Securities information is provided from the borrower.

(A recent monthly statement works best.)

* The loan-to-value ratio and the interest rate are determined by what securities are pledged. The more liquid and actively the traded securities are the higher the loan-to-value ratio and the lower the interest rate.

* A Term Sheet/Loan Commitment is then issued.

* Borrower reviews and approves the Term Sheet/Loan Commitment.

* A conference call is placed between the borrower and lender to answer any questions.

* The Pledge Agreement and Contract are forwarded to the borrower for signatures.

* The securities are then transferred to the lenders brokerage account.

* Lender tracks the closing price of the shares for 3 days to obtain an average price.

* The loan is then disbursed based upon the loan-to-value previously agreed upon.

* Borrower makes Interest-Only quarterly payments.

* During the loan term prepayment of the loan is not allowed.

* Any dividends from the securities is credited to the quarterly interest-only loan payment first and any excess is returned to the borrower.

* Default trigger is set at 80% of the loan amount - not 80% of the securities value like typical margin loans. For example: securities value of $1MM, loan of $800k, default trigger at $640k (80% of the loan amount). If the securities value fell below $640k the borrower could walk away from the obligation of repayment of the loan and keep the original loan proceeds ($800k) or contribute cash or securities to bring the value back up to $640k. The borrower would forfeit the collateral. Unlike margin loans this is a non-recourse loan so there is no personal liability should a default on the loan occur.

* At the end of the loan term the loan is paid in full and the same amount of shares are returned to the borrower.

* The loan may also be extended or refinanced.

The time frame for funding may be as little as 5-7 days.