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<SEC-DOCUMENT>0001089355-05-000099.txt : 20050517
<SEC-HEADER>0001089355-05-000099.hdr.sgml : 20050517
<ACCEPTANCE-DATETIME>20050516184505
ACCESSION NUMBER:		0001089355-05-000099
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050419
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050517
DATE AS OF CHANGE:		20050516

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIEBERT FINANCIAL CORP
		CENTRAL INDEX KEY:			0000065596
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		IRS NUMBER:				111796714
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-05703
		FILM NUMBER:		05836654

	BUSINESS ADDRESS:	
		STREET 1:		885 THIRD AVENUE
		STREET 2:		SUITE 1720
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		2126442400

	MAIL ADDRESS:	
		STREET 1:		885 THIRD AVENUE
		STREET 2:		SUITE 1720
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MICHAELS J INC
		DATE OF NAME CHANGE:	19950221
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>FORM 8K
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>

<BODY>


<DIV STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID .05EM;PADDING:0IN 0IN 1.0PT 0IN'>
<DIV STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID .25EM;PADDING:0IN 0IN 1.0PT 0IN'>
<FONT SIZE=1>&nbsp;</FONT></DIV></DIV><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="100%" VALIGN=TOP>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=4><B>UNITED STATES<BR>
  SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=3><B>WASHINGTON,
  D.C.&#160; 20549</B></FONT></P>
  </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT  SIZE=5><B>FORM 8-K</B><BR></FONT>
<FONT  SIZE=3><B>CURRENT REPORT</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=3><B>PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>Date of Report (Date of earliest
event reported) April 19, 2005</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=6><B>SIEBERT FINANCIAL CORP.</B><BR>
</FONT><FONT  SIZE=2>(Exact name of
registrant as specified in its charter)</FONT></P>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="33%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="33%" VALIGN=TOP>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="33%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2><B>New York</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2><B>000-5703</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2><B>11-1796714</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>(State or other jurisdiction<BR>
  of incorporation)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>(Commission File Number)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>(IRS Employer<BR>
  Identification No.)</FONT></P>
  </TD>
 </TR>
</table>

<BR>

<P ALIGN=CENTER><FONT  SIZE=2><B>885 Third Avenue<BR>
New York, New York 10022<BR></B>(Address of principal
executive offices)</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>Registrant&#146;s telephone number,
including area code: <B>(212) 644-2400</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Not Applicable</B><BR>(Former name or former address, if
changed since last report)</FONT></P>

<P><FONT SIZE=2>Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2 below):</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE=WINGDINGS>&#168;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE=WINGDINGS>&#168;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE=WINGDINGS>&#168;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR&#160; 240.14d-2(b))</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE=WINGDINGS>&#168;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))</FONT></P>
  </TD>
 </TR>
</table>

<P></P>
<DIV STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID .25EM;PADDING:0IN 0IN 1.0PT 0IN'>
<DIV STYLE='BORDER:NONE;BORDER-BOTTOM:SOLID .05EM;PADDING:0IN 0IN 1.0PT 0IN'>
<FONT SIZE=1>&nbsp;</FONT></DIV></DIV><BR>
<PAGE>


<P><FONT SIZE=2><B>Item
8.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Siebert
Financial Corp. (the &#147;<U>Company</U>&#148;), entered into an Operating Agreement,
dated effective as of April 19, 2005 (the &#147;<U>Agreement</U>&#148;), with Napoleon
Brandford III (&#147;<U>Brandford</U>&#148;) and Suzanne Shank (&#147;<U>Shank</U>&#148;) for SBS
Financial Products Company, LLC, a Delaware limited liability company (&#147;<U>SBS
LLC</U>&#148;), pursuant to which the Company, Brandford and Shank are the initial
members of SBS LLC.&#160; The Company,
Brandford and Shank each made an initial capital contribution of $400,000 in
exchange for a 33.33% initial interest in SBS LLC.&#160; SBS LLC was formed to engage in derivative transactions
including, (i) interest rate swap transactions, (ii) basis swaps, (iii) forward
interest rate transactions, (iv) bond options, (v) interest rate options, (vi)
interest rate cap transactions, (vii) interest rate floor transactions, (viii)
interest rate collar transactions or (ix) any other similar transaction or any
combination of transactions.&#160; SBS LLC
will not write any uncovered options.&#160;
It is expected that most swaps and derivative transactions will be
entered into by SBS LLC in connection with offerings of securities by
municipalities, states, counties, quasi-governmental organizations such as
airport authorities and similar entities. A copy of the Agreement is filed
herewith as Exhibit 10.1.&#160; The Company
also owns a 49% interest in Siebert, Brandford, Shank &amp; Co., LLC, an entity
engaged in the tax-exempt underwriting business, Shank and Brandford own the
remaining 51% of the equity in such entity. </FONT></P>

<P><FONT SIZE=2><B>Item
9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statements and Exhibits.</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Exhibits</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.1</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Operating
  Agreement of SBS Financial Products Company, LLC, dated effective as of April
  19, 2005, by and among Siebert Financial Corp., Napoleon Brandford III and
  Suzanne Shank.</FONT></P>
  </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT  SIZE=2>-2-</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT  SIZE=2><B>SIGNATURES</B></FONT></P>

<P><FONT SIZE=2>Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="50%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="39%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2><B>SIEBERT FINANCIAL CORP.</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By:&nbsp;&nbsp;&nbsp;&nbsp;/s/
  Jeanne M. Rosendale</FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Name:&nbsp;Jeanne
  Rosendale</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Title:&nbsp;&nbsp;&nbsp;Executive
  Vice President and General Counsel</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Date:&#160; May 16, 2005</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</table>

<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P><FONT SIZE=2><B>Exhibit Index</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="12%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="76%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>Exhibit
  Number</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>Description </FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


  </TD>
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.1</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Operating
  Agreement of SBS Financial Products Company, LLC, dated effective as of April
  19, 2005, by and among Siebert Financial Corp., Napoleon Brandford III and
  Suzanne Shank.</FONT></P>
  </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT  SIZE=2>-2-</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



</BODY>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>exhibit.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<TITLE></TITLE>
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<BODY>




<P ALIGN=RIGHT><FONT SIZE=2><B><U>EXHIBIT
10.1</U></B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>OPERATING
AGREEMENT</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>OF</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>SBS
FINANCIAL PRODUCTS COMPANY, LLC</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
OPERATING AGREEMENT (this &#147;<B>Agreement</B>&#148;) of SBS Financial Products
Company, LLC, a Delaware limited liability company (the &#147;<B>Company</B>&#148;), dated effective as
of April 19, 2005, is among Napoleon Brandford III, Suzanne F. Shank and
Siebert Financial Corp., a corporation organized and existing under the laws of
the State of New York (the &#147;<B>Initial</B> <B>Members</B>&#148;). Additional persons may be admitted as members of
the Company upon satisfaction of the conditions set forth herein and upon
execution and delivery to the Company of Supplemental Signature Pages in the
form attached to this Agreement as <B>Exhibit A,</B> whereupon they shall become parties to this Agreement.&#160; Each Person who is a
party to this Agreement
shall be called a &#147;<B>Member</B>.&#148;&#160;
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Persons signing this Agreement desire to establish their respective rights
and obligations pursuant to the Delaware Limited Liability Company Act in
connection with forming and operating the Company.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are acknowledged, the Persons signing this Agreement below agree as
follows:</FONT></P>
<P align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE I<BR>
DEFINITIONS</B></FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following terms used in this Agreement shall have the following meanings
(unless otherwise expressly provided therein):</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Act&#148;
shall mean the Delaware Limited Liability Company Act, as amended from
time to time. </FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Agreement&#148;
shall mean this Operating Agreement, as amended from time to time.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Business
Day&#148; shall mean any day other than Saturday, Sunday or any legal holiday
on which banks in New York, New York are closed.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Business
Plan&#148; shall mean the Business Plan dated as of March 29, 2005 and
incorporated herein as if fully set forth herein, or any other business plan
approved by the Members.&#160; </FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Capital
Account&#148; means the account established on the books and records of the Company
for each Member.&#160; Each Member&#146;s Capital
Account shall initially equal the value of the capital contribution to the
Company made by the Member.&#160; During the
term of the Company, each Member&#146;s Capital Account shall be (i) <u>increased</u> by
the amount of (w) income and gain</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



<P><FONT SIZE=2>allocated to the Member and (x) any cash or property
subsequently contributed by the Member to the Company, and (ii) <u>decreased</u> by
the amount of (y) loss and deduction allocated to the Member and (z) all cash
and property distributed to the Member, and shall otherwise be kept in
accordance with applicable United States Treasury Regulations promulgated under
Section 704(b) of the Code.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Certificate&#148;
shall mean the Certificate of Formation of the Company previously filed
with the Secretary of State of the State of Delaware, as amended or restated
from time to time.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Code&#148;
shall mean the Untied States Internal Revenue Code of 1986, as amended from
time to time.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Company&#148;
shall mean the Delaware limited liability company governed by this Agreement.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Company
Property&#148; shall mean any Property owned by the Company.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10&nbsp;&nbsp;&nbsp;&#147;Derivative
Transaction&#148; means the following: (i) interest rate swap transaction
utilizing an ISDA Master Agreement, Schedule and, if applicable, Credit Support
Annex customary in such transactions; (ii) basis swaps; (iii) forward interest
rate transactions; (iv) bond options, (v) interest rate options, (vi) interest
rate cap transactions, (vii) interest rate floor transactions, (viii) interest
rate collar transactions or (iv) any other similar transaction or any
combination of transactions.&#160; Under no
circumstances shall the Company write any uncovered options.&#160; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11&nbsp;&nbsp;&nbsp;&#147;Dissolution
Event&#148; shall mean any of the events described in Section 13 as causing a
dissolution of the Company.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12&nbsp;&nbsp;&nbsp;&nbsp;&#147;Entity&#148;
shall mean any general partnership, limited partnership, limited
liability company, corporation, joint venture, trust, business trust,
cooperative or other association or any foreign trust or foreign business
organization.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fiscal
Year&#148; shall mean for financial reporting and for federal income tax purposes
the calendar year.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14&nbsp;&nbsp;&nbsp;&#147;Initial
Members&#148; shall have the meaning set forth in the first paragraph of this
Agreement.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15&nbsp;&nbsp;&nbsp;&#147;Interests&#148;
shall mean a Member&#146;s equity interests in the Company together with the
attending rights thereto.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16&nbsp;&nbsp;&nbsp;&#147;Liquidation&#148;
shall mean the process of winding up the Company after its dissolution.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17&nbsp;&nbsp;&nbsp;&#147;Majority
of the Members&#148; shall mean, at any time, the Member or Members
(including any proxy holder acting on behalf of a Member) holding more than 50
percent of the</FONT></P>
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<P><FONT SIZE=2>Interest held by Members then entitled to vote, consent
to or otherwise decide any matter submitted to the Members.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18&nbsp;&nbsp;&nbsp;&nbsp;&#147;Member&#148;
shall mean each Member named herein and any Person that may hereafter become a
party to this Agreement, but only for so long as such Member is a Member under
the terms of this Agreement.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19&nbsp;&nbsp;&nbsp;&nbsp;&#147;Net
Cash Flow&#148; shall mean (i) all cash received by the Company from Company
operations for a fiscal period, including, without limitation, income from
invested reserves, but not including capital contributions by the Members;
minus (ii) all cash disbursed in such period in the ordinary course of the
business of the Company, including, without limitation, (a) all operating
expenses of the Company, (b) debt service on debt obligations of the Company;
(c) reserves required for regulatory purposes or pursuant to Derivative
Transactions; (d) reserves for tax liabilities; and (e) reserves established by
the Members.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20&nbsp;&nbsp;&nbsp;&nbsp;&#147;Percentage
Interest&#148; shall mean the percentage interest for each Member set forth
in Schedule 1 unless and until adjusted by agreement of the Members or, in
respect of any Member, reduced or increased by reason of any Transfer permitted
under this Agreement.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21&nbsp;&nbsp;&nbsp;&nbsp;&#147;Person&#148;
shall mean any natural Person or Entity, and the heirs, executors,
administrators, legal representatives, successors and assigns of each such
Person where the context so permits.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22&nbsp;&nbsp;&nbsp;&nbsp;&#147;Property&#148;
shall mean any property, real or personal, tangible or intangible, including
cash and any legal or equitable interest in such property, but excluding
services and promises to perform services in the future. </FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23&nbsp;&nbsp;&nbsp;&nbsp;&#147;Transfer&#148;
shall mean with respect to any interest in the Company, as a noun, any
voluntary or involuntary assignment, sale or other transfer or disposition of
such Interest (which shall include, without limitation and notwithstanding any
provision of the Act otherwise to the contrary, a pledge, or the granting of a
security interest, lien or other encumbrance in or against, any Interest in the
Company) and, as a verb, voluntarily or involuntarily to assign, sell or
otherwise transfer or dispose of such Interest.</FONT></P>
<P align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE II<BR>
ORGANIZATION AND PURPOSES OF COMPANY</B></FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Formation</U></B>.&#160; An
authorized person formed the Company as a limited liability company by
preparing, executing and filing with the Secretary of State of Delaware on
January 14, 2005 a Certificate of Formation of the Company pursuant to Section
18-201 of the Act.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Organization</U></B>.&#160;
The
Members hereby organize the Company and agree to conduct the Company&#146;s business
and affairs consistent with this Agreement, the Act and the Certificate.&#160; The Members shall from time to time
contribute such Property to the Company as is agreed upon by the Company and
the Members.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Powers and Purposes</U>.</B>&#160;
The
Company shall have all powers provided for in the Act.&#160; The Company&#146;s sole business and purpose
shall be to act as a derivative products company</FONT></P>
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<P><FONT SIZE=2>for the purpose of engaging in Derivative Transactions
and to engage in any lawful activities related thereto and permitted to limited
liability companies by the applicable laws and statutes for such entities of
the State of Delaware.&#160; The Company
shall take all actions as may reasonably be required by law, from time to time,
to carry out its purpose as stated in this Section 2.3.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No
Personal Liability</U></B>.&#160; The Company is a Delaware limited
liability company and not a sole proprietorship, or a general or limited
partnership.&#160; No Member shall have
personal liability for any Company operations, debts, obligations or liability
merely as a result of being a Member.&#160;
The failure of the Company to observe any formalities or requirements
relating to the exercise of its powers or management of its business or affairs
under this Agreement or the Act shall not be grounds for imposing personal
liability on the Members for the liabilities of the Company.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Principal Place of
Business</U></B>.&#160; The principal place of business of the
Company shall be 100 Wall Street, New York, New York&#160; 10005, or such other location as the Members may, from time to
time, select, provided that no such changes of location shall be made without
giving at least fifteen (15) days&#146; prior written notice thereof to the Members.</FONT></P>
<P align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE III<BR>
MANAGEMENT</B></FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Management
by Members</U></B>.&#160; The business and affairs of the
Company shall be managed by the Members as provided in this Agreement and the
Act.&#160; Each Member will devote to the
Company such time and attention as in the judgment of the Member is reasonably
necessary to manage and operate the affairs of the Company.&#160; </FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Compensation
and Reimbursement</U>.</B>&#160; Except as may otherwise be expressly
authorized by the Members, the Members will not receive any management fee or
other compensation or reimbursement from the Company for the management of the
Company. </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Indemnification</U></B>.&#160;
The
Company shall indemnify the Members to the fullest extent provided or allowed
by the laws of Delaware from and against all costs, losses, liabilities,
damages, claims and expenses (including, without limitation, attorneys&#146; fees
and costs as incurred on trial and on appeal) incurred in their capacity as
Members.&#160; Such indemnity shall&#160; cover claims arising from any Member&#146;s
actions or inactions taken or omitted in furtherance of the business or affairs
of the Company, but shall not eliminate or limit a Member&#146;s liability for:&#160; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
act or omission involving gross negligence, intentional misconduct or a knowing
violation of law;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
act or omission if the Member did not act in good faith or failed to act other
than in good faith, or acted or failed to act in a manner the Member reasonably
believed to be in or not opposed to the best interests of the Company;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
unlawful distribution under the Act; or </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
transaction between the Company and a Member from which a Member derives a
personal benefit if not expressly approved or ratified by the Members.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Ministerial Acts
by Members as Agents</U>.</B>&#160;The signature of any Member as authorized by
the Members shall be sufficient to acquire and convey title to any Company
Property or to execute any promissory note, security agreement, trust deed,
mortgage or other instrument of hypothecation, or any other agreement, contract
or document binding on the Company, and a copy of this Agreement and any
authorizing resolution or consent under Section 3.4 may be shown to the
appropriate parties in order to confirm the same.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Authority
of Members to Act</U>.</B>&#160; Except as authority may be delegated
from time to time as set forth in a written consent, all actions of the Company
shall require the approval of the Members, by unanimous vote or as otherwise
provided herein.&#160; The Members may from
time to time by resolution appoint officers of the Company and/or its divisions
and define their duties, which duties may be modified from time to time by
further resolution of the Members.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Title to
Company Property</U>.</B>&#160; All Property owned by the Company
shall be owned by the Company as an Entity and, insofar as permitted by
applicable law, no Member shall have any ownership interest in any Company
Property in its individual name or right and each membership or other ownership
interest in the Company shall be personal property for all purposes.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Separateness
Provisions</U>.</B>&#160; The Company shall:</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;maintain
books and records and bank accounts separate from those of any other Person or
Entity;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;maintain
its assets and liabilities in its own name and in such a manner that it is not
costly or difficult to segregate, identify or ascertain such assets and
liabilities;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;hold
itself out to creditors and the public as a legal entity separate and distinct
from any other Entity;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;hold
regular Member meetings, as appropriate, to conduct the business of the
Company, and observe all other legal formalities; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepare
separate tax returns and financial statements and not permit its assets or
liabilities to be listed as assets or liabilities on the financial statements
of any other Entity, or if part of a consolidated group, then it will be shown
as a separate member of such group; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;allocate
and charge fairly and reasonably the cost of any common employee or overhead
shared with an affiliate by entering into a Services Agreement with such
affiliate, such Services Agreement to be approved by the Members;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;transact
all business with affiliates on an arm&#146;s-length basis and pursuant to
enforceable agreements, the terms of which are intrinsically fair, commercially
reasonable and are no less favorable than would be obtained in a comparable
transaction with an unrelated third party;</FONT></P>
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<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
business in its own name, and use separate stationery, invoices and checks;</FONT></P>
<P CLASS=MSOHEADER><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not
commingle its assets or funds with those of any other Person or Entity;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not
assume, guaranty or pay the debts or obligations of any other Person or Entity
or hold out its credit as being available to satisfy the obligations of others;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;neither
make any loans or advances to any Person or Entity nor hold evidence of
indebtedness issued by any Person or Entity;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;timely
pay all of its tax obligations; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;pay
its own liabilities only out of its own funds;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;not
pledge its assets for the benefit of any other Person or Entity;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;pay
the salaries of its own employees, if any, and maintain a sufficient number of
employees in light of its contemplated business operations;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;correct
any known misunderstanding regarding its separate identity;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not
acquire any securities or obligations of its officers, directors, managers,
members or any affiliate;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cause
the Members and other representatives of the Company to act at all times with
respect to the Company consistent and in furtherance of the foregoing and in
the best interests of the Company while simultaneously considering the
interests of its creditors;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;maintain
adequate capital in light of the Company&#146;s contemplated business purpose,
transactions and liabilities;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;remain
solvent and pay all of its debts and liabilities from its assets as they become
due; and</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not
identify any of its Members or any affiliate thereof or any affiliate of the
Company as a division or part of the Company, and will not identify itself as a
division or part of any other Entity.</FONT></P>
<P  align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE IV<BR>
MEMBERS</B></FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Names and
Addresses</U>.</B>&#160; The names and addresses of the
Members are as set forth in Schedule 1 to this Agreement.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Initial
Contributions</U>.</B>&#160; Each of the Members has agreed to
make a contribution to the Company in the amount set forth opposite such
Member&#146;s name on <b>Schedule 1</B> hereto in exchange for the Percentage Interest also
set forth opposite such Member&#146;s name on <B>Schedule 1</B> hereto. </FONT></P>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Additional
Contributions</U>.</B>&#160; Except as provided in the Act or as
authorized pursuant to Section 5.3 hereof, no Member will be required to make
any additional capital contributions or restore any deficit to its Capital
Account.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Withdrawal
of Capital</U>.</B>&#160; Except as specifically provided in
this Agreement, no Member will be entitled to withdraw all or any part of such
Person&#146;s Capital Account from the Company prior to the Company&#146;s dissolution
and Liquidation or to demand a distribution of property or money.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No
Interest on Capital</U>.</B>&#160; No Member will be entitled to receive
interest on such Person&#146;s Capital Account or any capital contribution. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Admission
of Member</U>.</B>&#160; With the unanimous approval of the
Members, the Company may permit additional Persons to contribute capital and
become Members of the Company; provided, that any such Person shall first
execute and deliver a Supplemental Signature Page in the form of <B>Exhibit A</B>
agreeing to be bound by all the terms and conditions of this Agreement.&#160; Upon the making of the capital contribution,
and the execution and delivery of the Supplemental Signature Page, a Capital
Account shall be established and such Person shall become a Member of the
Company with all of the rights and obligations provided for by this
Agreement.&#160; <B>Schedule 1</B> of this Agreement will be amended accordingly.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Resignation
of Member</U>.</B>&#160; No Member may be permitted to resign
without the consent of the Members.&#160;
However, effective as of the end of each of the 2006 and 2007 Fiscal
Years of SBSFPC, Siebert Financial Corp. may resign without the consent of the
other Members by giving no less than thirty (30) days&#146; prior written notice to
the other Members and the other Members shall purchase the Interest of Siebert
Financial Corp. on the terms set forth below; <U>provided</U>, <U>however</U>, that no such
resignation shall be permitted if SBSFPC is Insolvent (as defined below).</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SBSFPC
shall be &#147;Insolvent&#148; if SBSFPC:</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;becomes
insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;makes
a general assignment, arrangement or composition with or for the benefit of its
creditors;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;institutes
or has instituted against it a proceeding seeking a judgment or insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors&#146; rights, or a petition is presented for its
winding-up or liquidation; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;is
the subject of a unanimous resolution of its members authorizing (A) its
dissolution or the determination of any plan for winding up the business and
affairs of the SBSFPC or liquidating the assets of SBSFPC after dissolution, or
(B) the filing by SBSFPC of a petition in bankruptcy or the taking of any other
action by SBSFPC in relief from creditors or under any bankruptcy or insolvency
law; or</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

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<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;is
in continuing default under a swap agreement as a result of which the
non-defaulting party to the swap agreement has the ability to accelerate
SBSFPC&#146;s obligations under the swap agreement.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
such resignation shall be effective at the close of business on December 31 of
the Fiscal Year in which such notice is given.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of such resignation, the other Members shall purchase the Interest of
Siebert Financial Corp. for a purchase price equal to Siebert&#146;s Capital Account
balance at the close of business on the December 31 on which such resignation
is effective (the &#147;<B>Purchase Price</B>&#148;).</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ten
per cent (10%) of the Purchase Price shall be payable by the other Members on
the December 31 on which the resignation is effective, and ninety percent (90%)
of the Purchase Price shall be payable by the other Members, without interest,
within ninety (90) days of the December 31 on which the resignation is
effective.&#160; If any portion of the
Purchase Price is not paid when due, the unpaid portion shall bear interest at
10% per year and be payable by the defaulting Member to Siebert Financial Corp.
upon demand.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
other Members shall pay the Purchase Price in proportion to their Interests, or
as they otherwise may agree, and their Capital Accounts shall be adjusted accordingly.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Outside
Business Ventures</U>.</B>&#160; Any Member may engage in or possess
an interest in other business ventures of any nature or description,
independently or with others, except business ventures which are competitive
with the business of the Company or which detract from such Member&#146;s handling
of the Company&#146;s business. The Company and the Members shall have no rights by
virtue of this Agreement in and to such independent ventures or the income or
profits derived therefrom, and the pursuit of any such venture shall not, by
itself, be deemed wrongful or improper.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Representation
and Warranties</U>.</B>&#160; Each Member hereby represents and
warrants to the Company and each other Member that: (a) if that Member is an
Entity, it is duly organized, validly existing, and in good standing under the
law of its state of organization and that its has full organizational power to
execute and agree to this Agreement and to perform its obligations hereunder,
(b) the Member is acquiring its ownership interest in the Company for the
Member&#146;s own account as an investment and not for distribution, and (c) the
Member has such knowledge and sophistication in financial affairs that it is
able to assess the risks of investing in the Company.</FONT></P>
<P  align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE V<BR>
VOTING RIGHTS; MEETINGS OF MEMBERS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>
<U>Voting Rights</U>.</B>&#160;Each Member
entitled to vote may exercise by vote or consent that number of votes equal to
his, her or its Percentage Interest multiplied by 100.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Approval
of Members</U>.</B>&#160;With respect to any action or
transaction that requires the approval, consent, ratification or authorization
of the Members under the Act or this</FONT></P>
<P align=center  CLASS=TCHEADING1BODY STYLE=' PAGE-BREAK-AFTER:AUTO'><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2>Agreement, the Members shall first use their
reasonable best efforts to reach consensus approval of such action or
transaction, but such action or transaction (other than actions and transactions
described in Section 5.3) ultimately may be authorized upon the affirmative
vote of a Majority of the Members unless the Act or this Agreement expressly
imposes a higher standard for approval by the Members, in which case the
specified approval of the Members shall be required for such action or
transaction.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Matters Requiring
Unanimous Approval</U>.</B>&#160; Notwithstanding anything in this Agreement
to the contrary, the following Company actions require the unanimous approval
of the Members:</FONT></P>
<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Members</I></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
admission of a new Member;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;permitting
a Transfer of an Interest other than to a Member;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;requiring
a Member to contribute any additional amount to the Company or loan funds to
the Company;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;permitting
a Member to withdraw any part of its Capital Account or receive any
distribution of capital;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adjusting
the Percentage Interest of any Member (except a proportional adjustment due to
a Transfer) or the right of any Member to receive a distribution;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;designating
any committee of Members, and the members of such committee;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;distributions
to Members other than annual distributions of Net Cash Flow and determination
of the amount of reserves in calculating the annual distribution of Net Cash
Flow;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compensation,
whether in the form of salary, bonus or otherwise, of Members and officers of
the Company;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;election
of officers of the Company;</FONT></P>
<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
Transactions</I></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
sale, lease, exchange or transfer of all or substantially all of the assets of
the Company;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
merger or consolidation of the Company with or into any other Person;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
borrowing of any money or the incurrence of any Company debt other than trade
payables;</FONT></P>
<P align=center   CLASS=TCHEADING1BODY STYLE=' PAGE-BREAK-AFTER:AUTO'><FONT SIZE=2>9</FONT></P>

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<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;the
making of any capital expenditure or the purchase of any capital asset (except
in accordance with the Business Plan);</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
mortgage, assignment, pledge or hypothecation of, or grant of a lien on or
security interest in, any of the Company&#146;s property and assets;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
entering into of any services agreement with an affiliate of the Company;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
delegation to a Member or officer of the Company of the authority to take any
action on behalf of the Company that is subject to this Section 5.3.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
transaction involving the Company and a Member who will benefit from the
transaction;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
dissolution of the Company or the determination of any plan for winding up the
business and affairs of the Company or liquidating the assets of the Company
after dissolution;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
filing by the Company of a petition in bankruptcy or the taking of any other
action by the Company in relief from creditors or under any bankruptcy or
insolvency law.</FONT></P>
<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Company
Business</I></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
conversion of the Company into another form of business entity.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
acquisition or operation of any business other than entering into Derivative
Transactions;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
entry of the Company into any other material transactions or Company
participation in other activities not in the ordinary course of the Company&#146;s
business;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
approval of an annual budget and Business Plan of the Company for Fiscal Year
2006 and thereafter, and any material deviation from any Business Plan;</FONT></P>
<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivatives
Transactions</I></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;entering
into of any Derivative Transaction;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;entering
into agreements with the back-end providers and transaction transfer
agreements, each as contemplated by the Business Plan.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
modification of the &#147;Transaction Approval Process for Company&#148; set forth in
Article VII hereof;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;establishment
of written supervisory and compliance procedures for the Company with respect
to Derivative Transactions and any amendments or changes thereto;</FONT></P>

<P align=center  CLASS=TCHEADING1BODY STYLE=' PAGE-BREAK-AFTER:AUTO'><FONT SIZE=2>10</FONT></P>

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<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</I></FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;appointment
or removal of the Tax Matters Representative (as that term is defined in
Section 15.4 of this Agreement); and </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;amendment
of this Agreement or the Certificate.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Meetings and
Written Consents of Members</U>.</B>&#160; The following rules shall govern meetings
and action by written consent of the Members:</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
meeting of the Members shall be held annually for the transaction of such
business as may properly come before the Members at such meeting.&#160; The annual meeting of the Members shall be
held on the third Tuesday in March or at such other time as shall be determined
by the vote or written consent of a Majority of the Members, except that no
annual meeting need be held if all actions required by this Agreement to be
taken at an annual meeting of Members are taken by written consent in lieu of a
meeting pursuant to Section 5.4(i).</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Member may call a meeting of the Members upon at least 10 Business Days&#146; prior
notice to all Members stating the time, place and, briefly, the purpose of the
meeting.&#160; The place specified in any
such notice shall be any place designated by the Members as the location for
meetings of the Members or, if no such designation has been made, the principal
executive office of the Company.&#160; The
attendance of a Member at a meeting shall constitute a waiver of objection to
lack of notice or defective notice of the meeting, unless the Member objects at
the beginning of the meeting to holding the meeting or transacting business at
the meeting.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
each meeting of the Members, except as otherwise required by the Act, a
Majority of the Members, represented in person or by proxy, shall constitute a
quorum for the transaction of business.&#160;
In the absence of a quorum at any meeting of Members, Members holding a
majority of the votes so represented may adjourn the meeting for a period not
to exceed ten (10) days without further notice.&#160; If the adjournment is for more than ten (10) days, or if after
the adjournment a new record date is fixed for the adjourned meeting, a notice
of the adjourned meeting shall be given to each Member of record entitled to
vote at such meeting.&#160; At a rescheduled
meeting at which a quorum shall be present or represented, any business may be
transacted that might have been transacted at the meeting as originally
noticed.&#160; The Members present at a
meeting at which a quorum initially is present may continue to transact business
until adjournment, notwithstanding the withdrawal during the meeting of a
Person or Persons holding votes whose absence results in less than a quorum
being present.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
waiver of notice by a Member, given either before or after a meeting, shall be
equivalent to the giving of notice of the meeting to such Member.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Member that has an interest in the outcome of a matter submitted to the Members
for a vote may vote and have such vote counted upon such matter.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Member may by a written proxy signed by the Member or by a duly authorized
attorney-in-fact authorize any Person to act for such Member with respect to
any matter in which the Member is entitled to participate, whether the same be
waiving notice of any meeting, voting, participating at a meeting or executing
any written consent.&#160; Any such proxy
shall be filed with the Company before or at the time of the meeting.&#160; No proxy shall be valid</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

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<P><FONT SIZE=2>after the expiration of 12 months from the date
thereof unless otherwise provided in the proxy.&#160; The appearance of a Member in Person at a meeting shall void any
outstanding proxy for so long as such Member is in attendance.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
record date for purposes of determining the Members entitled to notice of, or
to vote at, a meeting shall be the Business Day prior to the date on which
notice of the meeting is mailed or otherwise delivered.&#160; The record date for determining Members
entitled to take action without a meeting shall be the date the first Member
(or proxy holder) signs the written consent. </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Members
may participate in or conduct meetings through telephonic or other means of
communication by which all Members participating may simultaneously communicate
with each other.&#160; Participation in a
meeting by any such means shall constitute presence in Person at such meeting. </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Members
may take any action without a meeting by a written consent describing the
action taken and signed by such Members (or proxy holders) then entitled to
vote as are sufficient to approve such action.&#160;
Any such consent shall be delivered to the Company for inclusion in the
Company records. Action by written consent shall be effective when the
necessary Members (or proxy holders) have signed the consent, unless the
consent specifies a different effective date.</FONT></P>
<P   align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE VI<BR>
OFFICERS</B></FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Chairperson and
Vice Chairperson</U>.</B></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Chairperson shall be the Chairperson of Members and the Chairperson shall
preside at all meetings of the Members and shall perform such other duties and
exercise such other powers as may from time to time be prescribed by the
Members.&#160; At each annual meeting of the
Members at which a quorum is present, the Member receiving the greatest number
of votes shall be Chairperson until his or her successor is elected at the next
annual Members meeting or until his or her resignation or removal in accordance
with Section 6.3 hereof in which event his replacement shall become Chairperson
for the remainder of his or her term.&#160;
Suzanne Shank initially shall serve as the Chairperson.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the absence of the Chairperson, the Vice Chairperson shall be the Vice Chairperson
of the Members and shall preside at all meetings of the Members.&#160; The Vice Chairperson shall perform such
other duties and exercise such other powers as may from time to time be
prescribed by Members.&#160; At each annual
meeting of the Members at which a quorum is present, the Member receiving the
greatest number of votes shall be Vice Chairperson until his or her successor
is elected at the next annual Members meeting or until his or her resignation
or removal in accordance with Section 6.3 hereof in which event his or her
replacement shall become Vice Chairperson for the remainder of his or her
term.&#160; Napoleon Brandford initially
shall serve as the Vice-Chairperson.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Election,
Appointment and Term of Office</U>.</B></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
officers of the Company shall be a President, Treasurer and Secretary who shall
be chosen by and hold office at the pleasure of the Members.&#160; Each officer shall hold office until the
next annual meeting of the Members and until his or her successor is appointed
or until his or her earlier death, or his or her earlier resignation or removal
in the manner hereinafter provided.&#160; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Initial officers shall be:</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John
Carter, President</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suzanne
Shank, Treasurer</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Catherine
Corrigan, Secretary</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Members may appoint such other officers as they deem necessary, including one
or more Vice Presidents, Assistant Vice Presidents, Assistant Treasurers and
Assistant Secretaries.&#160; Each such
officer shall have such authority and shall perform such duties as may be
provided herein or as the Members may prescribe.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
additional officers are elected or appointed during the year, each of them
shall hold office until the next annual meeting of the Members and until his or
her successor is appointed or until his or her earlier death, resignation or
removal.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Resignation,
Removal and Vacancies</U>.</B></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
officer may resign at any time by giving written notice to the Chairperson, the
President or the Secretary of the Company, and such resignation shall take effect
at the time specified therein or, if the time when it shall become effective
shall not be specified therein, when accepted by action of the Members.&#160; Except as aforesaid, the acceptance of such
resignation shall not be necessary to make it effective. </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
officers and agents elected or appointed by the Members shall be subject to
removal at any time by the Members, with or without cause.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Duties and
Functions</U>.</B></FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>President</U>.&#160;
The President shall be the chief executive
officer of the Company and shall have the supervision and control over, and
responsibility for, the day-to-day management of the operations of the Company,
subject to the general policy directions of the Chairperson and the Members,
and shall see that all orders and resolutions of the Members are carried out
and put into effect.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
President shall be responsible for preparing an annual budget and business
plan, and for submitting the annual budget and Business Plan to the Members for
their approval, prior to the commencement of each Fiscal Year beginning with
2006.</FONT></P>
<P align=center  CLASS=TCHEADING1BODY STYLE=' PAGE-BREAK-AFTER:AUTO'><FONT SIZE=2>13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
President shall also be responsible for developing written supervisory and compliance
procedures, which will be reasonably designed to prevent violation of
applicable law and to ensure that the Company&#146;s policies concerning Derivative
Transactions are complied with, and which shall address:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" style="font-size: 10pt">
 <TR style="font-size:1px">
  <TD  VALIGN=TOP>
  <P></P></TD>
  <TD  VALIGN=TOP>
  <P></P></TD>
 </TR>
 <TR>
  <TD WIDTH="10%" VALIGN=TOP>
  <P>&nbsp;</P></TD>
  <TD WIDTH="90%" VALIGN=TOP>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk
  management and analysis (including derivative risk, credit risk and legal
  risk), risk allocation and bankruptcy remoteness procedures to be applicable
  to all Derivative Transactions;</P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Documentation
  to be provided to Transaction Approval Committee in seeking approval of
  Derivative Transactions;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P CLASS=MSODATE><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintaining
  exemptions from Commodity Exchange Act and Commodity Futures Trading
  Commission regulation;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Training
  of all Company personnel as to the Company&#146;s policies and procedures
  concerning Derivative Transactions;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  kinds and amount of insurance to be obtained in connection with Derivative
  Transactions and procuring and maintaining such insurance.</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk
  disclosures to municipal issuers;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policy
  and criteria for recommending swap advisors to municipal issuers;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pricing
  guidelines for each Derivative Transaction, including pricing
  appropriateness;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Establishment
  of record retention requirements;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hiring
  policy, including sharing employees of affiliated companies;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;&nbsp;&nbsp;&nbsp;Disaster
  Recovery and Business Continuity Plans;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use
  of credit and risk analyst in connection with each Derivative Transaction;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policies
  on insider trading, front-running and anti-money laundering; and</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD  VALIGN=TOP>
  <P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identifying
  the person or persons responsible for supervision and compliance;</FONT></P></TD>
 </TR>
</table>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Treasurer</U>.&#160;
The Treasurer shall keep and maintain, or
cause to be kept and maintained, adequate and correct accounts of the
properties and business transactions of the</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



<P><FONT SIZE=2>Company, including accounts of its assets,
liabilities, receipts, disbursements, gains, losses, capital, surplus and
Percentage Interests.&#160; The Treasurer
shall disburse the funds of the Company as may be ordered by the Chairperson,
the Members or the President, taking proper vouchers for such disbursements and
shall render to the Chairperson, the Members and the President, whenever they
shall so request, an account of all of his or her transactions as Treasurer and
of the financial condition of the Company.&#160;
The Treasurer shall be responsible for assisting the President in the
preparation of an annual budget and Business Plan prior to the commencement of
each Fiscal Year beginning with 2006.</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Secretary</U>.&#160;
The Secretary shall give or cause to be
given notice of all meetings of the Members and the Members and keep the
records of all meetings of the Members and the Members.&#160; The Secretary shall be custodian of all
contracts, deeds, documents and all other indicia of title to properties owned
by the Company and of its other records and in general shall have all powers
incident to the office of Secretary and perform such duties as may be
prescribed by the Members or the President, under whose supervision he or she
shall be.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Committees
of Members</U>.</B>&#160;The Members
may authorize one or more committees, each committee to consist of one or more
of the Members of the Company and may also include non-Members.</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Powers
and Duties of Committees</U>.</B>&#160;
Any committee, to the extent provided in the resolution or resolutions
creating such committee, shall have and may exercise the powers of the Members
in the management of the business and affairs of the Company and may authorize
the seal of the Company to be affixed to all papers which may require it.</FONT></P>
<P  align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE VII<BR>
TRANSACTION APPROVAL PROCESS FOR COMPANY</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Transaction
Approval Committee</U>.</B>&#160;The Members shall appoint the
Transaction Approval Committee.&#160; This
Transaction Approval Committee will be comprised of the Members and any other
individuals appointed by the Members.&#160;
The Transaction Approval Committee must approve, by unanimous vote and
recommendation to the Members, each Derivative Transaction to be entered into
by the Company.&#160; Each Derivative
Transaction approved by the Transaction Approval Committee shall be submitted
to the Members for their approval by unanimous vote, as required by Section 5.3
hereof.&#160; The Company may not enter into
any Derivatives Transaction absent the review and approval of the Transaction
Approval Committee.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
initial members of the Transaction Approval shall be:</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nick
Dermigny</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;Jeanne
Rosendale</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;Joseph
Ramos (Alternate member in the absence of either Nick Dermigny or Jeanne
Rosendale)</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;John
Carter</FONT></P>

<P align=center  CLASS=TCHEADING1BODY STYLE=' PAGE-BREAK-AFTER:AUTO'><FONT SIZE=2>15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;David
Thomson</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;Catherine
Corrigan</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;Peter
Wong (Alternate member in the absence of either Catherine Corrigan or David
Thomson)</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;Suzanne
Shank (Alternate member in the absence of either Catherine Corrigan or David
Thomson)</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Approved
Swap Counterparties</U>.</B>&#160;Unless otherwise approved by the
Members, the back-end provider in each Derivatives Transaction must be a major
financial entity with an initial minimum credit rating of AA3 (Moody&#146;s) or A +
(Standard &amp;Poor&#146;s).</FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Risk
Allocation Requirements</U>.</B>&#160; As set forth in Sections 7.1 through
7.4 of the Business Plan, for each Derivative Transaction entered into by the
Company,</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Back-End Provider will assume the risk of a municipality&#146;s (i) credit
downgrading, resulting in its falling below investment grade, (ii) default and
(iii) bankruptcy provided, however, that in the case of a municipality&#146;s
default, the Company may assume liability for amounts up to future amounts
payable to the Company under the Back-End Transactions after the initial
payment to the Company is made; </FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
Transaction Transfer Agreement will be entered into substituting the Back-end
Provider for the Company in the event of a Company default;</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
order to hedge against the risks of any downgrade of the Back-end Provider&#146;s
credit rating or default by the Back-end Provider:</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;appropriate
requirements to post additional collateral will be imposed upon the Back-End
Provider; and</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company will seek to have the municipality agree that it will bear the credit
risk, without recourse to the Company, in the event of the credit downgrade or
credit default of the Back-end Provider; provided, however, that the Company
may agree to indemnify municipalities for such losses after exhausting its
remedies against the Back-end Provider; and</FONT></P>
<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Company shall seek diversification by seeking to use multiple Back-end
Providers.</FONT></P>

<P   align=center CLASS=TITLEBC STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN;PAGE-BREAK-AFTER: AUTO'><FONT SIZE=2><B>ARTICLE VIII<BR>
CONFLICTS OF INTEREST</B></FONT></P>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Benefits from
Company Transactions</U>.</B>&#160;Unless approved by the Members, each Member
shall account to the Company and hold as trustee for the Company any benefit or
any profits derived by such Member from any transaction connected with the
formation, conduct or winding up of the Company or from any use of Company
Property by such Member, including,</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>without
limitation, any information developed for the Company or any opportunity
offered to the Company.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Loans and
Other Transactions with Company</U>.</B>&#160; The rights and obligations of a Member that lends money to or
transacts business with the Company shall be the same as those of a Person that
is not a Member, subject to applicable law.&#160;
No transaction with the Company shall be voidable solely because a
Member has a direct or indirect interest in the transaction if the transaction
is expressly permitted by this Agreement or is approved or ratified as provided
in this Agreement or in the Act.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE IX<BR>
DISTRIBUTIONS AND ALLOCATIONS</B></FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Distributions</U>.</B>&#160;
Net Cash Flow if any,
shall be distributed to the Members in accordance with their Percentage
Interests.&#160; Unless the Members
unanimously agree otherwise, all Net Cash Flow of the Company shall be
distributed by the Company at least annually. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Tax
Allocations</U>.</B>&#160; Net profits and losses
of the Company, and each item of Company income, gain, loss, deduction or
credit (including items required to be separately stated pursuant to Section
703(a)(1) of the Code) shall be allocated among the Members in accordance with
their Percentage Interests.&#160; Allocations
under this Section 9.2 shall be made pursuant to the principles of Sections
704(b) and 704(c) of the Code, and in conformity with Regulations Sections
1.704-1(b)(2)(iv)(f), 1.704-1(b)(4)(i) and 1.704-3(e), as applicable, or the
successor provisions to such Section and Regulations.&#160; Notwithstanding anything to the contrary in this Agreement, there
shall be allocated to the Members such gains or income as shall be necessary to
satisfy the &#147;qualified income offset&#148; requirement of Regulations Section
1.704-1(b)(2)(ii)(d).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Change in
Percentage Interest</U>.</B>&#160; If
there is a change in the Percentage Interest of any Member during any Fiscal
Year, allocations of income, gain, loss, deduction or credit among the Members
shall be made pro rata in accordance with the Percentage Interest held by each
Member from time to time during such year in accordance with Section 706 of the
Code using the closing-of-the-books method, except that depreciation,
amortization and similar items shall be deemed to accrue ratably on a daily basis
over the entire Fiscal Year if the corresponding asset is owned by the Company
for the entire Fiscal Year, and over the portion of a year after such asset is
acquired by the Company if such asset is acquired during the Fiscal Year. </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE X<BR>
ACCOUNTING PERIOD AND METHOD</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Accounting Period
and Accounting Method</U>.</B>&#160; The
accounting period of the Company shall be the Fiscal Year.&#160; For income tax and financial accounting
purposes, the Company will use the accrual method of accounting.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XI<BR>
TRANSFER OF INTERESTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Conditions to
Transfer</U></B>.&#160; No
Transfer of an Interest (other than to a party to this Agreement) shall be
permitted, and no purported Transfer shall be effective (i) unless approved</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>17</FONT></P>


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<P><FONT SIZE=2>by the
unanimous consent of the Members and (ii) until the transferee has executed a
Supplemental Signature Page in the form of <B>Exhibit A</B> agreeing to be bound by all terms
and conditions of this Agreement.&#160; All
parties agree that upon execution and acceptance of such an agreement, the
transferee shall have the rights and obligations of a Member under this
Agreement.&#160; No Transfer shall be
permitted unless the Company is satisfied that such Transfer does not require
registration under the Securities Act of 1933 or any state securities laws.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Right of
First Refusal</U>.</B>&#160; In
addition to the other limitations and restrictions set forth herein, no Member
shall Transfer all or any portion of its Interests (the &#147;Offered Interests&#148;) to
a Person who is not another Member, a wholly owned affiliate of another Member
or a wholly owned Affiliate of the transferor and no consent to Transfer will
be given, unless such Member (the &#147;Seller&#148;) first offers to sell the Offered
Interests pursuant to the terms of this 11.2.&#160;
</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Limitation on Transfers</U>.&#160; No Transfer may be made under this 11.2
unless the Seller has received a bona fide written offer (the &#147;Purchase Offer&#148;)
from a Person (the &#147;Purchaser&#148;) to purchase the Offered Interests for a
purchase price (the &#147;Offer Price&#148;) denominated and payable in United States
dollars at closing or according to specified terms, with or without interest,
which offer shall be in writing signed by the Purchaser and shall be
irrevocable for a period ending no sooner than the Business Day following the
end of the Offer Period, as hereinafter defined.&#160; </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Offer Notice</U>.&#160; Prior to making any Transfer that is subject to the terms of this
11.2, the Seller shall give to each other Member written notice (the &#147;Offer
Notice&#148;) which shall include a copy of the Purchase Offer and an offer (the
&#147;Firm Offer&#148;) to sell the Offered Interests to the other Members or to the
Company (the &#147;Offerees&#148;) for the Offer Price, payable according to the same
terms as (or more favorable terms than) those contained in the Purchase Offer,
provided that the Firm Offer shall be made without regard to the requirement of
any earnest money or similar deposit required of the Purchaser prior to
closing, and without regard to any security (other than the Offered Interests)
to be provided by the Purchaser for any deferred portion of the Offer
Price.&#160; </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Offer Period</U>.&#160; The Firm Offer shall be irrevocable for a period (the &#147;Offer
Period&#148;) ending at 11:59 P.M., local time at the Company&#146;s principal place of
business, on the thirtieth (30th) day following the day of the Offer
Notice.&#160; </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceptance of Firm Offer</U>.&#160; At any time during the Offer Period, any
Offeree may accept the Firm Offer as to all or any portion of the Offered
Interests, by giving written notice of such acceptance to the Seller and each
other Offeree, which notice shall indicate the maximum Percentage of Interests
that such Offeree is willing to purchase.&#160;
In the event that Offerees (&#147;Accepting Offerees&#148;), in the aggregate,
accept the Firm Offer with respect to all of the Offered Interests, or an
amount which , when aggregated, would exceed the amount of the Offered
Interests, the Firm Offer shall be deemed to be accepted and each Accepting
Offeree shall be deemed to have accepted the Firm Offer as to that portion of
the Offered Interests that corresponds to the ratio of the Interests that such
Accepting Offeree indicated a willingness to purchase to the aggregate number
of Interests all Accepting Offerees indicated a willingness to purchase.&#160; If Offerees do not accept the Firm Offer as
to all of the Offered Interests during the Offer Period, the Firm Offer shall
be deemed to be rejected in its entirety.&#160;
</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>18</FONT></P>


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<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing of Purchase Pursuant to Firm Offer</U>.&#160; In the event that the Firm Offer is
accepted, the closing of the sale of the Offered Interests shall take place
within thirty (30) days after the Firm Offer is accepted or, if later, the date
of closing set forth in the Purchase Offer.&#160;
The Seller and all Accepting Offerees shall execute such documents and
instruments as may be necessary or appropriate to effect the sale of the
Offered Interests pursuant to the terms of the Firm Offer and this Article XI. &#160;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sale Pursuant to Purchase Offer If Firm
Offer Rejected</U>.&#160; If the Firm Offer
is not accepted in the manner hereinabove provided, the Seller may sell the
Offered Interests to the Purchaser at any time within sixty (60) days after the
last day of the Offer Period, provided that such sale shall be made on terms no
more favorable to the Purchaser than the terms contained in the Purchase Offer
and provided further that such sale complies with other terms, conditions, and
restrictions of this Agreement.&#160; In the
event that the Offered Interests is not sold in accordance with the terms of
the preceding sentence, the Offered Interests shall again become subject to all
of the conditions and restrictions of this 11.2.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Effect of
Purported Transfer</U></B>.&#160; Any
purported Transfer in violation of Section 11.1 shall be null and void and
shall not affect the beneficial ownership of an Interest.&#160; Thus, the Member making the purported
Transfer will retain the right to vote and the right to receive dividends and
liquidation proceeds.&#160; Additionally, if
applicable, a Member making the purported Transfer shall continue to report the
portion of income or loss allocated by the Company to the Member in accordance
with the provisions of the Code then in effect.&#160; Each Member agrees that any such Transfer or acquisition may and
should be enjoined.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XII<BR>
DISSOLUTION</B></FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Dissolution</U></B>.&#160;
Dissolution of the
Company will occur upon the happening of any of the following events (each, a &#147;<B>Dissolution
Event</B>&#148;):</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the unanimous consent of all of the Members;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the entry of a decree of judicial dissolution
pursuant to Section 18-802 of the Act.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Events
Not Causing Dissolution</U></B>.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the maximum extent permitted by law, the
Dissolution Events are the exclusive events that may cause the company to
dissolve.&#160; The bankruptcy (including any
event of bankruptcy described in Section 18-304 of the Act), death,
dissolution, liquidation, termination or adjudication of incompetence of a
Member (each, a &#147;Member Event&#148;) shall not cause the termination or dissolution
of the Company and, in any such event, the business of the Company shall
automatically continue without any action on the part of the remaining Members
until the Company is otherwise dissolved and terminated pursuant to the terms
of this Agreement.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of a Member Event, the
trustee, receiver, executor, administrator, committee, guardian or conservator
of such Member
shall have all the rights of </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>19</FONT></P>


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<P><FONT SIZE=2>such Member for the purpose of settling or
managing its estate or property, but shall not be admitted as a Member except
with the consent of the remaining Members in their sole discretion.&#160; Any such trustee, receiver, executor,
administrator, committee, guardian or conservator shall be deemed an assignee
of the Member entitled to receive such distributions, to share in such profits
and to receive such allocations of income, gain, loss, deduction, credit, tax
preference and similar items to which the Member was entitled, but shall not be
entitled to become a Member or to exercise any rights or powers of a Member,
including without limitation any voting rights, with respect to such Membership
Shares.&#160; Any such assignee shall
nevertheless be bound by the covenants of this Agreement applicable to Members,
including without limitation the restrictions on Transfer and rights of first
refusal.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XIII<BR>
LIQUIDATION</B></FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Liquidation</U>.</B>&#160;
Upon dissolution of the
Company, the Company will immediately proceed to wind up its affairs and
liquidate.&#160; The Liquidation of the
Company will be accomplished in businesslike manner by such Person or Persons
designated by the Members, which Person(s) shall be entitled to reasonable
compensation therefor.&#160; A reasonable
time will be allowed for the orderly Liquidation of the Company and the
discharge of liabilities to creditors so as to enable the Company to minimize
any losses attendant upon Liquidation.&#160;
Any gain or loss on disposition of any Company assets in Liquidation
will be allocated among the Members and credited or charged to the Member in
accordance with the provisions of this Agreement.&#160; Until the filing of a certificate of cancellation under Section
18-203 of the Act and without affecting the liability of Members and without
imposing liability on the liquidating trustee, the Person or Persons conducting
the liquidation may settle and close the Company&#146;s business, prosecute and
defend suits, dispose of its property, discharge or make provision for its
liabilities, and make distributions in accordance with the priorities set forth
in Section 14.2.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Priority of
Payment</U>.</B>&#160; The
assets of the Company will be distributed in Liquidation in the following
order:&#160; </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
creditors, including Members who are creditors, by the payment or provision for
payment of the debts and liabilities of the Company and the expenses of Liquidation;
</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the setting up of any reserves that are
reasonably necessary for any contingent or unforeseen liabilities or
obligations of the Company; and </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the Members pro rata in proportion to the
balances in the Capital Accounts.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Timing</U>.</B>&#160;
Final distributions in
Liquidation will be made as promptly as practicable.&#160; Payments of distributions in Liquidation may be made to a
liquidating trust established by the Company for the benefit of those entitled
to payments under Section 14.2 in any manner consistent with this Agreement and
the Act.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Liquidating
Reports</U>.</B>&#160; A
report will be submitted with each liquidating distribution to the Members,
showing the collections, disbursements and distributions during the</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>20</FONT></P>


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<P><FONT SIZE=2>period which
is subsequent to any previous report.&#160; A
final report, showing cumulative collections, disbursements and distributions,
will be submitted upon completion of the liquidation process.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>13.5&nbsp;<B>&nbsp;&nbsp;&nbsp;&nbsp;<U>Certificate
of Cancellation</U>.</B>&#160; Within
ninety (90) days following the Dissolution of the Company and the commencement
of winding up of its business, or at any other time there are no Members, the
Company will file a certificate of cancellation (to cancel the Certificate of
Formation) with the Secretary of State of the State of Delaware pursuant to the
Act.&#160; At such time, the Company will
also file an application for withdrawal of its certificate of authority in any
jurisdiction where it is qualified to do business.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Deficit
Capital Account</U>.</B>&#160; Upon a
liquidation of the Company, if any Member has a negative balance in his or her
Capital Account (after giving effect to all contributions, distributions,
allocations and other adjustments for all Fiscal Years, including the Fiscal
Year in which such liquidation occurs), the Member shall have no obligation to
make any Capital Contribution, and the negative balance of any Capital Account
shall not be considered a debt owed by the Member to the Company or to any
other person for any purpose.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Nonrecourse
to Other Members</U>.</B>&#160; Except
as provided by applicable law or as expressly provided in this Agreement, upon
Dissolution, each Member shall receive a return of his or her Capital Contribution
solely from the assets of the Company.&#160;
If the assets of the Company remaining after the payment or discharge of
the debts and liabilities of the Company is insufficient to return any Capital
Contribution of any Member, such Member shall have no recourse against any
other Member.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XIV<BR>
BOOKS, RECORDS AND ACCOUNTINGS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Books and
Records</U>.</B>&#160; The Company
shall maintain records and accounts of all operations and expenditures of the
Company.&#160; The books and records shall be
maintained in accordance with sound accounting practices and shall be
appropriate and adequate for the Company&#146;s business. At a minimum the Company
shall keep at its principal place of business the following records:</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a current list of the full name and last known
business, residence or mailing address of each Member, both past and present;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a copy of the Certificate, together with
executed copies of any powers of attorney pursuant to which any amendment has
been executed;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;copies of the Company&#146;s federal, state and
local income tax returns and reports, if any, for the three most recent years;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;copies of the Company&#146;s currently effective
written Operating Agreement and all amendments thereto, copies of any writings
permitted or required under the Act, and copies of any financial statements of
the Company for the three most recent years;</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>21</FONT></P>


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<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;minutes of every meeting of the Members and
any consents obtained from Members for actions taken without a meeting; and </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the extent not contained in this Agreement,
a statement that describes (i) the amount of cash and a description and
statement of the agreed value of other Property or consideration contributed by
each Member or that each Member has agreed to contribute in the future, (ii)
the times at which or events on the occurrence of which any additional
contributions agreed to be made by each Member, if any, are to be made and
(iii) if agreed upon, the time at which or the events upon which the Company is
to be dissolved and its affairs wound up.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Reports</U>.</B>&#160;
Within 90 days after the end of each Fiscal
Year of the Company, the Company shall furnish to each Member an annual report
consisting of at least the following to the extent applicable:</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a copy of the Company&#146;s federal income tax
return for that Fiscal Year;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;profit and loss statements;</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a balance sheet showing the Company&#146;s
financial position as of the end of that Fiscal Year; and </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any additional information that the Members
may require for the preparation of their individual federal and state income
tax returns.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, if the Company indemnifies or advances expenses to a Member in
connection with a proceeding by or in the right of the Company, the Company
shall report the indemnification or advance in writing to the Members.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Rights of
Members; Inspection</U>.</B>&#160;
Each Member, shall have the right to receive the reports and information
required to be provided by the Act, the Certificate or this Agreement.&#160; Upon reasonable request, each Member, and
any authorized representative of any Member, shall have the right, during
ordinary business hours, to inspect and copy, at the requesting Member&#146;s
expense, the books and records that the Company is required to maintain and
keep by the Act, the Certificate or this Agreement.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XV<BR>
TAX MATTERS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Taxation
of Company</U>.</B>&#160; The Company
shall be treated as a partnership for Federal income tax purposes, and shall
elect to be characterized as a partnership under the check-the-box regulations
by filing the appropriate form with its first income tax return.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Federal
Tax Returns</U>.</B>&#160; The Company
shall cause the Company&#146;s accountant to prepare, at the expense of the Company,
for each Fiscal Year (or part thereof), Federal tax returns in compliance with
the provisions of the Code and any required state and local tax returns.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>22</FONT></P>


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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Member
Tax Return Information</U>.</B>&#160;
The Company, at its expense, shall cause to be delivered to each Member
such information as shall be necessary (including a statement for that year of
each Member&#146;s share of net income, net losses and other items of the Company)
for the preparation by the Members of their Federal, state and local income and
other tax returns. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Tax
Matters Representative</U>.</B>&#160; </FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John Carter shall act as the Company&#146;s initial
&#147;Tax Matters Representative&#148; for purposes of the Code and shall have the power
to manage and control, on behalf of the Company, any administrative proceeding
at the Company level with the Internal Revenue Service relating to the
determination of any item of Company income, gain, loss, deduction or credit
for federal income tax purposes.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Tax Matters Representative shall, within
five (5) Business Days of the receipt of any notice from the Internal Revenue
Service in any administrative proceeding at the Company level relating to the
determination of any Company item of income, gain, loss, deduction or credit,
mail a copy of such notice to each Member.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XVI<BR>
ADOPTION AND AMENDMENT</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall be adopted and be effective only upon execution by the Members.
This Agreement and the Certificate may be amended, restated or modified from
time to time by a Majority of the Members then entitled to vote, consent to or
otherwise decide any matter submitted to the Members, as determined pursuant to
this Agreement; <I>provided </I>that any
amendment that would change Sections 3.1, 3.7 or 5.3, or change a required
voting percentage for approval of any matter or a Member&#146;s voting rights shall
require unanimous approval.&#160; No Member
shall have any vested rights in this Agreement that may not be modified from
time to time through an amendment to this Agreement.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>ARTICLE XVII<BR>
MISCELLANEOUS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Application
of Delaware Law and Consent to Jurisdiction</U>.</B>&#160; This Agreement, and the application or
interpretation hereof, shall be governed exclusively by its terms and by the
laws of Delaware, and specifically the Act, without regard to conflict of law
rules.&#160; Each Member hereby irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York in
the Borough of Manhattan and the federal courts of the&#160; Southern District of New York with respect
to litigation relating to any dispute arising out of this Agreement and
consents to service of process by the mailing of copies to the Member by
certified mail to the Member&#146;s address as it appears on <B>Schedule 1</B>, as it may be
amended from time to time by written notice from the Member.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Construction</U>.</B>&#160;
Whenever required by the context in this
Agreement, the singular number shall include the plural and vice versa, and any
gender shall include the masculine, feminine and neuter genders.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>23</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Counterparts;
Facsimiles</U>.</B>&#160; This
Agreement may be executed in counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same instrument.&#160; Facsimile signatures of the parties on this
Agreement or any amendment of this Agreement shall be deemed original
signatures, and each Member or other party shall forward the original signed
version of such document promptly following facsimile transmission.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Waiver of
Partition</U>.</B>&#160; Each Member
specifically waives any direct or indirect right of partition such Member may
have or may hereafter acquire that would enable such Member to cause any
Company Property to be the subject of a suit for partition.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Remedies
for Breach</U>.</B>&#160; Unless
otherwise set forth herein, the rights and remedies of the Members set forth in
this Agreement are neither mutually exclusive nor exclusive of any right or
remedy provided by law, in equity or otherwise.&#160; The Members agree that all legal remedies (such as monetary
damages) as well as equitable remedies (such as specific performance) will be
available for any breach or threatened breach of any provision of this
Agreement.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Costs</U>.</B>&#160; If
the Company or any Member retains counsel
for the purpose of enforcing or preventing the breach or any threatened breach
of any provision of this Agreement or for any other remedy relating to it, then
the prevailing party will be entitled to be reimbursed by the nonprevailing
party for all costs and expenses so incurred (including reasonable attorney&#146;s
fees, costs of bonds, and fees and expenses for expert witnesses).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Execution
of Additional Instruments</U>.</B>&#160;
Each Member hereby agrees to execute such other and further statements
of interest and holdings, designations, powers of attorney and other
instruments necessary to effectuate the purposes of this Agreement or comply
with any laws, rules or regulations applicable to the Company.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Headings</U>.</B>&#160;
The headings in this Agreement are inserted
for convenience only and are in no way intended to describe, interpret, define
or limit the scope, extent or intent of this Agreement or any provision hereof.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Heirs,
Successors and Assigns</U>.</B>&#160;
Each and all of the covenants, terms, provisions and agreements
contained in this Agreement shall be binding upon and inure to the benefit of
the parties and, to the extent permitted by this Agreement, their respective
heirs, legal representatives and permitted successors and assigns.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Notices
and Consents, etc</U>.</B>&#160; Any
notice, demand or communication required or permitted to be given by any
provision of this Agreement shall be in writing and shall be deemed to have
been sufficiently given or served for all purposes if delivered to the party or
to an executive officer of the party to which the same is directed or, if sent
by registered or certified mail, postage and charges prepaid, addressed to the
Member&#146;s address, as shown in the records of the Company.</FONT></P>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Severability</U>.</B>&#160;
If any provision of this Agreement or the
application thereof to any Person or circumstance shall be invalid, illegal or
unenforceable to any extent, the remainder of this Agreement and the
application thereof shall not be affected and shall be enforceable to the
fullest extent permitted by law.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>24</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Waivers</U>.</B>&#160;
The failure of any party to seek redress for
violation of or to insist upon the strict performance of any covenant or
condition of this Agreement shall not prevent a subsequent act, which would
have originally constituted a violation, from having the effect of an original
violation.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Entire
Agreement</U>.</B>&#160; The
Certificate, this Agreement and any other document to be furnished pursuant to
the provisions hereof embody the entire agreement and understanding of the
parties as to the subject matter contained herein. There are no restrictions,
promises, representations, warranties, covenants or undertakings other than
those expressly set forth or referred to in such documents. This Agreement and
such documents supersede all prior agreements and understandings with respect
to the subject matter hereof.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>[This Page Intentionally Ends Here]</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>25</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF</B>, the Members have executed this
Agreement effective as of the date first set forth above.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="50%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="46%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Initial
  Members:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By: &nbsp;/s/
  Napoleon Brandford, III </FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Napoleon
  Brandford, III, an individual</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By: &nbsp;/s/
  Suzanne F. Shank</FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Suzanne F.
  Shank, an individual</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>SIEBERT
  FINANCIAL CORP., a New York corporation </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By: &nbsp;/s/
  Muriel F. Siebert</FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Name: Muriel
  F. Siebert</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Title:&nbsp;&nbsp;Chairwoman, CEO and President</FONT></P>
  </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT  SIZE=2>S-1</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT  SIZE=2><B>Exhibit A</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Supplemental Signature Page</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Supplemental Signature Page to the Operating Agreement dated as of April 19,
2005, of SBS Financial Products Company LLC, a Delaware limited liability
company (the &#147;<B>Agreement</B>&#148;), is
executed, delivered and accepted as of the date set forth below.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned is hereby designated as a Member under, and agrees to be bound by,
the terms of the Agreement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated:
____________, 200__.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="50%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="46%" COLSPAN="2" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>MEMBER:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Print Name:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>ACCEPTED:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>SBS
  Financial Products Company, LLC, Member</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By:&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Name:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>Title:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By: &nbsp;</FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Suzanne F.
  Shank, Member</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P><FONT SIZE=2>By: </FONT></P>
  </TD>
 </TR>
 <TR style="font-size:1 px">
  <TD  VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Napoleon
  Brandford, III, Member</FONT></P>
  </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT  SIZE=2>S-2</FONT></P>


<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P ALIGN=CENTER><FONT  SIZE=2><B>Schedule 1</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>CONTRIBUTIONS, ETC.</B></FONT></P>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="61%" VALIGN=BOTTOM>
  <P><font size=1><B>Initial Member&#160; and Address</B></FONT></P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="10%" COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><font size=1><B>Initial
  Capital Contribution</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><font size=1><B>Initial <BR>
  Percentage Interest</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="10%" COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><font size=1><B>Initial
  Number of Votes</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Napoleon
  Brandford<BR>
  1999 Harrison Street, Suite 2720<BR>
  Oakland, California&#160; 94612</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>400,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Suzanne
  Shank<BR>
  660 Woodward Avenue, Suite 2450 <BR>
  Detroit, Michigan&#160; 48226</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>400,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Siebert
  Financial Corp.<BR>
  885 Third Avenue<BR>
  Suite 1720<BR>
  New York, New York&#160; 100022</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>400,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>TOTAL</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>1,200,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>100</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>12,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT SIZE=2>S-3</FONT></P>


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