Pursuant to the SEC Emergency Orders (Release Nos. 34-58592 and 58611), LaBranche & Co. LLC, LaBranche Structured Products LLC and LaBranche Financial Services, LLC – when acting as a market-maker – may not effect a short sale as part of bona fide market making and hedging activity related directly to bona fide market making in a derivative security based on a Covered Security, if it knows the customer's or counterparty's transaction will result in such customer or counterparty establishing or increasing an economic net short position (i.e., through actual positions, derivatives, or otherwise) in the issued share capital of a firm covered by the SEC Orders.