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How ENSHIELD® Offers Levels of Protection while Providing for Wealth Creation

1. ENSHIELD® Program is implemented for the physician group
2. The Corporation’s Accounts Receivable (A/R) are pledged to the lender limiting attractiveness to a potential creditor
3. The Lender funds an insurance or annuity contract, as these vehicles are often provided a level of protection from creditor attachment in many states
4. The insurance or annuity contract is issued in the individual physician's name, effectively removing the asset from the Corporation, providing a level of protection from exposure
5. The Corporation pays simple interest on its loan obligation
6. The physicians continue working, the Corporation continues billing, and the Corporation's accounts receivable continue to be replenished, only now various levels of protection may exist

Net Result of ENSHIELD® Protection:
In the event of a major creditor claim, the lender could receive the accounts receivable, paying down the loan, and withdrawing any shortfall from the participant's insurance or annuity contract. The contract could then be released to the individual physician participant. Because the insurance or annuity contract may offer a level of protection from creditor attachment, the physician may have insulated his or her accounts receivable. (see note below)

Net Result of ENSHIELD® Wealth Creation:
The loan is being paid by the Corporation on a simple, interest-only basis and the insurance or annuity contract, net of costs, is growing at a compounded rate of interest. Compounding allows for the accelerated growth of the contract, creating an opportunity for wealth accumulation from previously dormant assets.

NOTE: The level of asset protection varies from state to state. Please consult your tax or legal advisor regarding the rules which govern your state. In the event of an outside creditor claim that could constitute an event of default under the loan documents, asset protection with respect to the cash value of the insurance policy or annuity contract may only be available to the extent that the lender enforces its security interest against the accounts receivable rather than invades the cash surrender value of the insurance policy or annuity contract. The lender may choose to enforce its security interest by invading the cash surrender value of the insurance policy or annuity contract. In such case, any asset protection of the accounts receivable (against outside creditor claims) derived from the lender’s security interest in the accounts receivable may be lost.