EXECUTIVE SUMMARY. Investment Opportunity. Paradox Financial Solutions Inc.

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1 An innovative new system for Supply Chain Financing that is so disruptive that it will revolutionize the way in which practices in B2B trading relationships occur. has invented a system that revolutionizes supply chain financing. Paradox is the owner of proprietary intellectual property that enables the continuous issuance of Asset Backed Commercial Paper (ABCP) which is applied to provide early liquidity to suppliers for a discount. The discount is subject to our Indexed Pricing Model based on the Money Rate Index (CDOR) which eliminates all risks normally associated with the movement in interest rates. The amount of the discount taken from the Suppliers and the sharing of this discount with the Buyers and Investors results in dramatic increases in the financial performance of both the Buyer and Suppliers in every supply chain that adopts the Paradox Financial Solution. Market Opportunity Transaction volumes for supply chains in the North American market alone reach $15 Trillion annually and this represents a potential USD $15 Billion market opportunity for the Paradox Financial Solution. Unique Opportunity All searches confirm that there is no other program available in the marketplace that will cause such dramatic increases in Financial Performance with NO increase in transaction volumes. This Supply Chain Financing Solution has been designed for installation in Retail, Manufacturer and Wholesale Markets. Positive Results for Resellers (Retailers, Manufacturers or Wholesalers) (i) Increase Financial Performance without any Operating, Investment or technology risk. (ii) Reduces Management and Administrative costs. (iii) Increase in leverage for future acquisitions. (iv) Dramatic increase in Market Cap Values without increasing transaction volumes. (see Market Cap Chart) Positive Results for Suppliers (i) Reduces Financing costs. (see Financing Costs Chart) (ii) Reduces Management and Administrative costs. (iii) Releases equity employed to fund the credit extended to Purchasers. (iv) Dramatically Increases Shareholder Values Explosive Growth Potential The Paradox Financial Program when adopted by a single Reseller results in such a dramatic competitive advantage in the marketplace that it will force other Resellers to adopt the Program or suffer the consequences. 1

2 Increase in Market Cap Values Adoption of the Supply Chain Financing Solution will have a profound effect on the market cap values of participating Buyers. The chart below highlights the prospective impact on the market cap values of the companies listed: 52.5% 50.0% 47.5% 45.0% 42.5% 40.0% 37.5% 35.0% 32.5% 30.0% 27.5% 25.0% 22.5% 20.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% Sobeys Shoppers Loblaws Magna Best Buy Albertsons Walgreen Costco Omnicom Staples The above chart illustrates the universality of the Supply Chain Financing Solutions. Grocers, Electronic Retailers, Automotive Parts Manufacturers, Discount Retailers, Office Supply Retailers, Media Buyers as illustrated will benefit dramatically from adoption of the Supply Chain Financing Solution. The Supply Chain Financing Solution is suitable for virtually all Supply Chains regardless of industry sector or marketplace. 2

3 Business Partners: 1. Paradox has an agreement with IBM Global Services to contract for the installation, implementation and hosting component of the supply chain financing solution. 2. Paradox has an agreement with The Bank of New York Trust Company to contract as Trustee and Custodian of the supply chain financing solution. Patent Pending: Paradox has filed Patent Application No 2,482,506 for this intellectual property in Canada. The Paradox Solution is protected in all countries having Patent Treaties with Canada. Corporate Structure: Paradox will operate its business through a wholly owned subsidiary formed and organized as an International Business Company (IBC) under the laws of Barbados. This will achieve substantial tax efficiencies, further enhancing returns for Buyers and Investors. Equity Share Offering Paradox is offering [5,000,000] shares for 1/3 ownership at USD [$0.20] per share in order to raise USD $1,000,000 and no further financing will be required. Financial Performance Projections US Dollars Supply Chain Volumes Net Earnings to be Distributed Projection Projection Projection Projection $2.5 Billion $5 Billion $10 Billion $20 Billion $2.5 Million $5 Million $10 Million $20 Million 3

4 Directors: Jørn Iversen CEO & Chairman Mr. Iversen has devoted his energies over the past 5 years to the invention of the Supply Chain Financing Solutions and drew upon his broad understanding of all aspects of business dynamics developed over 35 years, reinforced by a 10-year career with Coopers & Lybrand. Mr. Iversen was the principal shareholder in a variety of privately held businesses, including the Food Service Industry and the Retail Industry. More recently, Mr. Iversen has assisted in the structuring and development of private sector independent power plant projects in both Canada and the United States. Owen Menzel Chief Financial Officer - Director Mr. Menzel brings over 33 years of business experience to Paradox including executive positions in financial services as well as other industries. Over the past 7 years, Mr. Menzel held various positions including President and Chief Operating Officer of Monarch Delaney Financial Partners Inc., a business consultant operating under the name Savant Consulting, Chief Financial Officer of Microforum Inc., Chief Financial Officer of Cam Vec Corporation and Chief Financial Officer of C.M. Oliver. Richard Anthony Cutaia Director - VP Marketing As the founder of many highly successful entrepreneurial ventures, Richard played major roles in the development, establishment and executive management of numerous successful creative corporate ventures over the past twenty years. Richard completed an Honors BA, Business Management and Marketing and a Bachelor of Architecture all from the University of Toronto. In 1987 Richard founded Landark Corporations Ltd. which specializes in development, marketing and operations of Unique Concepts. Richard spent five years developing resorts, hotels and restaurants worldwide working in Miami Beach. Returning to Toronto, he developed the 'Award' winning concepts including Montana Restaurant which won a Design Effectiveness Award from the Financial Post and the Royal York Hotel. As President and CEO of the group of companies, Richard was responsible for the growth and management of this very successful private enterprise. As co-founder of Sequoia Entertainment Inc. and Earthworks Productions Inc., Richard accepted the role as Executive Producer of the movie EVE which hit Cannes Festival in 2002 and is currently screening on TMN in Canada and HDNET in USA. Mr. Cutaia has been involved in major charitable foundations such as the United Way, Sick Children's Hospital Toronto, and Big Sisters of Toronto and Co-Chairman of the Black and White Polo Ball ( 95-99) raising over $400,000 for the Heart and Stroke Foundation. 4

5 Donald B. Johnston Director Don is a well-known technology lawyer with broad experience as a corporate and commercial lawyer. He has acted for numerous technology developers and has been involved in major technology projects including nuclear, acquisitions, financing and development projects - in both Canada and the U.S. His background in technology matters includes outsourcing, technology procurement, technology development alliances and transactions, software development agreements, hardware acquisitions and financings, teaming agreements for large projects, technology licensing, technology financing, technology joint ventures, Internet agreements and licenses, online services, e-commerce, privacy and data protection matters, enforcement of intellectual property rights, negotiation and finalization of supply chain agreements, design and implementation of "business partner" program agreements, design and implementation of strategic alliances among high-tech companies and mergers and acquisitions. William E Thomson Mr. Thomson has been President of Thomson Associates Inc., a provider of solutions to businesses encountering change, since Thomson Associates has operated companies in many industries and participated in creating and executing remedial programs in virtually all sectors. They also act as investment bankers. Mr. Thomson s current directorships are: Nasdaq - Acto Digital Video (USA) Inc. (Consumer Electronics), China Automotive Systems Inc. (Auto Parts), Maxus Technology Inc. (Technology Waste Recycling); TSX - Asia Media Group Ltd. chm. (Media), Headline Media Group Corporation (Media); Private- Electrical Contacts Ltd. (Electrical Contacts), Redpearl Funding Corporation (IT Financing), Wright Environmental Management Inc. (Waste Management Solutions), YTW Growth Capital Management Corporation (Vice Chairman); 5