Overview

2. Overview • GFS makes loans against NYSE, AMEX, NASDAQ, International, and even OTC BB stock • Loans are non-recourse - no penalties to borrower if stock loses value and borrower defaults on loan • Loans are made at better rates and higher loan-to-value than margin loans

3. Stock loan Non-recourse Up to 75% loan-to-value Loans available against all types of listed stocks, even BB Fixed maturity makes stock loans appropriate for more uses Lower rates Margin loan Callable when stock price drops 50% loan-to-value Not all stocks are marginable Can’t use for many purposes because of the risk of margin calls Higher rates Stock loan vs. Margin loan

4. Length of Loans • Typically one to five years • Dependent upon quality of the stock, share price, daily volume, historical price data and the stock’s optionality. • Longer loans can be arranged, depending on the security

5. Factors Determining LTV, Interest Rate and Fees • Stock price • Daily Volume • Historical Price Data • Optionality

6. Key Benefits • Non-recourse – Since your shares are the only collateral for the loan, there is no personal recourse in the event of default. If your securities are worth less than the value of the original loan and/or what is owed at maturity, you may simply walk away and owe nothing else. Only the collateral stock is surrendered to satisfy the loan obligation.

7. Key Benefits • High Loan-to-Value with Tax-FreeLiquidity – We can offer you thirty to seventy-five percent loan-to-value, depending on the securities. In addition, no triggered tax events occur, as the funds delivered to you are a loan against an owned asset. This means you can enjoy the liquidity of your position without selling your shares and creating a tax liability.

8. Key Benefits • Unlimited Upside Potential – Since you are not selling your position, you retain full ownership of your securities. Therefore, you maintain the opportunity to benefit from the stock’s appreciation, while greatly reducing your risk against potential stock depreciation.

9. Key Benefits • Market Down Turn Protection – Since there are no margin maintenance requirements, the risk of a cash squeeze in the event of a market downturn is eliminated regardless of any changes in the value of the collateral stocks.

10. Key Benefits • Flexible Terms – The term of the loan is generally two to three years, with renewable extensions available for years thereafter.

11. Key Benefits • Speed – Since the terms of the loan are based entirely on the securities pledged as collateral, GFS can give you a quick response. Once contracts are signed and the securities are transferred, funding takes place in three days or less.

12. Buying a new or vacation home Buying a new business. Refinancing corporate or personal debt. Buying rental property. Paying off costly hospitalization stays. College tuition+ Fund life insurance needs. Refinancing a new or vacation home. Expanding an existing business. Paying off corporate or personal debt. Buying a new car/boat/etc. Limiting your downside market risk while maintaining your upside potential. Renovate, restore or remodel your home or office. Estate planning needs. Uses of Stock Loan GFS Investment, Inc., does not discriminate as to the use of proceeds from a transaction. This listing is provided to demonstrate just some of the reasons our clients have utilized our unique service.

13. Uses of Stock Loan A CFO of a Fortune 500 company owns a large block of stock at a very low cost basis. He wants to buy some property and invest in a restaurant. Selling shares would not only generate a huge capital gains tax, it would require filing an insider transaction that potentially affects the stock price. A stock loan triggers no taxable event.

14. Uses of Stock Loan A venture firm that senses a downturn for a particular company in its portfolio wants to reduce its position, but does not want to weaken the stock with a large block sale. A stock loan captures the gain in the firm’s position and is not a taxable event.

15. Uses of Stock Loan The management team of a successful Internet firm all have huge blocks of shares but very little cash and comparatively low salaries. If they don’t sell stocks, they risk losing their appreciation, but if they all start selling, they send the wrong signal to the market. Asset advisory firm recommends stock loans for entire management group as tool for diversification and tax management.

16. How It Works • Borrower submits list of holdings • GFS determines amount that can be lent and terms • Verify that assets are free-trading and available for transfer • GFS will prepare contracts for borrower, make any adjustments • Borrower prepares Letter of Authority for his brokerage firm • Contracts are signed, Letter of Authority is submitted • Upon transfer of stock, funds are wired within three business days

17. Options At the End of Loan Term • Pay off the loan and receive your stock back. • Extend the term of the loan. • Refinance the loan in the event of portfolio growth. • Walk away in the event of severe market decline with no recourse.

18. About GFS Investments GFS Investments, Inc., is connected to lenders and buyers of risk with a worldwide presence providing terms based on an overall evaluation of the asset using stocks or U.S. treasuries as collateral. GFS Investments utilizes a multitude of financial instruments and dynamic hedge events to maximize and maintain complete, yet flexibility of the equity loan process. This program has obtained an opinion letter written by S.E.C. Counsel which substantially differentiates it from other banks and institutions, who work within the confines of Regulation T and Regulation U. In recent years over one thousand successful securities lending transactions involving the AMEX, NASDAQ National, NASDAQ Small Cap, NYSE and OTC:BB exchanges have taken place.