The Crystal Wealth Strategic Yield Media Fund provides a strong investment opportunity in a little used and less understood asset class. It brings together a unique combination of sophisticated investment managers and experienced industry executives. The Fund invests in short and medium term debt securities by way of loans to producers and distributors of film and television secured against a variety of assets. The loans are structured in such a way that the Fund gets paid back its principal and interest first out of sales proceeds of the production. As a bonus, if the production is a commercial success, the Fund participates in the upside by way of a profit participation piece negotiated at the time the loan was first extended.

Crystal Wealth Strategic Yield Media Fund

Crystal Wealth has engaged Media House Capital to source potential production loans for the Fund and to administer those debt securities in which the Manager decides to invest. Crystal Wealth is an experienced fund manager with great success in the field of debt fund management having won the 1-year and 3-year Lipper award for their Crystal Enhanced Mortgage Fund.

Media House Capital (Canada) Corp. is a federally registered Canadian corporation, inter-provincially registered in British Columbia, Ontario and Alberta. With offices in Toronto, Burlington and Burnaby, Media House is a management firm focused on strategic asset-based loans in the motion picture and television industries. Since its formation, Media House has successfully issued motion picture loans, with several in queue for 2011.

The management team focuses its experience in the motion picture, television, investment banking, and financial management sectors, on its collateralized lending opportunities. As a Leader in Asset-Based Lending (ABL), Media House specializes in the structuring, sourcing and administration of loans in the independent film market underlying debt obligation. The role of Media House is to source, advise in connection with the procurement of and service the debts to maturity. Media House Capital has a distinct advantage in the marketplace as the Fund does not intend to participate in unsecured equity-based investments in productions. Rather, the Fund invests in notes and other debt obligations that have a high ratio of projected collateral sales proceeds to debt. A requirement within this Fund is to be in a first position for recoupment plus interest from the proceeds of sales and/or delivery of the film to distributors. The successful repayment of the debt obligations does not rely on the film generating a high level of box office performance.

As Media House has now completed a number of productions, relationships with a number of established producers and their attendant productions have been developed for potential Fund Investments. Additionally, through Media House's extensive network, numerous potential projects are reviewed weekly with only those who satisfy our criteria being presented to the investment committee.

The review and vetting of potential loan opportunities is led by Media House principal Aaron L. Gilbert, supported by Film Committee member Patrick Murray and Business Affairs Executive, Margot Hand.

Benefits of Asset Based Lending

Absolute Returns: Higher Yield with Built in Risk Containment

Media House Capital structures investments that are high-yielding, well-secured, asset-based loans in the film and television market. We invest in short term loans (12-18 months) in a senior position. Investments have been created for the purpose of generating a consistent and predictable stream of interest and royalty income and all loans are backed by a combination of proven escrowed funds and international sales and distribution rights.

Low Correlation to Stocks and Bonds

The opportunity to profit in a diverse investment space beyond traditional assets such as currencies, agriculture, energy, metals and a wide variety of instruments on regulated exchanges globally.

The high yield asset class provides diversification as it has low correlation with both stock and bond markets. ABL fund strategy gives the investor exposure to off-market loans where the primary risk characteristics are much different than for investment strategies that invest in public equity and debt securities.

Asset Based Lender

Critical for Media House and its Investment Criteria, is a focus on asset backed, risk adverse lending; providing short and medium term liquidity on a low to medium risk level. Loans are advanced to producers and distributors of film and television properties, secured against a variety of assets.

Media House provides production loans to independent producers to fund a portion of the production costs to complete a motion picture. The investments generally have maturities ranging from 12 to 18 months. Production loans are made on an individual film basis, subject to strict pre-established investment guidelines and policies set by the management of Media House. These guidelines are designed to limit risk by diversifying investments, while providing performance upside. Media House is not an equity investor.

Media House customizes each loan to address the unique elements of each film project. Investment decisions are based upon a variety of quantitative and qualitative factors, including but not limited to:

• The track record of the producer;

• The experience of the sales agent together with the credibility of their sales estimates;
• The marketability of the creative attachments;
• The security of government incentives;
• As applicable, the quality of the distributors pre-sold to date;
• The position of capital and loan-to-value ratio.