Document:

exhibit10-57.htm

    
      

      EXHIBIT
10.57

      

      

      

      FULLY DISCLOSED CLEARING
AGREEMENT

      

      BETWEEN

       

                                                                                                                
RIDGE CLEARING & OUTSOURCING SOLUTIONS, INC.

      

                                                                                                  
-and-

      

      BROADPOINT CAPITAL,
INC.

      

      

      This
agreement (the “Agreement”), dated as of January 11, 2008, between Ridge
Clearing & Outsourcing Solutions, Inc. (“Ridge”) and Broadpoint Capital,
Inc. (“Correspondent”), sets forth the terms and conditions under which Ridge
will provide execution and clearing services, on a fully disclosed basis, to
Correspondent and its customers.  Ridge will provide such services
only to the extent required by this Agreement, and shall not be responsible for
any duties or obligations not specifically allocated to Ridge by this
Agreement.  Nothing in this Agreement shall be deemed to delegate to
Ridge any regulatory obligation of Correspondent.

      

      I.           APPLICABLE LAWS AND RULES
AND APPROVAL BY NYSE

      

      
        	
                 

              	
                Throughout
      the term of this Agreement, each of the parties hereunder shall be subject
      to the provisions of federal, state and local laws, rules and regulations
      and the constitution, by-laws, rules, regulations and stated policies of
      the New York Stock Exchange, Inc. (“NYSE”), and any other securities
      exchange or association or regulatory or self-regulatory organization
      (“SRO”) vested with authority over the parties and/or the transactions
      contemplated hereby, applicable to the parties, as currently in effect or
      as they may be hereinafter amended, revised or supplemented (collectively,
      the “Applicable Laws and Rules”).  To the extent that specific
      Applicable Laws and Rules are cited in this Agreement, such individual
      Applicable Laws and Rules shall also apply as currently in effect or as
      they may be hereinafter amended, revised or
      supplemented.  Correspondent agrees to comply with the NYSE
      rules cited herein, as well as comparable SRO provisions (including,
      without limitation, comparable NASD rules).  In the event that
      Correspondent is not an NYSE member firm, Correspondent agrees to comply
      with the NYSE rules specifically cited herein as if it were an NYSE member
      firm.  This Agreement will be submitted by Ridge for approval by
      the NYSE, and will become effective upon such approval.  In the
      event that this Agreement is not approved, the parties shall negotiate in
      good faith to obtain the requisite
approval.

              

      

      

      II.           SERVICES

      

      
        	
                 

              	
                A.

              	
                Services to be Performed by
      Ridge

              

      

      

      
        	
                 

              	
                Subject
      to compliance by Correspondent with its obligations under this Agreement,
      Ridge will perform the following
services:

              

      

      

      
        	
                 

              	
                1.

              	
                Ridge
      will execute orders for the proprietary account(s) of Correspondent (the
      “Proprietary Accounts”), and the customer accounts of Correspondent (the
      “Customer Accounts”), provided such accounts have been accepted by Ridge
      (collectively, the “Accounts”), but only insofar as such orders are
      transmitted by Correspondent to Ridge or are transmitted by a customer of
      Correspondent (“Customer”) to Ridge in accordance with Section V.A.
      of this Agreement.

              

      

      

      
        	
                 

              	
                2.

              	
                Ridge
      will prepare and distribute confirmations respecting transactions in each
      of the Customer Accounts in accordance with Section VII.A. of this
      Agreement, and Ridge will provide duplicates of such confirmations to
      Correspondent.

              

      

       

      
        	
                 

              	
                3.

              	
                Ridge
      will prepare and distribute summary monthly statements to Customer
      Accounts (or quar­terly statements to Customer Accounts if no activity
      in the Customer Account occurs during any quarter covered by such
      statement) in accordance with Section VII.A. of this Agreement, and Ridge
      will provide duplicates of such statements to
    Correspondent.

              

      

      

      
        	
                 

              	
                4.

              	
                Ridge
      will settle contracts and transactions in securities (including options to
      buy or sell securities) (a) between Correspondent and other brokers
      and dealers, (b) between Correspondent and the Accounts, and (c)
      between Correspondent and persons other than the Accounts or other brokers
      and dealers.

              

      

      

      
        	
                 

              	
                5.

              	
                Ridge
      will engage in cashiering functions for the Accounts, including the
      receipt, delivery and transfer of securities purchased, sold, borrowed and
      loaned; receiving and distributing payment therefore; holding in custody
      and safekeeping all securities and payments so received; the handling of
      margin accounts, including paying and charg­ing of interest; the
      receipt and distribution of dividends and other distribu­tions; and,
      at the instruction of the Account, the processing of exchange offers,
      rights offerings, warrants, tender offers and redemptions.  To
      the extent that any cashiering functions with respect to the receipt of
      securities and the making and receiving of payments therefor may be
      relinquished to Correspondent, Correspondent shall have full
      responsibility for such functions.

              

      

      

      
        	
                 

              	
                6.

              	
                Ridge
      will construct and maintain books and records of all transactions executed
      or cleared through it and not specifically assigned to Correspondent
      pursuant to the terms of this Agreement (e.g., account opening
      documentation), including a daily record of required margin and other
      information required by the Applicable Laws and
  Rules.

              

      

      

      
        	
                 

              	
                Any
      additional services to be performed shall be subject to the mutual
      agreement of the parties.  Such additional services, if
      applicable, shall be set forth with related fees on Schedule A
      hereto.  Schedule A is hereby incorporated in and made an
      integral part of this Agreement.

              

      

      

      
        	
                 

              	
                B.

              	
                Services That Shall Not be
      Performed by Ridge

              

      

      

      
        	
                 

              	
                Unless
      otherwise agreed to in a writing executed by the parties hereto, Ridge
      shall not engage in any of the following services on behalf of
      Correspondent, the responsibility for which shall be solely and
      exclusively that of Correspondent:

              

      

      

      
        	
                 

              	
                1.

              	
                Accounting,
      bookkeeping or recordkeeping, cashiering, or any other services with
      respect to commodity transactions, and/or any transaction other than
      securities transactions.

              

      

      

      
        	
                 

              	
                2.

              	
                Preparation
      of Correspondent’s payroll records, financial statements or any analysis
      or review thereof or any recommendations relating
  thereto.

              

      

      

      
        	
                 

              	
                3.

              	
                Preparation
      or issuance of checks in payment of Correspondent’s expenses, other than
      expenses incurred by Ridge on behalf of Correspondent pursuant to this
      Agreement.

              

      

      

      
        	
                 

              	
                4.

              	
                Payment
      of commissions, salaries or other remuneration, or reimbursement of
      expenses, to Correspondent’s salespersons or any other employees of
      Correspondent.

              

      

      

      
        	
                 

              	
                5.

              	
                Preparation
      and filing of reports with the Securities and Exchange Commission
      (the ”SEC”), any state securities commission, any national securities
      exchange registered under the Securities Exchange Act of 1934 (the “1934
      Act”), or other securities exchange or securities association or any other
      regulatory or self-regulatory body or agency with which Correspondent is
      associated and/or by which it is regulated. Ridge will, at the request of
      Correspondent, furnish Correspondent with any necessary information and
      data contained in books and records kept by Ridge and not otherwise
      reasonably available to Correspondent if such information is required in
      connection with the preparation and filing of such reports by
      Correspondent.

              

      

       

      
        	
                 

              	
                6.

              	
                Making,
      maintaining and filing reports and records required to be kept by
      Correspondent by the Currency and Foreign Transactions Reporting Act of
      1970 (the “Currency Act”), and the regulations promulgated thereunder
      (provided, however, that the foregoing shall not affect Ridge’s
      obligations to make, maintain and file reports and records required to be
      kept by Ridge by the Currency Act).

              

      

      

      
        	
                 

              	
                7.

              	
                Making,
      maintaining and filing reports and records required of Correspondent by
      the Bank Secrecy Act (the “Bank Secrecy Act”), the U.S.A. Patriot Act (the
      “Patriot Act”), and the regulations promulgated thereunder, and other
      Applicable Laws and Rules relating to anti-money laundering (“AML”)
      activities, including, without limitation, (i) currency transaction
      reports (“CTRs”), (ii) currency or monetary instrument reports
      (“CMIRs”),  (iii) suspicious activity reports (“SARs”), and (iv)
      foreign bank and financial account reports (“FBFARs”) (provided, however,
      that the foregoing shall not affect Ridge’s obligations to make, maintain
      and file reports and records required of Ridge by the Applicable Laws and
      Rules).  Notwithstanding the foregoing, Ridge reserves the
      right, exercisable in its sole and exclusive discretion, to prepare and
      file such reports on behalf of Correspondent.  In the event that
      Ridge undertakes to prepare or file such reports, Correspondent
      acknowledges that Ridge does not assume any reporting responsibilities of
      Correspondent nor is Correspondent relieved of any of its reporting
      obligations.

              

      

      

      
        	
                 

              	
                8.

              	
                Verification
      of the name or address of any
Account.

              

      

      

      
        	
                 

              	
                9.

              	
                Verification
      of the authority of, or changes in the identity or address, of any person
      holding any power of attorney over any
Account.

              

      

      

      
        	
                 

              	
                10.

              	
                Verification
      of the validity of, or proper authorization for, any orders or
      instructions received by Ridge from Correspondent or from any Customer in
      connection with an Account.

              

      

      

      
        	
                 

              	
                11.

              	
                Obtaining
      and verifying new account information, and ensuring that such
      infor­ma­tion meets the requirements of the Applicable Laws and
      Rules, including, without limitation, any requirements of the Bank Secrecy
      Act, the Patriot Act, and the regulations promulgated
      thereunder.

              

      

      

      
        	
                 

              	
                12.

              	
                Maintaining
      a record of all personal and financial information concerning any Account
      and all orders received by Correspondent therefrom, and maintaining all
      documents and agreements executed by any
  Account.

              

      

       

      
        	
                 

              	
                13.

              	
                Compliance
      with the reporting, disclosure and record keeping requirements of the
      Employee Retirement Income Security Act of 1974 (“ERISA”), and the
      regulations promulgated thereunder.

              

      

      

      
        	
                 

              	
                14.

              	
                Compliance
      by Correspondent with the  statutes,  rules and
      regulations administered by the Office of Foreign Assets Control (“OFAC”),
      which prohibit, among other things, engaging in financial transactions
      with certain sanctioned or embargoed countries and foreign nationals
      (provided, however, that the foregoing shall not affect Ridge’s
      obligations to comply with the statutes, rules and regulations
      administered by OFAC).

              

      

      

      

      
        	
                 

              	
                C.

              	
                Exclusive Clearing
      Arrangement

              

      

      

      
        	
                 

              	
                Except
      as otherwise provided in this Section II.C, Correspondent agrees that,
      commencing on the Live Date and for the term of this Agreement, Broadpoint
      Capital , Inc. shall introduce its equity securities business and
      Broadpoint Securities, Inc. shall introduce its mortgage
      securities-related business, as those businesses generally exist as of the
      date of this Agreement, to Ridge and all transactions in securities within
      such businesses shall be cleared exclusively through Ridge, unless and
      except to the extent that: (1) Ridge agrees in writing
      otherwise; or (2) Ridge has rejected a pro­posed Account or has
      declined to execute or clear a particular transaction in an
      Account.  The exclusive clearing arrangement described in this
      paragraph shall not extend or apply to new business to the extent
      resulting from a material merger, acquisition or business combination
      involving Correspondent. Ridge acknowledges and agrees to Broadpoint
      Capital , Inc.’s existing clearing relationship with First Clearing
      Corporation with respect to a limited number of retail
      accounts.  Ridge acknowledges and agrees
      to  Broadpoint Securities, Inc.’s existing clearing relationship
      with Bear Stearns with respect to a limited number of accounts of
      employees (or relatives and friends of employees) of Broadpoint
      Securities, Inc..  In the event that any transaction is cleared
      through any other firm, nothing herein shall be construed as a waiver by
      Ridge of the foregoing requirement nor an agreement by Ridge to assume any
      obligations or liabilities arising from any such
    transaction.

              

      

      

      

      III.           OPENING AND SUPERVISION OF
ACCOUNTS

      

      
        	
                 

              	
                A.

              	
                Account
      Documentation

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for obtaining, verifying and
      maintaining all required information and the identity and address of each
      potential Customer, including, without limitation, any customer
      identification information required by the Applicable Laws and Rules,
      including, without limitation, the Bank Secrecy Act or the Patriot Act,
      and any regulation(s) promulgated thereunder.  Correspondent
      shall be responsible for the main­tenance and retention of all account
      applications, and Correspondent hereby acknowledges its obligation to
      retain account applications in an easily-accessible place in accordance
      with the Applicable Laws and Rules and agrees to provide the original
      application to Ridge by overnight delivery within 24 hours of a request
      from Ridge.  All account documentation shall be on the forms
      provided by Ridge for that purpose, or, alternatively, prepared by
      Correspondent at its expense and pre-approved in writing by Ridge
      (which approval will not be unreasonably withheld), in either case in
      a format compatible with Ridge’s computerized accounting and records
      maintenance systems.  In accordance with Ridge’s procedures,
      Correspondent shall notify Ridge promptly of any changes or corrections in
      any information, instructions or doc­uments previously forwarded to
      Ridge.  Correspondent shall be solely and exclusively
      responsible for obtaining, updating, and maintaining current and correct
      customer addresses and other customer information, and Ridge may for all
      purposes rely, without verification, on the accuracy of such addresses and
      all other information and docu­ments furnished by Correspondent to
      Ridge regarding any Customer Account.  Correspondent shall be
      solely and exclusively responsible for complying with the requirements of
      Rule 15g-9 under the 1934 Act, if applicable.  Correspondent
      shall also promptly furnish Ridge with such addi­tional information or
      documentation as Ridge may request from time to
  time.

              

      

       

       

      

      
        	
                 

              	
                B.

              	
                Knowledge of Customer
      and

              
	
                 

              	
                Customer’s Investment
      Objectives

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible through a general partner, a
      prin­cipal executive officer or a person designated for supervisory
      responsibilities to use due diligence to learn the essen­tial facts
      relative to every Customer and Account, every order for any Account, and
      every person holding power of attorney over any Account, and to
      super­vise diligently all Accounts and their handling by
      Correspondent’s registered representatives so as to be in compliance in
      all material respects with all Applicable Laws and Rules.  The
      preparation or possession by Ridge for Correspondent of surveillance
      records, exception reports or other similar data shall not obligate Ridge
      to establish policies, practices or procedures relating to such
      materials.  Correspondent shall be solely and exclusively
      responsible for ensuring that the Customers are not minors and do not
      otherwise lack the capacity to enter into a contract and are not
      prohibited from opening a securities account under the Applicable Laws and
      Rules.  Correspondent shall implement and enforce policies and
      procedures reasonably designed to ensure that (i) the Customer is the
      individual or entity it represents itself to be, (ii) the funds and
      securities in any Account do not come from a prohibited source under the
      Applicable Laws and Rules, and (iii) the Customer or its Customer
      Account(s) are not established or maintained for a prohibited purpose
      under the Applicable Laws and
Rules.

              

      

      

      
        	
                 

              	
                C.

              	
                Acceptance of
      Accounts

              

      

      

      
        	
                 

              	
                Each
      Customer Account and Proprietary Account accepted and approved by
      Correspondent shall be subject to acceptance by Ridge (which shall not be
      construed to require any due diligence on the part of
      Ridge).  Correspondent shall not approve any Customer Account
      unless all information required in Section III.A. of this Agreement has
      been received and due diligence as set forth in Section III.B. of this
      Agreement has been performed by Correspondent.  Ridge reser­ves the
      absolute right, exer­cisable in its sole and exclusive discretion
      acting in good faith, without prior notice to Correspondent or to the
      Customer, to reject any account that Correspondent may offer as an
      Account, or to terminate any account previously accepted by it as an
      Account.  Without limiting the generality of any of the
      foregoing, Ridge will be under no obligation to accept any Customer
      Account as to which any documentation or information required to be
      submitted to Ridge or maintained by Correspondent pursuant to Sections
      III.A. and III.B. of this Agreement is incomplete.  No action
      taken by Ridge or any of its employees, including, without limitation,
      clearing a trade in any Account, shall be deemed to be or shall constitute
      acceptance of such Customer Account.  Without limiting the
      generality of any of the foregoing, in the event that any information or
      documentation requested by Ridge regarding a Customer Account is not
      promptly provided to Ridge, Ridge may, without prior notice to
      Correspondent or to the Customer, reject or terminate such account as a
      Customer Account or refuse to execute or clear any further transactions
      therein.  If Ridge nevertheless accepts or continues to execute
      or clear transactions in such Customer Account, it shall not be deemed a
      waiver of Ridge’s right to receive such information or documentation or to
      later terminate or refuse to execute or clear transactions in such
      Customer Account.

              

      

      

      
        	
                 

              	
                D.

              	
                Supervision of Orders and
      Accounts

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for the conduct and
      supervision of the Accounts and all transactions therein and their
      compliance with the Applicable Laws and Rules.  Correspondent’s
      responsibilities shall include, without limitation, the
      following:

              

      

      

      
        	
                 

              	
                1.

              	
                selecting,
      training, and supervising all personnel of Correspondent who open,
      approve, authorize or accept orders or transactions in the
      Accounts;

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                2. 

              	
                establishing
      written procedures for the conduct of the Accounts and ongoing review of
      all transactions in Accounts, and maintaining qualified compliance and
      supervisory personnel to implement such procedures;

              
	
                 

              	
                 

              	
                 

              

      

      

      
        	
                 

              	
                3.

              	
                knowing
      the investment objectives of each Customer and determining the suitability
      of all transactions in the
Accounts;

              

      

      

      
        	
                 

              	
                4.

              	
                ensuring
      that there is a reasonable basis for any recommendations made by
      Correspondent to Customers;

              

      

      

      
        	
                 

              	
                5.

              	
                determining
      the appropriateness of the frequency of trading in an
    Account;

              

      

      

      
        	
                 

              	
                6.

              	
                determining
      that each transaction in an Account has been duly
    authorized;

              

      

      

      
        	
                 

              	
                7.

              	
                timely
      forwarding instructions from the Customer to Ridge, and authenticating any
      such instructions;

              

      

      

      
        	
                 

              	
                8.

              	
                obtaining
      and maintaining all documents necessary for the performance of
      Correspondent’s responsibilities under this Agreement and retaining such
      documents in accordance with the Applicable Laws and
      Rules;

              

      

      

      
        	
                 

              	
                9.

              	
                complying,
      to the extent applicable, with the “three quote rule” as set forth by the
      NASD when functioning as an executing
broker;

              

      

      

      
        	
                 

              	
                10.

              	
                complying
      with all “Blue Sky” requirements applicable to Correspondent with respect
      to any order or transaction in an Account;
and

              

      

      

      
        	
                 

              	
                11.

              	
                informing
      Ridge of the location of the securities which are the subject of any order
      transmitted to Ridge for execution so that Ridge may comply with the
      Applicable Laws and Rules.

              

      

      

      
        	
                 

              	
                E.

              	
                The AML
      Program

              

      

      

      
        	
                 

              	
                1.

              	
                Correspondent
      shall develop, implement and enforce written AML policies and procedures
      (the “AML Program”), reasonably designed to ensure compliance with the
      requirements of the Applicable Laws and Rules relating to AML, including,
      without limitation, the Bank Secrecy Act, the Patriot Act,
      the  regulations promulgated thereunder, and the statutes, rules
      and regulations administered by OFAC.  The AML Program shall
      cover, among other things, (i) the identification and verification of
      prospective Accounts (Patriot Act, § 326), (ii) the identification of the
      source(s) of funds and securities in prospective Accounts, (iii) the
      identification,  monitoring and reporting of suspicious
      activities, (iv) responses to requests for documents and information from
      law enforcement authorities, (v) prohibitions on the opening, maintaining,
      administering or managing of accounts on behalf of prohibited entities
      (such as, for example, foreign “shell banks”), and (vi) special due
      diligence procedures for Accounts involving non-U.S. persons (such as, for
      example, Accounts held directly or indirectly by foreign
      banks).  The AML Program shall be developed, implemented and
      enforced by a qualified compliance officer designated by Correspondent for
      such purposes.  The AML Program shall be reviewed and approved
      in writing by a member of senior management of
      Correspondent.  Notwithstanding the foregoing,
      Ridge reserves the absolute right, without prior notice to Correspondent
      or to the Customer, to freeze or block assets in any Account, or terminate
      any Account which, in the sole discretion of Ridge acting in good faith,
      may violate or may cause a violation of the Bank Secrecy Act, the Patriot
      Act, or any other AML provision, or statute, rule or regulation
      administered by OFAC.

              

      

       

      

      Correspondent
shall certify annually to Ridge that it is in compliance with this Section
III.E. and that has implemented and enforced the AML Program.

      

      

      
        	
                 

              	
                2.

              	
                Ridge
      acknowledges the following AML obligations under Applicable Laws and
      Rules:

              

      

      

      a.   Anti-Money Laundering
Programs

      Ridge
acknowledges its obligation, to the extent applicable, to establish an AML
program that includes, among other things: (i) the development of internal AML
policies; procedures and controls; (ii) the designation of an AML compliance
officer; (iii) an ongoing AML employee training program; and (iv) an independent
audit function to test the AML program.  (Patriot Act, § 352 and SRO
rules).

      

      b.   Reporting of Suspicious
Activities By Securities Brokers and Dealers;  Investment Company
Study

      Ridge
acknowledges its obligation, to the extent applicable, to monitor and report
suspicious activities, and to prepare and submit SARs in accordance with 31
U.S.C. 5318(g).  (Patriot Act, § 356).

      

      c.   Special Due Diligence for
Correspondent Accounts and Private Banking Accounts

      

      i.         Ridge
acknowledges its obligation, to the extent applicable, to conduct enhanced due
diligence in connection with “correspondent accounts” held by foreign banks
operating under: (i) an offshore banking license; or (ii) a banking license
issued by a foreign country that has been designated as non-cooperative with
international AML principles or procedures by an intergovernmental group or
organization of which the United States is a member, with which designation the
United States representative to the group or organization concurs, or by the
Secretary of the Treasury as warranting special measures due to AML
concerns.  This “enhanced due diligence” includes, among other things,
reasonable steps: (i) to ascertain the identity of each of the owners of the
foreign bank, and the nature and extent of the ownership interest of each such
owner; (ii) to conduct enhanced scrutiny of such accounts to guard against money
laundering and report suspicious transactions; and (iii) to ascertain whether
such foreign bank provides correspondent accounts to other foreign banks and, if
so, the identity of those foreign banks and related due diligence information.
(Patriot Act, § 312(a)(2)(A) and (B)).

      

      ii.         Ridge
acknowledges its obligation, to the extent applicable, to conduct enhanced due
diligence in connection with “private banking accounts” held by non-United
States persons.  This “enhanced due diligence” includes, among other
things, reasonable steps: (i) to ascertain the identity of the nominal and
beneficial owner(s) of, and the source of funds deposited into, any “private
banking account” as needed to guard against money laundering and report
suspicious transactions; and (ii) to conduct enhanced scrutiny of any “private
banking account” that is requested or maintained by or on behalf of a senior
political figure, or any immediate family member or close associate of a senior
political figure, that is reasonably designed to detect and report transactions
that may involve the proceeds of foreign corruption. (Patriot Act,

      §
312(a)(3)(A) and (B)).

      

      d.   Forfeiture of Funds in
United States Interbank Accounts

      Ridge
acknowledges its obligation, to the extent applicable, to obtain and review
certifications and re-certifications from each Account held by a foreign bank
that identify:  (i) the owner(s) of such foreign bank; and (ii) the
name and address of a person who resides in the United States and is authorized
to accept service of legal process for records regarding the
Account.  (Patriot Act,

      § 319
(k)(3)(B)(i)).

      

      e.    Prohibition on United States
Correspondent Accounts With Foreign Shell Banks

      

      i.         Ridge
acknowledges its obligation, to the extent applicable, not to establish,
maintain, administer, or manage any “correspondent account” in the United States
for or on behalf of a foreign bank that does not have a physical presence in any
country (“foreign shell bank”).  (Patriot Act, §
313(j)(1)).

      

      ii.         Ridge
acknowledges its obligation, to the extent applicable, to take reasonable steps
to ensure that any “correspondent account” established, maintained, administered
or managed by Ridge in the United States for or on behalf of a foreign bank is
not being used by that foreign bank to provide banking services indirectly to a
“foreign shell bank”.  (Patriot Act, § 313(j)(2)).

      

      f.     Special Measures for
Jurisdictions, Financial Institutions, or International Transactions of Primary
Money Laundering Concern

       Ridge
acknowledges its obligation, to the extent applicable, to comply with special
measures imposed by the Secretary of the Treasury for jurisdictions, financial
institutions, and international transactions of primary money laundering
concern.  (Patriot Act, § 311).

      

      g.    Cooperative Efforts to Deter
Money Laundering

      

      i.         Ridge
acknowledges its obligation, to the extent applicable, to respond to requests
made by the Financial Crimes Enforcement Network (“FINCEN”) on behalf of a
federal law enforcement agency investigating possible terrorist or money
laundering activities.  (Patriot Act, § 314(a)).

      

      ii.         Ridge
acknowledges its obligation, to the extent applicable, to submit notices to
FINCEN concerning the voluntary sharing of information with other financial
institutions relating to individuals, entities, organizations and countries
suspected of possible terrorist or money laundering activities, and to comply
with requirements concerning the confidentiality of such shared
information.  (Patriot Act,  § 314(b)).

      

      h.    Compliance
Obligations

      

      i.         Ridge
acknowledges its obligation, to the extent applicable, to make tools available
to Correspondent (such as, for example, exception reports and automated systems)
to assist Correspondent in complying with its obligation to monitor and detect
possible terrorist, money laundering and related activities.

      

      ii.         Ridge
acknowledges its obligation, to the extent applicable, to comply with
record-keeping requirements in connection with each of the above
obligations.

      

      
        	
                 

              	
                F.

              	
                Accounts of Employees of Member
      Organizations, Self-Regulatory Organizations and Financial
      Institutions

              

      

      

      
        	
                 

              	
                In
      each case in which a Customer is an employee of a member organization, a
      self-regulatory organization or financial institution, the approval of
      which is necessary to the opening and maintenance of a Customer Account,
      Correspondent shall be solely and exclusively responsible for obtaining
      the approval of such employer, and otherwise complying with NYSE Rule
      407.

              

      

       

      
        	
                 

              	
                G.

              	
                Soft-Dollar
      Arrangements

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for compliance with the
      Applicable Laws and Rules applicable to each agreement, arrangement or
      understanding, if any, that it may have with any agent exercising any
      authority (including, without limitation, investment discretion) over any
      Account to use commissions to obtain research or other services
      (collectively, a “Soft-Dollar
Arrangement”).

              

      

      

      
        	
                 

              	
                H.

              	
                Directed-Brokerage
      Arrangements

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for compliance with the
      Applicable Laws and Rules applicable to each agreement, arrangement or
      understanding, if any, that it may have with any Account to rebate any
      funds, including, without limitation, any portion of any commission,
      mark-up, mark-down, fee or other charge, or to pay the cost of any service
      or product for an account, or the expenses of an account (collectively, a
      “Directed Brokerage Arrangement”).  Correspondent shall use its
      best efforts to obtain from the Account an authorization for Ridge to rely
      on the representations and warranties of the Account in any
      Directed-Brokerage Arrangement and to be the direct beneficiary of the
      covenants, including, without limitation, any indemnification provision,
      in each case in a form acceptable to
Ridge.

              

      

      

      
        	
                 

              	
                I.

              	
                Payment for Order Flow
      Arrangements

              

      

      

      Correspondent
shall be solely and exclusively responsible for compliance with the Applicable
Laws and Rules applicable to each agreement, arrangement or understanding, if
any, that it may have with any other broker-dealer to pay for order flow, or to
receive payment for order flow (collectively, a “Payment for Order Flow
Arrangement”), including, without limitation, any disclosure
requirements.

      

      
        	
                 

              	
                J.

              	
                Prime
      Brokerage

              

      

      

      
        	
                 

              	
                No
      Account in connection with which Correspondent is to act as an executing
      broker in a prime brokerage arrangement shall be opened without the prior
      written authorization of Ridge and the execution of appropriate
      documentation by the parties to such arrangement, including, without
      limitation, an agreement in substantially the same form as the Addendum
      annexed hereto.

              

      

      

      
        	
                 

              	
                K.

              	
                Customers

              

      

      

      
        	
                 

              	
                Each
      Customer shall remain the customer of
      Correspondent.  Correspondent acknowledges that Ridge shall not
      act in the capacity of a fiduciary with respect to Correspondent or any of
      its customers.  Nothing herein shall cause any Customer to be
      construed as or deemed to be a customer of Ridge for any purpose
      whatsoever, except that, for the purposes of the Securities Investor
      Protection Act and the “financial responsibility” rules of the SEC,
      Customers shall be deemed to be customers of Ridge as Correspondent’s
      clearing firm, but only to the extent required by the Applicable Laws and
      Rules.

              

      

      

      

      
        	
                 

              	
                L.

              	
                Screening of
      Accounts

              

      

      

      
        	
                 

              	
                Ridge
      may, in its sole and exclusive discretion, utilize at Correspondent’s
      expense a third-party service provider to screen Customers and
      transactions in the Accounts, and the use thereof shall not relieve
      Correspondent of any of its obligations under this
      Agreement.  Correspondent acknowledges that such screening or
      the preparation or possession of surveillance records or any other data
      (including, without limitation, exception reports) by Ridge on behalf of
      or for the use of Correspondent shall not obligate Ridge to review such
      material or make Ridge responsible to know their
  contents.

              

      

       

      
        	
                 

              	
                M.

              	
                Discretionary
      Accounts

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for the handling and
      supervisory review of any Customer Accounts over which Correspondent’s
      partners, officers or employees have discretionary authority, as required
      by NYSE Rule 408, and any other provisions of the Applicable Laws and
      Rules.  Correspondent shall furnish Ridge with such
      documentation with respect thereto as may be requested by
      Ridge.  Correspondent hereby warrants that with regard to any
      orders or instructions given by Correspondent with respect to such
      discretionary Customer Accounts, its partners, officers or employees shall
      have been fully and properly authorized relative thereto and that the
      execution of such orders shall not be in violation of the Applicable Laws
      and Rules.

              

      

      

      
        	
                 

              	
                N.

              	
                Option
      Accounts

              

      

      

      
        	
                 

              	
                Before
      a Customer Account may engage in option trading, Correspondent shall
      deliver to Customer a current disclosure statement of the Options Clearing
      Corporation, the Special Statement for Uncovered Option Writing, and any
      effective amendments or supplements thereto.  Correspondent
      shall obtain the required signatures on all option agreements, shall
      obtain proper approval for the opening of all option accounts, and shall
      otherwise comply with the Applicable Laws and Rules applicable to options
      accounts and options trading.  Correspondent shall deliver to
      Ridge a copy of a signed option agreement for each Customer approved by
      Correspondent for options trading, such agreement to be in a form
      acceptable to Ridge.

              

      

      

      
        	
                 

              	
                O.

              	
                Accounts for Which Agent Holds
      Power of Attorney

              

      

      

      
        	
                 

              	
                Upon
      the opening of any Customer Account for which an agent holds a power of
      attorney on behalf of a principal, Correspondent shall provide Ridge
      with the name of each principal for whom such agent is acting and with
      written evidence of the agent’s authority to act on the principal’s
      behalf.  Correspondent hereby warrants that any orders or
      instructions of such agent which are transmitted to Ridge pursuant to this
      Agreement shall have been fully and properly authorized and that the
      execution of such instructions or orders shall not violate the Applicable
      Laws and Rules.

              

      

      

      
        	
                 

              	
                P.

              	
                Prospectus
      Delivery

              

      

      

      Correspondent
shall be solely and exclusively responsible for delivering, or causing to be
delivered, prospectuses in connection with public offerings of securities (both
initial public and secondary offerings) and sales of mutual funds; provided, however, that, at the
request of Correspondent, Ridge may, in its sole and exclusive discretion,
assist Correspondent in mailing prospectuses that are delivered to Ridge in a
timely fashion.

      

      Q.            Proprietary Accounts of
Correspondent

      

      In
accordance with the SEC Net Capital Rule (Rule 15c3-1) and for the purposes of
the Securities Investor Protection Act and the SEC’s financial responsibility
rules, Correspondent will be treated as a client of Ridge.

      

      Account
statements of activity for Correspondent’s Accounts are issued and forwarded to
Correspondent directly by Ridge.

      This
Section of the Agreement is in conformity with the SEC No-Action Letter, dated
November 3, 1998 (“No-Action Letter”) relating to the capital treatment of
assets in the proprietary account of an introducing broker (“PAIB”) and to
permit Correspondent to use PAIB assets in its net capital computations.
Correspondent shall identify to Ridge in writing all accounts that are, or from
time to time may be, proprietary accounts of Correspondent.  Ridge
shall perform a computation for PAIB assets (“PAIB Reserve Computation”) of
Correspondent in accordance with the customer reserve computation set forth in
Rule 15c3-3 (“customer reserve formula”) with the following
modifications:

      (a)           Any
credit (including a credit applied to reduce a debit) that is included in the
customer reserve formula may not be included as a credit in the PAIB reserve
computation;

      (b)           Note
E(3) to Rule 15c3-3a which reduces debit balances by 1% under the basic method
and subparagraph (a)(1)(ii)(A) of the net capital rule which reduces debit
balances by 3% under the alternative method shall not apply; and

      (c)           Neither
Note E(1) to Rule 15c3-3a nor NYSE Interpretation /04 to Item 10 of Rule 15c3-3a
regarding securities concentration charges shall be applicable to the PAIB
reserve computation.

      

          The
PAIB reserve computation shall include all proprietary accounts of
Correspondent.  All PAIB assets shall be kept separate and distinct
from customer assets under the customer reserve formula in Rule
15c3-3.

          The
PAIB reserve computation shall be prepared within the same time frames as those
prescribed by Rule 15c3-3 for the customer reserve formula.

          Ridge
shall establish and maintain a separate “Special Reserve Account for the
Exclusive Benefit of Customers” with a bank in conformity with the standards of
paragraph (f) of Rule 15c3-3 (“PAIB Reserve Account”).  Cash and/or
qualified securities as defined in the customer reserve formula shall be
maintained in the PAIB Reserve Account in an amount equal to the PAIB reserve
requirement.

          If
the PAIB reserve computation results in a deposit requirement, the requirement
may be satisfied to the extent of any excess debit in the customer reserve
formula of the same date.  However, a deposit requirement resulting
from the customer reserve formula shall not be satisfied with excess debits from
the PAIB reserve computation.

          Within
two business days of entering into this PAIB Agreement, Correspondent shall
notify its designated examining authority in writing (with copy to Ridge) that
it has entered into this PAIB Agreement.

          Commissions
receivable and other receivables of Correspondent from Ridge (excluding clearing
deposits) that are otherwise allowable assets under the net capital rule may not
be included in the PAIB reserve computation, provided the amounts have been
clearly identified as receivables on the books and records of Correspondent and
as payables on the books of Ridge.

          If
Correspondent is a guaranteed subsidiary of Ridge or if Correspondent guarantees
Ridge (i.e., guarantees all liabilities and obligations) then the proprietary
account of Correspondent shall be excluded from the PAIB Reserve
Computation.

          Upon
discovery that any deposit made to the PAIB Reserve Account did not satisfy its
deposit requirement, Ridge shall by facsimile or telegram immediately notify its
designated examining authority and the Securities and Exchange Commission
(“Commission”).  Unless a corrective plan is found acceptable by the
Commission and the designated examining authority, Ridge shall provide written
notification within 5 business days of the date of discovery to Correspondent
that PAIB assets held by Ridge shall not be deemed allowable assets for net
capital purposes.  The notification shall also state that if
Correspondent wishes to continue to count its PAIB assets as allowable, it has
until the last business day of the month following the month in which the
notification was made to transfer all PAIB assets to another clearing
broker.  However, if the deposit deficiency is remedied before the
time at which Correspondent must transfer its PAIB assets to another clearing
broker, the Correspondent may choose to keep its assets at Ridge.

          The
parties shall adhere to the terms of the No-Action Letter (a copy of which is
attached hereto as Exhibit B and which is hereby incorporated by reference),
including the Interpretations set forth therein, in all respects.

      

      

      IV.           EXTENSION OF
CREDIT

      

      A.            Margin
Agreement

      

      Prior to
the execution or clearance of any margin transaction in an Account,
Correspondent shall obtain and provide Ridge with a margin agreement,
hypothecation agreement and con­sent to loan of securities (collectively,
“margin agreement”) executed by the Customer (or, in the case of any
Proprietary Account, executed by Correspondent), such agreement to be in a form
acceptable to Ridge.  Ridge shall have all rights and remedies
set forth in such margin agreement, in addition to those set forth in this
Agreement, with respect to Accounts which are margin accounts.  All
transactions in an Account shall be considered cash transactions until Ridge has
determined, in its sole and exclusive dis­cretion, to accept margin
transactions therein and the duly executed margin agreement has been
received by Ridge.  Ridge may cancel and rebook as a cash transaction
any margin trans­action for an Account for which no such executed margin
agreement has been received prior to settlement date, and all transaction
costs associated with each such cancellation and re­booking shall be borne
in their entirety by Correspondent.  Correspondent shall be
respon­sible for compliance with Rule 10b-16 under the 1934
Act.  Correspondent shall obtain in advance of dissemination the
written approval of Ridge of any document to be provided to Customers in
connection with Rule 10b-16 under the 1934 Act.

      

                     
B.            Margin
Requirements

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible to Ridge for the collection of
      initial margin and for maintenance at all times of margin in each Account
      sufficient to ensure compliance with Regulation T, promulgated by the
      Board of Governors of the Federal Reserve System pursuant to the 1934 Act,
      and any interpretations thereof, with any other margin or margin
      maintenance rules under the Applicable Laws and Rules, and with Ridge’s
      house margin rules.  After initial margin has been received,
      maintenance margin calls shall be generated by Ridge and made by Ridge or
      by Correspondent at the instructions of
Ridge.

              

      

      

      
        	
                 

              	
                Correspondent
      understands and acknowledges that Accounts shall be subject to any house
      rules of Ridge requiring initial margin or maintenance margin in amounts
      greater than would otherwise be required under Regulation T or any other
      provisions of the Applicable Laws and Rules.  Ridge may at any
      time, in its sole and exclusive discretion, change its house margin
      requirements as they pertain to any Account or class of accounts or
      specific securities or class of securities, including, without limitation,
      in response to market conditions and periods of extreme
      volatility.  Such changes shall be effective immediately upon
      the provision of oral notice to Correspondent.  Correspondent
      shall be solely and exclusively responsible for advising the Customers of
      any such changes and for the prompt collection of any additional margin
      necessary to ensure compliance
therewith.

              

      

      

      C.            Interest on Margin
Accounts

      

      
        	
                 

              	
                Ridge
      will charge interest on Accounts that are margin accounts in accordance
      with the margin agreements applicable to such Accounts, provided that such
      interest and other charges will not exceed amounts that may be charged
      under the Applicable Laws and Rules.  Ridge may at any time, in
      its sole and exclusive discretion, revise its credit terms and
      conditions.

              

      

      

      

      V.           TRANSMISSION, ACCEPTANCE AND
EXECUTION OF ORDERS

      

      
        	
                 

              	
                A.

              	
                Transmission of
      Orders

              

      

      

      All
orders in Accounts shall be transmitted to Ridge by Correspondent in accordance
with such procedures as Ridge may implement from time to time for that
purpose.  Customers shall not place orders directly with
Ridge.  Notwithstanding the foregoing, Ridge may, in its sole and
exclusive discretion, on a case-by-case basis, make exception and agree to
accept orders directly from a particular Customer or Account at the request of a
Correspondent; provided, however, that in
doing so Ridge shall not assume or be deemed to have assumed any of the
responsibilities for supervision of Accounts allocated to Correspondent under
this Agreement.  Ridge shall have no duty of inquiry or investigation
with respect to any orders transmitted to it for execution or
clearance.  Correspondent shall be responsible for the timely and
accurate transmission of all orders to Ridge, as well as for any errors or
discrepancies therein.

      

      
        	
                 

              	
                B.

              	
                Acceptance of
      Orders

              

      

      

      
        	
                 

              	
                Orders
      accepted by Ridge for execution and clearance shall be executed and
      cleared in accordance with Ridge’s standard practices and the Applicable
      Laws and Rules.  Ridge reserves the absolute
      right, exercisable in its sole and exclusive discretion acting in good
      faith, without prior notice to Correspondent or to the Customer, to reject
      for execution and clearance any orders or trades which exceed established
      limits or are otherwise unacceptable to Ridge due to such factors as
      adverse market conditions, assumptions regarding the volatility and
      liquidity of the subject securities, current market price, the financial
      condition or credit worthiness of Correspondent or of the Customer, any
      regulatory issues relating to Correspondent or the Customer, or for any
      reason whatsoever which, in the sole and exclusive discretion of Ridge
      acting in good faith, renders it advisable to reject an order or
      trade.  Ridge also reserves the right, exercisable in its sole
      and exclusive discretion acting in good faith, to restrict trading in
      Accounts in any manner, including, but not limited to, restricting trading
      to liquidating orders only or cash transactions only, or to prohibit
      certain trading strategies or trading of certain types of
      securities.

              

      

      

      
        	
                 

              	
                C.

              	
                Over-the-Counter
      Transactions

              

      

      

      
        	
                 

              	
                For
      all over-the-counter transactions, Correspondent shall furnish Ridge with
      the names of the respective purchasing and selling broker-dealers (except
      as otherwise provided in Section V.D. of this Agreement), and the
      wholesale and retail purchase and sale prices necessary for confirmation
      in accordance with the Applicable Laws and
  Rules.

              

      

      

      
        	
                 

              	
                D.

              	
                Designation of Contra
      Brokers

              

      

      

      
        	
                 

              	
                Whenever
      Correspondent directs Ridge to route an order to a particular broker,
      dealer, or market for execution, including, without limitation,
      designating the contra broker in an

              
	
                 

              	
                over-the-counter
      transaction for an Account, Correspondent shall be responsible to Ridge
      for all aspects of the transaction, including, without limitation, any
      duty of best execution or any failure by such contra broker or dealer to
      settle the transaction for any reason whatsoever, and Correspondent shall
      immediately reimburse Ridge for any loss, liability, claim, cost or
      expense, in each case as incurred, including, but not limited to,
      attorneys’ fees and expenses incurred or sustained by Ridge in connection
      therewith.

              

      

      

      
        	
                 

              	
                E.

              	
                Short
    Sales

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for determining and advising
      Ridge whether each order for the sale of securities for an Account is
      “long” or “short” within the meaning of the Applicable Laws and
      Rules.  Correspondent shall also be solely and exclusively
      responsible for ensuring that each short sale for an Account complies with
      Rule 10a-1 under the 1934 Act, NYSE Rule 440B, all provisions relating to
      short sales under NASD rules, and the interpretations of such rules, and
      any other applicable provisions of the Applicable Laws
  and

              
	
                 

              	
                Rules
      regarding short sales.

              

      

      

      
        	
                 

              	
                F.

              	
                Low Priced/Penny
      Stocks

              

      

      

      Ridge
shall not be required to execute orders in any securities that are not “reported
securities,” as defined in SEC Rule 3a51-1.  Correspondent shall not
accept orders for transactions in securities that do not meet such criteria
without the prior written consent of Ridge, and the disclosure requirements of
SEC Rule 3a51-1 do not apply.

      

      
        	
                 

              	
                G.

              	
                Order Limits; Position and
      Credit Limits

              

      

      

      
        	
                 

              	
                Correspondent
      shall be responsible for maintaining continuing familiarity and compliance
      with all limits on order size and all position and credit limits which
      have been or may be established by Ridge with respect to transactions in
      the Accounts, which limits may be changed from time to time by Ridge in
      its sole and exclusive discretion.  Correspondent agrees to
      notify Ridge and obtain its approval prior to the entry of any trade in an
      Account which would exceed such
limits.

              

      

      

      
        	
                 

              	
                H.

              	
                Delivery Versus
      Payment

              

      

      

      
        	
                 

              	
                Correspondent
      agrees to comply with NYSE Rule 226 by ensuring that its Customers utilize
      the facilities of a securities depository for the confirmation,
      acknowledgment, and book entry settlement of all depository eligible
      transactions in connection with delivery versus payment
      transactions.  Correspondent shall be solely and exclusively
      responsible for causing any Customers engaging in such transactions to
      utilize such facilities.  Correspondent further agrees to ensure
      that its Customers shall provide their agent with instructions in
      accordance with the requirements set forth in NASD Rule
    11860.

              

      

      

      

      
        	
                 

              	
                I.

              	
                Buy-Ins and Sell-Outs; Interest
      Charges

              

      

      

      
        	
                 

              	
                Upon
      the failure of any Customer (or, in the case of Proprietary Accounts,
      Correspondent) to make timely payment for securities purchased or timely
      and good delivery of securities sold, or the failure timely to comply with
      any applicable margin requirements, Ridge will be entitled, but not
      obligated, to take such remedial action, or direct Correspondent to take
      such remedial action, as Ridge, in its sole and exclusive discretion,
      deems appropriate, including, but not limited to, executing buy-ins or
      sell-outs for an Account.  Checks shall not consti­tute
      payment until they have cleared and the proceeds have been collected by
      Ridge’s bank and credited to Ridge.  The taking or not taking of
      any such remedial action by Ridge shall not in any way affect or diminish
      Correspondent’s indemnification, reimbursement, or payment obligations
      pursuant to this Agreement.

              

      

      

      
        	
                 

              	
                To
      the extent permitted by Regulation T, Rule 15c3-3(m) under the 1934 Act,
      or any other provisions of the Applicable Laws and Rules, Correspondent
      may request, in a writing signed by an officer, partner or principal of
      Correspondent, that Ridge defer a buy-in or sell-out for an
      Account.  The grant or denial, in whole or in part, of any such
      request to defer a buy-in or sell-out, or of any application for an
      extension of time for any Account to make any pay­ment required by
      Regulation T or any other provision of the Laws or Rules, shall remain
      within the sole and exclusive discretion of
      Ridge.  Correspondent shall be liable to Ridge for any loss or
      expense incurred by Ridge in connection with such request, whether or not
      granted.

              

      

      

      
        	
                 

              	
                Ridge
      may, at its option, charge Customers (or, in the case of Proprietary
      Accounts, Correspondent) interest at the rate of 2% above the broker’s
      call rate, or such other rate as may be agreed in writing by Correspondent
      and Ridge, arising from any debit in an Account however

              
	
                 

              	
                arising,
      including, without limitation, for late payments or deliveries of
      securities.  Correspondent shall be liable to Ridge for such
      charges to the extent not paid by
Customers.

              

      

      

      
        	
                 

              	
                J.

              	
                Option Assignments, Tender
      Offers, and Rights Offerings

              

      

      

      
        	
                 

              	
                Ridge
      will process option assignments, tender offers, and rights offerings only
      in accordance with the written instructions of Correspondent or the
      Customer.

              

      

      

      
        	
                 

              	
                Ridge
      may, in its sole and exclusive discretion, buy back in the cash market or
      borrow shares on the day Ridge is notified of option assignments affecting
      shares which have been tendered and which have caused short positions in
      Accounts as of either the proration or withdrawal date.  Shares
      purchased for cash or borrowed shall not be considered part of an
      Account’s tendered position until such shares are in Ridge’s actual
      possession.  Ridge will reduce the tender for Accounts by the
      size of the short or unreceived
shares.

              

      

      

      
        	
                 

              	
                During
      a tender period in which there are competing and counter tender offers for
      a security, Ridge will tender only upon the written instructions of
      Correspondent or the Customer and only on a trade date basis the number of
      shares net long in the Account as of either the proration or withdrawal
      date, which number shall, at Ridge’s request, be confirmed in writing by
      Correspondent.  Correspondent shall be solely and exclusively
      responsible for ensuring that such tender is being made upon the
      instructions of persons authorized to direct the disposition of the shares
      and, at Ridge’s request, shall confirm it in
  writing.

              

      

      

      
        	
                 

              	
                In
      connection with a rights offering, Ridge will exercise rights only upon
      the written instruc­tions of Correspondent or the Customer and
      only on a trade date basis the number of rights relating to shares net
      long in the Account, which number shall, at Ridge’s request, be confirmed
      in writing by Correspondent.  Correspondent shall be solely and
      exclusively responsible for ensuring that such exercise is being made upon
      the instructions of persons authorized to do so and, at Ridge’s request,
      shall confirm it in writing.

              

      

      

      K.           Options
Policy

      

      At Ridge
it is the policy that no uncovered (“naked”) index options orders are to be
entered on behalf of any client or correspondent.  In addition, all
option orders are required to be designated as opening or closing, whichever
term applies.  Correspondent is responsible for ensuring compliance
with this policy and will be liable for the consequences of any violations,
including, but not limited to, any damages caused.  Ridge may
terminate this Agreement in the event that you fail to comply with this
policy.

       

      
        	
                 

              	
                L.

              	
                Participation in Underwritings
      / Special Requirements

              

      

      

      Correspondent
agrees that, if it participates in Initial Public Offerings (IPO’s) either as a
Manager or a Co-Manager, it shall provide Ridge’s Risk Manager with a
preliminary prospectus (“Red Herring”) and an estimate of the size of
Correspondent’s commitment, as soon as practicable after the filing of the Red
Herring.

      

      

      
        	
                 

              	
                M.

              	
                Execution
      Away

              

      

      

      In the
event you execute your own orders and give Ridge’s name to the other broker for
clearance and settlement, you agree that you will only execute bona fide orders
or request free delivery of cash or securities where you have reasonable grounds
to believe that the Account and the other broker have the financial capability
to complete the transaction.  Ridge reserves the right at
any

      time to
place a limit (of either dollars or number of securities) on the size of
transactions that Ridge in these circumstances will accept for
clearance.  If, after you have received notice of such limitation, you
execute an order in excess of the limit established by Ridge, Ridge shall have
the right to notify the other party and other broker that it will not accept the
transaction for clearance and settlement.  In the event any claim is
asserted against Ridge by the other broker because of such action by Ridge, you
agree to indemnify and hold Ridge harmless from any loss, liability, damage,
cost or expense (including but not limited to fees and expenses of legal
counsel) arising directly or indirectly therefrom.

      

      In the
event you execute orders away from Ridge, Ridge will on a best efforts basis
attempt to clear the transaction within a reasonable period and utilize the same
procedures it utilizes when clearing transactions on behalf of other firms
clearing through Ridge.  If either you or the other broker for any
reason whatsoever fail to settle the transaction, you will be solely liable to
Ridge for any and all loss, including expenses caused thereby and Ridge shall
have no liability to you whatsoever in any such circumstance.  You
further agree to take all appropriate capital charges on your books arising out
of or incurred in connection with your executing orders away from
Ridge.

      

      Notwithstanding
the foregoing, option transactions shall be executed on behalf of Customers and
Accounts solely and exclusively by Ridge.

      

      

      
        	
                VI.

              	
                RECEIPT AND DELIVERY OF FUNDS
      AND SECURITIES

              

      

      

      
        	
                 

              	
                A.

              	
                Receipt and Delivery in the
      Ordinary Course of Business

              

      

      

      
        	
                 

              	
                Ridge
      will receive and deliver funds and securities for Accounts in accordance
      with Correspondent’s written instructions to Ridge, provided that
      Correspondent shall be responsible for advising Customers of their
      obligations to deliver funds or securities in connection with each
      trans­action in an Account and shall be responsible for any failure by
      a Customer to satisfy such obligations.  Correspondent agrees
      promptly to deliver to Ridge any and all funds or securities received by
      Correspondent from Customers, together with such information as may be
      relevant or necessary to enable Ridge properly to record such
      deliveries in the appro­priate Accounts.  Ridge will be
      responsible for the safeguarding of all funds and securities actually
      received and accepted by Ridge, subject to count and verification by
      Ridge.  Ridge shall not be responsible for any funds or
      securities delivered by a Customer to Correspondent or its agents or
      employees until such funds or securities are physically de­livered to
      and accepted by Ridge at its premises or deposited in Ridge’s bank
      accounts.  It is expressly understood and agreed, however, that
      Correspondent shall be responsible for com­pliance with the Currency
      Act, and the regulations promulgated thereunder.  Ridge reserves
      the right to reject any funds or securities, without prior notice to
      Correspondent or to the Customer, that it determines, in its sole and
      exclusive discretion, may violate or cause a violation of the Applicable
      Laws and Rules, including, without limitation, the Bank Secrecy Act, the
      Patriot Act, and the regulations promulgated
  thereunder.

              

      

      

      
        	
                 

              	
                B.

              	
                Lost, Stolen or Forged
      Securities

              

      

      

      
        	
                 

              	
                Correspondent
      shall be respon­sible for any defect in title to any securities
      purchased, sold, borrowed, delivered or transferred under this Agreement
      which may have been forged, counterfeited, altered, lost, stolen, or the
      subject of any similar occurrence or
act.

              

      

      

      
        	
                 

              	
                C.

              	
                Custody
      Services

              

      

      

      
        	
                 

              	
                Whenever
      Ridge acts as custodian of securities in any Account or holds securities
      in “safekeeping”, Ridge may hold the securities in the Customer’s name
      (“Customer Name Securities”), or may cause such securities to be
      registered in the name of Ridge or its nominee or in the names or nominees
      of any depository used by Ridge (“Nominee Name”).   If
      securities are held in the name of the Customer (i.e., not in Nominee
      Name), Ridge will have no responsibility for, among other things,
      collecting and paying of dividends, transmitting and handling tenders or
      exchanges pursuant to tender offers and exchange offers,
      transmitting  proxy materials and other shareholder
      communications, and  handling  exercises or
      expirations of rights and warrants or
  redemptions.

              

      

      

      
        	
                 

              	
                D.

              	
                Receipt and Delivery Pursuant
      to Special Instructions

              

      

      

      
        	
                 

              	
                Upon
      special instructions from Correspondent or from a Customer, Ridge will
      endeavor to make such transfers of securities or Accounts as may be
      requested, consistent with the Applicable Laws and Rules.  Any
      such special instructions shall be in
writing.

              

      

      

      
        	
                 

              	
                E.

              	
                Restricted or Control
      Securities

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for determining whether any
      secu­rities in Accounts are restricted and/or control securities
      within the meaning of Rule 144 under the 1933 Act, and for ensuring that
      any transactions in such securities are in compliance with the Applicable
      Laws and Rules.  Prior to the time an order in such securities
      is transmitted to Ridge, Correspondent shall notify Ridge and Ridge may,
      in its sole and exclusive discretion, charge such reasonable fees, in
      addition to the clearing charges described below, as it deems appropriate
      for handling such transactions.

              

      

      

      

      
        	
                VII.

              	
                CONFIRMATIONS AND
      STATEMENTS

              

      

      

      
        	
                 

              	
                A.

              	
                Preparation and
      Transmission

              

      

      

      In the
case of Customer Accounts, Ridge will prepare and mail confirmations and monthly
or quarterly statements of account to Customers in connection with
trans­ac­tions executed or cleared through
Ridge.  Confirmations and statements of account shall disclose that
the Accounts are carried on a fully-disclosed basis for
Correspondent.  Correspondent acknowledges that such
confirmations shall be prepared and delivered on Correspondent’s behalf and at
its direction, and that such confirmations shall remain, for all pur­poses,
the confirmations of Correspondent.  Correspondent further
ac­knowledges that it shall have sole and exclusive responsibility for
information that it provides or fails to provide for disclosure on confirmations
and monthly or quarterly statements.  Accordingly, Correspondent shall
provide in writing to Ridge any information required by the Applicable Laws and
Rules to be disclosed in its confirmations and monthly and quarterly statements,
including, without limitation, information required in connection with any
Directed-Brokerage Arrangement or Payment for Order Flow Arrangement.
  Correspondent shall review and approve in writing the form of
confirmations and monthly and quarterly statements of account prior to their
use.   Ridge will provide Correspondent with copies of all
confirmations and statements sent by Ridge to Customers in connection with
the Accounts.  Correspondent shall not prepare or transmit
confirmations or periodic account statements to Customers without the prior
written consent of Ridge.

      

      
        	
                 

              	
                B.

              	
                Examination and Notification of
      Errors

              

      

      

      

      Correspondent
shall examine promptly all confirmations, comparisons, monthly and quarterly
statements of account, the Reconciliation Statements (as defined in Section
IX.C. of this Agreement), and any other statements or reports provided to
Correspondent by Ridge or its clearing agency.  Confirmations and
comparisons shall be deemed accurate and correct, and Correspondent shall be
deemed to have waived any claim with respect to the accuracy or correctness of
the information therein, unless Correspondent notifies Ridge in writing of any
alleged errors or discrepancies prior to the settlement date for the subject
transactions.  Monthly and quarterly statements of account shall be
deemed accurate and correct, and Correspondent shall be deemed to have waived
any claim with respect to the accuracy or correctness of the information
therein, unless Correspondent notifies Ridge in writing of any alleged errors or
discrepancies within ten (10) business days of receipt.  Any notice of
error shall be accom­panied by such documentation as may be necessary to
substantiate Correspondent’s claim.  At the request of Ridge,
Correspondent promptly shall provide any additional documentation or information
Ridge reasonably believes is necessary or desirable to substantiate and correct
any such alleged error or discrepancy.

      

      
        	
                 

              	
                C.

              	
                Notations on Confirmations,
      Monthly and Quarterly Statements, and
  Notices

              

      

      

      
        	
                 

              	
                Ridge
      will make reasonable efforts to indicate on confirmations, monthly and
      quarterly statements, and notices to Customers that Customers are
      customers of Correspondents or are introduced by
      Correspondent.  Occasional or inadvertent omission of such
      notations shall not be deemed to constitute a breach of this Agreement,
      and shall not affect the allocation of responsibilities between Ridge and
      Correspondent pursuant to this
Agreement.

              

      

      

      

      
        	
                VIII.

              	
                BOOKS AND
      RECORDS

              

      

      

      
        	
                 

              	
                Ridge
      will prepare and maintain stock records and other prescribed books and
      records of the services performed and transactions effected by Ridge for
      the Accounts on a basis consistent with generally accepted practices in
      the securities industry and with the Applicable Laws and Rules governing
      clearing brokers.  Such books and records will include, without
      limitation, records of daily margin requirements as required by NYSE Rule
      432.  Ridge reserves the right, at its sole and exclusive
      discretion, to amend its policies with respect to the retention of reports
      requested by or provided to Correspondent.  Any reports relating
      to the Accounts that, under the Applicable Laws and Rules, are required to
      be prepared and filed with the SEC or any other regulatory or
      self-regulatory organization by Correspondent or Ridge shall remain the
      responsibility of the respective parties, and Ridge and Correspondent each
      agrees promptly to provide the other with any information in its
      possession necessary to enable the other to prepare and file any such
      reports.

              

      

      

      

      
        	
                IX.

              	
                COMMISSIONS AND CLEARING
      FEES

              

      

      

      
        	
                 

              	
                A.

              	
                Commissions

              

      

      

      
        	
                 

              	
                Correspondent
      shall be solely and exclusively responsible for determining the amount of
      commissions, mark-ups and similar fees charged by Correspondent
      (collectively, “Commissions”) for transactions in the Customer Accounts,
      and Ridge shall not exercise any control or influence over the amount of
      such Commissions.  Correspondent shall be solely and exclusively
      responsible for compliance with the Applicable Laws and Rules
      relating to commissions, including, but not limited to, any disclosures to
      Customers or others re­quired to be made in connection
      therewith.  On or before the execution of this Agreement,
      Correspondent shall have provided Ridge with a schedule (the “Commission
      Schedule”) show­ing the amounts of Commissions to be charged to
      Customers.  Correspondent may amend the Commission Schedule from
      time to time by written instructions to Ridge.  Ridge will debit
      and collect from Customer Accounts the amounts shown on the Commission
      Schedule, but Ridge will be required to implement any amendments to the
      Commission Schedule only to the ex­tent and over such time as is
      within the normal capabilities of

              
	
                 

              	
                Ridge’s
      data pro­cessing and operations systems.  Notwithstanding
      anything herein to the contrary, Ridge shall not be obli­gated to
      charge Customers any amounts that it believes violate the Applicable Laws
      and Rules, but Ridge will have no obligation to determine whether any such
      charges violate the Applicable Laws and
Rules.

              

      

      

      
        	
                 

              	
                B.

              	
                Clearing
      Fees

              

      

      

      
        	
                 

              	
                Correspondent
      agrees to pay Ridge the clearing fees and other amounts set forth
      in  Schedule B hereto for the execution, clearing and related
      services to be provided under this Agreement.  Schedule B
      is hereby incorporated in and made an integral part of this
      Agreement.

              

      

      

      
        	
                 

              	
                C.

              	
                Collection and Remittance of
      Commissions

              

      

      

      
        	
                 

              	
                On
      behalf of Correspondent, Ridge will collect all Commissions paid by
      Customer Accounts and will deduct and retain the following amounts from
      such Commissions:

              

      

      

      
        	
                 

              	
                1.

              	
                all
      amounts payable to Ridge in accordance with Schedule B and any amendments
      thereto;

              

      

      

      
        	
                 

              	
                2.

              	
                any
      expenses payable by Ridge on Correspondent’s
  behalf;

              

      

      

      
        	
                 

              	
                3.

              	
                any
      loss, liability, dam­age, claim, cost or ex­pense (including, but
      not limited to, attorneys’ fees and expenses), as incurred, in respect of
      which Ridge or any of its control persons, directors, officers, employees,
      agents, affiliates, successors and assigns (collectively, including Ridge,
      the “Ridge Parties”) is entitled to indemnification by Correspondent under
      this Agreement; and

              

      

      

      
        	
                 

              	
                4.

              	
                all
      other amounts owed by Correspondent or by any Customer to Ridge pursuant
      to this Agreement or any other agreement between Ridge and Correspondent
      or between Ridge and any Customer (including, without limitation,
      Customers’ unsecured debit items or unsecured or partially secured short
      positions).

              

      

      

      
        	
                 

              	
                As
      soon as practicable after the end of each month, Ridge will credit the
      Settlement Deposit Account (as defined in Section X.B. of this Agreement)
      with the amount of Commissions collected by Ridge on Correspondent’s
      behalf, net of all amounts to be deducted as set forth above and any other
      amounts due to Ridge from Correspondent, however arising, as determined by
      Ridge.  If the amount due to Ridge in any month exceeds the
      amount available in Correspondent’s Settlement Deposit Account,
      Correspondent shall, in accordance with the provisions of Section X.A. of
      this Agreement, immediately deposit with Ridge additional cash so that the
      Settlement Deposit Account shall always have a zero or credit
      balance.  If Correspondent fails to make such additional
      deposit, Ridge will have full rights of setoff, including, without
      limitation, the right to charge any other Account maintained by Ridge for
      Correspondent or any other assets of Correspondent held by Ridge,
      including, but not limited to, the Security Deposit (as defined in Section
      X.B. of this Agreement) and positions and balances in Accounts which are
      proprietary accounts of Correspondent, for the net amount due
      Ridge.  If Ridge elects not to charge such other Accounts or
      assets, or such assets are insufficient to discharge the net amount due to
      Ridge, any amount due to Ridge will be paid to Ridge by Correspondent by
      check within ten (10) days of Correspondent’s receipt of a statement (the
      “Reconciliation Statement”) showing the amount due to Ridge.  If
      Ridge does not receive payment within such period, Ridge will charge
      Correspondent interest at 2% above the broker’s call rate, or such other
      rate as may be agreed in writing by Ridge and Correspondent until
      paid.  Any failure by Ridge to charge the Settlement Deposit
      Account or any other Account or assets of Correspondent held by Ridge
      shall not act as a waiver of Ridge’s right to demand payment of, or to
      charge Correspondent’s Accounts for, the full amount due at any
      time.

              

      

      

      

      
        	
                X.

              	
                SECURITY FOR OBLIGATIONS OF
      CORRESPONDENT

              

      

      

      
        	
                 

              	
                A.

              	
                Lien and Security
      Interest

              

      

      

      
        	
                 

              	
                In
      order to secure the performance by Correspondent of all of its obligations
      under this Agreement, including, but not limited to, its liability to
      Ridge for any failures by Customers timely to pay for or deliver
      securities purchased or sold and for any losses resulting from unsecured
      debit balances or short positions in Accounts, Correspondent hereby grants
      Ridge a continuing lien, security interest in and right of setoff against
      (a) the Settlement Deposit Account and the Security Deposit (as such terms
      are defined below), (b) any Proprietary Accounts, and (c) any
      Commissions, funds, securities or other property of Correspondent held by
      Ridge.  Correspondent further agrees that Ridge may debit any
      cash balances and/or liquidate any securities held in the Settlement
      Deposit Account or in any Proprietary Account and credit the proceeds to
      Ridge in such amounts as are necessary to satisfy Correspondent’s
      obligations under this Agreement and at such times as Ridge, in its sole
      and exclusive discretion, deems appropriate.  The lien, security
      interest and right of setoff created hereunder shall survive the
      termination of this Agreement until such time as, in the sole and
      exclusive discretion of Ridge, security for the performance of
      Correspondent’s obligations is no longer
  required.

              

      

      

      
        	
                 

              	
                B.

              	
                Settlement Deposit Account and
      Security Deposit

              

      

      

      
        	
                 

              	
                On
      or before the execution of this Agreement, Correspondent shall have
      established an account (the “Settlement Deposit Account”) with
      Ridge.  The Settlement Deposit Account shall at all times
      contain cash and/or securities issued or guaranteed as to principal and
      interest by the United States (“U.S. Government Securities”) having an
      aggregate present value as set forth in Schedule B (the “Security
      Deposit”).  Ridge reserves the right, in its sole and exclusive
      discretion, on written notice to Correspondent, at any time, to increase
      the amount of the Security Deposit required to be maintained by
      Correspondent.  Correspondent shall immediately transfer to the
      Settlement Deposit Account sufficient cash and/or U.S. Government
      Securities to satisfy the increased amount of the Security
      Deposit.  If Correspondent fails to transfer such additional
      cash or U.S. Government Securities to the Settlement Deposit Account, or
      if, for any other reason, including, but not limited to, the exercise of
      any right of setoff pursuant to Section X.A. of this Agreement, the
      aggregate value of cash and U.S. Government Securities in the Settlement
      Deposit Account is less than the Security Deposit amount then in effect,
      Ridge will be entitled to deposit in the Settlement Deposit Account such
      Commissions, funds, securities or other property of Correspondent in
      Ridge’s possession as are necessary to satisfy the
      deficiency.  No later than thirty (30) days after termination of
      this Agreement, Ridge shall refund all cash or securities in the Settlement
      Deposit Account except for (i) deductions on account of (a) all clearing
      and other charges, costs, or expenses due Ridge in accordance with the
      terms of this Agreement, including any minimum monthly fee set forth on
      Schedule B to the extent applicable; (b) all charges payable by Ridge on
      your account; and (c) all amounts due Ridge from you under this Agreement
      including amounts arising from any losses, liabilities, or damages in
      accordance with the terms hereof and (ii) amounts held back as determined
      by Ridge, in the reasonable exercise of its discretion, to be necessary to
      protect itself fully against any liabilities, costs, or expenses (whether
      mature or contingent, liquidated or unliquidated) for which Correspondent
      may be responsible under the terms of this Agreement (without limiting the
      foregoing, amounts held back may include reasonable amounts on account of
      transactions in respect of Customer Accounts that have settled for ten
      days or less and on account of margin accounts of your Customers or other
      Customer Accounts having a debit balance, other than accounts that
      Correspondent has agreed in writing to
accept).

              

      

      

      C.            Funds, Securities and No
Interest

      

      
        	
                 

              	
                All
      funds transferred to the Settlement Deposit Account shall be in
      immediately available United States funds.  All securities
      transferred to the Settlement Deposit Account (a) shall be in
      suitable form for transfer or shall be accompanied by duly executed
      instruments of transfer or assignment in blank and such other
      documentation as Ridge may request, and (b) shall be transferred on
      the book-entry system of a Federal Reserve Bank, or by any other method
      acceptable to Ridge.  Ridge shall not be obligated to pay
      interest to Correspondent on any cash held in the Settlement Deposit
      Account.  Neither the Security Deposit nor the Settlement
      Deposit Account shall be deemed to be margin for any Account, nor shall
      they give rise to or constitute an ownership interest in
      Ridge.

              

      

      

      

      
        	
                XI.

              	
                INFORMATION TO BE SUPPLIED BY
      CORRESPONDENT

              

      

      

      
        	
                 

              	
                A.

              	
                Financial Statements and Other
      Reports

              

      

      

      
        	
                 

              	
                Throughout
      the term of this Agreement, Correspondent shall promptly furnish Ridge
      with copies of, as well as any amendments or supplements to, the audited
      annual and unaudited quarterly financial statements of its parent, for
      each fiscal year and quarterly period, any Financial and Operational
      Combined Uniform Single (“FO­CUS”) Reports, any amendments to
      Correspondent’s Form BD, any reports on Form U-4 or Form U-5 for any of
      Correspondent’s executive officers, and any other material regulatory or
      financial reports that Ridge may from time to time reasonably
      request.  Correspondent shall promptly advise Ridge in writing
      of any material errors or omissions in such financial information and
      reports that it becomes aware of.  Correspondent further will
      immediately provide notice to Ridge in the event that Correspondent’s
      capital becomes subject to the “early warning” provisions of SEC Rule
      17a-11.  With respect to such reports and notice that
      Correspondent with its primary examining authority or the SEC
      Correspondent shall provide such reports and notice to Ridge no later than
      the time Correspondent files such reports with its primary examining
      authority or the SEC.

              

      

      

      

      
        	
                 

              	
                B.

              	
                Suspension or
      Restriction

              

      

      

      
        	
                 

              	
                In
      the event that Correspondent learns that Correspondent or any of its
      affiliates or executive officers be­comes subject to revocation,
      suspension, bar, injunction, restriction, consent decree, cease-and-desist
      order, or other formal disciplinary action by the SEC, the Financial
      Industry Regulatory Authority (“FINRA”), or any other regulatory or
      governmental body having jurisdiction over Correspondent or such affiliate
      or executive officer, Correspondent shall notify Ridge promptly and, in
      addition to such other rights and remedies as Ridge may have under this
      Agreement and the Applicable Laws and Rules, Correspondent authorizes
      Ridge to take such reasonable steps as Ridge determines, in its sole and
      exclusive discretion, may be necessary or advisable for Ridge to be in
      compliance with the Applicable Laws and Rules.  Correspondent
      further authorizes Ridge, in such event, to comply with requests,
      directives or demands made upon Ridge by any such exchange or regulatory
      body.  In connection with such requests, directives or demands,
      Ridge may seek advice or legal
counsel.

              

      

      

      
        	
                 

              	
                C.

              	
                Actions, Lawsuits,
      Arbitrations, Investigations and
  Inquiries

              

      

      

      
        	
                 

              	
                In
      the event that Correspondent learns that Correspondent or any of its
      affiliates or executive officers becomes a subject, target, respondent or
      defendant in any material action, lawsuit, arbitration, investigation,
      inquiry or other proceeding (formal or informal) relating, directly or
      indirectly, to it or its business, Correspondent shall notify Ridge in
      writing within ten (10) business days and, in addition to such other
      rights and remedies as Ridge may have under this

              
	
                 

              	
                Agreement
      and the Applicable Laws and Rules, Correspondent authorizes Ridge to take
      such steps as Ridge determines, in its sole and exclusive discretion, may
      be necessary or advisable for Ridge to be in compliance with the
      Applicable Laws and Rules.

              

      

      

      
        	
                 

              	
                D.

              	
                Additional
      Information

              

      

      

      
        	
                 

              	
                At
      the reasonable request of Ridge, Correspondent shall promptly supply Ridge
      with such other infor­mation, reports or documentation reflecting or
      relating to Correspondent’s finan­cial condition, including, without
      limitation, its aggregate indeb­tedness ratio and net capital;
      Correspondent’s executive officers; and inquiries, investi­gations, or
      disciplinary action relating to Correspondent or  its executive
      officers by the SEC, NYSE, NASD, or any other regulatory or governmental
      body.   Within five (5) business days after their filing,
      Correspondent shall supply Ridge with copies of reports that it files
      pursuant to the Bank Secrecy Act, the Patriot Act, or any other AML
      provision, including, without limitation, CTRs, CMIRs, SARs or
      FBFARS.  At the request of Ridge, Correspondent shall (i) file a
      notice pursuant to Section 314 of the Patriot Act and any regulation(s)
      promulgated thereunder to permit the voluntary sharing of information
      between the parties, and (ii) supply Ridge with such additional
      information as is necessary for Ridge to satisfy its obligations under the
      Bank Secrecy Act, the Patriot Act, and the regulations promulgated
      thereunder.

              

      

      

      

      
        	
                XII.

              	
                COMMUNICATIONS WITH
      CUSTOMERS

              

      

      

      
        	
                 

              	
                Correspondent
      shall provide written notice to existing Customers within (30) thirty days
      of the effective date of this Agreement, and to new Customers within (30)
      thirty days of execution of the relevant customer agreement, describing
      the respective obliga­tions of the parties under this Agreement and
      any other customer-related respon­sibilities of the parties in
      accordance with NYSE Rule 382 and NASD Rule 3230.  The
      notifications shall be in substantially the form of Exhibit A annexed
      hereto; provided, however, that Ridge may, in its sole and exclusive
      discretion, provide the notifications on behalf of
      Correspondent.  Correspondent shall be responsible for the
      payment of all costs incurred in connec­tion with the preparation and
      mailing of the notifications.

              

      

      

      
        	
                 

              	
                Ridge
      and Correspondent each agrees to forward promptly to the other party a
      copy of any written complaint received from a Customer or other material
      written correspondence that relates to services provided or obligations
      assumed under this Agreement by the other party.  Ridge and
      Correspondent each agrees to forward promptly to the other party’s DEA a
      copy of any written complaint received from a Customer that relates to
      services provided or obligations assumed under this Agreement by the other
      party.  Correspondent agrees to forward promptly to Ridge a copy
      of all of Correspondent’s filings pursuant to NYSE Rule
      351.  Correspondent shall also provide Ridge with such
      additional information as Ridge may reasonably
  request.

              

      

      

      

      
        	
                XIII.

              	
                ERRORS, CONTROVERSIES AND
      ADDITIONAL INDEMNITIES

              

      

      

      
        	
                 

              	
                A.

              	
                Errors and
      Controversies

              

      

      

      
        	
                 

              	
                Correspondent
      shall, except to the extent provided directly below, be solely and
      exclusively respon­si­ble for any error, controversy, dispute or
      discrepancy between Correspondent, or any of its control persons,
      partners, directors, officers, employees, agents, affiliates, successors
      or assigns (collectively, including Correspondent, the “Correspondent
      Parties”), and any of the Ac­counts or Customers.  Except to
      the extent otherwise provided in this Agreement and except to the extent
      resulting from the negligence of Ridge or any Ridge Party, Correspondent
      shall indemnify, and hold harmless Ridge and any Ridge Party, from and
      against any allegations, claims, demands,

              
	
                 

              	
                proceedings,
      suits, and actions and any liabilities, expenses, attorney’s fees
      (including fees and costs incurred in enforcing Ridge’s right to
      indemnification), and costs in connection therewith arising directly or
      indi­rectly from any such error, controversy, dispute or discrepancy,
      and from any action or proceeding commenced by or against any of the
      Correspondent Parties by any Customer, or from the settlement of any such
      claim, action or proceeding.

              

      

      

      
        	
                 

              	
                B.

              	
                Additional
      Indemnities

              

      

      

      Except to
the extent otherwise provided in this Agreement and except to the extent
resulting from the negligence of Ridge or any Ridge Party, Correspondent shall
indemnify, and hold harmless Ridge and any Ridge Party, from and against any
allegations, claims, demands, proceedings, suits, and actions and any
liabilities, expenses, attorney’s fees (including fees and costs incurred in
enforcing Ridge’s right to indemnification), and costs in connection therewith
arising directly or indirectly from or related to the Accounts, the Customers or
any order or transaction contemplated by this Agreement, or as a result of any
inquiry or inves­tigation conducted in con­nection therewith or in the
defense or settlement of any threatened or pending action or proceeding brought
by any regu­latory or self-regulatory organization, governmental agency or
private person arising out of or in connection with the same including, among
other things, any loss, liabili­ty, dam­age, claim, cost or ex­pense
(including, but not limited to, attorneys’ fees and expenses) arising from or
relating to any of the following:

      

      

      
        	
                 

              	
                1.

              	
                the
      failure of any Customer to make timely payment for securities purchased or
      timely and good delivery of securities sold, the existence of an unsecured
      debit balance or unsecured short position in an Account, the failure of
      any Customer timely to comply with initial margin or maintenance margin
      requirements, the failure of any Customer to pay interest in accordance
      with the applicable margin agreement(s), or the failure of any Customer
      otherwise to fulfill any of its obligations in connection with any
      Account;

              

      

      

      
        	
                 

              	
                2.

              	
                the
      failure of Correspondent to perform any duty, obligation, or
      responsibility with respect to customer accounts as set forth in this
      Agreement, it being understood that Correspondent’s indemnification
      obligation under this Paragraph shall not be affected by the participation
      of Ridge or any Ridge Party in any transaction giving rise to such an
      obligation, unless such participation constitutes recklessness, fraud, or
      criminal conduct;

              

      

      

      
        	
                 

              	
                3.

              	
                any
      defect in title to any securities purchased, sold, borrowed, delivered or
      transferred under this Agreement (including, without limitation, those
      that may have been forged, counterfeited, altered, lost or stolen), and
      any adverse claims with respect to any securities purchased, sold,
      bor­rowed, delivered or transferred under this Agreement, it being
      understood that Ridge will be deemed to be solely and exclusively an
      intermediary between Correspondent and Customers with respect to such
      securities and will be deemed to make no representations or warranties
      other than as provided with respect to intermediaries in Section 8-306 of
      the Uniform Commercial Code;

              

      

      

      
        	
                 

              	
                4.

              	
                any
      claim by any contra broker or any other person arising from or relating to
      Ridge’s rejection of a transaction for clearance pursuant to the terms of
      this Agreement, or the failure by any contra broker designated by
      Correspondent to settle any transaction for an
  Account;

              

      

      

      
        	
                 

              	
                5.

              	
                any
      errors or discrepancies in orders as transmitted by Correspondent or
      Customer to Ridge;

              

      

      

      6.       the
use of check-writing privileges pursuant to Section XXI.C. of this
Agreement;

      

      
        	
                 

              	
                7.

              	
                any
      request by Correspondent to defer a buy-in or sell-out for an Account, or
      to extend the

              
	
                 

              	
                time
      for the making of a required margin payment by an Account, whether or not
      granted in whole or in part by
Ridge;

              

      

      

      
        	
                 

              	
                8.

              	
                any
      guarantee by Ridge of any signatures with respect to a transaction in an
      Account;

              

      

      

      
        	
                 

              	
                9.

              	
                the
      exercise by Correspondent Parties of discretionary authority over any
      Account;

              

      

      

      
        	
                 

              	
                10.

              	
                any
      action or inaction by an agent holding a power of attorney for an Account
      on behalf of a principal;

              

      

      

      
        	
                 

              	
                11.

              	
                any
      claim or dispute arising directly or indirectly from a Soft-Dollar
      Arrangement, Directed-Brokerage Arrangement, or Payment for Order Flow
      Arrangement;

              

      

      

      
        	
                 

              	
                12.

              	
                any
      act or omission of Correspondent, its agents, employees or customers which
      infringes on any patent, trade secret, copyright, trademark, or other
      intellectual property right of Ridge;
or

              

      

      

      
        	
                 

              	
                13.

              	
                the
      breach by Correspondent of, or an untrue statement or omission in, any
      represen­tation, warranty or covenant in this
    Agreement.

              

      

      

      In
addition, Ridge shall indemnify, defend, and hold harmless Correspondent from
and against any claims, demands, proceedings, suits, actions, liabilities,
expenses, and reasonable attorney’s fees, and costs in connection therewith
arising out of any grossly negligent, reckless misconduct, dishonest,
fraudulent, or criminal act or omission on the part of any of Ridge’s officers
or employees with respect to the services provided by Ridge under this
Agreement.

      

      

      
        	
                 

              	
                C.

              	
                Defense of Claims and
      Actions

              

      

      

      
        	
                 

              	
                If
      any claim or action is asserted or commenced against any Correspondent
      Party or any Ridge Party (an “Indemnitee”) in re­spect of which
      indemnity may be sought against Ridge or Correspondent (an “Indemnifying
      Party”) as the case may be pursuant to this Agreement, such Indemnitee
      will notify the applicable Indemnifying Party in writing, and such
      Indemnifying Party shall assume the defense of such claim or action,
      including the employment of counsel and pay­ment of attorneys’ fees
      and expenses, as incurred, on behalf of such Indemnitee.  Each
      Indemnitee against whom such claim or action is asserted or commenced
      shall have the right to employ its own separate counsel, but the fees and
      expenses of such separate counsel shall be at the expense of such
      Indemnitee unless: (1) the employ­ment of such separate counsel shall
      have been authorized in writing by the  Indemnifying Party; (2)
      the Indemnifying Party shall not have employed counsel to conduct the
      defense of such Indemnitee; or (3) such Indemnitee shall have reasonably
      concluded that, as between such Indemnitee and the Indemnifying Party or
      between such Indemnitee and one or more of the other Indemnitees, there
      may be a conflict of interest requiring separate counsel.  In
      the event that any of the circumstances referred to in clauses (1)-(3) of
      the pre­ceding sentence occurs, the fees and expenses of the separate
      counsel employed by such Indemnitee shall be borne in their entirety by
      the Indemnifying Party, and the Indemnifying Party shall not have the
      right to direct the defense of such Indemnitee.   In any
      event, the Indemnifying Party shall cooperate in the defense of any such
      claim or action against an Indemnitee, including, without limitation, in
      the effectuation of any settlement which such Indemnitee, in its
      reasonable discretion, deems appropriate, the costs of which settlement
      shall be borne in their entirety by the Indemnifying
  Party.

              

      

      

      
        	
                 

              	
                D.

              	
                Survival of
      Indemnities

              

      

      

      
        	
                 

              	
                All
      indemnification, reimbursement and payment for expense provisions of this
      Agreement shall

              
	
                 

              	
                survive
      the termination of the Agreement.  Each indemnity under this
      Agreement shall also extend to the costs and expenses (including, but not
      limited to, attorneys’ fees and expenses), if any, incurred by any of the
      Indemnitees in enforcing such
indemnity.

              

      

      

      

      
        	
                XIV.

              	
                LIMITATION OF LIABILITY OF
      RIDGE

              

      

      

      
        	
                 

              	
                A.

              	
                Limitation of
      Liability

              

      

      

      
        	
                 

              	
                In
      no event shall either party be responsible to the other party, to any
      Customer, or to any other person for indirect, special, conse­quential
      or punitive damages arising from or relating, directly or indirectly, to
      this Agreement, regardless of whether such party has been advised of or
      might otherwise have anticipated the possibility of such damages, and
      Correspondent and Ridge each agree not to assist any claim for punitive
      damages against the other.  Ridge shall have no liability under
      this Agreement except to Correspondent.  Notwithstanding
      anything to the contrary in this Agreement, Ridge shall have no liability
      whatsoever for any losses, damages, costs or expenses which have not been
      caused by its own willful misconduct or gross
  negligence.

              

      

      

      
        	
                 

              	
                B.

              	
                Third-Party Service
      Providers

              

      

      

      
        	
                 

              	
                Ridge
      may, in its sole and exclusive discretion, use third-party service
      companies to perform or assist it in the performance of selected services
      under this Agreement (including affiliates of Ridge).  In such
      event, the term “Ridge” shall be deemed to include such third-party
      service companies, and the limitations of liability in Section XIV.A. of
      this Agreement shall apply.

              

      

      

      
        	
                 

              	
                C.

              	
                Systems and Communications
      Failures; Errors in
Instructions

              

      

      

      
        	
                 

              	
                Ridge’s
      sole responsibilities with respect to any systems or communications
      failures, or any interruptions or delays in the services provided or to be
      provided by Ridge under this Agreement, shall be to use its best efforts
      to make such systems and services available as promptly as reasonably
      practicable.  Ridge shall have no responsibility whatsoever for
      the accuracy of, or any errors or omissions in, any databases or
      securities information and related market and statistical information
      displayed, carried or furnished by or through its equipment or
      systems.  Ridge shall have no responsibility whatsoever for any
      loss, expense or damage suffered by Correspondent, any Customer or any
      other person by reason of any interruption or delay in the transfer or
      receipt of funds or securities through the Federal Reserve Book Entry
      System, the Federal Funds Wire Transfer System or any similar system or
      from any clearing agent, issuer, broker, dealer or other third
      party.  Ridge shall have no responsibility whatsoever for any
      failures to execute or “DK’s” directly or indirectly resulting from
      incorrect, incomplete or untimely instructions or any other failure by
      Correspondent, or any other person, to provide proper
      instructions.

              

      

      

      

      
        	
                XV.

              	
                ADDITIONAL REPRESENTATIONS,
      WARRANTIES AND COVENANTS

              

      

      

      
        	
                 

              	
                A.

              	
                Representations, Warranties and
      Covenants of Correspondent

              

      

      

      
        	
                 

              	
                Correspondent
      represents, warrants and covenants to Ridge as
  follows:

              

      

      

      
        	
                 

              	
                1.

              	
                Correspondent
      is, and during the term of this Agreement shall remain, duly
      registered and in good standing as a broker-dealer with the SEC, a member
      firm in good standing of the NASD, and a member in good standing of every
      national securities exchange and association of which it is a
      member.

              

      

      

      
        	
                 

              	
                2.

              	
                Correspondent
      has all requisite authority in conformity with all Applicable Laws and
      Rules to enter into and perform this Agreement and has taken all necessary
      actions to authorize the execution of this Agreement and the
      perfor­mance of its obligations
hereunder.

              

      

      

      
        	
                 

              	
                3.

              	
                Correspondent
      and each of the other Correspondent Parties is, and during the term of
      this Agreement shall remain, in compliance with the Applicable Laws and
      Rules in all material respects, including, but not limited to, the
      registration, qualification, capital, financial reporting, customer
      protection, disclosure and similar requirements of the SEC, NYSE, NASD,
      any other securities exchange or association of which it is a member, and
      every state to which jurisdiction it is
subject.

              

      

      

      
        	
                 

              	
                4.

              	
                Correspondent
      has, and during the term of this Agreement shall maintain, net capital as
      required under the Applicable Laws and Rules and the amount set forth on
      Schedule B.  Ridge may, in its sole and exclusive discretion
      acting in good faith, increase that amount if it determines that a higher
      amount is necessary and advisable for its protection; provided that Ridge
      notifies Correspondent in writing of any such increase including Ridge’s
      rationale therefore and agrees to meet with Correspondent at
      Correspondent’s request to resolve any disputes regarding such
      increase.  Correspondent shall promptly notify Ridge in writing
      in the event that Correspondent’s net capital falls below the greater of
      the amount required under the Applicable Laws and Rules and the amount set
      forth on Schedule B.

              

      

      

      
        	
                 

              	
                5.

              	
                All
      orders and instructions transmitted to Ridge by Correspondent shall be
      valid and shall have been duly and properly
  authorized.

              

      

      

      
        	
                 

              	
                6.

              	
                There
      is no material action, suit, investigation or proceeding (formal or
      informal) pending or threatened in writing against or affecting (in a
      material manner) Correspondent or any of its executive officers, by or
      before any court or other tribunal, arbitrator, governmental agency,
      instrumentality or authority or any self-regulatory or clearing
      organization, , as to which Ridge has not been informed and provided
      with summaries thereof.

              

      

      

      
        	
                 

              	
                7.

              	
                The
      activities of Correspondent pursuant to this Agreement do not and during
      the term of this Agreement shall not give rise to a prohibited transaction
      within the meaning of Section 406 of ERISA, and all applicable Prohibited
      Transaction Class Exemptions shall have been complied
  with.

              

      

      

      
        	
                 

              	
                8.

              	
                Correspondent
      has, and during the term of this Agreement shall maintain, blanket bond
      insurance policies as required under NASD Rule 3020 or NYSE Rule 319, as
      applicable.

              

      

      

      
        	
                 

              	
                9.

              	
                On
      or before the execution of this Agreement, Correspondent shall have
      identified in writing to Ridge each of its lines of business and any
      securities in which Correspondent makes a market.  Correspondent
      shall provide Ridge with an update of any securities in which
      Correspondent makes a market promptly, in order to allow Ridge to update
      transaction confirms as necessary.

              

      

      

      
        	
                 

              	
                10.

              	
                Correspondent
      shall within a reasonable time, and if not prohibited by law or any
      confidentiality agreement, give Ridge reasonable prior written notice of
      any new lines of business that materially modify the mix of business that
      Correspondent is engaged in on the date of this
      Agreement.   Such notice shall be required notwithstanding
      that such new business or different business mix does not affect the
      services to be performed by Ridge under this
  Agreement.

              

      

      

      
        	
                 

              	
                B.

              	
                Representations, Warranties and
      Covenants of Ridge

              

      

      

      Ridge
represents, warrants and covenants to Correspondent as follows:

      

      
        	
                 

              	
                1.

              	
                Ridge
      is and during the term of this Agreement shall remain duly registered and
      in good standing as a broker-dealer with the SEC, a member firm in good
      stan­ding of the NYSE and NASD, and a member in good stand­ing of
      every nation­al securities ex­change and association of which it
      is a mem­ber.

              

      

      

      
        	
                 

              	
                2.

              	
                Ridge
      has all requisite authority in conformity with all Applicable Laws and
      Rules to enter into and perform this Agreement and has taken all necessary
      actions to authorize the execution of this Agreement and the
      perfor­mance of its obligations
hereunder.

              

      

      

      
        	
                 

              	
                3.

              	
                Ridge
      has and during the term of this Agreement shall maintain net capital in an
      amount no less than that required by the Law and
  Rules.

              

      

      

      
        	
                 

              	
                4.

              	
                Ridge
      and each of the other Ridge Parties is, and during the term of this
      Agreement shall remain, in compliance with the Applicable Laws and Rules
      in all material respects, including, but not limited to, the registration,
      qualification, capital, financial reporting, customer protection,
      disclosure and similar requirements of the SEC, NYSE, NASD, any other
      securities exchange or association of which it is a member, and every
      state to which jurisdiction it is
subject.

              

      

      

      

      
        	
                XVI.

              	
                NO PARTNERSHIP OR AGENCY; NO
      SPECIAL TREATMENT

              

      

      

      
        	
                 

              	
                Neither
      this Agreement nor any activity hereunder shall create a general or
      limited partnership, association, joint venture, branch or agency
      relationship between Correspondent and Ridge.  Correspondent
      shall not hold itself out as an agent of Ridge or of any subsidiary or
      company controlled directly or indirectly by or affiliated with Ridge, nor
      shall it employ Ridge’s name in any manner that creates the impression
      that the relationship created or intended between them is anything other
      than that of clearing broker and introducing
      broker.  Correspondent shall not, without the prior written
      approval of Ridge, place any advertise­ment in any newspaper,
      publication, periodical or any other media if such advertisement in any
      manner makes reference to Ridge or to the execution and clearing
      arrangements contemplated by this Agreement.  Correspondent
      shall not, without the prior written approval of Ridge, furnish any link
      to the website(s) of Ridge or its affiliates.  Should
      Correspondent in any way hold itself out as, advertise or otherwise
      represent that it is the agent of Ridge, Ridge shall have the right, at
      its option, in addition to such other rights and remedies as it may have,
      to termi­nate this Agreement and/or to obtain injunctive relief or any
      other provision­al remedy in any New York federal or state court, and
      Correspondent shall be liable for any loss, liabili­ty, damage, claim,
      cost or expense (including, but not limited to, attorneys’ fees and
      expenses) sustained or incurred as a result of such representation of
      agency.  No such applica­tion for a provi­sional remedy,
      however, nor any act by either party in fur­therance of or in
      opposition to such applica­tion, shall constitute a relinquishment or
      waiver of any right to have the underlying dispute or con­troversy
      with respect to which such application is made settled by arbi­tration
      in accor­dance with Section XXI.M. of this
  Agreement.

              

      

      

      
        	
                 

              	
                This
      Agreement is not intended, nor shall it be construed, to bestow upon
      Correspondent any special treatment regarding any other arrangements,
      agreements or understandings that exist or may hereafter exist between the
      parties or their affiliates.  Neither party shall have any
      obligation to deal with the other in any capacity other than as set forth
      in this Agreement.

              

      

      

      

      
        	
                XVII.

              	
                CONFIDENTIALITY;
      EMPLOYEES

              

      

      

      
        	
                 

              	
                A.

              	
                Confidentiality

              

      

      

      
        	
                 

              	
                Correspondent
      and Ridge shall each keep confiden­tial any informa­tion
      acquired as a result of this Agreement regarding the business and affairs
      of the other, except such informa­tion as may be required to be
      disclosed by law or pursuant to subpoena, court order or in any regulatory
      or self-regulatory inquiry, investigation, proceed­ing or other matter
      (collectively, an “Inquiry”), or as may be required to be disclosed under
      this Agreement.  Except as otherwise prohibited by law,
      Correspondent and Ridge will each give the other prompt notice of the
      receipt of any Inquiry prior to such party’s disclosing information in
      connection therewith. Correspondent agrees not to disclose the terms of
      this Agreement to any person or entity except as may be required by law
      and except to regulatory bodies with appropriate jurisdiction and to
      authorized employees of Correspondent on a need-to-know
      basis.  Any other publication or dis­closure of the terms of
      this Agreement may be made only with the prior written consent of
      Ridge.  The confidentiality provi­sions of this Agreement
      shall survive the termina­tion of this
  Agreement.

              

      

      

      
        	
                 

              	
                B.

              	
                Employees

              

      

      

      
        	
                 

              	
                Without
      a party’s prior written consent, the other party shall not solicit, or
      engage in negotiations with, any person who is, or within the preceding
      six (6) months has been, employed by such party or by any of its
      affiliates.

              

      

      

      

      
        	
                XVIII.

              	
                TERM AND
      TERMINATION

              

      

      

      
        	
                 

              	
                A.

              	
                Term

              

      

      

      
        	
                 

              	
                The
      initial term (the “Initial Term”) of this Agreement shall commence upon
      its approval by the NYSE and shall continue until the date which is three
      (3) years from the date that the Services are first provided on a live
      basis (the “Live Date”).  The end of the Initial Term shall be
      referred to as the “Initial Expiration
Date.”

              

      

      

      The term
of this Agreement shall continue for successive one-year periods after the
Initial Term and this Agreement shall be deemed to have been ex­tended for
such one-year periods as of the Initial Expiration Date and each anniversary of
the Initial Expiration Date, provided that written notice of termination is not
provided at least sixty (60) calendar days in advance of the commencement of any
such one-year period.

      

      

       

      

       

      

       

      --

       

       

      [Missing Graphic Reference] 

       

      

      B.            Termination

       

      
        	
                 

              	
                Notwithstanding
      the foregoing, either party may terminate this Agreement, in accordance
      with the procedures set forth below, whether prior to or after the Initial
      Expiration Date, upon the occurrence of an “Event of
      Default”.  For purposes hereof, an “Event of Default” shall
      occur if:

              

      

      

      
        	
                 

              	
                1.

              	
                the
      other party fails to perform or observe any material term, covenant or
      condition to be performed hereunder and such failure continues unremedied
      for a period of ten (10) business days after receipt of written notice
      from the non-defaulting party specifying the failure and demanding that
      the other party remedy its default;

              

      

      

      
        	
                 

              	
                2.

              	
                any
      material representation or warranty made by the other party hereunder
      proves false or misleading at any time in any mater­ial
      respect;

              

      

      

      
        	
                 

              	
                3.

              	
                the
      other party is enjoined, sus­pended, prohibited, or otherwise unable
      to engage in all or a material portion of its securities business as a
      result of any administrative or judicial proceeding or action by the SEC,
      any state securi­ties law administrator, any
  national

              
	
                 

              	
                securities
      exchange, or any self-regulatory organization or governmental body having
      juris­diction over such party;
or

              

      

      

      
        	
                 

              	
                4.

              	
                the
      other party is adjudicated bankrupt or insol­vent or a trustee or
      similar creditors’ representa­tive is ap­pointed by court order;
      or any property of the other party is sequestered by court order and such
      order remains in effect for more than thirty (30) calendar days; or a
      petition is filed by or against the other party either voluntarily or
      involun­tarily under any bankruptcy, reorganization, arrangement,
      insolvency, readjust­ment of debt, dissolution or liquidation law of
      any jurisdiction, whether now or here­after in effect, and is not
      dismissed within thirty (30) calendar days after such filing; or the other
      party makes an assignment for the benefit of its creditors, or admits in
      writ­ing its inability to pay its debts gener­ally as they become
      due, or consents to the appointment of a receiver, trustee or liquidator
      for itself or for any proper­ty held by
it.

              

      

      

      
        	
                 

              	
                The
      defaulting party shall promptly advise the non-defaulting party in writing
      upon the occurrence of any event which constitutes, or with the passage of
      time would constitute, an Event of Default under this
      Agreement.  Upon the occurrence of an Event of Default under
      subsections (1) or (2) above, the non-defaulting party may, at its option,
      by notice in writing to the defaulting party, declare this Agreement
      terminated, and such termina­tion shall be effec­tive as of the
      date such notice is delivered or such later date as may be designated by
      the non-defaulting party in such notice.  Upon the
      occur­rence of an Event of Default under subsections (3) or (4) above,
      this Agreement shall immediately and automatically terminate without
      notice or any further action by the non-defaulting
  party.

              

      

      

      For
purposes of this Agreement, a termination for “Cause” shall mean a termination
by either party under this Section XVIII.B., as well as a termination by
Correspondent under Section XVIII.C. or a termination by Ridge under Section
XVI.

      

      
        	
                 

              	
                C.

              	
                Changes in the Applicable Laws
      and Rules

              

      

      

      
        	
                 

              	
                Notwithstanding
      any provision hereof, Ridge may, in its sole and exclusive discretion,
      amend the fees that it charges Correspondent if there is a material
      increase in its costs as a result of a change in the Applicable Laws and
      Rules.  Ridge agrees to give at least 60 days’ prior written
      notice to Correspondent of any such amendment.  Upon receipt of
      such written notice, Correspondent will have the right to terminate this
      Agreement during such sixty (60) day period.  No “Early
      Termination Fee” (as defined below) or “Material Change Termination Fee”
      (as defined below) shall be payable by Correspondent in the event
      Correspondent terminates this Agreement pursuant to this paragraph XVIII
      (C).

              

      

      

      
        	
                 

              	
                D.

              	
                Changes in Control or Business
      Mix

              

      

      

      
        	
                 

              	
                Notwithstanding
      any provision hereof, this Agreement may be terminated by Ridge, upon
      reasonable written notice to Correspondent, if there is a change in
      control of Correspondent or if Correspondent engages in, or is subject to,
      a material merger, acquisition or business combination or there is a
      material change in the business mix of Correspondent, in each case without
      the prior written approval of Ridge.  Correspondent shall ,
      except as prohibited by law, provide reasonable notice to Ridge in writing
      upon the occurrence of any of the events described in this
      Section.  No “Early Termination Fee” (as defined below) or
      “Material Change Termination Fee” (as defined below) shall be payable by
      Correspondent in the event Ridge terminates this Agreement pursuant to
      this paragraph XVIII (D).

              

      

      

      
        	
                 

              	
                E.

              	
                Termination
      Fee

              

      

      

      In the
event that this Agreement is terminated by Ridge for Cause or by Correspondent
for any reason other than for Cause prior to the Initial Expiration Date,
Correspondent shall pay to Ridge a termination fee (the “Early Termination Fee”)
equal to the early termination fee set forth on Schedule B, provided however
that, in the event that Correspondent terminates this Agreement in connection
with a material change in its ownership structure or as a result of a material
merger, acquisition or business combination, Correspondent shall instead pay the
“Material Change Termination Fee” set forth in Schedule B.   In
addition, in the event that this Agreement is terminated in the third year by
Ridge for Cause or by Correspondent for any reason other than for Cause,
Correspondent shall pay to Ridge an amount equal to the costs and expenses of
Ridge incurred in connection with the conversion of Accounts pursuant to Section
XVIII.F. of this Agreement, which amount shall in no event exceed
$10,000.  Correspondent shall pay the Early Termination Fee and any
applicable de-conversion charges, in immediately available U.S. funds, within
ten (10) calendar days of receipt of a written statement from Ridge setting
forth the calculation of the Early Termination Fee and any applicable
de-conversion charges.

      

      In the
event that Correspondent is the subject of the issuance of a protective decree
pursuant to the Securities Investor Protection Act of 1970 (15 USC 78aaa-III),
Ridge’s claim for a payment of a termination fee under this Agreement shall be
subordinate to claims of Correspondent’s customers that have been approved by
the trustee appointed by the Securities Investor Protection Corporation pursuant
to the issuance of such protective decree.

      

      
        	
                 

              	
                F.

              	
                Conversion of
      Accounts

              

      

      

      
        	
                 

              	
                Upon
      termination of this Agreement for any reason, it shall be Correspondent’s
      respon­si­bility to arrange for the conversion of the Accounts to
      another broker for clearing and/or execution
      services.  Correspondent shall promptly upon termination give
      Ridge written notice of the name of such other broker, the anticipated
      date on which it shall commence acting as clearing broker with respect to
      the Accounts, and the name of the individual(s) within that organization
      whom Ridge can contact to coordinate the
      conversion.  Correspondent shall also provide Ridge with
      Correspondent’s written undertaking, in a form acceptable to Ridge, that
      such other broker shall accept on conversion all Accounts then maintained
      by Ridge for such Correspondent.  If Correspondent fails to
      provide Ridge with the notice and undertaking referred to above, Ridge
      may, at the sole expense of Correspondent, give Customers such notice of
      termination of this Agreement as Ridge deems appropriate and make such
      other arrangements as Ridge deems appropriate for transfer or delivery of
      the Accounts.  Ridge will provide reasonable assistance to
      Correspondent in de-converting Accounts from the systems of Ridge. Except
      as otherwise provided in this Agreement, Correspondent shall promptly pay
      to Ridge reasonable expenses incurred by Ridge in processing the
      de-conversion.

              

      

      

      
        	
                 

              	
                G.

              	
                Survival

              

      

      

      
        	
                 

              	
                Termination
      of this Agreement shall not affect any of the rights or liabilities of the
      parties relating to business transacted prior to the effective date of
      such termination.  From the date of termination until transfer
      or delivery of all Accounts, the rights and liabilities of the parties
      relating to any business transacted after such termination shall be
      governed by the same terms as those set forth in this
      Agreement.

              

      

      

      
        	
                 

              	
                H.

              	
                No Obligation to Release
      Correspondent Accounts

              

      

      

      
        	
                 

              	
                Subject
      to Ridge’s obligation to refund cash or securities in the Settlement
      Account within 30 days after termination of this Agreement in accordance
      with Section X.B. above, Ridge shall not be required to release to
      Correspondent any securities or cash held by Ridge for Correspondent in
      one or more Accounts of Correspondent until all amounts owing to Ridge
      pursuant to the provisions of this Agreement are paid in full and
      Correspondent’s outstanding obligations (including any disputed
      obligations) to Ridge are determined and satisfied and any property of
      Ridge in the

              
	
                 

              	
                possession
      of Correspondent is returned to
Ridge.

              

      

      

      

      
        	
                XIX.

              	
                ACTIONS AGAINST
      CUSTOMERS

              

      

      

      
        	
                 

              	
                If
      Correspondent is unable or unwilling to pursue a claim against any
      Customer, Ridge shall have the right, but not the obligation, in its sole
      and exclusive discretion and at Correspondent’s expense, to institute and
      prosecute in either its own name or, at Ridge’s option, in the name of
      Correspondent, any action or proceeding against any Customer as to any
      controversy or claim arising (directly or indirectly) out of any
      transaction with Ridge, Correspondent or any Customer, and nothing
      contained in this Agreement shall be deemed or construed to impair or
      prejudice such right in any way whatsoever, nor shall the institution or
      prosecution of any such action or proceeding relieve Correspondent of any
      liability or responsibility which Correspondent would otherwise have under
      this Agreement.  Correspondent hereby assigns to Ridge such
      rights against Customers, and, upon the request of Ridge, agrees to
      execute such other and further instruments or documents, as are reasonably
      necessary or appropriate to carry out the intent of this
      Section.

              

      

      

      

      
        	
                XX.

              	
                NOTICES

              

      

      

      
        	
                 

              	
                Except
      as otherwise expressly provided herein, any notice or instruction required
      or permitted to be given under this Agreement shall be in writing, shall
      be effective upon receipt, and shall be sent by hand or by certified mail,
      in either case, return receipt requested, to the parties at the following
      addresses, or at such other address as to which notice in writing shall
      have been given:

              

      

      

      If to
Ridge:

      

      Ridge
Clearing & Outsourcing Solutions, Inc.

           
55 Water Street

      New York,
New York  10041

      Fax
No:  (212) 747-2079

      Attn:  General
Counsel

      

      If to
Correspondent:

      

      Broadpoint
Capital, Inc.

      One Penn
Plaza

                                             
42ND Floor

                                                     
New York, NY  10119

      Fax
No.:   (212) 273-7191

      Attn:   General
Counsel

      

      

      

      
        	
                XXI.

              	
                MISCELLANEOUS

              

      

      

      
        	
                 

              	
                A.

              	
                Exchange of
      Information

              

      

      

      
        	
                 

              	
                Each
      party shall promptly supply the other with all appropriate information in
      its possession necessary or appropriate to enable the other party properly
      to perform its obligations under this
Agreement.

              

      

      

      B.            Exception and Other
Reports

      

      At the
time of execution of this Agreement, and annually thereafter, Ridge will provide
to Correspondent a list of exception and other reports it can make available to
Correspondent, and the cost therefore, which may assist Correspondent in
complying with regulatory requirements, supervising and monitoring the Accounts,
and meeting its obligations under this Agreement.  Correspondent
specifically acknowledges that such reports may not be inclusive of all of the
exception and other reports necessary for Correspondent to comply with its
regulatory obligations.

      

      
        	
                 

              	
                At
      each time specified in the paragraph above, Correspondent shall promptly
      designate in writing to Ridge which, if any, of such reports Correspondent
      requires during the succeeding twelve months, and Ridge will thereafter
      provide such designated reports to Correspondent.  Within thirty
      (30) days of July 1 of each year, Ridge will give written notice to
      Correspondent’s chief executive and compliance officer identifying the
      list of reports offered to Correspondent and those reports that were
      actually requested by Correspondent.  A copy of the written
      notice will also be provided to Correspondent’s designated examining
      authority (or, if none, to its appropriate regulatory agency or
      authority).  It shall be the sole responsibility of
      Correspondent to determine whether additional reports are necessary for
      Correspondent to meet its regulatory obligations, and to obtain and use
      such reports.  Ridge will retain the data from which each of
      such reports was produced for at least six (6) years in a manner
      sufficient for Ridge to reproduce the
report.

              

      

      

      Notwithstanding
the foregoing, Correspondent shall itself maintain reports, records and
regulatory filings required to be kept by Correspondent by this
Agreement.

      

      
        	
                 

              	
                C.

              	
                [Intentionally
      Omitted]

              

      

      

      D.            Credit
Investigations

      

      Both
Ridge and Correspondent shall have the right to investigate, or to cause a third
party to investigate, the other party’s credit.

      

      E.            Tape
Recording

      

      Both
Ridge and Correspondent shall have the right to record telephone conversations
between themselves, and both Ridge and Correspondent waive any right to further
notice of any such recording.

      

      
        	
                 

              	
                F.

              	
                No Third-Party
      Beneficiaries

              

      

      

      
        	
                 

              	
                Except
      as otherwise provided in Section XXI.K of this Agreement, this Agreement
      is between Ridge and Correspondent only, and is not intended to confer any
      benefits or rights upon any Customers or other persons not expressly made
      parties hereto (other than Ridge
Parties).

              

      

      

      
        	
                 

              	
                G.

              	
                Customer
      Agreements

              

      

      

      
        	
                 

              	
                All
      customer agreements used by Correspondent shall be provided by Ridge or,
      alternatively, by Correspondent at its expense and pre-approved in writing
      by Ridge.  In the event that any customer agreement is prepared
      by Correspondent, Correspondent agrees to designate Ridge as a beneficiary
      of each of Customer’s representations, warranties, acknowledgments and
      covenants in the customer agreement to the same extent as if such
      representations, warranties, acknowledgments and covenants were made
      directly by Customer to Ridge, and that Ridge, in its own name and for its
      own benefit, shall be entitled to enforce such provisions and all other
      rights granted to Correspondent directly against
  Customer.

              

      

      

      H.            Competition

      

      
        	
                 

              	
                Nothing
      herein shall restrict or be deemed to restrict the right of Ridge or any
      affiliate of Ridge to compete with Correspondent in any or all aspects of
      Correspondent’s business.

              

      

      

      
        	
                 

              	
                I.

              	
                Remedies
      Cumulative

              

      

      

      
        	
                 

              	
                The
      enumeration herein of specific remedies shall not be exclusive of any
      other remedies.  Any delay or failure by any party to this
      Agreement to exercise any right or remedy under this Agreement or under
      the Applicable Laws and Rules, or the single or partial exercise of any
      such right or remedy, shall not be construed to be a waiver of any such
      rights or remedies, or to limit the exercise of such rights or
      remedies.

              

      

      

      

      J.            
Merger;
Amendment

      

      
        	
                 

              	
                This
      Agreement represents the entire agreement between the parties and
      supersedes all other understandings and agreements between the parties
      with respect to the subject matter hereof.  This Agreement may
      not be amended except by a writing signed by the parties
      hereto.

              

      

      

      K.            Assignment

      

      
        	
                 

              	
                This
      Agreement shall be binding upon and inure to the benefit of the respective
      successors and authorized assigns of the parties.  Except as
      prohibited by law or a confidentiality agreement, each party shall provide
      the other party with thirty (30) business days’ prior written notice of
      any proposed change in control. Neither party may assign this Agreement,
      or assign or delegate any of its rights or obliga­tions hereunder,
      without the prior written consent of the other party.  Each
      party may assign this Agreement or assign or delegate any of its rights or
      obligations hereunder to any affiliate of such party that succeeds to such
      party’s business without the other party’s consent if such affiliate
      executes and delivers to the other party an assumption agreement pursuant
      to which such affiliate assumes all such obligations of such party under
      this Agreement as have been delegated to it.  Each party
      consents and agrees to the assignment and transfer of the other party’s
      rights and obligations hereunder at any future time resulting from a
      merger, sale of all or a substantial portion of such party’s assets to any
      successor organization or assignee, including any registered broker and/or
      dealer that owns any of the assigning party’s capital stock, and such
      assignment shall be binding upon the undersigned, its successors, and
      assigns.

              

      

      

      
        	
                 

              	
                L.

              	
                Governing
      Law

              

      

      

      
        	
                 

              	
                This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York, without regard to its conflict of laws
      principles.

              

      

      

      
        	
                 

              	
                M.

              	
                Arbitration

              

      

      

      
        	
                 

              	
                Any
      dispute or controversy arising out of or relating in any way to this
      Agreement, including, without limitation, any dispute or controversy that
      might give rise directly or indirectly to a class action or putative class
      action, shall be submitted to arbitration before the NYSE (conducted
      pursuant to NYSE Rules), or, if Correspondent is not a
      NYSE  member, any other self-regulatory organization or exchange
      chosen by Ridge that has jurisdiction over the dispute or
      controversy.  Arbitration must be initiated by service upon the
      other party of a written demand for arbitration or notice of intention to
      arbitrate.  Judgment upon any award rendered by the
      arbitrator(s) shall be final, and may be entered in any court, state or
      federal, having jurisdiction.

              

      

      

      N.            Customer
Actions

      

      
        	
                 

              	
                In
      the event of an arbitration or court action in which a Customer has
      asserted a claim against Ridge or an affiliate thereof, Correspondent
      agrees that (1) it shall submit to the juris­diction of any such forum
      in which such claim is brought, and (2) it shall accept service of process
      for any such claim.  Service of process in any such action or
      arbitration shall be sufficient if served on Correspondent by certified
      mail, return receipt requested, at the address provided for the delivery
      of notices under this Agreement.

              

      

      

      
        	
                 

              	
                O.

              	
                Temporary or Provisional
      Relief

              

      

      

      
        	
                 

              	
                Notwithstanding
      Section XXI.M. of this Agreement, either party may, at any time prior to
      an initial arbitration hearing with respect to any dispute or
      controversy relating to or arising out of this Agreement, obtain upon
      application to the United States District Court for the Southern District
      of New York or the Supreme Court of the State of New York for the County
      of New York any temporary or provisional relief or remedy that would be
      available in an action based upon such dispute or controversy in the
      absence of an agreement to arbitrate.  The parties acknowledge
      and agree that it is their intention to have any such application
      for  provisional or temporary relief decided by the court to
      which it is made and that such application shall not be referred to or
      settled by arbitration.  Process in any such proceeding shall be
      sufficient if served by certified mail, return receipt requested, at the
      address provided above for the delivery of notices under this
      Agreement.  In this connection, each party expressly waives any
      defense (1) to personal jurisdiction, (2) to service of process in the
      manner set forth above, and (3) to venue.  No such application
      to a court for provisional or temporary relief, nor any act or conduct by
      either party in further­ance of or in opposition to such application,
      shall constitute a relinquishment or waiver of any right to have the
      underlying dispute or controversy settled by arbitration in accordance
      with Section XXI.M. of this
Agreement.

              

      

      

      
        	
                 

              	
                P.

              	
                Force
      Majeure

              

      

      

      
        	
                 

              	
                Neither
      party shall be liable for losses caused directly or indirectly by
      government restrictions, exchange or market rulings, suspension of
      trading, labor strike, war, act of civil or military authority, sabotage,
      terrorism, epidemic, flood, earthquake, fire, or other natural
      disaster,  or any other conditions or occurrences beyond Ridge’s
      reasonable control.

              

      

       

             
Q.            Headings

      

      
        	
                 

              	
                The
      headings contained herein have been inserted for convenience and ease of
      reference only and shall not be construed to affect the meaning,
      construction or effect of this
Agreement.

              

      

      

      
        	
                 

              	
                R.

              	
                Enforceability

              

      

      

      
        	
                 

              	
                If
      any provision or condition of this Agree­ment is held to be invalid or
      unenforceable by any court, arbitration tribunal or regulatory or
      self-regulatory agency or body, the validity of the remaining
      provi­sions and conditions shall not be affected thereby and this
      Agreement shall be carried out as if any such invalid or unenforceable
      provision or condition were not contained
  herein.

              

      

      

      
        	
                 

              	
                S.

              	
                Counterparts

              

      

      

      
        	
                 

              	
                This
      Agreement may be executed in counter­parts, each of which shall
      constitute an original, and all of which together shall constitute one and
      the same agree­ment.

              

      

      

      

      IN
WITNESS WHEREOF the parties have executed this Agreement as of the date first
written above.

      

      

      RIDGE
CLEARING & OUTSOURCING SOLUTIONS, INC.

       

       

      
        
          	 By:	  /s/
      Joseph Barra	 	 
	 Name	 Joseph
      Barra	 	 
	 Title:	 President	 	 

        

      

      

      

      

      BROADPOINT
CAPITAL, INC.

      

      

      
         

        
          
            	 By:	  /s/ Lee
      Fensterstock	 	 
	 Name	 Lee
      Fensterstock	 	 
	 Title:	Chairman and Chief
      Executive Officerexhibit10-58.htm

    
      
        
          

          

        
EXHIBIT 10.58

        

        

        

        

        

        FULLY
DISCLOSED CLEARING AGREEMENT

        

        BETWEEN

        

                                                                                              
RIDGE CLEARING & OUTSOURCING SOLUTIONS, INC.

        

                                                                     
-and-

        

        BROADPOINT
SECURITIES, INC.

        

        

        This
agreement (the “Agreement”), dated as of January 11, 2008, between Ridge
Clearing & Outsourcing Solutions, Inc. (“Ridge”) and Broadpoint Securities,
Inc. (“Correspondent”), sets forth the terms and conditions under which
Ridge will
provide execution and clearing services, on a fully disclosed basis, to
Correspondent and its customers.  Ridge will provide such services
only to the extent required by this Agreement, and shall not be responsible for
any duties or obligations not specifically allocated to Ridge by this
Agreement.  Nothing in this Agreement shall be deemed to delegate to
Ridge any regulatory obligation of Correspondent.

        

        I.           APPLICABLE LAWS AND RULES
AND APPROVAL BY NYSE

        

        
          	
                   
      

                	
                  Throughout
      the term of this Agreement, each of the parties hereunder shall be subject
      to the provisions of federal, state and local laws, rules and regulations
      and the constitution, by-laws, rules, regulations and stated policies of
      the New York Stock Exchange, Inc. (“NYSE”), and any other securities
      exchange or association or regulatory or self-regulatory organization
      (“SRO”) vested with authority over the parties and/or the transactions
      contemplated hereby, applicable to the parties, as currently in effect or
      as they may be hereinafter amended, revised or supplemented (collectively,
      the “Applicable Laws and Rules”).  To the extent that specific
      Applicable Laws and Rules are cited in this Agreement, such individual
      Applicable Laws and Rules shall also apply as currently in effect or as
      they may be hereinafter amended, revised or
      supplemented.  Correspondent agrees to comply with the NYSE
      rules cited herein, as well as comparable SRO provisions (including,
      without limitation, comparable NASD rules).  In the event that
      Correspondent is not an NYSE member firm, Correspondent agrees to comply
      with the NYSE rules specifically cited herein as if it were an NYSE member
      firm.

                

        

        

        II.           SERVICES

        

        
          	
                   
      

                	
                  A.

                	
                  Services
      to be Performed by Ridge

                

        

        

        
          	
                   
      

                	
                  Subject
      to compliance by Correspondent with its obligations under this Agreement,
      Ridge will perform the following
services:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  Ridge
      will execute orders for the proprietary account(s) of Correspondent (the
      “Proprietary Accounts”), and the customer accounts of Correspondent (the
      “Customer Accounts”), provided such accounts have been accepted by Ridge
      (collectively, the “Accounts”), but only insofar as such orders are
      transmitted by Correspondent to Ridge or are transmitted by a customer of
      Correspondent (“Customer”) to Ridge in accordance with Section V.A.
      of this Agreement.

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  Ridge
      will prepare and distribute confirmations respecting transactions in each
      of the Customer Accounts in accordance with Section VII.A. of this
      Agreement, and Ridge will provide duplicates of such confirmations to
      Correspondent.

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  Ridge
      will prepare and distribute summary monthly statements to Customer
      Accounts (or quar­terly statements to Customer Accounts if no activity
      in the Customer Account occurs during any quarter covered by such
      statement) in accordance with Section VII.A. of this Agreement, and Ridge
      will provide duplicates of such statements to
    Correspondent.

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  Ridge
      will settle contracts and transactions in securities (including options to
      buy or sell securities) (a) between Correspondent and other brokers
      and dealers, (b) between Correspondent and the Accounts, and (c)
      between Correspondent and persons other than the Accounts or other brokers
      and dealers.

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  Ridge
      will engage in cashiering functions for the Accounts, including the
      receipt, delivery and transfer of securities purchased, sold, borrowed and
      loaned; receiving and distributing payment therefore; holding in custody
      and safekeeping all securities and payments so received; the handling of
      margin accounts, including paying and charg­ing of interest; the
      receipt and distribution of dividends and other distribu­tions; and,
      at the instruction of the Account, the processing of exchange offers,
      rights offerings, warrants, tender offers and redemptions.  To
      the extent that any cashiering functions with respect to the receipt of
      securities and the making and receiving of payments therefor may be
      relinquished to Correspondent, Correspondent shall have full
      responsibility for such functions.

                

        

        

        
          	
                   
      

                	
                  6.

                	
                  Ridge
      will construct and maintain books and records of all transactions executed
      or cleared through it and not specifically assigned to Correspondent
      pursuant to the terms of this Agreement (e.g., account opening
      documentation), including a daily record of required margin and other
      information required by the Applicable Laws and
  Rules.

                

        

        

        
          	
                   
      

                	
                  Any
      additional services to be performed shall be subject to the mutual
      agreement of the parties.  Such additional services, if
      applicable, shall be set forth with related fees on Schedule A
      hereto.  Schedule A is hereby incorporated in and made an
      integral part of this Agreement.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Services
      That Shall Not be Performed by
Ridge

                

        

        

        
          	
                   
      

                	
                  Unless
      otherwise agreed to in a writing executed by the parties hereto, Ridge
      shall not engage in any of the following services on behalf of
      Correspondent, the responsibility for which shall be solely and
      exclusively that of Correspondent:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  Accounting,
      bookkeeping or recordkeeping, cashiering, or any other services with
      respect to commodity transactions, and/or any transaction other than
      securities transactions.

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  Preparation
      of Correspondent’s payroll records, financial statements or any analysis
      or review thereof or any recommendations relating
  thereto.

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  Preparation
      or issuance of checks in payment of Correspondent’s expenses, other than
      expenses incurred by Ridge on behalf of Correspondent pursuant to this
      Agreement.

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  Payment
      of commissions, salaries or other remuneration, or reimbursement of
      expenses, to Correspondent’s salespersons or any other employees of
      Correspondent.

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  Preparation
      and filing of reports with the Securities and Exchange Commission
      (the ”SEC”), any state securities commission, any national securities
      exchange registered under the Securities Exchange Act of 1934 (the “1934
      Act”), or other securities exchange or securities association or any other
      regulatory or self-regulatory body or agency with which Correspondent is
      associated and/or by which it is regulated. Ridge will, at the request of
      Correspondent, furnish Correspondent with any necessary information and
      data contained in books and records kept by Ridge and not otherwise
      reasonably available to Correspondent if such information is required in
      connection with the preparation and filing of such reports by
      Correspondent.

                

        

        

        
          	
                   
      

                	
                  6.

                	
                  Making,
      maintaining and filing reports and records required to be kept by
      Correspondent by the Currency and Foreign Transactions Reporting Act of
      1970 (the “Currency Act”), and the regulations promulgated thereunder
      (provided, however, that
      the foregoing shall not affect Ridge’s obligations to make, maintain and
      file reports and records required to be kept by Ridge by the Currency
      Act).

                

        

        

        
          	
                   
      

                	
                  7.

                	
                  Making,
      maintaining and filing reports and records required of Correspondent by
      the Bank Secrecy Act (the “Bank Secrecy Act”), the U.S.A. Patriot Act (the
      “Patriot Act”), and the regulations promulgated thereunder, and other
      Applicable Laws and Rules relating to anti-money laundering (“AML”)
      activities, including, without limitation, (i) currency transaction
      reports (“CTRs”), (ii) currency or monetary instrument reports
      (“CMIRs”),  (iii) suspicious activity reports (“SARs”), and (iv)
      foreign bank and financial account reports (“FBFARs”) (provided, however, that
      the foregoing shall not affect Ridge’s obligations to make, maintain and
      file reports and records required of Ridge by the Applicable Laws and
      Rules).  Notwithstanding the foregoing, Ridge reserves the
      right, exercisable in its sole and exclusive discretion, to prepare and
      file such reports on behalf of Correspondent.  In the event that
      Ridge undertakes to prepare or file such reports, Correspondent
      acknowledges that Ridge does not assume any reporting responsibilities of
      Correspondent nor is Correspondent relieved of any of its reporting
      obligations.

                

        

        

        
          	
                   
      

                	
                  8.

                	
                  Verification
      of the name or address of any
Account.

                

        

        

        
          	
                   
      

                	
                  9.

                	
                  Verification
      of the authority of, or changes in the identity or address, of any person
      holding any power of attorney over any
Account.

                

        

        

        
          	
                   
      

                	
                  10.

                	
                  Verification
      of the validity of, or proper authorization for, any orders or
      instructions received by Ridge from Correspondent or from any Customer in
      connection with an Account.

                

        

        

        
          	
                   
      

                	
                  11.

                	
                  Obtaining
      and verifying new account information, and ensuring that such
      infor­ma­tion meets the requirements of the Applicable Laws and
      Rules, including, without limitation, any requirements of the Bank Secrecy
      Act, the Patriot Act, and the regulations promulgated
      thereunder.

                

        

        

        
          	
                   
      

                	
                  12.

                	
                  Maintaining
      a record of all personal and financial information concerning any Account
      and all orders received by Correspondent therefrom, and maintaining all
      documents and agreements executed by any
  Account.

                

        

        

        

        
          	
                   
      

                	
                  13.

                	
                  Compliance
      with the reporting, disclosure and record keeping requirements of the
      Employee Retirement Income Security Act of 1974 (“ERISA”), and the
      regulations promulgated thereunder.

                

        

        

        
          	
                   
      

                	
                  14.

                	
                  Compliance
      by Correspondent with the  statutes,  rules and
      regulations administered by the Office of Foreign Assets Control (“OFAC”),
      which prohibit, among other things, engaging in financial transactions
      with certain sanctioned or embargoed countries and foreign nationals
      (provided, however, that
      the foregoing shall not affect Ridge’s obligations to comply with the
      statutes, rules and regulations administered by
  OFAC).

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Exclusive
      Clearing Arrangement

                

        

        

        
          	
                   
      

                	
                  Except
      as otherwise provided in this Section II.C, Correspondent agrees that, for
      the term of this Agreement, Broadpoint Capital , Inc. shall introduce its
      equity securities business and Broadpoint Securities, Inc. shall introduce
      its mortgage securities-related business, as those businesses generally
      exist as of the date of this Agreement, to Ridge and all transactions in
      securities within such businesses shall be cleared exclusively through
      Ridge, unless and except to the extent that: (1) Ridge agrees in
      writing otherwise; or (2) Ridge has rejected a pro­posed Account
      or has declined to execute or clear a particular transaction in an
      Account.  The exclusive clearing arrangement described in this
      paragraph shall not extend or apply to new business to the extent
      resulting from a material merger, acquisition or business combination
      involving Correspondent. Ridge acknowledges and agrees to Broadpoint
      Capital , Inc.’s existing clearing relationship with First Clearing
      Corporation with respect to a limited number of retail
      accounts.  Ridge acknowledges and agrees
      to  Broadpoint Securities, Inc.’s existing clearing relationship
      with Bear Stearns with respect to a limited number of accounts of
      employees (or relatives and friends of employees) of
      Correspondent.  In the event that any transaction is cleared
      through any other firm, nothing herein shall be construed as a waiver by
      Ridge of the foregoing requirement nor an agreement by Ridge to assume any
      obligations or liabilities arising from any such
    transaction.

                

        

        

        

        III.           OPENING AND SUPERVISION OF
ACCOUNTS

        

        
          	
                   
      

                	
                  A.

                	
                  Account
      Documentation

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for obtaining, verifying and
      maintaining all required information and the identity and address of each
      potential Customer, including, without limitation, any customer
      identification information required by the Applicable Laws and Rules,
      including, without limitation, the Bank Secrecy Act or the Patriot Act,
      and any regulation(s) promulgated thereunder.  Correspondent
      shall be responsible for the main­tenance and retention of all account
      applications, and Correspondent hereby acknowledges its obligation to
      retain account applications in an easily-accessible place in accordance
      with the Applicable Laws and Rules and agrees to provide the original
      application to Ridge by overnight delivery within 24 hours of a request
      from Ridge.  All account documentation shall be on the forms
      provided by Ridge for that purpose, or, alternatively, prepared by
      Correspondent at its expense and pre-approved in writing by Ridge
      (which approval will not be unreasonably
      withheld), in either case in a format compatible with Ridge’s
      computerized accounting and records maintenance systems.  In
      accordance with Ridge’s procedures, Correspondent shall notify Ridge
      promptly of any changes or corrections in any information, instructions or
      doc­uments previously forwarded to Ridge.  Correspondent
      shall be solely and exclusively responsible for obtaining, updating, and
      maintaining current and correct customer addresses and other customer
      information, and Ridge may for all purposes rely, without verification, on
      the accuracy of such addresses and all other information and
      docu­ments furnished by Correspondent to Ridge regarding any Customer
      Account.  Correspondent shall be solely and exclusively
      responsible for complying with the requirements of Rule 15g-9 under the
      1934 Act, if applicable.  Correspondent shall also promptly
      furnish Ridge with such addi­tional information or documentation as
      Ridge may request from time to
time.

                

        

        

        B.            
Knowledge of Customer
and

        
          	
                   
      

                	
                  Customer’s Investment
      Objectives

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible through a general partner, a
      prin­cipal executive officer or a person designated for supervisory
      responsibilities to use due diligence to learn the essen­tial facts
      relative to every Customer and Account, every order for any Account, and
      every person holding power of attorney over any Account, and to
      super­vise diligently all Accounts and their handling by
      Correspondent’s registered representatives so as to be in compliance in
      all material respects with all Applicable Laws and Rules.  The
      preparation or possession by Ridge for Correspondent of surveillance
      records, exception reports or other similar data shall not obligate Ridge
      to establish policies, practices or procedures relating to such
      materials.  Correspondent shall be solely and exclusively
      responsible for ensuring that the Customers are not minors and do not
      otherwise lack the capacity to enter into a contract and are not
      prohibited from opening a securities account under the Applicable Laws and
      Rules.  Correspondent shall implement and enforce policies and
      procedures reasonably designed to ensure that (i) the Customer is the
      individual or entity it represents itself to be, (ii) the funds and
      securities in any Account do not come from a prohibited source under the
      Applicable Laws and Rules, and (iii) the Customer or its Customer
      Account(s) are not established or maintained for a prohibited purpose
      under the Applicable Laws and
Rules.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Acceptance
      of Accounts

                

        

        

        
          	
                   
      

                	
                  Each
      Customer Account and Proprietary Account accepted and approved by
      Correspondent shall be subject to acceptance by Ridge (which shall not be
      construed to require any due diligence on the part of
      Ridge).  Correspondent shall not approve any Customer Account
      unless all information required in Section III.A. of this Agreement has
      been received and due diligence as set forth in Section III.B. of this
      Agreement has been performed by Correspondent.  Ridge reser­ves the
      absolute right, exer­cisable in its sole and exclusive discretion
      acting in good faith, without prior notice to Correspondent or to the
      Customer, to reject any account that Correspondent may offer as an
      Account, or to terminate any account previously accepted by it as an
      Account.  Without limiting the generality of any of the
      foregoing, Ridge will be under no obligation to accept any Customer
      Account as to which any documentation or information required to be
      submitted to Ridge or maintained by Correspondent pursuant to Sections
      III.A. and III.B. of this Agreement is incomplete.  No action
      taken by Ridge or any of its employees, including, without limitation,
      clearing a trade in any Account, shall be deemed to be or shall constitute
      acceptance of such Customer Account.  Without limiting the
      generality of any of the foregoing, in the event that any information or
      documentation requested by Ridge regarding a Customer Account is not
      promptly provided to Ridge, Ridge may, without prior notice to
      Correspondent or to the Customer, reject or terminate such account as a
      Customer Account or refuse to execute or clear any further transactions
      therein.  If Ridge nevertheless accepts or continues to execute
      or clear transactions in such Customer Account, it shall not be deemed a
      waiver of Ridge’s right to receive such information or documentation or to
      later terminate or refuse to execute or clear transactions in such
      Customer Account.

                

        

        

        
          	
                   
      

                	
                  D.

                	
                  Supervision
      of Orders and Accounts

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for the conduct and
      supervision of the Accounts and all transactions therein and their
      compliance with the Applicable Laws and Rules.  Correspondent’s
      responsibilities shall include, without limitation, the
      following:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  selecting,
      training, and supervising all personnel of Correspondent who open,
      approve, authorize or accept orders or transactions in the
      Accounts;

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  establishing
      written procedures for the conduct of the Accounts and ongoing review of
      all transactions in Accounts, and maintaining qualified compliance and
      supervisory personnel to implement such
  procedures;

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  knowing
      the investment objectives of each Customer and determining the suitability
      of all transactions in the
Accounts;

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  ensuring
      that there is a reasonable basis for any recommendations made by
      Correspondent to Customers;

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  determining
      the appropriateness of the frequency of trading in an
    Account;

                

        

        

        
          	
                   
      

                	
                  6.

                	
                  determining
      that each transaction in an Account has been duly
    authorized;

                

        

        

        
          	
                   
      

                	
                  7.

                	
                  timely
      forwarding instructions from the Customer to Ridge, and authenticating any
      such instructions;

                

        

        

        
          	
                   
      

                	
                  8.

                	
                  obtaining
      and maintaining all documents necessary for the performance of
      Correspondent’s responsibilities under this Agreement and retaining such
      documents in accordance with the Applicable Laws and
      Rules;

                

        

        

        
          	
                   
      

                	
                  9.

                	
                  complying,
      to the extent applicable, with the “three quote rule” as set forth by the
      NASD when functioning as an executing
broker;

                

        

        

        
          	
                   
      

                	
                  10.

                	
                  complying
      with all “Blue Sky” requirements applicable to Correspondent with respect
      to any order or transaction in an Account;
and

                

        

        

        
          	
                   
      

                	
                  11.

                	
                  informing
      Ridge of the location of the securities which are the subject of any order
      transmitted to Ridge for execution so that Ridge may comply with the
      Applicable Laws and Rules.

                

        

        

        
          	
                   
      

                	
                  E.

                	
                  The
      AML Program

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  Correspondent
      shall develop, implement and enforce written AML policies and procedures
      (the “AML Program”), reasonably designed to ensure compliance with the
      requirements of the Applicable Laws and Rules relating to AML, including,
      without limitation, the Bank Secrecy Act, the Patriot Act,
      the  regulations promulgated thereunder, and the statutes, rules
      and regulations administered by OFAC.  The AML Program shall
      cover, among other things, (i) the identification and verification of
      prospective Accounts (Patriot Act, § 326), (ii) the identification of the
      source(s) of funds and securities in prospective Accounts, (iii) the
      identification,  monitoring and reporting of suspicious
      activities, (iv) responses to requests for documents and information from
      law enforcement authorities, (v) prohibitions on the opening, maintaining,
      administering or managing of accounts on behalf of prohibited entities
      (such as, for example, foreign “shell banks”), and (vi) special due
      diligence procedures for Accounts involving non-U.S. persons (such as, for
      example, Accounts held directly or indirectly by foreign
      banks).  The AML Program shall be developed, implemented and
      enforced by a qualified compliance officer designated by Correspondent for
      such purposes.  The AML Program shall be reviewed and approved
      in writing by a member of senior management of
      Correspondent.  Notwithstanding the foregoing,
      Ridge reserves the absolute right, without prior notice to Correspondent
      or to the Customer, to freeze or block assets in any Account, or terminate
      any Account which, in the sole discretion of Ridge acting in good faith,
      may violate or may cause a violation of the Bank Secrecy Act, the Patriot
      Act, or any other AML provision, or statute, rule or regulation
      administered by OFAC.

                

        

        

        Correspondent
shall certify annually to Ridge that it is in compliance with this Section
III.E. and that has implemented and enforced the AML Program.

        

        

        
          	
                   
      

                	
                  2.

                	
                  Ridge
      acknowledges the following AML obligations under Applicable Laws and
      Rules:

                

        

        

        a.               Anti-Money Laundering
Programs

        Ridge
acknowledges its obligation, to the extent applicable, to establish an AML
program that includes, among other things: (i) the development of internal AML
policies; procedures and controls; (ii) the designation of an AML compliance
officer; (iii) an ongoing AML employee training program; and (iv) an independent
audit function to test the AML program.  (Patriot Act, § 352 and SRO
rules).

        

        b.               Reporting of Suspicious
Activities By Securities Brokers and Dealers;  Investment Company
Study

        Ridge
acknowledges its obligation, to the extent applicable, to monitor and report
suspicious activities, and to prepare and submit SARs in accordance with 31
U.S.C. 5318(g).  (Patriot Act, § 356).

        

        c.               Special Due Diligence for
Correspondent Accounts and Private Banking Accounts

        

        i.         Ridge
acknowledges its obligation, to the extent applicable, to conduct enhanced due
diligence in connection with “correspondent accounts” held by foreign banks
operating under: (i) an offshore banking license; or (ii) a banking license
issued by a foreign country that has been designated as non-cooperative with
international AML principles or procedures by an intergovernmental group or
organization of which the United States is a member, with which designation the
United States representative to the group or organization concurs, or by the
Secretary of the Treasury as warranting special measures due to AML
concerns.  This “enhanced due diligence” includes, among other things,
reasonable steps: (i) to ascertain the identity of each of the owners of the
foreign bank, and the nature and extent of the ownership interest of each such
owner; (ii) to conduct enhanced scrutiny of such accounts to guard against money
laundering and report suspicious transactions; and (iii) to ascertain whether
such foreign bank provides correspondent accounts to other foreign banks and, if
so, the identity of those foreign banks and related due diligence information.
(Patriot Act, § 312(a)(2)(A) and (B)).

        

        ii.         Ridge
acknowledges its obligation, to the extent applicable, to conduct enhanced due
diligence in connection with “private banking accounts” held by non-United
States persons.  This “enhanced due diligence” includes, among other
things, reasonable steps: (i) to ascertain the identity of the nominal and
beneficial owner(s) of, and the source of funds deposited into, any “private
banking account” as needed to guard against money laundering and report
suspicious transactions; and (ii) to conduct enhanced scrutiny of any “private
banking account” that is requested or maintained by or on behalf of a senior
political figure, or any immediate family member or close associate of a senior
political figure, that is reasonably designed to detect and report transactions
that may involve the proceeds of foreign corruption. (Patriot Act,

        §
312(a)(3)(A) and (B)).

        

        d.               Forfeiture of Funds in
United States Interbank Accounts

        Ridge
acknowledges its obligation, to the extent applicable, to obtain and review
certifications and re-certifications from each Account held by a foreign bank
that identify:  (i) the owner(s) of such foreign bank; and (ii) the
name and address of a person who resides in the United States and is authorized
to accept service of legal process for records regarding the
Account.  (Patriot Act,

        § 319
(k)(3)(B)(i)).

        

        e.               Prohibition on United States
Correspondent Accounts With Foreign Shell Banks

        

        i.         Ridge
acknowledges its obligation, to the extent applicable, not to establish,
maintain, administer, or manage any “correspondent account” in the United States
for or on behalf of a foreign bank that does not have a physical presence in any
country (“foreign shell bank”).  (Patriot Act, §
313(j)(1)).

        

        ii.         Ridge
acknowledges its obligation, to the extent applicable, to take reasonable steps
to ensure that any “correspondent account” established, maintained, administered
or managed by Ridge in the United States for or on behalf of a foreign bank is
not being used by that foreign bank to provide banking services indirectly to a
“foreign shell bank”.  (Patriot Act, § 313(j)(2)).

        

        f.     Special Measures for
Jurisdictions, Financial Institutions, or International Transactions of Primary
Money Laundering Concern

        Ridge
acknowledges its obligation, to the extent applicable, to comply with special
measures imposed by the Secretary of the Treasury for jurisdictions, financial
institutions, and international transactions of primary money laundering
concern.  (Patriot Act, § 311).

        

        g. Cooperative Efforts to Deter
Money Laundering

        

        i.         Ridge
acknowledges its obligation, to the extent applicable, to respond to requests
made by the Financial Crimes Enforcement Network (“FINCEN”) on behalf of a
federal law enforcement agency investigating possible terrorist or money
laundering activities.  (Patriot Act, § 314(a)).

        

        ii. Ridge
acknowledges its obligation, to the extent applicable, to submit notices to
FINCEN concerning the voluntary sharing of information with other financial
institutions relating to individuals, entities, organizations and countries
suspected of possible terrorist or money laundering activities, and to comply
with requirements concerning the confidentiality of such shared
information.  (Patriot Act,  § 314(b)).

        

        h.               Compliance
Obligations

        

        i.         Ridge
acknowledges its obligation, to the extent applicable, to make tools available
to Correspondent (such as, for example, exception reports and automated systems)
to assist Correspondent in complying with its obligation to monitor and detect
possible terrorist, money laundering and related activities.

        

        ii.         Ridge
acknowledges its obligation, to the extent applicable, to comply with
record-keeping requirements in connection with each of the above
obligations.

        

        
          	
                   
      

                	
                  F.

                	
                  Accounts
      of Employees of Member Organizations, Self-Regulatory Organizations and
      Financial Institutions

                

        

        

        
          	 	
                  In
      each case in which a Customer is an employee of a member organization, a
      self-regulatory organization or financial institution, the approval of
      which is necessary to the opening and maintenance of a Customer Account,
      Correspondent shall be solely and exclusively responsible for obtaining
      the approval of such employer, and otherwise complying with NYSE Rule
      407.

                

        

        

        
          	
                   
      

                	
                  G.

                	
                  Soft-Dollar
      Arrangements

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for compliance with the
      Applicable Laws and Rules applicable to each agreement, arrangement or
      understanding, if any, that it may have with any agent exercising any
      authority (including, without limitation, investment discretion) over any
      Account to use commissions to obtain research or other services
      (collectively, a “Soft-Dollar
Arrangement”).

                

        

        

        
          	
                   
      

                	
                  H.

                	
                  Directed-Brokerage
      Arrangements

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for compliance with the
      Applicable Laws and Rules applicable to each agreement, arrangement or
      understanding, if any, that it may have with any Account to rebate any
      funds, including, without limitation, any portion of any commission,
      mark-up, mark-down, fee or other charge, or to pay the cost of any service
      or product for an account, or the expenses of an account (collectively, a
      “Directed Brokerage Arrangement”).  Correspondent shall use its
      best efforts to obtain from the Account an authorization for Ridge to rely
      on the representations and warranties of the Account in any
      Directed-Brokerage Arrangement and to be the direct beneficiary of the
      covenants, including, without limitation, any indemnification provision,
      in each case in a form acceptable to
Ridge.

                

        

        

        
          	
                   
      

                	
                  I.

                	
                  Payment
      for Order Flow Arrangements

                

        

        

        Correspondent
shall be solely and exclusively responsible for compliance with the Applicable
Laws and Rules applicable to each agreement, arrangement or understanding, if
any, that it may have with any other broker-dealer to pay for order flow, or to
receive payment for order flow (collectively, a “Payment for Order Flow
Arrangement”), including, without limitation, any disclosure
requirements.

        

        
          	
                   
      

                	
                  J.

                	
                  Prime
      Brokerage

                

        

        

        
          	
                   
      

                	
                  No
      Account in connection with which Correspondent is to act as an executing
      broker in a prime brokerage arrangement shall be opened without the prior
      written authorization of Ridge and the execution of appropriate
      documentation by the parties to such arrangement, including, without
      limitation, an agreement in substantially the same form as the Addendum
      annexed hereto.

                

        

        

        
          	
                   
      

                	
                  K.

                	
                  Customers

                

        

        

        
          	
                   
      

                	
                  Each
      Customer shall remain the customer of
      Correspondent.  Correspondent acknowledges that Ridge shall not
      act in the capacity of a fiduciary with respect to Correspondent or any of
      its customers.  Nothing herein shall cause any Customer to be
      construed as or deemed to be a customer of Ridge for any purpose
      whatsoever, except that, for the purposes of the Securities Investor
      Protection Act and the “financial responsibility” rules of the SEC,
      Customers shall be deemed to be customers of Ridge as Correspondent’s
      clearing firm, but only to the extent required by the Applicable Laws and
      Rules.

                

        

         

        
          	
                   
      

                	
                  L.

                	
                  Screening
      of Accounts

                

        

        

        
          	
                   
      

                	
                  Ridge
      may, in its sole and exclusive discretion, utilize at Correspondent’s
      expense a third-party service provider to screen Customers and
      transactions in the Accounts, and the use thereof shall not relieve
      Correspondent of any of its obligations under this
      Agreement.  Correspondent acknowledges that such screening or
      the preparation or possession of surveillance records or any other data
      (including, without limitation, exception reports) by Ridge on behalf of
      or for the use of Correspondent shall not obligate Ridge to review such
      material or make Ridge responsible to know their
  contents.

                

        

        

        
          	
                   
      

                	
                  M.

                	
                  Discretionary
      Accounts

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for the handling and
      supervisory review of any Customer Accounts over which Correspondent’s
      partners, officers or employees have discretionary authority, as required
      by NYSE Rule 408, and any other provisions of the Applicable Laws and
      Rules.  Correspondent shall furnish Ridge with such
      documentation with respect thereto as may be requested by
      Ridge.  Correspondent hereby warrants that with regard to any
      orders or instructions given by Correspondent with respect to such
      discretionary Customer Accounts, its partners, officers or employees shall
      have been fully and properly authorized relative thereto and that the
      execution of such orders shall not be in violation of the Applicable Laws
      and Rules.

                

        

        

        
          	
                   
      

                	
                  N.

                	
                  Option
      Accounts

                

        

        

        
          	
                   
      

                	
                  Before
      a Customer Account may engage in option trading, Correspondent shall
      deliver to Customer a current disclosure statement of the Options Clearing
      Corporation, the Special Statement for Uncovered Option Writing, and any
      effective amendments or supplements thereto.  Correspondent
      shall obtain the required signatures on all option agreements, shall
      obtain proper approval for the opening of all option accounts, and shall
      otherwise comply with the Applicable Laws and Rules applicable to options
      accounts and options trading.  Correspondent shall deliver to
      Ridge a copy of a signed option agreement for each Customer approved by
      Correspondent for options trading, such agreement to be in a form
      acceptable to Ridge.

                

        

        

        
          	
                   
      

                	
                  O.

                	
                  Accounts
      for Which Agent Holds Power of
Attorney

                

        

        

        
          	
                   
      

                	
                  Upon
      the opening of any Customer Account for which an agent holds a power of
      attorney on behalf of a principal, Correspondent shall provide Ridge
      with the name of each principal for whom such agent is acting and with
      written evidence of the agent’s authority to act on the principal’s
      behalf.  Correspondent hereby warrants that any orders or
      instructions of such agent which are transmitted to Ridge pursuant to this
      Agreement shall have been fully and properly authorized and that the
      execution of such instructions or orders shall not violate the Applicable
      Laws and Rules.

                

        

        

        
          	
                   
      

                	
                  P.

                	
                  Prospectus
      Delivery

                

        

        

        Correspondent
shall be solely and exclusively responsible for delivering, or causing to be
delivered, prospectuses in connection with public offerings of securities (both
initial public and secondary offerings) and sales of mutual funds; provided, however, that, at the
request of Correspondent, Ridge may, in its sole and exclusive discretion,
assist Correspondent in mailing prospectuses that are delivered to Ridge in a
timely fashion.

        

        Q.            Proprietary
Accounts of Correspondent

        

        In accordance with the SEC Net Capital
Rule (Rule 15c3-1) and for the purposes of the Securities Investor Protection
Act and the SEC’s financial responsibility rules, Correspondent will be treated
as a client of Ridge.

        Account
statements of activity for Correspondent’s Accounts are issued and forwarded to
Correspondent directly by Ridge.

        This
Section of the Agreement is in conformity with the SEC No-Action Letter, dated
November 3, 1998 (“No-Action Letter”) relating to the capital treatment of
assets in the proprietary account of an introducing broker (“PAIB”) and to
permit Correspondent to use PAIB assets in its net capital computations.
Correspondent shall identify to Ridge in writing all accounts that are, or from
time to time may be, proprietary accounts of Correspondent.  Ridge
shall perform a computation for PAIB assets (“PAIB Reserve Computation”) of
Correspondent in accordance with the customer reserve computation set forth in
Rule 15c3-3 (“customer reserve formula”) with the following
modifications:

        (a)           Any
credit (including a credit applied to reduce a debit) that is included in the
customer reserve formula may not be included as a credit in the PAIB reserve
computation;

        (b) Note E(3)
to Rule 15c3-3a which reduces debit balances by 1% under the basic method and
subparagraph (a)(1)(ii)(A) of the net capital rule which reduces debit balances
by 3% under the alternative method shall not apply; and

        (c)           Neither
Note E(1) to Rule 15c3-3a nor NYSE Interpretation /04 to Item 10 of Rule 15c3-3a
regarding securities concentration charges shall be applicable to the PAIB
reserve computation.

        The PAIB
reserve computation shall include all proprietary accounts of
Correspondent.  All PAIB assets shall be kept separate and distinct
from customer assets under the customer reserve formula in Rule
15c3-3.

        The PAIB
reserve computation shall be prepared within the same time frames as those
prescribed by Rule 15c3-3 for the customer reserve formula.

        Ridge shall establish and maintain a
separate “Special Reserve Account for the Exclusive Benefit of Customers” with a
bank in conformity with the standards of paragraph (f) of Rule 15c3-3 (“PAIB
Reserve Account”).  Cash and/or qualified securities as defined in the
customer reserve formula shall be maintained in the PAIB Reserve Account in an
amount equal to the PAIB reserve requirement.

        If the
PAIB reserve computation results in a deposit requirement, the requirement may
be satisfied to the extent of any excess debit in the customer reserve formula
of the same date.  However, a deposit requirement resulting from the
customer reserve formula shall not be satisfied with excess debits from the PAIB
reserve computation.

        Within
two business days of entering into this PAIB Agreement, Correspondent shall
notify its designated examining authority in writing (with copy to Ridge) that
it has entered into this PAIB Agreement.

        Commissions
receivable and other receivables of Correspondent from Ridge (excluding clearing
deposits) that are otherwise allowable assets under the net capital rule may not
be included in the PAIB reserve computation, provided the amounts have been
clearly identified as receivables on the books and records of Correspondent and
as payables on the books of Ridge.

        If
Correspondent is a guaranteed subsidiary of Ridge or if Correspondent guarantees
Ridge (i.e., guarantees all liabilities and obligations) then the proprietary
account of Correspondent shall be excluded from the PAIB Reserve
Computation.

        Upon
discovery that any deposit made to the PAIB Reserve Account did not satisfy its
deposit requirement, Ridge shall by facsimile or telegram immediately notify its
designated examining authority and the Securities and Exchange Commission
(“Commission”).  Unless a corrective plan is found acceptable by the
Commission and the designated examining authority, Ridge shall provide written
notification within 5 business days of the date of discovery to Correspondent
that PAIB assets held by Ridge shall not be deemed allowable assets for net
capital purposes.  The notification shall also state that if
Correspondent wishes to continue to count its PAIB assets as allowable, it has
until the last business day of the month following the month in which the
notification was made to transfer all PAIB assets to another clearing
broker.  However, if the deposit deficiency is remedied before the
time at which Correspondent must transfer its PAIB assets to another clearing
broker, the Correspondent may choose to keep its assets at Ridge.

        The parties shall adhere to the terms
of the No-Action Letter (a copy of which is attached hereto as Exhibit B and
which is hereby incorporated by reference), including the Interpretations set
forth therein, in all respects.

        

        IV.           EXTENSION OF
CREDIT

        

        A.            Margin
Agreement

        

        Prior to
the execution or clearance of any margin transaction in an Account,
Correspondent shall obtain and provide Ridge with a margin agreement,
hypothecation agreement and con­sent to loan of securities (collectively,
“margin agreement”) executed by the Customer (or, in the case of any
Proprietary Account, executed by Correspondent), such agreement to be in a form
acceptable to Ridge.  Ridge shall have all rights and remedies
set forth in such margin agreement, in addition to those set forth in this
Agreement, with respect to Accounts which are margin accounts.  All
transactions in an Account shall be considered cash transactions until Ridge has
determined, in its sole and exclusive dis­cretion, to accept margin
transactions therein and the duly executed margin agreement has been
received by Ridge.  Ridge may cancel and rebook as a cash transaction
any margin trans­action for an Account for which no such executed margin
agreement has been received prior to settlement date, and all transaction
costs associated with each such cancellation and re­booking shall be borne
in their entirety by Correspondent.  Correspondent shall be
respon­sible for compliance with Rule 10b-16 under the 1934
Act.  Correspondent shall obtain in advance of dissemination the
written approval of Ridge of any document to be provided to Customers in
connection with Rule 10b-16 under the 1934 Act.

        

                   B.            Margin
Requirements

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible to Ridge for the collection of
      initial margin and for maintenance at all times of margin in each Account
      sufficient to ensure compliance with Regulation T, promulgated by the
      Board of Governors of the Federal Reserve System pursuant to the 1934 Act,
      and any interpretations thereof, with any other margin or margin
      maintenance rules under the Applicable Laws and Rules, and with Ridge’s
      house margin rules.  After initial margin has been received,
      maintenance margin calls shall be generated by Ridge and made by Ridge or
      by Correspondent at the instructions of
Ridge.

                

        

        

        
          	
                   
      

                	
                  Correspondent
      understands and acknowledges that Accounts shall be subject to any house
      rules of Ridge requiring initial margin or maintenance margin in amounts
      greater than would otherwise be required under Regulation T or any other
      provisions of the Applicable Laws and Rules.  Ridge may at any
      time, in its sole and exclusive discretion, change its house margin
      requirements as they pertain to any Account or class of accounts or
      specific securities or class of securities, including, without limitation,
      in response to market conditions and periods of extreme
      volatility.  Such changes shall be effective immediately upon
      the provision of oral notice to Correspondent.  Correspondent
      shall be solely and exclusively responsible for advising the Customers of
      any such changes and for the prompt collection of any additional margin
      necessary to ensure compliance
therewith.

                

        

        

        C.            Interest
on Margin Accounts

        

        
          	
                   
      

                	
                  Ridge
      will charge interest on Accounts that are margin accounts in accordance
      with the margin agreements applicable to such Accounts, provided that such
      interest and other charges will not exceed amounts that may be charged
      under the Applicable Laws and Rules.  Ridge may at any time, in
      its sole and exclusive discretion, revise its credit terms and
      conditions.

                

        

        

        

        V.           TRANSMISSION, ACCEPTANCE AND
EXECUTION OF ORDERS

        

        
          	
                   
      

                	
                  A.

                	
                  Transmission
      of Orders

                

        

        

        
          	
                   
      

                	
                  All
      orders in Accounts shall be transmitted to Ridge by Correspondent in
      accordance with such procedures as Ridge may implement from time to time
      for that purpose.  Customers shall not place orders directly
      with Ridge.  Notwithstanding the foregoing, Ridge may, in its
      sole and exclusive discretion, on a case-by-case basis, make exception and
      agree to accept orders directly from a particular Customer or Account at
      the request of a Correspondent; provided, however, that
      in doing so Ridge shall not assume or be deemed to have assumed any of the
      responsibilities for supervision of Accounts allocated to Correspondent
      under this Agreement.  Ridge shall have no duty of inquiry or
      investigation with respect to any orders transmitted to it for execution
      or clearance.  Correspondent shall be responsible for the timely
      and accurate transmission of all orders to Ridge, as well as for any
      errors or discrepancies therein.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Acceptance
      of Orders

                

        

        

        
          	
                   
      

                	
                  Orders
      accepted by Ridge for execution and clearance shall be executed and
      cleared in accordance with Ridge’s standard practices and the Applicable
      Laws and Rules.  Ridge reserves the absolute
      right, exercisable in its sole and exclusive discretion acting in good
      faith, without prior notice to Correspondent or to the Customer, to reject
      for execution and clearance any orders or trades which exceed established
      limits or are otherwise unacceptable to Ridge due to such factors as
      adverse market conditions, assumptions regarding the volatility and
      liquidity of the subject securities, current market price, the financial
      condition or credit worthiness of Correspondent or of the Customer, any
      regulatory issues relating to Correspondent or the Customer, or for any
      reason whatsoever which, in the sole and exclusive discretion of Ridge
      acting in good faith, renders it advisable to reject an order or
      trade.  Ridge also reserves the right, exercisable in its sole
      and exclusive discretion acting in good faith, to restrict trading in
      Accounts in any manner, including, but not limited to, restricting trading
      to liquidating orders only or cash transactions only, or to prohibit
      certain trading strategies or trading of certain types of
      securities.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Over-the-Counter
      Transactions

                

        

        

        
          	
                   
      

                	
                  For
      all over-the-counter transactions, Correspondent shall furnish Ridge with
      the names of the respective purchasing and selling broker-dealers (except
      as otherwise provided in Section V.D. of this Agreement), and the
      wholesale and retail purchase and sale prices necessary for confirmation
      in accordance with the Applicable Laws and
  Rules.

                

        

        

        
          	
                   
      

                	
                  D.

                	
                  Designation
      of Contra Brokers

                

        

        

        
          	
                   
      

                	
                  Whenever
      Correspondent directs Ridge to route an order to a particular broker,
      dealer, or market for execution, including, without limitation,
      designating the contra broker in an

                

        

        
          	
                   
      

                	
                  over-the-counter
      transaction for an Account, Correspondent shall be responsible to Ridge
      for all aspects of the transaction, including, without limitation, any
      duty of best execution or any failure by such contra broker or dealer to
      settle the transaction for any reason whatsoever, and Correspondent shall
      immediately reimburse Ridge for any loss, liability, claim, cost or
      expense, in each case as incurred, including, but not limited to,
      attorneys’ fees and expenses incurred or sustained by Ridge in connection
      therewith.

                

        

        

        
          	
                   
      

                	
                  E.

                	
                  Short
      Sales

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for determining and advising
      Ridge whether each order for the sale of securities for an Account is
      “long” or “short” within the meaning of the Applicable Laws and
      Rules.  Correspondent shall also be solely and exclusively
      responsible for ensuring that each short sale for an Account complies with
      Rule 10a-1 under the 1934 Act, NYSE Rule 440B, all provisions relating to
      short sales under NASD rules, and the interpretations of such rules, and
      any other applicable provisions of the Applicable Laws and Rules regarding
      short sales.

                

        

        

        
          	
                   
      

                	
                  F.

                	
                  Low
      Priced/Penny Stocks

                

        

        

        Ridge
shall not be required to execute orders in any securities that are not “reported
securities,” as defined in SEC Rule 3a51-1.  Correspondent shall not
accept orders for transactions in securities that do not meet such criteria
without the prior written consent of Ridge, and the disclosure requirements of
SEC Rule 3a51-1 do not apply.

        

        
          	
                   
      

                	
                  G.

                	
                  Order
      Limits; Position and Credit
Limits

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be responsible for maintaining continuing familiarity and compliance
      with all limits on order size and all position and credit limits which
      have been or may be established by Ridge with respect to transactions in
      the Accounts, which limits may be changed from time to time by Ridge in
      its sole and exclusive discretion.  Correspondent agrees to
      notify Ridge and obtain its approval prior to the entry of any trade in an
      Account which would exceed such
limits.

                

        

        

        
          	
                   
      

                	
                  H.

                	
                  Delivery
      Versus Payment

                

        

        

        
          	
                   
      

                	
                  Correspondent
      agrees to comply with NYSE Rule 226 by ensuring that its Customers utilize
      the facilities of a securities depository for the confirmation,
      acknowledgment, and book entry settlement of all depository eligible
      transactions in connection with delivery versus payment
      transactions.  Correspondent shall be solely and exclusively
      responsible for causing any Customers engaging in such transactions to
      utilize such facilities.  Correspondent further agrees to ensure
      that its Customers shall provide their agent with instructions in
      accordance with the requirements set forth in NASD Rule
    11860.

                

        

        

        

        
          	
                   
      

                	
                  I.

                	
                  Buy-Ins
      and Sell-Outs; Interest
Charges

                

        

        

        
          	
                   
      

                	
                  Upon
      the failure of any Customer (or, in the case of Proprietary Accounts,
      Correspondent) to make timely payment for securities purchased or timely
      and good delivery of securities sold, or the failure timely to comply with
      any applicable margin requirements, Ridge will be entitled, but not
      obligated, to take such remedial action, or direct Correspondent to take
      such remedial action, as Ridge, in its sole and exclusive discretion,
      deems appropriate, including, but not limited to, executing buy-ins or
      sell-outs for an Account.  Checks shall not consti­tute
      payment until they have cleared and the proceeds have been collected by
      Ridge’s bank and credited to Ridge.  The taking or not taking of
      any such remedial action by Ridge shall not in any way affect or diminish
      Correspondent’s indemnification, reimbursement, or payment obligations
      pursuant to this Agreement.

                

        

        

        
          	
                   
      

                	
                  To
      the extent permitted by Regulation T, Rule 15c3-3(m) under the 1934 Act,
      or any other provisions of the Applicable Laws and Rules, Correspondent
      may request, in a writing signed by an officer, partner or principal of
      Correspondent, that Ridge defer a buy-in or sell-out for an
      Account.  The grant or denial, in whole or in part, of any such
      request to defer a buy-in or sell-out, or of any application for an
      extension of time for any Account to make any pay­ment required by
      Regulation T or any other provision of the Laws or Rules, shall remain
      within the sole and exclusive discretion of
      Ridge.  Correspondent shall be liable to Ridge for any loss or
      expense incurred by Ridge in connection with such request, whether or not
      granted.

                

        

        

        
          	
                   
      

                	
                  Ridge
      may, at its option, charge Customers (or, in the case of Proprietary
      Accounts, Correspondent) interest at the rate of 2% above the broker’s
      call rate, or such other rate as may be agreed in writing by Correspondent
      and Ridge, arising from any debit in an Account however arising,
      including, without limitation, for late payments or deliveries of
      securities.  Correspondent shall be liable to Ridge for such
      charges to the extent not paid by
Customers.

                

        

        

        
          	
                   
      

                	
                  J.

                	
                  Option
      Assignments, Tender Offers, and Rights
  Offerings

                

        

        

        
          	
                   
      

                	
                  Ridge
      will process option assignments, tender offers, and rights offerings only
      in accordance with the written instructions of Correspondent or the
      Customer.

                

        

        

        
          	
                   
      

                	
                  Ridge
      may, in its sole and exclusive discretion, buy back in the cash market or
      borrow shares on the day Ridge is notified of option assignments affecting
      shares which have been tendered and which have caused short positions in
      Accounts as of either the proration or withdrawal date.  Shares
      purchased for cash or borrowed shall not be considered part of an
      Account’s tendered position until such shares are in Ridge’s actual
      possession.  Ridge will reduce the tender for Accounts by the
      size of the short or unreceived
shares.

                

        

        

        
          	
                   
      

                	
                  During
      a tender period in which there are competing and counter tender offers for
      a security, Ridge will tender only upon the written instructions of
      Correspondent or the Customer and only on a trade date basis the number of
      shares net long in the Account as of either the proration or withdrawal
      date, which number shall, at Ridge’s request, be confirmed in writing by
      Correspondent.  Correspondent shall be solely and exclusively
      responsible for ensuring that such tender is being made upon the
      instructions of persons authorized to direct the disposition of the shares
      and, at Ridge’s request, shall confirm it in
  writing.

                

        

        

        
          	
                   
      

                	
                  In
      connection with a rights offering, Ridge will exercise rights only upon
      the written instruc­tions of Correspondent or the Customer and
      only on a trade date basis the number of rights relating to shares net
      long in the Account, which number shall, at Ridge’s request, be confirmed
      in writing by Correspondent.  Correspondent shall be solely and
      exclusively responsible for ensuring that such exercise is being made upon
      the instructions of persons authorized to do so and, at Ridge’s request,
      shall confirm it in writing.

                

        

        

        K.           Options
Policy

        

        At Ridge it is the
policy that no uncovered (“naked”) index options orders are to be entered on
behalf of any client or correspondent.  In addition, all option orders
are required to be designated as opening or closing, whichever term
applies.  Correspondent is responsible for ensuring compliance with
this policy and will be liable for the consequences of any violations,
including, but not limited to, any damages caused.  Ridge may terminate
this Agreement in the event that you fail to comply with this
policy.

        

        
          	
                   
      

                	
                  L.

                	
                  Participation
      in Underwritings / Special
Requirements

                

        

        

        Correspondent
agrees that, if it participates in Initial Public Offerings (IPO’s) either as a
Manager or a Co-Manager, it shall provide Ridge’s Risk Manager with a
preliminary prospectus (“Red Herring”) and an estimate of the size of
Correspondent’s commitment, as soon as practicable after the filing of the Red
Herring.

        

        

        
          	
                   
      

                	
                  M.

                	
                  Execution
      Away

                

        

        

        In the
event you execute your own orders and give Ridge’s name to the
other broker for clearance and settlement, you agree that you will only execute
bona fide orders or request free delivery of cash or securities where you have
reasonable grounds to believe that the Account and the other broker have the
financial capability to complete the transaction.  Ridge reserves the
right at any time to place a limit (of either dollars or number of securities)
on the size of transactions that Ridge in these
circumstances will accept for clearance.  If, after you have received
notice of such limitation, you execute an order in excess of the limit
established by Ridge, Ridge shall have
the right to notify the other party and other broker that it will not accept the
transaction for clearance and settlement.  In the event any claim is
asserted against Ridge by the other
broker because of such action by Ridge, you agree to
indemnify and hold Ridge harmless from
any loss, liability, damage, cost or expense (including but not limited to fees
and expenses of legal counsel) arising directly or indirectly
therefrom.

        

        In the
event you execute orders away from Ridge, Ridge will on a
best efforts basis attempt to clear the transaction within a reasonable period
and utilize the same procedures it utilizes when clearing transactions on behalf
of other firms clearing through Ridge.  If
either you or the other broker for any reason whatsoever fail to settle the
transaction, you will be solely liable to Ridge for any and
all loss, including expenses caused thereby and Ridge shall have no
liability to you whatsoever in any such circumstance.  You further
agree to take all appropriate capital charges on your books arising out of or
incurred in connection with your executing orders away from Ridge.

        

        Notwithstanding
the foregoing, option transactions shall be executed on behalf of Customers and
Accounts solely and exclusively by Ridge.

        

        

        

        

        
          	
                  VI.

                	
                  RECEIPT AND DELIVERY
      OF FUNDS AND SECURITIES

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Receipt
      and Delivery in the Ordinary Course of
  Business

                

        

        

        
          	
                   
      

                	
                  Ridge
      will receive and deliver funds and securities for Accounts in accordance
      with Correspondent’s written instructions to Ridge, provided that
      Correspondent shall be responsible for advising Customers of their
      obligations to deliver funds or securities in connection with each
      trans­action in an Account and shall be responsible for any failure by
      a Customer to satisfy such obligations.  Correspondent agrees
      promptly to deliver to Ridge any and all funds or securities received by
      Correspondent from Customers, together with such information as may be
      relevant or necessary to enable Ridge properly to record such
      deliveries in the appro­priate Accounts.  Ridge will be
      responsible for the safeguarding of all funds and securities actually
      received and accepted by Ridge, subject to count and verification by
      Ridge.  Ridge shall not be responsible for any funds or
      securities delivered by a Customer to Correspondent or its agents or
      employees until such funds or securities are physically de­livered to
      and accepted by Ridge at its premises or deposited in Ridge’s bank
      accounts.  It is expressly understood and agreed, however, that
      Correspondent shall be responsible for com­pliance with the Currency
      Act, and the regulations promulgated thereunder.  Ridge reserves
      the right to reject any funds or securities, without prior notice to
      Correspondent or to the Customer, that it determines, in its sole and
      exclusive discretion, may violate or cause a violation of the Applicable
      Laws and Rules, including, without limitation, the Bank Secrecy Act, the
      Patriot Act, and the regulations promulgated
      thereunder.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Lost,
      Stolen or Forged Securities

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be respon­sible for any defect in title to any securities
      purchased, sold, borrowed, delivered or transferred under this Agreement
      which may have been forged, counterfeited, altered, lost, stolen, or the
      subject of any similar occurrence or
act.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Custody
      Services

                

        

        

        
          	
                   
      

                	
                  Whenever
      Ridge acts as custodian of securities in any Account or holds securities
      in “safekeeping”, Ridge may hold the securities in the Customer’s name
      (“Customer Name Securities”), or may cause such securities to be
      registered in the name of Ridge or its nominee or in the names or nominees
      of any depository used by Ridge (“Nominee Name”).   If
      securities are held in the name of the Customer (i.e., not in Nominee
      Name), Ridge will have no responsibility for, among other things,
      collecting and paying of dividends, transmitting and handling tenders or
      exchanges pursuant to tender offers and exchange offers,
      transmitting  proxy materials and other shareholder
      communications, and  handling  exercises or
      expirations of rights and warrants or
  redemptions.

                

        

        

        
          	
                   
      

                	
                  D.

                	
                  Receipt
      and Delivery Pursuant to Special
  Instructions

                

        

        

        
          	
                   
      

                	
                  Upon
      special instructions from Correspondent or from a Customer, Ridge will
      endeavor to make such transfers of securities or Accounts as may be
      requested, consistent with the Applicable Laws and Rules.  Any
      such special instructions shall be in
writing.

                

        

        

        
          	
                   
      

                	
                  E.

                	
                  Restricted
      or Control Securities

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for determining whether any
      secu­rities in Accounts are restricted and/or control securities
      within the meaning of Rule 144 under the 1933 Act, and for ensuring that
      any transactions in such securities are in compliance with the Applicable
      Laws and Rules.  Prior to the time an order in such securities
      is transmitted to Ridge, Correspondent shall notify Ridge and Ridge may,
      in its sole and exclusive discretion, charge such reasonable fees, in
      addition to the clearing charges described below, as it deems appropriate
      for handling such transactions.

                

        

        

        

        
          	
                  VII.

                	
                  CONFIRMATIONS AND
      STATEMENTS

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Preparation
      and Transmission

                

        

        

        In the case of Customer
Accounts, Ridge will prepare and mail confirmations and monthly or quarterly
statements of account to Customers in connection with trans­ac­tions
executed or cleared through Ridge.  Confirmations and statements of
account shall disclose that the Accounts are carried on a fully-disclosed
basis for Correspondent.  Correspondent acknowledges that such
confirmations shall be prepared and delivered on Correspondent’s behalf and at
its direction, and that such confirmations shall remain, for all pur­poses,
the confirmations of Correspondent.  Correspondent further
ac­knowledges that it shall have sole and exclusive responsibility for
information that it provides or fails to provide for disclosure on confirmations
and monthly or quarterly statements.  Accordingly, Correspondent shall
provide in writing to Ridge any information required by the Applicable Laws and
Rules to be disclosed in its confirmations and monthly and quarterly statements,
including, without limitation, information required in connection with any
Directed-Brokerage Arrangement or Payment for Order Flow Arrangement.
  Correspondent shall review and approve in writing the form of
confirmations and monthly and quarterly statements of account prior to their
use.   Ridge will provide Correspondent with copies of all
confirmations and statements sent by Ridge to Customers in connection with
the Accounts.  Correspondent shall not prepare or transmit
confirmations or periodic account statements to Customers without the prior
written consent of Ridge.

        

        
          	
                   
      

                	
                  B.

                	
                  Examination
      and Notification of Errors

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall examine promptly all confirmations, comparisons, monthly and
      quarterly statements of account, the Reconciliation Statements (as
      defined in Section IX.C. of this Agreement), and any other statements or
      reports provided to Correspondent by Ridge or its clearing
      agency.  Confirmations and comparisons shall be deemed accurate
      and correct, and Correspondent shall be deemed to have waived any claim
      with respect to the accuracy or correctness of the information therein,
      unless Correspondent notifies Ridge in writing of any alleged errors or
      discrepancies prior to the settlement date for the subject
      transactions.  Monthly and quarterly statements of account shall
      be deemed accurate and correct, and Correspondent shall be deemed to have
      waived any claim with respect to the accuracy or correctness of the
      information therein, unless Correspondent notifies Ridge in writing of any
      alleged errors or discrepancies within ten (10) business days of
      receipt.  Any notice of error shall be accom­panied by such
      documentation as may be necessary to substantiate Correspondent’s
      claim.  At the request of Ridge, Correspondent promptly shall
      provide any additional documentation or information Ridge reasonably
      believes is necessary or desirable to substantiate and correct any such
      alleged error or discrepancy.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Notations
      on Confirmations, Monthly and Quarterly Statements, and
      Notices

                

        

        

        
          	
                   
      

                	
                  Ridge
      will make reasonable efforts to indicate on confirmations, monthly and
      quarterly statements, and notices to Customers that Customers are
      customers of Correspondents or are introduced by
      Correspondent.  Occasional or inadvertent omission of such
      notations shall not be deemed to constitute a breach of this Agreement,
      and shall not affect the allocation of responsibilities between Ridge and
      Correspondent pursuant to this
Agreement.

                

        

        

        

        
          	
                  VIII.

                	
                  BOOKS AND
      RECORDS

                

        

        

        
          	
                   
      

                	
                  Ridge
      will prepare and maintain stock records and other prescribed books and
      records of the services performed and transactions effected by Ridge for
      the Accounts on a basis consistent with generally accepted practices in
      the securities industry and with the Applicable Laws and Rules governing
      clearing brokers.  Such books and records will include, without
      limitation, records of daily margin requirements as required by NYSE Rule
      432.  Ridge reserves the right, at its sole and exclusive
      discretion, to amend its policies with respect to the retention of reports
      requested by or provided to Correspondent.  Any reports relating
      to the Accounts that, under the Applicable Laws and Rules, are required to
      be prepared and filed with the SEC or any other regulatory or
      self-regulatory organization by Correspondent or Ridge shall remain the
      responsibility of the respective parties, and Ridge and Correspondent each
      agrees promptly to provide the other with any information in its
      possession necessary to enable the other to prepare and file any such
      reports.

                

        

        

        

        
          	
                  IX.

                	
                  COMMISSIONS AND
      CLEARING FEES

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Commissions

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall be solely and exclusively responsible for determining the amount of
      commissions, mark-ups and similar fees charged by Correspondent
      (collectively, “Commissions”) for transactions in the Customer Accounts,
      and Ridge shall not exercise any control or influence over the amount of
      such Commissions.  Correspondent shall be solely and exclusively
      responsible for compliance with the Applicable Laws and Rules
      relating to commissions, including, but not limited to, any disclosures to
      Customers or others re­quired to be made in connection
      therewith.  On or before the execution of this Agreement,
      Correspondent shall have provided Ridge with a schedule (the “Commission
      Schedule”) show­ing the amounts of Commissions to be charged to
      Customers.  Correspondent may amend the Commission Schedule from
      time to time by written instructions to Ridge.  Ridge will debit
      and collect from Customer Accounts the amounts shown on the Commission
      Schedule, but Ridge will be required to implement any amendments to the
      Commission Schedule only to the ex­tent and over such time as is
      within the normal capabilities of Ridge’s data pro­cessing and
      operations systems.  Notwithstanding anything herein to the
      contrary, Ridge shall not be obli­gated to charge Customers any
      amounts that it believes violate the Applicable Laws and Rules, but Ridge
      will have no obligation to determine whether any such charges violate the
      Applicable Laws and Rules.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Clearing
      Fees

                

        

        

        
          	
                   
      

                	
                  Correspondent
      agrees to pay Ridge the clearing fees and other amounts set forth
      in  Schedule B hereto for the execution, clearing and related
      services to be provided under this Agreement.  Schedule B
      is hereby incorporated in and made an integral part of this
      Agreement.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Collection
      and Remittance of
Commissions

                

        

        

        
          	
                   
      

                	
                  On
      behalf of Correspondent, Ridge will collect all Commissions paid by
      Customer Accounts and will deduct and retain the following amounts from
      such Commissions:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  all
      amounts payable to Ridge in accordance with Schedule B and any amendments
      thereto;

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  any
      expenses payable by Ridge on Correspondent’s
  behalf;

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  any
      loss, liability, dam­age, claim, cost or ex­pense (including, but
      not limited to, attorneys’ fees and expenses), as incurred, in respect of
      which Ridge or any of its control persons, directors, officers, employees,
      agents, affiliates, successors and assigns (collectively, including Ridge,
      the “Ridge Parties”) is entitled to indemnification by Correspondent under
      this Agreement; and

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  all
      other amounts owed by Correspondent or by any Customer to Ridge pursuant
      to this Agreement or any other agreement between Ridge and Correspondent
      or between Ridge and any Customer (including, without limitation,
      Customers’ unsecured debit items or unsecured or partially secured short
      positions).

                

        

        

        
          	
                   
      

                	
                  As
      soon as practicable after the end of each month, Ridge will credit the
      Settlement Deposit Account (as defined in Section X.B. of this Agreement)
      with the amount of Commissions collected by Ridge on Correspondent’s
      behalf, net of all amounts to be deducted as set forth above and any other
      amounts due to Ridge from Correspondent, however arising, as determined by
      Ridge.  If the amount due to Ridge in any month exceeds the
      amount available in Correspondent’s Settlement Deposit Account,
      Correspondent shall, in accordance with the provisions of Section X.A. of
      this Agreement, immediately deposit with Ridge additional cash so that the
      Settlement Deposit Account shall always have a zero or credit
      balance.  If Correspondent fails to make such additional
      deposit, Ridge will have full rights of setoff, including, without
      limitation, the right to charge any other Account maintained by Ridge for
      Correspondent or any other assets of Correspondent held by Ridge,
      including, but not limited to, the Security Deposit (as defined in Section
      X.B. of this Agreement) and positions and balances in Accounts which are
      proprietary accounts of Correspondent, for the net amount due
      Ridge.  If Ridge elects not to charge such other Accounts or
      assets, or such assets are insufficient to discharge the net amount due to
      Ridge, any amount due to Ridge will be paid to Ridge by Correspondent by
      check within ten (10) days of Correspondent’s receipt of a statement (the
      “Reconciliation Statement”) showing the amount due to Ridge.  If
      Ridge does not receive payment within such period, Ridge will charge
      Correspondent interest at 2% above the broker’s call rate, or such other
      rate as may be agreed in writing by Ridge and Correspondent until
      paid.  Any failure by Ridge to charge the Settlement Deposit
      Account or any other Account or assets of Correspondent held by Ridge
      shall not act as a waiver of Ridge’s right to demand payment of, or to
      charge Correspondent’s Accounts for, the full amount due at any
      time.

                

        

        

        

        
          	
                  X.

                	
                  SECURITY
      FOR OBLIGATIONS OF
CORRESPONDENT

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Lien
      and Security Interest

                

        

        

        
          	
                   
      

                	
                  In
      order to secure the performance by Correspondent of all of its obligations
      under this Agreement, including, but not limited to, its liability to
      Ridge for any failures by Customers timely to pay for or deliver
      securities purchased or sold and for any losses resulting from unsecured
      debit balances or short positions in Accounts, Correspondent hereby grants
      Ridge a continuing lien, security interest in and right of setoff against
      (a) the Settlement Deposit Account and the Security Deposit (as such terms
      are defined below), (b) any Proprietary Accounts, and (c) any
      Commissions, funds, securities or other property of Correspondent held by
      Ridge.  Correspondent further agrees that Ridge may debit any
      cash balances and/or liquidate any securities held in the Settlement
      Deposit Account or in any Proprietary Account and credit the proceeds to
      Ridge in such amounts as are necessary to satisfy Correspondent’s
      obligations under this Agreement and at such times as Ridge, in its sole
      and exclusive discretion, deems appropriate.  The lien, security
      interest and right of setoff created hereunder shall survive the
      termination of this Agreement until such time as, in the sole and
      exclusive discretion of Ridge, security for the performance of
      Correspondent’s obligations is no longer
  required.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Settlement
      Deposit Account and Security
Deposit

                

        

        

        
          	
                   
      

                	
                  On
      or before the execution of this Agreement, Correspondent shall have
      established an account (the “Settlement Deposit Account”) with
      Ridge.  The Settlement Deposit Account shall at all times
      contain cash and/or securities issued or guaranteed as to principal and
      interest by the United States (“U.S. Government Securities”) having an
      aggregate present value as set forth in Schedule B (the “Security
      Deposit”).  Ridge reserves the right, in its sole and exclusive
      discretion, on written notice to Correspondent, at any time, to increase
      the amount of the Security Deposit required to be maintained by
      Correspondent.  Correspondent shall immediately transfer to the
      Settlement Deposit Account sufficient cash and/or U.S. Government
      Securities to satisfy the increased amount of the Security
      Deposit.  If Correspondent fails to transfer such additional
      cash or U.S. Government Securities to the Settlement Deposit Account, or
      if, for any other reason, including, but not limited to, the exercise of
      any right of setoff pursuant to Section X.A. of this Agreement, the
      aggregate value of cash and U.S. Government Securities in the Settlement
      Deposit Account is less than the Security Deposit amount then in effect,
      Ridge will be entitled to deposit in the Settlement Deposit Account such
      Commissions, funds, securities or other property of Correspondent in
      Ridge’s possession as are necessary to satisfy the
      deficiency.  No later than thirty (30) days after termination of
      this Agreement, Ridge shall refund all cash or securities in the Settlement
      Deposit Account except for (i) deductions on account of (a) all clearing
      and other charges, costs, or expenses due Ridge in accordance with the
      terms of this Agreement, including any minimum monthly fee set forth on
      Schedule B to the extent applicable; (b) all charges payable by Ridge on
      your account; and (c) all amounts due Ridge from you under this Agreement
      including amounts arising from any losses, liabilities, or damages in
      accordance with the terms hereof and (ii) amounts held back as determined
      by Ridge, in the reasonable exercise of its discretion, to be necessary to
      protect itself fully against any liabilities, costs, or expenses (whether
      mature or contingent, liquidated or unliquidated) for which Correspondent
      may be responsible under the terms of this Agreement (without limiting the
      foregoing, amounts held back may include reasonable amounts on account of
      transactions in respect of Customer Accounts that have settled for ten
      days or less and on account of margin accounts of your Customers or other
      Customer Accounts having a debit balance, other than accounts that
      Correspondent has agreed in writing to
accept).

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Funds,
      Securities and No Interest

                

        

        

        
          	
                   
      

                	
                  All
      funds transferred to the Settlement Deposit Account shall be in
      immediately available United States funds.  All securities
      transferred to the Settlement Deposit Account (a) shall be in
      suitable form for transfer or shall be accompanied by duly executed
      instruments of transfer or assignment in blank and such other
      documentation as Ridge may request, and (b) shall be transferred on
      the book-entry system of a Federal Reserve Bank, or by any other method
      acceptable to Ridge.  Ridge shall not be obligated to pay
      interest to Correspondent on any cash held in the Settlement Deposit
      Account.  Neither the Security Deposit nor the Settlement
      Deposit Account shall be deemed to be margin for any Account, nor shall
      they give rise to or constitute an ownership interest in
      Ridge.

                

        

        

        

        
          	
                  XI.

                	
                  INFORMATION TO BE
      SUPPLIED BY CORRESPONDENT

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Financial
      Statements and Other Reports

                

        

        

        
          	
                   
      

                	
                  Throughout
      the term of this Agreement, Correspondent shall promptly furnish Ridge
      with copies of, as well as any amendments or supplements to, the audited
      annual and unaudited quarterly financial statements of its parent, for
      each fiscal year and quarterly period, any Financial and Operational
      Combined Uniform Single (“FO­CUS”) Reports, any amendments to
      Correspondent’s Form BD, any reports on Form U-4 or Form U-5 for any of
      Correspondent’s executive officers, and any other material regulatory or
      financial reports that Ridge may from time to time reasonably
      request.  Correspondent shall promptly advise Ridge in writing
      of any material errors or omissions in such financial information and
      reports that it becomes aware of.  Correspondent further will
      immediately provide notice to Ridge in the event that Correspondent’s
      capital becomes subject to the “early warning” provisions of SEC Rule
      17a-11.  With respect to such reports and notice that
      Correspondent with its primary examining authority or the SEC
      Correspondent shall provide such reports and notice to Ridge no later than
      the time Correspondent files such reports with its primary examining
      authority or the SEC.

                

        

        

        

        
          	
                   
      

                	
                  B.

                	
                  Suspension
      or Restriction

                

        

        

        
          	
                   
      

                	
                  In
      the event that Correspondent learns that Correspondent or any of its
      affiliates or executive officers be­comes subject to revocation,
      suspension, bar, injunction, restriction, consent decree, cease-and-desist
      order, or other formal disciplinary action by the SEC, the Financial
      Industry Regulatory Authority (“FINRA”), or any other regulatory or
      governmental body having jurisdiction over Correspondent or such affiliate
      or executive officer, Correspondent shall notify Ridge promptly and, in
      addition to such other rights and remedies as Ridge may have under this
      Agreement and the Applicable Laws and Rules, Correspondent authorizes
      Ridge to take such reasonable steps as Ridge determines, in its sole and
      exclusive discretion, may be necessary or advisable for Ridge to be in
      compliance with the Applicable Laws and Rules.  Correspondent
      further authorizes Ridge, in such event, to comply with requests,
      directives or demands made upon Ridge by any such exchange or regulatory
      body.  In connection with such requests, directives or demands,
      Ridge may seek advice or legal
counsel.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Actions,
      Lawsuits, Arbitrations, Investigations and
  Inquiries

                

        

        

        
          	
                   
      

                	
                  In
      the event that Correspondent learns that Correspondent or any of its
      affiliates or executive officers becomes a subject, target, respondent or
      defendant in any material action, lawsuit, arbitration, investigation,
      inquiry or other proceeding (formal or informal) relating, directly or
      indirectly, to it or its business, Correspondent shall notify Ridge in
      writing within ten (10) business days and, in addition to such other
      rights and remedies as Ridge may have under this Agreement and the
      Applicable Laws and Rules, Correspondent authorizes Ridge to take such
      steps as Ridge determines, in its sole and exclusive discretion, may be
      necessary or advisable for Ridge to be in compliance with the Applicable
      Laws and Rules.

                

        

        

        
          	
                   
      

                	
                  D.

                	
                  Additional
      Information

                

        

        

        
          	
                   
      

                	
                  At
      the reasonable request of Ridge, Correspondent shall promptly supply Ridge
      with such other infor­mation, reports or documentation reflecting or
      relating to Correspondent’s finan­cial condition, including, without
      limitation, its aggregate indeb­tedness ratio and net capital;
      Correspondent’s executive officers; and inquiries, investi­gations, or
      disciplinary action relating to Correspondent or  its executive
      officers by the SEC, NYSE, NASD, or any other regulatory or governmental
      body.   Within five (5) business days after their filing,
      Correspondent shall supply Ridge with copies of reports that it files
      pursuant to the Bank Secrecy Act, the Patriot Act, or any other AML
      provision, including, without limitation, CTRs, CMIRs, SARs or
      FBFARS.  At the request of Ridge, Correspondent shall (i) file a
      notice pursuant to Section 314 of the Patriot Act and any regulation(s)
      promulgated thereunder to permit the voluntary sharing of information
      between the parties, and (ii) supply Ridge with such additional
      information as is necessary for Ridge to satisfy its obligations under the
      Bank Secrecy Act, the Patriot Act, and the regulations promulgated
      thereunder.

                

        

        

        

        
          	
                  XII.

                	
                  COMMUNICATIONS WITH
      CUSTOMERS

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall provide written notice to new Customers within (30) thirty days of
      execution of the relevant customer agreement, describing the respective
      obliga­tions of the parties under this Agreement and any other
      customer-related respon­sibilities of the parties in accordance with
      NYSE Rule 382 and NASD Rule 3230.  The notifications shall be in
      substantially the form of Exhibit A annexed hereto; provided, however, that
      Ridge may, in its sole and exclusive discretion, provide the notifications
      on behalf of Correspondent.  Correspondent shall be responsible
      for the payment of all costs incurred in connec­tion with the
      preparation and mailing of the
notifications.

                

        

        

        
          	
                   
      

                	
                  Ridge
      and Correspondent each agrees to forward promptly to the other party a
      copy of any written complaint received from a Customer or other material
      written correspondence that relates to services provided or obligations
      assumed under this Agreement by the other party.  Ridge and
      Correspondent each agrees to forward promptly to the other party’s DEA a
      copy of any written complaint received from a Customer that relates to
      services provided or obligations assumed under this Agreement by the other
      party.  Correspondent agrees to forward promptly to Ridge a copy
      of all of Correspondent’s filings pursuant to NYSE Rule
      351.  Correspondent shall also provide Ridge with such
      additional information as Ridge may reasonably
  request.

                

        

        

        

        
          	
                  XIII.

                	
                  ERRORS, CONTROVERSIES
      AND ADDITIONAL INDEMNITIES

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Errors
      and Controversies

                

        

        

        
          	
                   
      

                	
                  Correspondent
      shall, except to the extent provided directly below, be solely and
      exclusively respon­si­ble for any error, controversy, dispute or
      discrepancy between Correspondent, or any of its control persons,
      partners, directors, officers, employees, agents, affiliates, successors
      or assigns (collectively, including Correspondent, the “Correspondent
      Parties”), and any of the Ac­counts or Customers.  Except to
      the extent otherwise provided in this Agreement and except to the extent
      resulting from the negligence of Ridge or any Ridge Party, Correspondent
      shall indemnify, and hold harmless Ridge and any Ridge Party, from and
      against any allegations, claims, demands, proceedings, suits, and actions
      and any liabilities, expenses, attorney’s fees (including fees and costs
      incurred in enforcing Ridge’s right to indemnification), and costs in
      connection therewith arising directly or indi­rectly from any such
      error, controversy, dispute or discrepancy, and from any action or
      proceeding commenced by or against any of the Correspondent Parties by any
      Customer, or from the settlement of any such claim, action or
      proceeding.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Additional
      Indemnities

                

        

        

        Except to
the extent otherwise provided in this Agreement and except to the extent
resulting from the negligence of Ridge or any Ridge Party, Correspondent shall
indemnify, and hold harmless Ridge and any Ridge Party, from and against any
allegations, claims, demands, proceedings, suits, and actions and any
liabilities, expenses, attorney’s fees (including fees and costs incurred in
enforcing Ridge’s right to indemnification), and costs in connection therewith
arising directly or indirectly from or related to the Accounts, the Customers or
any order or transaction contemplated by this Agreement, or as a result of any
inquiry or inves­tigation conducted in con­nection therewith or in the
defense or settlement of any threatened or pending action or proceeding brought
by any regu­latory or self-regulatory organization, governmental agency or
private person arising out of or in connection with the same including, among
other things, any loss, liabili­ty, dam­age, claim, cost or ex­pense
(including, but not limited to, attorneys’ fees and expenses) arising from or
relating to any of the following:

        

        

        
          	
                   
      

                	
                  1.

                	
                  the
      failure of any Customer to make timely payment for securities purchased or
      timely and good delivery of securities sold, the existence of an unsecured
      debit balance or unsecured short position in an Account, the failure of
      any Customer timely to comply with initial margin or maintenance margin
      requirements, the failure of any Customer to pay interest in accordance
      with the applicable margin agreement(s), or the failure of any Customer
      otherwise to fulfill any of its obligations in connection with any
      Account;

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  the
      failure of Correspondent to perform any duty, obligation, or
      responsibility with respect to customer accounts as set forth in this
      Agreement, it being understood that Correspondent’s indemnification
      obligation under this Paragraph shall not be affected by the participation
      of Ridge or any Ridge Party in any transaction giving rise to such an
      obligation, unless such participation constitutes recklessness, fraud, or
      criminal conduct;

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  any
      defect in title to any securities purchased, sold, borrowed, delivered or
      transferred under this Agreement (including, without limitation, those
      that may have been forged, counterfeited, altered, lost or stolen), and
      any adverse claims with respect to any securities purchased, sold,
      bor­rowed, delivered or transferred under this Agreement, it being
      understood that Ridge will be deemed to be solely and exclusively an
      intermediary between Correspondent and Customers with respect to such
      securities and will be deemed to make no representations or warranties
      other than as provided with respect to intermediaries in Section 8-306 of
      the Uniform Commercial Code;

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  any
      claim by any contra broker or any other person arising from or relating to
      Ridge’s rejection of a transaction for clearance pursuant to the terms of
      this Agreement, or the failure by any contra broker designated by
      Correspondent to settle any transaction for an
  Account;

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  any
      errors or discrepancies in orders as transmitted by Correspondent or
      Customer to Ridge;

                

        

        

        6.        
the use of check-writing privileges pursuant to Section XXI.C. of this
Agreement;

        

        
          	
                   
      

                	
                  7.

                	
                  any
      request by Correspondent to defer a buy-in or sell-out for an Account, or
      to extend the time for the making of a required margin payment by an
      Account, whether or not granted in whole or in part by
    Ridge;

                

        

        

        
          	
                   
      

                	
                  8.

                	
                  any
      guarantee by Ridge of any signatures with respect to a transaction in an
      Account;

                

        

        

        
          	
                   
      

                	
                  9.

                	
                  the
      exercise by Correspondent Parties of discretionary authority over any
      Account;

                

        

        

        
          	
                   
      

                	
                  10.

                	
                  any
      action or inaction by an agent holding a power of attorney for an Account
      on behalf of a principal;

                

        

        

        
          	
                   
      

                	
                  11.

                	
                  any
      claim or dispute arising directly or indirectly from a Soft-Dollar
      Arrangement, Directed-Brokerage Arrangement, or Payment for Order Flow
      Arrangement;

                

        

        

        
          	
                   
      

                	
                  12.

                	
                  any
      act or omission of Correspondent, its agents, employees or customers which
      infringes on any patent, trade secret, copyright, trademark, or other
      intellectual property right of Ridge;
or

                

        

        

        
          	
                   
      

                	
                  13.

                	
                  the
      breach by Correspondent of, or an untrue statement or omission in, any
      represen­tation, warranty or covenant in this
    Agreement.

                

        

        

        In addition, Ridge shall indemnify, defend, and hold
harmless Correspondent from and against any claims, demands, proceedings, suits, actions,
liabilities, expenses, and reasonable attorney’s fees, and costs in connection
therewith arising out of any grossly negligent, reckless misconduct, dishonest,
fraudulent, or criminal act or omission on the part of any of Ridge’s officers
or employees with respect to the services provided by Ridge under this
Agreement.

        

        

        
          	
                   
      

                	
                  C.

                	
                  Defense
      of Claims and Actions

                

        

        

        
          	
                   
      

                	
                  If
      any claim or action is asserted or commenced against any Correspondent
      Party or any Ridge Party (an “Indemnitee”) in re­spect of which
      indemnity may be sought against Ridge or Correspondent (an “Indemnifying
      Party”) as the case may be pursuant to this Agreement, such Indemnitee
      will notify the applicable Indemnifying Party in writing, and such
      Indemnifying Party shall assume the defense of such claim or action,
      including the employment of counsel and pay­ment of attorneys’ fees
      and expenses, as incurred, on behalf of such Indemnitee.  Each
      Indemnitee against whom such claim or action is asserted or commenced
      shall have the right to employ its own separate counsel, but the fees and
      expenses of such separate counsel shall be at the expense of such
      Indemnitee unless: (1) the employ­ment of such separate counsel shall
      have been authorized in writing by the  Indemnifying Party; (2)
      the Indemnifying Party shall not have employed counsel to conduct the
      defense of such Indemnitee; or (3) such Indemnitee shall have reasonably
      concluded that, as between such Indemnitee and the Indemnifying Party or
      between such Indemnitee and one or more of the other Indemnitees, there
      may be a conflict of interest requiring separate counsel.  In
      the event that any of the circumstances referred to in clauses (1)-(3) of
      the pre­ceding sentence occurs, the fees and expenses of the separate
      counsel employed by such Indemnitee shall be borne in their entirety by
      the Indemnifying Party, and the Indemnifying Party shall not have the
      right to direct the defense of such Indemnitee.   In any
      event, the Indemnifying Party shall cooperate in the defense of any such
      claim or action against an Indemnitee, including, without limitation, in
      the effectuation of any settlement which such Indemnitee, in its
      reasonable discretion, deems appropriate, the costs of which settlement
      shall be borne in their entirety by the Indemnifying
  Party.

                

        

        

        
          	
                   
      

                	
                  D.

                	
                  Survival
      of Indemnities

                

        

        

        
          	
                   
      

                	
                  All
      indemnification, reimbursement and payment for expense provisions of this
      Agreement shall survive the termination of the Agreement.  Each
      indemnity under this Agreement shall also extend to the costs and expenses
      (including, but not limited to, attorneys’ fees and expenses), if any,
      incurred by any of the Indemnitees in enforcing such
      indemnity.

                

        

        

        

        
          	
                  XIV.

                	
                  LIMITATION OF
      LIABILITY OF RIDGE

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Limitation
      of Liability

                

        

        

        
          	
                   
      

                	
                  In
      no event shall either party be responsible to the other party, to any
      Customer, or to any other person for indirect, special, conse­quential
      or punitive damages arising from or relating, directly or indirectly, to
      this Agreement, regardless of whether such party has been advised of or
      might otherwise have anticipated the possibility of such damages, and
      Correspondent and Ridge each agree not to
      assist any claim for punitive damages against the
      other.  Ridge shall have no liability under this
      Agreement except to Correspondent.  Notwithstanding anything to
      the contrary in this Agreement, Ridge shall have no liability whatsoever
      for any losses, damages, costs or expenses which have not been caused by
      its own willful misconduct or gross
negligence.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Third-Party
      Service Providers

                

        

        

        
          	
                   
      

                	
                  Ridge
      may, in its sole and exclusive discretion, use third-party service
      companies to perform or assist it in the performance of selected services
      under this Agreement (including affiliates of Ridge).  In such
      event, the term “Ridge” shall be deemed to include such third-party
      service companies, and the limitations of liability in Section XIV.A. of
      this Agreement shall apply.

                

        

        

        
          	
                   
      

                	
                  C.

                	
                  Systems
      and Communications Failures; Errors in
  Instructions

                

        

        

        
          	
                   
      

                	
                  Ridge’s
      sole responsibilities with respect to any systems or communications
      failures, or any interruptions or delays in the services provided or to be
      provided by Ridge under this Agreement, shall be to use its best efforts
      to make such systems and services available as promptly as reasonably
      practicable.  Ridge shall have no responsibility whatsoever for
      the accuracy of, or any errors or omissions in, any databases or
      securities information and related market and statistical information
      displayed, carried or furnished by or through its equipment or
      systems.  Ridge shall have no responsibility whatsoever for any
      loss, expense or damage suffered by Correspondent, any Customer or any
      other person by reason of any interruption or delay in the transfer or
      receipt of funds or securities through the Federal Reserve Book Entry
      System, the Federal Funds Wire Transfer System or any similar system or
      from any clearing agent, issuer, broker, dealer or other third
      party.  Ridge shall have no responsibility whatsoever for any
      failures to execute or “DK’s” directly or indirectly resulting from
      incorrect, incomplete or untimely instructions or any other failure by
      Correspondent, or any other person, to provide proper
      instructions.

                

        

        

        

        
          	
                  XV.

                	
                  ADDITIONAL
      REPRESENTATIONS, WARRANTIES AND
COVENANTS

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Representations,
      Warranties and Covenants of
Correspondent

                

        

        

        
          	
                   
      

                	
                  Correspondent
      represents, warrants and covenants to Ridge as
  follows:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  Correspondent
      is, and during the term of this Agreement shall remain, duly
      registered and in good standing as a broker-dealer with the SEC, a member
      firm in good standing of the NASD, and a member in good standing of every
      national securities exchange and association of which it is a
      member.

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  Correspondent
      has all requisite authority in conformity with all Applicable Laws and
      Rules to enter into and perform this Agreement and has taken all necessary
      actions to authorize the execution of this Agreement and the
      perfor­mance of its obligations
hereunder.

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  Correspondent
      and each of the other Correspondent Parties is, and during the term of
      this Agreement shall remain, in compliance with the Applicable Laws and
      Rules in all material respects, including, but not limited to, the
      registration, qualification, capital, financial reporting, customer
      protection, disclosure and similar requirements of the SEC, NYSE, NASD,
      any other securities exchange or association of which it is a member, and
      every state to which jurisdiction it is
subject.

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  Correspondent
      has, and during the term of this Agreement shall maintain, net capital as
      required under the Applicable Laws and Rules and the amount set forth on
      Schedule B.  Ridge may, in its sole and exclusive discretion
      acting in good faith, increase that amount if it determines that a higher
      amount is necessary and advisable for its protection; provided that Ridge
      notifies Correspondent in writing of any such increase including Ridge’s
      rationale therefore and agrees to meet with Correspondent at
      Correspondent’s request to resolve any disputes regarding such
      increase.  Correspondent shall promptly notify Ridge in writing
      in the event that Correspondent’s net capital falls below the greater of
      the amount required under the Applicable Laws and Rules and the amount set
      forth on Schedule B.

                

        

        

        
          	
                   
      

                	
                  5.

                	
                  All
      orders and instructions transmitted to Ridge by Correspondent shall be
      valid and shall have been duly and properly
  authorized.

                

        

        

        
          	
                   
      

                	
                  6.

                	
                  There
      is no material action, suit, investigation or proceeding (formal or
      informal) pending or threatened in writing against or affecting (in a
      material manner) Correspondent or any of its executive officers, by or
      before any court or other tribunal, arbitrator, governmental agency,
      instrumentality or authority or any self-regulatory or clearing
      organization, , as to which Ridge has not been informed and provided
      with summaries thereof.

                

        

        

        
          	
                   
      

                	
                  7.

                	
                  The
      activities of Correspondent pursuant to this Agreement do not and during
      the term of this Agreement shall not give rise to a prohibited transaction
      within the meaning of Section 406 of ERISA, and all applicable Prohibited
      Transaction Class Exemptions shall have been complied
  with.

                

        

        

        
          	
                   
      

                	
                  8.

                	
                  Correspondent
      has, and during the term of this Agreement shall maintain, blanket bond
      insurance policies as required under NASD Rule 3020 or NYSE Rule 319, as
      applicable.

                

        

        

        
          	
                   
      

                	
                  9.

                	
                  On
      or before the execution of this Agreement, Correspondent shall have
      identified in writing to Ridge each of its lines of business and any
      securities in which Correspondent makes a market.  Correspondent
      shall provide Ridge with an update of any securities in which
      Correspondent makes a market promptly, in order to allow Ridge to update
      transaction confirms as necessary.

                

        

        

        
          	
                   
      

                	
                  10.

                	
                  Correspondent
      shall within a reasonable time, and if not prohibited by law or any
      confidentiality agreement, give Ridge reasonable prior written notice of
      any new lines of business that materially modify the mix of business that
      Correspondent is engaged in on the date of this
      Agreement.   Such notice shall be required notwithstanding
      that such new business or different business mix does not affect the
      services to be performed by Ridge under this
  Agreement.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Representations,
      Warranties and Covenants of
Ridge

                

        

        

        
          	
                   
      

                	
                  Ridge
      represents, warrants and covenants to Correspondent as
      follows:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  Ridge
      is and during the term of this Agreement shall remain duly registered and
      in good standing as a broker-dealer with the SEC, a member firm in good
      stan­ding of the NYSE and NASD, and a member in good stand­ing of
      every nation­al securities ex­change and association of which it
      is a mem­ber.

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  Ridge
      has all requisite authority in conformity with all Applicable Laws and
      Rules to enter into and perform this Agreement and has taken all necessary
      actions to authorize the execution of this Agreement and the
      perfor­mance of its obligations
hereunder.

                

        

        

        
          	
                                                  3. 

                	
                  Ridge
      has and during the term of this Agreement shall maintain net capital in an
      amount no less than that required by the Law and
  Rules.

                

        

        

        
          	
                                                  4.  

                	
                  Ridge
      and each of the other Ridge Parties is, and during the term of this
      Agreement shall remain, in compliance with the Applicable Laws and Rules
      in all material respects, including, but not limited to, the registration,
      qualification, capital, financial reporting, customer protection,
      disclosure and similar requirements of the SEC, NYSE, NASD, any other
      securities exchange or association of which it is a member, and every
      state to which jurisdiction it is
subject.

                

        

        

        

        
          	
                  XVI.

                	
                  NO PARTNERSHIP OR
      AGENCY; NO SPECIAL TREATMENT

                

        

        

        
          	
                   
      

                	
                  Neither
      this Agreement nor any activity hereunder shall create a general or
      limited partnership, association, joint venture, branch or agency
      relationship between Correspondent and Ridge.  Correspondent
      shall not hold itself out as an agent of Ridge or of any subsidiary or
      company controlled directly or indirectly by or affiliated with Ridge, nor
      shall it employ Ridge’s name in any manner that creates the impression
      that the relationship created or intended between them is anything other
      than that of clearing broker and introducing
      broker.  Correspondent shall not, without the prior written
      approval of Ridge, place any advertise­ment in any newspaper,
      publication, periodical or any other media if such advertisement in any
      manner makes reference to Ridge or to the execution and clearing
      arrangements contemplated by this Agreement.  Correspondent
      shall not, without the prior written approval of Ridge, furnish any link
      to the website(s) of Ridge or its affiliates.  Should
      Correspondent in any way hold itself out as, advertise or otherwise
      represent that it is the agent of Ridge, Ridge shall have the right, at
      its option, in addition to such other rights and remedies as it may have,
      to termi­nate this Agreement and/or to obtain injunctive relief or any
      other provision­al remedy in any New York federal or state court, and
      Correspondent shall be liable for any loss, liabili­ty, damage, claim,
      cost or expense (including, but not limited to, attorneys’ fees and
      expenses) sustained or incurred as a result of such representation of
      agency.  No such applica­tion for a provi­sional remedy,
      however, nor any act by either party in fur­therance of or in
      opposition to such applica­tion, shall constitute a relinquishment or
      waiver of any right to have the underlying dispute or con­troversy
      with respect to which such application is made settled by arbi­tration
      in accor­dance with Section XXI.M. of this
  Agreement.

                

        

        

        
          	
                   
      

                	
                  This
      Agreement is not intended, nor shall it be construed, to bestow upon
      Correspondent any special treatment regarding any other arrangements,
      agreements or understandings that exist or may hereafter exist between the
      parties or their affiliates.  Neither party shall have any
      obligation to deal with the other in any capacity other than as set forth
      in this Agreement.

                

        

        

        

        
          	
                  XVII.

                	
                  CONFIDENTIALITY;
      EMPLOYEES

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Confidentiality

                

        

        

        
          	
                   
      

                	
                  Correspondent
      and Ridge shall each keep confiden­tial any informa­tion
      acquired as a result of this Agreement regarding the business and affairs
      of the other, except such informa­tion as may be required to be
      disclosed by law or pursuant to subpoena, court order or in any regulatory
      or self-regulatory inquiry, investigation, proceed­ing or other matter
      (collectively, an “Inquiry”), or as may be required to be disclosed under
      this Agreement.  Except as otherwise prohibited by law,
      Correspondent and Ridge will each give the other prompt notice of the
      receipt of any Inquiry prior to such party’s disclosing information in
      connection therewith. Correspondent agrees not to disclose the terms of
      this Agreement to any person or entity except as may be required by law
      and except to regulatory bodies with appropriate jurisdiction and to
      authorized employees of Correspondent on a need-to-know
      basis.  Any other publication or dis­closure of the terms of
      this Agreement may be made only with the prior written consent of
      Ridge.  The confidentiality provi­sions of this Agreement
      shall survive the termina­tion of this
  Agreement.

                

        

        

        
          	
                   
      

                	
                  B.

                	
                  Employees

                

        

        

        
          	
                   
      

                	
                  Without
      a party’s prior written consent, the other party shall not solicit, or
      engage in negotiations with, any person who is, or within the preceding
      six (6) months has been, employed by such party or by any of its
      affiliates.

                

        

        

        

        
          	
                  XVIII.

                	
                  TERM AND
      TERMINATION

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Term

                

        

        

        
          	
                   
      

                	
                  The
      initial term of this Agreement shall commence upon the date hereof and
      shall continue until the date which is three (3) years thereafter (the
      “Initial Term”).  The end of the Initial Term shall be referred
      to as the “Initial Expiration
Date.”

                

        

        

        The term
of this Agreement shall continue for successive one-year periods after the
Initial Term and this Agreement shall be deemed to have been ex­tended for
such one-year periods as of the Initial Expiration Date and each anniversary of
the Initial Expiration Date, provided that written notice of termination is not
provided at least sixty (60) calendar days in advance of the commencement of any
such one-year period.

        

        
          	
                   
      

                	
                  B.

                	
                  Termination

                

        

        

        
          	
                   
      

                	
                  Notwithstanding
      the foregoing, either party may terminate this Agreement, in accordance
      with the procedures set forth below, whether prior to or after the Initial
      Expiration Date, upon the occurrence of an “Event of
      Default”.  For purposes hereof, an “Event of Default” shall
      occur if:

                

        

        

        
          	
                   
      

                	
                  1.

                	
                  the
      other party fails to perform or observe any material term, covenant or
      condition to be performed hereunder and such failure continues unremedied
      for a period of ten (10) business days after receipt of written notice
      from the non-defaulting party specifying the failure and demanding that
      the other party remedy its default;

                

        

        

        
          	
                   
      

                	
                  2.

                	
                  any
      material representation or warranty made by the other party hereunder
      proves false or misleading at any time in any mater­ial
      respect;

                

        

        

        
          	
                   
      

                	
                  3.

                	
                  the
      other party is enjoined, sus­pended, prohibited, or otherwise unable
      to engage in all or a material portion of its securities business as a
      result of any administrative or judicial proceeding or action by the SEC,
      any state securi­ties law administrator, any national securities
      exchange, or any self-regulatory organization or governmental body having
      juris­diction over such party;
or

                

        

        

        
          	
                   
      

                	
                  4.

                	
                  the
      other party is adjudicated bankrupt or insol­vent or a trustee or
      similar creditors’ representa­tive is ap­pointed by court order;
      or any property of the other party is sequestered by court order and such
      order remains in effect for more than thirty (30) calendar days; or a
      petition is filed by or against the other party either voluntarily or
      involun­tarily under any bankruptcy, reorganization, arrangement,
      insolvency, readjust­ment of debt, dissolution or liquidation law of
      any jurisdiction, whether now or here­after in effect, and is not
      dismissed within thirty (30) calendar days after such filing; or the other
      party makes an assignment for the benefit of its creditors, or admits in
      writ­ing its inability to pay its debts gener­ally as they become
      due, or consents to the appointment of a receiver, trustee or liquidator
      for itself or for any proper­ty held by
it.

                

        

        

        
          	
                   
      

                	
                  The
      defaulting party shall promptly advise the non-defaulting party in writing
      upon the occurrence of any event which constitutes, or with the passage of
      time would constitute, an Event of Default under this
      Agreement.  Upon the occurrence of an Event of Default under
      subsections (1) or (2) above, the non-defaulting party may, at its option,
      by notice in writing to the defaulting party, declare this Agreement
      terminated, and such termina­tion shall be effec­tive as of the
      date such notice is delivered or such later date as may be designated by
      the non-defaulting party in such notice.  Upon the
      occur­rence of an Event of Default under subsections (3) or (4) above,
      this Agreement shall immediately and automatically terminate without
      notice or any further action by the non-defaulting
  party.

                

        

        

        For
purposes of this Agreement, a termination for “Cause” shall mean a termination
by either party under this Section XVIII.B., as well as a termination by
Correspondent under Section XVIII.C. or a termination by Ridge under Section
XVI.

        

        
          	
                   
      

                	
                  C.

                	
                  Changes
      in the Applicable Laws and
Rules

                

        

        

        
          	
                   
      

                	
                  Notwithstanding
      any provision hereof, Ridge may, in its sole and exclusive discretion,
      amend the fees that it charges Correspondent if there is a material
      increase in its costs as a result of a change in the Applicable Laws and
      Rules.  Ridge agrees to give at least 60 days’ prior written
      notice to Correspondent of any such amendment.  Upon receipt of
      such written notice, Correspondent will have the right to terminate this
      Agreement during such sixty (60) day period.  No “Early
      Termination Fee” (as defined below) or “Material Change Termination Fee”
      (as defined below) shall be payable by Correspondent in the event
      Correspondent terminates this Agreement pursuant to this paragraph XVIII
      (C).

                

        

        

        
          	
                   
      

                	
                  D.

                	
                  Changes
      in Control or Business Mix

                

        

        

        
          	
                   
      

                	
                  Notwithstanding
      any provision hereof, this Agreement may be terminated by Ridge, upon
      reasonable written notice to Correspondent, if there is a change in
      control of Correspondent or if Correspondent engages in, or is subject to,
      a material merger, acquisition or business combination or there is a
      material change in the business mix of Correspondent, in each case without
      the prior written approval of Ridge.  Correspondent shall ,
      except as prohibited by law, provide reasonable notice to Ridge in writing
      upon the occurrence of any of the events described in this
      Section.  No “Early Termination Fee” (as defined below) or
      “Material Change Termination Fee” (as defined below) shall be payable by
      Correspondent in the event Ridge terminates this Agreement pursuant to
      this paragraph XVIII (D).

                

        

        

        
          	
                   
      

                	
                  E.

                	
                  Termination
      Fee

                

        

        

        
          	
                   
      

                	
                  In
      the event that this Agreement is terminated by Ridge for Cause or by
      Correspondent for any reason other than for Cause prior to the Initial
      Expiration Date, Correspondent shall pay to Ridge a termination fee (the
      “Early Termination Fee”) equal to the early termination fee set forth on
      Schedule B, provided however that, in the event that Correspondent
      terminates this Agreement in connection with a material change in its
      ownership structure or as a result of a material merger, acquisition or
      business combination, Correspondent shall instead pay the “Material Change
      Termination Fee” set forth in Schedule B.   In addition, in
      the event that this Agreement is terminated in the third year by Ridge for
      Cause or by Correspondent for any reason other than for Cause,
      Correspondent shall pay to Ridge an amount equal to the costs and expenses
      of Ridge incurred in connection with the conversion of Accounts pursuant
      to Section XVIII.F. of this Agreement, which amount shall in no event
      exceed $10,000.  Correspondent shall pay the Early Termination
      Fee and any applicable de-conversion charges, in immediately available
      U.S. funds, within ten (10) calendar days of receipt of a written
      statement from Ridge setting forth the calculation of the Early
      Termination Fee and any applicable de-conversion
  charges.

                

        

        

        In the event that Correspondent is the subject of the
issuance of a protective decree pursuant to the Securities Investor Protection
Act of 1970 (15 USC 78aaa-III), Ridge’s claim for a
payment of a termination fee under this Agreement shall be subordinate to claims
of Correspondent’s customers that have been approved by the trustee appointed by
the Securities Investor Protection Corporation pursuant to the issuance of such
protective decree.

        

        
          	
                   
      

                	
                  F.

                	
                  Conversion
      of Accounts

                

        

        

        
          	
                   
      

                	
                  Upon
      termination of this Agreement for any reason, it shall be Correspondent’s
      respon­si­bility to arrange for the conversion of the Accounts to
      another broker for clearing and/or execution
      services.  Correspondent shall promptly upon termination give
      Ridge written notice of the name of such other broker, the anticipated
      date on which it shall commence acting as clearing broker with respect to
      the Accounts, and the name of the individual(s) within that organization
      whom Ridge can contact to coordinate the
      conversion.  Correspondent shall also provide Ridge with
      Correspondent’s written undertaking, in a form acceptable to Ridge, that
      such other broker shall accept on conversion all Accounts then maintained
      by Ridge for such Correspondent.  If Correspondent fails to
      provide Ridge with the notice and undertaking referred to above, Ridge
      may, at the sole expense of Correspondent, give Customers such notice of
      termination of this Agreement as Ridge deems appropriate and make such
      other arrangements as Ridge deems appropriate for transfer or delivery of
      the Accounts.  Ridge will provide reasonable assistance to
      Correspondent in de-converting Accounts from the systems of Ridge. Except
      as otherwise provided in this Agreement, Correspondent shall promptly pay
      to Ridge reasonable expenses incurred by Ridge in processing the
      de-conversion.

                

        

        

        
          	
                   
      

                	
                  G.

                	
                  Survival

                

        

        

        
          	
                   
      

                	
                  Termination
      of this Agreement shall not affect any of the rights or liabilities of the
      parties relating to business transacted prior to the effective date of
      such termination.  From the date of termination until transfer
      or delivery of all Accounts, the rights and liabilities of the parties
      relating to any business transacted after such termination shall be
      governed by the same terms as those set forth in this
      Agreement.

                

        

        

        
          	
                   
      

                	
                  H.

                	
                  No
      Obligation to Release Correspondent
  Accounts

                

        

        

        
          	
                   
      

                	
                  Subject
      to Ridge’s obligation to refund cash or securities in the Settlement
      Account within 30 days after termination of this Agreement in accordance
      with Section X.B. above, Ridge shall not be required to release to
      Correspondent any securities or cash held by Ridge for Correspondent in
      one or more Accounts of Correspondent until all amounts owing to Ridge
      pursuant to the provisions of this Agreement are paid in full and
      Correspondent’s outstanding obligations (including any disputed
      obligations) to Ridge are determined and satisfied and any property of
      Ridge in the possession of Correspondent is returned to
    Ridge.

                

        

        

        

        
          	
                  XIX.

                	
                  ACTIONS
      AGAINST CUSTOMERS

                

        

        

        
          	
                   
      

                	
                  If
      Correspondent is unable or unwilling to pursue a claim against any
      Customer, Ridge shall have the right, but not the obligation, in its sole
      and exclusive discretion and at Correspondent’s expense, to institute and
      prosecute in either its own name or, at Ridge’s option, in the name of
      Correspondent, any action or proceeding against any Customer as to any
      controversy or claim arising (directly or indirectly) out of any
      transaction with Ridge, Correspondent or any Customer, and nothing
      contained in this Agreement shall be deemed or construed to impair or
      prejudice such right in any way whatsoever, nor shall the institution or
      prosecution of any such action or proceeding relieve Correspondent of any
      liability or responsibility which Correspondent would otherwise have under
      this Agreement.  Correspondent hereby assigns to Ridge such
      rights against Customers, and, upon the request of Ridge, agrees to
      execute such other and further instruments or documents, as are reasonably
      necessary or appropriate to carry out the intent of this
      Section.

                

        

        

        

        
          	
                  XX.

                	
                  NOTICES

                

        

        

        
          	
                   
      

                	
                  Except
      as otherwise expressly provided herein, any notice or instruction required
      or permitted to be given under this Agreement shall be in writing, shall
      be effective upon receipt, and shall be sent by hand or by certified mail,
      in either case, return receipt requested, to the parties at the following
      addresses, or at such other address as to which notice in writing shall
      have been given:

                

        

        

        If to Ridge:

        

        Ridge Clearing & Outsourcing
Solutions, Inc.

             55
Water Street

        New York, New
York  10041

        Fax No:  (212)
747-2079

        Attn:  General
Counsel

        

        If to Correspondent:

        

        Broadpoint Securities,
Inc.

        One Penn
Plaza

                                        42ND Floor

                                        New York, NY  10119

        Fax No.:   (212)
546-6091

        Attn:  President

        With a copy to:

        Broadpoint Securities Group, Inc.

        (Same address as above for Broadpoint Securities,
Inc.)

        Fax No:   (212)
273-7191

        Attn: General Counsel

        

        

        

        
          	
                  XXI.

                	
                  MISCELLANEOUS

                

        

        

        
          	
                   
      

                	
                  A.

                	
                  Exchange
      of Information

                

        

        

        
          	
                   
      

                	
                  Each
      party shall promptly supply the other with all appropriate information in
      its possession necessary or appropriate to enable the other party properly
      to perform its obligations under this
Agreement.

                

        

        

        B.            Exception
and Other Reports

        

        
          	
                   
      

                	
                  At
      the time of execution of this Agreement, and annually thereafter, Ridge
      will provide to Correspondent a list of exception and other reports it can
      make available to Correspondent, and the cost therefor, which may assist
      Correspondent in complying with regulatory requirements, supervising and
      monitoring the Accounts, and meeting its obligations under this
      Agreement.  Correspondent specifically acknowledges that such
      reports may not be inclusive of all of the exception and other reports
      necessary for Correspondent to comply with its regulatory
      obligations.

                

        

        

        
          	
                   
      

                	
                  At
      each time specified in the paragraph above, Correspondent shall promptly
      designate in writing to Ridge which, if any, of such reports Correspondent
      requires during the succeeding twelve months, and Ridge will thereafter
      provide such designated reports to Correspondent.  Within thirty
      (30) days of July 1 of each year, Ridge will give written notice to
      Correspondent’s chief executive and compliance officer identifying the
      list of reports offered to Correspondent and those reports that were
      actually requested by Correspondent.  A copy of the written
      notice will also be provided to Correspondent’s designated examining
      authority (or, if none, to its appropriate regulatory agency or
      authority).  It shall be the sole responsibility of
      Correspondent to determine whether additional reports are necessary for
      Correspondent to meet its regulatory obligations, and to obtain and use
      such reports.  Ridge will retain the data from which each of
      such reports was produced for at least six (6) years in a manner
      sufficient for Ridge to reproduce the
report.

                

        

        

        Notwithstanding
the foregoing, Correspondent shall itself maintain reports, records and
regulatory filings required to be kept by Correspondent by this
Agreement.

        

        
          	
                   
      

                	
                  C.

                	
                  [Intentionally
      Omitted]

                

        

        

        D.            Credit
Investigations

        

        Both
Ridge and Correspondent shall have the right to investigate, or to cause a third
party to investigate, the other party’s credit.

        

        E.            Tape
Recording

        

        Both
Ridge and Correspondent shall have the right to record telephone conversations
between themselves, and both Ridge and Correspondent waive any right to further
notice of any such recording.

        

        
          	
                   
      

                	
                  F.

                	
                  No
      Third-Party Beneficiaries

                

        

        

        
          	
                   
      

                	
                  Except
      as otherwise provided in Section XXI.K of this Agreement, this Agreement
      is between Ridge and Correspondent only, and is not intended to confer any
      benefits or rights upon any Customers or other persons not expressly made
      parties hereto (other than Ridge
Parties).

                

        

        

        
          	
                   
      

                	
                  G.

                	
                  Customer
      Agreements

                

        

        

        
          	
                   
      

                	
                  All
      customer agreements used by Correspondent shall be provided by Ridge or,
      alternatively, by Correspondent at its expense and pre-approved in writing
      by Ridge.  In the event that any customer agreement is prepared
      by Correspondent, Correspondent agrees to designate Ridge as a beneficiary
      of each of Customer’s representations, warranties, acknowledgments and
      covenants in the customer agreement to the same extent as if such
      representations, warranties, acknowledgments and covenants were made
      directly by Customer to Ridge, and that Ridge, in its own name and for its
      own benefit, shall be entitled to enforce such provisions and all other
      rights granted to Correspondent directly against
  Customer.

                

        

        

        
          	
                   
      

                	
                  H.

                	
                  Competition

                

        

        

        
          	
                   
      

                	
                  Nothing
      herein shall restrict or be deemed to restrict the right of Ridge or any
      affiliate of Ridge to compete with Correspondent in any or all aspects of
      Correspondent’s business.

                

        

        

        
          	
                   
      

                	
                  I.

                	
                  Remedies
      Cumulative

                

        

        

        
          	
                   
      

                	
                  The
      enumeration herein of specific remedies shall not be exclusive of any
      other remedies.  Any delay or failure by any party to this
      Agreement to exercise any right or remedy under this Agreement or under
      the Applicable Laws and Rules, or the single or partial exercise of any
      such right or remedy, shall not be construed to be a waiver of any such
      rights or remedies, or to limit the exercise of such rights or
      remedies.

                

        

        

        

        J.            Merger;
Amendment

        

        
          	
                   
      

                	
                  This
      Agreement represents the entire agreement between the parties and
      supersedes all other understandings and agreements between the parties
      with respect to the subject matter hereof, including without limitation
      the Fully Disclosed Clearing Agreement dated March 25, 2002, between
      Descap Securities, Inc. (now-known as Broadpoint Securities, Inc.) and
      Banc of America BrokerDealer Services, a division of Banc of America
      Securities LLC (predecessor-in-interest to Ridge).  This
      Agreement may not be amended except by a writing signed by the parties
      hereto.

                

        

        

        K.            Assignment

        

        
          	
                   
      

                	
                  This
      Agreement shall be binding upon and inure to the benefit of the respective
      successors and authorized assigns of the parties.  Except as
      prohibited by law or a confidentiality agreement, each party shall provide
      the other party with thirty (30) business days’ prior written notice of
      any proposed change in control. Neither party may assign this Agreement,
      or assign or delegate any of its rights or obliga­tions hereunder,
      without the prior written consent of the other party.  Each
      party may assign this Agreement or assign or delegate any of its rights or
      obligations hereunder to any affiliate of such party that succeeds to such
      party’s business without the other party’s consent if such affiliate
      executes and delivers to the other party an assumption agreement pursuant
      to which such affiliate assumes all such obligations of such party under
      this Agreement as have been delegated to it.  Each party
      consents and agrees to the assignment and transfer of the other party’s
      rights and obligations hereunder at any future time resulting from a
      merger, sale of all or a substantial portion of such party’s assets to any
      successor organization or assignee, including any registered broker and/or
      dealer that owns any of the assigning party’s capital stock, and such
      assignment shall be binding upon the undersigned, its successors, and
      assigns.

                

        

        

        
          	
                   
      

                	
                  L.

                	
                  Governing
      Law

                

        

        

        
          	
                   
      

                	
                  This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York, without regard to its conflict of laws
      principles.

                

        

        

        
          	
                   
      

                	
                  M.

                	
                  Arbitration

                

        

        

        
          	
                   
      

                	
                  Any
      dispute or controversy arising out of or relating in any way to this
      Agreement, including, without limitation, any dispute or controversy that
      might give rise directly or indirectly to a class action or putative class
      action, shall be submitted to arbitration before the NYSE (conducted
      pursuant to NYSE Rules), or, if Correspondent is not a
      NYSE  member, any other self-regulatory organization or exchange
      chosen by Ridge that has jurisdiction over the dispute or
      controversy.  Arbitration must be initiated by service upon the
      other party of a written demand for arbitration or notice of intention to
      arbitrate.  Judgment upon any award rendered by the
      arbitrator(s) shall be final, and may be entered in any court, state or
      federal, having jurisdiction.

                

        

        

        
          	
                   
      

                	
                  N.

                	
                  Customer
      Actions

                

        

        

        
          	
                   
      

                	
                  In
      the event of an arbitration or court action in which a Customer has
      asserted a claim against Ridge or an affiliate thereof, Correspondent
      agrees that (1) it shall submit to the juris­diction of any such forum
      in which such claim is brought, and (2) it shall accept service of process
      for any such claim.  Service of process in any such action or
      arbitration shall be sufficient if served on Correspondent by certified
      mail, return receipt requested, at the address provided for the delivery
      of notices under this Agreement.

                

        

        

        
          	
                   
      

                	
                  O.

                	
                  Temporary
      or Provisional Relief

                

        

        

        
          	
                   
      

                	
                  Notwithstanding
      Section XXI.M. of this Agreement, either party may, at any time prior to
      an initial arbitration hearing with respect to any dispute or
      controversy relating to or arising out of this Agreement, obtain upon
      application to the United States District Court for the Southern District
      of New York or the Supreme Court of the State of New York for the County
      of New York any temporary or provisional relief or remedy that would be
      available in an action based upon such dispute or controversy in the
      absence of an agreement to arbitrate.  The parties acknowledge
      and agree that it is their intention to have any such application
      for  provisional or temporary relief decided by the court to
      which it is made and that such application shall not be referred to or
      settled by arbitration.  Process in any such proceeding shall be
      sufficient if served by certified mail, return receipt requested, at the
      address provided above for the delivery of notices under this
      Agreement.  In this connection, each party expressly waives any
      defense (1) to personal jurisdiction, (2) to service of process in the
      manner set forth above, and (3) to venue.  No such application
      to a court for provisional or temporary relief, nor any act or conduct by
      either party in further­ance of or in opposition to such application,
      shall constitute a relinquishment or waiver of any right to have the
      underlying dispute or controversy settled by arbitration in accordance
      with Section XXI.M. of this
Agreement.

                

        

        

        
          	
                   
      

                	
                  P.

                	
                  Force
      Majeure

                

        

        

        
          	
                   
      

                	
                  Neither
      party shall be liable for losses caused directly or indirectly by
      government restrictions, exchange or market rulings, suspension of
      trading, labor strike, war, act of civil or military authority, sabotage,
      terrorism, epidemic, flood, earthquake, fire, or other natural
      disaster,  or any other conditions or occurrences beyond Ridge’s
      reasonable control.

                

        

        

        Q.            Headings

        

        
          	
                   
      

                	
                  The
      headings contained herein have been inserted for convenience and ease of
      reference only and shall not be construed to affect the meaning,
      construction or effect of this
Agreement.

                

        

        

        
          	
                   
      

                	
                  R.

                	
                  Enforceability

                

        

        

        
          	
                   
      

                	
                  If
      any provision or condition of this Agree­ment is held to be invalid or
      unenforceable by any court, arbitration tribunal or regulatory or
      self-regulatory agency or body, the validity of the remaining
      provi­sions and conditions shall not be affected thereby and this
      Agreement shall be carried out as if any such invalid or unenforceable
      provision or condition were not contained
  herein.

                

        

        

        

        

        

        

        
          	
                   
      

                	
                  S.

                	
                  Counterparts

                

        

        

        
          	
                   
      

                	
                  This
      Agreement may be executed in counter­parts, each of which shall
      constitute an original, and all of which together shall constitute one and
      the same agree­ment.

                

        

        

        

        

        IN
WITNESS WHEREOF the parties have executed this Agreement as of the date first
written above.

        

        
 

        RIDGE CLEARING & OUTSOURCING
SOLUTIONS, INC.

        
           

          
            
              	 By:	  /s/
      Joseph Barra	 	 
	 Name	 Joseph
      Barra	 	 
	 Title:	 President	 	 

            

          

        

        

        

         

        BROADPOINT SECURITIES,
INC.

         

        
          	 By:	  /s/
      Robert Fine	 	 
	 Name	Robert
Fine	 	 
	 Title:	 President

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