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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-Q



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|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended March 31, 2006

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

Commission file number 000-24713



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EBS PENSION, L.L.C.

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Delaware                                                       |  | 42-1466520                             
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)

Sixth and Marquette; N9303-120

Minneapolis, Minnesota 55479

(Address of principal executive offices)

(612) 667-4803

(Registrants telephone number, including area code)



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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12B-2 of the Securities Exchange Act of 1934).    Yes  x    No ̈

At May 13, 2006, there were 10,000,000 Class A Membership Units outstanding and no Class B Membership Units outstanding.



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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EBS PENSION, L.L.C.

Statements of Operations

For the
Three Month Periods

Ended March 31, 2006 and 2005



|                                                          |  |             |        |             |   |         |  
|--------------------------------------------------------- |  | ----------- | ------ | ----------- | - | ------- | -
|                                                          |  | 2006        |        | 2005        |  
|                                                          |  | (unaudited) |        | (unaudited) |  
|Income                                                    |  |             |        |             |   |         |  
|Litigation income                                         |  | $           |       |             | $ |        |  
|Interest                                                  |  |             | 27,445 |             |   | 13,393  |  
|                                                          |  |             |        |             |   |         |  
|Total income                                              |  | $           | 27,445 |             | $ | 13,393  |  
|                                                          |  |             |        |             |   |         |  
|Expenses                                                  |  |             |        |             |   |         |  
|Manager fees                                              |  | $           | 12,500 |             | $ | 12,500  |  
|Transfer agent and administration fees                    |  |             | 6,500  |             |   | 9,500   |  
|Accounting fees                                           |  |             | 7,500  |             |   | 7,500   |  
|Legal fees                                                |  |             | 500    |             |   | 300     |  
|Other                                                     |  |             | 73     |             |   | 70      |  
|                                                          |  |             |        |             |   |         |  
|Total expenses                                            |  |             | 27,073 |             |   | 29,870  |  
|                                                          |  |             |        |             |   |         |  
|Net income (loss)                                         |  | $           | 372    |             | $ | (16,477 | )
|                                                          |  |             |        |             |   |         |  
|Net income (loss) per membership unit - basic and diluted |  | $           | 0.000  |             | $ | (0.002  | )
|                                                          |  |             |        |             |   |         |  

The accompanying notes are an integral part of these financial statements.



2



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EBS PENSION, L.L.C.

Balance Sheets

March 31, 2006 and December 31, 2005



|                                                                                                                   |  |               |           |                  |   |          
|------------------------------------------------------------------------------------------------------------------ |  | ------------- | --------- | ---------------- | - | ---------
|                                                                                                                   |  | March 31,2006 |           | December 31,2005
|                                                                                                                   |  | (unaudited)   |           |                 
|Assets                                                                                                             |  |               |           |                  |   |          
|Cash and cash equivalents                                                                                          |  |               |           |                  |   |          
|Available for general operations                                                                                   |  | $             | 1,490,543 |                  | $ | 1,481,952
|Returned member distributions                                                                                      |  |               | 37,039    |                  |   | 37,039   
|Available for anticipated cost of legal indemnification of officers                                                |  |               | 1,500,000 |                  |   | 1,500,000
|Interest receivable                                                                                                |  |               | 9,950     |                  |   | 8,452    
|Prepaid expenses                                                                                                   |  |               | 121       |                  |   | 193      
|                                                                                                                   |  |               |           |                  |   |          
|Total assets                                                                                                       |  | $             | 3,037,653 |                  | $ | 3,027,636
|                                                                                                                   |  |               |           |                  |   |          
|Liabilities                                                                                                        |  |               |           |                  |   |          
|Distribution payable                                                                                               |  | $             | 37,039    |                  | $ | 37,039   
|Accrued expenses                                                                                                   |  |               | 658,529   |                  |   | 648,884  
|                                                                                                                   |  |               |           |                  |   |          
|Total liabilities                                                                                                  |  |               | 695,568   |                  |   | 685,923  
|                                                                                                                   |  |               |           |                  |   |          
|Commitments and contingencies (Note 6)                                                                             |  |               |           |                  |   |          
|                                                                                                                   |  |              
|Members equity                                                                                                    |  |               |           |                  |   |          
|Membership Units (Class A - 10,000,000 authorized, issued and outstanding at March 31, 2006 and December 31, 2005) |  |               |          |                  |   |         
|Paid-in capital                                                                                                    |  |               | 1,667,492 |                  |   | 1,667,492
|Retained earnings                                                                                                  |  |               | 674,593   |                  |   | 674,221  
|                                                                                                                   |  |               |           |                  |   |          
|Total members equity                                                                                              |  |               | 2,342,085 |                  |   | 2,341,713
|                                                                                                                   |  |               |           |                  |   |          
|Total liabilities and members equity                                                                              |  | $             | 3,037,653 |                  | $ | 3,027,636
|                                                                                                                   |  |               |           |                  |   |          

The accompanying notes are an integral part of these financial statements.



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EBS PENSION, L.L.C.

Statements of Changes in Members Equity

For the Periods Ended

March 31, 2006 and December 31, 2005



|                                    |  |                        |  |                |           |                           |   |         |       |  |   |           |  
|----------------------------------- |  | ---------------------- |  | -------------- | --------- | ------------------------- | - | ------- | ----- |  | - | --------- | -
|                                    |  | Class AMembershipUnits |  | Paid-inCapital |           | RetainedEarnings(Deficit) |   |         | Total | 
|Balance, December 31, 2004          |  | 10,000,000             |  | $              | 1,667,492 |                           | $ | 697,182 |       |  | $ | 2,364,674 |  
|Net loss                            |  |                       |  |                |          |                           |   | (22,961 | )     |  |   | (22,961   | )
|                                    |  |                        |  |                |           |                           |   |         |       |  |   |           |  
|Balance, December 31, 2005          |  | 10,000,000             |  |                | 1,667,492 |                           |   | 674,221 |       |  |   | 2,341,713 |  
|Net income (unaudited)              |  |                       |  |                |          |                           |   | 372     |       |  |   | 372       |  
|                                    |  |                        |  |                |           |                           |   |         |       |  |   |           |  
|Balance, March 31, 2006 (unaudited) |  | 10,000,000             |  | $              | 1,667,492 |                           | $ | 674,593 |       |  | $ | 2,342,085 |  
|                                    |  |                        |  |                |           |                           |   |         |       |  |   |           |  

The accompanying notes are an integral part of these financial statements.



4



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EBS PENSION, L.L.C.

Statements of Cash Flows

For the Three Months Ended March 31, 2006 and 2005



|                                                                                   |  |             |           |   |             |   |           |  
|---------------------------------------------------------------------------------- |  | ----------- | --------- | - | ----------- | - | --------- | -
|                                                                                   |  | 2006        |           |   | 2005        |  
|                                                                                   |  | (unaudited) |           |   | (unaudited) |  
|Cash flows from operating activities                                               |  |             |           |   |             |   |           |  
|Net income (loss)                                                                  |  | $           | 372       |   |             | $ | (16,477   | )
|Reconciliation of net income (loss) to cash flows provided by operating activities |  |             |           |   |             |   |           |  
|Decrease in prepaid expenses                                                       |  |             | 72        |   |             |   | 70        |  
|Increase in interest receivable                                                    |  |             | (1,498    | ) |             |   | (1,392    | )
|Increase in accrued expenses                                                       |  |             | 9,645     |   |             |   | 24,100    |  
|                                                                                   |  |             |           |   |             |   |           |  
|Cash flows provided by operating activities                                        |  |             | 8,591     |   |             |   | 6,301     |  
|                                                                                   |  |             |           |   |             |   |           |  
|Net increase in cash and cash equivalents                                          |  |             | 8,591     |   |             |   | 6,301     |  
|Cash and cash equivalents at beginning of period                                   |  |             | 3,018,991 |   |             |   | 2,992,109 |  
|                                                                                   |  |             |           |   |             |   |           |  
|Cash and cash equivalents at end of period                                         |  | $           | 3,027,582 |   |             | $ | 2,998,410 |  
|                                                                                   |  |             |           |   |             |   |           |  

The accompanying notes are an integral part of these financial statements.



5



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EBS PENSION, L.L.C.

Notes to Financial Statements

March 31, 2006 and 2005 and December 31, 2005



|1. | Description of Business
|-- | -----------------------

EBS Pension, L.L.C. (the
Company) is governed by a Members Agreement, dated as of September 25, 1997 (the Members Agreement). Pursuant to the Members Agreement, the Company is organized for the exclusive purposes of (a) receiving and
administering the cash proceeds (the Pension Plan Proceeds) to be received by Edison Brothers Stores, Inc. (Edison) and its affiliated debtors in possession (collectively with Edison, the Debtors) as a result of
the termination of the Edison Brothers Stores, Inc. Pension Plan (the Pension Plan), net of (i) the Pension Plan assets transferred to qualified replacement pension plans, (ii) all costs, fees and expenses relating to
termination of the Pension Plan and establishment of the replacement plans, and (iii) all applicable taxes incurred or for which a reserve is established in connection with termination of the Pension Plan (the Pension Plan Tax
Reserve), and (b) distributing such assets to holders of Class A Membership Units (the Members) in accordance with the Members Agreement.

Section 1.4 of the Companys Members Agreement originally limited the Companys existence to three years, subject to extension(s) approved by the Bankruptcy Court for good cause shown. In September 2000
and once again in September 2002, the Bankruptcy Court granted the Companys motions to extend the existence of the Company for additional two-year terms. In September 2004, the Company filed a motion with the Bankruptcy Court to reopen the
bankruptcy case of Edison for the limited purpose of extending the term of the Company. The Court approved the motion at that time, extending the existence of the Company for an additional two-year term.

Following satisfaction of administrative expenses, any funds remaining on deposit will be made available for distribution to holders of Class A
Membership Units. In addition, any remaining balance of the $1.5 million Indemnification Reserve, if any, ultimately would be available for such distribution.

At the end of 2005, EBS Litigation began preparations for its dissolution. The Company is preparing for the concurrent winding-up of its business and a final distribution to its members in accordance with the Members
Agreement. In that connection, the Manager expects to make one or more distributions to the Class A Membership Unit holders in the fiscal year ending December 31, 2006, and to pay or provide for the anticipated remaining expenses,
liabilities, and contingencies of the Company. The Company will make the appropriate filings with Delaware state authorities, federal and state authorities, and the United States Securities and Exchange Commission in connection with the dissolution.



|2. | Summary of Significant Accounting Policies
|-- | ------------------------------------------

This
summary of significant accounting policies is presented to assist in evaluating the Companys financial statements included in this report. These policies conform to accounting principles generally accepted in the United States. The preparation
of financial statements in conformity with generally accepted accounting principles requires that management make estimates and assumptions that impact the reported amounts of assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Adjustments are of a normal and recurring nature. Actual results could differ from those estimates.

Basis of Presentation

These financial statements include the accounts of the Company for the periods
from January 1, 2005 through December 31, 2005, January 1, 2005 through March 31, 2005 (unaudited) and January 1, 2006 through March 31, 2006 (unaudited).

Cash and Cash Equivalents

Cash and
cash equivalents consists of amounts held in an account in the Companys name at a highly-rated financial institution, along with U.S. Treasury Securities purchased and held in the Companys name with maturities of three months or less.
The Company places its temporary cash investments with high credit quality financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit.



6



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EBS PENSION, L.L.C.

Notes to Financial Statements

March 31, 2006 and 2005 and December 31, 2005

The Companys cash and cash equivalents, excluding the $37,039 of returned member distributions, plus any portion of Pension Plan Tax Reserve that
may ultimately be received by the Company, will be used for general operations and for the anticipated cost of legal indemnification of the officers of Edison as contemplated by the Members Agreement and for collecting the Pension Plan Tax
Reserve from Edison. Any amounts not used for these purposes will be made available for future distributions to holders of Class A Membership Unitholders.

Accrued Expenses

Accrued expenses include amounts for unpaid legal, tax, accounting, manager and
transfer agent fees. Amounts are payable within one year.

Interest

Interest income is determined on the accrual basis. Interest receivable is due to be received within one year.

Expenses

All expenses of the Company
are recorded on the accrual basis of accounting.

Income Taxes

The Company is not subject to taxes. Instead, the Members report their distributive share of the Companys profits and losses on their respective
income tax returns.



|3. | Distribution Payable
|-- | --------------------

In August 1999, $225,018 of
proceeds distributed to Members in February 1998 was returned, as the checks issued did not clear the bank. In June 2000, $37,039 of proceeds distributed to Members in February 1998 was returned, as the checks issued did not clear the bank. In
October 2002, the August 1999 proceeds were remitted to the applicable states unclaimed property funds in the form of escheatment payments. The remaining $37,039 is held by the Company and is available for the respective members to claim.
These funds will eventually escheat to the state in which they were distributed according to that states statutory period for unclaimed property.



|4. | Members Equity
|-- | ---------------

On September 25, 1997,
Edison transferred the right to receive the net cash proceeds from the termination of the Pension Plan in exchange for 10,000,000 Class B Membership Units of the Company, which represented all of the outstanding Membership Units of the Company. The
Net Pension Plan Proceeds (as defined by the Plan of Reorganization or the Plan) amounted to $44.0 million at December 31, 1997 and were due from Edison at that date. Pursuant to the Plan, an additional amount of $5.7 million
for the Pension Plan Tax Reserve is being held by Edison to satisfy certain fees and tax liabilities of Edison. The Plan of Reorganization further provided that upon receipt of a private letter ruling (the Tax Ruling) from the Internal
Revenue Service (the IRS) indicating that no tax liability existed necessitating release of funds from the Pension Plan Tax Reserve, that Edison should remit such funds to the Company. On September 28, 1998, the IRS issued the Tax
Ruling. See Note 6 hereof for further discussion of the Pension Plan Tax Reserve.

On December 12, 1997, in accordance with the Members
Agreement and the Plan of Reorganization, Edison exchanged 9,058,041 Class B Membership Units for 9,058,041 Class A Membership Units of the Company and simultaneously distributed such Class A Membership Units to holders of Allowed General
Unsecured Claims (as defined in the Plan).



7



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EBS PENSION, L.L.C.

Notes to Financial Statements

March 31, 2006 and 2005 and December 31, 2005

During 1998, Edison paid $44.0 million to the Company in satisfaction of the Companys receivable recorded at December 31, 1997. Of this
amount, $39.4 million was distributed to Class A Members during 1998, $1.5 million is retained for the anticipated cost of legal indemnification of the officers of Edison, and the remaining amount was retained for other anticipated expenses
expected to be incurred by the Company.

During 1998, Edison exchanged 942,238 Class B Membership Units for 942,238 Class A Membership
Units of the Company and simultaneously distributed such units to holders of Allowed General Unsecured Claims.

Also during 1998, certain
holders of Class A Membership Units returned 279 Class A Membership Units to Edison as such Membership Units had been distributed in error. The distribution proceeds relating to these returned Membership Units are included in paid in
capital and are available for future distributions to holders of Class A Membership Units. Currently, Edison has no Class B Membership Units.

On February 21, 2002, the parties executed a settlement agreement (the Settlement Agreement), that was approved by the Court on March 14, 2002. Pursuant to the Settlement Agreement, Edison agreed to distribute to the
Company cash equal to thirty-four percent (34%) of its pre-petition claim of $5,740,000, or $1,951,600, payable within three days after the Settlement Agreement becomes final. The Settlement Agreement further provides that additional
distributions will be made to the Company at such time, if ever, as the distributions to all holders of allowed general unsecured claims against the Debtors exceed twenty-one percent (21%) of their allowed claims. Thereafter, the Company will
receive on account of its remaining claim, distributions equal to the Companys pro rata share (based upon its remaining claim of $3,788,400) of all distributions over twenty-one percent (21%) on a pro rata basis with all general unsecured
claims.

On April 17, 2002, the Company received the cash settlement of $1,951,600 or thirty-four percent (34%) of its
pre-petition claims. On May 31, 2002, the Company distributed $1,541,390 to holders of Class A Membership Units.

The following
table sets forth the computation of basic and diluted income (loss) per unit for the periods ended:



|                                           |      |                                      |            |             |   |            |  
|------------------------------------------ | ---- | ------------------------------------ | ---------- | ----------- | - | ---------- | -
|                                           |      | For the three months ended March 31, |           
|                                           | 2006 |                                      | 2005       |            
|                                           |      | (unaudited)                          |            | (unaudited) |  
|Numerator                                  |      |                                      |            |             |   |            |  
|Net income (loss) - basic and diluted      |      | $                                    | 372        |             | $ | (16,477    | )
|                                           |      |                                      |            |             |   |            |  
|Denominator                                |      |                                      |            |             |   |            |  
|Weighted-average units outstanding - basic |      |                                      | 10,000,000 |             |   | 10,000,000 |  
|Effect of potentially dilutive units       |      |                                      |           |             |   |           |  
|                                           |      |                                      |            |             |   |            |  
|Units outstanding - diluted                |      |                                      | 10,000,000 |             |   | 10,000,000 |  
|                                           |      |                                      |            |             |   |            |  
|Basic and diluted income (loss) per unit   |      | $                                    | 0.000      |             | $ | (0.002     | )
|                                           |      |                                      |            |             |   |            |  



|5. | Related Parties
|-- | ---------------

The Manager of the Company is the
same financial institution that holds the Companys cash and cash equivalents.



8



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EBS PENSION, L.L.C.

Notes to Financial Statements

March 31, 2006 and 2005 and December 31, 2005



|6. | Commitments and Contingencies
|-- | -----------------------------

On March 9,
1999, Edison filed for protection under Chapter 11 of the Bankruptcy Code (the Petition Date). Prior to the Petition Date, Edison had not yet released the Pension Plan Tax Reserve to the Company. Therefore, Edisons Chapter 11
filing may have a materially adverse impact on the collectibility of the Pension Plan Tax Reserve discussed in the first paragraph of Note 4 above. The Company has continued to pursue the receipt of these proceeds; however no judgment as to the
amount, if any, to be received has been made at this time, except for the $1,951,600 discussed in Note 4.

On April 23, 1999, the
Company filed a complaint (the Complaint) against Edison seeking a declaration that Edison is holding the Pension Plan Tax Reserve in constructive trust for the Company and it is not part of Edisons bankruptcy. On June 16,
1999, the Company filed a motion for summary judgment with respect to the Complaint. Edison filed a cross motion for summary judgment on July 30, 1999. A hearing (the Hearing) on the Companys summary judgment motion was held
on December 7, 1999 in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court). At the Hearing, the Bankruptcy judge denied both summary judgment motions citing the existence of genuine issues of
material fact, but, in so holding, determined that Edison was holding the Pension Plan Tax Reserve in constructive trust for the Company. After the Hearing, the Company and Edison made several attempts to resolve this matter without the need for
trial, but were unsuccessful in these efforts. Both Edison and the Company have submitted pleadings in support of entry of judgment in favor of their respective positions.

On or about April 28, 2000, the Debtors filed a Motion for an Order Directing the Appointment of a Chapter 11 Trustee Pursuant to Section 1104 of the Bankruptcy Code. The Bankruptcy Court conducted a hearing
on this motion on May 16, 2000 and then entered an Order approving it shortly thereafter. On May 30, 2000, the United States trustee for the District of Delaware applied for an order appointing a Chapter 11 Trustee in the Debtors
Chapter 11 cases. The Bankruptcy Court granted the application on the same day. Thereafter, on June 16, 2000, the Chapter 11 Trustee filed a Motion to Convert Case to Chapter 7 Pursuant to Sections 1112(a) and (b) of the Bankruptcy Code,
which motion was approved by order of the Bankruptcy Court dated July 5, 2000.

On October 17, 2000, the Debtors and the Company
stipulated to a schedule pursuant to which they would each submit to the Bankruptcy Court a motion for entry of judgment with respect to the Complaint (the Scheduling Stipulation). The Scheduling Stipulation also provided that each party
would be permitted to submit an answer brief and a subsequent reply brief. Further, under the Scheduling Stipulation, the parties waived their right to request an oral argument on their respective motions for judgment. The parties filed and served
the appropriate pleadings in accordance with the Scheduling Stipulation. On October 11, 2001, the Bankruptcy Court concluded that the Company could not establish a nexus between the alleged trust and the assets sought by the Company.

On May 29, 2002, the Chapter 7 Trustee of Edison Brothers Stores, Inc. (the Trustee) filed a Motion in the Bankruptcy
Court for an Order Approving, among other things, the sale of shares of Principal Financial Group, Inc. stock (the Principal Stock), free and clear of all liens, claims and encumbrances (the Motion). On June 11, 2002,
the Company filed a limited objection (the Limited Objection) to the Motion. In the Limited Objection, the Company sought to preserve its rights, if any, with respect to the Principal Stock or the proceeds thereof. On June 18, 2002,
the Bankruptcy Court granted the Motion as provided in the Order subject to the Companys Limited Objection. The Bankruptcy Court indicated that the proceeds of the sale of the Principal Stock were to be held by the Trustee in a segregated
account subject to further order of the Bankruptcy Court and the Companys right to assert an interest in said proceeds.

On
November 14, 2002, Alan M. Jacobs, the Pension Plans Trustee, filed a motion (the 9019 Motion) pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure in the Bankruptcy Court requesting that the court approve a
settlement and release agreement (the Principal Stock Settlement Agreement) by and between the Trustee and the Company. The Principal Stock Settlement Agreement contemplates that in exchange for mutual releases between the Trustee, on
behalf of the Debtors, and the Company with regard to the Principal Stock, the Trustee, on behalf of



9



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EBS PENSION, L.L.C.

Notes to Financial Statements

March 31, 2006 and 2005 and December 31, 2005

the Debtors, will distribute thirty percent of the net cash proceeds from the sale of the Principal Stock to the Company. The Principal Stock Settlement
Agreement also contemplates the Company paying its pro rata share of any taxes, if any, assessed in connection with the sale of the Principal Stock. Mr. Bernard Edison filed an objection to the 9019 motion. The Bankruptcy Court heard the
motion, the objection and the evidence on January 8, 2003. Based upon the evidence presented, the Bankruptcy Court granted the Trustees 9019 Motion and approved the Principal Stock Settlement Agreement in full.

Mr. Edison appealed (the Appeal) the Bankruptcy Courts order approving the Settlement Agreement on January 31, 2003, and
thereafter filed a Statement of Issue on February 27, 2003. On March 18, 2003, the Trustee filed a motion (the Second 9019 Motion) pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure in the Bankruptcy Court
requesting that the court approve a settlement and release agreement (the Second Principal Stock Settlement Agreement) by and between the Trustee and Mr. Edison. The Second Principal Stock Settlement Agreement contemplates that in
exchange for a) mutual releases between the Trustee, on behalf of the Debtors, and Mr. Edison and b) the withdrawal by Mr. Edison of the Appeal, the Trustee will pay Mr. Edison $40,000. The Bankruptcy Court approved the Second 9019
Motion on April 9, 2003. On April 30, 2003, the Company received a check from the Trustee in the amount of $839,861 for settlement and release between the Trustee and the Company with regard to the Principal Stock Settlement Agreement.

The Company and EBS Litigation, L.L.C. were served on March 28, 2003, with a Fourth Party Complaint brought by the Third-Party
Defendants, David B. Cooper, Jr., Julian I. Edison, Peter A. Edison, Jane Evans, Alan A. Sachs, Craig D. Schnuck, and Martin Sneider (collectively, the Edison Directors) in the matter of EBS Litigation, L.L.C. v. Barclays Global
Investors, N.A., et al.C.A. No. 98-547 SLR (Dist. Del) (the Litigation). Briefly, the litigation brought by EBS Litigation alleged that the Third Party Plaintiffs are liable for the return of D&B stock received by them as a
distribution from Edison in 1995. The Third Party Plaintiffs subsequently brought a Third Party claim alleging that if the Third Party Plaintiffs were found liable, then the Edison Directors are liable to the Third Party Plaintiffs for all or a part
of the recovery. The Fourth Party Complaint brought by the Edison Directors alleges that if the Edison Directors are found liable in the Third Party claim, then pursuant to Section 5.1(f) of the Plan establishing the Indemnification Reserve,
the Company and EBS Litigation are liable to the Edison Directors for all costs and expenses the Edison Directors have incurred or will incur in connection with the Edison Directors defense of the Third Party claim and with the prosecution of
their Fourth Party Complaint.

Prior to the Litigation being filed, in February 2003, the District Court hearing the Litigation referred the
matter to mediation before a magistrate judge. The mediation began on March 28, 2003. The mediation involves all claims involved in the Litigation, as well as, the Fourth Party Complaint indemnification claims brought by the Edison Directors
against the Company and EBS Litigation pursuant to indemnification provisions in the Debtors Amended Joint Plan or Reorganization.

On
March 31, 2004 the District Court granted the motion to approve the settlement of all claims in the Litigation. The settlement allowed for members of the defendant class to opt out of the portion of the settlement addressing the claims of the
Company against the defendant class. The District Courts Order and Final Judgment provides for releases of all Third-Party claims and Fourth-Party claims brought in the Litigation. The Order and Final Judgment requires members of the defendant
class to pay $5.00 per Dave & Buster share received in the dividend, with $.50 per share going to defray the litigation costs and fees incurred by the Class Representatives on behalf of the defendant class, and the remaining $4.50 per share
being paid to the Company. The Order and Final Judgment was subject to various contingencies, including the receipt by counsel for the defendant class of settlement payments by members of the class in excess of $1.8 million dollars. Management
believes, the contingencies have been met and no members of the Defendant Class have opted out of the settlement.



10



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EBS PENSION, L.L.C.

Notes to Financial Statements

March 31, 2006 and 2005 and December 31, 2005

As of March 31, 2006, the balance in the Companys operating account was $1,490,543. Following satisfaction of administrative expenses, any
funds remaining on deposit will be made available for distribution to holders of Class A Membership Units in the Company. In addition, any remaining balance of the $1.5 million Indemnification Reserve, if any, ultimately would be available for
such distribution.

The Company is classified as a partnership for federal income tax purposes and, therefore, does not pay any taxes.
Instead, the Members pay taxes on their proportionate share of the Companys income.



11



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Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of the financial condition and results of operations of the Company as of and for the
years ended December 31, 2005, 2004, 2003, 2002, 2001, 2000, 1999 and 1998 and as of and for the periods ended December 31, 1997, January 1, 2005 through March 31, 2005 (unaudited), January 1, 2006 through
March 31, 2006 (unaudited), and of certain factors that may affect the Companys prospective financial condition and results of operations. The following should be read in conjunction with the Companys Financial Statements and Notes
thereto included elsewhere herein and included in the Companys Annual Report and Form 10-K for the year ended December 31, 2005. This discussion contains certain forward-looking statements that involve risks and uncertainties. The
Companys actual results could differ materially from the results expressed in, or implied by, such statements.

Results of Operations/Overview

The Company, which was formed pursuant to the Amended Joint Plan of Reorganization Under Chapter 11 of the U.S. Bankruptcy Code filed
by the Debtors (the Plan) and the Members Agreement, is a limited purpose entity which was organized for the exclusive purposes of (a) receiving and administering the Company Assets, and (b) distributing the Company Assets to
holders of the Companys Class A Membership Units pursuant to the terms of the Members Agreement.

On January 23, 1998, the
Company received from Edison, Pension Plan Proceeds totaling approximately $44.0 million. The Company recognizes income from interest earned on its funds. The Company invests such funds in a money market fund investing solely in direct obligations
of the United States Government. The Members Agreement permits all funds received by the Company to be temporarily invested in United States treasury bills and notes with maturities of 12 months or less, institutional money market funds and demand
or time deposits and certificates of deposit with U.S. federal or state commercial banks having primary capital of not less than $500 million. During the years ended December 31, 2005, 2004, 2003, 2001, 2000, 1999 and 1998, the Company
recognized $73,823, $21,905, $14,513, $30,000, $67,172, $80,314 and $321,488 of interest income, respectively. During the period ended December 31, 1997, the Company did not recognize any interest income because it did not receive the Pension
Plan Proceeds until January 1998. During the three month periods ended March 31, 2006 and 2005, the Company recognized $27,445 and $13,393 of interest income, respectively. The amount of interest income recognized by the Company in future
periods will be dependent on, among other things, (1) fluctuations in interest rates, (2) the amounts and timing of any amounts received in the future from the Pension Plan Tax Reserve, (3) the amount and timing of distributions, if
any, to holders of Class A Membership Units, and (4) the amount and timing of the Companys expenses.

The Companys
general and administrative expenses consist primarily of fees payable to the Manager, the Registar, Transfer Agent and Paying Agent, and the Companys lawyers, accountants, and auditors. The Company had expenses of $140,211, $157,791, $206,267,
$209,380, $144,429, $212,141, $219,450, $256,064 and $51,910 for the years ended December 31, 2005, 2004, 2003, 2002, 2001, 2000, 1999 and 1998 and for the period ended December 31, 1997, respectively. During the three month periods ended
March 31, 2006 and 2005, the Company had expenses of $27,073 and $29,870, respectively. These expenses are expected to fluctuate in future periods primarily based on the volume of any future disbursements on account of Class A Membership
Units.

The Company and EBS Litigation, L.L.C. (another limited liability company formed pursuant to the Plan) (EBS Litigation)
have agreed to indemnify the Debtors and their present or former officers, directors and employees from and against any losses, claims, damages or liabilities by reason of any actions arising from or relating to the Company and any actions taken or
proceeding commenced by EBS Litigation (other than with respect to any Unresolved Avoidance Claims (as defined in the Plan) that EBS Litigation may have against such persons other than in their capacities as officers, directors or employees of the
Debtors. Pursuant to the Plan, the Company established the Indemnification Reserve ($1.5 million) from the Pension Plan Proceeds for the benefit of these indemnified persons, to pay their costs and expenses incurred in defending the LLC Related
Claims (as defined in the Plan). Payment of such cost and expenses must first be sought from any applicable officers and directors insurance policy and then from the Indemnification Reserve. The Companys indemnification liability
is limited to the amount of the Indemnification Reserve, i.e. an aggregate of $1.5 million. As discussed below, there has been a claim filed seeking recovery from the Indemnification Reserve. There can be no assurance of the merits of such claim or
the amount, if any, that the Edison Directors (defined below) will be able to recover. There can be no assurance that additional claims will not be made in the future. All liabilities of the Company, including the foregoing indemnification
obligations, will be satisfied from the Company Assets.



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At December 31, 2005, the Company had cash and cash equivalents of approximately $3.0 million. At
December 31, 2004, the Company had cash and cash equivalents of approximately $3.0 million. At December 31, 2003, the Company had cash and cash equivalents of approximately $2.8 million. At December 31, 2002, the Company had cash and
cash equivalents of approximately $2.0 million. At December 31, 2001, 2000 and 1999, the Company had cash and cash equivalents of approximately $1.9 million. At December 31, 1998, the Company had cash and cash equivalents of approximately
$1.8 million, after approximately $39.4 million was distributed to holders of Class A Membership Units in 1998. At December 31, 1997, the Company had no cash or cash equivalents. At March 31, 2006, the Company had cash and cash
equivalents of approximately $3.0 million, including the unclaimed funds discussed in Note 3 to the financial statements. When determining the amount and timing of distributions, the Manager considered, among other things, (1) the terms of the
Members Agreement governing distributions, and (2) the anticipated amount of necessary reserves and future administrative expenses. The amount and timing of any future distributions of Pension Plan Proceeds will be determined by the Manager in
accordance with the terms of the Members Agreement. There can be no assurance as to the amount (if any) of any further distributions that will be made.

In September 2000, the Company filed a motion with the United States Bankruptcy Court, District of Delaware to reopen the bankruptcy case of Edison Brothers Stores, Inc. for the limited purpose of extending the term
of the Company. Section 1.4 of the Companys Members Agreement limits the Companys existence to three years subject to extension(s) approved by the Bankruptcy Court for good cause shown. Therefore, the Companys existence was
originally set to expire on September 26, 2000 unless extended by the Bankruptcy Court. In its motion, the Company argued that the Companys members would be best served by permitting the Company to remain a going concern. The Bankruptcy
Court granted the Companys motion to extend the existence of the Company for an additional two-year term.

On October 17, 2000,
the Debtors and the Company stipulated to a schedule pursuant to which they would each submit to the Bankruptcy Court a motion for entry of judgment with respect to the Complaint (the Scheduling Stipulation). The Scheduling Stipulation
also provided that each party would be permitted to submit an answer brief and a subsequent reply brief. Further, under the Scheduling Stipulation, the parties waived their right to request an oral argument on their respective motions for judgment.

As of December 31, 2000, the balance in the Companys operating account was $145,277. Following satisfaction of administrative
expenses any funds remaining on deposits were made available for distribution to holders of Class A Membership Units in the Company. In addition, any remaining balance of the $1.5 million Indemnification Reserve, if any, ultimately would be
available for such distribution.

On October 11, 2001 the Court concluded that the Company could not establish a nexus between the
alleged trust and the assets sought by the Company.

As of December 31, 2001, the balance in the Companys operating account was
$136,847. Following satisfaction of administrative expenses, any funds remaining on deposit will be made available for distribution to holders of Class A Membership Units in the Company. In addition, any remaining balance of the $1.5 million
Indemnification Reserve, if any, ultimately would be available for such distribution.

On February 21, 2002, the parties executed a
settlement agreement (the Settlement Agreement), that was approved by the Court on March 14, 2002. Pursuant to the Settlement Agreement, Edison agreed to distribute to the Company cash equal to thirty-four percent (34%) of its
pre-petition claim of $5,740,000, which equals $1,951,600, payable within three days after the order becomes final. The Settlement Agreement further provides that additional distributions will be made to the Company at such time, if ever, as the
distributions to all holders of allowed general unsecured claims against the Debtors exceed twenty-one percent (21%) of their allowed claims. Thereafter, the Company will receive on account of its remaining claim, distributions equal to the
Companys pro rata share (based upon its remaining claim of $3,788,400) of all distributions over twenty-one percent (21%), on a pro rata basis with all general unsecured claims.

On May 29, 2002, the Trustee filed a Motion in the Bankruptcy Court for an Order Approving, among other things, the sale of shares of Principal
Financial Group, Inc. Stock (the Principal Stock), free and clear of all liens, claims and encumbrances (the Motion). On June 11, 2002, the Company filed a limited objection (the Limited Objection) to
the Motion. In the Limited Objection, the Company sought to preserve its rights, if any, with respect to the Principal Stock or the proceeds thereof. On June 18, 2002, the Court granted the Motion as provided in the Order subject to the
Companys Limited Objection. In addition, the Court indicated that the proceeds of the sale of the Principal Stock were to be held by the Trustee in a segregated account subject to further order of the Court and the Companys right to
assert an interest in said proceeds.



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On May 31, 2002, the Company distributed $1.5 million from the proceeds received from the Settlement
Agreement mentioned above to holders of the Class A Membership Units.

In September 2002, the Company filed a motion with the
Bankruptcy Court to reopen the bankruptcy case of Edison Brothers Stores, Inc. for the limited purpose of extending the term of the Company. As mentioned above, Section 1.4 of the Companys Members Agreement originally limited the
Companys existence to three years subject to extension(s) approved by the Bankruptcy Court for good cause shown. In September 2002, the Bankruptcy Court granted the Companys motion to extend the existence of the Company for an additional
two-year term.

On November 14, 2002, the Trustee filed a motion (the 9019 Motion) pursuant to Rule 9019 of the Federal
Rules of Bankruptcy Procedure in the Bankruptcy Court requesting that the court approve a settlement and release agreement (the Principal Stock Settlement Agreement) by and between the Trustee and the Company. The Principal Stock
Settlement Agreement, contemplates that in exchange for mutual releases between the Trustee, on behalf of the Debtors, and the Company with regard to the Principal Stock, the Trustee, on behalf of the Debtors, will distribute thirty percent of the
net cash proceeds from the sale of the Principal Stock to the Company. The Principal Stock Settlement Agreement also contemplates the Company paying its pro rata share of any taxes, if any, assessed in connection with the sale of the Principal
Stock. An objection to the 9019 motion was timely filed by Mr. Bernard Edison. The Bankruptcy Court heard the motion, the objection and the evidence on January 8, 2003. Based upon the evidence presented, the Bankruptcy Court granted the
Trustees 9019 Motion and approved the Settlement Agreement in full.

Mr. Edison appealed (the Appeal) the Bankruptcy
Courts order approving the Settlement Agreement on January 31, 2003, and thereafter filed a Statement of Issue on February 27, 2003. On March 18, 2003, the Trustee filed a motion (the Second 9019 Motion) pursuant to
Rule 9019 of the Federal Rules of Bankruptcy Procedure in the Bankruptcy Court requesting that the court approve a settlement and release agreement (the Second Principal Stock Settlement Agreement) by and between the Trustee and
Mr. Edison. The Second Principal Stock Settlement Agreement contemplates that in exchange for a) mutual releases between the Trustee, on behalf of the Debtors, and Mr. Edison and b) the withdrawal by Mr. Edison of the Appeal, the
Trustee will pay Mr. Edison $40,000. The Bankruptcy Court approved the Second 9019 Motion on April 9, 2003. On April 30, 2003, the Company received a check from the Trustee in the amount of $839,861.31 for settlement and release
between the Trustee and the Company with regard to the Principal Stock Settlement Agreement.

As of December 31, 2002, the balance in
the Companys operating account was $476,669. Following satisfaction of administrative expenses, any funds remaining on deposit will be made available for distribution to holders of Class A Membership Units in the Company. In addition, any
remaining balance of the $1.5 million Indemnification Reserve, if any, ultimately would be available for such distribution.

The Company
and EBS Litigation were served on March 28, 2003, with a Fourth Party Complaint brought by the Third-Party Defendants, David B. Cooper, Jr., Julian I. Edison, Peter A. Edison, Jane Evans, Alan A. Sachs, Craig D. Schnuck, and Martin Sneider
(collectively, the Edison Directors) in the matter of EBS Litigation, L.L.C. v. Barclays Global Investors, N.A., et al.C.A. No. 98-547 SLR (Dist. Del) (the Litigation). Briefly, the Litigation brought by EBS
Litigation alleged that the Third Party Plaintiffs were liable for the return of D&B stock received by them as a distribution from Edison in 1995. The Third-Party Plaintiffs subsequently brought a Third-Party claim in the Litigation alleging
that if the Third-Party Plaintiffs were found liable then the Edison Directors are liable to the Third-Party Plaintiffs for all or a part of the recovery. The Fourth Party Complaint brought by the Edison Directors alleges that if the Edison
Directors are found liable in the Third Party claim, then pursuant to Section 5.1(f) of the Plan establishing the Indemnification Reserve, the Company and EBS Litigation are liable to the Edison Directors for all costs and expenses the Edison
Directors have incurred or will incur in connection with the Edison Directors defense of the Third Party claim and with the prosecution of their Fourth Party Complaint.

Prior to the Litigation being filed, in February 2003, the District Court hearing the Litigation referred the matter to mediation before a magistrate
judge. The mediation took place on March 28, 2003. The mediation involved all claims involved in the Litigation, as well as the Fourth Party Complaint indemnification claims brought by the Edison Directors against the Company and EBS
Litigation pursuant to indemnification provisions in the Debtors Amended Joint Plan or Reorganization.



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As mentioned above, the Fourth Party Complaint was also referred to Mediation. The Mediation was
continued at a mediation conference on August 11, 2003. The Mediation process concluded with the parties reaching a proposed settlement. On January 29, 2004, Judge Robinson in the U.S. District Court for the District of Delaware (the
District Court) approved the notice of settlement. The notice of pendency of class action settlement was mailed to the members of the class on February 12, 2004. On March 31, 2004 the District Court granted the motion to
approve the settlement of all claims in the Litigation. The settlement allowed for members of the defendant class to opt out of the portion of the settlement addressing the claims of the Company against the defendant class. The District Courts
Order and Final Judgment provides for releases of all Third-party claims and Fourth-party claims brought in the Litigation. The Order and Final Judgment requires members of the defendant class to pay $5.00 per Dave & Buster share received
in the dividend, with $.50 per share going to defray the litigation costs and fees incurred by the Class Representatives on behalf of the defendant class, and the remaining $4.50 per share being paid to the Company. The Order and Final Judgment was
subject to various contingencies, including the receipt by counsel for the defendant class of settlement payments by members of the class in excess of $1.8 million dollars. To the Companys knowledge, the contingencies have been met and no
members of the Defendant Class have opted out of the settlement.

As of December 31, 2003, the balance in the Companys operating
account was $1,246,658. Following satisfaction of administrative expenses, any funds remaining on deposit will be made available for distribution to holders of Class A Membership Units in the Company. In addition, any remaining balance of the
$1.5 million Indemnification Reserve, if any, ultimately would be available for such distribution.

In September 2004, the Company filed a
motion with the Bankruptcy Court to reopen the bankruptcy case of Edison Brothers Stores, Inc. for the limited purpose of extending the term of the Company. As mentioned above, Section 1.4 of the Companys Members Agreement originally
limited the Companys existence to three years subject to extension(s) approved by the Bankruptcy Court for good cause shown. In September 2004, the Bankruptcy Court granted the Companys motion to extend the existence of the Company for
an additional two-year term.

As of December 31, 2004, the balance in the Companys operating account was $1,455,070. Following
satisfaction of administrative expenses, any funds remaining on deposit will be made available for distribution to holders of Class A Membership Units in the Company. In addition, any remaining balance of the $1.5 million Indemnification
Reserve, if any, ultimately would be available for such distribution.

At the end of 2005, EBS Litigation began preparations for its
dissolution. The Company is preparing for the concurrent winding-up of its business and a final distribution to its members in accordance with the Members Agreement. In that connection, the Manager expects to make one or more distributions to the
Class A Membership Unit holders in the fiscal year ending December 31, 2006, and to pay or provide for anticipated remaining expenses, liabilities, and contingencies of the Company. The Company will make the appropriate filings with
Delaware state authorities, federal and state tax authorities, and the United States Securities and Exchange Commission in connection with the dissolution.

The Company is classified as a partnership for federal income tax purposes and, therefore, does not pay any taxes. Instead, the Members pay taxes on their proportionate share of the Companys income.

Quarterly Comparison

Three Months ended March 31, 2006
Compared to Three Months Ended March 31, 2005

Total income for the three months ended March 31, 2006, was $27,445,
compared to $13,393 for the three months ended March 31, 2005. This increase is due to the increase in interest income.

Total
expenses decreased $2,797 due primarily to a decrease in transfer agent fees.

Item 4. Controls and Procedures

The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by the Company in reports
that it files or submits under the Securities and Exchange Act of 1934 is recorded, processed, summarized and reported with the time periods specified in the Securities and Exchange Commission rules and forms. As of March 31, 2006 an evaluation
was carried out under the supervision and with the participation of the Companys management of the effectiveness of the Companys disclosure controls and procedures. Based on that evaluation, the Companys management has concluded
that the Companys disclosure controls and procedures are effective.

Subsequent to the date of their evaluation, there have been no
significant changes in the Companys internal controls or in other factors that could significantly affect these controls.



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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

Other than the matters discussed in Part I, Item 2 of this
Quarterly Report, the Company is not involved in any legal proceedings.

Item 6. Exhibits and Reports on Form 8-K.



|    |  |          |  |                                                                     
|--- |  | -------- |  | --------------------------------------------------------------------
|(a) |  | Exhibits |  | Description                                                         
|    |  | 2.1*     |  | Amended Joint Plan of Reorganization of Edison Brothers Stores, Inc.
|    |  |         
|    |  | 3.1*     |  | EBS Pension, L.L.C. Certificate of Formation                        
|    |  |         
|    |  | 3.2*     |  | EBS Pension, L.L.C. Membership Agreement                            
|    |  |         
|    |  | 31       |  | Certifications                                                      

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|* | Incorporated by reference to the same numbered exhibit filed with the Registrants Registration Statement on Form 10 originally filed with the SEC on July 29, 1998
(SEC File No. 000-24713).
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|    |  |                                                                                                                                                                                                                         
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Reports on Form 8-K                                                                                                                                                                                                     
|    | 
|    |  | On March 31, 2006, the Company filed a current report on Form 8-K under Item 9 (Regulation FD Disclosure) providing for the Companys Managers certification pursuant to Section 906
of the Sarbanes-Oxley Act of 2002.



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Signatures

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 thereunto duly authorized.



EBS PENSION, L.L.C.By: WELLS FARGO BANK, N.A., in its capacity as Manager of EBS Pension, L.L.C.By:

Jeffery T. RoseJeffery T. Rose Vice President


Date: May 15, 2006



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