1. Announcing The CARV System» From

2. 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. a significant improvement in financial reporting for sureties managing completion work or providing financing to a Principal. The CARV System»

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

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

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

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

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

8. Common Experiences The CARV System» CARV Why CARV ?

9. Problem 1: 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? The CARV System» CARV Why CARV ?

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

11. Problem 3: 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... The CARV System»... and had NO WARNING it was coming??? CARV Why CARV ?

12. Why does this happen ? The CARV System»

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

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

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

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

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

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

20. Current Cost to Complete Summary Trend Graphic Reports Revenue Report Contract Balance and Outstanding Reserve Summary Contract Balance Collections And Surety Reserve Payments Completion Cost Summary Contingency Summary Significant Adjustment Report Completion Cost Detail Contingency Detail Adjustment Detail Payment Claim Report The CARV System» To this:

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

22. CARV then produces three main reports: The CARV System» CARV How Does CARV Work »The CARV Current Cost to Complete Summary »The CARV Trend Graphics Report »The CARVRevenue Report »The CARV Revenue Report

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

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

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

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

27. 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. The CARV System» How it Works

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

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