Leveraging your equity into cash

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Fairmount Equity Advisors provides customized loans to individuals, institutions and companies around the world. Whether you're a CEO, a law firm, a fresh start-up, an established business, an active investor or an individual shareholder, if you have non-marginable securities that you’re willing to pledge, we'll provide you fast access to the capital you need.

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Leverage Your Securities PortfolioInto CASH : 

Leverage Your Securities PortfolioInto CASH Non-Recourse Loans

YOU NEED CASH : 

YOU NEED CASH One of the most common dilemma's facing officers, directors, other affiliates is how to best liquidate shares when cash is needed. Many Public Companies also need cash. Further, other shareholders may want cash. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 2

YOU NEED CASH : 

YOU NEED CASH The matter should be relatively simple, but… Adding to the float puts downward price pressure on the stock. NOT GOOD!! Insider sales are limited and disclosure can create problems… Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 3

Margin Loans : 

Margin Loans Lending against securities is not a new concept. Most brokerage firms offer Margin Loans to their clients, but often with low LTV’s and constant risk of margin calls… Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 4

Margin Loans : 

Margin Loans But what if your securities are NOT MARGINABLE ????? There has been no solution, UNTIL NOW!!!!!!!! Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 5

Hedge Loans : 

Hedge Loans Hedge Loans are rapidly gaining popularity because they make sense for the reality of today's challenging economy. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 6

Hedge Loans : 

Hedge Loans Not since 1929 have volatile world financial markets reacted so irrationally to market fears. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 7

Unfavorable Lending Environment : 

Unfavorable Lending Environment Making matters worse, we're living in a time when credit is not flowing freely. Executives, shareholders and investors searching for liquidity are hesitant to cash in on stocks they hope will see future appreciation. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 8

Unfavorable Lending Environment : 

Unfavorable Lending Environment Fundamentally, popular wisdom says our best days are ahead of us, which is why borrowing against your securities makes more sense than selling them. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 9

Hedge Loans : 

Hedge Loans Hedging your portfolio using stock-secured, non-recourse loans is an excellent strategy for risk reduction. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 10

Hedge Loans : 

Hedge Loans Hedge loans are a powerful and flexible liquidity option for those who want to, in essence, "STAY IN AND OUT OF THE MARKET AT THE SAME TIME”. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 11

Hedge Lending : 

Hedge Lending Whether you need cash to: Operate or grow your business, Make an investment or purchase, Reduce debt, or Simply want to take some cash off the table as a hedge against unforeseen events. We can structure a loan for you!!!!  You get the cash you need today while still retaining the upside potential in your securities for tomorrow. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 12

Hedge Loans : 

Hedge Loans This approach to lending allows borrowers the flexibility of gaining needed liquidity at a reasonable cost. Moreover, the loans are both interest-only and non-recourse, so you have the option of walking away at any time with no further liability. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 13

Hedge Loans : 

Hedge Loans It is truly the best of both worlds: Risk mitigation with cash in hand, and Upside profit participation. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 14

Hedge Loans : 

Hedge Loans The solution is simple enough: Have your portfolio hedged to protect against loss by taking out a loan against your shares with very attractive terms. The result: A non-recourse stock loan that is never called, regardless of the fall in value of your shares. Even in a case like Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 15

Hedge Loans : 

Hedge Loans You receive cash that is unrestricted and unencumbered without the tax consequences of a sale. Simply put, we provide leverage and liquidity against non-marginable securities by creating an effective downside hedge for your portfolio. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 16

Hedge Loans : 

Hedge Loans We work with lenders worldwide with billions to lend. Loan amounts from $20 thousand to $40 million. Fixed interest rates at around 5% Interest only payments Terms from 12 months to 7 years Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 17

Hedge Loans : 

Hedge Loans True No Documentation No Credit Check No Income Verification Self-Employed are Welcome Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 18

A Hedge Loan Scenario : 

A Hedge Loan Scenario A shareholder in a national home builder was thrilled to see his investment keep hitting new highs as real estate prices across the country continued to rise. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 19

A Hedge Loan Scenario : 

A Hedge Loan Scenario The economy was solid, corporate profits were strong and he was confident the company would continue to grow. His investment had already more than doubled, however, and he was thinking of taking some money off the table. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 20

A Hedge Loan Scenario : 

A Hedge Loan Scenario Moreover, his position represented several times the stock’s average daily volume and he did not want to hurt the market. He was attracted by the simplicity of a Hedge Loan with its low interest rate and non-recourse features. The Lender evaluated the position and offered a 65% loan-to-value at a 5% fixed interest rate for 3 years. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 21

A Hedge Loan Scenario : 

A Hedge Loan Scenario From quote to funding took just under a week. The stock continued to perform well, but in late 2008 it took a massive slide along with the rest of the market. If he had held onto his shares he would have been down 90%. Instead he decided to not repay the loan with no further liability. He walked away and kept all the cash. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 22

Here’s How it Works : 

Here’s How it Works Our process gets started with basic information about your collateral and your desired amount of funding. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 23

How it Works : 

How it Works We work to find the best deal for you, including the best loan-to-value ratio, fixed interest rate and term. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 24

Here’s How it Works : 

Here’s How it Works You provide proof of ownership of your securities with either electronic or physical certificates. Also, you must demonstrate that your shares are free-trading and without restriction. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 25

How it Works : 

How it Works You will receive documentation of the mutually agreed terms and conditions. Both parties will execute all requisite documents, then you transfer the collateral security. You will then receive your cash. No disclosure or reporting required. All information is confidential. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 26

Flexible Exit : 

Flexible Exit At end of loan you have 2 options: You can simply "walk away", and allow Lender to retain the collateral. You can repay the loan and have collateral returned to you. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 27

Flexible Exit : 

Flexible Exit If you decide to walk away NO negative report is sent to credit bureaus. The Lender cannot make demands on your assets other than the pledged securities -- even if the portfolio has become essentially worthless. This is the famed "non-recourse" provision of hedge lending. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 28

Growth Cap : 

Growth Cap The Lender partners with you to participate in the stock's upside at the end of the term. This is accomplished by setting what is called a "Growth Cap“. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 29

Growth Cap : 

Growth Cap The Growth Cap is a percentage gain that exclusively belongs to you. Typically the Growth Cap is up to 300% of the original value of the shares. If the share value increases above the Growth Cap, the Lender receives the lion’s share of any further appreciation. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 30

Growth Cap Scenario 1: : 

Growth Cap Scenario 1: You pledged 1 million shares at $1.00/share as collateral for a $500,000 loan. Your shares are trading at $5.00 at the end of the loan term ($5,000,000). Based on a 300% Growth Cap, YOU WOULD NET $3,600,000. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 31

Growth Cap Scenario 1: : 

Growth Cap Scenario 1: Here’s how:   The Lender is entitled to 90% of any appreciation over $3.00 per share which equals:             [$5.00 – ($3.00 + $1.00)] x 90% x 1,000,000 shares = $900,000 Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 32

Growth Cap Scenario 1: : 

Growth Cap Scenario 1: So, the net to you is calculated as follows:     Value of Shares     $5,000,000     Less:    Lender's Profit Participation    900,000     Less:    Loan Repayment            500,000      YOUR NET                $3,600,000 Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 33

Growth Cap Scenario 1: : 

Growth Cap Scenario 1: You can repay the $500,000 loan and provide the Lender's Profit Participation of $900,000 in one of three ways:    1)    Pay Lender $1,400,000 in cash and keep all 1,000,000 shares valued at $5,000,000 leaving you with appreciation of  $3,600,000. (You can then apply for another loan based on the $5.00 per share.)  OR Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 34

Growth Cap Scenario 1: : 

Growth Cap Scenario 1: 2)     You can let Lender keep 280,000 shares (280,000 x $5.00 = $1,400,000) leaving you with 720,000 shares valued at $3,600,000   OR 3)    You can use a combination of #1 and #2 above that adds up to $1,400,000 for the Lender, you still keep the $3,600,000. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 35

Growth Cap Scenario 2: : 

Growth Cap Scenario 2: At the end of the loan term, your shares have declined to $0.20 per share (total value of $200,000). So, you walk away and let the Lender keep the collateral and you keep the $500,000 cash. Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 36

In Summary : 

In Summary Hedge your position Don’t dilute the market No tax consequences Participate in the upside value Get the CASH you need NOW!!!! Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 37

Next Steps : 

Next Steps Complete an online application at www.fairmountequityadvisors.com or Call Today- 561-847-7665 Tel: 561-847-7665 ©Copyright MMX Fairmount Equity Advisors, Inc. All rights reserved. 38