Thank you for your interest in Secondary Market Annuities.

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Rodger West
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1 BUYER'S GUIDE Higher Yield Fixed Term Annuities Thank you for your interest in Secondary Market Annuities. This Guide is offered by the DCF Exchange, LLC to help you decide if higher yield fixed term payments are right for you. Please contact your advisor with any questions. Brought to you by: (C) 2016 DCF Exchange, LLC,

2 About DCF DCF Exchange buys cash flows backed by annuities that originate from structured settlements. We distribute these high credit quality payment streams directly to institutions and through select agent relationships to end retail purchasers. Secondary Market Annuities at a Glance: Secondary Market Annuities ("SMA") are also known in the marketplace as In Force Annuities, Assured Annuities and Discounted Annuities.' These are all various names for the same discounted, guaranteed payment receivable created when individuals transfer payments due under structured settlements. Structured settlements are legally binding awards that settle disputes in return for monetary compensation. An annuity contract issued and guaranteed by some of the highest rated insurance companies in the world- carriers like Met Life, Transamerica, Berkshire Hathaway, Prudential, and John Hancock- is what backs the payment stream you purchase. Not Your Typical Annuity While SMAs are commonly referred to as annuities - an investment product typically associated with retirement - SMAs are not just for retirement. For example, lump sum payments are frequently purchased by conservative purchasers of any age, who prefer not to expose their savings to market volatility. Many purchasers use SMAs to supplement their immediate income needs or to meet an income objective in retirement. Others purchase SMAs in self-directed IRA accounts for their retirement, or for their heirs. INCOME NOW Immediate Income cases start regular payments within a few years and are perfect for turning assets into income - guaranteed. INCOME LATER Deferred income cases provide great alternatives for IRAs, younger investors, and savers with a target date in mind. INCOME OPTIONS Lump Sum SMAs provide great options for inheritance, capital replacement, IRAs, gifts, charity, portfolios, pensions, and a host of other applications. Income Now Income Options The available payments come in immediate and deferred income streams, as well as short and long term lump sums. Each category offers a different benefit that may suit a specific purchaser s needs. Income Later

3 Higher Yield Lower Price Lower Yield Higher Price Using SMAs: SMAs are like bonds - as yields go up, prices go down. A payment stream at a 5% yield costs less than the same payment stream at a 4% yield. Like bonds, SMAs can be used for fixed income in individual accounts and in qualified IRA accounts. In addition, many astute institutions use these assets to achieve a stable yield in their pension and endowment portfolios. All Good Options for Your Money With income now, income later, and income options, Secondary Market Annuities offer a higher yield than comparable guaranteed assets. Because the yield is higher, the price is lower. Simply put, you get more income for your money with SMAs. In addition to the lower upfront cost, SMAs cost less over time. There are no hidden asset management fees and no account fees that drag down performance. From the start, you know that the only costs associated with ownership of an SMA are nominal charges for account servicing and IRA custodial fees if you are using qualified funds. SMAs are a refreshingly simple asset to own and are guaranteed to pay you or your heirs. Owning and administering SMA payment streams is simple and adds stability to any portfolio. In sum, SMAs offer a superior yield, and, when compared to annuities with income riders, immediate annuities with period certain guarantees, certificates of deposit, and fixed annuities, SMAs consistently outperform them.

4 The Available Inventory Available payments are shown on a web-based inventory system and on amortization schedules. The inventory and the schedule clearly show the amount and frequency of payments, and the estimated purchase price and closing date. An example offering may be : [1] Met Life, Immediate Income, Guaranteed Payments, Coming Soon 120 monthly payments of $1,000 from 8/1/2016 to 7/1/2025, Estimated Purchase Price: $99,102.51, Priced On 7/1/16, 4% effective rate Inventory Explanation: Coming Soon, In Stock or Reserved Coming Soon An SMA that is marked as "Coming Soon is in the court approval process. The case may not be court approved, and therefore, it may not become available for purchase. You may reserve a Coming Soon SMA, but the transaction may take 30 days or more to close. In Stock An SMA that is marked as "In Stock is ready for immediate sale. The In Stock SMAs have been thoroughly reviewed, and the court transfer and approval is complete. Reserved An SMA that is Reserved has been sold to another party, but the transaction has not yet closed. We do accept backup offers, so we encourage you to keep an eye on Reserved SMAs. The Purchase Process Secondary Market Annuities are available to purchasers of any age, and purchasers may use cash or qualified (IRA) funds. The estimated purchase price and Priced On date is an initial estimate. Cases are reserved with a "Purchase Offer" form detailing the case and the Purchaser. There is no deposit required to reserve a case and no cost if a case is not court approved. Once a case is ready to close, the Closing Book is prepared showing the exact closing price and date, together with the transfer documents and assignment to the purchaser. Purchasers are provided an opportunity to review the entire Closing Book prior to initiating the wire transfer of the purchase price. [1] This is a hypothetical illustration - not an offer of an actual SMA. The purchase of an SMA is an important and long-term financial decision. Please review this Buyer s Guide carefully for more detailed information.

5 Seller Sells Payment to DCF Court Approves & Carriers Acknowledge Sale to DCF End Purchaser Buys from DCF Transferring Payments The transfer process follows a rigorous legal procedure and must be in compliance with IRS regulations, state specific transfer statutes, and a court-ordered assignment. DCF manages the entire process and distributes these higher yield, guaranteed fixed term annuity payments only after completing he legal review process. We acquire from a wide range of financial intermediaries. Why the Court ordered transfer process? Due to IRS regulations, structured settlement recipients cannot directly surrender their annuities with the insurance carrier. Instead, they must sell future payments at a discount in a court-ordered transfer procedure that complies with IRS regulations. DCF engages a third party legal review team to provide superior due diligence in the purchase process with each payment stream. The review is independent of both the seller and the insurer and verifies all of the supporting documentation to ensure that the payment stream is conveyed absolutely and irrevocably. Due Diligence and Legal Review The review includes a thorough examination of the underlying court order and supporting documents, verification that the cash flow is free from any liens and attachments, and review of the transfer and assignment documents. A legal review opinion letter with case-specific findings is included in each Closing Book. The Closing Book is supplied before funding the transaction to allow ample time for review. Closing Book The Closing Book will generally contain all of the following items: 1. Purchaser documents, including Absolute Assignment to Purchaser, Purchaser Servicing Agreement, Original Purchase Offer, and Cash Flow Amortization Schedule; 2. Case and DCF Internal Documents, including Split Case Summary (If Applicable) and Internal Release Acknowledgement; 3. Legal, Court, and Carrier Documents, including Legal Review Letter, Transfer Acknowledgement or Stipulation Agreement, Court Order, and Original Confirmation of Benefits Letter; and Purchase Price and Closing 4. Seller, Intermediary, and DCF Agreements, including Purchase and Assignment Agreement to, and Original Selling Agreement.

6 Payment Servicing: GoldStar Trust Convenience, Transferability, Safety The DCF Exchange has engaged GoldStar Trust Company of Canyon, Texas as its third party payment servicer. SMA payments from carriers are received by Gold Star Trust Company and distributed by direct deposit or check to purchasers. Payment servicing offers several benefits, including the following: 1. Easy administration of estate and probate for heirs, successors and beneficiaries; 2. Easy payment transferability after purchase; and 3. Easy account administration for bank and address changes. About GoldStar Trust Company GoldStar is the Trust-only branch of a $4B Texas bank. GoldStar is also a national leader in self-directed IRA administration and has a market leading role in administering selfdirected IRAs to invest in Secondary Market Annuities. Additionally, GoldStar is the servicer on bonds and securities instruments in a variety of asset classes and handles thousands of customer accounts professionally and seamlessly. GoldStar s lengthy experience in Secondary Market Annuities and fantastic customer support make them the clear choice for DCF Exchange's payment servicing and Self- Directed IRA administration needs. DCF Exchange, LLC Thanks for your interest in Secondary Market Annuities. Contact your advisor today for current inventory or to reserve a case. Or, to learn more, visit DCFExchange.com or call (877)

7 Risks As with any investment, there are certain risks associated with SMAs. Likewise, because everyone s situation is distinct, there are many considerations, including time horizon and risk tolerance, which each purchaser must weigh in his or her decision process. The risks normally associated with SMAs are as follows: Secondary Market Annuities are subject to interest rate risk. Market interest rates may rise while the return of Secondary Market Annuities remains fixed. There are several ways to hedge against this risk, including but not limited to, laddering of different assets, and limiting exposure to any single asset class. Secondary Market Annuities cannot be surrendered directly with the insurance carrier. DCF Exchange can facilitate the resale of payment streams for purchasers, at market rates at the time of such resale, but DCF cannot guarantee the timeline, completion, or pricing of resales. Secondary Market Annuities are fixed rate receivables. The strength of a payment stream is directly related to the financial strength of the insurance company that issues that payment. All references to Guarantees are subject to the claims paying ability of the individual insurance carriers. Secondary Market Annuities are not deposits and are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other federal government agency. In the event of carrier insolvency, State Insurance Guarantee Associations may provide protection to purchasers of Secondary Market Annuities, however, DCF Exchange makes no representation or warranty in this regard. Furthermore, Secondary Market Annuities are not securities and DCF Exchange LLC, does not sell or offer any securities. The materials herein are not a recommendation to buy or sell a Secondary Market Annuity. DCF recommends that you consult with your financial and tax professionals to assist with your decisions regarding investment suitability and to understand the possible tax implications associated with the purchase of a Secondary Market Annuity. Purchase Price and Closing The DCF Exchange is the premier wholesale resource for Secondary Market Annuities. DCF works with advisors nationwide in this little known, high yield marketplace, bringing quality payment streams to investors and delivering a unique competitive advantage to top advisors.

FAQ: Secondary Market Annuities. Frequently Asked Questions About This Little Known High Yield, Fixed Income Safe Money Alternative

FAQ: Secondary Market Annuities Frequently Asked Questions About This Little Known High Yield, Fixed Income Safe Money Alternative What Are SMAs? SMAs Are Guaranteed Receivables Secondary Market Annuities