Introduction
Balanced Portfolio Product
Special Assets Management

Introduction

The Coleridge Group is a registered investment advisory firm whose sole-proprietor is Gary Gibbons. Mr. Gibbons is also the Chairman of the Board at Hanseatic Group, Inc. The Coleridge Group provides a range of financial and investment advisory services. Those services are provided to a range of clients, including:

• Taft Hartley Pension Plans
• ERISA Plans
• Agencies of Municipal Government
• Charitable Foundations
• Individual Retirement Funds
• Individual Trust Accounts
• High Net Worth Individuals

The firm provides a range of services to these clients. These services are:

• Balanced Portfolio Management
• Special Assets Management
• Valuation and Financial Advise Relating to individual or portfolios of Conduit Issued Municipal Debt
• Valuation of Securities and Litigation Support

The Coleridge Group co-operates with Hanseatc Group, Inc. in the marketing of the two firm's products, in the performance of qualitative and fundamental securities analysis, in assessing market strategy and in the performance of fixed income securities analysis. The firms do not share client transaction information or trade and execution information. Nor do the firms share back office facilities or processes.

Below you will find several sections each of which will provide details relevant to specific to different aspects of The Coleridge Group' products, its history, or its Principal.

Balanced Portfolio Product

Balanced Portfolio Philosophy and Description
Balanced Portfolio Performance
Portfolio Management and Investing Experience

Gary Gibbons, the Sole-Proprietor of The Coleridge Group, is experienced in portfolio management, security selection and security trading. Over the years he has engaged in a wide range of investing activities. Over the past __ years the services have been provided through the auspices of The Coleridge Group. Some examples of investing activities that Mr. Gibbons and/or The Coleridge Group have engaged in are found below.

1. Managed stock portfolios for various clients. For example:

   • Physician's Mutual Insurance Company

   • Home Federal

   • Billie Jean King

   • Pain Webber Trust

   • New Kaiser VEBA

   • Baker family funds

   • Kellogg family funds

   • "Tennessee" Ernie Ford

   • Merle Haggard

   • Everly Brothers

2. Managed fixed income portfolios for various clients. For example:

   • Agyros Foundation

   • Bank of Bermuda

   • Physician's Mutual Insurance Company

   • Home Federal

   • Pacific Saving Bank

   • Imperial Mortgage

   • Pain Webber Trust

   • Billie Jean King

   • New Kaiser VEBA

   • Baker family funds

   • "Tennessee" Ernie Ford

   • Merle Haggard

   • Everly Brothers

Special Assets Management

Philosophy and Description
Special asset management is not a specifically defined product but rather a range of services that represent solutions to specific client problems in the areas of investment. Examples of these services are:

1. Managing illiquid, micro-cap, or non-trading positions for ERISA, Taft Hartley, or other significant investors.

2. Developing and implementing strategies to hedge interest rate or equity market exposure.

3. Developing and implementing strategies to "immunize" identifiable future liabilities.

4. Representing ERISA, Taft Hartley, or other significant investors on corporate boards of directors.

5. Representing ERISA, Taft Hartley, or other significant investors in corporate restructurings.

6. Representing ERISA, Taft Hartley, or other significant investors in secondary market transactions.

7. Conducting "due diligence" for ERISA, Taft Hartley, or other significant investors on existing or contemplated positions.

Performance
Since these services are directed at solving unique problems we do not provide performance data. However, we will provide references so that our abilities in this area can be researched.

Special Assets Management Experience
We have managed, designed or advised on quantitative strategies or due diligence analysis for various clients. For example:

Bass Brothers Enterprises
New Kaiser VEBA
Public Service Company of New Mexico
Phil 4:12 (Holding company for Howard Ahmanson, primary owner of Home Savings and Loan)
Pacific Savings Bank
Imperial Mortgage
San Clemente Bank
The Minnesota Laborer's Pension Fund
The Washington D.C. District 6 Laborers Council
Saint Paul Port Authority
Miller & Schroeder Financial Co., Inc.

Advised management and major shareholder of Kaiser Resources, Inc. (OTC, $120 million in market capitalization). Represented the The NewKaiser VEBA and the Pension Benefit Guarantee Corporation in secondary offering done with Salomon and L.H. Friend, Weinress & Frankson. The nominal value of the transaction was $ ____________ .

Advised The New Kaiser VEBA on the sale of _________ shares of common stock in Kaiser Ventures back to the company. The nominal value of the transaction was $ ____________ .

Advised Alatenn Corporation (ASE, $120 million in market capitalization) on purchase of Colony Energy

Managed and advised Carter-Miot Engineering on ESOP creation and sale

Advised on restructure or recapitalization for:

Pacific Midwest Gas Corporation
Hanseatic Group, Inc.
US Sports company
TennisAmerica, Inc.
Century Technology
Saint Paul Port Authority
Maryland Energy Financing Authority - Pencor
Richmark Corporation

Acted as the Corporate Strategist for:

Pacific Midwest Gas Corporation
Windsor Energy Corporation
Uni-Net, Inc.
Richmark Corporation