Stock Loan Securities Finance The HedgeLoanŽ Way:

How We Developed Our Business Philosophy

HedgeLender was founded by Daniel W. Stafford in 1997 while working for the U.S. Department of Commerce, International Trade Administration. It opened its doors first as as an ethics-in-business membership organization for the private placement funding industry on the newly emerging Internet, SAS, named after his father, Samuel A. Stafford, a respected journalist in Washington D.C. who had passed away in 1995. It soon became HedgeLender Corporation, with an office at Two World Trade Center, New York, until the terrorist attacks of 9/11.. A secretary, Tatiana Ryjova, died in the attacks

After moving to Reston, Va., HedgeLender trademarked the term "HedgeLoan", and focused entirely on innovative, secure, flexible hedged portfolio stock loans that put regulatory compliance and personalized customer attention first - the values Samuel Stafford espoused. In January of 2006 the company became HedgeLender LLC, with Daniel W. Stafford and Fred R. Wahler as principals. HedgeLender's original offices in Reston, Virginia were transferred to the financial district of Philadelphia, Pennsylvania on Market St., and then up to Two Penn Center.

HedgeLender has added more HedgeLoan products every year, what we refer to as "HedgeLoan-Certified" stock loan structures meeting several key standards of excellence that must be met if a loan service is to be allowed to continue being offered to our clients. Today, stock loan finance from HedgeLender covers all types of stocks, including those traditionally not eligible for stock-secured loans.

Stock loan financing during all conditions. During the recent financial crisis on Wall Street, HedgeLender's funding programs remained healthy and attractive, since they are untied to movements in the market and not a credit facility tied to credit markets.

Our Stock Loan Securities Finance Objectives:

HedgeLender coined the term "hedge loan" and created the registered trademark "HedgeLoan", which describes a hedged portfolio stock loan securities finance product. Our HedgeLoan, according to the U.S. Patent and Trademark Office (PTO), "is a loan product that uses one of several methods to "hedge" or reduce risk of potential loss by lender who holds the portfolio of stocks that is contractually and/or beneficially owned by the borrower" for the duration of the loan term. We have held this registration since 2001.

Early on, Hedgelender created its HedgeLoan-Certification system to define the kind of stock loan products we wanted to bring to our customer. These stock-secured loan products had to meet several standards for performance, security, management, and borrower benefit. A HedgeLoan-certified loan product is one that we have tested over time, researched, and examined until we have been satisfied that it is a form of securities finance that we can deliver with confidence to our valued clients. It is constantly evaluated: A HedgeLoan-certified loan product doesn't earn this status in perpetuity. We continually evaluate performance, and if for any reason it does not live up to these standards, that loan program is no longer offered by HedgeLender.

The Ready Advantage of HedgeLender Stock Loans and Securities Finance Concepts:

HedgeLender in this way provides a "One-Stop Stock Loan Shop" approach that brings together the very best stock loan structures in the industry, featuring the most competitive securities finance proposals and quotes. We monitor the performance, compliance status, and value of every program we offer, and we ensure that all types of stock owner's preferences and priorities can be met. HedgeLender has a stock loan program for:

• Borrowers who need a low-interest loan with quarterly interest payments only.
  
• "Insider" share owners who are under DRIP and/or other restrictions
  
• Owners of shares trading on UK, Australia, Israel, Japan, India, Canada, or Korea exchanges.
  
• Investors who believe their shares will rise in value during the stock loan term
  
• Investors who require maximum loan-to-value and maximum cash
  
• Margin account holders who are facing a possible margin call
  
• Employee stock options holders who would like to flip them into stocks and HedgeLoan stock loan securities finance
  
• Those who need to restructure their debt using our stock loan cash
  
• Companies looking for a way to bind shareholder loyalty while using an alternative to PIPE financing
  
• Investors who want a stock loan where the shares stay in their own account at a top brokerage firm for the duration.

HedgeLender will continue to bring the best private placement stock-secured loan products to market and will stay on top of those products to ensure they meet our standards. In the rare case that they fail to meet those standards, they are dropped from our certification process and in this way we can continue to be an active partner in our clients' securities finance plans.

Want more information? Please visit our HedgeLender home page for more information on our HedgeLoan stock loan program.

Get a stock loan quote today to see what your stocks qualify for. (There's no obligation and your information is held in the strictest confidence). Or write us by e-mail with your questions. Or call us at 1-877-345-0008 at any time.

We sincerely look forward to introducing you to the Hedgelender difference.

HedgeLender LLC Securities Finance Services

Stock Loan Answers - Answers to Common Questions About Our HedgeLoan Program