EQUITAP™
"Unleashing the Power of your Securities"

EQUITAP™, helps investors achieve their financial goals by structuring non-recourse loans using the securities in their portfolio as collateral.

EQUITAP™ Overview

Equitap™, allows clients to obtain liquidity from their stock portfolio through a non-recourse loan. Equitap™ allows borrowers to achieve:

• Downside Protection | The non-recourse feature allows borrowers to terminate their loan at anytime by discontinuing the payment of interest on the loan. Equitap will only give recourse back on the shares pledged as collateral.
• Upside Opportunity | Equitap™ allows the borrower to retain an upside opportunity. At maturity, if the borrower repays the principal on the loan in good-standing, Equitap will redeliver the appropriate number of shares.
• Diversification | Equitap™ allows investors to diversify their portfolio in an efficient manner. Whether you need liquidity, investment diversification, estate planning or retirement planning, a Equitap™ loan may be the answer. You no longer have to sell your stock and give up market potential in order to achieve your financial planning objectives.
• Liquidity | Equitap™ allows investors to obtain liquidity from marginable and non-marginable stocks.
• Attractive Interest Rate | A typical Equitap™ loan is currently offered at competitive fixed simple interest rates of 5.9% to 8.9%. Interest is paid quarterly in arrear.
• Dividends | Equitap™ allows for all dividends to be transferred to the borrower.

Loan Details
EQUITAP™ AVAILABLE TERMS

Equitap™ offers 3 to 5 year stock loans with a higher loan-to-value ratio, lower interest rate, and greater flexibility than that available from other lending institutions.

Loan to Value
The amount of the loan, as determined in the Equitap™ Loan Agreement, is a percentage of the total collateral value and will be established on the effective date of receipt of the collateral into the borrower's custody account held by the custodian. The total collateral value is determined by the volume weighted average price per share (VWAP) over multiple days on the effective date of receipt of the collateral.

Non-Recourse
The loans offered under the Equitap™ Program are non-recourse to the borrower. Borrowers and their successors, endorsees and assigns will not be liable for the loan in the event of a borrower defaulting on the loan. The lender’s only recourse is to look to the collateral encumbered by the pledge agreement and held by the Custodian. If upon maturity, or at any time during the course of the loan, the value of the collateral is less than the amount borrowed, the client may discontinue paying interest on their loan and surrender the shares they have pledged as collateral in full satisfaction of the loan—leaving the lender to recover costs only from the value of any hedges, the Guarantee Bond and any other collateral in the borrower’s collateral account.

Redelivery
The lender’s balance sheet and hedges ensure the redelivery of the appropriate shares of stock to the borrower. Upon maturity of the loan and after payment of the principal amount, the instruments held in the client's custody account could be settled by the lender, custodian or the borrower whereupon the stock is released and returned to the borrower according to the borrower’s instructions.

Minimum Consideration
There is a minimum portfolio requirement of at least $50,000 and a maximum of $25 million. The securities being considered must be free trading and clear of restrictions.

Eligible Securities
Equitap™ lending is available for most foreign and US domestic securities, including the OTC BB and Pink Sheets. Availability and terms of loans vary based on the individual security and details of each application.

For answers to any other questions or to find out more information please contact an Equitap™ representative at 866-700-0797 ext 1831.

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