Document:

ex101.htm

    EXHIBIT 10.1

    
 

    FULLY
      DISCLOSED CLEARING AGREEMENT

    

    OF

    

    PERSHING
      LLC

    ([FINRA
      MEMBER])

    

    

    THIS
      AGREEMENT is made and entered into this 21st day of April, 2008 by and between
      Pershing LLC (“Pershing”), a limited liability company, and Broadpoint
      Securities, Inc. (“Broker”), a _New York corporation.

    

    1.0           APPROVAL

    

    This
      Agreement shall be subject to
      approval by the Financial Industry Regulatory Authority  (“FINRA”) and
      by any other self-regulatory organization vested with the authority to review
      or
      approve it.  Pershing shall submit this Agreement to the FINRA and
      Broker shall submit the Agreement to any other such organization from which
      Broker is required to obtain approval.  In the event of disapproval,
      the parties shall bargain in good faith to achieve the requisite
      approval.

    

    2.0           AGREEMENT

    

    From
      the date of this Agreement until
      the termination of this Agreement as provided in Paragraph 23 hereof, Pershing
      shall carry the proprietary accounts of Broker and the cash and margin accounts
      of the customers of Broker introduced by Broker to Pershing, and accepted by
      Pershing, and shall clear transactions on a fully disclosed basis for such
      accounts, in the manner and to the extent set forth in this
      Agreement.

    

    3.0           ALLOCATION
      OF RESPONSIBILITY

    

    3.1           Responsibilities
      of the Parties.

    

    Pursuant
      to NYSE Rule 382,
      responsibility for compliance with applicable laws, rules, and regulations
      of
      the Securities and Exchange Commission (“SEC”), the FINRA, the NYSE, and any
      other regulatory or self-regulatory agency or organization (collectively the
      “Rules”) shall be allocated between Pershing and Broker as set forth in this
      Agreement.  To the extent that a particular function is allocated to
      one party under this Agreement, the other party shall supply that party with
      information in its possession pertinent to the performance and supervision
      of
      that function.

    

    3.2           Relationship
      with Customers.

    

    Pershing
      shall provide services under
      this Agreement to Broker only to the extent explicitly required by specific
      provisions contained in this Agreement and shall not be responsible for any
      duties or obligations not specifically allocated to Pershing pursuant to this
      Agreement.  Broker shall enter into appropriate contractual
      arrangements with customers on its own behalf, and such agreements shall make
      Broker, and not Pershing, responsible to customers for the provision of
      services.  Broker shall not be deemed to be an agent of Pershing for
      any purpose, nor shall Pershing be deemed to have a fiduciary relationship
      with
      any of Broker’s customers.  Broker acknowledges that Pershing does not
      control the business or operations of Broker.

     

    
 

    
      
        
        

      

      
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    4.0           REPRESENTATIONS
      AND WARRANTIES

    

    4.1           Broker.  Broker
      represents and warrants that:

    

    4.1.1    Corporation
      Duly
      Organized.  Broker is a corporation duly organized, validly
      existing, and in good standing under the laws of the state of its
      incorporation.

    

    4.1.2        Registration.  Broker
      is duly registered and in good standing as a broker-dealer with the
      SEC.

    

    4.1.3        Authority
      to Enter Agreement.  Broker has all requisite authority, whether
      arising under applicable federal or state law or the rules and regulations
      of
      any regulatory or self-regulatory organization to which Broker is subject,
      to
      enter into this Agreement and to retain the services of Pershing in accordance
      with the terms of this Agreement.

    

    4.1.4        Material
      Compliance with Rules and Regulations.  Broker and, to the best of
      its knowledge, each of its executive officers, directors, general securities
      principals in charge of one of Broker’s principal divisions, and Chief Financial
      and Operation Principals (the aforementioned individuals collectively referred
      to as the “Broker Executives”) is in material compliance with, and during the
      term of this Agreement shall remain in material compliance with, the
      registration, qualification, capital, financial reporting, customer protection,
      and other requirements of every self-regulatory organization of which Broker
      is
      a member, of the SEC, and of every state to the extent that Broker or any of
      the
      Broker Executives is subject to the jurisdiction of that state.

    

    4.1.5        No
      Pending Action, Suit, Investigation, or Inquiry.  Broker has
      disclosed to Pershing every material action, suit, investigation, or proceeding
      pending against Broker, any of its affiliates, or any of the Broker Executives
      ,
      by or before any court or other tribunal, any arbitrator, any governmental
      authority, or any self-regulatory organization of which any of them is a
      member.  Broker shall notify Pershing promptly of the initiation of
      any action, suit, investigation, inquiry, or proceeding that will have a
      material adverse impact on the capital of Broker, unless such notification
      is
      prohibited by law.

    

    4.1.6        Broker
      Responsibility. Broker shall be responsible for all internal operations
      related to its business including without limitation (i) all accounting,
      bookkeeping, record-keeping, cashiering, commodity transactions, or any other
      transactions not involving securities; or any matter not contemplated by the
      Agreement; (ii) preparation of Broker’s payroll records, financial statements,
      or any analysis thereof; (iii) preparation or issuance of checks in payment
      of
      Broker’s expenses, other than expenses incurred by Pershing on behalf of Broker
      pursuant to this Agreement; and (iv) payment of commissions to Broker’s sales
      personnel.

    

    4.2           Pershing.  Pershing
      represents and warrants that:

    

    4.2.1        Duly
      Organized.  Pershing is a Limited Liability Company duly
      organized, validly existing, and in good standing under the laws of the state
      of
      Delaware.

    

    4.2.2        Registration.  Pershing
      is duly registered and in good standing as a broker-dealer with the SEC and
      is a
      member firm in good standing of FINRA.

    

    4.2.3        Authority
      to Enter Agreement.  Pershing has all requisite authority, whether
      arising under applicable federal or state law, or the rules and regulations
      of
      any regulatory or self-regulatory organization to which Pershing is subject,
      to
      enter into this Agreement and to provide services in accordance with the terms
      of this Agreement.

     

    
 

    
      
        
        

      

      
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    4.2.4        Compliance
      with Registration. Pershing and , to the best of its knowledge, each of its
      employees, executive officers, directors, general securities principals in
      charge of one of Pershing’s principal divisions, and Chief Financial and
      Operation Principals (the “Pershing Executives” and each of its employees) is in
      material compliance with, and during the term of this Agreement shall remain
      in
      material compliance with the registration, qualification, capital, financial
      reporting, customer protection, and other requirements of every self-regulatory
      organization of which Pershing is a member, of the Securities and Exchange
      Commission (“SEC”), and every state.

    

    5.0           ESTABLISHING
      AND ACCEPTING NEW ACCOUNTS

    

    5.1           Acceptance
      of New Accounts.  Broker shall be responsible for opening and
      approving new accounts in compliance with the Rules.

    

    5.1.1        Pershing
      reserves the right to reject any account that the Broker may forward to Pershing
      as a potential new account for commercially reasonable reasons, including but
      not limited to, credit and reputational considerations.  Pershing also
      reserves the right to terminate any account previously accepted by it as a
      new
      account for commercially reasonable reasons, including but not limited to,
      credit and reputational considerations.

    

    5.2           Maintenance
      of Account Information.  Pershing may rely without inquiry on the
      validity of all customer information furnished to it by
      Broker.  Possession of any such documents or information, however
      provided, concerning Broker’s customers does not create a duty on the part of
      Pershing to review or understand the content of those documents.

    

    5.3           Pershing
      Operations Manual.  Broker acknowledges receipt and familiarity
      with the Pershing “Quick Reference Guide” and “Bulletins” and agrees to
      familiarize itself with any modifications or supplements to such documents
      that
      may be issued upon reasonable prior notice to Broker from time to
      time.  Broker further agrees to abide by Pershing’s “Quick Reference
      Guide” and “Bulletins” and any modifications or supplements to such documents
      that may be issued upon reasonable prior notice to Broker from time to time
      and
      delivered or made available to Broker.

    

    6.0           SUPERVISION
      OF ORDERS AND ACCOUNTS

    

    6.1           Responsibility
      for Compliance.  Broker shall be solely responsible for compliance
      with suitability, “Know Your Customer” rules, and other requirements of federal
      and state law and regulatory and self-regulatory rules and regulations governing
      transactions and accounts.  Possession by Pershing of surveillance
      records, exception reports, or other similar data shall not obligate Pershing
      to
      review or be aware of their contents.  Pershing shall not be required
      to make any investigation into the facts surrounding any transaction that it
      may
      execute or clear for Broker or any customer of Broker.

    

    6.2           Compliance
      Procedures.  Broker agrees to supervise compliance with the
      Rules.  Broker shall review transactions and accounts to assure
      compliance with prohibitions against manipulative practices, insider trading,
      market timing and late trading of mutual fund shares and other requirements
      of
      federal and state law and applicable regulatory and self-regulatory rules and
      regulations to which Broker or its customer are subject.  Without
      limiting the above, Broker shall be responsible for compliance with the
      supervisory requirements in Section 15(b)(4) of the Securities Exchange Act
      of
      1934, as amended, FINRA Rule 3010, NYSE Rules 342, 351 and 431, and similar
      rules adopted by any other regulatory or self-regulatory agency or organization,
      to the extent applicable.

    

    6.3           Knowledge
      of Customer’s Financial Resources and Investment
      Objectives.  Broker shall comply with Rule 405(1) of the FINRA or
      comparable requirements of similar rules of any other regulatory or
      self-regulatory organization to which Broker is subject.  Broker shall
      obtain all facts it deems necessary in order for it to perform its
      responsibilities under applicable laws and rules relating to each customer,
      each
      cash and margin account, each order, and each person holding a power of attorney
      over any account, in order to assess the suitability of transactions (when
      required by applicable rules), the authenticity of orders, signatures,
      endorsements, certificates, or other documentation, and the frequency of
      trading.  Broker warrants that, to the best of its knowledge, Broker
      will not open or maintain accounts for persons who are minors or who are
      otherwise legally incompetent and that Broker will comply with FINRA Rule 407
      and other laws, rules, or regulations that govern the manner and circumstances
      in which accounts may be opened or transactions authorized.

     

    
 

    
      
        
        

      

      
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    6.4           Furnishing
      of Investment Advice.  Broker shall be solely responsible for any
      recommendation or advice it may offer to its customers.

    

    6.5           Discretionary
      Accounts.  Broker shall be solely responsible for obtaining
      customer approval for and supervising discretionary accounts.

    

    6.6           Obligations
      Regarding Certain Disclosures.  Unless otherwise agreed between
      the parties, Broker shall make any disclosures and obtain any agreements from
      its customers required by applicable law or regulation, including, without
      limitation, any disclosures or agreements required for margin, listed options,
      IPO’s, mutual funds, penny stocks, derivative securities, account transfers or
      conversions.  The cost of making such disclosures or obtaining such
      agreements shall be borne by Broker.

    

    7.0           EXTENSION
      OF CREDIT

    

    7.1           Presumption
      of Cash Account. Pershing may, but is not required to, permit customers of
      Broker to purchase securities on margin, but all transactions for a
      customer will be deemed to be either RVP/DVP or cash transactions, and
      payment for those transactions will be required in the manner applicable to
      either RVP/DVP or cash transactions, unless, on or prior to settlement,
      Broker has furnished Pershing with an executed margin agreement and consent
      to loan of securities.

    

    7.2           Margin
      Requirements. Margin accounts introduced by Broker shall be subject to
      Pershing's margin requirements as in effect from time to time. Pershing
      reserves the right to refuse to accept any transaction in a margin account
      without the actual receipt of the necessary margin and to impose a
      higher margin requirement for a particular account when, in Pershing's
      commercially reasonable discretion, the past history or nature of the
      account or other factors or the securities held in it warrant such action.
      In
      all instances, Broker may require higher margin than imposed by Pershing for
      any
      particular account, group of accounts, or all accounts introduced by Broker
      to Pershing. In any case where Broker requests Pershing to extend
      credit upon control or restricted securities, pursuant to Rule 144under the
      Securities Act of 1933, as amended ("Rule 144"), or otherwise; Broker shall
      submit to Pershing such documentation, agreements and information as shall
      be reasonably required by Pershing to decide to extend such credit. Any
      extension of credit so approved shall be subject to Pershing's credit
      policies as shall be in effect from time to time.

    

    7.3           Margin
      Maintenance and Compliance with Regulation T and SEC Rule
      15c3-3(m)

    

    7.3.1        Initial
      Margin. Broker shall be responsible for the initial margin requirement for
      any transaction until such initial margin has been received by Pershing in
      acceptable form.

    

    7.3.2        Margin
      Calls. After the initial margin for a transaction has been received,
      subsequent margin calls may be made by Pershing at its discretion. Pershing
      shall calculate the maintenance requirement and notify Broker of any
      amounts due. Broker shall be responsible for forwarding the margin call to
      its customer and obtaining the amount due directly from Broker's customer.
      If Broker fails to take the appropriate action, Pershing reserves the right
      to collect the amount due directly from Broker's customer. Broker agrees to
      cooperate with Pershing in complying with and obtaining margin in response
      to
      such calls.

     

     

    
 

    
      
        
        

      

      
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    7.3.3        Actions
      upon Failure to Meet Margin Calls or Deliver Securities. In the event that
      satisfactory margin is not provided within the time specified by Pershing,
      or securities sold are not delivered as required, Pershing may take such
      actions as Pershing deems appropriate, including, but not limited
      to, entering orders to buy-in or sell-out. Broker shall cooperate with
      Pershing by entering orders to buy-in or sell-out securities. Compliance
      with a request to withhold action shall not be deemed a waiver by Pershing
      of any of its rights under this Agreement.

    

    
      	
              7.4  

            	
              Charging
                of Interest and Disclosures Pursuant to Rule 10b-16 and NASD Rule
                2341. Interest charged by Pershing to Broker's clients with
                respect to debit balances in customers' accounts shall
                be determined in accordance with Schedule A attached to this
                Agreement and in accordance with Pershing’s standard disclosure under NYSE
                Rule 382. Broker shall send each margin customer a written Margin
                Disclosure Statement and other written disclosures, in a form acceptable
                to Pershing, at the time of the opening of a margin account as
                required by SEC Rule 10b-16 and NASD Rule 2341. If not already
                delivered to each margin customer by Pershing in connection with
                the
                delivery of the written new account Disclosure Statement in
                accordance with NYSE Rule 382, Broker agrees to deliver a written
                disclosure statement to its customer as required by SEC Rule
                10b-16. 7.5 Unsecured Debits or Unsecured Short Positions. Pershing
                shall charge against the accounts of Broker an amount equal to the
                value of any unsecured debit or short position (on a "mark to
                market" basis) in a customer account if that position has not been
                promptly resolved by payment or delivery. Any remaining debit may be
                charged against Broker pursuant to Paragraph 20 of this
                Agreement.

            

    

    

    
      	
              7.5  

            	
              Unsecured
                Debits or Unsecured Short Positions. Pershing shall charge against the
                accounts of Broker an amount equal to the value of any unsecured
                debit or short position (on a "mark to market" basis) in a customer
                account if that position has not been promptly resolved by payment
                or
                delivery. Any remaining debit may be charged against Broker pursuant
                to Paragraph 20 of this Agreement.

            

    

     

    7.6           EXTENSION
      OF NONPURPOSE CREDIT

    

    
      	
              7.6.1

            	
              Nonpurpose
                Credit.  Pershing may, but is not required to, extend and
                maintain nonpurpose credit to customers of Broker not for purposes
                of
                purchasing, carrying, or trading in securities, but all extensions
                of
                credit to a customer will be deemed to be purpose credit subject
                to
                Regulation T unless, prior to extending the credit, Broker has furnished
                Pershing with an executed Federal Reserve Form
                T-4.

            

    

    

    
      	
              7.6.2

            	
              Nonpurpose
                Lending Requirements.  Nonpurpose credit extended by
                Pershing shall be subject to nonpurpose lending requirements as
                established and modified by Pershing from time to
                time.  Pershing reserves the right to refuse to extend
                nonpurpose credit without the actual receipt of the necessary underlying
                collateral and to impose a higher underlying collateral value requirement
                for a particular account when, in Pershing's discretion, the past
                history
                or nature of the account or other factors or the securities held
                in it
                warrant such action.  In all instances, Broker may require a
                lower loan advance rate to collateral value than imposed by Pershing
                for
                any particular account, group of accounts, or all accounts introduced
                by
                Broker to Pershing.  In any case where Broker requests Pershing
                to extend nonpurpose credit upon control or restricted securities,
                pursuant to Rule 144 under the Securities Act of 1933, as amended,
                or
                otherwise; Broker shall submit to Pershing such documentation, agreements
                and information as shall be reasonably required by Pershing to decide
                to
                extend such credit.  Any extension of nonpurpose credit so
                approved shall be subject to Pershing’s credit policies as shall be in
                effect from time to time.

            

    

     

     

    
 

    
      
        
        

      

      
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    7.6.3       Managed/Advisory
      Accounts as Underlying Collateral

    

    
      	
              7.6.3.1

            	
              Managed/Advisory
                Account Eligible to Support Extension of Non Purpose
                Credit

            

    

    Pershing
      may, but is not required to, allow accounts meeting the following criteria
      to
      participate in the non-purpose credit program and to be pledged by customers
      of
      Broker to support the extension of non-purpose credit:

    

    a)
      Separately managed accounts managed
      by a third party money manager or managers,

    

    b)
      Mutual fund wrap programs where the
      Broker acts as Corporate Registered Investment Advisor (“RIA”)

    

    c)
      Advisory programs where Broker acts
      as Corporate RIA

    

    d)
      Advisory programs where a Turnkey
      Asset Management Provider (TAMP) acts as Corporate RIA,

    

    e)
      Advisory programs where an
      individually registered RIA manages clients’ assets on a fully discretionary
      basis.

    

    f)
      Advisory programs where
      Representatives of Broker have the ability to adjust the actual client
      investments, on a discretionary basis, within a set of parameters 

           set
      forth, approved and
      overseen by the Corporate RIA (the Corporate RIA maintains the ADV agreement
      with the end customer).

    

    7.6.3.2    Utilization
      of Managed/Advisory Accounts as Underlying Collateral. Broker will be
      responsible for ensuring that managed/advisory account(s) pledged to support
      the
      extension of non purpose credit continue to meet the requirements of a
      managed/advisory account at all times. Accounts listed on the Federal Reserve
      Form T4 will be recognized by Pershing as separately managed/advisory accounts.
      In the event that a managed/advisory account(s) pledged to support the extension
      of  non purpose credit cease to be classified as a managed/advisory
      account(s), the Broker agrees to notify Pershing immediately and take the
      necessary actions to ensure compliance with Regulation T.  Upon such
      notification, Pershing may, but is not required to maintain the pledge
      relationship.

    

    In
      the
      event the Broker fails to take necessary actions to ensure compliance with
      Regulation T, Pershing may remove the managed account from the non-purpose
      credit program and may require immediate full payment of the loan.  In
      the event that the removal from the program or the requirement of immediate
      full
      payment of the loan results in a margin call, the Broker shall be responsible
      for taking the necessary actions to satisfy the margin call as prescribed in
      the
      Agreement.

    

    
      	
              7.6.4

            	
              Underlying
                Collateral Maintenance and Compliance with Regulation T and SEC Rule
                15c3-3(m).

            

    

     

     

    
      
        
        

      

      
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              7.6.4.1

            	
              Initial
                Underlying Collateral.  Broker shall be responsible for the
                initial underlying collateral requirement for any extension of nonpurpose
                credit until such initial underlying collateral has been received
                by
                Pershing in acceptable form.

            

    

    

    
      	
              7.6.4.2

            	
              Underlying
                Collateral Calls.  After the initial underlying collateral
                for an extension of nonpurpose credit has been received, subsequent
                underlying collateral calls may be made by Pershing at its
                discretion.  Pershing shall calculate the maintenance
                requirement and notify Broker of any amounts due.  Broker shall
                be responsible for issuing the underlying collateral call to its
                customer
                and obtaining the amount due directly from Broker's
                customer.  If Broker fails to take the appropriate action,
                Pershing reserves the right to collect the amount due directly from
                Broker's customer.  Broker agrees to cooperate with Pershing in
                complying with and obtaining underlying collateral in response to
                such
                calls.

            

    

    

    
      	
              7.6.4.3

            	
              Actions
                Upon Failure to Meet Underlying Collateral Calls or Deliver
                Securities.  In the event that satisfactory underlying
                collateral is not provided within the time specified by Pershing,
                or
                securities sold are not delivered as required, Pershing may take
                such
                actions as Pershing deems appropriate, including, but not limited
                to,
                entering orders to buy in or sell-out.  Broker shall cooperate
                with Pershing by entering orders to buy-in or sell-out
                securities.  Compliance with a request to withhold action shall
                not be deemed a waiver by Pershing of any of its rights under the
                Agreement.

            

    

    

    
      	
              7.6.5

            	
              Charging
                of Interest and Disclosures Pursuant to Rule
                10b-16.  Interest charged with respect to the extension of
                nonpurpose credit shall be determined in accordance with Schedule
                A
                attached to this Agreement.  Broker shall send each customer a
                written disclosure statement, in a form acceptable to Pershing, at
                the
                time of the extension of nonpurpose credit as required by SEC Rule
                10b-16.

            

    

    

    7.6.6           
      Unsecured Debits.  Pershing shall charge against the accounts
      of Broker an amount equal to the value of any unsecured debit (on a “mark to
      market” basis) in a customer account if that position has not been promptly
      resolved by payment or delivery.  Any remaining debit may be charged
      against Broker pursuant to Pershing’s right to offset in the
      Agreement.

    

    7.6.7           
      Equal Credit Opportunity Act (“ECOA”).  In all cases, the
      introducing Broker/Dealer shall abide by all Federal Law rules & regulations
      as it pertains to the (“ECOA”). More specifically, this law is designed to
      prohibit discrimination in the extension or terms of credit to creditworthy
      applicants on any one of the following “prohibited bases”: race, color,
      religion, national origin, sex, marital status, or age (provided that the
      applicant has the capacity to contract) or on the basis that all or part of
      an
      applicant’s income is derived from a public assistance program or the fact that
      the applicant has, in good faith, exercised any “rights” under the Consumer
      Credit Protection Act, of which (“ECOA”) is a part. Under (“ECOA”) and
      Regulation B, the introducing Broker/Dealer may not discriminate against any
      applicant on a prohibited basis “regarding any aspect of a credit
      transaction”.

    

    7.6.8           
      Deduction or Withholding for Tax.  All payments made by a
      borrower, who participates in Pershing’s non-purpose credit program, shall be
      made without any deduction or withholding for or on account of any tax imposed
      by any laws, other than US state or federal laws, applicable to any payment
      under this agreement (“Local Laws”).  The undersigned shall indemnify
      Pershing against any tax levied or imposed upon Pershing by Local Laws in
      respect of any payment under this agreement in the event such tax is not
      otherwise paid.

    

     

    
 

    
      
        
        

      

      
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    8.0           MAINTENANCE
      OF BOOKS AND RECORDS

    

    8.1           Stock
      Records.  Pershing shall maintain stock records and other
      prescribed books and records of all transactions executed or cleared through
      it
      on a basis consistent with generally accepted practices in the securities
      industry and with applicable laws and rules governing clearing
      brokers.  Pershing shall maintain, and make available to Broker, such
      books and records after termination of this Agreement for so long as Pershing
      is
      required to maintain such books and records as required by and in accordance
      with applicable law.  To the extent not required by law, Pershing will
      make such books and records available to Broker after the termination of this
      Agreement upon Broker’s reasonable request so long as Pershing has retained such
      books and records set forth above. Broker shall reimburse Pershing for its
      costs
      and expenses in retrieving such books and records.

    

    8.2           Regulatory
      Reports and Records.  Broker shall prepare, submit, and maintain
      copies of all reports, records, and regulatory filings required of Broker by
      any
      entity that regulates it, including, but not limited to, copies of all account
      agreements and similar documentation obtained pursuant to Paragraph 5 of this
      Agreement and any reports and records required to be made or kept under the
      Currency and Foreign Transactions Reporting Act of 1970, (the “Bank Secrecy
      Act”), and any rules and regulations promulgated pursuant
      thereto.   Pershing will promptly provide Broker with any
      information regarding Broker’s accounts in its possession necessary to enable
      Broker to prepare any such reports.

    

    8.3           ANTI-MONEY
      LAUNDERING, OFFICE OF FOREIGN ASSETS CONTROL, AND ANTI-TERRORIST FINANCING
      OBLIGATIONS

    

    

    8.3.1           Broker’s
      Responsibilities:

     

    a.    Anti-Money
      Laundering Obligations.  Broker hereby agrees and acknowledges
      that it is obligated to and hereby represents and warrants that it now does
      and
      will continue to comply with anti-money laundering laws and regulations,
      including any future obligations that may be imposed on Broker by laws or
      regulations, to know its customers, their source and use of funds, and to
      monitor for and identify suspicious activity.

     

    b.           Anti-Money
      Laundering Program.  Broker represents and warrants that it has
      established and maintains an anti-money laundering program, consisting of,
      at a
      minimum, written internal policies, procedures and controls including a means
      for monitoring and identifying suspicious activity, the designation of an
      anti-money laundering compliance officer (whose identity shall be made known
      to
      Pershing and to the FINRA), an ongoing employee training program, an independent
      audit function to test such programs annually, and any additional requirements
      set forth in the rules of any self-regulatory organization of which Broker
      is a
      member.  Broker will allow Pershing access to such information as
      Pershing deems necessary in order for Pershing to test Broker’s adherence to
      Broker’s anti-money laundering program.  To the extent the testing
      would be conducted at Broker’s office, Pershing needs to provide Broker with
      reasonable prior notice (at least three business days) and the testing needs
      to
      be done on a business day and during regular business hours.

     

    8.3.2           Broker
      to File CTRs and Provide Copies to Pershing.  Broker is
      responsible for filing currency transaction reports (“CTRs”) and will provide a
      copy of all such reports to Pershing at the same time as they are filed in
      accordance with applicable regulations.

     

    a.           Suspicious
      Activity Reports.  Broker shall be responsible for reviewing for
      suspicious activities and filing suspicious activity reports on Form SAR-SF
      and
      shall coordinate such filing with Pershing.  Broker shall, as soon as
      practical after identifying a suspicious activity and in any event prior to
      filing a suspicious activity report on SAR-SF, notify Pershing’s Anti-Money
      Laundering Compliance Officer and shall communicate with Pershing about the
      transaction for purposes of sharing information about the transaction and
      determining whether Broker or Pershing shall file the SAR-SF, unless such
      sharing of information is prohibited by law.  Broker will provide
      Pershing with copies of all SAR-SFs and other communications it files with
      respect to accounts held at Pershing, unless prohibited by law.  In
      addition, Broker shall promptly notify Pershing regarding any account activity
      Broker reasonably believes to be suspicious, not legitimate, not having a
      reasonably apparent explanation, or could support the filing of a Form
      SAR-SF.

     

     

    
      
        
        

      

      
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    b.           Other
      Transaction Reports.  Prior to filing any report with the Treasury
      Department, the IRS, the U.S. Customs Service or any regulatory body or
      organization relating to the reporting of currency transactions or the transfer
      of currency or monetary instruments into or outside of the United States,
      including, but not limited to, CTRs, CMIRs and SAR-SFs, Broker shall notify
      Pershing’s Anti-Money Laundering Compliance Officer (unless such notification is
      prohibited by law) and cooperate with Pershing as Pershing may deem
      appropriate.  Broker will provide Pershing with copies of all reports
      and other communications with respect to accounts held at Pershing that Broker
      files with the Treasury Department, the IRS, the U.S. Customs Service, or any
      regulatory body or organization relating to the reporting of currency
      transactions, the transfer of currency or monetary instruments into or outside
      of the United States, or in regard to any suspicious activity, including, but
      not limited to, CTRs, CMIRs and SAR-SFs, unless the provision of such reports
      or
      communications is prohibited by law.

     

    8.3.3.          Reports
      by Pershing.  Pershing has the obligation and reserves the right
      to make and file such suspicious activity or other reports as listed in
      Paragraph 8.3.2 when it deems it necessary or appropriate; and Broker recognizes
      that when Pershing does so, Pershing does not thereby assume any responsibility
      for making and filing reports on behalf of Broker or relieve Broker of its
      own
      responsibility for making and filing reports as necessary under U.S. or other
      laws and regulations.  Pershing will provide Broker a copy of any such
      report that relates to an account of the Broker or a customer of the Broker,
      unless prohibited by law from doing so.

     

    8.3.4.          Restrictions
      and Conditions on Certain Accounts.  Broker hereby agrees and
      acknowledges that it is obligated to comply with restrictions and conditions
      on
      opening and accepting certain accounts, including but not limited to, the
      following:

     

    a.           Know
      Your Customer and Government List Obligations, Including OFAC.  At
      the time of the opening of any new account, Broker must obtain sufficient
      information (but no less than the minimum required under Section 326 of the
      USA
      PATRIOT Act) from its customer in order to reasonably identify and verify the
      identity of the client and the source of the client’s funds.  Broker
      also must satisfy itself that opening the account would not violate the
      provisions of various Executive Orders and regulations administered by the
      U.S.
      Treasury Department’s Office of Foreign Assets Control (“OFAC”) or be subject to
      other restriction based on such relevant government lists as may be published
      from time to time.  Broker will promptly inform Pershing of the
      existence of any account subject to an OFAC or government list
      restriction.  Pershing uses interdiction software and will provide
      such relevant information as may from time to time be available to assist Broker
      in detecting possible OFAC and government list violations.

     

    b.           Non-Resident
      Alien Accounts Carried Directly or Through an Investment
      Advisor.  For any account opened for a non-resident alien, Broker
      shall record the customer’s passport number and obtain a copy of the government
      document used to verify the individual’s identity at the time the account is
      opened.  Broker shall also obtain a copy of a passport or other
      governmental identification for any of the following: the grantor/settlor of
      a
      foreign trust; and any beneficial owner of an offshore corporate account if:
      (1)
      the account is a personal holding company or private investment company; or
      (2)
      the beneficial owner of the entity which maintains the account holds more than
      a
      10% interest in the entity.  Broker shall not open any introduced
      account for a personal holding company or private investment company if one
      or
      more beneficial owners are U.S. persons.  With respect to those
      accounts involving registered investment advisers, Broker shall obtain, record
      and verify information as outlined above about the adviser’s customer, including
      ascertaining the identity of each beneficial owner, of any such account prior
      to
      opening the account unless Broker has ascertained that the investment adviser
      meets the exception set forth in SEC No Action letter dated February 13, 2004
      relating to reliance on investment advisers or other SEC guidance
      applies.

     

     

     

    
      
        
        

      

      
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    c.           Restrictions
      on Numbered Accounts.  Broker will not establish or maintain
      specially coded or numbered accounts.

     

    d.          Source
      and Use of Funds.  Broker will use reasonable efforts to ascertain
      that the source of a customer’s funds are purportedly from customer, the
      customer is not engaged in unlawful activities, the assets being invested have
      been legitimately obtained, and any disbursements to a customer or third party
      are for legitimate purposes.

     

    e.           Transaction
      Reports and Transaction Monitoring Systems.  In order to detect
      suspicious activity, Broker shall utilize the transaction reports and
      transaction monitoring systems provided by Pershing or shall otherwise perform
      its own transaction monitoring in order to detect suspicious
      activity.

     

    f.           CIP.  In
      order to induce reasonable reliance by Pershing on Broker with respect to
      Broker’s customer identification program (“CIP”), Broker represents and
      warrants: (1) it has a written CIP consistent with Section 326 of the USA
      PATRIOT Act and the rules thereunder; (2) it is subject to a rule
      implementing 31 U.S.C. 5318(h); (3) it is regulated by a Federal functional
      regulator as that term is defined under 31.C.F.R. § 103.120(a)(2); and
      (4) it will certify annually to Pershing that it has implemented an
      anti-money laundering program and will perform the requirements set forth in
      Broker’s written CIP.

     

    g.          Shell
      Bank Accounts, Foreign Bank Accounts, and Private Banking
      Accounts.  Broker, working in conjunction with Pershing, shall
      implement the provisions of sections 312, 313, and 319 of the USA PATRIOT Act
      as
      set forth in Informational Bulletins disseminated by Pershing from time to
      time.  Copies of all certifications obtained by Broker shall be
      forwarded to Pershing.

     

    8.3.5           Pershing’s
      Responsibilities:

     

    a.           Anti-Money
      Laundering Obligations.  Pershing hereby agrees and acknowledges
      that it is obligated to comply with anti-money laundering laws and regulations,
      including any future obligations that may be imposed on Pershing, and that
      it is
      responsible to combat money laundering and terrorist
      financing.  Pershing shall (1) make available to Broker such
      information as it may from time to time recognize as potentially useful through
      use of Pershing’s various interdiction monitoring tools to assist Broker in
      detecting possible money laundering and terrorist financing schemes, and (2)
      conduct various manual and systematic screenings to assist Broker in order
      to
      detect suspicious activity and OFAC and other government list
      violations.  The actual systems and tools used for these purposes may
      vary from time to time, at Pershing’s discretion.

     

    b.          Anti-Money
      Laundering Program.  Pershing has established and shall continue
      to maintain an anti-money laundering compliance program in accordance with
      § 352 of the USA PATRIOT Act as well as NYSE and FINRA
      rules.  Pershing further represents and warrants: (1) it has written
      anti-money laundering policies and procedures including procedures to identify
      and report suspicious activity; (2) it has a designated Anti-Money Laundering
      Compliance Officer (whose identity has been made known to Broker and the FINRA
      and FINRA); (3) it provides continuous anti-money laundering training to its
      employees; and (4) its anti-money laundering program is independently audited
      on
      an annual basis.

     

    c.           Transaction
      Reports.  Pershing shall provide Broker with anti-money laundering
      and other activity reports that can be used to detect suspicious activity in
      order to assist Broker to meet its obligations.  Pershing will offer
      training in the use of such reports.  Pershing will also, upon
      request, provide Broker with relevant information in Pershing’s possession that
      the Broker needs in order to file various required reports, including Forms
      CTR,
      CMIR, and SAR-SF and will provide such further assistance as may be required
      in
      the filing of such reports.

     

     

    
      
        
        

      

      
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    d.           Transaction
      Monitoring Systems.  Pershing shall make available to Broker
      various information pertinent to Broker’s anti-money laundering efforts,
      including certain systematic transaction monitoring tools such as The Rules
      Enginetm
      anti-money laundering rules.  Pershing will provide training in the
      use of such system to assist Broker in detecting suspicious activity and in
      screening electronic customer account data stored by Pershing on behalf of
      Broker against various databases through third-party service providers, for
      purposes of detecting names of OFAC prohibited individuals, entities in
      countries and other adverse information about the customer (“negative
      verification”).

     

    e.           Notification
      if Pershing Detects Suspicious Activity.  Through its trained
      employees and the use of automated systems, Pershing will review for (including,
      but not limited to, the items set forth in f through j below) and may detect
      suspicious activity utilizing a risk-based approach.  Pershing’s
      review does not relieve Broker of its own responsibilities to review for
      suspicious activity which may involve the use of reports and systems listed
      in c
      and d above.  In such circumstances when Pershing detects suspicious
      activity, Pershing will contact Broker about the transaction for purposes of
      sharing information about the transaction, unless Pershing believes that Broker
      itself may be engaged in suspicious activity or Pershing would be prohibited
      by
      law from sharing with Broker information about the suspicious
      transaction.  Nothing in this Paragraph shall be read to prohibit
      Pershing from filing its own suspicious activity and other reports, as it
      believes necessary or appropriate.  Broker shall take such steps as
      Pershing may reasonably request in connection with any potential suspicious
      activity in an account, including closing the account.

     

    f.           
      Incoming FedWires.  For all incoming federal fund wires
      (“FedWires”), Pershing shall initially check relevant information, including the
      remitter’s name, address, and account number, and the originating bank’s name
      and address (to the extent provided on an incoming wire) to detect possible
      OFAC
      restrictions.

     

    g.           Outgoing
      FedWires for Third Parties.  Requests for third-party wires are
      processed by Pershing on an exception basis using a risk-based
      approach.  When allowed, for outgoing FedWires ordered to the delivery
      of a person or entity other than the account holder, Pershing shall review
      relevant information, including the payee’s name, address, and account number,
      and the recipient bank’s name and address, to detect possible violations of OFAC
      restrictions.

     

    h.           Incoming
      Securities.  For securities received, Pershing shall review the
      names of the specified holder of the security to detect possible violations
      of
      OFAC restrictions in those circumstances when the registration on the security
      received is different than the name on the account into which the securities
      are
      deposited.

     

    i.           
      Outgoing Securities for Third Parties.  For outgoing securities
      to third parties, Pershing shall check the names and addresses of the third
      party to whom the security is to be delivered to detect possible violations
      of
      OFAC restrictions.

     

    j.           
      Systematic Daily Screening, Government Lists Including
      OFAC.  On a daily basis, Pershing shall compare all new accounts
      opened on its systems and all substantial changes made to account data resident
      on its systems to determine if any such new or changed account may be subject
      to
      an OFAC or other designated government list.  In addition, Pershing
      shall compare its existing customer database to added restrictions as may be
      published by the Federal Government from time to time.  Further,
      periodically Pershing shall compare its existing customer database to the
      existing OFAC government lists.  In the event that Pershing’s
      comparisons indicate that an account may be subject to an OFAC or government
      list restriction, Pershing will notify Broker if it believes there is a
      match.  Broker shall cooperate fully with Pershing to determine
      whether, in fact, the account is subject to any such
      restriction.  Broker will cooperate with Pershing in implementing any
      such action as may be determined by Pershing to be necessary or
      appropriate.  Broker acknowledges that Pershing may rely on a
      third-party vendor to provide current OFAC and other government restricted
      list
      data, and Pershing shall not be held liable for any errors or omissions caused
      by such third-party vendor.

     

     

     

    
      
        
        

      

      
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    k.          
      Funds Transfer Rule and Travel Rule.  Pershing represents it
      has systems designed to comply with the electronic transfer of funds rules,
      specifically the “Funds Transfer Rule” and the “Travel Rule,” 31 C.F.R.
      103.33(f) and (g), when processing disbursements on behalf of
      Broker.  Pershing shall comply with these rules based on information
      provided by Broker.

     

    8.3.6           Bulletins
      and Other Informational Memoranda.  Pershing shall from time to
      time issue Bulletins or other informational memoranda to Broker setting forth
      Pershing’s policies and procedures regarding anti-money laundering and terrorist
      financing.  Pershing agrees to give Broker written notice of any
      changes in such policies and procedures prior to their effectiveness and Broker
      agrees to become familiar with such Bulletins and informational memoranda and
      to
      abide by them.

     

    8.3.7           Cooperation.  Consistent
      with Section 314(b) of the USA PATRIOT Act and this Agreement, Broker and
      Pershing shall cooperate with each other and exchange information to assist
      each
      other in detecting money laundering and terrorist financing.  Broker
      and Pershing shall each submit to FinCEN the notice set forth in 31 CFR Part
      103.110(b)(2) and shall renew such notice each year.  Each instance of
      information sharing shall constitute a confirmation by Broker to Pershing and
      by
      Pershing to Broker that the requisite notice has been filed.  Pershing
      and Broker agree to consult with each other from time to time on each other’s
      anti-money laundering responsibilities.

     

    8.3.8           No
      Party to Cause Violation by the Other.  Neither Pershing nor
      Broker shall knowingly take any action to cause the other party to be in
      violation of any anti-money laundering laws or regulations.

     

    

    9.0           
      RECEIPT AND DELIVERY OF FUNDS AND SECURITIES

    

    9.1           
      Receipt and Delivery of Funds and Securities.

    

    9.1.1        
      Cashiering Functions.  Pershing shall perform cashiering
      functions for accounts introduced by Broker.  These functions shall
      include receipt, delivery and transfer of securities; receipt and payment of
      funds owed by or to customers; and provision of custody for securities and
      funds; the handling of margin accounts; the receipt and distribution of
      dividends and other distributions; and the processing of exchange offers, rights
      offerings, warrants, tender offers and redemptions.  Broker shall
      provide Pershing with the data and documents that are reasonably necessary
      or
      appropriate to permit Pershing to perform its obligations under this Paragraph,
      including but not limited to copies of records documenting receipt of customers’
funds and securities received directly by Broker.  Such data and
      documents must be compatible with the requirements of Pershing’s data processing
      systems.  To the extent Broker is unable to provide data and documents
      that are compatible with the requirements of Pershing’s data processing systems,
      the parties agree to attempt to resolve in good faith the provision of such
      information in a mutually acceptable format.

    

    9.1.2        
      Purchases.  Broker shall be responsible for purchases
      (including transactions on a “when issued” basis) made for customers until
      actual and complete payment has been received by Pershing.  Broker
      shall not introduce accounts requiring settlement on a “delivery versus payment”
or “receive versus payment” basis unless such account utilizes the facilities of
      a securities depository or qualified vendor as defined in FINRA Rule 387 for
      all
      depository eligible transactions.

     

     

    
 

    
      
        
        

      

      
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    9.1.3        
      Sales.  Broker shall be responsible for sales (including those
      on a “when issued” basis), until Pershing has received, in acceptable form, the
      securities involved in the transaction.  If Pershing does not receive
      delivery of securities in an acceptable form, Pershing may buy-in all or part
      of
      the securities.

    

    9.1.4        
      Funds and Securities Received by Broker.  Broker shall promptly
      deposit with Pershing funds or securities received by Broker from its customers,
      together with such information as may be relevant or necessary to enable
      Pershing to record such remittances and receipts in the respective customer
      accounts.

    

    9.1.5        
      Failure to Settle or Pay.  In the event of a failure to timely
      deposit required funds or securities, Pershing may take appropriate remedial
      action.  Without waiving or otherwise limiting its right to take other
      remedial action, Pershing may at its option charge interest at rates as agreed
      in Schedule A (“Fully Disclosed Pricing Schedule”) to this
      Agreement.  Broker may pass such charges on to its customers but
      Broker remains responsible therefor until actually paid.

    

    9.1.6        Check
      Writing Authority.  Pershing may, but is not required to,
      authorize certain of Broker’s employees to sign checks to Broker’s customers for
      amounts due to, and requested by them, with respect to their
      accounts.  Broker shall designate, in writing, the names of any
      employees it wishes to receive the authorization described in this
      Paragraph.  All checks must be signed by two employees who have
      received written authorization from Pershing.  No check or checks
      totaling more than $100,000 shall be provided to any customer by Broker on
      the
      same business day.  All expenses incurred in connection with the
      issuance of checks under the authority described in this Paragraph shall be
      charged to Broker.  Broker remains responsible for the disbursement
      and delivery of such checks to its customers.  Any lien on the
      customer’s property granted by the customer to Broker or Pershing shall extend
      to any funds which may be segregated in a separate account in connection with
      the exercise of the authority described in this Paragraph.  Broker has
      established, and shall maintain and enforce, supervisory procedures with respect
      to the issuance of such instruments as required by applicable law or
      regulation.that are satisfactory to Pershing.

    

    9.2           Restricted
      and Control Stock Requirements.  Broker shall be responsible for
      determining whether any securities held in Broker’s or its customer accounts are
      restricted or control securities as defined by applicable laws, rules, or
      regulations.  Broker is responsible for assuring that orders and other
      transactions executed for such securities comply with such laws, rules, and
      regulations.

    

    9.3           Corporate
      Action Requests/Soliciting Dealer Agreements.  Broker requests and
      authorizes Pershing to execute as Broker’s agent-in-fact any and all Soliciting
      Dealer Agreements (except as provided in Paragraph 13.8) for corporate actions
      involving securities or other interests held by Broker’s customers on the books
      of Pershing.  Pershing agrees to provide a written advice of the
      pending corporate action to Broker at its designated
      locations.  Pershing further agrees to collect and submit corporate
      action requests from Broker and submit them to the soliciting party in
      accordance with the instructions received from the soliciting
      party.  Pershing agrees to use commercially reasonable efforts to
      communicate corporate action information to Broker and, where applicable,
      Broker’s customers, but shall not be liable for a) any delays in the
      communication of corporate action information or b) delays in the transmission
      of collected corporate action requests to the soliciting party unless caused
      by
      Pershing’s negligence.  All fees received from the soliciting party
      will be credited to Broker.  In consideration of providing this
      service to Broker, Broker agrees to indemnify and hold harmless Pershing, its
      affiliates, officers, agents and employees from all claims, suits,
      investigations, damages and defense costs (including reasonable attorney’s fees)
      that arise in connection with this Paragraph, except to the extent that such
      claims, suits, investigations, damages and defense costs result from the
      negligence of Pershing, its affiliates, officers, agents and/or
      employees.

     

    
 

    
      
        
        

      

      
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    10.0         SAFEGUARDING
      OF FUNDS AND SECURITIES

    

    Except
      as otherwise provided in this
      Agreement, Pershing shall be responsible for the safekeeping of all money and
      securities received by it pursuant to this Agreement.  However,
      Pershing will not be responsible for any funds or securities delivered by a
      customer to Broker until such funds or securities are actually received by
      Pershing or deposited in bank accounts maintained by Pershing.

     

     

    11.0         CONFIRMATIONS
      AND STATEMENTS

    

    11.1         Preparation
      and Transmission of Confirmations and Statements.  Pershing shall
      prepare confirmations and summary periodic statements and shall, to the extent
      required by the Rules, transmit them to customers and Broker in a timely fashion
      except to the extent the parties agree in writing that Broker may transmit
      confirmations to customers.  Confirmations and statements shall be
      prepared on forms disclosing that the account is carried on a fully-disclosed
      basis for the Broker in accordance with applicable rules, regulations, and
      interpretations.  Broker will have the ultimate responsibility for
      compliance with the prospectus delivery requirements of the Securities Act
      of
      1933, as amended, regardless of its retention of a prospectus fulfillment
      service (including as may be provided by Pershing) to perform delivery of
      same.

    

    11.2         Examination
      and Notification of Errors.  Broker shall examine all
      confirmations, statements, and other reports in whatever medium provided to
      Broker by Pershing; provided however that if Broker is unable to examine
      such reports in the provided medium, Broker and Pershing shall attempt to
      resolve the issue in good faith .  Broker must notify Pershing of any
      error claimed by Broker in any account; as to purchase and sales transactions
      prior to settlement date and as to all other transactions within the time in
      which Pershing is able to, without violating applicable law, reverse the
      transaction.  If Broker fails to do so, Broker shall be deemed to have
      waived its right to make any claim against Pershing with respect to such
      error.

     

     

    12.0         ACCEPTANCE
      AND EXECUTION OF TRANSACTIONS

    

    12.1         Responsibility
      to Accept or Reject Trades.  Pershing shall execute transactions
      in customers’ accounts and release or deposit money or securities to or for
      accounts only upon Broker’s instructions.  Pershing reserves the right
      to accept written or oral transaction orders from Broker’s customers in
      circumstances where it determines that either (i) the customers are unable
      to
      execute those transactions through Broker or (ii) Pershing is required to do
      so
      by applicable or relevant law.  Notwithstanding any instructions to
      the contrary, Pershing may, after notifying Broker orally or in writing: (i)
      refuse to confirm a transaction or cancel a confirmation; (ii) reject a delivery
      or receipt of securities or money; (iii) refuse to clear a trade executed by
      Broker; or (iv) refuse to execute a trade for the account of a customer or
      Broker.

    

    12.2         Responsibility
      for Errors in Execution.  Broker shall be responsible for
      transmission to Pershing of all orders and for any errors in the Broker’s
      recording or transmission of such orders.

    

    12.3         Best
      Execution.  In accordance with the Rules, Pershing will provide
      best execution on all transactions routed to the desk of Pershing or of a
      Pershing affiliate.

     

     

    13.0         OTHER
      OBLIGATIONS AND RESPONSIBILITIES OF BROKER

     

    13.1         Disciplinary
      Action, Suspension, or Restriction.  If Broker or any of the
      Broker Executives becomes subject to disciplinary action, suspension, or
      restriction by a federal or state agency, stock exchange, or regulatory or
      self-regulatory organization having jurisdiction over Broker or Broker’s
      securities or commodities business, Broker shall give notice to Pershing
      promptly in writing, and provide Pershing a copy of any decision relating to
      such action, suspension, or restriction, unless such notice is prohibited by
      law.  Pershing may take any action it reasonably deems to be necessary
      (i) to assure that it will continue to comply with all applicable legal,
      regulatory, and self-regulatory requirements, notwithstanding such action,
      suspension, or restriction; and (ii) to comply with any requests, directives,
      or
      demands made upon Pershing by any such federal or state agency, stock exchange,
      or regulatory or self-regulatory organization.  Notwithstanding the
      foregoing, Broker need not notify Pershing of “minor rule violations” (as that
      term is defined in connection with Form U-5) of Broker or Broker
      Executives.

     

    
      
        
        

      

      
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    13.3         Provision
      of Financial Information.  Broker shall furnish Pershing copies of
      FOCUS Reports, audited annual financial statements for the current fiscal year,
      the executed Forms X-17a-5 (Parts I and IIA) filed with the SEC, any material
      amendments to Broker’s Form BD, and any other material regulatory or financial
      reports Pershing may from time to time reasonably require, unless prohibited
      by
      law.  Broker shall provide such reports to Pershing at the time Broker
      files such reports with its primary examining authority, or promptly
      thereafter.

    

    13.4         Executing
      Brokers.  If Broker wishes to act as an “Executing Broker” as such
      term is understood in that certain letter dated January 25, 1994, from the
      Division of Market Regulation of the SEC, as the same may be amended, modified
      or supplemented from time to time (the “No-Action Letter”), then all terms
      herein shall have the same meaning as ascribed thereto either in the Agreement
      or in the No-Action Letter as the sense thereof shall require.  Broker
      may, from time to time, execute trades (either directly or through Pershing)
      for
      Prime Brokerage Accounts in compliance with the requirements of the No-Action
      Letter.  (The No-Action Letter requires, inter alia, that a contract
      be executed between Pershing and Prime Broker, and between Broker and Prime
      Brokerage Customer prior to the transaction of any business
      hereunder.)  Broker shall promptly notify Pershing, but in no event
      later than 5:00 p.m. New York time, of trade date in a mutually acceptable
      fashion, of such trades in sufficient detail for Pershing to be able to report
      and transfer any trade executed by Broker on behalf of a Prime Brokerage Account
      to the relevant Prime Broker.  Broker understands and agrees that if
      Prime Broker shall disaffirm or “dk” any trade executed by Broker on behalf of a
      Prime Brokerage Account, Broker shall open an account for such Prime Brokerage
      Account in its range of accounts and shall transfer or deliver the trade to
      such
      account at the risk and expense of Broker to the same extent as for any account
      introduced by Broker pursuant to this Agreement.  Broker understands
      and agrees that all Prime Brokerage Accounts shall be conducted in accordance
      with the requirements of the No-Action Letter and any relevant agreement between
      Broker and a Prime Brokerage Customer or between Pershing and relevant Prime
      Broker.  Broker further agrees to supply Pershing with such documents,
      papers and things, which from time to time are reasonably required by Pershing
      to carry out the intention of this Paragraph.  Broker agrees that it
      shall know its customer, obtain appropriate documentation, including new account
      form, conduct its own credit check and determine the availability of shares
      as
      required for processing of any short sales.  Broker shall maintain
      facilities to clear any disaffirmed trades.

    

    13.5         Protection
      of Intellectual Property.  Each party shall use all reasonable
      efforts to preserve and protect the other party’s and its affiliates’ patent,
      trade secret, copyright and other proprietary rights in such party’s or its
      affiliates’ products, services, trademarks and tradenames, at least to the same
      extent used by the party to preserve and protect its own proprietary data or
      information and to notify the other party of any action by any third party
      known
      by such party to constitute an infringement of the other party’s or any of its
      affiliates’ proprietary rights and to cooperate with such party in protecting
      such rights.  Without limiting the foregoing, and subject to the
      permission required by Paragraph 22 hereof, Broker shall note Pershing’s or its
      affiliates’ patent, trade secret, copyrights, trademarks and trade names when
      Broker makes reference to or distributes products or services provided by
      Pershing or its affiliates, as applicable.

     

     

    
 

    
      
        
        

      

      
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    13.6           Currency
      Fluctuation.  If Broker directs Pershing to enter into any
      transaction to be effected on any securities exchange or in any market on which
      transactions are settled in a foreign currency, (i) any profit or loss arising
      as a result of a fluctuation in the rate of exchange between such currency
      and
      the United States Dollar shall be entirely for Broker’s account and risk, (ii)
      all initial and maintenance margin deposits required or requested by Pershing
      shall be in the currency required by the applicable marketplace or clearing
      agency in such amounts as Pershing in its sole discretion may require, and
      (iii)
      Pershing is authorized to convert funds in the Account into and from such
      foreign currency at rates of exchange prevailing at the banking or other
      institutions (including affiliated financial institutions including
      The  Bank of New York with which Pershing normally does
      business.)

    

    13.7           Execution
      Away from Pershing.  Broker may place for execution with firms
      other than Pershing orders for its customers’ accounts. Pershing will have no
      responsibility for the transmission or execution of any such orders, and Broker
      agrees to assume full responsibility for resolving any disputes and for bearing
      any losses resulting from transactions with firms with which Broker executes,
      giving up Pershing for clearance.  Broker also agrees that, with
      respect to any such orders, it will report executions promptly to Pershing
      for
      clearance in accordance with Pershing’s procedures.

    

    13.8           Mutual
      Fund Shares.  Broker shall be responsible for obtaining and
      executing dealer agreements with any principal underwriter for mutual funds
      from
      which Broker seeks to purchase mutual fund shares for its Customers’
accounts.  Broker shall provide copies of such agreements to Pershing
      upon Pershing’s request.

     

     

    14.0           OTHER
      OBLIGATIONS AND RESPONSIBILITIES OF PERSHING

    

    14.1           Use
      of Third-Party Services.  Pershing may, at its reasonable option,
      and consistent with common industry practice, retain one or more independent
      data processing or other service bureaus to perform functions (including, but
      not limited to, pricing services or proxy mailing services) assigned to Pershing
      under this Agreement.

    

    14.2           Tax
      Withholding.  Broker hereby agrees to take necessary measures to
      comply with the income tax withholding requirements of Section 3406 and Sections
      1441 through 1446 (the nonresident alien withholding  requirements) of
      the Internal Revenue Code of 1986, as amended (“IRC”) with respect to its
      customer accounts.  Broker agrees to furnish to Pershing any tax
      information, e.g., taxpayer identification numbers and certifications provided
      by the customer on IRS Forms W-8, W-8BEN, W-8IMY, W-8EXP, W-8ECI, W-9, or any
      acceptable substitute in its possession relating to each customer account
      transferred to Pershing and to each future customer account
      opened.  Broker acknowledges that Pershing will rely on such
      information for purposes of determining Pershing’s obligation to withhold
      federal income tax pursuant to Sections 1441 through 1446 and 3406 of the
      Internal Revenue code.  Broker hereby authorizes Pershing to employ
      any procedures permitted under applicable law or regulation to achieve
      compliance with its withholding obligations under federal income tax
      law.

    

    14.3           Retirement
      Account Distributions.  For retirement accounts for which Pershing
      makes designated distributions pursuant to Section 3405 of the IRC or any
      successor provision thereto,  Broker shall (1) obtain customer
      authorization to execute Form W-4P (or an acceptable substitute) on behalf
      of
      such customer, and (2) electronically provide such Form W-4P or a copy thereof
      to Pershing.

     

     

    15.0           ORDER
      AUDIT TRAIL SYSTEM (OATS)

    

     
Pursuant
      to FINRA Rules 6950
      through 6957 (Order Audit Trail System (“OATS”) Rules) and the OATS Reporting
      Technical Specifications, it is hereby agreed between Broker and Pershing that
      Pershing shall synchronize Pershing system clocks in accordance with the
      National Institute of Standards and Technology clock and periodically monitor
      such clocks for performance within any deviation time frame tolerance level
      permitted by the OATS Rules.

     

     

    
      
        
        

      

      
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        Unless
      otherwise directed in writing by Broker, Pershing will record and transmit
      to
      the FINRA, on Broker’s behalf, all order information that is required to be
      recorded pursuant to the OATS Rules and the OATS Technical Specifications
      (including any modifications thereto) (the “Order Information”) for orders
      entered on or linked to Pershing’s proprietary electronic order entry systems
      (including Trade Order Processing System, BrokerView Order Entry, BrokerView
      Direct Order, NetExchange ProTM, NetExchange
      ClientTM,
      Telexchange ProTM, and Telexchange
      ClientTM and
      any other electronic order entry system as Pershing may develop and implement
      from time to time) (collectively “the Front-End Products”) and routed to a
      market using Pershing’s routing routine.  Pershing will also record
      and transmit to the FINRA information that is received via the Front-End
      Products by Pershing in connection with modification or cancellation of any
      Order Information previously entered into the system.

     

       Unless
      specifically agreed to in writing, Pershing will not capture information or
      transmit Order Information for orders that are not entered on the Front-End
      Products or called in for execution or where Pershing does not determine the
      order routing routine.

     

       For
      trades not entered on Front-End Products, Broker is responsible for providing
      information necessary for Pershing to report on Broker’s
      behalf.  Broker agrees that Pershing may pass any out-of-pocket costs
      associated with development and/or maintenance of this system on to
      Broker.

     

       Broker
      acknowledges and agrees that Pershing shall not be responsible for any Order
      Information that is not received by Pershing.

     

       Pershing
      shall be responsible for repairing any rejections of OATS data it receives
      or is
      made aware of for data Pershing previously reported to the OATS reporting
      authorities.  Broker agrees to notify Pershing of any rejection of
      OATS data that it receives or is made aware of for data previously reported
      to
      the OATS reporting authorities by Pershing.

     

       Notwithstanding
      the foregoing, nothing contained herein shall relieve Broker of its reporting
      obligations under paragraph (c)(3) of OATS Rule 6955.

     

     

    16.0     TRANSMISSION
      OF ORDERS TO PERSHING AS PRIME BROKER

    

    16.1     General
      Broker Functions.  Broker may, from time to time, collect and
      transmit to Pershing orders and other instructions to Pershing from Broker’s
      prime brokerage customers (“Prime Brokerage Orders”) and provide Pershing with
      such reports, data and services as Pershing requires in order to act as prime
      broker with respect to such Prime Brokerage Orders, consistent with the SEC
      No-Action Letter dated January 25, 1994 (“No-Action Letter”) and applicable
      rules and regulations.

    

    16.2     Trading
      Activity Functions.  Broker shall perform the following functions
      as introducing firm for its prime brokerage customers:

    

    
      	
              a.  

            	
              Report
                all trading activity for the accounts of Broker’s prime brokerage
                customers (whether executing with Pershing or away) to Pershing via
                iPartner, NetExchange Advisor (or other agreed upon method) on trade
                date
                by a time to be determined by Pershing and Broker from time to
                time.

            

    

    
      	
              b.  

            	
              Assure
                that access to iPartner is limited to authorized persons
                only.

            

    

    
      	
              c.  

            	
              Accept,
                via electronic mail (or telephone) on T+1, information regarding
                all trade
                breaks and respond to the Investment Management Services (“PIMS”) group of
                Pershing regarding resolution of such trade breaks by 12:00 noon
                (NYC
                time) on T+1.

            

    

    
      	
              d.  

            	
              Obtain
                pre-approval from Pershing for any short sales directed by Broker’s prime
                brokerage customers.

            

    

    
      	
              e.  

            	
              Provide
                all information to Pershing related to the eligibility of any of
                Broker’s
                customers to receive or to continue to receive prime brokerage
                services.

            

    

    

    

    
      
        
        

      

      
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    16.3     Other
      Prime Brokerage Functions.  Broker shall perform the following
      additional functions as introducing firm for its prime brokerage
      customers:

    

    
      	
              a.  

            	
              Obtain
                and deliver to Pershing an executed Prime Brokerage Client Agreement
                in
                substantially the form provided by Pershing to Broker, for each prime
                brokerage customer of Broker.

            

    

    
      	
              b.  

            	
              Obtain
                and deliver to Pershing an executed Prime Brokerage Investment Advisor
                Agreement in substantially the form provided by Pershing to Broker,
                for
                any investment advisor with discretion over an account of a prime
                brokerage customer of Broker (the “Investment
                Advisor”).

            

    

    
      	
               

            	
                        
                c.

            	
              
                Deliver
                  to Pershing for acceptance or rejection the name of, and any information
                  requested by Pershing regarding, each Executing Broker that Broker
                  proposes to utilize to execute prime brokerage trades.  Broker
                  acknowledges that Pershing does not select any Executing Broker,
                  and makes
                  no representation regarding the financial condition or ability
                  of any
                  Executing Broker.

              

            

    

    
      	
              d.  

            	
              Obtain
                and deliver to PIMS an executed Schedule A for each prime brokerage
                agreement between Pershing (as Prime Broker) and each Executing Broker
                accepted by Pershing, showing each prime brokerage customer of Broker
                for
                whose Account Prime Brokerage Orders will be placed and, thereafter,
                deliver to PIMS executed Forms 1 to Schedule A to reflect additions
                and
                deletions of prime brokerage customers as
                appropriate.

            

    

    
      	
              e.  

            	
              Perform
                any other functions reasonably requested by Pershing to facilitate
                Pershing’s performance of the prime brokerage services hereunder and as
                contemplated by the No-Action
                Letter.

            

    

    

    16.4     Broker
      Acknowledgements Regarding Prime Brokerage.  Broker acknowledges
      that Pershing may disaffirm or DK transactions of any prime brokerage customers
      of Broker.  Broker will be responsible for resolving all unmatched
      items, and advising PIMS of their status in a timely manner.  Broker
      acknowledges that PIMS shall monitor the net equity of accounts of Broker’s
      prime brokerage customers carried by Pershing, and shall notify Broker who
      in
      turn shall notify the relevant prime brokerage customers on Broker’s letterhead
      whenever such customers’ net equity falls below the minimum required by
      Pershing.  If an account falls below the minimum net equity set by
      Pershing, the account will not be permitted to place any further Prime Brokerage
      Orders until the net equity is increased to the level required by
      Pershing.  Broker agrees to provide access to its personnel and
      records, and submits to the supervision of Pershing for the purpose of complying
      with Pershing’s obligations as Prime Broker under the No-Action Letter and
      applicable laws, rules and regulations in relation to the provision of the
      prime
      brokerage services.

    

    16.5     Compensation.  In
      consideration of Pershing acting as Prime Broker, Broker agrees to pay the
      amounts set forth in Schedule A hereto.

    

    16.6     Limitation
      of Liability.  Except as otherwise provided in Section 18 of this
      Agreement, Broker acknowledges and agrees that:

    

    
      	
              a.  

            	
              Pershing
                accepts no responsibility for the Prime Brokerage Orders received
                from the
                Broker via iPartner (or other agreed upon method) except in the event
                of
                gross negligence or willful misconduct by Pershing or its
                employees.

            

    

    
      	
              b.  

            	
              Pershing
                accepts no responsibility and disclaims all liability for any
                communication linkage failure associated with the transmittal of
                Prime
                Brokerage Orders except in the event of gross negligence or willful
                misconduct by Pershing or its
                employees.

            

    

    
      	
              c.  

            	
              Pershing
                is not responsible for fraudulent or unauthorized access to iPartner
                that
                may cause any loss, damage or liability to Broker, Pershing, Broker’s
                prime brokerage customers, or a third
                party.

            

    

    
      	
              d.  

            	
              Any
                notice by Pershing hereunder or as required to perform prime brokerage
                services to prime brokerage customers of Broker shall be made to
                Broker,
                whether on Broker’s behalf or on behalf of such customers.  Any
                notice made to Broker shall be deemed to be made to, or done for,
                Broker’s
                prime brokerage customers, as applicable.  Broker shall be
                responsible for all communication with Broker’s prime brokerage customers
                regarding all services to be performed hereunder.  Pershing is
                not responsible for communication failure between Broker and Broker’s
                prime brokerage customers.

            

    

    
      	
              e.  

            	
              In
                connection with this Paragraph 16.6, Pershing disclaims liability
                not only
                for direct damages to the Broker, Pershing, Broker’s prime brokerage
                customers or a third party, but in addition disclaims any and all
                liability for special, indirect or consequential or incidental damages
                whether in tort or in contract even if Pershing has been advised
                of the
                possibility of such damage except in the event of gross negligence
                or
                willful misconduct by Pershing or its
                employees.

            

    

     

     

    
      
        
        

      

      
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    16.7           No
      Joint Venture.  Nothing contained in the Agreement (i) shall
      constitute Pershing and Broker as members of any partnership, joint venture,
      association, syndicate, unincorporated business or other separate entity, (ii)
      shall be construed to impose any liability as such on any of them or (iii)
      shall
      be deemed to confer on any of them any express, implied or apparent authority
      to
      incur any obligation or liability on behalf of the others.

    

    16.8           Representations
      and Warranties.  In addition to, and no way in limitation of,
      Broker’s representations and warranties as contained elsewhere in this
      Agreement, Broker represents and warrants that:

    

    
      	
               

            	
              a.

            	
              Broker
                has been duly appointed and authorized by Broker’s prime brokerage
                customers to transmit Prime Brokerage Orders to
                Pershing.

            

    

    
      	
               

            	
              b.

            	
              All
                Broker’s customers whose accounts will participate in prime brokerage
                activities have been advised, via client agreements or otherwise,
                that
                their accounts will engage in prime brokerage activities, Pershing
                will
                act as Prime Broker for their accounts, and said customers or the
                Investment Advisor thereof may place orders for the execution of
                trades
                for their accounts at Executing Brokers, all in conformity with applicable
                provisions of the No-Action Letter.

            

    

     

    

    17.0           DAMAGES

    

    As
      between the parties, neither party
      shall be liable for special, indirect, incidental, consequential or punitive
      damages, whether such damages are incurred or experienced as a result of
      entering into or relying on this Agreement or otherwise, even if the parties
      have been advised of the possibility of such damages.  Broker and
      Pershing each agree not to assert any claim for punitive damages against the
      other.

     

     

     

     

    
      
        
        

      

      
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    18.0           LIABILITY

    

    18.1           Liability
      of Pershing

    

    18.1.1                      Disclaimer
      of Warranties.   Broker expressly agrees
      that Broker’s use of Pershing’s Services, including the Systems as defined by
      Paragraph 30.1 and software products as defined herein, is at Broker’s sole
      risk.  Except as otherwise provided in this Agreement, neither
      Pershing nor any of its directors, officers, employees, agents, contractors,
      affiliates, information providers, licensors, or other suppliers providing
      data,
      information, services or software, including but not limited to the FINRA,
      warrants that the services will be uninterrupted or error free; nor do any
      of
      them make any warranty as to the results that may be obtained from the use
      of
      the services or as to the timeliness, sequence, accuracy, completeness,
      reliability or content of any data, information, services, or transactions
      provided and Pershing shall not be responsible for any losses liabilities or
      damages caused by the acts or omissions of those third party agents,
      contractors, information providers or other suppliers beyond any amount which
      Pershing is able to recover pursuant to its agreement with such
      entity.  Except as specifically set forth in this Paragraph 18.1,
      Pershing’s services are provided on an “as is,” “as available” basis, without
      warranties of any kind, either express or implied, including, without
      limitation, those of merchantability, fitness for a particular purpose, and
      non-infringement, other than those warranties which are implied by and incapable
      of exclusion, restriction or modification under the laws applicable to this
      Agreement.

    

    18.1.2                      Pershing
      Indemnification.  In addition to any other obligations it may
      possess under other provisions of this Agreement, Pershing shall indemnify,
      defend, and hold harmless Broker and any controlling person of Broker, from
      and
      against all allegations, claims, demands, proceedings, suits
      and  actions (“Claims”) and all liabilities, expenses, reasonable
      attorney’s fees (including fees and costs incurred in enforcing Broker’s right
      to indemnification), and costs in connection therewith arising out of any
      negligent, reckless, dishonest, fraudulent, or criminal act or omission on
      the
      part of any of Pershing’s officers or employees or contractor agents performing
      job typically done by employees (“Contractor Agents”) with respect to the
      services provided by Pershing under this Agreement.

    

    18.1.3                      Right
      to Compete.  Nothing in this Agreement shall be deemed to restrict
      in any way the right of either party or any affiliate to compete with the other
      party in any or all aspects of the other party’s business.

    

    18.2           Liability
      of Broker

    

    18.2.1                      Broker
      Indemnification.  In addition to any other obligations it may
      possess under other provisions of this Agreement, Broker shall indemnify, and
      hold harmless Pershing, and any controlling person of Pershing, from and against
      all allegations, claims, demands, proceedings, suits, and actions (“Claims”) and
      all liabilities, expenses, attorney’s fees (including fees and costs incurred in
      enforcing Pershing’s right to indemnification), and costs in connection
      therewith arising out of one or more of Broker’s or any of its contractor
      agent’s or employee’s negligent, dishonest, fraudulent, or criminal act, or
      omission including related to the following:

    

    18.2.1.1                                Failure
      to Make Payment or Deliver Securities.   A check received by
      Pershing from a customer shall not constitute payment until it has been paid
      and
      the proceeds are actually received and finally credited to Pershing (without
      any
      subsequent charge back) by its bank.

    

    18.2.1.2                                Margin
      Calls.  Failure of a customer to meet any initial margin call or
      any maintenance call, except that Pershing shall be responsible for the portion
      of any such loss or damage that was attributable to Pershing’s failure to give
      notification to Broker as required in Paragraph 7.3.2 of this
      Agreement.

     

     

    
 

    
      
        
        

      

      
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    18.2.1.3                                Broker’s
      Failure to Perform.  Failure of Broker to perform in a material
      respect any duty, obligation, or responsibility with respect to customer
      accounts as set forth in this Agreement.  Broker’s indemnification
      obligation under this Paragraph shall not be affected by the participation
      of
      Pershing or any person controlling it or controlled by it within the meaning
      of
      the Securities Exchange Act of l934, as amended, in any transaction giving
      rise
      to such an obligation, unless such participation constitutes negligence,
      recklessness, fraud, or criminal conduct.

    

    18.2.1.4                                Improper
      Conduct by Agents.  Any negligent, dishonest, fraudulent, or
      criminal act or omission on the part of any of Broker’s officers, directors,
      employees, or agents.

    

    18.2.1.5                                Failure
      of a Customer to Perform Obligations.  Any failure by any of
      Broker’s customers to perform any commitment or obligation with respect to a
      transaction carried by Pershing under this Agreement.

    

    18.2.1.6                                Customer
      Claims and Disputes.  Except to the extent such claim or dispute
      relates to the negligent, reckless, dishonest, fraudulent, or criminal act
      or
      omission on the part of any of Pershing’s officers or employees or contractor
      agents, any claim or dispute between Broker and a customer with respect to
      services provided under this Agreement, including, but not limited to, any
      claim
      or dispute concerning the validity of a customer order in the form the order
      was
      transmitted to Pershing by Broker and any claim arising in connection with
      Pershing’s guarantee of any signature of any customer of Broker or at the
      request of Broker.

    

    18.2.1.7                                Warranties.  Any
      adverse claim with respect to any security delivered or cleared by Pershing,
      including a claim of a defect in title with respect to securities that are
      alleged to have been forged, counterfeited, raised or otherwise altered, or
      if
      they are alleged to have been lost or stolen.  The parties agree that
      Pershing shall be deemed to be an intermediary between Broker and customer
      and
      shall be deemed to make no warranties other than as provided in Section 8-306(3)
      of the Uniform Commercial Code.

    

    18.2.1.8                                Default
      of Third-Party Broker.  Any default by a third-party broker with
      whom the Broker deals on a principal or agency basis in a transaction either
      not
      executed by Pershing or not cleared by Pershing.

    

    18.2.1.9                                Check
      Signing.  Any negligence, fraud, malfeasance, or error of any
      employee of Broker with respect to the use of the check-signing authority
      granted under Paragraph 9.1.6 of this Agreement.

    

    18.2.1.10             
      Prior Self-Clearing Arrangements.  Any guarantee,
      indemnification, or hold harmless agreement in connection with Broker’s business
      or customers that Pershing may provide to the National Securities Clearing
      Corporation, the Depository Trust Company, or any other clearing, depository,
      or
      self-regulatory organization with respect to transactions self-cleared by Broker
      prior to transfer of such functions to Pershing.

    

    18.2.1.11             
      Breach of Warranty by Broker.  Any breach by Broker in a
      material respect of any material representation or warranty made by it under
      this Agreement.

    

    18.2.1.12                             
      Deposit of Checks to Customer Accounts.  Any failure to
      exercise due diligence in reviewing checks received from customers to ensure
      that same are in proper form, or in the issuance of instructions to Pershing
      regarding the accounts into which checks are to be deposited.

    

    18.2.1.13                             
      Infringement of Intellectual Property Rights.  Any act or
      omission of Broker, its agents or  employees which infringes on any
      patent, trade secret, copyright, trademark, or other intellectual property
      right
      of Pershing or any violation of the terms set forth in Paragraph 30
      hereof.

     

     

    
      
        
        

      

      
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    18.2.1.14                             
      Misuse of Passwords and Unauthorized Access.  The misuse, loss
      or unauthorized access to the Systems and Software Products using the
      Identification Devices (as that term is defined in Paragraph 30.1 of this
      Agreement) provided to Broker or its customers.

    

    
      	
              18.2.2  

            	
              Defense
                of Claims by Broker.  Broker will institute defense against
                any Claims at the sole expense of Broker and using counsel reasonably
                acceptable to Pershing.  Broker will keep Pershing informed of
                the status of the defense of such Claims, and Broker will not agree
                to any
                settlement without consent of Pershing, which consent will not be
                unreasonably withheld.  Notwithstanding the foregoing, Pershing
                will have the right to assume the defense of such Claims at the sole
                expense of Broker if  (i) Broker has not employed counsel to
                conduct the defense of Pershing and (ii) Pershing shall have reasonably
                concluded that, as between Pershing and Broker, there may be a conflict
                of
                interest requiring separate counsel or counsel selected is not competent
                to represent Pershing.

            

    

    

    
      	
              18.2.3  

            	
              Defense
                of Claims by Pershing. Pershing will institute defense against any
                claims
                against Broker for Pershing’s actions requiring indemnity under section
                18.1.2 at the sole expense of Pershing and using counsel reasonably
                acceptable to Broker. (i) If Pershing has not employed counsel to
                conduct
                the defense of Broker and (ii) Broker shall have reasonably concluded
                that, as between Broker and Pershing, there may be a conflict of
                interest
                requiring separate counsel or counsel selected is not competent to
                represent Broker.

            

    

    

    

    19.0           FEES
      AND SETTLEMENTS FOR SECURITIES TRANSACTIONS

    

    19.1           Commissions.  Pershing
      shall charge each of Broker’s customers the commission, markup, and any other
      charge or expense that Broker instructs it to charge for each
      transaction.  If instructions are not received with respect to a
      transaction in the time period required by Pershing to implement those
      instructions, Pershing shall charge the customer the commission, markup, or
      other charge or expense prescribed in the basic commission schedule delivered
      to
      Pershing by Broker.  This basic schedule may be amended from time to
      time by Broker by written instructions delivered to
      Pershing.  Pershing shall only be required to implement such
      amendments to the basic schedule to the extent such amendments are within the
      capabilities of Pershing’s data processing and operations systems and only
      within such reasonable time limitations as Pershing may deem necessary to avoid
      disruption of its normal operating capabilities.

    

    19.2           Miscellaneous
      Charges.  Broker agrees to pay Pershing the fees and charges
      described in Schedule A hereto.  Notwithstanding the foregoing, Broker
      may instruct Pershing to pass through such fees to Broker’s
      customers.

    

    19.3           Fees
      for Clearing Services.  As compensation for services provided
      pursuant to this Agreement, Pershing shall deduct from the commissions, mark-up,
      mark-down, or fees charged Broker’s customers the amounts set forth in the
      fully-disclosed pricing schedule attached hereto as Schedule A.

    

    20.0           DEPOSIT
      ACCOUNT

    

    20.1           Establishment
      of Deposit Account.  To further assure Broker’s performance of its
      obligations under this Agreement, including but not limited to its
      indemnification obligations under Paragraph 18, Broker shall, on or before
      the
      execution of this Agreement, establish an account at Pershing to be designated
      as the Broker’s Deposit Account (the “Deposit Account”).  The Deposit
      Account shall not represent an ownership interest by Broker in
      Pershing.  The Deposit Account shall at all times contain cash,
      securities, or a combination of both, having a market value of at least the
      amount set forth in Schedule A.  The securities placed in the Deposit
      Account shall consist only of direct obligations issued by or guaranteed as
      to
      principal and interest by the United States Government.  In the event
      of a material adverse change in the nature and extent of Broker’s business
      operations, Pershing may require that an additional amount be deposited promptly
      in the Deposit Account upon reasonable prior written notice to
      Broker.  If such a deposit is not made in the amount specified within
      a reasonable time period after Broker’s receipt of notice of the increase,
      whether or not Broker agrees that the amount is justified under this Paragraph,
      Pershing may terminate this Agreement forthwith.

     

    
 

    
      
        
        

      

      
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    20.2           Pershing’s
      Right to Offset.  If (i) Pershing shall have any claim against
      Broker or a customer of Broker which has not been resolved within ten business
      days after Pershing presents such claim to Broker; or (ii) if Pershing shall
      suffer any loss or incur any expense for which it is finally judicially
      determined that it is entitled to be indemnified pursuant to this Agreement,
      and
      Broker shall fail to make such indemnification within ten  business
      days after being requested to do so, Pershing may deduct the amount of such
      claim, loss, or expense from any account of Broker.  Pershing may
      withdraw cash or securities (or both) having a market value equal to the amount
      of such claimed deficiency.  If those funds are withdrawn from the
      Deposit Account, then Broker shall be obligated to make a prompt deposit in
      the
      Deposit Account of cash or securities sufficient to bring the Deposit Account
      back to a value of at least the amount required by Schedule
      A.  Pershing shall give prior written advice to Broker of all
      deductions from the Deposit Account made hereunder.

    

    20.3           Termination
      of Deposit Account.  Within thirty (30) days of termination of
      this Agreement, Pershing shall pay and deliver to Broker, the funds and
      securities in the Deposit Account, less any amounts to which it is entitled
      under the preceding Paragraph; provided, however, that Pershing
      may:  (i) retain the Deposit Account for such period of time until
      transfer of all customer and proprietary accounts of Broker has been completed
      and (ii) retain in the Deposit Account such amount for such period as it deems
      reasonably appropriate for its protection from any claim or proceeding of any
      type, then pending or threatened, until the final determination of such claim
      or
      proceeding is made.  If a threatened claim or proceeding is not
      resolved or if a legal action or proceeding is not instituted within a
      reasonable time after the termination of this Agreement, any amount retained
      with respect to such claim, proceeding, or action shall be paid or delivered
      to
      Broker.

    

    

    21.0         PROPRIETARY
      ACCOUNTS OF INTRODUCING BROKERS AND DEALERS (PAIB)

    

    Pershing
      shall establish a separate
      reserve account for proprietary assets held by Broker so that Broker can treat
      these assets as allowable assets under SEC Rule 

    15c3-1.  Pershing
      agrees to perform the required computation on behalf of Broker in accordance
      with the following provisions, procedures, and interpretations set forth in
      the
      SEC’s No-Action Letter regarding Proprietary Accounts of Introducing Brokers and
      Dealers (PAIB) dated November 3, 1998 (the “No-Action Letter”):

    

    21.1         Pershing
      will perform a separate computation for PAIB assets (PAIB reserve computation)
      of Broker in accordance with the customer reserve computation set forth in
      SEC
      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 will not be included as a credit in the PAIB
      reserve computation;

    

    b.            
      Note E(3) to Rule 15c3-3a, which reduces debit balances by one percent under
      the
      basic method and subparagraph (a)(1)(ii)(A) of Rule 15c3-1, which reduces debit
      balances by three percent under the alternative method, will not apply;
      and

    

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

     

     

    
      
        
        

      

      
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    21.2         PAIB
      reserve computation will include all the proprietary accounts of Broker. All
      PAIB assets will be kept separate and distinct from customer assets under the
      customer reserve computation set forth in SEC Rule 15c3-3.

    

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

    

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

    

    21.5         If
      the PAIB reserve computation results in a deposit requirement, the requirement
      can 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 cannot be satisfied with excess debits from
      the PAIB reserve computation.

    

    21.6         Within
      two business days of entering into this Agreement, Broker shall notify its
      designated examining authority (“DEA”) in writing that it has entered into a
      PAIB agreement with its clearing broker-dealer.

    

    21.7         Upon
      discovery that any deposit made to the PAIB Reserve Account did not satisfy
      its
      deposit requirement, Pershing will immediately notify its DEA and the SEC by
      facsimile or telegram.  Unless a corrective plan is found to be
      acceptable by the SEC and the DEA, Pershing will provide written notification
      within five business days of the date of discovery to Broker that PAIB assets
      held by Pershing will not be deemed allowable assets for net capital
      purposes.  The letter will also state that if the Broker 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 notification was made to transfer
      all PAIB assets to another clearing broker.  However, if the deposit
      deficiency is remedied before that time at which Broker must transfer its PAIB
      assets to another clearing broker, the Broker may choose to keep its assets
      at
      Pershing.

    

    
      	
              21.8  

            	
                
                To the extent applicable, commissions receivable and other receivables
                of
                Broker from Pershing (excluding clearing deposits) that are otherwise
                allowable assets under the net capital rule are not to be included
                in the
                PAIB reserve computation, provided the amounts have been clearly
                identified as receivables on the books and records of the Broker
                and as
                payables on the books of Pershing.

            

    

    
      	 	 

      	
              21.9  

            	
                
                The parties shall adhere to the terms of the No-Action Letter, including
                the interpretation set forth therein, in all
                respects.

            

    

    

    

    22.0         COMMUNICATION

    

    22.1         Notice
      to Customers.  Pershing shall, upon the opening of an account
      pursuant to Paragraph 5 of this Agreement, mail to each customer a copy of
      the
      notice to customers required by NYSE Rule 382(c).

    

    22.2         Customer
      Complaint Reporting and Customer Notification.  Broker authorizes
      and instructs Pershing to forward promptly, to the extent required by applicable
      law or regulation, any written customer complaint received by Pershing regarding
      Broker and/or its associated persons relating to functions and responsibilities
      allocated to Broker under this Agreement to a) Broker and b) Broker’s DEA
      designated under Section 17 of the Securities and Exchange Act of 1934, as
      amended, or, if none, to Broker’s appropriate regulatory agency or
      authority.  Further, to the extent required by applicable law or
      regulation, Broker authorizes Pershing to notify the customer, in writing,
      that
      Pershing has received the complaint, and the complaint has been forwarded to
      the
      Broker and the Broker’s DEA (or, if none, to the appropriate regulatory
      agency).

     

     

    
      
        
        

      

      
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    22.3           Restriction
      on Advertising.  Except as may be required by law, neither
      Pershing nor Broker shall utilize the name of the other in any way without
      the
      other’s prior written consent except to disclose the relationship between the
      parties.  Neither party shall employ the other’s name in such a manner
      as to create the impression that the relationship between them is anything
      other
      than that of clearing broker and introducing broker.  Broker shall not
      hold itself out as an agent of Pershing or as a subsidiary or company controlled
      directly or indirectly by or affiliated with Pershing except as provided in
      this
      Paragraph.

    

    22.4           Linking
      Between Sites.  Without express written authorization, neither
      party may provide or allow an electronic hyperlink directly from its service
      or
      site on the Internet or another site over which that party has control to the
      service or site on the Internet of the other party.

    

    

    23.0           TERMINATION
      OF AGREEMENT

    

     
This
      Agreement shall continue
      until terminated as hereinafter provided:

    

    23.1           Termination
      upon 90-Day Notice.  This Agreement may be terminated by either
      party without cause upon ninety days prior notice.  If either party
      terminates the Agreement pursuant to this Paragraph, Pershing shall have the
      right to impose reasonable limitations upon Broker’s activities during the
      period between the giving of Notice and the transfer of Broker’s
      accounts.

    

    23.2           Termination
      upon 60-Day Notice.  Either party may terminate this Agreement
      upon sixty days prior written notice to the other party in the event that:
      (i)
      the other party breached a material provision of this Agreement and such breach,
      if curable, shall continue without remedy for a period of 10 days after written
      notice from the non-defaulting party is transmitted in accordance with Section
      26 of this Agreement, (ii) any material representation, warranty or covenant
      of
      the other party in this Agreement is false or misleading in any material
      respect; (iii) any of Broker Executives, is enjoined, prohibited, disciplined
      or
      suspended as a result of administrative or judicial proceedings, or proceedings
      of a self-regulatory organization of which Broker is a member, from engaging
      in
      securities business activities constituting all or material portions of Broker’s
      securities business

    

    23.3           Immediate
      Termination.  This Agreement may be terminated by Pershing or
      Broker immediately in the event that (a) the other party is enjoined, disabled,
      suspended, prohibited, or otherwise becomes unable to engage in the securities
      business or any part of it by operation of law or as a result of any
      administrative or judicial proceeding or action by the SEC, any state securities
      law administrator, or any regulatory or self-regulatory organization having
      jurisdiction over such party or (b) the other party (i) becomes or is declared
      insolvent; (ii) voluntarily files or is the subject of, a petition commencing
      a
      case under any chapter of Title 11 of the United States Code; (iii) makes a
      general assignment for the benefit of its creditors; (iv) Pershing is enjoined
      ,
      prohibited or suspended as a result of administrative or judicial proceedings,
      or proceedings of a self – regulatory organization of which Pershing is a
      member, from engaging in securities business activities constituting all or
      material portions of Pershing’s securities business.(vi) files an application or
      consents to the appointment of, or there is appointed, any receiver, or a
      permanent or interim trustee of that party or any of its subsidiaries, as the
      case may be, or all or any portion of its property, including, without
      limitation, the appointment or authorization of a trustee, receiver or agent
      under applicable law or under a contract to take charge of its property for
      the
      purpose of enforcing a lien against such property or for the purpose of general
      administration of such property for the benefit of its creditors; (vii) files
      a
      petition seeking a reorganization of its financial affairs or to take advantage
      of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution
      or liquidation law or statute or files an answer admitting the material
      allegations of a petition filed against it in any proceeding under any such
      law
      or statute; or (viii) takes any corporate action for the purpose of effecting
      any of the foregoing, in each of the foregoing instances, the particular
      petition or order is not dismissed within 30 calendar days after such
      filing.

     

     

    
      
        
        

      

      
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    23.4           Conversion
      of Accounts.  In the event that this Agreement is terminated for
      any reason, Broker shall arrange for the conversion of Broker’s and its customer
      accounts to another clearing broker or to Broker if it becomes
      self-clearing.  Broker shall give Pershing Notice (the “Conversion
      Notice”) of: (i) the name of the broker that will assume responsibility for
      clearing services for Customers and Broker; (ii) the date on which such broker
      will commence providing such services; (iii) Broker’s undertaking, in form and
      substance satisfactory to Pershing, that Broker’s agreement with such clearing
      broker provides that such clearing broker will accept on conversion all Broker
      and customer accounts then maintained by Pershing; and (iv) the name of an
      individual or individuals within new clearing broker’s organization whom
      Pershing may contact to coordinate the conversion.  The Conversion
      Notice shall accompany Broker’s notice of termination given pursuant to this
      Paragraph.  If Broker fails to give Conversion Notice to Pershing,
      Pershing may notify Broker’s customers as Pershing deems appropriate of the
      termination of this Agreement and may make such arrangements as Pershing deems
      appropriate for transfer or delivery of customer and Broker
      accounts.  In such event, the expense of notifying those customers and
      making such arrangements shall be charged to Broker.

    

    23.5           Survival.  Termination
      of this Agreement in any manner shall not release Broker or Pershing from any
      liability or responsibility with respect to any representation or warranty
      or
      transaction effected on the books of Pershing.

    

    [23.6         
      Termination Fee.  Unless otherwise agreed in writing by Broker
      and Pershing, if Broker terminates this Agreement pursuant to Paragraph 23.1
      above, or Pershing terminates this Agreement pursuant to Paragraph 23.2 or
      23.3
      within the period specified in Schedule A, Broker shall pay to Pershing a
      termination fee and will reimburse Pershing for Deconversion Expenses as stated
      in Schedule A].

    

    23.7           Termination
      Under S.I.P.A.  In the event that Broker is the subject of the
      issuance of a protective decree pursuant to the Securities Investor Protection
      Act of 1970 (15 U.S.C. § 78aaa-111), Pershing’s claim for payment of a
      termination fee under this Agreement shall be subordinate to claims of Broker’s
      customers that have been approved by the Trustee appointed by the Securities
      Investor Protection Corporation pursuant to the issuance of such protective
      decree.

    

    

    24.0           CONFIDENTIALITY

    

    24.1           “Confidential
      Information” of a party shall mean all data and information submitted to the
      other party or obtained by the other party in connection with the services,
      including information relating to a party’s customers (which includes, without
      limitation, Non-Public Personal Information as that term is defined in
      Securities and Exchange Commission Regulation S-P), technology, operations,
      facilities, consumer markets, products, capacities, systems, procedures,
      security practices, research, development, business affairs, ideas, concepts,
      innovations, inventions, designs, business methodologies, improvements, trade
      secrets, copyrightable subject matter and other proprietary
      information.

    

    24.2           All
      Confidential Information relating to a party shall be held in confidence by
      the
      other party to the same extent and in at least the same manner as such party
      protects its own confidential or proprietary information.  Neither
      party shall disclose, publish, release, transfer or otherwise make available
      Confidential Information of the other party in any form to, or for the use
      or
      benefit of, any person or entity without the other party’s
      consent.  Each party shall, however, be permitted to disclose relevant
      aspects of the other party’s Confidential Information to its officers, agents,
      subcontractors and employees to the extent such disclosure is reasonably
      necessary for the performance of its duties and obligations under this Agreement
      and such disclosure is not prohibited by Gramm-Leach-Bliley Act of 1999
      (“GLBA”), which amends the Securities and Exchange Act of 1934, as it may be
      amended from time to time, the regulations promulgated by the Securities and
      Exchange Commission thereunder or other applicable law; provided, however,
      that
      such party shall take all reasonable measures to ensure that Confidential
      Information of the other party is not disclosed or duplicated in contravention
      of the provisions of this Agreement by such officers, agents, subcontractors
      and
      employees.  The obligations in this Paragraph shall not restrict any
      disclosure by either party pursuant to any applicable law, or by order of any
      court or government agency (provided that the disclosing party shall give prompt
      notice to the non-disclosing party of such order to the extent such notice
      is
      not prohibited by such order) and shall not apply with respect to information
      which (i) is developed by the other party without violating the disclosing
      party’s proprietary rights; (ii) is or becomes publicly known (other than
      through unauthorized disclosure); (iii) is disclosed by the owner of such
      information to a third party free of any obligation of confidentiality; (iv)
      is
      already known by such party without an obligation of confidentiality other
      than
      pursuant to this Agreement or any confidentiality agreements entered into
      between the parties before the effective date of this Agreement; or (v) is
      rightfully received by a party free of any obligation of
      confidentiality.  If the GLBA, the regulations promulgated by the
      Securities and Exchange Commission thereunder or other applicable law now or
      hereafter in effect imposes a higher standard of confidentiality to the
      Confidential Information, such standard shall prevail over the provisions of
      this Paragraph.

     

    
 

    
      
        
        

      

      
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    24.3           Broker
      acknowledges that the services Pershing provides hereunder involve Broker access
      to proprietary technology, trading and other systems, and that techniques,
      algorithms and processes contained in such systems constitute trade secrets
      and
      shall be safeguarded by Broker, and that Broker shall exercise reasonable care
      to protect Pershing’s interest in such trade secrets.  Broker agrees
      to make the proprietary nature of such systems known to those of its
      consultants, staff, agents or clients who may reasonably be expected to come
      into contact with such systems.  Broker agrees that any breach of this
      confidentiality provision may result in its being liable for damages as provided
      by law.

    

    24.4           Paragraphs
      24.1 through 24.3 shall survive the termination of this Agreement.

    

    

    25.0           ACTION
      AGAINST CUSTOMERS BY PERSHING

    

    Pershing
      may, in its sole discretion
      and at its own expense and, upon written notice to Broker, institute and
      prosecute in its name any action or proceeding against any of Broker’s customers
      in relation to any controversy or claim arising out of Pershing’s transactions
      with Broker or with Broker’s customers.  Nothing contained in this
      Agreement shall be deemed either (i) to require Pershing to institute or
      prosecute such an action or proceeding; or (ii) to impair or prejudice its
      right
      to do so, should it so elect, nor shall the institution or prosecution of any
      such action or proceeding relieve Broker of any liability or responsibility
      which Broker would otherwise have had under this Agreement.  Broker
      assigns to Pershing its rights against its customer as necessary to effectuate
      the provisions of this Paragraph.

    

    26.0           NOTICES

    

    Any
      Notice required or permitted to be
      given under this Agreement shall be sufficient only if it is in writing and
      sent
      by hand or by certified mail, return receipt requested, to the parties at the
      following address:

    

    Broker:

    Broadpoint
      Securities, Inc.

    One
      Penn
      Plaza, 42d Floor

    New
      York,
      New  York  10119

    Attn:
      Rob
      Fine, President

    Cc:  General
      Counsel

    

    Pershing:

    Pershing
      LLC

    One
      Pershing Plaza

    Jersey
      City, NJ  07399

    Attn:  Mr.
      Michael Row, Managing Director

    cc:      Legal
      Department

     

    
 

    
      
        
        

      

      
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    27.0           ARBITRATION

    

    27.1           Arbitration
      Requirement.  Any dispute between Broker and Pershing that cannot
      be settled shall be taken to arbitration as set forth in Paragraph 27.3
      below.

    

    27.2           ARBITRATION
      DISCLOSURE.

    

    
      	
               

            	
              o

            	
              ARBITRATION
                IS FINAL AND BINDING ON THE
                PARTIES.

            

    

    

    
      	
               

            	
              o

            	
              THE
                PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDIES IN COURT, INCLUDING
                THE
                RIGHT TO JURY TRIAL.

            

    

    

    
      	
               

            	
              o

            	
              PRE-ARBITRATION
                DISCOVERY IS GENERALLY MORE LIMITED THAN AND DIFFERENT FROM COURT
                PROCEEDINGS.

            

    

    

    
      	
               

            	
              o

            	
              THE
                ARBITRATORS’ AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL
                REASONING AND ANY PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF
                RULINGS BY THE ARBITRATORS IS STRICTLY
                LIMITED.

            

    

    

    
      	
               

            	
              o

            	
              THE
                PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS
                WHO
                WERE OR ARE AFFILIATED WITH THE SECURITIES
                INDUSTRY.

            

    

    

    27.3           ARBITRATION
      AGREEMENT.

    

    ANY
      CONTROVERSY BETWEEN US ARISING OUT OF YOUR BUSINESS OR THIS AGREEMENT SHALL
      BE
      SUBMITTED TO ARBITRATION CONDUCTED BEFORE THE NEW YORK STOCK EXCHANGE, INC.,
      OR
      FINRA DISPUTE RESOLUTION, INC. (OR THEIR SUCCESSOR FIRMS), AND IN ACCORDANCE
      WITH THE RULES THEN OBTAINING OF THE SELECTED ORGANIZATION AND SHALL BE
      CONDUCTED AS A BROKER TO BROKER OR MEMBER VS MEMBER
      DISPUTE.  ARBITRATION MUST BE COMMENCED BY SERVICE UPON THE OTHER
      PARTY OF A WRITTEN DEMAND FOR ARBITRATION OR A WRITTEN NOTICE OF INTENTION
      TO
      ARBITRATE, THEREIN ELECTING THE ARBITRATION TRIBUNAL.

    

    NO
      PERSON
      SHALL BRING A PUTATIVE OR CERTIFIED CLASS ACTION TO ARBITRATION, NOR SEEK TO
      ENFORCE ANY PRE-DISPUTE ARBITRATION AGREEMENT AGAINST ANY PERSON WHO HAS
      INITIATED IN COURT A PUTATIVE CLASS ACTION AND WHO IS A MEMBER OF A PUTATIVE
      CLASS AND WHO HAS NOT OPTED OUT OF THE CLASS WITH RESPECT TO ANY CLAIMS
      ENCOMPASSED BY THE PUTATIVE CLASS ACTION UNTIL: (i) THE CLASS CERTIFICATION
      IS
      DENIED; (ii) THE CLASS IS DECERTIFIED; OR (iii) THE CUSTOMER IS EXCLUDED FROM
      THE CLASS BY THE COURT.  SUCH FORBEARANCE TO ENFORCE AN AGREEMENT TO
      ARBITRATE SHALL NOT CONSTITUTE A WAIVER OF ANY RIGHTS UNDER THIS AGREEMENT
      EXCEPT TO THE EXTENT STATED HEREIN.

    

    

    
      
        
        

      

      
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    28.0           INJUNCTIVE
      RELIEF

    

    In
      the event of a breach or threatened
      breach of any of the provisions of this Agreement a party,  or any
      employee or representative of such party, such party acknowledges that the
      other
      party shall be entitled to seek preliminary and permanent injunctive relief
      to
      enforce the provisions hereof.  In addition, both parties acknowledges
      that a breach of the terms regarding confidentiality of information and
      ownership of the other party’s intellectual property would cause irreparable and
      incalculable damage to such party.  Nothing herein shall preclude the
      parties from pursuing any action or other remedy for any breach or threatened
      breach of this Agreement, all of which shall be cumulative.

    

    

    29.0           GENERAL
      PROVISIONS

    

    29.1           Successors
      and Assigns.  This Agreement shall be binding upon and shall inure
      to the benefit of the respective successors and assigns of Broker and
      Pershing.  Except to an affiliate with a a net capital amount similar
      to Broker or Pershing respectively, no assignment of this Agreement or any
      rights, including those to indemnification hereunder by either party shall
      be
      effective unless the other party’s written consent shall be first
      obtained.

    

    29.2           Severability.  If
      any provision of this Agreement shall be held to be invalid or unenforceable,
      the validity or enforceability of the remaining provisions and conditions shall
      not be affected thereby.

    

    29.3           Counterparts.  This
      Agreement may be executed in one or more counterparts, all of which taken
      together shall constitute a single agreement.

    

    29.4           Entire
      Agreement Amendments and Duties Not Specifically Enumerated
      Herein.   This Agreement represents the entire agreement
      between the parties with respect to the subject matter contained herein and
      all
      prior discussions, agreements, and promises, written or oral, are merged
      herein.  This Agreement may not be changed orally, but only by an
      agreement in writing signed by the parties.  Pershing shall not be
      responsible or liable for failure to perform any duties not specifically
      enumerated herein.

    

    29.5           Captions.  Captions
      herein are for convenience only and are not of substantive effect.

    

    29.6           Choice
      of Law.  This Agreement shall be governed by and construed in
      accordance with the internal laws of the State of New York, without giving
      effect to the conflicts of laws or principles thereof.  This Agreement
      shall not be governed by the United Nations Convention on the International
      Sale
      of Goods.

     

    
 

    
      
        
        

      

      
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    29.7           Citations.  Any
      reference to the rules or regulations of the SEC, FINRA, the NYSE, or any other
      regulatory or self-regulatory organization are current citations.  Any
      changes in the citations (whether or not there are any changes in the text
      of
      such rules or regulations) shall be automatically incorporated
      herein.

    

    29.8           Construction
      of Agreement.  Neither this Agreement nor the performance of the
      services hereunder shall be considered to create a joint venture or partnership
      between Pershing and Broker or between Broker and other brokers for whom
      Pershing may perform the same or similar services.

    

    29.9           Third-Parties.  This
      Agreement is between the parties hereto and is not intended to confer any
      benefits on third-parties including, but not limited to, customers of
      Broker.

    

    29.10         Non-Exclusivity
      of Remedies.  The enumeration herein of specific remedies shall
      not be exclusive of any other remedies.  Any delay or failure by a
      party to this Agreement to exercise any right, power, remedy, or privilege
      herein contained, or now or hereafter existing under any applicable statute
      or
      law, shall not be construed to be a waiver of such right, power, remedy, or
      privilege.  No single, partial, or other exercise of any such right,
      power, remedy, or privilege shall preclude the further exercise thereof or
      the
      exercise of any other right, power, remedy, or privilege.

    

    29.11         SIPA;
      Rule 15c3-3.  All introduced customers are the customers of Broker
      except as provided under the Securities Investor Protection Act (“SIPA”) and SEC
      financial responsibility rules where the customers shall be considered customers
      of Pershing.  Nothing in this Paragraph will otherwise change or
      affect the provisions of this Agreement which provide that the customer account
      remains Broker’s customer account for all other purposes, including but not
      limited to, supervision, suitability and indemnification.

    

    29.12         United
      States Postal Service Documents.  Broker hereby appoints Pershing
      as its attorney-in-fact for the purpose of executing such documents as are
      necessary to allow Broker and its customers to participate in the FASTforward
      program of the United States Postal Service.  This may include, but
      not be limited to Pershing’s execution, on an annual basis, on Broker’s behalf,
      of the FASTforward Processing Acknowledgment Form.

    

    29.13         Provision
      of Reports and Exception Reports.  Beginning on or before the
      effective date of this Agreement and before July 31 of each calendar year
      thereafter, Pershing shall provide to Broker, pursuant to NYSE Rule 382(e),
      a
      list of all reports (e.g. exception-type reports) it offers to
      Broker.  Broker shall promptly advise Pershing, in writing, of those
      specific reports it elects to receive.  Pershing and Broker each
      represent that their obligations relative to exception reports, pursuant to
      NYSE
      Rule 382(e) have been completed.

    

    29.14         Force
      Majeure.  Pershing shall not be liable for any loss caused,
      directly or indirectly, resulting from any circumstances beyond its reasonable
      control, including without limitation, labor disputes, riots, sabotage,
      insurrection, fires, flood, storm, explosions, earthquakes, electrical power
      failures, telecommunications system failures, Internet failure, outbreaks of
      computer viruses, worms, parasites and the like, acts of God or nature, war,
      both declared or undeclared, or acts of terrorism (each a “Force Majeure Event”;
      collectively, “Force Majeure Events”).  In addition, Pershing shall
      not be liable for any loss caused, directly or indirectly, resulting from the
      acts or omissions of third parties over which it has no control.

    

    29.15         Audio
      Taping of Telephone Conversations.  Each party understands that
      for quality control, dispute resolution or other business purposes, the parties
      may record some or all telephone conversations between them.  Each
      party hereby consents to such recording and will inform its employees,
      representatives and agents of this practice.  It is further understood
      that all such conversations are deemed to be solely for business
      purposes.

    

    

    
      
        
        

      

      
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    30.0         OWNERSHIP
      AND LICENSES

    

    30.1         Definitions.  For
      purposes of this Paragraph 30, the following terms have the meanings ascribed
      to
      them.

     

    “Access
      Device” means any type of computer,
      personal digital assistant (PDA), beeper, television, telephone or any other
      communications device, including, without    limitation, any
      software Broker uses on such device whether Pershing provided such software
      to
      Broker or otherwise, that enables Broker to access and use the Pershing Services
      via a wired or wireless connection to any wireless network, the Internet, the
      World Wide Web or any other computer or telecommunications network.

    

    “Authorized
      User” means each customer, employee and/or agent of Broker designated as
      authorized by Broker to access the Software, Systems and Services.

     

    “Identification
      Devices” means any passwords, codes, certificates, and other identification
      devices and security processes or measures necessary to access and use the
      Systems and Software.

     

    “Intellectual
      Property Rights” with respect to any intellectual property means all applicable
      copyrights (including without limitation, the exclusive right to reproduce,
      distribute copies of, display and perform the copyrighted work and to prepare
      derivative works), rights in trademarks,  rights in patents and patent
      applications, tradenames, mask-work rights, trade secrets, moral rights,
      authors’ rights, domain names and universal resource locators (“URLs”), TCP/IP
      addresses, metatags, all renewal and extensions thereof, and the like,
      regardless of whether any  such rights arise under the laws of the
      United States, or any other state, country or jurisdiction.

     

    “Services”
      or “Pershing Services” means the services to be provided by Pershing and/or its
      Third Party Providers to Broker under this Agreement, including Internet-based
      services, through the Software and Systems, including, without limitation,
      (a)
      communication and content services, (b) access to account and financial
      information, (c) securities trading, and other services to be provided by
      Pershing to Broker under this Agreement.

     

    “Software”
      means the software, including, without limitation, any and all documentation,
      home page design(s), methodologies, techniques, know-how and software libraries,
      and the code comprising the same, as such may be revised from to time to include
      any upgrades, updates, new versions and other modifications, improvements and
      enhancements made by or for Pershing in accordance with this
      Agreement.

     

    “Systems”
      means the data access, account information, trading and order entry, and report
      generation systems, and related know-how, as such may be revised from to time
      to
      include any upgrades, updates, new versions and other modifications,
      improvements and enhancements made by or for Pershing in accordance with this
      Agreement.

    

    “Third
      Party Providers” means Pershing’s suppliers, vendors or providers that have
      entered into third-party agreements with Pershing.

    

    30.2    License
      to
      Use Systems and Software.  Pershing hereby grants to Broker a
      non-exclusive, non-transferable, non-assignable license for the term of this
      Agreement to access and use the Software and Systems for the limited purpose
      of
      enabling Broker to obtain the Services.  Pershing shall have the right
      to terminate or suspend such license and the provision of the Systems and
      Software to Broker in the event of breach of this Agreement that is not cured
      within thirty (30) days of Brokers’ receipt of Pershing’s notice of such
      breach.

     

     

    
      
        
        

      

      
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    30.3    No
      Reverse Engineering.  Broker shall not, directly or indirectly,
      modify the features or functionality of, copy or create derivative works using
      all or any portion of, analyze or remove semiconductor components from,
      decompile, or otherwise reverse engineer or attempt to reverse engineer or
      derive source code, techniques, algorithms or processes from the Systems or
      Software or permit or encourage any third-party to do so.

     

    30.4   
      Ownership.  Except for the license granted in
      Paragraph 30.2 herein, nothing herein shall be construed to transfer to Broker
      any rights, title and/or interest in and to the Software, Systems and Services,
      including, without limitation, the Intellectual Property Rights
      therein.  Except to the extent that any Intellectual Property Rights
      in the Software, Systems and Services are published or otherwise matters of
      public record, the Systems and Software Products are trade secrets of Pershing
      and its affiliates.  As between Broker and Pershing, Pershing shall at
      all times be and remain the sole and exclusive owner of the Systems, Software
      and Services.

     

    30.5    Web-based
      Communications.  The Services shall be provided through various
      means, including, without limitation, a site or pages of a site on the World
      Wide Web that are accessible through an Internet address unique to Broker,
      but
      which shall not be required to be a domain name unique to Broker.

     

    30.6    Revisions
      and Modifications.  From time to time during the term of this
      Agreement Pershing may in its sole and absolute discretion revise or modify
      any
      Software, Systems or Services to include any patches, upgrades, updates, new
      versions and other modifications, improvements and enhancements made by or
      for
      Pershing (any of which patches, upgrades, updates, new versions and other
      modifications, improvements and enhancements are collectively referred to in
      this Agreement as “revisions and modifications” or “revisions or modifications”,
      as the context requires).  To the extent that any such revisions or
      modifications are made, Schedule A shall be deemed to be revised to include
      such
      revision or modification and any associated fees only upon reasonable prior
      written notice of such revisions or modifications to Broker. (Associated fees
      under this section shall not be increased more than 10% unless such fees relate
      to regulatory or security related upgrades).

     

    30.7    Business
      Continuity.   Pershing agrees to maintain a written
      business continuity plan identifying procedures relating to an emergency or
      significant business disruption in accordance with applicable industry
      regulations.

     

    30.7.1  Pershing
      shall, from time to time,
      provide Broker with Identification Devices for accessing and using the Software,
      Systems and Services.

     

    30.7.2  Broker
      shall be responsible for
      designating Authorized Users.  [Broker shall provide Pershing with a
      list of Authorized Users so designated by Broker and shall provide Pershing
      with
      changes to this list.]

     

    30.7.3  Broker
      shall be solely responsible for
      the assignment and distribution to Authorized Users, and the maintenance of
      all
      Identification Devices.  Broker agrees not to assign and/or distribute
      any Identification Devices to individuals who are not Authorized
      Users.

     

    30.7.4  Each
      party shall be responsible for and
      shall provide the same level of security as it applies to its own proprietary
      and confidential property in the protection, maintenance, and distribution
      of
      those Identification Devices and codes within its organization and to its agents
      and customers, but in no case less than the security that a reasonably prudent
      person would use to protect their own proprietary and confidential
      property.

     

     

    
      
        
        

      

      
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    30.7.5           Broker
      shall
      report to Pershing any loss, theft, or discovery of any Identification Devices
      immediately and Broker shall be responsible for any unauthorized use, and for
      any loss resulting from unauthorized use, of any Identification Device
      attributable to Broker prior to the time the loss, theft, or discovery of the
      Identification Device is reported to Pershing.

     

    30.8          Restrictions
      on Access, Viewing and Distribution.

     

    30.8.1  Quotes,
      news and research data, including market information (collectively, “Market
      Data”) displayed on the Pershing Service may be based on or derived from
      different Third Party Providers and may be updated at different time intervals,
      and accordingly, the various trade status reports, including intraday updates
      of
      balances and positions information, available via any Access Devices, which
      incorporate such Market Data information, may differ due to the different Market
      Data and sources and their update intervals.  Similarly, different
      Access Devices may incorporate different Market Data and sources, and they
      may
      differ for the same reasons.

    

    30.8.2  The
      Software, Systems, and design of the Pershing Service are the property of
      Pershing.  The content, including both its form and substance,
      included in the Pershing Service is the property of either Pershing or one
      or
      more of its Third Party Providers (“Third Party Provider
      Services”).  Broker shall have no rights in or to the Software,
      Systems, or Pershing Service or Third Party Provider Services, except as
      expressly provided herein, and Broker agrees not to take any action inconsistent
      with Pershing’s rights in the Software, Systems, or Pershing Service or the
      Third Party Providers’ rights in their Third Party Provider
      Services.

    

    30.8.3  All
      of
      the materials in the Pershing Service are protected by United States and
      international copyright, trademark and other intellectual property
      laws.  Broker’s right to use the Pershing Service, including the Third
      Party Provider Services, is limited to use in connection with Broker’s
      account(s) and for Broker’s personal benefit only (“Internal
      Use”).  Broker may not modify, rent, lease, loan, sell, assign,
      distribute, display, perform, publish or create derivative works based on any
      of
      the content, materials or the like contained in the Pershing Service, in whole
      or in part.  Broker may not copy, modify, create derivative works
      from, reverse engineer, reverse assemble or otherwise attempt to discover the
      source code of any software or techniques, algorithms or processes that are
      part
      of the Pershing Service.  Broker may print out a reasonable number of
      copies of the materials on the Pershing Service as is necessary for Broker’s
      Internal Use, provided that Broker does not delete any copyright, trademark
      or
      other intellectual property notices contained in such
      materials.  Broker may prepare hard copy reports incorporating Third
      Party Provider Services and download Third Party Provider Services into
      commercially available spreadsheet software programs or delimited text files;
      Broker may not, however, disseminate in electronic form or use Third Party
      Provider Services for the construction of other products or
      services.

    

    30.8.4  Broker
      acknowledges and agrees that the license to use the Software, Systems and
      Services granted by Paragraph 30.2 does not diminish Broker’s responsibility for
      compliance with all applicable rules as set forth in Paragraph 6 of this
      Agreement.

     

    30.9  Indemnification;
      Disclaimers.

     

    30.9.1  Pershing
      shall indemnify, defend, and
      hold Broker harmless from and against all claims, demands, proceedings, suits,
      actions, liabilities, expenses, and reasonable attorney’s fees, and costs in
      connection therewith (collectively, “Losses”) arising out of a claim that the
      Software and/or Systems, or Broker’s authorized use thereof, as set forth in
      this Agreement, infringes upon any Intellectual Property Rights of any third
      party.  This Paragraph 30.9.1 shall survive any termination of this
      Agreement; provided, however, that any indemnity provided under this
      Paragraph 30.9.1 shall only be in respect of events occurring during the term
      of
      this Agreement.

     

     

    
      
        
        

      

      
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    30.9.2  Broker
      shall not be entitled to any
      indemnification under Paragraph 30.9.1 hereof to the extent that the Losses
      in
      respect of which such indemnification is sought is attributable to Broker’s
      negligent activities and/or misuse of Pershing Services, as set forth in this
      Agreement (“Unauthorized Use”) or to the extent of such Losses due to a delay in
      providing notice of the circumstances giving rise to such
      Losses.  Broker shall indemnify, defend, and hold Pershing harmless
      from and against all claims, demands, proceedings, suits, actions, liabilities,
      expenses, and reasonable attorney’s fees, and costs in connection therewith
      (collectively, “Losses”) arising out of such negligent activities by Broker,
      Broker’s Unauthorized Use of Pershing Services or such delay by Broker in
      providing such notice.  This Paragraph 30.9.2 shall survive any
      termination of this Agreement.

     

    
      	
              30.9.3  

            	
              DISCLAIMER
                OF WARRANTIES FOR
                INFORMATION.

            

    

    

    THE
      PERSHING SERVICE IS PROVIDED ON AN
“AS IS”, “AS AVAILABLE” BASIS, WITHOUT WARRANTY OF ANY KIND, TO THE MAXIMUM
      EXTENT PERMITTED BY APPLICABLE LAW.  PERSHING DISCLAIMS ALL
      WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF
      MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
      NON-INFRINGEMENT.  THERE IS NO WARRANTY THAT ANY INFORMATION PROVIDED
      THROUGH PERSHING, THE PERSHING SERVICE OR THE SYSTEM WILL FULFILL ANY PARTICULAR
      PURPOSES OR NEEDS.

    

    
      	
              30.9.4  

            	
              LIMITATION
                OF LIABILITY; DATA NOT
                GUARANTEED.

            

    

    

    TO
      THE MAXIMUM EXTENT PERMITTED BY
      APPLICABLE LAW AND EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, IN NO EVENT
      SHALL PERSHING, ANY OF ITS AGENTS, AFFILIATES, THIRD PARTY PROVIDERS OR ANYONE
      ELSE INVOLVED IN CREATING, PRODUCING, DELIVERING OR MANAGING THE DELIVERY OF
      THE
      PERSHING SERVICE BE LIABLE TO BROKER OR ANYONE ELSE FOR ANY DIRECT, INDIRECT,
      INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE OR ANY OTHER DAMAGES WHATSOEVER
      (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOST PROFITS, TRADING LOSSES, DAMAGES
      RESULTING FROM INCONVENIENCE OR LOSS OF USE OF THE WEB SITE), EVEN IF THEY
      HAVE
      BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF THE USE OF
      OR
      INABILITY TO USE THE PERSHING SERVICE OR FOR ANY BREACH OF ANY
      WARRANTY.

    

    Quotes,
      news and research data,
      including market information displayed on any Access Device (collectively,
      “Market Data”) are obtained from sources Pershing believes to be
      reliable.  HOWEVER, ALL MARKET DATA IS PROVIDED “AS IS” AND
“AS AVAILABLE”, AND THERE MAY BE DELAYS, OMISSIONS AND INACCURACIES IN SUCH
      DATA.  NEITHER PERSHING NOR ITS AGENTS, AFFILIATES, OR THIRD PARTY
      PROVIDERS OR ANYONE ELSE INVOLVED IN CREATING, PRODUCING, DELIVERING OR MANAGING
      THE DELIVERY OF SUCH DATA, INFORMATION OR SERVICES (COLLECTIVELY, THE
      (“Disseminating Parties”) CAN GUARANTEE, NOR DO PERSHING OR THEY GUARANTEE, THE
      CORRECTNESS, QUALITY, ACCURACY, SEQUENCE, TIMELINESS, CURRENTNESS, RELIABILITY,
      PERFORMANCE, COMPLETENESS, CONTINUED AVAILABILITY, MERCHANTABILITY, FITNESS
      FOR
      A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT OR OTHERWISE OF ANY MARKET
      DATA
      OR THIRD PARTY PROVIDER SERVICES, AND PERSHING AND THEY HEREBY DISCLAIM ANY
      SUCH
      EXPRESS OR IMPLIED WARRANTIES.  Pershing also reserves the
      right to filter the Market Data provided to Broker through the Pershing
      Service.  The Disseminating Parties shall not be liable to Broker or
      to anyone else for any loss or injury, whether or not caused in whole or in
      part
      by their negligence or omission, in procuring, compiling, editing, writing,
      reporting or delivering any Market Data or Third Party Provider Services through
      Pershing or by any Force Majeure Event or other cause beyond their
      control.  The Disseminating Parties will not be liable to Broker or
      anyone else for any decision made or action taken by Broker in reliance on
      such
      Market Data or for direct, indirect, incidental, special, consequential,
      punitive or any other damages whatsoever (including without limitation damages
      for lost profits, trading losses, damages resulting from inconvenience or loss
      of use of the Pershing Service) even if Pershing or its Third Party Providers
      have been advised of the possibility of such damages.

     

    
 

    
      
        
        

      

      
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           Except
      as otherwise
      provided in this Agreement, Broker agrees that neither Pershing, nor its Third
      Party Providers shall be liable in any way for, any liability, costs, damages
      or
      loss caused directly or indirectly by government restrictions, exchange or
      market rulings, suspension or delay of trading, equipment failure, communication
      line failure, system failure, security failure, unauthorized access, theft,
      Force Majeure Event or any problem, technological or otherwise, that might
      prevent Broker from accessing or utilizing the Services.

     

          IN
      WITNESS WHEREOF the parties have hereto affixed their signatures by their duly
      authorized officers on the day and date first above written.

     

         
This
      Agreement contains a pre-dispute arbitration clause in Paragraph
      27.  Broker acknowledges receiving a copy of this
      Agreement.

    

    

    
      	
              Broadpoint
                Securities, Inc:

            
	 
	
              By:   
                Rob Fine           /s/
                Rob Fine

            
	
              Title: President

            
	 
	
              PERSHING
                LLC

            
	 
	
              By:   
                James Roundtree        
                 /s/James Roundtree

            
	
              Title: Director

            

    

    

    

    

     

    
 

     

     

     

     

    
      
        
        

      

      
        Page
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          35memintpuragr042808.htm

     

     

    
      

      

    

    Exhibit 10.1

     

     

    MEMBERSHIP
INTEREST PURCHASE AGREEMENT

     

               THIS
MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”) is made
as of this 22nd day of
April, 2008, by and between LEAF Funding, Inc., a Delaware corporation (“Seller”), and LEAF
Equipment Leasing Income Fund III, L.P., a Delaware limited partnership (“Buyer”).

     

    BACKGROUND

     

    A.           Seller
owns 51% of the membership interests in LEAF Funding, LLC, a Delaware limited
liability company (“LLC”).

     

    B.           Buyer
acquired 49% of the membership interests of LLC from Seller pursuant to a
membership interest purchase agreement dated as of February 1,
2008.

     

    C.           Seller
desires to sell and Buyer desires to purchase the remaining 51% of the
membership interests of LLC pursuant and subject to the terms and conditions set
forth herein.  The foregoing membership interests to be transferred
from Seller to Buyer as of the date hereof are sometimes hereinafter called the
“Transferred
Interests.”  Upon
receipt of the Transferred Interests, Buyer shall own 100% of the membership
interests of LLC.

     

    AGREEMENT

     

               NOW,
THEREFORE, in consideration of the premises and the mutual promises and
covenants contained herein, Buyer and Seller, intending to be legally bound,
hereby agree as follows:

     

    1.           Sale and Purchase of Transferred
Interests.  Upon the terms and subject to the conditions set
forth in this Agreement, Seller hereby irrevocably sells, assigns, transfers and
delivers to Buyer, and Buyer hereby purchases, all of Seller’s right, title and
interest in and to the Transferred Interests, free and clear of all liens,
encumbrances, security interests, pledges, options, claims and rights of others
of any nature whatsoever.

     

    2.           Purchase
Price.

     

    (a)           The
purchase price of the Transferred Interests shall be an amount equal to
fifty-one percent (51%) of the difference between the LLC’s cost of acquiring
and holding the Investment (as such term is defined in the Amended and Restated
Agreement of Limited Partnership of Buyer) (as determined under United States
generally accepted accounting principles and as adjusted for any income
received, capital or investment returned and reasonable and necessary expenses
paid or incurred while holding the Investment) and the liabilities to which the
foregoing are subject (the “Purchase
Price”).  On the date hereof, Buyer shall pay Seller EIGHT
MILLION SIX HUNDRED SEVENTY-SEVEN THOUSAND NINE HUNDRED AND SIXTY-FIVE DOLLARS
AND NINETY-FOUR CENTS ($8,677,965.94) (the “Closing Date
Payment”), which is the amount Buyer and Seller estimate to be the
Purchase Price.

     

    (b)           As
promptly as practicable, but no later than thirty (30) days from the date
hereof, Seller shall deliver to Buyer sufficient financial information to
determine the Purchase Price.  If the Closing Date Payment is less
than the Purchase Price, Buyer shall pay to Seller, in the
manner and with interest as provided in Section 2(c), the
amount of such shortfall and, if the Closing Date Payment exceeded the Purchase
Price, Seller shall pay to Buyer, in the manner and with interest as provided in
Section 2(c),
the amount of such excess.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)           Any
payment pursuant to Section 2(b) shall be
made at a mutually convenient time and place within two (2) business days after
the Purchase Price has been determined.  The amount of any payment to
be made pursuant to Section 2(b) shall
bear interest from and including the date hereof to but excluding the date of
payment at a rate per annum equal to six percent (6%).

     

    3.           Costs.  Buyer
and Seller shall be solely responsible for their own respective costs and
expenses (including without limitation legal and accounting fees) incurred in
connection with the transactions contemplated by this Agreement.  It
is acknowledged that there will be no broker’s commission, finder fee or similar
fee payable in connection with this transaction.

     

    4.           Further
Assurance.  At any time and from time to time after the date
hereof, Buyer or Seller shall promptly execute and deliver all such further
agreements, certificates, instruments and documents, or perform such further
actions, as may be requested, in order to fully consummate the transactions
contemplated hereby regarding the sale of the Transferred Interests and carry
out the purposes and intent of this Agreement.

     

    5.           Entire
Agreement.  This Agreement and the other documents referred to
herein constitute the entire agreement among the parties hereto with respect to
the subject matter hereof and supersede all other prior and contemporaneous
agreements and undertakings among the parties (whether oral or written) with
respect to its subject matter.

     

    6.           Parties in
Interest.  This Agreement is binding upon, inures to the
benefit of, and is enforceable by the parties hereto, and their respective
heirs, executors, personal representatives, successors and
assigns.  No party hereto may assign its or his rights or delegate its
or his obligations hereunder without the written consent of the other party
hereto.

     

    7.           Headings.  The
Section headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this
Agreement.

     

    8.           Severability.  Any
provision of this Agreement which is invalid, illegal, or unenforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective only to the extent
of such invalidity, illegality or unenforceability, without in any way affecting
the remaining provisions hereof in such jurisdiction or rendering that or any
other provision of this Agreement invalid, illegal or unenforceable in any other
jurisdiction.

     

    9.           Governing
Law.  This Agreement shall be construed and enforced in
accordance with, and governed by, the laws of the State of Delaware, without
giving effect to the conflict of laws provisions thereof.

     

         
10.           Waiver.  No
delay on the part of any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver on the part of
any party of any right, power or privilege hereunder, or any single or partial
exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11.           Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same
document.  Confirmation of execution by electronic transmission of a
facsimile signature page shall be binding upon any party so
confirming.

     

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

     

     

    
      
        	 	SELLER:	 
	 	 	 
	 	LEAF FUNDING,
    INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

    
 

    
       

      
        
          	 	BUYER:	 
	 	 	 
	 	LEAF EQUIPMENT LEASING
      INCOME FUND III, L.P.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 	 
	 	 	Name 	 
	 	 	Title

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