10. FAQ

Frequently Asked Questions

What is Serenity Point?

Development and construction of nine ultra high end custom mountain estates in Colorado and a world wide demonstration site in Taos, New Mexico.

How do I participate?

As a 'Preferred' Member of the Limited Liability Company (LLC). By purchasing one or more membership subscription Units (Interests) at $12,500 per Unit. There are 400 Units.

Participation is accomplished by a Subscription Agreement contained in the Private Placement Memorandum (PPOM) offered by the company.

How many Subscription Units are available?

Originally four hundred (400) Subscription Units at $12,500 per unit. All Subscription Units for Preferred Member interests remain unsubscribed (as of June 30, 2005).

How are my funds used?

To purchase the approximately 400 (MOL) acres of land ($2.5M), to continue site development of the land and entitlements which will be owned by Ensign Development, L.L.C. as well as to complete the initial marketing, design, development and construction of the 9 ultra custom estates plus the "demo" home in Taos, New Mexico.

How many of the 9 ultra custom home units are under contract to Ensign Development, LLC??

Two custom estate buyers are in negotiation with the company. And, one investor has reserved the purchase of the "demo" site and estate in Taos, New Mexico.

Who is Ensign Development, LLC, and how much have the founders invested to date?

A joint venture between the two Founders: Euclid Custom Homes, a custom home builder for 35 years in the greater Denver area, and Drew, Incorporated, whose principal has over 34 years in new business development. Over the last 10 years, nearly $1,300,000 has been invested in current and planned projects. Of that, over approximately $300,000 was directed to the project.

How am I protected as a member of the LLC?

By ownership in the L.L.C. your liability is limited to your capital investment and is protected by company life insurance, business insurance, and performance bonding policies.

What other funds are committed to the project?

None to date. The Founders see no need for additional funding other than what is outlined in the Offering Memorandum. After the Private Placement, the company expects that the project will be sustained by the sales of the 9 custom estates.

What is the projected return on my investment?

Projected "preferred" return is about twenty-five (24.99%) percent simple interest based on project start date of January 1, 2006, with completion expected not later than thirty-six (36) months after project start date. Plus the Preferred Member shares pro rata in the profit of the project.

How am I reimbursed?

There are three distributions. The first is the return of your capital contribution (investment) which is expected within about eighteen months of construction commencement. The second distribution (about 8.3% per year) is immediately after capital contribution (your investment), or around the 5th lot sale. The third and final distribution will occur at project completion, planned to be about thirty-six months after commencement.

How can I get more details on Serenity Point before investing?

Please call Andrew J. Monaghan, Sr. (principal owner of Ensign) and/or forward questions, comments and/or request for additional information by E-mail to andrew.monaghan@ensignprogram.com

How do I know that the Founders won't just run away with my money?

Each investor needs to check the credentials of the principals of the company and assure themselves that they are dealing with managers that have only the highest integrity and principles expected of a person in a trusted or fiduciary position.

The company offers references on each person involved in the management or advisory capacities of each project. These include present and past investors, suppliers, partners, contractors and consultants who have been involved with the founders and principals of every project, completed or planned.

Why do the Founders have so many shares compared to the preferred members?

As of June 2005, the Founders invested over $1,272,000 in the Ensign Program. This investment was high risk money that essentially abated or minimized the risk to future investors in any project the Founders thought worthy of pursuing or sharing with an investment community.

See also Exhibit C13 and C18 (in the back of the Memorandum) for the reasons why 12% is offered.

What if we don't get the land that is mentioned in the business plan?

While we don't believe this will be the case, we are "worst case" planners and deal at that level all the time. There are two back up parcels available to the company if all efforts fail to secure the targeted parcel.

What is the minimum and maximum number of Preferred Member units I can purchase?

The minimum number is one (1), and the maximum number is limited under certain circumstances to twelve (12) to any single individual or entity.