An Easy Plan

Step 1: Initial Request

Borrower provides ticker symbol, stock exchange, desired loan amount, and number of shares to be pledged.

Step 2: Term Sheet and Documentation

A written Term Sheet is provided outlining lender’s terms. Borrower signs the Term Sheet and submits together with a copy of Brokerage Statement and photo ID.

Step 3: Know Your Client (KYC) Form

The lender issues a Know Your Client (KYC) form for the borrower to fill out.

Step 4: Master Loan Agreements

The lender prepares the Master Loan Agreements for the borrower to sign. Master Loan Agreements are signed by borrower and lender.

Step 5: Securities Transfer

Upon execution of Master Loan Agreements, the lender and borrower make arrangements to transfer the borrower’s securities to lender or to custodian bank/transfer agent.

Step 6: Custodian Agreement (if applicable)

If a custodian is used, then a 3-way agreement is signed by the borrower, lender, and custodian, and a “Closing Statement” is prepared. Client deposits the shares with a custodian bank/transfer agent or with the lender.

Step 7: Fund Transfer

Lender wires the funds to any account in any country that borrower chooses. Borrower is in possession of funds and may transfer elsewhere or withdraw. The lender does not control the use of funds or the country that borrower chooses to receive funds in.