STEP CREDIT UNION CHARTERING, PRIVATE PLACEMENT FUNDING, COMMITMENT AND BANK OPERATIONS PLAN SUPPORT LOCAL BUSINESSSHARING ECONOMY 4

PRE-CHARTERING AND PRE-PLACEMENT Prepare and submit a Proposed ‘Field Of Membership (PFOM) letter’ to the NCUA NCUA Apptoves PFOM Now Time To Recruit “Subscribers” aka Board Members, write business plans and raise funds for chartering Proposed Field Of Membership (PFOM)

Committed to completing the Credit Union Chartering Process (Job #1) Acting GCCFCU Board Member; Advise. Promote and Fundraise Acting Executive Director: Incorporate, Operate the Cooperative Develop and deliver business, econometric and investment recommendation Job Aspect (During Chartering Process) Credit Union Board Member Sector-specific Cooperative Executive Director Advisory Board to GCCFCU Job Description SUBSCRIBER RECRUITMENT AND JOB DESCRIPTION Job Resulting Stage: Readiness For Private Placement Qualification matching: 1- Subscribers executive directorship placement 2- NCUA charter application processing 3- Business planning a- GCCFCU business Planning b- Cooperative business planning (8) c- Limited partner business planning (32) d- Operating agreement finalization e- Service level agreement and f- Service and delivery contacts

PRIVATE PLACEMENT Credit Union Requirements: Management; 1. Fitness 2. Experience Organization; 1. Sponsorship 2. Advisory 3. Credit Committee Mission; 1. Thrift 2. Credit 3. Business Plan (LlC/UA SBIC compliant) SBIC Requirements: Partnership Organization; 1. General Partner (AND Direct. LLC) 2. Limited Partners (Accredited Investors) Business Plan; 1.Operations a.Small Business Lending b.Small Business Development (via Advisory Panel) 2. SBIC Accreditation Development Of The Finalized Private Placement Memorandum (PPM) Fund Member Qualifications: 1- Subscriber executive director ship placement 2- Market planning 3- Business planning: a. Credit worthiness b. Operation agreement finalization c. Service level agreements d. Service delivery contracts

PRESENTATION GRADE PRIVATE PLACEMENT OFFERING DOCUMENT PREPARATION

FUNDING, RECEIPT AND COMMITMENTS Offering #1: 506(c) (Pre- SBIC Approval) Offering Type: Debenture SBIC-Compliant Limited Partnership Operating Agreement; 1. Each Investor Is A Limited Partner (min. contribution $5.000) 2. Competitive Rate Of Interest 3. Diversified Portfolio Of Investments 4. Credit/Default Risk Mitigation 5. NMTC/LIHTC or other CDE/CRA considerations to Boost ROI and Decrease Overall Risk Credit Union Greater Cleveland Cooperative Federal Credit Union (GCCFCU) 1. Funds Commitment Letter from GP completes Charter Application Cash (From Debt) Committed Deposits General Partner AND Direct, LLC Management: Arlin J, Wallace 1- Manager Managed 2- ERISA Compliant 3- CDE 4- Complete SBIC Application PPM OFFERINGS AND FUNDING (Pre-SBIC Accreditation and Pre-Bank Charter)

Bank Operations: Lending/Investing and Equity Credit Union Greater Cleveland Cooperative Federal Credit Union (GCCFCU) 1. CDFI Lender 2. Accredited Investor General Partner (PPM) AND Direct, LLC Management; Arlin J. Wallace 1. Manager Managed 2. CDE 3. SBIC Offering #2 506(b) (Post-SBIC Approval) Offering Type: Equity ERISA-Compliant Fund; 1. Purchasers Must be Accredited (Credit Union or General Partner) 2. Stock Price Total Asset Valuation/POM Step 1a Cash (Refinance Debenture Debt) Step 2 Loan(s) Convertible Debentures Post SBIC Accreditation and Post Bank Charter Credit Union Opening Day and “1st Order Of Business” (Initial Investor Payoff) Limited Partners/Accredited Investors (PPM) Step 1b Payoff Initial Investors

Fund Operations: Investing and Equity Step 1 Rollover Equity Investment General Partner AND Direct.LLC Management; Arlin J. Wallace 1. Manager Managed 2. CDE 3. SBIC Step 2 Cash Step 3 Loan Repayment Step 4 Mutual Fund-type Ownership Offering #2 506(c) Offering Type: Equity ERISA-Compliant Fund; 1. Purchasers need not be Accredited 2. Individual Stock Price = Fund Intrinsic Valuation/Proportion Non Accredited/401k/IRA Investors from the Community SBIC, Investment Fund and Community Transactions (Community Integration and Investment) Credit Union (GCCFCU) 1.Deposit Institution 2.POS Treasury 3.Lender 4.Accredited Investor (CDE) Lender to Individual Fund Companies