Centrila Ltd – An Overview

Centrila Ltd is committed to ensuring that all of its clients and business associates have as much
information as possible at their disposal in connection with the financial security and capitalisation
of the company. The purpose of this document is to offer a deeper insight into the business and
financial model the company works to and the provisions undertaken by the company to provide
its clients with comfort that it will endeavour to protect their interests.
There are three key areas which this document wishes to address:

1. Regulation and how this fits with the Cenoption product
2. The Centrila Business Model – Financial Security and Appropriate Capitalisation
3. Centrila’s Business Vision and Operating Standards

1. Regulation

The Cenoption product is not currently a regulated product. Centrila is relying on Queen Counsel’s
opinion as to whether the product is within the realms of being a ‘financial services’ product,
which, if this were the case, would mean that it would be subject to FSA rules and regulation.
Queen Counsel’s opinion is clear that the product is a ‘put option’ contract which is not currently
subject to this regulation. Centrila offers only this ‘put-option’ contract; it does not offer a
guarantee, a warranty or any form of insurance.

The Cenoption is therefore unregulated not through choice but by virtue of the type of product it is.

However, while not being officially regulated, Centrila has self imposed a number of stringent
restrictions and operating practices to such a level whereby, in the event the product should be
brought under the auspices of a regulator in the future, Centrila believes the transition should be a
formality given the standards adopted from day one by the company. Please see the sections
below for further details of this.

2. Centrila’s Business Model

Centrila has been launched in 2009 following extensive research, planning and product
development. The cornerstone of Centrila’s product is meticulous research carried out in relation
to house price movements both in the past and those expected in the future.

Actuarial studies and statistics have been relied upon to model the level of capital adequacy
required in order for Centrila to be able to handle the most stringent of ‘stress-test’ scenarios
regarding future property price fluctuations and the potential liabilities these fluctuations would
create.

Centrila is able to confirm that based on these assumptions and model it will be maintaining
capital adequacy which will allow the company to continue trading for the next thousand years with
less than a 1% chance of the company failing during this time – as conceptually projected by
these actuarial studies.

The actuarial studies and statistics used reviewed a very wide ranging set of different parameters,
including but not limited to the impact of the following:

- Historical movements and trends in the past 25 years across a large range of differing house
price indexes (on both a micro and macro level) and anticipated trends for the forthcoming
30 years. Over 1000 different models and simulations were tested across these ranges as
part of determining what capital reserves are required for such a product.

- The spread of assets (and therefore risk) by including cross sections of all types of properties
across a range of different geographical areas and locations.
- The differing movement patterns of homeowners, be they owner occupier or investors, based
on different particular economic cycles and house price trends, again across a range of
differing areas.

It is these actuarial assumptions and calculations that underpin this product. By combining all of
these and staying within their parameters Centrila is confident that it will always have sufficient
capital cash reserves and the administrative capacity to issue 5000 Cenoptions on a monthly
basis. Centrila will continue to increase its capital reserves in direct proportion to the value of
properties upon which it issues Cenoption contracts, and will employ the services of leading firms
to monitor this position in the interests of total transparency. Further capital funds may also be
available in the future through a combination of individual and/or corporate investors on an
ongoing basis.

3. Centrila’s Business Vision and Operating Standards

It has taken Centrila a considerable time to bring this product to the market, Centrila was not
prepared to launch until the very last detail had been covered, checked and then checked again.
Similarly, the company has a long term strategy which it is constantly working towards.

Centrila believes that property should almost always be regarded as a medium to long term
investment proposition, and accordingly it has applied this philosophy to its own business.
However, in order to be a successful company with sustained longevity, Centrila believes it is
essential that the building bricks and infrastructure of the company are firmly in place from the
outset. Centrila has therefore enlisted the services of leading professional firms to work alongside
it to ensure its business vision and goals are both realistic and ultimately achieved.

All capital reserves will be held in trust against any future obligations and liabilities which the
company may have as a result of clients exercising their options. The trust account will be
independently audited on a regular basis to ensure that it contains sufficient capital as per the
actuarial recommendations. This two pronged approach thereby gives clients reassurance that
Centrila is operating to the highest business standards and in the best interests of all concerned.

Summary

Centrila has invested a large amount of time, money and professional expertise in generating a
unique product intended to meet the needs of many property owners during changing economic
climates. This document provides a brief insight into how this has been possible and aims to
demonstrate that Centrila is going to great lengths to ensure that its business model is as robust
and well grounded as feasibly possible.

The Board of Directors