Partnership Agreement of the Tri-State Global Investment Club©

This AGREEMENT of PARTNERSHIP, effective as of September 7, 1996 by and between the undersigned,

NOW, THEREFORE IT IS AGREED:

  1. Formation. The undersigned hereby form a General Partnership in accordance with and subject to the laws of the State of New York.

  2. Name. The name of the partnership shall be Tri-State Global Investment Club .

  3. Term. The partnership shall begin on September 7 ,1996 and shall continue until September 6, of the following year and thereafter from year to year unless earlier terminated as hereinafter provided.

  4. Purpose. The only purpose of the partnership is to invest the assets of the partnership solely in stocks, bonds and other securities for the education and benefit of the partners.
    Partnership assets may not be traded on margin accounts,nor used for options or futures trading.

  5. Meetings. Periodic meetings shall be held as determined by the partnership.

  6. Capital Contributions. The partners may make capital contributions to the partnership on the date of each periodic meeting in such amounts as the partnership shall determine, provided, however, that no partner's capital account shall exceed twenty percent (20%) of the capital accounts of all partners.


    A late dues penalty of $5.00 shall be assessed for each month capital contributions are late.

  7. Value of the Partnership. The current value of the assets of the partnership, less the current value of the liabilities of the partnership, (hereinafter referred to as the "value of the partnership") shall be determined as of a regularly scheduled date and time ("valuation date") preceding the date of each periodic meeting determined by the Club.

  8. Capital Accounts. A capital account shall be maintained in the name of each partner. Any increase or decrease in the value of the partnership on any valuation date shall be credited or debited, respectively, to each partner's capital account on that date. Any other method of valuating each partner's capital account may be substituted for this method, provided the substituted method results in exactly the same valuation as previously provided herein. Each partner's contribution to, or capital withdrawal from, the partnership shall be credited, or debited, respectively, to that partner's capital account.

  9. Management. Each partner shall participate in the management and conduct of the affairs of the partnership in proportion to his capital account. Except as otherwise determined, all decisions shall be made by the partners whose capital accounts total a majority of the value of the capital accounts of all the partners.

  10. Sharing of Profits and Losses. Net profits and losses of the partnership shall incur to, and be borne by, the partners, in proportion to the value of each of their capital accounts.

  11. Books of Account. Books of account of the transactions of the partnership shall be kept by the accountant and at all times be available and open to inspection and examination by any partner.

  12. Annual Accounting. Each calendar year, a full and complete account of the condition of the partnership shall be made to the partners.,The financial statement shall be certified by an internal audit committee

  13. Bank Account. The partnership may select a bank for the purpose of opening a bank account. Funds in the bank account shall be withdrawn by checks signed by any partner designated by the partnership.

  14. Broker Account. None of the partners of this partnership shall be a broker. However, the partnership may select a broker and enter into such agreements with the broker as required for the purchase or sale of securities. Securities owned by the partnership shall be registered in the partnership name unless another name shall be designated by the partnership.

    The partnership shall appoint the secretary and one other partner with limited power of attorney to act as agent to carry out , buy and sell trades as directed by the partnership. duplicate copies of each trade will be circulated at each meeting

    At the time of a transfer of securities, the corporation or transfer agent is entitled to assume (1) that the partnership is still in existence and (2) that this Agreement is in full force and effect and has not been amended unless the corporation has received written notice to the contrary.

  15. No Compensation. No partner shall be compensated for services rendered to the partnership, except reimbursement for expenses.

  16. Additional Partners. Additional partners may be admitted at any time, upon the unanimous consent of the partners, so long as the number of partners does not exceed thirty four(34).
    A commitment of at least 12 months will be required of all new partners.

  17. Special Membership or "Virtual Member" status is to be granted to Jerry Wallace and Ransford Miller because of distance.
    Both members are expected to pay regular dues and participate in NAIC education activity in their local area and communicate with club with respect to stock study and recommendations.All other rules apply to these members except attendance requirements.
  18. Transfers to a Trust. A partner may, after giving written notice to the other partners, transfer his interest in the partnership to a revocable living trust of which he is the grantor and sole trustee.

  19. Removal of a Partner. Any partner may be removed by agreement of the partners whose capital accounts total a majority of the value of all partners' capital accounts. Written notice of a meeting where removal of a partner is to be considered shall include a specific reference to this matter. The removal shall become effective upon payment of the value of the removed partner's capital account, which shall be in accordance with the provisions on full withdrawal of a partner noted in paragraphs 18 and 20. The vote action shall be treated as receipt of request for withdrawal.

  20. Termination of Partnership. The partnership may be terminated by agreement of the partners whose capital accounts total a majority in value of the capital accounts of all the partners. Written notice of a meeting where termination of the partnership is to be considered shall include a specific reference to this matter. The partnership shall terminate upon a majority vote of all partners's capital accounts. Written notice of the decision to terminate the partnership shall be given to all the partners. Payment shall then be made of all the liabilities of the partnership and a final distribution of the remaining assets either in cash or in kind, shall promptly be made to the partners or their personal representatives in proportion to each partner's capital account.

  21. Voluntary Withdrawal (Partial or Full) of a Partner. Following the twelve month(12) commitment, any partner may withdraw a part or all of the value of his capital account in the partnership and the partnership shall continue as a taxable entity.

    The partner withdrawing a part or all of the value of his capital account shall give notice of such intention in writing to the Secretary. Written notice shall be deemed to be received as of the first meeting of the partnership at which it is presented. If written notice is received between meetings it will be treated as received at the first following meeting.

    In making payment, the value of the partnership as set forth in the valuation statement prepared for the first meeting following the meeting at which notice is received from a partner requesting a partial or full withdrawal, will be used to determine the value of the partner's account.

    The partnership shall pay the partner who is withdrawing a portion or all of the value of his capital account in the partnership in accordance with paragraph 20 of this Agreement.

  22. Death or Incapacity of a Partner. In the event of the death or incapacity of a partner (or the death or incapacity of the grantor and sole trustee of a revocable living trust, if such trust is partner pursuant to Paragraph 16A hereof), receipt of notice shall be treated as a notice of full withdrawal.

  23. Terms of Payment. In the case of a partial withdrawal, payment may be made in cash or securities of the partnership or a mix of each at the option of the partner making the partial withdrawal. In the case of a full withdrawal, payment may be made in cash or securities or a mix of each at the option of the remaining partners. In either case, where securities are to be distributed, the remaining partners select the securities.

    Where cash is transferred, the partnership shall transfer to the partner (or other appropriate entity) withdrawing a portion or all of his interest in the partnership, an amount equal to the lesser of (i) ninety-seven percent (97%) of the value of the capital account being withdrawn, or (ii) the value of the capital account being withdrawn, less the actual cost to the partnership of selling securities to obtain cash to meet the withdrawal. The amount being withdrawn shall be paid within 10 days after the valuation date used in determining the withdrawal amount.

    If the partner withdrawing a portion or all of the value of his capital account in the partnership desires an immediate payment in cash, the partnership at its earliest convenience may pay eighty percent (80%) of the estimated value of his capital account and settle the balance in accordance with the valuation and payment procedures set forth in paragraphs 18 and 20.

    Where securities are transferred, the partnership shall select securities to transfer equal to the value of the capital account or a portion of the capital account being withdrawn (i.e., without a reduction for broker commissions). Securities shall be transferred as of the date of the club's valuation statement prepared to determine the value of that partner's capital account in the partnership. The Club's broker shall be advised that ownership of the securities has been transferred to the partner as of the valuation date used for the withdrawal.