Funds may be used for any purpose including personal or business use

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1 SBLA Overview A simple, proven and secure process to obtain funding for any purpose. This lending platform allows the borrower to pledge their stocks and ETF's to obtain funds for personal or business use. Using stocks as collateral it is possible to borrow money at a fixed interest rate that is below 4.50% for up to 10 years. Fixed interest rates between 2.5% and 4.5% Interest-only quarterly loan payments Loan terms of 3, 5, 7, or 10 years No closing costs No lenders fees No upfront or due-diligence fees No credit check or income verification Funds may be used for any purpose including personal or business use Non-recourse loan. The only collateral are the pledged securities. Should the borrower default on the loan, the borrower keeps the loan proceeds and the lender only claims the collateral. The borrower s liability is limited to the collateral pledged for the loan. The lender has no right to proceed against the borrower for any deficiency. Loans available for up to 80% of the securities value. The borrower retains all dividends and upside market appreciation that the securities generate. Prompt response to a loan inquiry, usually within one business day of receiving the security information. Funds can be deposited into the borrowers account in three to five business days once the contract is signed and the transfer takes place. Fast Funding - usually in a matter of days. 1 P a g e

2 SBLA Process Securities Information Is Provided From The Borrower (A recent monthly statement required) Complete the SBLA Express Quote Form listing the names of securities, stock symbol along with the number of shares. Notification of Approval or Denial Office s forms to the borrower. Borrower completes and s the forms and current monthly statement for each Security to the designated secured address. Office reviews information. The loan-to-value ratio and the interest rate are determined by what securities are pledged. The more liquid and actively traded the securities are the higher the loan-to-value ratio and the lower the interest rate. A Term Sheet (Loan Commitment) is issued and if the terms are acceptable then the Pledge and Loan Agreement are forwarded for signatures. Borrower reviews and approves the Term Sheet/Loan Commitment. A conference call is placed with the borrower to answer any questions and to insure the borrower understands the complete loan transaction. The Pledge Agreement and Contract are forwarded to the borrower for signatures. Arrangements are made for the quick transfer of the securities. Tracking of shares for 3 days begins 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. Any dividends from the securities are credited to the quarterly interest-only loan payment first and any excess is returned to the borrower. At the end of the loan term the borrower may renew the loan, possibly refinance, or pay off the loan. Upon repayment of the loan the same securities originally pledged are returned to the borrower. The time frame for funding may be as little as 5-7 days. It's that simple! 2 P a g e

3 Guidelines Overview Type of Loan: Interest Rates: Loan to Value: Loan Terms Payment Structure: Revolving Line of Credit From 2.5% to 5.00% depending on type of collateral and size of the Line of Credit that is approved. See chart below Loans are perpetual. Fixed rate loans are where the RATE is fixed for the term chosen by the borrower. 6 months to 7 years are available. Interest-Only monthly loan payment. No payment is due if the borrowers credit line exceeds the amount of the funds drawn on the account. Minimum Loan Amount: $100,000. Maximum Loan Amount: Minimum Trading Volume: Credit Check: Income Verification: Pre-Payment Penalty: Lock Out Period: Recourse: ARM Conversion: Loan Origination Fee: Broker Origination Fee: YSP: Processing Fee: Upfront Fees: Yearly Maintenance Fee: Insured Account: Call Point: Based on the securities pledged. Note - We will not consider more securities to be pledged than the total of 3 day average volume. $50,000 average daily trading volume. ARM's, No. Fixed Rate, Yes* Limited recourse. Assets pledged may be liquidated to payoff the credit line. Credit lines may be converted to a fixed rate at any time with no cost. 1.50% (.50 YSP to approved brokers) Varies (based on domestic or international).50 to approved brokers Yes - SIPC-insured Borrower must maintain at 25% equity in the account at all times. *The Fixed Rate Lines of Credit and Loans carry a breakage fee. This example is a sliding scale. 3 P a g e

4 Loan to Values Collateral Loan-To-Value Available US Stocks ($10 a share minimum) up to 70% Mutual Funds ($5 as share minimum) up to 70% US Treasuries up to 90% Corporate Bonds (Investment Grade) up to 90% Municipal Bonds up to 90% US Restricted Stock up to 60% CD's up to 90% Acceptable Collateral Stocks, ETF(s) and Mutual Funds US Treasuries Foreign Sovereign Debt (AAA+ - AA-) Investment Grade Bonds Municipal Bonds Control or Restricted Stock 4 P a g e

5 Unacceptable Collateral 401(k)'s, IRA's or any type of retirement fund Real Estate Annuities Gold or silver mines Mines or Mining Projects Oil or Gas Leases Commodities Private notes or private bonds Bonds that are past maturity Bonds that are backed by gold Bearer Bonds Variable Structure Notes Surety Bonds or any type of insurance instruments Gems Private Notes Art SKR's Leased Instruments BG's SBLC's Stocks originating in the following countries: Europe: Afghanistan, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Iran, Iraq, Latvia, Lithuania, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Turkey, Ukraine. South America: Bolivia, Chile, Columbia, Peru, Venezuela. Asia: China, Iraq, India, Malaysia, North Korea, Pakistan, South Korea, Sri Lanka, Taiwan, Thailand. Africa: Egypt, Morocco, South Africa, Jordan, Lebanon, Nigeria, Bahrain, Oman, Saudi Arabia. Middle East: Abu Dhabi, Jordan, Lebanon, Bahrain, Oman, Saudi Arabia. 5 P a g e

6 Margin Loans vs. Securities-Based Lending Margin Loans Up to 50% LTV Not allowed to lend on stocks under $10 Typically 5-8% ARM Full Recourse The "call" on margin loans is set at 80% of the stock value. Have 1 day to cure the default. Credit Requirement Securities-Based Lending Up to 80% LTV Allowed on any share price % Fixed Rate Non-Recourse The "call" is set at 80% of the loan amount (approximately 60% of the stock value). Have 5 days to cure. If the borrower cannot cure the loan default they can simply walk away. No Credit Check or Income 6 P a g e