ESTABLISHMENT OF A NEW RENEWABLE ENERGY, WATER, INFRASTRUCTURE HUMANITARIAN FUND

PREPARED BY D. MAGUA 15TH MARCH 2010

INDEX

BACKGROUND INVESTMENT PROPOSAL PARTIES FUND STRUCTURE FUND DESCRIPTION FUND MANAGER FUND DETAILS FUND PROJECTS ROI CONSIDERATIONS EXIT STRATEGY

BACKGROUND

The African and South African markets are experiencing shortages of supply of electricity, basic infrastructure and water. The sectors of the population most affected by this are the poorer sector as the costs for supply have risen dramatically due to these shortages.

The need for power and clean water is a basic Humanitarian right.

We have identified various projects within South Africa and Southern Africa where we can assist in developing clean power and water supply for the benefit of the poor.

By funding these Humanitarian Projects we will ease the living conditions of millions of Africans, create employment and improve their over all lifestyle and life span.

INVESTMENT PROPOSAL

There is a current opportunity to create a private fund of USD 5 Billion to cater for humanitarian projects

The proposed fund will be established in Mauritius and will be utilised to fund Renewable Energy, Water and Infrastructure projects that can be defined/described as Humanitarian in nature.

This document sets out the structure and operation of the proposed fund

The investor will receive equity returns This document seeks to set out the proposed fund structure for

consideration and approval by both Serendipity by Design LLC and their Investor Party (“the Investor”)

PARTIES

The parties to the proposed fund will be as follows:

Parties

The NEWCO shareholding for the Fund Management Company will be held 50:50 by Serendipity by Design LLC and a Mauritian Company comprising the operational management team of the Fund. (It is envisaged at this stage that both Desmond Magua and John Coetzee of Thuthuka Group will be part of the new Mauritian Company and will both operate predominantly out of Mauritius to enable the Fund to operate independently). The NEWCO Fund Manager (“NFM”) will have a 20% shareholding in the NEWCO Renewable Energy, Water and Infrastructure Humanitarian Fund (“NF”) and the remaining 80% shareholding will belong to the Investor.

The NF will in turn be the vehicle in which the funds are invested and which will hold the investments and loans to projects.

FUND STRUCTURE

1. Investor issues Banks with a Bank Guarantee

2. Banks make facilities available to NF3. NF makes investments and loans

Investor

Banks and Financial

InstitutionsNF

Various Project

Companies

FUND DESCRIPTION

The Fund will be established in Mauritius. The Fund will make both Equity and Debt investments

into projects over a maximum 20 year period per transaction.

The Fund will only invest into Renewable Energy, Water, Infrastructure and Humanitarian projects in Africa, South Africa and the Indian Ocean Islands.

The Fund will be a US Dollar denominated fund and all returns will be domiciled in US Dollars.

The focus of the fund will be to uplift communities in Africa, the alleviation of poverty, the creation of jobs and basic services.

FUND MANAGER

The FM will be a newly established business. The directors will be 2 members from Serendipity by Design LLC,

representing the Investor and 2 members from a newly formed company comprising the management team and represented by Desmond Magua and John Coetzee.

The FM team will also incorporate appropriately qualified staff including but not limited to a Chartered Accountant, Attorney, Actuary and Investment Officer.

The FM team will prepare all schedules and management information including all project analysis for the Investment Committee to approve.

The FM will invest all unutilised amounts in risk free vehicles until all funds have been drawn down and the fund closed.

The FM will receive fund management fees of 0,5% per annum on any unutilised amounts and 2% on all amounts drawn down to fund the various projects.

All costs associated with the day to day running of the fund will be accounted for out of the proposed fees above.

FUND DETAILS

DESCRIPTION DETAIL

Amount US Dollars Five Billion

Term 10-20 year funding periods

Stage of Investment Feasibility Stage to completion

Investment Instrument Acceptable Bank Guarantee for USD 5 Billion

Start Date May/June 2010

Jurisdiction Mauritius

FUND PROJECTS

The following projects will be incorporated in the fund as soon as the Investment Committee is established. Detailed investment sheets are available for the following projects.PROJECT NAME USD AMOUNTS

Amakhosi Biomass 360 million

Rondolog Biomass 1,305 million

Caledon Wind 950 million

Promethium Wind 950 million

Gingingluvu Water 500 million

Tandjiesfontein Water 70 million

Mzima Water 150 million

Botswana Water 80 million

Eastern Cape Water 45 million

Cape Town water 115 million

FIS Biofuels 115 million

TOTAL 4.6 billion

ROI CONSIDERATIONS

Debt returns are expected to be in the range of 2-5%

Equity returns are expected to be in the range of 10-15%

This results in a blended rate in the range of 4%-8%All the above calculations are based on the following

assumptions:1. All investments will be denominated in US Dollars2. All projects will have a Debt:Equity Ratio of 70:303. The exchange differential to South African Rand is

7:1

EXIT STRATEGY

Any unutilised funds not invested in projects by 31st December 2012 will be reviewed before agreeing to close the fund.

All funds invested can be refinanced to allow for exit mechanisms provided that the deal economics can sustain the new rate of finance and availability of market for refinancing.

All refinancing exits to be subject to a minimum of 12 months notice by the Investors.

All prepayments of finance to also be subject to 12 months notice and appropriate penalties.