Announcing The CARV System» From

1. Announcing The CARV System» From

2. The CARV System» Cashin Spinelli & Ferretti, LLC is pleased to introduce The CARV System» a significant improvement in financial reporting for sureties managing completion work or providing financing to a Principal.

3. Cost And Reserve Variance What is CARV The CARV System» CARV is a managerial and technological leap in financial reporting for completing and financing Sureties.

4. The CARV System» What is CARV? CARVanalyzes complex multi-page construction cost reports and provides Surety managers with easy to read reports on work progress, cash flow and reserve adequacy.

5. The CARV System» By making extensive use of technology and existing information from joint escrow accounts, CARVwill reduce expenses for outside consultants and accountants. What is CARV?

6. The CARV System» Surety claims representatives all have opinions about entering into a completion agreement or providing financing to a distressed Principal. Why CARV ?

7. The CARV System» Hard earned wisdom from working through the many pitfalls of completing and financing strategies usually leads to some universal advice… Why CARV ? Don’t do it!

8. The CARV System» Common Experiences Why CARV ?

9. The CARV System» Problem 1: Why CARV ? Have you ever issued a check to fund an escrow account and wondered whether the remaining reserve is adequate to cover the cost of the remaining work?

10. The CARV System» Problem 2: Why CARV? Have you ever incurred large bills with consultants and accountants trying to find out if your reserves are adequate to cover those costs? Or to research that proverbial question… What Happened ???

11. The CARV System» Problem 3: Why CARV ? Have you ever been half-way through a financing case and discovered that your loss reserve will require a substantial increase to cover the remaining completion costs . . . Surprise ! . . . and had NOWARNING it was coming???

12. Why does this happen ? The CARV System» ? ? ? ? ? ? ? ? ? ?

13. The CARV System» Why CARV ? The Answer: » We all know that a Surety sometimes has no viable option to providing financing to its Principal or completing the work itself. » Having been forced into this otherwise rational decision, Sureties are frequently forced to rely on the Principal’s accounting system to obtain the information they need to manage both the project and the loss reserve.

14. The CARV System» Why CARV ? Contractor systems cannot: » Analyze the reserve impact of surprise corrective work » Track trends in project expenses The Answer: Contractor accounting systems were designed for contractors. • Inform you whether reserve disbursements have resulted in equal reductions in work

15. The CARV System» Why CARV? Alert you that a reserve adjustment will be required … Most important, contractor accounting systems cannot: or tell youwhat happened.

16. The CARV System» Why CARV ? After 100 years of history with financially distressed principals, there is no accounting system designed specifically for a completing or financing Surety. The Answer:

17. The CARV System» Why CARV? We’ve developed The CARV System to fill this gap. • CARVprovides graphical trend and financial reports for the unique needs of the Surety Manager overseeing completion work and Principal financing.

18. The CARV System» What Does CARVDo? CARV answers two questions: • What does all the project cost data mean? • Is the loss reserve adequate?

19. The CARV System» CARV transforms surety financial reporting from this:

20. The CARV System» To this:

21. The CARV System» How Does CARVWork »The heart of CARV is its use of existing financial information from Payment Requisitions and Joint Control Escrow Accounts. »Our technology transfers this information into TheCARV System. »After transferring, CARV keys on two items: 1. The original Completion Cost Estimates (Surplus/Deficit Report) 2. Contingencies built into the loss reserves.

22. The CARV System» How Does CARV Work CARVthen produces three main reports: • TheCARV Current Cost to Complete Summary • TheCARVTrendGraphics Report • The CARVRevenue Report

23. The CARV System» How it Works • TheCARV Current Cost to Complete Summary • compares monthly activity against original estimates.

24. The CARV System» How it Works • TheCARVTrend Graphics Reports provide a visual analysis of key cost and completion trends.

25. The CARV System» How it Works The CARVRevenue Report provides a summary of contract balance collections and predicts cash flow needs for the coming month.

26. The CARV System» How it Works • The CARVAdjustment Report tracks the cost impacts of changes in the project. • The Adjustment Report provides the answer to - What Happened???

27. The CARV System» How it Works CARV provides the tool that enables a Surety to make the leap and use its own language to simultaneously manage both construction activity and surety reserves.

28. The CARV System» How it Works CARVproduces: • Better management of the project • Better management of the reserve • Lower costs for consultants and accountants

29. To arrange an in depth presentation on The CARVSystem» contact: The CARV System» Jim Rudnik, Esq. jrudnik@csfllc.com ph. 610-270-0333 Lou Baldassarre lbaldassarre@csfllc.com ph. 610-270-0333 OR Buffalo Grove (Chicago), IL (847) 415-9003 Blue Bell (Philadelphia), PA (610) 270-0333 Bohemia (Long Island), NY (Home Office) (631) 737-9170 Plantsville (Hartford), CT (860) 628-5557 www.csfllc.com