payroll, and plan management Extensive experience with 401 (K) and IRA plan rollout, ongoing

administration, and record keeping BA Pol. Science College of New Rochelle; business minor


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Meet our

Board of ManagersGoogle Images © PanetWare

Terry Agriss, Board and Executive Committee President of TAgriss Advisory Services Former Board Member of the Municipal Securities Rulemaking

Board (MSRB); Chair of the Governance and Audit Committees Former President of the New York Environmental Facilities Corp. Received BA from Washington UniversityReceived BA from Washington University

John Gibbs, Jr., Board and Executive Committee Former Senior Partner at Booz, Allen, & Hamilton Former Partner with Spencer Stuart Managing Partner of Gibbs and Associates Received B.S. degree in Accounting and Economics from Temple

University and an MBA from the Wharton School of Business

William Jacobs, Board Member Founder and former COO of Financial Security Assurance (FSA) Managed FSA initial capital raise and all staff functions, including

finance, administration, investment mgt, and legal Former COO MasterCard Inc; Lead director multiple companies Received BA and JD from American University

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O. Peter Sherwood, Board Member Judge, New York State Court of Claims Acting Justice, Supreme Court New York County Prior positions include:

• Partner, Manatt, Phelps & Phillips, LLP• Corporation Counsel, City of New York • Solicitor General, New York State

BONDFACTORJeff Humber, Board Member 20 year career at Merrill Lynch including positions as:

• Co-Chief Executive Officer Merrill Lynch South Africa• Managing Director – Municipal Markets Group• Senior Vice President, Global Head of Diversity

Senior positions at Booz, Allen, & Hamilton

BA Brooklyn College, JD New York Univ. School of Law


BA Virginia Union University, MBA Harvard, JD University of Virginia


Fotolia © Mermozine

Working for you!

The BondFactor Difference

When we write guarantees, we have no interests

save those of our clients.

B FBONDFACTOR



Transparent. Stable. Peerless Credit..

B FBONDFACTORThe BondFactor Company1120 Avenue of the Americas

Fourth FloorNew York. NY 10036

(212) 719-2632B dF t


www.BondFactor.com

The BondFactor Company

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