stategic forecasting inc. i llustration of j oint v enture & p roposed r estructuring draft of...

Stategic Forecasting Inc.

ILLUSTRATION OFJOINT VENTURE & PROPOSED RESTRUCTURING

DRAFT OF 7/21/2011CONFIDENTIALPRIVILEGED COMMUNICATIONATTORNEY WORK PRODUCT

Stratcap Funds

2

Strategic Forecasting, Inc.

Shareholders

Stratfor Enterprises, LLC

Stratcap Management

Company, LLC

Stratcap Funds

SM/Stratfor Partners, LLC

GeorgeFriedman

18,000Class A

72,000Class A5,000

Class A

180,000Class A

Tax Legend

Corporation

Partnership

Multiple Entities & Individuals

Disregarded Entity

Various%

100%

Stratcap Holdings, LLC

(“Newco”)

Shea Morenz

20,000*Incentive

Units

5,000Class A

20,000Class A

1,802*Incentive

Units

* Incentive Units are subject to forfeiture

3

Circular 230 Notice

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.