Common use of PERMISSIVE PREPAYMENTS Clause in Contracts

PERMISSIVE PREPAYMENTS. At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" amount hereof prior to the maturity date may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASD, but in no event may any prepayment be mad before the expiation of one year from the date this Agreement became effective. No prepayment shall be made if, after given effect thereto (and to all payments of Payment Obligations under any other subordination agreements then outstanding, the maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or such lesser percent as may be made applicable to the Broker- Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (f) of 17 CFR 240.15c3-1, its net capital would be less than five percent of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account,) if greater, or its net capital would be less 120 percent of the minimum dollar amount required by 17 CFR 240.15c3-1 including paragraph (f), if applicable, or such greater dollar amount as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.

PERMISSIVE PREPAYMENTS. At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" amount hereof prior to the maturity date may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASDDealer, but in no event may any prepayment be mad made before the expiation expiration of one year from the date this Agreement became Became effective. No prepayment shall be made if, after given giving effect thereto (and to all payments of for Payment Obligations under any other subordination agreements then outstanding, the maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or such lesser percent as may be made applicable to the Broker- Broker-Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (fa)(1)(ii) of 17 CFR 240.15c3-1, its net capital would be less than five percent of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, thereunder (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account,) ), if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR 240.15c3-1 including paragraph (fa)(1)(ii), if applicable, or such greater dollar amount as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.

PERMISSIVE PREPAYMENTS. At the A broker or dealer at its option of the Broker-Dealer, but not at the option of the Lenderlender may, payment if the subordination agreement so provides, make a Payment of all or any part portion of the "Payment Obligation" amount hereof Obligation thereunder prior to the scheduled maturity date may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASDsuch Payment Obligation (hereinafter referred to as a “Prepayment”), but in no event may any prepayment Prepayment be mad made before the expiation expiration of one year from the date this Agreement such subordination agreement became effective. This restriction shall not apply to temporary subordination agreements that comply with the provisions of paragraph (c)(5) of this section. No prepayment Prepayment shall be made made, if, after given giving effect thereto (and to all payments Payments of Payment Obligations under any other subordination subordinated agreements then outstanding, outstanding the maturity or accelerated maturities of which are scheduled to fall due either within six months after the date such prepayment Prepayment is to occur pursuant to this provision or on or prior to the date on which the Payment Obligation hereof in respect of such Prepayment is scheduled to maturemature disregarding this provision, whichever date is earlier), ) without reference to any projected profit or loss of the Broker-Dealerbroker or dealer, either aggregate indebtedness of the Broker-Dealer broker or dealer would exceed 1000 percent of its net capital or such lesser its net capital would be less than 120 percent as may be made applicable to of the Broker- Dealer from time to time minimum dollar amount required by § 240.15c3-1 or, in the NASD, case of a broker or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is dealer operating pursuant to paragraph (f) of 17 CFR § 240.15c3-11(a)(1)(ii), its net capital would be less than five 5 percent of its aggregate debit items computed in accordance with 17 CFR § 240.15c3-3a, or if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, thereunder (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the each such deduction for each option customer shall be limited not to exceed the amount of customer funds in such the option customer's account,) ), if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR § 240.15c3-1 including paragraph (f1(a)(1)(ii), if applicableor if, in the case of a broker or such greater dollar amount as may dealer operating pursuant to § 240.15c3- 1(a)(10), its net capital would be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.less than 120 percent of its minimum requirement. (b)(7) MINIMUM REQUIREMENTS FOR SUBORDINATION AGREEMENTS (continued)

PERMISSIVE PREPAYMENTS. (OPTIONAL) --------------------------------- (a) Prepayment of balances outstanding less than 12 months ------------------------------------------------------ At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" an Advance amount hereof prior to the maturity date of the Advance may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASD, but in no event may any prepayment be mad before the expiation of one year from the date this Agreement became effective. No prepayment shall be made if, after given giving effect thereto (and to all payments of any other Payment Obligations (as defined herein) under any other subordination agreements then outstanding, the maturity or accelerated maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Advance hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 900% of its net capital or such lesser percent as may be made applicable to the Broker-Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (a(1)(ii) of 17 CFR 240.15c3-l, its net capital would be less than 6% of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or, if registered as a futures commission merchant, 10% of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account), if greater, or its net capital would be less than 200% of the minimum dollar required by 17 CFR 240.15c3-1 including paragraph (a)(1)(ii), if applicable, or pretax losses during the latest three-month period equaled more than 15% of current excess net capital, or any other requirement as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority. (b) Prepayment of balances outstanding longer than 12 months -------------------------------------------------------- At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of an Advance amount prior to the maturity date of the Advance (but at least 12 months after the Advance was received) may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASD. No prepayment shall be made if, after giving effect thereto (and all payments of Payment obligations under any other subordination agreements then outstanding, the maturity or accelerated maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or such lesser percent as may be made applicable to the Broker- Broker-Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (fa)(1)(ii) of 17 CFR 240.15c3-1l, its net capital would be less than five 5 percent of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or or, if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, thereunder (less the market value of for commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's customers account,) ), if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR 240.15c3-1 including paragraph (fa)(1)(ii), if applicable, or such greater dollar amount as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having haying appropriate authority. If a prepayment is made of all or any part of the principal hereof prior to the due date of an Advance and if the Broker-Dealer's net capital is less than the amount required to permit such prepayment pursuant to the foregoing provisions of this section, the Lender agrees irrevocably (whether or not the Lender had any knowledge or notice of such fact at the time of such prepayment) to return such prepayment to the Broker-Dealer, its successors, or assigns, the sum so paid to be held by the Broker-Dealer pursuant to the provisions hereof as if such prepayment had never been made.

PERMISSIVE PREPAYMENTS. 3 At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" amount hereof prior to the maturity date may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASDDealer, but in no event may any prepayment be mad made before the expiation expiration of one year from the date this Agreement became Became effective. No prepayment shall be made if, after given giving effect thereto (and to all payments of for Payment Obligations under any other subordination agreements then outstanding, the maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or such lesser percent as may be made applicable to the Broker- Broker-Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (fa)(1)(ii) of 17 CFR 240.15c3-1, its net capital would be less than five percent of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, thereunder (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account,) ), if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR 240.15c3-1 including paragraph (fa)(1)(ii), if applicable, or such greater dollar amount as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.

PERMISSIVE PREPAYMENTS. (OPTIONAL) At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" amount hereof prior to the maturity date Scheduled Maturity Date may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASD, but in no event even may any prepayment be mad made before the expiation expiration of one year from the date this Agreement became effective. No prepayment shall be made if, if after given giving effect thereto thereof (and to all payments of Payment Obligations under any other subordination agreements then outstanding, the maturity or accelerated maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or of loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or such lesser percent as may be made applicable to the Broker- Broker-Dealer from time to time by the NASDNAS, or a governmental agency or of self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (fa)(1)(ii) of 17 CFR 240.15c3-1, its net capital would be less than five 5 percent of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's customers account,) if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR 240.15c3-1 including paragraph (fa)(1)(ii), if applicable, or such greater dollar amount as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.

PERMISSIVE PREPAYMENTS. At the option Option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" amount hereof prior to the maturity date Scheduled Maturity Date may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASD, but in no event may any prepayment be mad made before the expiation expiration of one year from the date this Agreement became effective. No prepayment shall be made if, after given giving effect thereto (and to all payments of Payment Obligations under any other subordination agreements then outstanding, the maturity or accelerated maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or such lesser percent as may be made applicable to the Broker- Broker-Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer is operating pursuant to paragraph (f) of 17 CFR 240.15c3-1, its net capital would be less than five 5 percent of aggregate debit items computed in accordance with 17 CFR 240.15c3-3a, or or, if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account,) if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR 240.15c3-1 including paragraph (f), if applicable, or such greater dollar amount as may be made applicable to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.

PERMISSIVE PREPAYMENTS. At the option of the Broker-Dealer, but not at the option of the Lender, payment of all or any part of the "Payment Obligation" amount hereof prior to the maturity date * INTEREST TO BE PAID QUARTERLY FROM AND AFTER THE EFFECTIVE DATE OF THIS AGREEMENT. may be made by the Broker-Dealer only upon receipt of the prior written approval of the NASD, but in no event may any prepayment be mad made before the expiation expiration of one year from the date this Agreement became effective. No prepayment shall be made if, after given effect thereto (and to all payments of Payment Obligations under any other subordination agreements then outstanding, the maturity of which are scheduled to fall due either within six months after the date such prepayment is to occur or on or prior to the date on which the Payment Obligation hereof is scheduled to mature, whichever date is earlier), without reference to any projected profit or loss of the Broker-Dealer, either aggregate indebtedness of the Broker-Dealer would exceed 1000 percent of its net capital or of such lesser percent as may be made applicable to the Broker- Broker-Dealer from time to time by the NASD, or a governmental agency or self-regulatory body having appropriate authority, or if the Broker-Dealer Broker -Dealer is operating pursuant to paragraph (fa)(1)(ii) of 17 CFR 240.15c3-1, its net capital would be less than five percent of aggregate debit items computed in accordance with 17 CFR 240.15c31240.15c3-3a, or if registered as a futures commission merchant, 7 percent of the funds required to be segregated pursuant to the Commodity Exchange Act and the regulations thereunder, (less the market value of commodity options purchased by option customers on or subject to the rules of a contract market, provided, however, the deduction for each option customer shall be limited to the amount of customer funds in such option customer's account,) if greater, or its net capital would be less than 120 percent of the minimum dollar amount required by 17 CFR 240.15c315c3-1 including paragraph (fa)(1)(ii), if applicable, or such greater dollar amount as may be made applicable appropriate to the Broker-Dealer by the NASD, or a governmental agency or self-regulatory body having appropriate authority.