Wawona Worldwide Capital, LLC ("WWC") has a relationship with a U.S.-based company that does stock loans. The loans may be used to:

• provide liquidity from an existing stock portfolio;
• create liquidity from a new portfolio;
• facilitate a down payment for real estate purchases;
• provide cash for debt repayment;
• facilitate insurance-based estate and/or tax planning applications.

WWC generally negotiates and charges a flat fee as a percentage of the "at the money" market value of the stock to be margined, payable on the close of the transaction. Stock loans let you stay in and out of the market simultaneously.

FEATURES

Cash now - 90% of the "at-the-money" value (market value at time of hedge) of the portfolio, in cash, with fast 3-5 day closing, using a portfolio of hedged securities as collateral.

No margin calls - regardless of how low the stock price falls, through the entire loan term. Stock loan structure with no margin calls for any reason, no out-of-pocket cash required to cover declines in stock price during the loan period, and no up-front application fees.

Choice of interest rates and benefits - No interest or principal payments due until the maturity date for our full-upsider (profit) variant; or quarterly payment scenarios for lower interest rates; or capped appreciation variants for still lower interest rates.

Full participation - allowing borrowers to effectively stay in the market but with 90% cash in pocket today. Portfolio continues working for you at all times: Profits from appreciation of the portfolio when the loan matures, after principle and interest are paid, are 100% for the account of the borrower in the full-upside flagship Stock Loan;

Flexible exits - At loan maturity you can choose how you wish to exit, either by 1) paying off the loan and regaining your shares; 2) asking the company to sell the shares to pay off the loan and remit the remainder as profit in cash or shares back to you; or 3) allow you to walk away from repayment entirely and forfeit only the collateral stocks - even if those stocks are worth just pennies on the dollar at that time.

Unlimited application - Your Stock Loan can be used for any legal purpose including insurance annuities, real estate, or other investments. A Stock Loan is a loan, not a sale, allowing the avoidance or postponement of capital gains taxes for most borrowers.

Comprehensive reporting - sent ever quarter, covering interest accrued, current value of the portfolio, dividends paid and credited against interest, and other pertinent data, so you know where you stand at all times.

Non-recourse terms - so you can walk away from repayment with your stocks as our only collateral recourse to recover our loss, and with no reporting whatsoever by us to any credit bureaus. This effectively means that the very worst you can do with your Stock Loan is hold 90% of the cash value in hand today, while the best is that you may profit should the portfolio rise.

Choice of maturity dates - with loan terms from two to twenty years, your choice.

Dividends credited - against accrued interest. 10% interest per year with enough dividends to comprise, for example, 3.5%, would give you an effective interest rate of 6.5%. Note that there is a cap of dividends comprising about 4% (for this reason, high-divided paying stocks such as REITs often do not make good Stock Loan candidates).

Flexible payments - either no payments until maturity or quarterly-only payments.

Professional loan administration - outstanding, experienced professional account management with personal service and careful attention to every legal and administrative detail. Stock Loans reside under the control of an experienced, U.S.-based management team that has delivered hedged stock portfolio financing to hundreds of satisfied clients since 1999. Every Stock Loan utilizes only Moody's Investor Services investment grade counterparties for every hedge, providing powerful security for your stocks while held as collateral.

Using a Stock Loan to Remove Margined Stock Positions via Restructuring

Stock Loan and Margin Calls. Restructure your portfolio into a Stock Loan instead of your current costly and worrisome margin loans and get 90% loan-to-value, no-margin-call financing for the life of your new loan, plus our non-recourse "walk away" non-recourse option allowing you to never repay the loan, sacrificing only the collateral stocks - even if they are a fraction of the original value - with no negative consequence to credit whatsoever.

To unmargin your existing margined loans, you'll need at least 5% of your portfolio's value in that stock (or other stocks) to be free and unmargined - that is, free of any encumbrances or liens. The value of these initial stocks must be at least $100,000, and multiple stocks can be grouped together into one portfolio if necessary to meet this minimum. Here, the initial goal is to create the cash to allow consecutive blocks of margined stock to be redeemed and replaced with Stock Loans.

Each block of newly freed shares, now unencumbered, will then be rolled into a brand new Stock Loan, with the proceeds used, if necessary to remove the margin status for the subsequent block. This process will be repeated until your entire margined position has been restructured into no-margin-call Stock Loans, with the proceeds for the remaining stocks thereafter going directly into your pocket as cash once the need to apply to margined stocks has ended.

You've ended all concern over margin calls, while putting 90% cash in your pocket for any other investment and continue to participate in the upside should your stocks appreciate. For many of our clients, this has been the perfect strategy.

There is no upward limit to the amount the company can restructure in this fashion.

Other Structured Finance Solutions

Structured Equity Lines of Credit (ELOC). The company can offer a 90% weekly stock share-purchase program that can carefully unwind very large stock positions while allowing the client to time the market for best pricing. A private placement through an affiliate of the company can be an attractive alternative to a direct sale for corporations as well as for individuals.

Sale with Optional Agreement to Regain (SOAR). The company will purchase your stocks at a discount today, and give you the option of buying those shares back at a date 2-4 years hence at a percentage premium over today's price. For clients who strongly believe that their shares will head upward dramatically over time, this can be a smart liquidity solution.

Block Purchases. The company can purchase a large block of shares, either newly registered free-trading shares or individually held shares outright, all at once, at a discount, for high quality stocks. The company does not take management positions in these companies. This requires very strong blue-chip or near blue-chip stocks on major world exchanges.

The type of Stock Loan you are eligible for will depend on the quality of the stock you will be using as collateral. A high quality stock has high volume of trading on average (over 300,000 shares/day) and a strong price (over $4/share) consistently, over a year or more. A lower quality stock has a share price under $3/share and an average trading volume of under 50,000. Determining average volume is easy via any free internet-based financial site such as Yahoo Finance. With a high quality stock the company can usually process your transaction at once, in a matter of days, because the trading volume will be sufficient for them to complete the hedge swiftly with their counterparties. With a lower quality stock, the company can still hedge the shares but the lower volume of trading means that they must do it over several weeks. A client with lower quality stocks will be seeking cash from his shares without a sale, and shouldn't mind having the company unwind the shares with cash coming to him every week until all of the shares have been processed and the loan closes formally.

Here are the absolute minimum requirements for a Stock Loan with full upside (appreciation) to you as the borrower:

Share price - of no less than US $1.50/share consistently over the past 30 days.

30-day average trading volume - of at the very least 60,000/day, trading on a major U.S. exchange. Volume is very important to hedged portfolio lending; the very best candidate stocks have good, strong volume, and those with weak volume (anything under 60,000 shares/day on average) are less suitable. (Suggestion: Use Yahoo Finance to plug in your stock ticker information and get these figures in a matter of minutes).

Portfolio value - at loan inception of at least US $100,000.

Free-trading - Shares should be free trading and unencumbered.

Electronic format - Your stocks may be in certificate form still. That's fine, but before the loan can begin, the shares must be converted to the industry-standard DTC (electronic) format. Most major brokerage houses have transfer agents and securities attorneys who can handle this conversion very easily. If, on the other hand, you would like the company to convert them, they will, but there will be a delay in your funding of up to 8 business days. We recommend that all clients attempt to have the DTC conversion handled by their brokerage or attorney in advance for greatest efficiency.
Acceptable exchanges - The Stock Lender currently accepts stocks on any of the major U.S. exchanges (NASDAQ, American, and New York Stock Exchanges). They also accept true top-tier blue chips (top 100 stocks ) in markets in Singapore (SGX), Hong Kong (SEHK), London (LSE), and Germany (DAX).

A Perfect Stock Loan Example?
200,000 or more unencumbered, free-trading, DTC-ready shares of IBM, Intel, Cisco, Motorola, McDonalds, or Home Depot (or any other Fortune 500 firm stock).

Here are the absolute minimum requirements for a Collared Hedge Loan (appreciation capped a 150% or 170% of value at outset of loan) with interest paid quarterly or accruing, an alternative suited for most lower quality stocks:

Share price - of no less than US $1.50/share consistently over the past 30 days.

30-day average trading volume - of at least 30,000/day, trading on any exchange including the OTC BB system.

Portfolio value - at loan inception of at least US $100,000; no upward limit, but remember that the company can only take a maximum of 200% of the average trading volume of your portfolio, per week.

Free-trading - Shares must be free trading and unencumbered and in electronic (DTC) format.

Acceptable exchanges - U.S. only.

A Perfect Collared Stock Loan Example?
200,000 or more unencumbered, free-trading, DTC-ready shares of any small to mid-cap stock, that stock having sound value and good prospects and no SEC investigations, unexplained zero-volume trading days, or other anomalies.

Interest Rates

The interest rate you pay will be a function of many variables, but in all cases - because the Stock Lender is a true hedged portfolio lender - the interest rate is actually their counterparty cost-to-hedge and does not represent a profit to them. What this means is that the interest rate they pass on to you is based on several market-based factors that determine the attractiveness of your portfolio to the investment-grade quality counterparties they exclusively use. These factors include the length (term) of your loan (longer terms = lower interest); whether you want all of the portfolio's appreciation (higher rate) or are willing to allow a cap on appreciation (lower rates); whether or not you choose to let interest accrue (higher rates) or choose to pay it quarterly (lower rates); trading volatility - is your stock trading erratically (higher rates) or gradually rising/decreasing over time (lower rates); and other factors that directly determine the true value of the stock on the free market.

A final element affecting a Stock Loan is dividends paid. All Stock Loans allow dividends to be credited against accrued interest (up to 4%), so that your effective interest can be lower than the official rate. The Stock Lender's interest rates typically go from a low of 5% for 150% Collared, interest-paid quarterly Stock Loan with strong stocks, to 12% or higher for full upside Stock Loans utilizing weaker stocks.

Foreign Stocks

Both the Stock Loan and the Collared Stock Loan are available for selected stocks in foreign markets. To be eligible, the standards are somewhat higher than for the U.S. market: A foreign stock must be at the top of its national stock index - a true "blue chip" in its own market.

The Structured Equity Line of Credit Share Purchase Program, however, is available for selected weaker foreign stocks, and constitute a regular weekly purchase program based on 90% of the prior week's price. Countries that the company currently are positioned to work with are Canada, Hong Kong, Singapore, Japan, Australia, Malaysia, Germany, Netherlands, Luxembourg, and Belgium.