============= Page 1 of 2 ============= FR U-1 O.M.B. No. 7100-0115 Approval expires June 30, 1994 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Statement of Purpose for an Extension of Credit Secured By Margin Stock Compass Bank - Houston Name K (Federal Reserve Form U-1) This form is required bylaw (15 U.S.C. §§78Q and 78w; 12 CFR 221). INSTRUCTIONS 1. This form must be completed when a bank extends credit In excess of $100,000 secured directly or indirectly, in whole or in part, by any margin stock. 2. The term 'margin stock' is defined in Regulation U (12 CFR 221) and induces, prineipalty. (1) stocks that are registered on a national securities exchange or that are on the Federal Reserve Board's Ust of Marginable OTC Stocks; (2) debt securities (bonds) that are convertible into margin stoc s; (3) any over-the-counter security designated as qualified for trading in the National Market System under a designation plan approved by the Securities and Exchange Commission (NMS security); and (4) shares of mutual funds, unless 95 per cent of the assets of the fund are continu- ously invested in U.S. government, agency, state, or municipal obligations. 3. Please print or type (if space is inadequate, attach separate sheet), PART I. To be completed by borrower(s). 1. What is the amount of the credit being extended? 1,000,000 2. Will any part of this credit be used to purchase or carry margin stock? O Yes ® No If the answer is 'no,' describe the specific purpose of the credit Personal expenses I (we) have read this form and certify that to the best of my (our) lateraiizing this credit are authentic, genuine, unaltered, and not knowledge and belief the information given is true, accurate, and stolen, forged, or counterfeit complete, and that the margin stocks and any other securities cel- Signed: Si s siQnsture e ~nnaure l e Kenneth v bins n p T Print or Type Name Print or Type Name This form should not be signed in blank. A borrower who falsely certifies the purpose of a credit an this form or otherwise willfully or intentionally evades the provisions of Regulation U will also violate Federal Reserve Regulation X, LAY-G22 0129 "Borrowers of Securities Credit.' FonWlon T.cnnoloc~. Inc. f7t1o1811 (erg? 937-37De GOVERNMENT LBF001-01038 EXHIBIT 137 Crime No. H-04-25 (S-2) ============= Page 2 of 2 ============= PART II. To be completed by bank only if the p se of the credit is to purchase or carry margin stoci 11(2) answered 'yes') List the margin stock securing this credit; do not include debt securities convertible into margin stock. The maximum loan value of margin stock is ..... per cent of its current market value under the current Supplement to Regulation U. No. of shares Issue Market price per share Date and source of valuation (See note below) Total market value per issue 2. List the debt securities convertible Into margin stock securing this credit. The maximum loan value of such debt securities is ..... per cent of the current market value under the current Supplement to Regulation U. Principal amount Issue Market price Date and source of valuation (See note below) Total market value per issue 3. List other collateral including non-margin stock securing this credit Describe briefly Market price Date and source of valuation (See note below) Good faith loan value Non: BanK need not compels 'pate and source or valuation' If the miner vawe was oowned iron reguiarly pubrshed rucanedon in a journal or Q- -W cir- culation. PART 111. To be signed by a bank officer in all instances I am a duty authorized officer of the bank and understand that this credit secured by margin stock may be subject to the credit restho- tions of Regulation U. I have read this form and any attachments, and I have accepted the customer's statement In Part I In good faith as required by Regulation U*, and I certify that .to the best of my knowledge and belief, all the information given is true, so- curate, and complete. I also certify that If any securities that direct- ly secure the credit are not or will not be registered In the name of the borrower or Its nominee, I have or will cause to have examined the written consent of the registered owner to pledge such securities. I further certify that any securities that have been or will be physically delivered to the bank In connection with this credit have been or will be examined, that all validation procedures re- quired by bank policy and the Securities Exchange Act of 1934 (section 17(f), as amended) have been or win be performed, and that I am satisfied to the best of my knowledge and belief that such securities are genuine and not stolen or forged and their faces have not been altered. Doe Senior Vice President Title Sign k itehoese PM or typo note • To accept the customers statement in good faith, the orrlcw of the bank mtlat be alert to the dettarunncn surto ncHng the aeda and, a In possession of any 1NOnnetOn that would cause a prudent person not to accept the statement without Inquiry, must have ktvsagated and be saOrslleo that tie s atement Is M01". Nn-9 the ft= which would require such Invmtlgation am receipt or the statertert through the mall or from a third perty. This form must be retained by the bank for at least three years after the credit is extinguished. LAY-G22 0130 Famwan T.crx clog,.. inc. R/ ro/S1) leooi 877a7ee I p..nct l1_r11rl'~Q