This excerpt taken from the SIEB 8-K filed May 17, 2005.
Item 8.01 Other Events.
Siebert Financial Corp. (the Company), entered into an Operating Agreement, dated effective as of April 19, 2005 (the Agreement), with Napoleon Brandford III (Brandford) and Suzanne Shank (Shank) for SBS Financial Products Company, LLC, a Delaware limited liability company (SBS LLC), pursuant to which the Company, Brandford and Shank are the initial members of SBS LLC. The Company, Brandford and Shank each made an initial capital contribution of $400,000 in exchange for a 33.33% initial interest in SBS LLC. SBS LLC was formed to engage in derivative transactions including, (i) interest rate swap transactions, (ii) basis swaps, (iii) forward interest rate transactions, (iv) bond options, (v) interest rate options, (vi) interest rate cap transactions, (vii) interest rate floor transactions, (viii) interest rate collar transactions or (ix) any other similar transaction or any combination of transactions. SBS LLC will not write any uncovered options. It is expected that most swaps and derivative transactions will be entered into by SBS LLC in connection with offerings of securities by municipalities, states, counties, quasi-governmental organizations such as airport authorities and similar entities. A copy of the Agreement is filed herewith as Exhibit 10.1. The Company also owns a 49% interest in Siebert, Brandford, Shank & Co., LLC, an entity engaged in the tax-exempt underwriting business, Shank and Brandford own the remaining 51% of the equity in such entity.