Training Document No. 54

Self-Liquidating Loan Program

What is a Self-Liquidating Loan?

A Self-Liquidating Loan (SLL) is a private financial transaction between two participants that will not be repaid until a list of specific criteria is satisfied. The self-liquidating loan proceeds can be utilized in a business venture to acquire start-up capital and to fund normal business activities like purchasing inventory. It is a short-term working capital loan that is repaid from the liquidation of inventories. Early in the twentieth century, commercial banks made only short-term loans, and self-liquidating loans were a common variety.

ValQuest Ads Inc. has decided to fund the business utilizing two Self-Liquidating Loan Programs. The two methods of funding are the AMF Self-Liquidating Loan Program and the PV Self-Liquidating Loan Program. The Annual Membership Fee Self-Liquidating Loan (AMF-SLL) provides funding for the Annual Membership Bonus inventory of Value Certificates.

After paying the Annual Membership Fee (AMF) by filing the AMF-SLL Agreement, the member may receive more Value Certificates by loaning a small amount of money to ValQuest Ads using the PV-SLL Program.

Value Certificates are created in the amount of the SLL and are placed into a Value Certificate (VC) Account. The VC Account will increase the Potential Value of the business. The delivery of Value Certificates to Members will liquidate the AMF-SLL and the PV-SLL. Value Certificates are one of ValQuest Ads inventory items.

The total amount of the AMF and PV Self-Liquidating Loans is converted into Advertising Units (AU). AU’s are the smallest unit of measurement utilized to determine the size and scope of an advertising campaign. A percentage of the AU’s are used to calculate a member’s bonus and commission checks.

The Alpha Personal Commission (APC) is funded from the Alpha Account. All participating Distributors will be compensated by the Alpha Account. As they add new participating Distributors to their organization, they will also be compensated from the Beta Account. ValQuest Ads compensates our Distributors for supporting our Authorized Redemption Centers (ARC) as they redeem the Value Certificates.

The PV-SLL begins at the $50 amount. ValQuest Ads will then increase the Potential Value of the loan, by creating an inventory of Value Certificates. ValQuest Ads will reward the participant with the repayment of the AMF-SLL with Value Certificates and an Alpha Personal Commission check. Value Certificates can be redeemed as a percentage of the cost of goods and services at our Authorized Redemption Centers.

PV SLL Program Rules and Regulations

There are six PV Self-Liquidating Loan (SLL) categories.

A Distributor may select their PV SLL category.
A Member may only collect bonuses and commissions up to their AU Account category amount from their organization.
Distributors may increase their original PV SLL amount during a monthly advertising campaign.
A Distributor must have a minimum of one Qualified Distributor enrolled on Generation-One to receive the BOC from Generation-One.
A Member must have a minimum of two Qualified Distributors enrolled on Generation-One to receive the BOC from Generation-Two.
A Member must have a minimum of three Qualified Distributors enrolled on Generation-One to receive the BOC from Generation-Three.
Distributor will receive their AMB of Value Certificates and the APC.
Members will receive the G-1, G-2, and G-3 BOC during the second phase.

AU SLL CATEGORY CHART

Category	AU
1	50
2	100
3	200
4	300
5	400
6	500

Self-Liquidating Loan Flow Chart

AMF SLL

The Annual Membership Fee (AMF) amount is $20.00.

VQA will convert and deposit the AMF amount into a Value Certificate Account.

The Member will receive $20 in Value Certificates.

The Member’s Value Certificates received will liquidate the AMF SLL.

A Member may personally redeem the Value Certificates for products and keep “in their pocket money.” A Member may sell the Value Certificates to customers and recover the AMF cost.

PV SLL

The PV SLL amount starts at $50.00 and may increase to $500.00.

The Member’s selected amount is used to create an equal number of Value Certificates.

The Value Certificates are then placed within a Value Certificates Account.

The Member will receive Value Certificates in the same amount as their PV SLL.

VQA will convert the PV SLL into Advertising Units (AU) and deposit the PV into an AU Account.

The total Advertising Units are divided and deposited into the various compensation accounts.

Alpha Account

The Alpha Account funds the Alpha Personal Commission.

Each participating Member will earn an Alpha Personal Commission.

The Member may also receive a Beta Organization Commission for their organization’s participation.

Beta Account