============= Page 1 of 2 ============= A,. Rwpa as ord.. FR U, t P. lie reporting burdoo for this coUoctnon of information is estimated to avOr.ge LOB eunutoe (0.031 hours) per 0.9.1. No."to0-115 response. including the tine for reviewing instructions. searching ext.ttng data sources, gathering and mamtairng Appneoelrspve. June 30. inns the data needed, and completing and reviewing the collection of information. Send coeasxnta.regarding this burden estimate, including suggestwne for reducing thin burden. La 9eertt nry, Board of Governors of the Federal Reserve Sy.um, 20th and C Streets, N W , Weahington. D.C. 20631: and to the Office of Management and Budget. Paperwork Reduction Project (7100.0116).Wa.hington. D.C. 10603. Board of Governors of the Federal Reserve System Statement of Purpose for an Extension of Credit Secured by Margin Stock NATIONSBANK OF TEXAS, N.A. N..& of gawk (l.d.rai Reserve Form Use 1) This form is required by law (16 U-S.C_ §§78g and 78w; 12 CFR 221). 1. This form must be completed when a book extend. credit In eacas of $100,000 secured directly or Indirectly, In whole or in pert, by any our gin .took. 2. Tie term'maryhn winch s is defined in Reguiatio..U ()2 CPR 22f) and includes, pnindpa 1y; (1)stooka tint are regiatend on a national a.cur- Itie .achaap or that are on the Federal Reserve Board's List of Marginable OTC Stocks; (2) debt securities (boucle) that are convertible Into margin stocks; (3) any aver-dw-cotutter escurity designated as qud- iBed Par trading in du National Market System under a designation plan approved by the Securities and Exchange Commission AIMS so. cority); and (4) shares of mnWal fund., unless 05 per rant of the suet. d' the fund are continuously Invested in U.S. governmant, SNOWY, atN6, or mtmiripal obligations. 3. Plese print or type (if epees is Inadequate, attach .epanste $beN.). Part 1. ft ha c.eapla.dby Mrnwer(s). 1.Whatistheamount ofthecredit being extended? $8,000,000.00 Revolving Loan 2. WUl any part of this credit be used to purchase or carry margin rock? fl Y.a b No Ntllnt answer Is a..! dascrt'b& the epacIRc purpose of the credit. B Us i n es s e_ comme_r_c i s 1 , i n yP s tine n t ar e l nil ] r purposes, other than to purchase, refinance or otherwise carry margin stock or other securities. 1(we) have read this form and Cart* that to the bat of my (our) knowledge the mugin .inch and any other .ecnrltia cell.trrslirdag this credit are and belief the Information gives is true, accurate, and complete. and that authentic, genuine, unaltered, and not atolan. forged, or Counterfeit KLL & LPL INVESTMENTS., LTD. Signed: Slgwd: BY! $y: .9 A/ aKenneth L. Lily, Managi arms Linda Lay, Manes i Partner (hint or Hum Price orTne Name This foes should not be signed is black. A lwrrower who falsely certiiles the purpose of sl.cretilt on this fonts or otherwise willfully or intentionally evades the provis one of ibguloden U will also violate federal Rosorve Reguletieu X, a'Sorrewers of securities Credlt:' o t4e• 179IRw ./92) BOA/FBI/LAY: 27020 BOA/CCSB: 01943 ============= Page 2 of 2 ============= Port ff. T. be aceapld.d by bank OWN NM wrti..* at e/t...dli la e..P•.da.w .r tarry w I. a$.ak jia.rl 1(2) answered 'yes-). 1. Lht the margin stock Am ring thie nadir; do not inductQ debt secur$iaa toavertihle into margin stock. The maailuum loan .Rice of margin atock'ia ..._ per cent 0( ,to currant market value under the currant Supplement' to R.iealatlou U. No. of shares teens ,~ Market price per shaft DRra sad sauna of estuagon (Soraotebdow) Total merkut Wlu.'per ieeue 9, bier the debt somiU. "Imrtlbl..lnto margin each oming this credit.Tha maamum lawn wine oleuch debtsecttritl.a is ...... par Got of.the ctp'eput warketvahn under the curnntSuppkmMtw U. latiadval Ad want Lace Msrhet Price Date end aawvt. of uluatton (See note below) Total market v due per liana 8.hlee mhK coUawrai.(ndudll1g nuimsrgba stock Nearing this credit. flacribebtiellT Afsrketprtce Dapr.ndeoures olealtatioa (Breeteh.low) ()wdbith bare rehte Near. Bank teed not eantt.ta•D».andieura.pfvdustf a' if**norm wh.u$O1alnedMomfew** tttbeakadinformationinaloarariofpeealdted.tbn. Port Ill. ft .k..1Mn.dby.book sf..rInani alsaa.a. I em a daily authorised uSt.r of tht.bunk and undar.tattd tkal his credit .eacarid margin atook mu to .ubj.ol.to the credit reslotiooa of Regu MAIM. have read fail form and am altaaltmeute, said I hose aeeeptad the.cmatain a statement Is part t in good t*b U by .tkno U•, and I certiry that to the but of my kn Idge t~ u fgfat. Motion giver' 10 I'., eeeure*e a.d sand".. Also~y the; lisp are. nwittea .that directly eeewt the emit wool or Will, .ot be. lets to I haw ce wil saw. be kas thrums of the bvrraww air it. aanhaoe, 0V Jdad DINA OF i me e Tit aamlo.d:tbe written ceneaal of thte r gblet d mvnar.Ia ath.e.. curdles...) lea tker testily that any .ecuritles that bars tw *or ell be physically dedeuud to the book in ee...etion with We aad{t have been or 'Ul be wxat)w.d, that ait.wdldetton p.+w+ea~eu..ra~ptired by battle poligr and the Saatrlwe Etchings Act of 1Q94 (actin 17(11 U emended) bare ho ~ena.r wiU be pachme" and that I aa..fia hd to the beat c( and lpow (a Ud- and bW.k~tnsn.tbe .Rk.esdee are Wunne.nd not.tdan.or forged siga.d NATIONS RAS. N.A. By liuthotllare rry8.81111 .rwpdaso "Ib accept the mtatamer:s statinteot h pad .eith, lha officer al the bald; must be alert to ft dreumeances snrrowedhtg.tke raft aerie if In poeaeataa of .aq information tkat wadd e.u.. a person awt to aeoelk t, stetstanmt t+ltkout htgairy, meet haw lu...tipted and be soldied that the ataterneet la tratbtuI Anaoagtladetawhiahw.. r.q%kemuch hrreatlvdanararecslptofrheeletmtentthrc btbetnailaefeamadiirdpartet TTh let essa most b..r htusdt by ib. baeek for N beast Mtn.e years siring ttht credit 1s oxdNquIa sd. BOA/FBULAY: 27021 BOA/CCSB: 01944