EFTA01105097.pdf

NAME OF APPLICANT: Financial Ballistics Trust TYPE OF APPLICATION: OFFICIAL USE ONLY NEW(X) Dates Received: EXTENSION( ) SMALL MANUFACTURER( ) MODIFICATION( ) Accepted as Complete: TRANSFER( ) APPLICATION FOR ECONOMIC DEVELOPMENT BENEFITS Economic Development Authority EFTA01105097 Application must be filed with the one (1) original and fourteen (14) bound copies. File with the Assistant Chief Executive Officer, Economic Development Commission, #4 King Street, Frederiksted, St. Croix 00840 or mailed to #116 King Street, Fredericksted, St. Croix 00840. APPLICATION NOTES: See Rules and Regulations for further guidance on filing application. Please provide as much information as possible. A complete application will speed processing. For information that is attached as an Appendix, please mark with an "xn in the space provided, and "O" if to be provided at a later date and "N.A." if not applicable. EFTA01105098 I. CONTACT INFORMATION EIN To.Fie.Providecl NAICS Code A. Name of Applicant `financial Pal..isticsTrust B. Mailing Address: .Hook kuarter,..Ste E9 at, Tkomass USVI 00802, C. Phone: Fax: Email D. Plant/Facility Location: Island: St..:fhqmas Estate & Parcel No: TB? E. Name of Local Attorney or Representative: lialKciterhaklaq,...grdler_htdiFergcsoolle ..._ Address: 930o. I lavepsighi Port ofiale.Svile_15-J6 NI 00802 Phone: Fa mail F. Please tell us how you learned of the EDC Program: I. business contact( ) 2. attomeyhax advisor( ) 3. advertisement( ) 4. conference/expo( ) 5. website( ) 6. other--please explain(X ) Beneficial owner is a current beneficiary, 2. BUSINESS INFORMATION A. Brief description of the type of Business to be undertaken by applicant in the USVI. Category IIA designated service business_providinflconomic, Scientific or Management Consulting Services, Investment Managers and Advisors, Research and Development as defined in Sec. 793(g)(4), Title 29, Chapter I2, Virgin Istantis_c_ot_. I. Category to ) II( ) IIA(X ) III() 2. Detailed description of the activities for which benefits arc sought and narrative in support of application. (Include a business plan) Check OrAtinched, Appendix 1(X) 3. If applicant is a small business, attach a small business certification. Check ijAtrached, Appendix 2 (n/0 4. Please give information including full name, EINII, place of business, resident agent and description of affiliate, subsidiary and/or parent business entities. (include an organizational chart, if applicable) Check if Attached, Appendix 3 PO • B. Form of Business Organization: I. Individual () 2. Corporation ( ) 3. Partnership ( ) 4. Limited Liability Corporation ( ) 5. Limited Liability Partnership ( ) 6. Limited Liability Limited Partnership ( ) 7. Other (X) 8: If Subsidiary of U.S. Corporation, Name of Parent Corporation and F.IN( ) EFTA01105099 I. Individual a. Country of citizenship: b. Date applicant became bonafide resident of the USVI: C. Applicant intends to remain a homicide resident of the USVI? Yes( ) No( ) 2. Corporation a. If stockholders are individuals, stockholders full names (including first, middle, last and alias/nickname), Address, Date of Birth (including month, day and year), Place of Birth and Social Security Number or Country ID, for stockholders owning 5% or more of the corporation. Check if Attached. Appendix 4 0 Name: Address: Date of Birth: Place of Birth: % Owned: b. If stockholder is a corporation or other entity, provide entity mfonna ion and specify full names (including first, middle, las and alias/nick name) of directors, principals and officers, for stockholders owning 5% or more of the corporation. Check if Attached, Appendix 5 0 c. Date of incorporation: Place of incorporation d. Copy of Articles of Incorporation certified by the Lt. Governor's Office. Check if Attached, Appendix 6 e. "Certificate of Good Standing" from Lt. Governor's Office certifying that all required annual reports have been filed and franchise taxes paid. Check ifAttached, Appendix 7 f. In case of a foreign (non V.I.) corporation, attach evidence that the Corporation is authorized to do business in the USVI. Check ?Olt:ached. Appendix 8 O EFTA01105100 3. Partnership a. Full names (including first, middle, last and alias/nickname), residence, social security number, date of birth, place of birth, occupation and citizenship of each partner owning 5% or more of the partnership and those who are or will be bonafide resident seeking to claim dividends and interest withholding exemptions. VI residents must give date when his or her residency commenced. I. NAME I CITIZENSHIP OWNERSHIP% ADDRESS DATE OF V.I. RESIDENCY OCCUPATION SSNCOUNTRY II) NO. DATE OF BIRTH 2. NAME CITIZENSHIP OWNERSHIP% ADDRIMS DATE OF V.I. RESIDENCY OCCUPATION SSIQCOUNTRY ID NO. DATE OF BIRTH 3. NAME I ernziiNstlIP OWNERSHIP% ADDRESS DATE OF V.I. RESIDENCY OCCUPATION I SSWCOUNTR Y II) NO. DATE OF BIgni 4 NAME I CD1ZENSHIP OWNERSHIP% ADDRESS DATE OF V.I. RESIDENCY OCCUPATION SSNCOUNTRY II) NO. DATE OF BIRTH 5. NAME I CITIZENSHIP OWNERSHIP% ADDRESS DATE OF V.I. RESIDENCY OCCUPATION SSN/COUNTRY IL) NO. DATE OF BIRTH b. Attach a copy of partnership agreement filed at the Lt. Governor's Office and the internal agreement between partners. Check if Attached, Appendix 9 0 c. If a partner is a corporation, submit all of the information required of a corporation (Section "B") for each applicant. Check ifAttached, Appendix 10 () d. If a partner is a LLC, submit all of the information required of a Limited Liability Corporation. Check fiAttached, Appendix 11 0 e. If a partner is a LLP, submit all of the information required of a Limited Liability Partnership. Check if Attached, Appendix 12 f. If a partner is a LLLP, submit all of the information required of a Limited Liability Partnership. Check ilAttached, Appendix 13 0 EFTA01105101 4. Limited Liability Entities a. Full names (including first, middle, last and alias/nickname), residence, social security number, date of birth, place of birth, occupation and citizenship of each member/partner owning 5% or more of the equitable interest in the business and those who are or will be a bonafide resident seeking to claim dividends and interest withholding exemptions. VI residents must give date when his or her residency commenced. I. NAME Eimocial Ballistics. LLC I CEITZENSHIP VI OWNERSHIP% 100% ADDRESS 9100 IIntuit Pon of Sale. Sic I5-I6, St. Thome, VI (X1802 DATE OF V.I. RESII3ENCY 11121!101I OCCUPATION I SSEPCOUNTRY II) NO. 2. NAME I CITIZENSHIP OWNERSHIP% ADDRES DATE OP norm 3. NAME CIDZIENSHIP OWNERSHIP% ADDRESS DATE OF V.I. RESIDENCY OCCUPATION TSSN.COUNTRY ID NO DATE OF BIRTH 4. NAME I CITIZENSHIP OWNERSHIP% ADDRESS DATE OP V.I. RESIDENCY OCCUPATION ssNcotorrity ID NO. DATE or num i S. NAME I CITIZENSHIP OWNERSHIP% ADDRESS DATE OF V.I. RESIDENCY OCCUPATION SSMCOUNTRY ID NO. DATE OF Blitni b. Agreement of LLLP: General Partner: Check if Anached. Appendix 14 () e. Statement of Qualification Check ifAttached. Appendix 15 0 d. Certificate of Limited Partnership Check if Attached. Appendix 16 0 e. Article of Organization Check flAttached, Appendix 17 (X) f. Certificate of Existence: General Partner: Check if Attached, Appendix 18 (X) g. Agreement between General & Limited Partners Check if Attached, Appendix 19 ( ) h. If a member/partner is an entity, submit all of the information required of such entity Check if Attached, Appendix 20 () EFTA01105102  3. EMPLOYMENT A. Employment and payroll information I. Summary FlILLTIRIE EMPLOVMDIT PRES/74T AFTER FIRST TIME 12 :gowns MAI /lEt.ICEMENT OF RENE/Ill; POSITION LLASS1FCATION NO ANNUAL WAGES NO ANNUM, SAWA DOURLY WORKERS Resident S S S CLERICAL Resident 2 S95,000 2 595,000 S S PINS'ESSIONAL/TEOINICAL ReSitiall 6 5,95.000 6 5695,000 S S MANAGEMENT/SUPERVISORY Resident 2 stispee 2 'mono Total Resident to SL14.5,1100 10 S1.165.000 Please attach a list ofjob titles and salaries Check J' AM shed, Appendix 21 (X) 2. I low many employees will be Non-Virgin Islands residents at the commencement of benefits? None Check if Attached. Appendix 2! (n/a ) 3. How many employees will be Non-Virgin Islands residents at the time of hire? None Check ((Attached, Appendix 22 (n/a) 4. If applicant is or will be employing nonresidents, attach a copy of Comprehensive training plan approved by the Commissioner of Labor. Check ((Attached. Appendix 23 (n/a) 5. How many employee positions will be filled by owners, partners or members? One, President Please list job titles and functions. Check ((Attached. Appendix 24 (X) 6. Attach copies of most recent payrolls to include name, title, ss#, job, and salary. Check ((Attached. Appendix 25 (71/a ) 7. Has the applicant, parent, affiliate or subsidiary entities had any unresolved labor problems during the past two (2) years? Yes ( ) No( X ) If -yes", attach a statement as to the nature of the problem. Check if Attached, Appendix 26 (n/a) 8. Attach copy of Organizational Chart. Check ifAttached. Appendix 27 (X) 9. Employee benefit Plan. Check ((Attached. Appendix 28 (X) EFTA01105103 4. INVESTMENT & PROCUREMENT A. Proposed Initial Capital Investment New Applicant S 500,000 Extension/Modification S Small Business S Date of Commencement of Investment Date of Completion of investment B. If Business Operations Include Manufacturing, Principal Raw Materials And Components To Be Utilized In Process: DIFO:PITION SOURCE ANNUAL DOLLAR VOLUME VALOR AS OF FINISH PROLIIKT Thimm-Ayy, wiii,ni La yA,,u,s.,OR NAN'F.OF FORGUN COUNTRY C. In the event the applicant is engaged in manufacturing requiring duty free entry to the U.S., Attach U.S. customs ruling for favorable treatment under headnote 3(a) (19 USC 1202). Check if Attached, Appendix 29O D. Principal revenue source; indicate percent to: V.I....... _% U.S. _ %; Foreign 100 (name of country/countries) Check ifAnuched, Appendix 30 (X) E. Machinery and Equipment: DISCIPTION DATE OF ACQUISTION PURCHASED PRICE LEASED COST PLEA§ESULIMIT COPY OF LuseAND DOCUMENTATION ATTESTING TO THE FAIR MARKET VALUE OF EQUIPMENT TO RE LEASED Check if Atioehed Appendix 31 ( ) EFTA01105104 F. Lund and Buildings: IAX.A11O1. INIIIAL PLANNED EXPANSION IANI) AREA (ACRES/SONE.) IAND TA IA E III:DINNED) S S DATE PURCHASED OR RENTED NUMBER OF BUILDINGS AREA (ACRPSISO.VE) BUILDING VALUE OF OWNED) S S ANNUAL RENT (SIIRMIT LEASE) S S DATE PURCHASED OR RENTED b. If land and/or building arc leased, attach copy of lease(s) Check if Attached, Appendix 32 () c. If facilities are not yet owned/leased, description of facilities needed for business, (i.e. I! of square footage. etc.) Check if Attached. Appendix 33 1) C. Indicate whether the applicant will utilize any facilities or locations in common with another person or company. Yes( ) No( ) If 'Yes", list such facilities and locations, their value (if owned) and percentage used by each occupant. User I User 2 NAME NAME EFTA01105105 5. FINANCIAL A. FINANCIAL INFORMATION Please submit the following if applicable: I. Applicant must obtain a Bank reference (s) letter, provide a list of all bank accounts and the names of all authorize signatures on the accounts. Check if Attached Appendix 34 (X) la. If capitalization is through individual or entities, please provide a financial institution letter indicating verification of source of investment/capitalization. Check ifAttached, Appendix 35 (A) 2. Certified copies of Profit and Loss statements and balance sheets for the past three (3) years; if entity (or similar prior entity) has been in operation prior to application. Check if Attached, Appendix 36 (n/a) 3. Projected income and expense statements for five (5) years which have been signed by principals. (Use attached example.fornrat or equivalent. See page 14.) Check VAItached, Appendix 37 (X) 4. Beginning balance sheet must be signed by principals. Check if Atiachech Appendix 38 (X) 5. If applicant or a shareholder/partner/member owning more than 5% or more of applicant is a publicly traded entity; copies of the annual report of same. Check if Attached, Appendix 39 (n/a) 6. If entity is a pass-through entity, provide for owners who are/were VI residents a statement as to the manner in which the investment has been, or will be financed together with names and addresses of persons or companies providing the financing. Check if Attached. Appendix 40 (n/a) EFTA01105106 6.TAX INFORMATION A. Letter from V.I. Bureau of Internal Revenue indicating status of tax obligations. (Not required for corporations existing less than one (I) year; if operations has not commenced) Check if-Attached. Appendix 41 (n/a) B. Copies of applicant entity Federal (IRS) or V.I. income tax returns for the past three (3) years. Check if Attached, Appendix 42 (n/a) C. Copies of Federal (IRS) or V.I. income lax returns for the past three (3) years for beneficiary owners. Check if Attached. Appendix 43 (TOP) 7.ADDITIONAL INFORMATION A. Applicant must obtain a letter from the V.I. Department of Planning and Natural Resources stating compliance with ecological, environmental and planning laws and regulations. Check (Attached. Appendix 44 (MP) B. If the property of facility adjoins beach or shoreline attach copy of easement or lease recorded with recorder of deeds with public easement provisions. Check if Attached, Appendix 45 (a/a) C. If applicant is approved, does applicant intend to conduct any business not eligible for benefits? Yes( ) No(X) If "yes", attach explanation and the nature of such business. Check if Attached, Appendix 46 () D. Please Attach your management training program plan. Check 1f Attached, Appendix 47 (X) E. Explain and give evidence of your educational assistance program Check .1 Attached, Appendix 48 (X) EFTA01105107 13. BACKGROUND INFORMATION A. Indicate whether applicant, or any of its stockholders or partners have, or have had, any proprietary interest in any other enterprise which is or has been a beneficiary under the V.I. Economic Development Program. Please answer questions BE for all applicant(s), entity partners, owners, directors or officers of corporation and beneficial owners. Yes(X) No( )If "yes" explain below. Mr. Jeffrey Epstein is the sole owner of Financial Trust Company, Inc., a current EDC beneficiary. 13. Has any entity in which you, or your spouse, is/was a director, officer, partner or an owner of a 5% or greater interest ever had any license, permit, or certificate issued by a governmental agency in any jurisdiction denied, suspended, revoked, or subject to any conditions? Yes( ) No(X) If "Yes" please explain. Check ifAttached, Appendix 49 () C. Have you ever been arrested or charged with any crime or offense in any jurisdiction? Yes(X) No( ) If "yes" please explain. Check if Aiiached, Appendix 50 (X) D. Have you ever been the subject of an investigation conducted by any governmental agency/organization, court, commission, committee, grand jury or investigatory body (local, state, county, provincial, federal, national, ect.) other than in response to a traffic summons? Yes(X) No( )If "yes" please provide the name and address of court or other agency, nature of proceeding or investigation date, whether testimony given and if so what date, and approximate time period of investigation. Check j[Autzched, Appendix 51(X) E. Have any of the beneficial owners ever been adjudicated or filed a petition for any type of bankruptcy, insolvency or liquidation under any bankruptcy or insolvency law in any jurisdiction? No. Check ifAitached, Appendix 52 EFTA01105108  APPENDIX 1 1. BUSINESS SUMMARY 1.1. Executive Summary Financial Ballistics Trust ("Applicant"), a Delaware statutory trust which is in the process of registering to do business in the U.S. Virgin Islands, will establish and conduct a Category IIA 'designated service business" as described in Section 703(g)(4) Title 29, Chapter 12 of the Virgin Islands Code. The Applicant will provide organizations across the private and public sectors, located principally in Africa (and anticipated in the future to expand to locations in the Middle East and Asia) with a broad range of investment, economic, financial, scientific and management consulting and advisory services. The business objective of the Applicant is to assist in the development and execution of integrated resource, capital projects and financial planning and development, as well as acting as an intermediary between its clients and investment banks, commodities suppliers, investment providers, asset developers and others. 1.2. Relationship to Financial Trust Company, Inc. Mr. Epstein, who is the sole member of the Applicant's owner, Financial Ballistics, LLC, a U.S. Virgin Islands limited liability company, is the President and sole shareholder of an existing Economic Development Commission ("EDC") beneficiary, Financial Trust Company, Inc. ("FTC") that was granted an extension of benefits in 2010. The client base of and the advisory services provided by the Applicant differ markedly from those of FTC, hence the desire to create a new entity that will meet all of the requirements of the EDC. 2. BUSINESS ACTIVITIES AND COMPENSATION 2.1. Services to be Provided by Applicant The Applicant will be engaged in assignments that will demand a high degree of creativity, quantitative analysis, innovative thinking and a strategic, long-term perspective. As markets evolve, nationally owned utilities and resources are continually exposed to new opportunities and potential risks. Access to the capital and commodity markets requires strategic focus that integrates risk management and debt policies and competitive resources. The Applicant's relationships in and knowledge of both the international finance and commodities markets will enable the Applicant's clients to be competitive and profitable in a changing environment. EFTA01105109 The business philosophy of the Applicant is to establish client relationships emphasizing a long-term engagement rather than transactional-based relationships. This philosophy allows the Applicant to develop business plans that are in the best interest of its clients. The consulting services provided by the Applicant will include, but not necessarily be limited to, consulting in the areas of technology, structured finance, investments, asset allocation, organization, risk management, resource development and sustainability. A more detailed discussion of services contemplated by the Applicant is discussed below in section 2.4.2. 2.2. Compensation for Services The Applicant will charge a fee for services based on a percentage of the assets for which it provides services and/or upon a percentage of the transaction price for transactions undertaken in connection with the services it provides. Title 29, Chapter 12, Section 713b(a) of the Virgin Islands Code provides that the income tax liability of a Beneficiary is reduced on a current basis "for income derived from the business or industry for which the certificate is granted." Therefore, in order for income to be eligible for the EDC benefits, the income must be attributable to the business for which the EDC benefits are specifically granted. In addition, as provided in the currently effective rules of the Internal Revenue Code, the income must be also either USVI source income or income that is effectively connected with a USVI trade or business. It is anticipated that all of the Applicant's income will be sourced or effectively connected to the USVI and therefore eligible for benefits. 2.3. Investment Activities The Applicant's initial focus will be on providing investment, economic, financial, scientific and management consulting and advisory services in Africa. The initial focus will likely be toward countries in West and Central Africa which have a common currency that is pegged to the Euro, including: • Cote d'Ivoire and Senegal, both of which are governed by the Central Bank of West African State. • Equatorial Guinea and Gabon, both of which are governed by the Central Bank of Central African State It is likely that the Applicant's activities would expand beyond these four countries if the initial phase of the implementation of the Applicant's business plan is successful. EFTA01105110 2.4. Initial Focus on Africa, 2.4.1. Geography. Africa is the world's second largest and second most populous continent, after Asia. At about 11.7 million square miles, it covers six percent of the Earth's total surface area and twenty percent of the total land area. With 1.0 billion people (as of 2009) in 61 territories, it accounts for about fifteen percent of the world's human population. The continent has 56 sovereign states. The African expected economic growth rate is at about 5.5% in 2011. Cote d'Ivoire Cote d'Ivoire has had close ties to France since 1960. An increase in cocoa production for export has made this country one of the most prosperous West African states. Cote d'Ivoire is heavily dependent on agriculture and related activities. Approximately 68% of the population is employed by the agricultural industry. This country is the world's largest producer and exporter of cocoa beans and a large producer and exporter of coffee. Cocoa, oil, and coffee are the country's top export revenue earners. However, the country also produces gold. Since the end of the civil war in 2003, political turmoil has continued to damage Cote d'Ivoire's economy, resulting in the loss of foreign investment and slow economic growth. GDP grew by more than 2% in 2008 and increased to 4% per year in 2009-10. Power cuts caused by a turbine failure in early 2010 have slowed economic activity. Senegal Senegal remains one of the most stable democracies in Africa. A Socialist Party ruled Senegal for 40 years until current President Abdoulaye Wade was elected in 2000 and reelected in February 2007. Senegal has a long history of participating in international peacekeeping and regional mediation. Senegal is one of the few African states that has never experienced a coup d'etat. In Senegal's recent history, power has transferred peacefully and democratically. President Wade has advanced a liberal agenda for Senegal, including privatizations and other market-opening measures. He has a strong interest in raising Senegal's regional EFTA01105111 and international profile. The liberalization of the economy is proceeding at a very slow pace. Senegal continues to play a significant role in regional and international affairs. The country's key export industries are phosphate mining, fertilizer production, and commercial fishing. The country is also working on iron ore and oil exploration projects. In 2010, the people of Senegal protested against frequent power outages and the government pledged to expand capacity by 2012 and to promote renewable energy. Until Senegal has more capacity, economic activity will be hindered. As a member of the West African Economic and Monetary Union (WAEMU), Senegal is working toward greater regional integration and a more stable monetary policy. High unemployment, however, continues to prompt illegal migrants to flee Senegal in search of better job opportunities in Europe. Equatorial Guinea Spanish, French, and Portuguese are the official languages of Equatorial Guinea, though the use of Spanish predominates. The Roman Catholic Church has greatly influenced both religion and education in this country and there are also a growing number of foreigners from neighboring Cameroon, Nigeria, and Gabon. Equatorial Guinea gained independence in 1968 after 190 years of Spanish rule. The country is relatively small and composed of a mainland plus five inhabited islands. It is one of the smallest nations on the African continent. President Teodoro Obiang Nguema Mbasogo has ruled the country since 1979 when he seized power in a coup. Equatorial Guinea has experienced rapid economic growth due to the discovery of large offshore oil reserves, and in the last decade has become Sub- Saharan Africa's third largest oil exporter. Despite the country's economic windfall from oil production resulting in a massive increase in government revenue in recent years, improvements in the population's living standards have been slow to develop. The discovery of large oil and gas reserves has contributed to dramatic economic growth. However, fluctuating oil prices have produced huge swings in GDP growth in recent years. Subsistence farming is the dominant form of livelihood. The country possesses undeveloped natural resources including gold, zinc, diamonds, and other base metals. Growth has remained strong in 2008, when oil production peaked, but slowed in 2009-10, as the price of oil and the production level fell. EFTA01105112 Gabon Gabon enjoys a per capita income four times that of most Sub-Saharan African nations. High income inequality has led to a large part of the population remaining poor. Oil was discovered in the early 1970s and it now accounts for more than 50% of GDP. Gabon continues to face fluctuating prices for its oil, timber, and manganese exports, and the global recession led to a GDP contraction. Gabon is one of the least densely inhabited countries in Africa, with a population that is estimated at 1,545,255 people. Almost all Gabonese are of Bantu origin. Gabon has at least 40 ethnic groups, with separate languages and cultures. The largest ethnicity is the Fang (about 30%). More than 10,000 native French live in Gabon, including an estimated 2.000 dual nationals. France is the dominant foreign cultural and commercial influence. 2.4.2. Economic Outlook and Opportunity. Each of the targeted countries exhibits important growth potential of more than 4% per annum, and each has sustainable debt and political stability. In addition, the targeted countries have a duly established legal framework for business that bolsters their potential for major investment programs. The African continent offers the best growth potential for the next 50 years. Most African countries have carried out structural reforms, including significant debt restructuring, and are now stimulating the development of their own economies. The fast developing economies of these emerging countries are economically and culturally well positioned to contribute to unleashing the growth potential of the African continent. Currently, commercial banking in West and Central Africa is dominated by foreign controlled institutions mainly involved in low complexity transactions (such as trade finance and Letters of Credit). Commercial banks react fairly slowly and the decision center is usually geographically far away from the countries about which such decisions are being made. In a number of "friendly" African countries (such as Senegal, COte d'Ivoire, Gabon, Equatorial Guinea, Angola), there is a demand for improved corporate banking services with low decision time and greater understanding of complex, structured transactions. In addition, there is growing demand from both the Governments and the private sector for structured financings in sectors such as electricity, infrastructure development and real estate. Structured transactions offer better security and higher up-front fees. Historically, one of the problems of these transactions is that traditional commercial banks have taken too long a time to make investment decisions. There is substantial opportunity to bridge and EFTA01105113 underwrite these transactions. In addition to securing comfortable up-front fees of 20%+ and a generous interest rate of 7-9% per annum, there will be opportunities to establish financial institutions to receive deposits / cash flows from the concerned companies or projects. Targeted industry sectors for the Applicant include the following: Financial • Commercial banking • Community banking • Micro finance • Insurance • Stock exchange Oil & Gas • E&P • Downstream Infrastructure • Toll roads • Dry ports • Airports • Airline • Airline services • Sea ports Electrical Power • Generation • Transportation • Distribution • Industrial • Building material Mining and Metals Real estate EFTA01105114  3. OWNERSHIP OF THE APPLICANT The Applicant will be managed by Mr. Jeffrey Epstein and wholly owned by a Virgin Islands limited liability company of which Mr. Epstein shall be the sole member. Mr. Epstein started his business career in 1976 at Bear Stearns & Company. He subsequently started his own financial consulting firm in 1981, which he eventually brought to the Virgin Islands in 1999, with the opening of Financial Trust Company, Inc. Mr. Epstein has been successfully providing consulting services to businesses for over 30 years. He draws upon combinations of resources to best serve clients' needs. He develops and maintains sophisticated expertise in the relevant areas of business available to the market at any given time. 4. EMPLOYEE TEAM The Applicant cannot be successful in the U.S. Virgin Islands without the support of a qualified staff. Therefore, the Applicant intends to hire multiple personnel to support its business plan. These positions will span a range of disciplines including the law, administration, analysts and technology. Some positions will be considered professional in nature while others may be strictly entry-level employees. 5. FINANCIAL PLAN A detailed financial analysis of the Applicant's expected profits and losses over the next five (5) years in the U.S. Virgin Islands has been included as Appendix 37 of the Application. 6. CORPORATE SOCIAL RESPONSIBILITY In addition to its contribution of $3,000 per year to the Territorial Scholarship Fund, the Applicant is committed to donating $50,000 per annum to local charitable causes. EFTA01105115  APPENDIX 3 Financial Ballistics Trust is a Delaware statutory trust that was formed in Delaware on November 23, 2011. The sole owner of Financial Ballistics Trust is Financial Ballistics, LLC. a United States Virgin Islands limited liability company formed on November 23, 2011, which is solely owned by Mr. Jeffrey Epstein. See organizational information below. Financial Ballistics Trust EIN: To Be Provided upon Receipt Place of Business: U.S. Virgin Islands Resident Agent in the U.S. Virgin Islands: Kellerhals Ferguson LLP, 9100 Havensight Port of Sale, Ste. 15-16 St. Thomas, VI 00802 Financial Ballistics, LLC EIN: To be Provided Place of Business: U.S. Virgin Islands Resident Agent in the U.S. Virgin Islands: Kellerhals Ferguson LLP, 9100 Havensight Port of Sale, Ste. 15-16 St. Thomas, VI 00802 We have included the following documentation for the entities where appropriate: Certificate of Trust (attached to this Appendix 3) Articles of Organization for Financial Ballistics, LLC (See Appendix 17) We are awaiting issuance of the Certificate of Existence for Financial Ballistics, LLC and the Certificate of Authority for Financial Ballistics Trust and will submit them upon receipt. EFTA01105116  Delaware PAGE I 'The First State I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF STATUTORY TRUST REGISTRATION OF "FINANCIAL BALLISTICS TRUST", FILED IN THIS OFFICE ON THE TWENTY-THIRD DAY OF NOVEMBER, A.D. 2011, AT 2:36 O'CLOCK P.N. icomyvinuirocksectoolyao:Ime 5070373 8100 AUTHEN C ION: 9178856 111227033 DATE: 11-23-11 You may verify this certificate online at corp.dolaware.gav/auchver.ststml EFTA01105117  State of Delaware Secretary of State Division of Corporations Delivered 02:36 PM 11/23/2011 FILED 02:36 PM 11/23/2011 SRV 111227033 - 5070373 FILE CERTIFICATE OF TRUST OF FINANCIAL BALLISTICS TRUST This Certificate of Trust of Financial Ballistics Trust (the 'Trust") is being duly executed and filed by the undersigned, as Trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del.C. sec. 3801 et seq.). 1 The name of the statutory trust formed by this Certificate of Trust is FINANCIAL BALLISTICS TRUST. 2. The name and business address of the Delaware Trustee of the Trust in the State of Delaware is The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. 3. This Certificate of Trust shall be effective as of the date of filing by the Delaware Secretary of State. IN WITNESS WHEREOF, the undersigned, being the Trustee of the Tru has executed this Certificate of Trust as of NOVEMBER 23, 2011. effrey Epstein The Corporation Trust Company, a Delaware co n, as Delfiwar Trust • .s\ By: Name. chwartz alikk • Its: Assists Vice President EFTA01105118  APPENDIX 17 ARTICLES OF ORGANIZATION EFTA01105119  ARTICLES OF ORGANIZATION OF FINANCIAL BALLISTICS, LLC I, the undersigned natural person of the age of eighteen years or more, acting as organizer of a limited liability company under the Uniform Limited Liability Company Act, Chapter 15, Title 13, Virgin islands Code ("Uniform Limited liability Company Act"), do hereby adopt the following Articles of Organization for such limited liability company: ARTICLE ONE NAME, ADDRUIAND PRINCIPAL OFFICE Name and Address 1. The name of the limited liability company shall be Financial Ballistics, [,LC (the "Company"). The mailing address of the Company shall be 9100 Havensight„. Port of Sale, Suite 15-16, SL 'Thomas, U.S. Virgin Islands 00802. The physical address-of the Company shall be 9100 liavensight, Port of Sale, Suite 15-16, St. Thomas, U.S. Virgin Wands 00802. Principal Office 2. Me principal office and permanent address for the transaction of business of the Company shall be the address stated in Paragraph 1 of these Articles as the physical address of the Company. Resident Agent and Office 3. 11w mailing address of the Company's initial designated office is 9100 Havensight, Port of Sale, Suite 15-16, St. Thomas, US. Virgin Islands 00802. The physical address of the Company's designated office is 9100 Havensight, Port of Sale, Suite 15-16, St. Thomas, U.S. Virgin Islands 00802. The name of its initial resident agent at such address is Kellerhals Ferguson liP. The business address of the resident agent and the physical address of the designated office are identical. ARTICLE TWO PURPOSE The purpose for which the Company is organized is to engage in any and all lawful business for which a limited liability company may be organized under the Uniform limited Liability Company Act and the other laws of the US. Virgin islands. The foregoing paragraph shall be construed as enumerating both objects and purposes of this company, and it is hereby expressly provided that the foregoing numeration of specific EFTA01105120  purposes shall not be held to limit or restrict in any manner the purposes of this Company otherwise permitted by law. ARTICLE THREE DURATION AND CONTINUITY The period of duration of this company shall be perpetual. No member or manager shall have the power to dissolve the Company by his or her independent act of any kind. ARTICLE FOUR ORGANIZbIt The name and address of the organizer of this Company is: Erika A. Kellerhals Mailing Address: 9100 Havensight, Port of Sale, Suite 15- 16, St. Thomas, U.S. Virgin Islands 00802 Physical Address: 9100 Havensight, Port of Sale, Suite 15- 16, St. Thomas, U.S. Virgin Islands 00802 ARTICLE FIVE MANAGEMENT The Company shall be member managed. ARTICLE SIX CAPITAL The Company shall begin business with capital in the amount of One Thousand United States Dollars (US$L000.00). ARTICLE SEVEN LIMITATION OF LIABILITY No manager of the Company shall be liable to the Company or its members for monetary damages for an act or an omission in such manager's capacity as a manager, except for liability of a manager for (i) a breach of a manager's duty of loyalty to the Company or its members, (ii) an act or omission not in good faith that constitutes a breach of duty of a manager to the Company or an act or omission that involves intentional misconduct or a knowing violation of the law, (iii) a transaction from which a manager received an improper benefit, whether or not the benefit resulted from an action taken within the scope of the manager's position, or (iv) an act or omission for which the liability of a manager is expressly provided for by an applicable statute. If the Uniform Limited Liability Company Act or other applicable law is amended to authorize action further eliminating or limiting the liability of managers, then the liability of any manager of the Company shall be eliminated or limited to the fullest extent permitted by the Uniform Limited Liability Company Act or other applicable law, as so amended. 2 EFTA01105121  Any repeal or modification of the foregoing paragraph by the members shall not adversely affect any right or protection of any manager existing at the time of such repeal or modification. ARTICLE EIGHT MEMBER LIABILITY No member of the Company shall be liable for the debts and obligations of the Company under Section 1303, Subsection (c) of the Uniform Limited Liability Company Act. ARTICLE NINE SEVERABILITY If any phrase, clause, sentence, paragraph, or provision of these Articles of Organization is held to be void or illegal, then it shall not impair or affect the balance of these Articles, and the undersigned Organizer of the Company does hereby declare that he would have signed and executed the balance of these Articles without such void or illegal provisions. IN WITNESS WHEREOF, the undersigned person has hereunto set her hand as Organizer of the Company this the 23rd day of November, 21111,___ IN THE TERRITORY OF THE UNTIED STATES VIRGIN ISLANDS UNITED STATES OF AMERICA BEFORE ME, the undersigned authority, on this 23rd day of November, 2011, personally appeared Erika A. KellerhaLs, who, being by me first duly sworn, declared that she is the person who signed the foregoing document as the Organizer of the Company and that the statements contained in these Articles of Organization a rue. in an for the Territory of the United Staibs4irgin Islands My commission expires: 917111.3 GINA MARIE BRYAN NOTARY PUBLIC NP 069-09 COMMISSION EXPIRES09/2612013 ST. THOMAS/ST JOHN, USVI 3 EFTA01105122  APPENDIX 18 CERTIFICATE OF EXISTENCE EFTA01105123  Corp No. 581840 GOVERNMENT OF THE VIRGIN ISLANDS OF THE UNITED STATES CHARLOTTE AMALIE, ST. THOMAS, VI 00602 CERTIFICATE OF EXISTENCE go gll go Whom these tOreOent0 Shall Come: 1, GREGORY IL FRANCIS. Lieutenant Governor of the Virgin Islands do hereby unify that I am, by virtue of the laws of the Virgin Islands, the custodian of the corporate records and the proper officer to execute this certificate. 1 further certify that the records of this office disclose that FIN A NC1AI. BALLISTICS, ILC limited Liability Company wa duly registered to conduct business in the Territory on November 23, 2011 and has a legal existence as a Limited Liability Company so far as the records of this office show. Witness my hand and the seal of the Government of the Virgin Isla