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<TITLE>Prepared and filed by St Ives Financial </TITLE>

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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>As filed with the Securities and
Exchange Commission on October 2, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:right;'><font size=2>Registration Number ______________</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM S-1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</font></B></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Delaware</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(State or other jurisdiction of incorporation or organization)</font></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>7394</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Primary Standard Industrial Classification Code Number)</font></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>20-5455968</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(IRS Employer Identification Number)</font></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>110 S. Poplar Street, Suite 101</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Wilmington, DE 19801</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(800) 819-5556</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address, including zip code, and telephone number,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>including area code, of registrant&#146;s principal executive offices)</font></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Crit DeMent, Chairman and CEO</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>LEAF Asset Management, LLC</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>1818 Market Street, 9th Floor, Philadelphia, PA 19103</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(215) 569-1844</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name, address, including zip code, and telephone </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>number, including area code, of agent for service)</font></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>With a Copy to:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Wallace W. Kunzman, Jr., Esq.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Kunzman &amp; Bollinger, Inc.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>5100 N. Brookline</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Suite 600</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Oklahoma City, Oklahoma 73112</font></b></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><b><font size=2>As soon as practicable after this Registration Statement becomes effective.</font></b></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Approximate date of commencement of proposed sale to the public)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box:  </font><img src="tickedbox.gif"> </p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. </font><img src="emptybox.gif"></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. </font><img src="emptybox.gif"></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>If
  this Form is a post-effective amendment filed pursuant to Rule 462(d) under
  the Securities Act, check the following box and list the Securities Act registration
  statement number of the earlier effective registration statement for the same
  offering. </font><img src="emptybox.gif"></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><u><b><font size=2>Calculation
          of Registration Fee</font></b></u><u></u></p>
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    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:center;margin-top:12pt;margin-bottom:0pt;'><font size="1"><b>Title
          of Each Class</b><br>
          <b>of Securities to be</b><br>
          <b>Registered</b></font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size="1"><b>Amount
          to be</b><br>
          <b>Registered</b></font></p>
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      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size="1"><b>Proposed
          Maximum</b><br>
          <b>Offering Price Per</b><br>
          <b>Unit</b></font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size="1"><b>Proposed
          Maximum</b><br>
          <b>Aggregate Offering Price</b></font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size="1"><b>Amount
          of</b><br>
          <b>Registration Fee</b></font></p>
      </td>
    </tr>
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      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Limited
          Partner Units</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,200,000
          Units</font></p>
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      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$100.00</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$120,000,000</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$12,840</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>












<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CROSS REFERENCE SHEET</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td colspan="3" valign=top >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b><u>Item
          of Form S-1</u></b></font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b><u>Caption
          in Prospectus</u></b></font></p>
      </td>
    </tr>
    <tr>
      <td width="10%" valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          1.</font></p>
      </td>
      <td width="2%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="44%" valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Forepart
          of the Registration Statement and Outside Front Cover Page of Prospectus</font></p>
      </td>
      <td width="2%" valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="44%" valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Front
          Page of Registration Statement and Outside Front Cover Page of Prospectus</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          2.</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Inside
          Front and Outside Back Cover Pages of Prospectus</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Inside
          Front and Outside Back Cover Pages of Prospectus</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          3.</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Summary
          Information, Risk Factors and Ratio Of Earnings to Fixed Changes</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Summary
          of the Offering; Risk Factors</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          4.</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Use
          of Proceeds</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Use
          of Proceeds</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          5.</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Determination
          of Offering Price</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The
          Offering</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          6.</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dilution</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We
          have not conducted any activities and our general partner&#146;s officers,
          directors, promoters and affiliated persons have not acquired any units
          during the past five years. Also, no units will be issued in this offering
          to those persons except units subscribed for by them, as disclosed on
          the Outside Front Cover Page of Prospectus. Discounted units are described
          in &#147;Plan of Distribution.&#148;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          7.</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Selling
          Security Holders</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We
          do not have any selling security holders.</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          8.</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Plan
          of Distribution</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Plan
          of Distribution</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          9.</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Description
          of Securities to be Registered</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Summary
          of the Offering; The Offering; Summary of Our Partnership Agreement</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          10.</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Interests
          of Named Experts and Counsel</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Legal
          Matters; Experts</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Item
          11.</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Information
          with respect to the Registrant</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description
          of Business</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Investment
          Objectives and Strategies; Management</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description
          of Property</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Investment
          Objectives and Strategies </font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
          Proceedings</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Legal
          Matters</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market
          Price of and Dividends on the Registrant&#146;s Common Equity and Related
          Stockholder Matters</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We
          have no markets in which our units are being traded and no holders of
          units, and we have not conducted any activities or paid any dividends.</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
          Statements</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Financial
          Statements</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected
          Financial Data</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We
          have not conducted any activities. Thus, we do not have this information.</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supplementary
          Financial Information</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We
          have not conducted any activities. Thus, we do not have this information.</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&#146;s
          Discussion and Analysis of Financial Condition and Results of Operations</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Management&#146;s
          Discussion and Analysis of Financial Condition</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes
          in and Disagreements with Accountants on Accounting and Financial Disclosure</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>There
          have been no changes in, or disagreements with, accountants on accounting
          and financial disclosure.</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >&nbsp;</td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quantitative
          and Qualitative Disclosures about Market Risk</font></p>
      </td>
      <td valign=top >&nbsp;</td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We
          have no market for our units and none will be created.</font></p>
      </td>
    </tr>
  </table>
</div>




<p align="center"><Font size="2" face="serif"></font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td colspan="3" valign=top >
        <p style=' margin-left:8.65pt;margin-right: 0in;text-indent:-8.65pt;text-align: center;margin-top:2pt;margin-bottom:0in;'><font size="1"><b><u>Item
          of Form S-1</u></b></font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right: 0in;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0in;'><font size="1"><b>&nbsp;</b></font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b><u>Caption
          in Prospectus</u></b></font></p>
      </td>
    </tr>
    <tr>
      <td valign=top width="10%" >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors
          and Executive Officers</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Management</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
          Compensation</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Management
          Compensation</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security
          Ownership of Certain Beneficial Owners and Management</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Management</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
          Relationships and Related Transactions</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Management
          Compensation; Management; Conflicts of Interest and Fiduciary Responsibilities</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Item
          12.</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Disclosure
          of Commission Position on Indemnification for Securities Act Liabilities</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Conflicts
          of Interest and Fiduciary Responsibilities</font></p>
      </td>
    </tr>
  </table>
</div>




<p align="center"><Font size="2" face="serif"></font></p>

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<div style="page-break-before:always"></div>
<page>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The information in this prospectus is not complete and may be changed.  We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective.  This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font size="2" face="Arial">LEAF
  EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font size=2>Units of Limited Partner Interests</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>$100.00 per Unit</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Minimum Investment &#150; 50 Units ($5,000);</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We are LEAF Equipment Leasing Income Fund III, L.P., a Delaware limited partnership whose general partner is LEAF Asset Management, LLC. We are offering a minimum of 20,000 units, or $2 million, and a maximum of 1,200,000 units, or $120 million. We will acquire a diversified portfolio of equipment that we will lease to end users. We will also acquire portfolios of equipment subject to existing leases from other third-party equipment lessors. We expect that approximately 80% of the proceeds of this offering will be available for investment, after deducting all front-end fees and expenses and excluding proceeds we retain as working capital reserves and funds provided by any financing we obtain. Our principal objective is to generate regular cash distributions to you and our other investors. We cannot assure you, however, that we will meet our objective. We anticipate that during our initial years of operation
our distributions will be substantially tax-deferred due primarily to depreciation deductions on a portion of our equipment and operating losses.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
  units will be offered on a &#147;best efforts&#148; &#147;minimum &#150; maximum&#148;
  basis. This means the broker/dealers must sell at least 20,000 units and receive
  subscription proceeds of at least $2 million in order for this offering to close,
  and they must use only their best efforts to sell our remaining units.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our subscription proceeds will be held in an interest bearing escrow account until $2 million has been received. This offering will not extend beyond ______ __, 200__. If the minimum subscription proceeds are not received by _____ __, 200_, then your subscription will be promptly returned to you from the escrow account with interest earned, if any, and without deduction for any fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner, its officers, directors and affiliates, investors who buy units through the officers and directors of our general partner, registered investment advisors and their clients, and the dealer-manager, selling dealers and their registered representatives and principals, may purchase units at a price reduced by the sales commissions, which will not be paid for those sales. Our general partner and its affiliates currently intend to acquire not less than 10,000 units ($1 million), and may purchase up to approximately 5% of the total units sold, if greater. In addition, our general partner will receive a 1% interest in all of our income, losses and cash distributions in return for a $1,000 capital contribution, instead of paying the public offering price set forth in the table below, which will further dilute your investment in us. Our general partner anticipates that it will be our single largest
investor, although the total subscriptions of you and the other investors, as a group, will be greater.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Per Unit</font></b></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Minimum</font></b></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Maximum</font></b></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Public Offering Price</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100.00</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,000,000</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>120,000,000</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dealer-manager fee, sales commissions, accountable reimbursements for permissible non-cash compensation, and accountable due diligence reimbursements</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10.50</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>210,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,600,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Proceeds, before expenses, to us</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>89.50</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,790,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>107,400,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>This investment involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment.</font></b><font size=2> You should read &#147;Risk Factors,&#148; beginning
    on page 9 of this prospectus, for a discussion of factors you should consider
    before buying our units. Among the most prominent of these risks are the
following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>A substantial portion, and possibly all, of the cash distributions you receive from us will be a return of capital.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>You must rely on our general partner to manage us.</font></p> </td> </tr></table>


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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We have not specifically identified our investments. As a result, you cannot evaluate the risks of, or potential returns from, any of our investments.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our performance will be subject to the risk of lease and secured loans defaults.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our success will depend in part on our ability to realize residual value from a portion of our equipment once the leases on that equipment terminate.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We will borrow to buy equipment to increase the size of our portfolio. This increases our risk of loss if our revenues are insufficient to pay our debt service and other expenses.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our general partner will receive substantial compensation from us, which will reduce distributions to you.</font></p> </td> </tr></table>
</div>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>There is no readily available public market for your units and your units will be subject to substantial transfer restrictions. If you hope to sell your units, the price you receive will likely be at a substantial discount to the price you paid.</font></p> </td> </tr></table>
</div>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>You will have very limited voting rights.</font></p> </td> </tr></table>
</div>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We will engage in transactions with affiliates.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><i><font size=2>Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Preliminary Prospectus dated _________________, 2006 (Subject to Completion)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Chadwick Securities, Inc. &#150; Dealer-Manager</font></b></p>
<p align="center"><Font size="2" face="serif"></font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>







<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><font SIZE=2>IMPORTANT NOTICE TO RESIDENTS OF NEW JERSEY</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>The offer or sale of units in LEAF Equipment Leasing Income Fund III, L.P. in New Jersey</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>is restricted to accredited investors as defined in N.J.S.A. 49:3-49(p).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><B><font SIZE=2><a name="contents"></a>TABLE
  OF CONTENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


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        <td width="92%" valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p01a"><U><font SIZE=2>QUESTIONS AND ANSWERS</font></U></a>                                                                                                                                                                                                                                                                                                                                                                                                                            </p> </td>

        <td width="2%" valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="4%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p01a"><u><font size=2>iv</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p01b"><U><font SIZE=2>SUMMARY OF THE OFFERING</font></U></a>                                                                                                                                                                                                                                                                                                                                                                                                                  </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p01b"><u><font size=2>1</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p01c"><u><font size=2>LEAF
          Equipment Leasing Income Fund III, L.P</font></u></a><font size=2>.</font>
        </p>
      </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p01c"><u><font size=2>1</font></u></a></p> </td> </tr>
    <tr>

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<p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p07a"><u><font size=2>The Offering</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p07a"><u><font size=2>7</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p09a"><U><font SIZE=2>RISK FACTORS</font></U></a></p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p09a"><u><font size=2>9</font></u></a></p> </td> </tr>
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<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p09b"><u><font size=2>We May Not Return All of Your Investment or Any Rate of Return on Your Investment</font></u></a>                                                                                         </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p09b"><u><font size=2>9</font></u></a></p> </td> </tr>
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        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p09c"><u><font size=2>Our General Partner Will Manage Us and Our Business and May Make Decisions With Which You Do Not Agree</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p09c"><u><font size=2>9</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p09d"><u><font size=2>Because We Do Not Know What the Composition of Our Investment Portfolio Will Be, You Cannot Evaluate Our Portfolio At the Time You Invest</font></u></a>                                                                                                                                                                                                                                                                                                       </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p09d"><u><font size=2>9</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p09e"><u><font size=2>Higher Than Expected Equipment Lease and Secured Loan Defaults May Result in Losses</font></u></a>                                                                           </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p09e"><u><font size=2>9</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p10a"><u><font size=2>If We Are Unable to Realize the Residual Value of Our Equipment, We May Incur Losses</font></u></a>                                                                                 </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p10a"><u><font size=2>10</font></u></a></p> </td> </tr>
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        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p10b"><u><font size=2>Using &#147;Leverage&#148; to Build Our Portfolio Subjects Us to the Risk That Our Revenues May Not Be Sufficient to Cover Our Operating Costs Plus Debt Service and, Consequently, May Result in Losses</font></u></a></p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p10b"><u><font size=2>10</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p11a"><u><font size=2>Cost Reimbursements and Significant Fees We Will Pay to Our General Partner, and Reserves Our General Partner Will Establish, Will Reduce Our Cash Available for Distribution</font></u></a>                                                                                                                        </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p11a"><u><font size=2>11</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p11b"><u><font size=2>Your Ability to Dispose of Your Investment in Us Will Be Limited</font></u></a>                                                                                                                                                                                                             </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p11b"><u><font size=2>11</font></u></a></p>
      </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p11c"><u><font size=2>You Will Have Very Limited Voting Rights and Ability to Control Our Business</font></u></a>                                                                                                                                     </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p11c"><u><font size=2>12</font></u></a></p>
      </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p12a"><u><font size=2>Our General Partner May Be Subject to Various Conflicts of Interest Arising Out of Its Relationship to Us</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              </p> </td>

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<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p12a"><u><font size=2>12</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p12b"><u><font size=2>Our General Partner May Have Difficulty Managing Its Growth, Which May Divert Its Resources and Limit Its Ability to Expand Its Operations Successfully</font></u></a>                                                                                                                                                                                                                                                            </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p12b"><u><font size=2>12</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p12c"><u><font size=2>Our Lack of Operating History Decreases Your Ability to Evaluate Your Investment</font></u></a>                                                                                                              </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p12c"><u><font size=2>12</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p12d"><u><font size=2>If We Do Not Generate Sufficient Cash, We Will Not Be Able To Pay Your 8% Annual Distributions or Reinvest a Portion of Our Revenues in Additional Leases During the Reinvestment Period</font></u></a>                                                                </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p12d"><u><font size=2>12</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p13a"><u><font size=2>You May Not Receive Cash Distributions From This Investment In An Amount Sufficient to Return Your Investment or Provide a Return on Your Investment, and the Intended Cash Distributions May Be Reduced or Delayed</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                                </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p13a"><u><font size=2>13</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p13b"><u><font size=2>If You Choose to Redeem Your Units You May Receive Much Less Than If You Kept Your Units</font></u></a>                                      </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p13b"><u><font size=2>13</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p13c"><u><font size=2>Our Success Will Be Subject to Risks Inherent in the Equipment Leasing Business, Any of Which May Affect Our Ability to Operate Profitably</font></u></a>                                                                                                                                                                                                                                                                                                                                          </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p13c"><u><font size=2>13</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p14a"><u><font size=2>Interest Rate Changes May Reduce the Value of Our Portfolio and Our Returns On It</font></u></a>                                                                                                        </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p14a"><u><font size=2>14</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p14b"><u><font size=2>Spreading the Risks of Equipment Leasing and Secured Loans By Diversifying Our Investments Will Be Reduced If We Raise Only the Minimum Offering Amount</font></u></a>                                                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p14b"><u><font size=2>14</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p14c"><u><font size=2>Competition From Other Equipment Lessors Could Delay Investment of Our Capital, Reduce the Creditworthiness of Potential Lessees or Borrowers to Which We Have Access, or Decrease Our Yields</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p14c"><u><font size=2>14</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p15a"><u><font size=2>Poor Economic Conditions May Adversely Affect Our Ability to Build Our Portfolio</font></u></a>                                                                                                           </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p15a"><u><font size=2>15</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p15b"><u><font size=2>Resignation or Removal of Our General Partner, or Loss of Key Management Personnel of Our General Partner, Could Adversely Affect Our Ability to Conduct Our Business or Make Distributions</font></u></a>                                                </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p15b"><u><font size=2>15</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p15c"><u><font size=2>Our General Partner&#146;s Operating Systems Could Be Damaged or Disrupted By Events Beyond Its Control, Which Could Interfere With Our Ability to Conduct Our Business and Make Us Less Attractive to Customers as a Source of Equipment Leases and Secured Loans</font></u></a>                                                                                                                                  </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p15c"><u><font size=2>15</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p15d"><u><font size=2>Our Inability to Obtain Insurance For Certain Types of Losses Means We Must Bear the Cost of Any Losses From the Non-Insurable Risks</font></u></a>                                                                                                                                                                                                                                                                                                                                                     </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p15d"><u><font size=2>15</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p16a"><u><font size=2>Lack of Independent Counsel or Independent Underwriter May Reduce the Due Diligence Review of Us and Our General Partner</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                              </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p16a"><u><font size=2>16</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p16b"><u><font size=2>You Could Be Liable for Our Obligations if You Participate in the Control of Our Business, and You </font></u><u><font size=2>May Be Required to Return Improperly Received Distributions</font></u></a>                                                                                                                                                                                                                                             </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p16b"><u><font size=2>16</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p16c"><u><font size=2>Your Ability to Begin an Action Against Our General Partner is Limited By Our Partnership Agreement</font></u></a>         </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p16c"><u><font size=2>16</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p16d"><u><font size=2>If We Are, or Become, Subject to Usury Laws, It Could Result in Reduced Revenues or, Possibly, Loss on Our Investment</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p16d"><u><font size=2>16</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p16e"><u><font size=2>Participation With Third-Parties in Joint Ventures May Require Us to Pay Additional Costs or Incur Losses Because of Actions Taken By the Third-Parties</font></u></a>                                                                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p16e"><u><font size=2>16</font></u></a></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p17a"><u><font size=2>You May Be Required to Pay Taxes on Income From Us, Even If You Do Not Receive Commensurate Cash Distributions From Us</font></u></a>                                                                                                                                                                                                                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p17a"><u><font size=2>17</font></u></a></p> </td> </tr></table>
</div>





<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2></font></p>
<p align="center"><Font size="2" face="serif">i</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TABLE OF CONTENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="92%" valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p17b"><u><font size=2>We
          Will Not Apply for an Advance Ruling from the IRS as to Any Federal
          Tax Consequence of an Investment in Us, and if the IRS Classifies Us
          as a Corporation You Will Lose Tax Benefits</font></u></a> </p>
      </td>
      <td width="2%" valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="4%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p17b"><u><font size=2>17</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p17c"><u><font size=2>We
          Could Lose Cost Recovery or Depreciation Deductions if the IRS Treats
          Our Operating Leases as Sales or Financings</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p17c"><u><font size=2>17</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p17d"><u><font size=2>You
          Need Passive Income in Order to Deduct Any Tax Losses We May Generate</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p17d"><u><font size=2>17</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p18b"><u><font size=2>You
          Will Likely Be Subject to State and Local Taxes as a Result of Purchasing
          Our Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p18b"><u><font size=2>18</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p18c"><u><font size=2>An
          IRS Audit of Our Annual Federal Information Tax Return May Result in
          Adjustments to, or An Audit of, Your Personal Income Tax Returns</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p18c"><u><font size=2>18</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p18d"><u><font size=2>Your
          Investment in Us May Cause You to Pay Alternative Minimum Tax</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p18d"><u><font size=2>18</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p18e"><u><font size=2>Your
          Tax Benefits From an Investment In Us Are Not Contractually Protected</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p18e"><u><font size=2>18</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p19a"><u><font size=2>Tax-Exempt
          Organizations Will Have Unrelated Business Taxable Income from an Investment
          in Us</font></u></a></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p19a"><u><font size=2>18</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p19b"><u><font size=2>Foreign
          Investors In Us Will Be Subject to U.S. Tax Withholding and May Be Required
          to File U.S. Tax Returns</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p19b"><u><font size=2>19</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p19c"><u><font size=2>Changes
          in the Law May Reduce the Tax Benefits of Investing in Us</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p19c"><u><font size=2>19</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p19d"><U><font SIZE=2>FORWARD-LOOKING
          STATEMENTS AND ASSOCIATED RISKS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p19d"><u><font size=2>19</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p20a"><U><font SIZE=2>USE
          OF PROCEEDS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p20a"><u><font size=2>20</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p22a"><U><font SIZE=2>MANAGEMENT
          COMPENSATION</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p22a"><u><font size=2>21</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p28a"><U><font SIZE=2>CONFLICTS
          OF INTEREST AND FIDUCIARY RESPONSIBILITIES</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p28a"><u><font size=2>27</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p28b"><u><font size=2>Conflicts
          of Interest</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p28b"><u><font size=2>27</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p28c"><u><font size=2>In
          General</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p28c"><u><font size=2>27</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p28d"><u><font size=2>Our
          General Partner&#146;s Compensation is Not the Result of Arm&#146;s
          Length Negotiation</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p28d"><u><font size=2>28</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p28e"><u><font size=2>Actions
          Taken By Our General Partner Will Affect the Amount of Cash Available
          for Distribution to Limited Partners and Our General Partner&#146;s
          Compensation</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p28e"><u><font size=2>28</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p29a"><u><font size=2>Our
          General Partner and Its Affiliates Will Engage in Activities That Compete
          With Us</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p29a"><u><font size=2>28</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p29b"><u><font size=2>We
          May Enter into Joint Ventures With Affiliated Programs</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p29b"><u><font size=2>29</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p30a"><u><font size=2>We
          Do Not Have any Employees and Rely on the Employees of Our General Partner
          and Its Affiliates</font></u></a></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p30a"><u><font size=2>29</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p30b"><u><font size=2>We
          Must Reimburse Our General Partner and Its Affiliates for Expenses</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p30b"><u><font size=2>29</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p30c"><u><font size=2>We
          Have Not Retained Separate Counsel or Other Professionals</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p30c"><u><font size=2>30</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p30d"><u><font size=2>Lack
          of Independent Underwriter and Due Diligence Investigation in This Offering</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p30d"><u><font size=2>30</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p30e"><u><font size=2>Conflicts
          Regarding Redemption of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p30e"><u><font size=2>30</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p31a"><u><font size=2>Our
          General Partner Also is Our Tax Matters Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p31a"><u><font size=2>30</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p31b"><u><font size=2>Our
          General Partner and Its Affiliates Will Purchase Units as Investors</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p31b"><u><font size=2>30</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p31c"><u><font size=2>General
          Restrictions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p31c"><u><font size=2>31</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p32a"><u><font size=2>Fiduciary
          Duty of Our General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p32a"><u><font size=2>32</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p33a"><U><font SIZE=2>MANAGEMENT</font></U></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p33a"><u><font size=2>33</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p33b"><u><font size=2>Our
          General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p33b"><u><font size=2>33</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p36a"><u><font size=2>LEAF
          Financial Corporation</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p36a"><u><font size=2>35</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p37a"><u><font size=2>Investment
          Committee</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p37a"><u><font size=2>36</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p37b"><u><font size=2>Code
          of Business Conduct and Ethics</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p37b"><u><font size=2>37</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p37c"><u><font size=2>Organizational
          Diagram</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p37c"><u><font size=2>37</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p38a"><u><font size=2>Compensation</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p38a"><u><font size=2>37</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p38b"><u><font size=2>Security
          Ownership of Certain Beneficial Owners</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p38b"><u><font size=2>37</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p38c"><u><font size=2>Change
          in Partnership Management</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p38c"><u><font size=2>38</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p38d"><u><font size=2>Affiliated
          Company</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p38d"><u><font size=2>38</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><a href="#p38e"><U><font SIZE=2>OTHER
          PROGRAMS MANAGED BY OUR GENERAL PARTNER OR ITS AFFILIATES</font></U></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p38e"><u><font size=2>38</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p40a"><U><font SIZE=2>INVESTMENT
          OBJECTIVES AND STRATEGIES</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p40a"><u><font size=2>40</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p40b"><u><font size=2>Principal
          Investment Objectives</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p40b"><u><font size=2>40</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p41a"><u><font size=2>Equipment
          for Lease to End Users</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p41a"><u><font size=2>41</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p42a"><u><font size=2>Equipment
          Already Subject to Lease</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p42a"><u><font size=2>42</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p42b"><u><font size=2>Types
          of Equipment</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p40b"><u><font size=2>42</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p43a"><u><font size=2>Market</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p43a"><u><font size=2>43</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p44a"><u><font size=2>Leasing
          Strategies</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p44a"><u><font size=2>44</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p44b"><u><font size=2>Origination
          &#150; leasing at the right rate and cost</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p44b"><u><font size=2>44</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p44c"><u><font size=2>Underwriting
          &#150; obtaining the right kind of business</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p44c"><u><font size=2>44</font></u></a></p>
      </td>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>
      </p>
    <tr>
      <td valign=bottom ></td>
    </tr>
    <tr>
      <td valign=bottom ><a href="#p45a"><u><font size=2>Residual realization
        &#150; maximizing returns at the end of a lease</font></u></a> </td>
      <td valign=bottom >&nbsp;</td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p45a"><u><font size=2>45</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p46a"><u><font size=2>Collections
          &#150; assuring portfolio performance</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p46a"><u><font size=2>46</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p46b"><u><font size=2>Systems
          automation &#150; controlling costs and providing enhanced service with
          automated solutions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p46b"><u><font size=2>46</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p46c"><u><font size=2>Lease
          provisions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p46c"><u><font size=2>46</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p47a"><u><font size=2>Portfolio
          acquisition strategies</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p47a"><u><font size=2>47</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:25.9pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p48a"><u><font size=2>Transaction
          approval policies</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p48a"><u><font size=2>48</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p49a"><u><font size=2>Borrowing</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p49a"><u><font size=2>48</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p50a"><u><font size=2>Origination
          and Servicing Agreement</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p50a"><u><font size=2>49</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p50b"><u><font size=2>Changes
          in Investment Objectives and Policies</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p50b"><u><font size=2>50</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p50c"><U><font SIZE=2>INCOME,
          LOSSES AND DISTRIBUTIONS</font></U></a></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p50c"><u><font size=2>50</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p51a"><u><font size=2>Allocations
          of Net Income, Net Loss and Distributions Among Investors</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p51a"><u><font size=2>50</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p51b"><u><font size=2>Timing
          of Distributions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p51b"><u><font size=2>50</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p51c"><u><font size=2>Federal
          Income Tax Deferral</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p51c"><u><font size=2>50</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p51d"><u><font size=2>Reinvestment
          of Our Revenues in Additional Leases and Secured Loans</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p51d"><u><font size=2>51</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p52a"><u><font size=2>Return
          of Unused Capital</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p52a"><u><font size=2>52</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p52b"><u><font size=2>Cash
          from Reserve Account</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p52b"><u><font size=2>52</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p52c"><u><font size=2>Election
          to Reinvest Cash Distributions in Units During the Offering Period</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p52c"><u><font size=2>52</font></u></a></p>
      </td>
    </tr>
  </table>
</div>





<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><font size=2></font></p>
<p align="center"><Font size="2" face="serif">ii</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>TABLE OF CONTENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="92%" valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="2%" valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td width="4%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p53a"><U><font SIZE=2>FEDERAL
          INCOME TAX CONSEQUENCES</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p53a"><u><font size=2>53</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p53b"><u><font size=2>Special
          Counsel&#146;s Tax Opinion Letter</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p53b"><u><font size=2>53</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p55a"><u><font size=2>Partnership
          Classification</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p55a"><u><font size=2>55</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p56a"><u><font size=2>Flow
          Through of Taxable Income</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p56a"><u><font size=2>56</font></u></a></p>
      </td>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>
      </p>
    <tr>
      <td valign=bottom ></td>
    </tr>
    <td width="2%" valign=bottom >
      <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
    </td>
      <td width="4%" valign=bottom >&nbsp; </td>
    </tr>
    <tr>
      <td valign=bottom ><a href="#p56b"><u><font size=2>Treatment of Distributions</font></u></a></td>
      <td valign=bottom >&nbsp;</td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p56b"><u><font size=2>56</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p57a"><u><font size=2>Basis
          of Units Limitation on Deductions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p57a"><u><font size=2>56</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p57b"><u><font size=2>&#147;At
          Risk&#148; Limitation on Deductions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p57b"><u><font size=2>57</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p58a"><u><font size=2>Passive
          Activity Limitations on Losses</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p58a"><u><font size=2>57</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p59a"><u><font size=2>Limitations
          on Interest Deductions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p59a"><u><font size=2>58</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p59b"><u><font size=2>Partnership
          Income Tax Withholding</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p59b"><u><font size=2>58</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p59c"><u><font size=2>Organization
          and Offering Expenses and Start-Up Costs</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p59c"><u><font size=2>59</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p59d"><u><font size=2>Business
          Expenses</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p59d"><u><font size=2>59</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p60a"><u><font size=2>Tax
          Treatment of Leases</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p60a"><u><font size=2>59</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p60b"><u><font size=2>Depreciation</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p60b"><u><font size=2>60</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p61a"><u><font size=2>Sale
          or Other Disposition of Partnership Property</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p61a"><u><font size=2>61</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p62a"><u><font size=2>Sale
          or Other Disposition of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p62a"><u><font size=2>62</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p63a"><u><font size=2>Consequence
          of No Section 754 Election</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p63a"><u><font size=2>62</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p63b"><u><font size=2>Tax
          Treatment of Our Termination</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p63b"><u><font size=2>63</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p63c"><u><font size=2>Possible
          IRS Audits</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p63c"><u><font size=2>63</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p64a"><u><font size=2>Alternative
          Minimum Tax</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p64a"><u><font size=2>64</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p66a"><u><font size=2>Profit
          Motive, IRS Anti-Abuse Rule and Judicial Doctrines Limitations on Deductions</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p66a"><u><font size=2>65</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p66b"><u><font size=2>Interest
          and Penalties</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p66b"><u><font size=2>66</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p68a"><u><font size=2>State
          and Local Taxation</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p68a"><u><font size=2>67</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p68b"><u><font size=2>Social
          Security Benefits and Self-Employment Tax</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p68b"><u><font size=2>68</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p68c"><u><font size=2>Estate
          and Gift Taxation</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p68c"><u><font size=2>68</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p68d"><u><font size=2>Federal
          Tax Treatment of Foreign Investors</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p68d"><u><font size=2>68</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p68e"><u><font size=2>Federal
          Taxation of Employee Benefit Plans and Other Tax-Exempt Organizations</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p68e"><u><font size=2>68</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p69a"><u><font size=2>Changes
          in the Law</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p69a"><u><font size=2>68</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p69b"><U><font SIZE=2>INVESTMENT
          BY QUALIFIED PLANS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p69b"><u><font size=2>69</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p69c"><u><font size=2>Fiduciaries
          under ERISA</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p69c"><u><font size=2>69</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p69d"><u><font size=2>Prohibited
          Transactions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p69d"><u><font size=2>69</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p70a"><u><font size=2>Plan
          Assets</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p70a"><u><font size=2>70</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p70b"><u><font size=2>Other
          ERISA Considerations</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p70b"><u><font size=2>70</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><a href="#p71a"><u><font size=2>MANAGEMENT&#146;S
          DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p71a"><u><font size=2>70</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p71b"><U><font SIZE=2>SUMMARY
          OF OUR PARTNERSHIP AGREEMENT</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p71b"><u><font size=2>71</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p72a"><u><font size=2>General</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p72a"><u><font size=2>71</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p72b"><u><font size=2>Capital
          Contributions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p72b"><u><font size=2>71</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p72c"><u><font size=2>Powers
          of our General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p72c"><u><font size=2>72</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p72d"><u><font size=2>Liability
          of Our General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p72d"><u><font size=2>72</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p72e"><u><font size=2>Limited
          Liability of Limited Partners</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p72e"><u><font size=2>72</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p72f"><u><font size=2>Withdrawal
          or Removal of Our General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p72f"><u><font size=2>72</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p73a"><u><font size=2>Consequences
          of Withdrawal or Removal of Our General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p73a"><u><font size=2>72</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p73b"><u><font size=2>Liability
          of Withdrawn or Removed General Partner</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p73b"><u><font size=2>72</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p73c"><u><font size=2>Transfer
          of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p73c"><u><font size=2>73</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p74a"><u><font size=2>Redemption
          of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p74a"><u><font size=2>74</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p74b"><u><font size=2>Books
          and Records</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p74b"><u><font size=2>74</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p75a"><u><font size=2>Meetings
          of Limited Partners</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p75a"><u><font size=2>74</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p75b"><u><font size=2>Voting
          Rights of Limited Partners</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p75b"><u><font size=2>75</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p75c"><u><font size=2>Amendment
          by Limited Partners Without Our General Partner&#146;s Concurrence</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p75c"><u><font size=2>75</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p76a"><u><font size=2>Amendment
          by Our General Partner Without the Consent of the Limited Partners</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p76a"><u><font size=2>75</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p76b"><u><font size=2>Events
          Causing Dissolution</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p76b"><u><font size=2>76</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p76c"><u><font size=2>Liquidation</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p76c"><u><font size=2>76</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p76d"><u><font size=2>Roll-Up
          Transactions</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p76d"><u><font size=2>76</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p77a"><U><font SIZE=2>REDEMPTION
          OF UNITS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p77a"><u><font size=2>77</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p77b"><u><font size=2>Redemption
          Price of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p77b"><u><font size=2>77</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p78a"><u><font size=2>Procedure
          for Redemption of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p78a"><u><font size=2>77</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p78b"><u><font size=2>Restrictions
          on Redemption of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p78b"><u><font size=2>77</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p78c"><u><font size=2>Consequences
          of Redemption of Units</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p78c"><u><font size=2>78</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p79a"><U><font SIZE=2>REPORTS
          TO LIMITED PARTNERS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p79a"><u><font size=2>78</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p79b"><u><font size=2>Tax
          Reports</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p79b"><u><font size=2>78</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p79c"><u><font size=2>Annual
          Reports</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p79c"><u><font size=2>78</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p79d"><u><font size=2>Quarterly
          Reports</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p79d"><u><font size=2>79</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p80a"><u><font size=2>Reports
          to State Securities Laws Administrators</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p80a"><u><font size=2>79</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p80b"><U><font SIZE=2>PLAN
          OF DISTRIBUTION</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p80b"><u><font size=2>79</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p80c"><u><font size=2>Commissions</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p80c"><u><font size=2>79</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p82a"><u><font size=2>Indemnification</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p82a"><u><font size=2>82</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p82b"><U><font SIZE=2>INVESTOR
          SUITABILITY</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p82b"><u><font size=2>82</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p82c"><u><font size=2>General</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p82c"><u><font size=2>82</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p83a"><u><font size=2>Basic
          Investor Suitability</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p83a"><u><font size=2>82</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p83b"><u><font size=2>Different
          Basic Investor Suitability for Residents of Certain States</font></u></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p83b"><u><font size=2>82</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p83c"><u><font size=2>Additional
          State Requirements</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p83c"><u><font size=2>83</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p84a"><u><font size=2>Who
          Should Invest</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p84a"><u><font size=2>83</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p84b"><U><font SIZE=2>THE
          OFFERING</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p84b"><u><font size=2>84</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p84c"><u><font size=2>Terms
          of this Offering and the Offering Period</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p84c"><u><font size=2>84</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:17.3pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p85a"><u><font size=2>Escrow
          Arrangements</font></u></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p85a"><u><font size=2>84</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p85b"><U><font SIZE=2>HOW
          TO SUBSCRIBE</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p85b"><u><font size=2>85</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p86a"><U><font SIZE=2>SUPPLEMENTAL
          SALES LITERATURE</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p86a"><u><font size=2>85</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p87a"><U><font SIZE=2>LEGAL
          MATTERS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p87a"><u><font size=2>86</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p87b"><U><font SIZE=2>EXPERTS</font></U></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p87b"><u><font size=2>87</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p87c"><U><font SIZE=2>FORECASTS</font></U></a>
        </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p87c"><u><font size=2>87</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p87d"><U><font SIZE=2>WHERE
          YOU CAN FIND MORE INFORMATION</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p87d"><u><font size=2>87</font></u></a></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p88a"><U><font SIZE=2>INDEX
          TO FINANCIAL STATEMENTS</font></U></a> </p>
      </td>
      <td valign=bottom >
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><a href="#p88a"><u><font size=2>87</font></u></a></p>
      </td>
    </tr>
  </table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="92%" style=' border-collapse:collapse;'>
    <tr>

        <td width="14%" valign=top >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><a href="#p109a"> <u><font size=2>Appendix A</font></u></a> </p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><a href="#p109a"> <u><font size=2>Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.</font></u> </a></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p160a"> <u><font size=2>Appendix B</font></u></a></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><a href="#p160a"> <u> <font size=2>Prior Performance Tables</font></u></a></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><a href="#p160b"> <u><font size=2>Appendix C</font></u> </a></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><a href="#p160b"> <u><font size=2>Instructions for Completing the Subscription Agreement in LEAF Equipment Leasing Income Fund III, L.P. </font></u> </a></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2></font></p>
<p align="center"><Font size="2" face="serif">iii</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>










<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p01a"></a>Questions and Answers</font></b></p>
<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>LEAF Equipment Leasing Income Fund III, L.P.</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-1. What is LEAF Equipment Leasing Income Fund III, L.P. (&#147;LEAF III&#148;)? </font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-1. LEAF III is a form of investment opportunity that is commonly referred to as an Equipment Leasing and Finance Fund. These funds provide investors with access to equipment leases and loans to businesses that usually are made only by large financial institutions and banks. These funds may be considered a nontraditional (or alternative) asset class because their assets are not correlated to traditional assets such as stocks and bonds. Thus, these funds may offer benefits associated with diversification and asset allocation. LEAF III also is a limited partnership and its general partner is LEAF Asset Management, LLC, which will manage all aspects of LEAF III and its business. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As LEAF III raises investor funds and borrows money, and after paying fees and expenses and making required distributions to you and the other investors, which are not guaranteed, LEAF III will use its capital to acquire a diversified portfolio of business essential equipment to lease to third-party businesses known as lessees. The general partner believes that borrowing funds will allow LEAF III to increase the size and diversification of its portfolio of equipment leases. The third-party lessee will be obligated under the lease to make non-cancelable interest and rental payments to LEAF III for the use of the equipment during the lease term, although there is a risk that it may fail to do so. </font><i><font size=2>For a more detailed discussion of LEAF III&#146;s investment objectives and strategies, please refer to the &#147;INVESTMENT OBJECTIVES AND STRATEGIES&#148; section of the prospectus beginning on page 40. </font></i></p>







<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-2. Are there different types of equipment leases? </font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-2. Yes. Depending on the type of lease, the lessee may purchase the equipment for a nominal fee at the end of the lease term, or return the equipment to LEAF III. The general partner expects that approximately 65% to 75% of LEAF III&#146;s equipment leases will be full payout leases, which are leases under which the rental payments during the initial term of the lease, on a present value basis, will be sufficient to return an amount equal to LEAF III&#146;s purchase price of the leased equipment, plus an appropriate return, without consideration of the residual value of the leased equipment at the end of the lease. Under the full payout leases, the lessee may purchase the equipment at the end of the lease term for a nominal fee. Thus, LEAF III does not need to sell or re-lease the equipment to recover its invested capital in the equipment under a full payout lease. The general partner further expects that
approximately 25% to 35% of LEAF III&#146;s equipment leases will be operating leases, which are leases under which the total rental payments during the original term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment leased under the lease. Under the operating lease, the lessee would be required to return the equipment to LEAF III at the end of the lease term. Thus, LEAF III would need to sell or re-lease the equipment after the end of the operating lease to either the initial lessee or another party in order to recover its full purchase price for the equipment, plus an appropriate return on the lease. See the &#147;INVESTMENT OBJECTIVES AND STRATEGIES &#150; LEASING STRATEGIES &#150; RESIDUAL REALIZATION &#150;MAXIMIZING RETURNS AT THE END OF A LEASE&#148; section of the prospectus beginning on page 45 for a more detailed discussion of LEAF III&#146;s strategies to recover the residual value of equipment it leases to others
under operating leases.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>LEAF III expects that the cost per unit of the equipment it finances will range from $20,000 to $2 million, and the average per unit cost of its leases will be between $50,000 and $100,000. In addition, up to 30% of LEAF III&#146;s capital available for investment from time to time may be used to provide secured loans to end users to acquire business essential equipment.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion of the lease types anticipated in LEAF III, please refer to the &#147;INVESTMENT OBJECTIVES AND STRATEGIES&#148; section of the prospectus beginning on page 40. </font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-3. What are the investor suitability requirements for this investment?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-3. In general, you must have either a net worth of at least $45,000, plus $45,000 of annual gross income; or a net worth of at least $150,000. Some states impose higher suitability requirements. Also, the minimum investment amount for most investors is $5,000 (50 units). An investment in LEAF III is illiquid, and there is no readily available public market for its units. You should invest in LEAF III only if you are prepared to hold your units for at least nine years, and possibly longer.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><u><b><font SIZE=2>IMPORTANT NOTICE TO RESIDENTS OF NEW JERSEY</font></b></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The offer or sale of units in LEAF Equipment Leasing Income Fund III, L.P. in New Jersey is restricted to accredited investors as defined in N.J.S.A. 49:3-49(p).</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion of investor suitability requirements in particular states, please refer to the &#147;INVESTOR SUITABILITY&#148; section of the prospectus beginning on page 82.</font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-4. Who is LEAF III&#146;s General Partner, LEAF Asset Management, LLC?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-4. LEAF Asset Management, LLC is a recently formed limited liability company that will serve as the general partner of investor programs. It is based in Philadelphia, Pennsylvania, and is an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ:REXI). Headquartered in Philadelphia and New York, Resource America was founded over 40 years ago. Resource America is a specialized asset management company with more than $10 billion in assets under management (as of August 2006) through its subsidiaries that operate in three primary business segments:  Equipment Finance, Real Estate and Structured Financial Products.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>LEAF Asset Management&#146;s senior management team has substantial experience in the equipment leasing and finance industries. Also, as of September 2006, the general partner&#146;s affiliate, LEAF Financial Corporation, which will act as the servicer of LEAF III&#146;s leases and secured loans, had over $569 million in assets under management through over 14,600 individual leases and loans. In addition, LEAF Financial Corporation serves as the general partner for Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) and Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), which are prior equipment leasing and finance programs sponsored by it since 2002. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For information concerning certain operating results of LEAF I and LEAF II as of June 30, 2006, see the &#147;Prior Performance Tables&#148; in Appendix B to the prospectus. LEAF I and LEAF II also file periodic reports with the SEC. See the &#147;Where You Can Find More Information&#148; section of the prospectus to learn how to obtain copies of those filings from the SEC&#146;s public reference room or its website.</font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>LEAF Asset Management and its affiliates currently intend to acquire a minimum of $1 million of limited partner units in LEAF III, and they may purchase up to approximately 5% of the total units sold in this offering, if greater. The general partner anticipates that it will be the single largest investor in LEAF III, although the total investments of you and the other investors in LEAF III, as a group, will be greater. </font><i><font size=2>For a more detailed discussion of the general partner, please refer to the &#147;MANAGEMENT&#148; section of the prospectus beginning on page 33.</font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-5. What are the primary investment objectives of LEAF III?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-5. LEAF III&#146;s principal objectives are to invest in a diversified portfolio of equipment for lease to end users, or to acquire equipment subject to existing leases, or on a limited basis to finance the purchase of equipment by end users, in order to:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>preserve, protect and return your invested capital;</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>generate regular cash distributions to you and the other investors during the period beginning on the initial closing date in this offering and ending five years after the offering period for this offering terminates (the &#147;reinvestment period&#148;);</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>reinvest revenues in purchases of additional equipment during the reinvestment period, after paying its expenses, establishing appropriate reserves and making specified distributions to you and the other investors; and</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>provide additional cash distributions to you after the end of the reinvestment period and until all of its equipment leases and secured loans have either matured and terminated or been sold.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion of LEAF III&#146;s investment objectives, please refer to the &#147;INVESTMENT OBJECTIVES AND STRATEGIES&#148; section of the prospectus beginning on page 40. </font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-6. What types of equipment will LEAF III finance?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-6. LEAF III intends to focus on investing in equipment that is essential for businesses to conduct their operations so the end users will be highly motivated to make the required monthly payments in order to keep the equipment in place. However, LEAF III has not specifically identified its investments. As a result, you cannot evaluate the risks of, or potential returns from, any of its investments at the time you invest. The general partner expects that LEAF III will focus on business essential equipment  such as:</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>general office equipment, including office machinery, furniture, telephone systems, computer systems and software; </font></p> </td> </tr></table>






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        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>medical and dental practice equipment for diagnostic and treatment use; </font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>energy and climate control systems; and</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>light industrial and construction equipment, including small lift trucks, small earth moving equipment and tractors, manufacturing, material handling and electronic diagnostic systems.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This equipment will generally be leased by LEAF III to small to mid-sized businesses, which the general partner generally categorizes as businesses with 500 or fewer employees, $1 billion or less in total assets; or $100 million or less in total annual sales. </font><i><font size=2>For a more detailed discussion of the types of equipment the fund will finance, please refer to the &#147;INVESTMENT OBJECTIVES AND STRATEGIES &#150; EQUIPMENT FOR LEASE TO END USERS&#148; section of the prospectus beginning on page 41. </font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-7. What can I expect to happen after I invest in LEAF III and when can I expect to receive distributions?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-7. Once the general partner has accepted your subscription, you will receive a confirmation letter indicating LEAF III&#146;s acceptance of your investment and a copy of your fully executed subscription agreement. Generally, LEAF III intends to begin making monthly cash distributions in the month following the first full month of operations after it sells the minimum number of units in this offering and has its initial closing. Monthly distributions, however, are not guaranteed. Also, unless you are a resident of Ohio, if you previously invested in LEAF I or LEAF II, or both, you may elect on your subscription agreement to have your distributions from those programs during the period LEAF III is offering its units for sale reinvested in units in LEAF III without a minimum investment amount to the extent units are still available for purchase. In addition, unless you are a resident of Ohio, when you subscribe
for the minimum investment amount of $5,000 (50 units) or more in LEAF III you also may elect on your subscription agreement to have your distributions from LEAF III during the period LEAF III is offering its units for sale reinvested in additional units in LEAF III without a minimum investment amount for the additional units to the extent units are still available for purchase.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>During the remaining five year reinvestment period following the up to two year offering period, no new investors will be accepted by LEAF III. During this period LEAF III intends to invest its net revenues from its leases and secured loans in additional leases and secured loans after making certain required distributions to you and the other investors.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>During LEAF III&#146;s liquidation period (which the general partner anticipates will be approximately two years), LEAF III will not invest its revenues in additional leases or secured loans. Instead, it intends to distribute all of its available net cash to its partners as its leases mature and its remaining equipment is sold.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion of LEAF III&#146;s distributions to you, please refer to the &#147;INCOME, LOSSES AND DISTRIBUTIONS&#148; section of the prospectus beginning on page 50.</font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-8. Are there tax benefits and consequences of investing in LEAF III?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-8. LEAF III, as a limited partnership, will not pay income taxes itself. Instead, all of its taxable income or losses and other tax items will be passed through to you and its other partners. The general partner anticipates that during LEAF III&#146;s early years income taxes on distributions to you and the other investors will be substantially tax-deferred by operating losses and depreciation deductions available from the portion of its equipment leased to third-party end users under its operating leases, but not under its full payout leases or equipment serving as security for its secured loans. Also, the passive activity rules under the Internal Revenue Code will apply to natural persons and most other types of investors in LEAF III. Thus, you should anticipate that your share of LEAF III&#146;s net income or net loss in each of its taxable years generally will be characterized as passive activity income or loss. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Employee benefit plans, such as qualified pension and profit sharing plans, Keogh plans and IRAs, generally are exempt from federal income tax, except that any unrelated business taxable income (&#147;UBTI&#148;) that exceeds $1,000 in any taxable year is subject to an unrelated business income tax. Other charitable and tax exempt organizations are also subject to tax on UBTI. Most of LEAF III&#146;s net income, if any, in a given year will constitute UBTI.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion, please refer to the &#147;FEDERAL INCOME TAX CONSEQUENCES&#148; section of the prospectus beginning on page 53. You are urged to seek advice based on your individual circumstances from an independent tax advisor with respect to the tax consequences to you of an investment in LEAF III.</font></i></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-9. Can I sell my units in LEAF III?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-9. You should invest in LEAF III only if you are prepared to hold your units for at least nine years. Although you may request LEAF III to redeem some or all of your units at any time, LEAF III has no obligation to redeem any of your units and it will not maintain a cash reserve for this purpose. Also, in any calendar year, LEAF III is limited as to the number of units it may redeem so that it will not be treated as a publicly traded partnership for tax purposes. In addition, the redemption price for your units is unlikely to reflect the fair market value of your units at the time of redemption, particularly during the liquidation period. You may realize a greater return by holding on to your units for the duration of LEAF III&#146;s term.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion, please refer to the &#147;REDEMPTION OF UNITS&#148; section of the prospectus beginning on page 77.</font></i></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Q-10. Where can I get more information?</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A-10. LEAF III has filed a registration statement on Form S-1 with the SEC regarding the units it offers by this prospectus and it will file periodic reports and other information with the SEC. These documents are available at the SEC&#146;s web site at http://www.sec.gov. After you are an investor in LEAF III, you may contact LEAF Asset Management&#146;s Investor Relations department regarding your account information. The telephone number is 1-866-323-0241. You are urged to thoroughly discuss an investment in LEAF III with your financial, tax and legal advisors. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>For a more detailed discussion, please refer to the &#147;WHERE YOU CAN FIND MORE INFORMATION&#148; section of the prospectus beginning on page 87.</font></i></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2><a name="p01b"></a>SUMMARY
  OF THE OFFERING</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Because this is only a summary, it does not contain all of the information that may be important to you. You should read this entire prospectus, including the &#147;Risk Factors&#148; section, before deciding to invest in our units. Throughout this prospectus when there is a reference to you it is a reference to you as a potential investor or limited partner in us.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p01c"></a>LEAF
  Equipment Leasing Income Fund III, L.P.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>The Fund</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="69%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We are a Delaware limited partnership that will acquire a diversified portfolio of equipment that we will lease to third-parties. We will also acquire equipment subject to existing leases from other third-party equipment lessors. In addition, we may use up to 30% of our total funds available for investment at any given time to make secured loans to end users to finance their purchase of equipment.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>The equipment we acquire for lease or financing to others generally will be:</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;new, used or reconditioned;</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;business-essential equipment, such as computers, general office equipment, medical and dental practice equipment, software, energy and climate control systems, light construction and industrial equipment;</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;intended for the small to mid-size business market, which generally includes businesses with 500 or fewer employees, $1 billion or less in total assets; or $100 million or less in total annual sales; and</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;have a per unit equipment cost generally between $20,000 and $2 million, with an average per unit cost of  $50,000 to $100,000.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We have not identified any investments as of the date of this prospectus. For a more complete discussion, you should read the &#147;Investment Objectives and Strategies&#148; section of this prospectus. Our principal office in Delaware is at 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801, and our telephone number is (800) 819-5556.</font></p> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Management</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We will be managed by LEAF Asset Management, LLC, which will also be our general partner. The principal office of LEAF Asset Management is at  1818<sup> </sup>Market Street, 9<sup>th</sup> Floor, Philadelphia, Pennsylvania 19103, and its telephone number is (215) 569-1844. The management team of our general partner and its affiliate, LEAF Financial Corporation (&#147;LEAF Financial&#148;), which will service our leases and secured loans, has substantial experience in the finance and equipment leasing industries. Its members have held senior executive and risk management positions with financial institutions such as CitiCapital Vendor Finance, CoreStates Bank, N.A., Fidelity Leasing, Inc. and Tokai Financial Services, Inc. LEAF Financial&#146;s core executive team, consisting of Crit DeMent, Miles Herman, Nick Capparelli and David English, and other senior staff
members, were key members of management teams that built two equipment leasing operations which were acquired by international financial institutions. Most recently they were key members of a management team that, in 1996, began an equipment leasing business focused on the small to mid-sized business market for Resource America, Inc. (&#147;Resource America&#148;), the indirect corporate parent of our general partner, that by June 30, 2000 had grown into an operation that managed over $600 million in equipment leasing assets. This business was sold to European American Bank, a subsidiary of ABN AMRO Bank, N.V., in 2000 for $564.8 million, including the assumption of $431 million in third-party debt. We describe the background and experience of our general partner&#146;s management team in the &#147;Management&#148; section of this prospectus.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Fund Objectives</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="69%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Our investment objectives are to:</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preserve, protect and return your invested capital;</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;generate regular cash distributions to you during the period beginning on our initial closing date and ending five years after this offering terminates (the &#147;reinvestment period&#148;);</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;during the reinvestment period, enter into or purchase equipment leases and secured loans using our net offering proceeds from this offering, and borrow funds to increase the diversification of our portfolio, and reinvesting our revenues after paying our expenses, establishing appropriate reserves and making certain distributions to you and our other investors; and</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provide additional cash distributions to you after the end of the reinvestment period and until all of our equipment leases and secured loans have either matured and terminated or been sold (the &#147;liquidation period&#148;).</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We expect to begin making distributions in the month following the first full month of operations after we sell the minimum number of units in this offering and have our initial closing. We also expect that, during the early years of our operations, our distributions will be substantially tax-deferred. We cannot assure you, however, as to the timing or specific level of your distributions, or whether we will achieve any of our objectives.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We describe our investment objectives and strategies in the &#147;Investment Objectives and Strategies&#148; section of this prospectus.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We describe our distribution policies in the &#147;Income, Losses and Distributions&#148; section of this prospectus.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Risk Factors</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>An investment in our units involves risks, including the following:</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A substantial portion, and possibly all, of the cash distributions you receive from us will be a return of capital. The portion of your total distributions that is a return of capital and the portion that is investment income will depend on a number of factors in our operations and cannot be determined until all of our equipment leases and secured loans have either matured and terminated or been sold.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner will have all management authority over us and our business.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not specifically identify the equipment we will acquire or the persons to whom we will lease our equipment until we are ready to invest our funds. As a result, you cannot evaluate the risks of, or potential returns from, any of our investments at the time you invest.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Higher than expected lease and secured loan defaults may result in our inability to fully recover our investment or expected income from the affected equipment and could reduce our cash distributions to you and our other limited partners.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="28%" valign=top >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="69%" valign=top >

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate that approximately 25% to 35% of our leases will be operating leases under which the rental payments we receive will return approximately 80% to 85% of the purchase price we paid for the equipment. If we are unable to realize the residual value of approximately 15% to 20% of the purchase price we paid for that equipment after the operating leases terminate, by either re-leasing or selling the equipment, then we may lose any profit or even a portion of our investment in that equipment.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will borrow to buy equipment for leases and secured loans, which will require a pledge of most or all of our equipment to the creditors. If our returns on these investments are insufficient to pay our debt service and other expenses, typically as a result of defaults on a portion of our leases or secured loans, then we may incur a loss and could lose some or all of the pledged equipment.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner and its affiliates will receive substantial compensation from us, which will reduce our cash distributions to you and our other limited partners. Some of these fees will be paid without regard to the amount of our cash distributions to you and our other limited partners and regardless of the profitability of our operations.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will probably not be able to resell your units since they will not be listed on any stock exchange or interdealer quotation system, and there are significant restrictions in our partnership agreement on your ability to transfer your units. We do not intend to assist in the development of any secondary market for, or provide qualified matching services for purchasers and sellers of, our units. Any sale that you may be able to arrange for your units, including the redemption of the units by us, which is at our sole discretion, is likely to be at a substantial discount to your investment, partnership equity per unit or other measures of value.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You and our other limited partners will have very limited voting rights and ability to control our business. Also, your voting power will be diluted because our general partner and its affiliates currently intend to purchase at least 10,000 units ($1 million) and may purchase up to approximately 5% of the total units sold, if greater. However, our general partner and its affiliates may not participate in any vote by you and our other limited partners to remove our general partner as the general partner or regarding any transaction between us and our general partner or any of its affiliates.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>For a more complete discussion of the risks relating to an investment in our units, you should read the &#147;Risk Factors&#148; section of this prospectus.</font></p> </td> </tr>




    <tr>

        <td width="28%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Leverage</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="69%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We intend to finance a significant portion of the cost of the equipment we acquire through borrowings, including financings provided through securitizations. A &#147;securitization&#148; means, in general, a transfer of a portion of our equipment leases and secured loans to a special purpose entity that is wholly-owned by us and is bankruptcy-remote, which in turn pledges those assets to a trust that issues debt securities backed by the cash flow from those assets. Our securitizations are accounted for on our balance sheet as debt. We believe that, under current market conditions, on full investment and assuming we sell the maximum number of units, our borrowings will be approximately 80% of the aggregate acquisition costs of our investments. However, we do not have a required minimum or maximum amount of financing, and the amount of financing we actually use may be
more or less than 80%. We describe our borrowing and securitization policies in the &#147;Investment Objectives and Strategies &#150; Borrowing&#148; section of this prospectus.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


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  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
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      <td width="28%" valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Income,
          Losses, and Distributions</font></p>
      </td>
      <td width="2%" valign=bottom >&nbsp;</td>
      <td width="69%" valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>
          <font size=2>Our income, losses and distributions will be allocated
          99% to you and our other limited partners and 1% to our general partner.
          We describe our allocation of income, losses, and distributions in the
          &#147;Income, Losses and Distributions&#148; section of this prospectus.</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Fees
          of Our General Partner and Its Affiliates</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br>
          <font size=2>Our general partner and its affiliates will receive substantial
          fees and other compensation from us, as follows:</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
          general partner will have a partnership interest equal to 1% of all
          of our income, losses and cash distributions.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
          general partner will receive an organization and offering expense allowance
          of 3% of offering proceeds to reimburse it for expenses incurred in
          preparing us for registration or qualification under federal and state
          securities laws and subsequently offering and selling our units. This
          expense allowance does not cover dealer-manager fees, sales commissions,
          or reimbursement to the selling dealers of up to a maximum of .5% of
          our offering proceeds for their bona fide accountable due diligence
          expenses.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
          expect to acquire all of our leases and secured loans through LEAF Funding,
          Inc. (&#147;LEAF Funding&#148;), an affiliate of our general partner,
          which will originate and hold the leases and secured loans on a temporary
          basis in order to facilitate their acquisition by us. The purchase price
          that we will pay LEAF Funding for those leases and secured loans will
          not exceed LEAF Funding&#146;s net cost for acquiring and holding the
          leases and secured loans until we purchase them, which will include
          the cost to LEAF Funding of origination fees it pays to certain of its
          employees for their efforts in locating and facilitating the acquisition
          of the leases and secured loans on our behalf, in amounts typically
          ranging from 1% to 3% of LEAF Funding&#146;s cost for the leases and
          secured loans to the extent those fees qualify as initial direct costs
          of the assets purchased by us under United States general accepted accounting
          principles (&#147;GAAP&#148;),.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
          general partner will receive a fee of 2% of the purchase price we pay
          to acquire our equipment for leasing or financing to others or to purchase
          existing equipment leases or secured loans. The purchase price we pay
          will include the debt we incur or assume in connection with the acquisition.
          Our general partner will pay its out-of-pocket expenses, related to
          its acquisition activities on our behalf, but not origination fees incurred
          by LEAF Funding as described in the above bullet, such as costs of credit
          reports and travel and communication expenses, and it will not receive
          any reimbursement from us for those expenses except through this fee.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
          general partner will receive a subordinated asset management fee for
          managing each type of investment described below equal to the lesser
          of the amount, for each type of lease or financing arrangement described
          below, that is reasonable, competitive, and would customarily be paid
          to non-affiliated third-parties rendering similar services in the same
          geographic location and for similar types of investments or:</font></p>
        <p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
          our operating leases managed by third-parties under our general partner&#146;s
          supervision &#150; 1% of gross rental payments;</font></p>
        <p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
          our operating leases managed by our general partner or its affiliates
          &#150; 4% of gross rental payments;</font></p>
      </td>
    </tr>
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<div align=left>
  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="28%" valign=top ><p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td width="2%" valign=bottom ><p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td width="69%" valign=top ><p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for our full payout leases which contain net lease provisions &#150; 2% of gross rental payments; and</font></p>
          <p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for our secured loans &#150; 2% of gross principal and interest payments.</font></p>
        <p style=' margin-left:25.9pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>During the reinvestment period, the management fees will be subordinated to the payment to you and our other limited partners of a cumulative annual distribution of 8% of your capital contributions, as adjusted by certain distributions made to you which are deemed to be a return of capital as described in the &#147;Income, Losses and Distributions &#150; Reinvestment of Our Revenues in Additional Leases and Secured Loans&#148; section of this prospectus.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner will receive a subordinated commission equal to one-half of a competitive commission, up to a maximum of 3% of the contract sales price, for arranging the sale of our equipment after the expiration of a lease. This commission will be subordinated to the return to our limited partners of the purchase price of their units plus a cumulative annual distribution, compounded daily in this case only, of 8% of their capital contributions, as adjusted by our distributions to them that are deemed a return of capital.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner will receive a re-leasing fee equal to the lesser of a competitive rate or 2% of gross rental payments derived from any re-lease of equipment, payable as we receive rental payments from the re-lease. We will not, however, pay a re-leasing fee to our general partner if the re-lease is with the original lessee or its affiliates.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner will be reimbursed for operating and administrative expenses incurred by it on our behalf, subject to limitations contained in our partnership agreement and as described in the &#147;Management Compensation&#148; section of this prospectus.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner&#146;s affiliate, Chadwick Securities, Inc. (&#147;Chadwick Securities&#148;), which is the dealer-manager for this offering of our units, will receive a dealer-manager fee of 3% of our offering proceeds for obtaining and managing the group of selling dealers that will sell our units in this offering. From this dealer-manager fee, Chadwick Securities may pay the selling dealers an amount of up to 1% of the offering proceeds of each unit sold by them as a marketing fee and use a portion or all of the remainder of the dealer-manager fee for other underwriting expenses, including permissible non-cash compensation, as described in the &#147;Plan of Distribution&#148; section of this prospectus. In addition, Chadwick Securities will receive up to .5% of the
          offering proceeds as reimbursement for the bona fide accountable due diligence expenses incurred by the selling dealers in this offering, all of which it will reallow to the selling dealers. Chadwick Securities also will receive sales commissions of 7% of the offering proceeds, all of which it will reallow to the selling dealers except for units sold by it. However, Chadwick Securities does not anticipate that it will directly sell a material number of units.</font></p>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>For a more complete description of the fees and other compensation payable to our general partner and its affiliates, you should read the &#147;Management Compensation&#148; section of this prospectus.</font></p></td>
    </tr>
    <tr>
      <td valign=top ><p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our General Partner&#146;s Relationship with Us May Be Conflicted</font></p></td>
      <td valign=bottom ><p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td valign=top ><p style=' margin-left:0in;text-indent:0in;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br>
              <font size=2>Our general partner may be subject to conflicts of interest because of its relationship to us. These potential conflicts include:</font></p></td>
    </tr>
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<div align=left>
  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="28%" valign=top ><p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td width="2%" valign=bottom ><p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td width="69%" valign=top ><p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no arm&#146;s-length negotiations in determining our general partner&#146;s compensation.</font></p>
          <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actions taken by our general partner will affect the amount of our general partner&#146;s compensation and the amount of cash available for distribution to you and our other limited partners.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our general partner and its affiliates may engage in activities that compete with us.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We do not have any employees and rely on employees of our general partner and its affiliates.</font></p>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>For a more complete description of the conflicts of interest to which our general partner may be subject, you should read the &#147;Conflicts of Interest and Fiduciary Responsibilities&#148; section of this prospectus.</font></p></td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Use
          of Proceed</font></p>
      </td>
      <td valign=bottom ><p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td valign=top ><p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We expect to invest approximately 80% of our offering proceeds in:</font></p>
          <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equipment that we lease to end users;</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equipment that is already subject to existing leases; and</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;loans to end users to purchase equipment that also serves as collateral for the repayment of the loans.</font></p>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We will use the balance of our offering proceeds to pay dealer-manager fees, sales commissions, bona fide accountable due diligence expense reimbursements, organization and offering expenses and acquisition fees, and to establish a working capital reserve. We describe our expected use of the offering proceeds in the &#147;Use of Proceeds&#148; section of this prospectus.</font></p></td>
    </tr>
    <tr>
      <td valign=top ><p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Partnership Agreement</font></p></td>
      <td valign=bottom ><p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
      <td valign=top ><p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>You and the other purchasers of our units will be our limited partners. Our partnership agreement will govern the following:</font></p>
          <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our activities;</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the relationships among you and the other limited partners; and</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the relationship between our general partner and you and our other limited partners.</font></p>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The following is a brief summary of some of the principal provisions of our partnership agreement, apart from the income, loss and distribution allocation provisions and the fees of our general partner and its affiliates described previously in this summary. For a more complete description, you should read the &#147;Summary of Our Partnership Agreement&#148; section of this prospectus. In addition, the form of our amended and restated partnership agreement is included as Appendix A to this prospectus.</font></p>
        <p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting rights:  You will have one vote for each unit you purchase. You and our other limited partners are entitled to vote on specified fundamental matters, such as:</font></p>
        <p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amendments to our partnership agreement;</font></p></td>
    </tr>
  </table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="28%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="69%" valign=top >

<p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;removal of our general partner;</font></p>

<p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our merger with another entity;</font></p>

<p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the sale of all, or substantially all, of our assets; or</font></p>

<p style=' margin-left:51.85pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;our dissolution.</font></p>

<p style=' margin-left:25.9pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Otherwise, you and our other limited partners have no participation in determining our operations or policies.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meetings:  Our general partner, or our limited partners holding 10% or more of our outstanding units, may call a meeting of the limited partners on matters on which they are entitled to vote.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited liability: So long as you do not participate in the control of our business and otherwise act in conformity with our partnership agreement, your liability as a limited partner will be limited to the amount of your invested capital, plus your share of any of our undistributed profits and assets.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transferability of units:  Our partnership agreement restricts the transfer of units so that we will not be treated as a &#147;publicly traded partnership&#148; for federal income tax purposes and will not be taxed as a corporation. As a result of these restrictions, you probably will not be able to transfer your units if or when you want to.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Removal of general partner:  Our general partner may be removed only on a vote of limited partners holding a majority of our outstanding units. Neither our general partner nor any of its affiliates may participate in any vote by you and our other limited partners to remove our general partner as general partner.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment of partnership agreement:  Our partnership agreement generally may be amended by the vote of limited partners holding a majority of our outstanding units. However, no amendment may be made that would change any partner&#146;s interest in distributions or partnership income or losses without the consent of all affected partners.</font></p>

<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term:  We will terminate as a partnership on December 31, 2031, unless sooner terminated as set forth in our partnership agreement. Our partnership agreement does not provide for renewal or extension of the partnership term, which may only be done by amendment of our partnership agreement by limited partners owning more than 50% of our units.</font></p> </td> </tr>
    <tr>


      <td colspan="3" valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:16pt;margin-bottom:0pt;'><b><font size=2><a name="p07a"></a>The
          Offering</font></b></p>
      </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Securities Offered</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>A minimum of 20,000 units and a maximum of 1,200,000 units.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Minimum Investment</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>You must purchase a minimum of 50 units for $5,000. However, there is no minimum investment for certain investors as described in &#147;&#150; Distribution Reinvestments,&#148; below.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Distribution Reinvestments</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>In addition to your initial purchase of not less than 50 units as described in &#147;&#150; Minimum Investment,&#148; above, you may elect on your subscription agreement to use any cash distributions that you receive from us during the offering period following your initial investment to purchase additional units in us on the same terms as you purchased your initial units, to the extent units are then available for sale.</font></p> </td> </tr></table>
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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="28%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="69%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Also, if you previously invested in Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) or Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), which are prior equipment leasing programs sponsored by LEAF Financial Corporation, an affiliate of our general partner, you may elect on your subscription agreement to use any cash distributions you receive from either or both of those programs to purchase our units during the offering period, to the extent units are available for sale. Also, there is no minimum number of units that must be purchased if cash distributions from LEAF I or LEAF II, or both, are used to purchase our units.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>All units purchased by you with distributions from either us or LEAF I or LEAF II will be purchased at the public offering price and, except as set forth above, on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Offering Period</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Until _______________, 200_. After ________________, 200_, the states or other jurisdictions may require renewal, requalification or other consents for this offering. This offering will terminate if we do not receive and accept subscriptions for the minimum offering amount of $2 million by ________________, 200_.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Escrow</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We will deposit your investment in an interest-bearing escrow account until we have received the minimum offering amount of $2 million or until ______________, 200_, whichever is earlier. If we have not received the minimum offering amount by then, all of your funds will be returned to you with any interest earned, and without deduction for any fees. If we receive the minimum offering amount on or before ______________, 200_, however, then:</font></p>
<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;you will be admitted as a limited partner;</font></p>
<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;your escrowed subscription proceeds will be delivered to us for use as described in this prospectus; and</font></p>
<p style=' margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the interest earned on your escrowed subscription funds, if any, will be paid to you.</font></font></p>


<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Subscription Procedure</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>You must fill out and sign a subscription agreement, the form of which is attached to this prospectus as Appendix C, in order to purchase our units. You should send your subscription agreement and a check for the purchase price of your units as instructed in the subscription agreement. Wire transfer instructions are available on request.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Closings</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>We will hold the initial closing of this offering when we receive subscriptions for 20,000 units, excluding units subscribed for by Pennsylvania and Iowa residents and by our general partner and its affiliates. At that time, we will admit investors as limited partners and receive the escrowed funds from the escrow agent. After the initial closing, we will hold weekly closings until we have sold all of the units or this offering terminates, whichever comes first.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>If you are a Pennsylvania or Iowa resident, we must hold your subscription proceeds in escrow until we receive and accept subscriptions for at least 60,000 units. In addition, we must offer you the opportunity to rescind your subscription if we have not received subscriptions for 60,000 units within 120 days of the date the escrow agent receives your subscription proceeds. We must repeat this offer to you every 120 days after that during the period of this offering in Pennsylvania and Iowa until we have received and accepted subscriptions for 60,000 units.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2><a name="p09a"></a>RISK FACTORS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>Units of limited partner interest are inherently different from capital stock of a corporation, although many of the business risks to which we will be subject are similar to those that would be faced by a corporation engaged in a similar business. You should consider the following risk factors together with all of the other information included in this prospectus in evaluating the purchase of our units. If any of the following risks actually occurs, our business, financial condition or results of operations could be materially adversely affected. In that case, you may lose some or all of your investment.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p09b"></a>We May Not Return All of Your Investment or Any Rate of Return on Your Investment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A
  substantial portion, and possibly all, of the cash distributions you receive
  from us will be a return of capital. The portion of your total distributions
  that is a return of capital and the portion that is investment income will depend
  on a number of factors in our operations and cannot be determined until all
  of our leases and secured loans have matured and terminated or been sold. At
  that time you will be able to compare the total amount of all cash distributions
  received by you to your total capital invested in us, and determine your investment
  income.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p09c"></a>Our
  General Partner Will Manage Us and Our Business and May Make Decisions With
  Which You Do Not Agree</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner will have all management authority over us and our business. Therefore, you should not purchase our units unless you are willing to entrust all aspects of our management to our general partner. See &#147;&#150; You Will Have Very Limited Voting Rights and Ability to Control Our Business,&#148; below.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p09d"></a>Because We Do Not Know What the Composition of Our Investment Portfolio Will Be, You Cannot Evaluate Our Portfolio At the Time You Invest</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have not specifically identified the equipment we will lease or finance or the persons with whom we will enter into leases or secured loans. We will begin to develop our portfolio once we are ready to invest our funds. Our general partner, however, anticipates that our portfolio of equipment leases and secured loans will be similar to those of the previous equipment leasing funds sponsored by our general partner&#146;s affiliate, LEAF Financial, although a greater portion of our portfolio may be invested in secured loans, since LEAF Financial&#146;s first fund did not provide for investments in secured loans and its second fund imposed a cap of 20% on secured loans, compared to our 30% cap on secured loans. See &#147;Appendix B &#150; Prior Performance Tables.&#148;  For a description of the strategies we intend to apply in developing our portfolio, you should read the &#147;Investment Objectives and
Strategies&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The composition of our investment portfolio will depend on national and local economic conditions and the markets for equipment and equipment leases at the time we acquire the equipment. As a result, you cannot evaluate the risks of, or potential returns from, our portfolio at the time you invest.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p09e"></a>Higher Than Expected Equipment Lease and Secured Loan Defaults May Result in Losses</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect that our average per unit cost will be between $50,000 and $100,000, and we intend to focus our leases and secured loans on the small to mid-size market, which may have greater risks of default than if we had a larger average per unit cost and focused on larger customers. For example, few small to mid-sized private businesses have audited financial statements, which increases the risk that the financial statements of those companies may be inaccurate or incomplete, or that our credit evaluations of our customers may not accurately reflect the risk of their potential defaults on our leases and secured loans. Although our general partner and its affiliates have developed credit evaluation systems designed to address this situation as discussed in more detail in the &#147;Investment Objectives and Strategies&#148; section of this prospectus, their systems may not identify all of the risks involved in
the financial statements submitted to us by potential lessees or borrowers. Higher than expected equipment lease or secured loan defaults will result in a loss of anticipated revenues. These losses may adversely affect our ability to make distributions to you and our other limited partners and, if the level of defaults is sufficiently large, may result in our inability to fully recover our investment.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>While we will seek to repossess and re-lease or sell the equipment that is subject to a defaulted lease or secured loan, we may not be able to do so on advantageous terms. In some cases, the cost of repossessing the equipment subject to a defaulted lease or secured loan may make trying to recover the equipment impractical. Also, if a lessee or borrower under files for protection under the bankruptcy laws, then:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we may experience difficulties and delays in recovering the equipment from the defaulting party;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the equipment may be returned in poor condition; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we may be unable to enforce important contract provisions against the insolvent party, including the contract provisions that require the equipment to be returned to us in good condition.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, we may suffer a loss or our ability to make distributions may be adversely affected by the high costs of:</font></p>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>enforcing a lessee&#146;s or borrower&#146;s contract obligations;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>recovering equipment from the defaulting party;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>transporting, storing, and repairing the equipment; and</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>finding a new lessee or purchaser for the equipment.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, if a lessee or borrower defaults on a lease or secured loan, respectively, that we acquired using borrowed funds or subsequently financed, which generally will be the case with respect to all of our leases and secured loans, the entire proceeds from the re-leased or sold equipment will typically first be applied to payment of the financing and only after full repayment to our creditor would we be entitled to any remaining proceeds. In these circumstances, we may lose some or all of our investment in the equipment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p10a"></a>If We Are Unable to Realize the Residual Value of Our Equipment, We May Incur Losses</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect that approximately 25% to 35% of our lease portfolio will be &#147;operating leases,&#148; under which the net present value of aggregate rental payments during the initial lease term generally is structured to result in our recovery of 80% to 85% of the purchase price of the equipment. Thus, our ability to recover the full purchase price of the equipment and our expected return in connection with an operating lease depends on the potential value of the equipment once the primary lease term expires. We call this the &#147;residual value.&#148;  The residual value will depend on numerous factors beyond our control, including:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>whether the original lessee wants to keep the equipment;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the cost of comparable new equipment;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the obsolescence or poor condition of the leased equipment; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the existence of a secondary market for the type of used equipment.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>For a description of the strategies we intend to use in realizing residual value, you should read the &#147;Investment Objectives and Strategies &#150; Leasing Strategies &#150; Residual Realization &#150; Maximizing Returns At the End of a Lease&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p10b"></a>Using &#147;Leverage&#148; to Build Our Portfolio Subjects Us to the Risk That Our Revenues May Not Be Sufficient to Cover Our Operating Costs Plus Debt Service and, Consequently, May Result in Losses</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect to &#147;leverage&#148; the acquisition costs of our equipment through borrowings, including securitization financing. For a description of the borrowing and securitization financing strategies we intend to use, you should read the &#147;Investment Objectives and Strategies &#150; Borrowing&#148; section of this prospectus. We anticipate that our borrowings and securitization financings will be approximately 80% of the aggregate acquisition costs of our equipment. However, we are not limited as to the amount of debt or securitization financing that we may incur. As a result, the amount of our debt and securitization financing may be significantly more or less than 80%. The actual amount will depend on our general partner&#146;s assessment of the availability of funds on acceptable terms and on the composition of our investment portfolio.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>While leverage can enhance our return on invested capital, if the return on investments we finance fails to cover the cost of the financings, or if the return is negative, our ability to make distributions to you and our other limited partners will be impaired and the value of our net assets will decline more rapidly than would be the case in the absence of leverage.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner anticipates that we will pledge most, if not all, of our portfolio as collateral for our financings. If we are unable to pay our debt service because of the failure of our lessees or borrowers to make timely payments, or due to other factors, we may lose the pledged collateral. Also, lenders or securitizers may require covenants that could restrict our flexibility in making business and financing decisions in the future, and in order to repay our financing, we may be required to dispose of our assets at a time we would otherwise not do so.</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2><a name="p11a"></a>Cost Reimbursements and Significant Fees We Will Pay to Our General Partner, and Reserves Our General Partner Will Establish, Will Reduce Our Cash Available for Distribution</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Before making any distributions to you and our other limited partners, we will reimburse our general partner for expenses incurred by it on our behalf during the related period as described in the &#147;Management Compensation&#148; section of this prospectus. The amount of these expenses will be determined by our general partner subject to limitations set forth in our partnership agreement. In addition, our general partner and its affiliates, including Chadwick Securities, LEAF Funding and LEAF Financial, will provide services to us for which we will be charged substantial fees as described in &#147;Management Compensation.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Some fees will be paid without regard to the amount of our cash distributions to you and our other limited partners, and regardless of the success or profitability of our operations. For example, after we receive our minimum required offering proceeds and begin operations our general partner and its affiliates will be entitled to certain fees and expense reimbursements as described in the &#147;Management Compensation&#148; section of this prospectus. Some of those fees and expense reimbursements will be required to be paid at the time of the initial closing in this offering or as we begin to acquire our portfolio, and we may pay other expenses, such as accounting and interest expenses, costs for supplies, etc., even though we have not yet begun to receive revenues from our leases and secured loans. This lag between the time when we must pay fees and expenses and the time when we begin to receive revenues may
result in losses to us during our early years, which our general partner believes is typical for a start-up company such as us in the equipment leasing business.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The compensation and fees of our general partner and its affiliates were established by our general partner and are not based on arm&#146;s-length negotiations. Approximately 21.29% of our offering proceeds will be used to pay organization, offering and equipment acquisition fees to our general partner and its affiliates, including sales commissions and certain other offering expenses paid to our general partner&#146;s affiliate, Chadwick Securities, a portion or all of which will be reallowed by Chadwick Securities to the selling dealers. Also, our general partner will determine the amount of cash reserves that we will maintain for future expenses, contingencies or investments. The reimbursement of expenses, payment of fees or creation of reserves could adversely affect our ability to make distributions to you and our other limited partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p11b"></a>Your Ability to Dispose of Your Investment in Us Will Be Limited</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We do not anticipate that a public market will develop for our units, and our partnership agreement imposes significant restrictions on your right to transfer your units. For a description of these restrictions you should read the &#147;Summary of Our Partnership Agreement &#150; Transfer of Units&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have established these restrictions to comply with federal and state securities laws and so that we will not be considered to be a publicly traded partnership that is taxed as a corporation for federal income tax purposes. Thus, you probably will not be able to sell or otherwise liquidate your units in the event of an emergency and if you were able to arrange a sale, the price you would receive for your units would likely be at a substantial discount to the price you paid for your units. Also, your units probably will not be readily acceptable as collateral for loans.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You should invest in us only if you are prepared to hold your units for at least nine years, which is the period consisting of:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an offering period of up to two years;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an additional five-year reinvestment period; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a subsequent liquidation period of approximately two years, during which our leases and secured loans will either mature and terminate or be sold and we will liquidate our other assets.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As a result, you should view your investment in us as illiquid and should not purchase our units unless you have no need for the funds you invest. You should also consider that our anticipated term as a partnership of nine years as described above could be more than nine years if we encounter unexpected difficulties in liquidating our investments.</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p11c"></a>You Will Have Very Limited Voting Rights and Ability to Control Our Business</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Unlike a holder of common stock in a corporation, as a limited partner you will have only limited voting rights on matters affecting our business. For example you will have no right to elect our general partner on an annual or other continuing basis. Instead, our general partner may be removed only on the vote of limited partners holding a majority of our outstanding units. In this regard, our general partner and its affiliates currently intend to purchase not less than 10,000 units ($1 million) and may purchase up to approximately 5% of the total units sold, if greater, as limited partners. These units will not be included in the minimum offering proceeds required for us to begin operations, but they will dilute your voting power. Under our partnership agreement, however, neither our general partner nor any of its affiliates may participate in any vote by the limited partners to remove our general partner as
general partner. For a description of the voting rights of you and our other limited partners, you should read the &#147;Summary of Our Partnership Agreement &#150; Meetings of Limited Partners&#148; and &#147;&#150; Voting Rights of Limited Partners&#148; sections of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p12a"></a>Our General Partner May Be Subject To Various Conflicts of Interest Arising Out of Its Relationship to Us</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will not employ our own full-time officers, directors or employees. Instead, the officers, directors and employees of our general partner and its affiliates will supervise and control our business affairs, as well as the affairs of their other businesses. Therefore, they will devote to us and our business only the amount of time that they think is necessary to conduct our business.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, our partnership agreement does not prohibit our general partner or its affiliates from investing in or acquiring equipment, equipment leases and secured loans and they can engage in equipment acquisitions, financing, refinancing, leasing and releasing opportunities on their own behalf or on behalf of other partnerships. Our general partner could be confronted with decisions whereby it would have an economic incentive to place its interests above ours. Any conflicts in determining and allocating investments between us and our general partner, or between us and another program managed by our general partner or its affiliates, will be resolved by the investment committee of our general partner which will evaluate the suitability of all prospective lease acquisitions and financing transactions for investment by us. For a further discussion of conflicts of interest between our general partner and you and our
other limited partners, you should read the &#147;Conflicts of Interest and Fiduciary Responsibilities &#150; Conflicts of Interest&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p12b"></a>Our General Partner May Have Difficulty Managing Its Growth, Which May Divert Its Resources and Limit Its Ability to Expand Its Operations Successfully</font></b></p>

<p style=' margin-bottom:8pt; margin-top:0pt;text-align:left;'><font size=2>Although our general partner is a recently-formed entity, the amount of assets that its affiliates manage has grown substantially, and our general partner intends to continue to sponsor funds similar to us, which may be concurrent with us, and anticipates that it will experience growth in its assets under management. Our general partner&#146;s future success will depend on the ability of its officers and key employees to implement and improve its operational, financial and management controls, reporting systems and procedures, and manage a growing number of assets and investment funds. Our general partner, however, may not implement improvements to its management information and control systems in an efficient or timely manner and it may discover deficiencies in its existing systems and controls. Thus, our general partner&#146;s anticipated growth may place a strain on its administrative and operations
infrastructure, which could increase its costs and reduce its efficiency.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p12c"></a>Our Lack of Operating History Decreases Your Ability to Evaluate Your Investment</font></b></p>

<p style=' margin-bottom:8pt; margin-top:0pt;text-align:left;'><font size=2>Our general partner was formed in August 2006 and we were formed in September, 2006 by our general partner. As a new limited partnership, we have no prior operations which you can use to help evaluate the desirability of purchasing our units. Also, we cannot predict whether our intended operations will meet our stated investment objectives.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, our general partner has no prior experience in managing funds such as us, although our general partner&#146;s management team and its affiliate, LEAF Financial, have that experience. However, Lease Equity Appreciation Fund I, L.P. and Lease Equity Appreciation Fund II, L.P., which are prior equipment leasing funds sponsored by LEAF Financial, an affiliate of our general partner, have been in existence for approximately 3.5 and 1.5 years, respectively. Thus, our general partner&#146;s affiliate has only a short history in managing funds similar to us for you to evaluate. See &#147;Appendix B &#150; Prior Performance Tables,&#148; to this prospectus. Although LEAF Financial previously sponsored eight public equipment leasing programs in the late 1980&#146;s and early 1990&#146;s when it had a different name and was under different ownership and management, we have not included any information
regarding those prior programs in this prospectus for the reasons set forth in the &#147;Other Programs Managed by Our General Partner or Its Affiliates&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p12d"></a>If We Do Not Generate Sufficient Cash, We Will Not Be Able to Pay Your 8% Annual Distributions or Reinvest a Portion of Our Revenues in Additional Leases During the Reinvestment Period</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>During the period ending five years after the completion of this offering, we have the right to reinvest our revenues above the amounts necessary to pay you 8% annual distributions on your adjusted capital contribution, if any, in additional equipment leases and secured loans. Under our partnership agreement your &#147;adjusted capital contribution&#148; at any given time is the purchase price of your units reduced by certain distributions made to you which are deemed to be a return of capital as described in the &#147;Income, Losses and Distributions &#150; Reinvestment of Our Revenues in Additional Leases and Secured Loans&#148; section of this prospectus. However, for the reasons described in this &#147;Risk Factors&#148; section, you should not assume that we will be able to generate cash for reinvestment in additional equipment leases and secured loans or even that we will generate cash sufficient to pay
you all or any part of an 8% annual distribution.</font></p>
<p align="center"><Font size="2" face="serif">12</font></p>

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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p13a"></a>You
  May Not Receive Cash Distributions From This Investment In An Amount Sufficient
  to Return Your Investment or Provide a Return on Your Investment, and the Intended
  Cash Distributions May Be Reduced or Delayed</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We cannot predict the amount of cash we will generate and, as a result, the amount of distributions we may pay you, if any. The actual amounts of cash we generate will depend on numerous factors relating to our business which may be beyond our control and may reduce or delay our cash distributions to you and our other limited partners, including:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the demand for the equipment leases and secured loans we provide;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our ability to obtain financings or leverage, including securitizations, to build our equipment portfolio;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>required principal and interest payments on the debt we intend to incur;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>profitability of our operations;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>equipment lease and secured loan defaults;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>prevailing economic conditions; and</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>government regulations.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p13b"></a>If You Choose to Redeem Your Units You May Receive Much Less Than If You Kept Your Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>At any time after you have been admitted as one of our limited partners, you may request us to redeem some or all of your units. However, the redemption of your units is subject to the following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we have no obligation to redeem any of your units;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we will not maintain a cash reserve for this purpose;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>in any given year our total unit transfers, including redemptions of units by us, may not exceed 2% of our total capital or profits interests; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the redemption price has been unilaterally set and is described in the &#147;Redemption of Units&#148; section of this prospectus.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If we do agree to redeem your units, the redemption price may provide you a much lower value than the value you would realize if you kept your shares for the duration of our term. Depending on when you request redemption, the redemption price may be less than the unreturned amount of your investment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p13c"></a>Our Success Will Be Subject to Risks Inherent in the Equipment Leasing Business, Any of Which May Affect Our Ability to Operate Profitably</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A number of factors may affect our ability to operate profitably. These include:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>changes in economic conditions, including fluctuations in demand for equipment, interest rates and inflation rates;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the quality of the equipment we acquire and lease or finance;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the continuing strength of the equipment manufacturers;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the timing of equipment purchases and our ability to forecast technological advances;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our ability to obtain financings or leverage, including securitizations, to build our equipment portfolio;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>defaults by lessees or borrowers; and</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>increases in our expenses, including labor, tax and insurance expenses.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p14a"></a>Interest Rate Changes May Reduce the Value of Our Portfolio and Our Returns On It</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Changes in interest rates will affect the market value of our portfolio. In general, the market value of an equipment lease or secured loan will change in inverse relation to an interest rate change when the equipment lease or secured loan has a fixed rate of return. Thus, in a period of rising interest rates, the market value of our equipment leases and secured loans will decrease. A decrease in the market value of our portfolio will adversely affect our ability to obtain financing against our portfolio or to liquidate it.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Interest rate changes will also affect the return we obtain on new equipment leases or secured loans. For example, during a period of declining rates, our gross revenues may be reduced because our reinvestment of rental and loan payments may be at lower rates than we obtained in prior equipment leases or secured loans, or the existing equipment leases or secured loans may be prepaid by the lessee or the borrower. Also, when we obtain financing (i.e., borrowings or securitizations) an increase in interest rates will not necessarily be reflected in increased rates of return on the equipment leases or secured loans funded through that debt, which would adversely affect our net return on the equipment leases and secured loans. Thus, interest rate changes may materially affect our revenues, which in turn may affect the amount we are able to distribute to you and our other limited partners. For a discussion of the
possible effects interest rate changes may have on us, you should read the &#147;Management&#146;s Discussion and Analysis of Financial Condition&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p14b"></a>Spreading the Risks of Equipment Leasing and Secured Loans By Diversifying Our Investments Will Be Reduced If We Raise Only the Minimum Offering Amount</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We may begin operations if we sell a minimum of 20,000 units, excluding units subscribed for by Pennsylvania and Iowa residents and by our general partner and its affiliates. This will result in net proceeds to us, after organization and offering expenses, of approximately $1,730,000 as described in the &#147;Use of Proceeds&#148; section of this prospectus, which will reduce our ability to acquire a diversified portfolio.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>Iowa and Pennsylvania investors</font></i><font size=2>:  Because the minimum offering amount is less than 1,200,000 units ($12 million), you are cautioned to carefully evaluate our ability to fully accomplish our stated objectives and to inquire as to the current dollar volume of our subscriptions.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p14c"></a>Competition From Other Equipment Lessors Could Delay Investment of Our Capital, Reduce the Creditworthiness of Potential Lessees or Borrowers to Which We Have Access, or Decrease Our Yields</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The equipment leasing business is highly fragmented and competitive. We will compete with:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a large number of national, regional and local banks, savings banks, leasing companies and other financial institutions;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>captive finance and leasing companies affiliated with major equipment manufacturers; and</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>other sources of equipment lease financing, including other publicly-offered partnerships.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Some of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than either we or our general partner and its affiliates will have, even if we sell the maximum number of units in this offering. Competition with these entities may:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>delay investment of our capital;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reduce the creditworthiness of potential lessees or borrowers to which we have access; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>decrease our yields.</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">14</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. A lower cost of funds could enable a competitor to offer leases or secured loans at rates which are less than ours, potentially forcing us to lower our rates or lose potential lessees or borrowers.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p15a"></a>Poor Economic Conditions May Adversely Affect Our Ability to Build Our Portfolio</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A general economic slowdown in the United States during the first several years after we begin operations could adversely affect our ability to invest the proceeds of this offering as quickly as we would like to if businesses aggressively seek to reduce their costs. If this happens, our distributions to you and our other limited partners during the initial period of our operations may be less than if our offering proceeds were fully invested in accordance with our timetable. An economic slowdown might also reduce interest rates, which could reduce the returns we can obtain on our leases and secured loans and, as a consequence, the distributions we can make to you and our other limited partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>An economic slowdown in the United States may:</font></p>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reduce our income or our distributions;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>increase the delinquencies or defaults on our leases and secured loans; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reduce our ability to obtain financing or leverage, including securitizations, to build our equipment portfolio.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p15b"></a>Resignation or Removal of Our General Partner, or Loss of Key Management Personnel of Our General Partner, Could Adversely Affect Our Ability to Conduct Our Business or Make Distributions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our future success depends to a significant degree on the continued service of our general partner and its senior management team and, in particular, Mr.&nbsp;Crit DeMent, our general partner&#146;s chairman of its board of directors and chief executive officer. Although our general partner&#146;s affiliate, LEAF Financial, has entered into an employment agreement with Mr.&nbsp;DeMent, it does not have any current plans to execute employment agreements with any of its other officers or employees, and our general partner has not, and does not intend to, enter into any employment agreement with Mr.&nbsp;DeMent or any of its other officers or other employees. As a result, our general partner may be unable to retain employees or attract and retain new employees, either of which could materially and adversely affect our ability to conduct our business and make distributions to you and our other limited partners.
Neither we, our general partner, nor LEAF Financial maintain key man life insurance with respect to Mr.&nbsp;DeMent.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p15c"></a>Our General Partner&#146;s Operating Systems Could Be Damaged or Disrupted By Events Beyond Its Control, Which Could Interfere With Our Ability to Conduct Our Business and Make Us Less Attractive to Customers as a Source of Equipment Leases and Secured Loans</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our ability to originate leases and secured loans, manage our operations and realize residual values from our equipment leases and secured loans depends on the operating systems of our general partner. In particular, this includes its computer and telecommunications and related equipment, and its ability to protect those systems against damage or disruptions from such contingencies as:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>power loss;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>computer intrusions; and</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>viruses and similar adverse events.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Although our general partner will implement security and protective measures, our general partner&#146;s systems could still be vulnerable. Any damage or disruption to these systems could make us less attractive to customers as a source of equipment leases and secured loans.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p15d"></a>Our Inability to Obtain Insurance For Certain Types of Losses Means We Must Bear the Cost of Any Losses From the Non-Insurable Risks</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>While our equipment leases and secured loans will generally require lessees or borrowers to have comprehensive insurance on the equipment under lease or financed and to assume the risk of loss, some losses may be either uninsurable or not economically feasible to insure, such as losses from war, earthquakes or terrorist acts. Furthermore, we can neither anticipate nor obtain insurance against all possible contingencies that may affect the equipment. If an event occurs for which we have no insurance, we could lose some or all of our investment in the affected equipment.</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p16a"></a>Lack of Independent Counsel or Independent Underwriter May Reduce the Due Diligence Review of Us and Our General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The legal counsel that represents our general partner and the dealer-manager, Chadwick Securities, also represents us. You and our other limited partners, as a group, have not been represented by separate legal counsel, and Chadwick Securities&#146; due diligence examination of us and this offering cannot be considered to be independent. See the &#147;Conflicts of Interest and Fiduciary Responsibilities &#150; Conflicts of Interest&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p16b"></a>You Could Be Liable For Our Obligations If You Participate in the Control of Our Business, and You May Be Required to Return Improperly Received Distributions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In general, limited partners are not liable for the obligations of a limited partnership unless they participate in the control of the limited partnership&#146;s business. What constitutes participating in the control of a limited partnership&#146;s business has not been clearly established in all states. If it were determined that any of the following rights, or the exercise of those rights by the limited partners as a group, constituted participation in the control of our business, then you could be held liable for our obligations to the same extent as a general partner:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the right to remove our general partner;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the right to approve some amendments to our partnership agreement; or</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the right to take other specified actions under our partnership agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This means that you could be held personally liable for our losses beyond the amount you paid for your units. In addition, you may be required to return to us any distribution you received from us if you knew at the time the distribution was made that it was improper because it rendered us insolvent. For a further discussion of your liabilities as a limited partner, you should read the &#147;Summary of Our Partnership Agreement &#150; Limited Liability of Limited Partners&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p16c"></a>Your Ability to Begin an Action Against Our General Partner is Limited By Our Partnership Agreement</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our partnership agreement provides that neither our general partner nor any of its affiliates will have any liability to us for any loss we suffer arising out of any action or inaction of our general partner or an affiliate if the general partner or affiliate determined, in good faith, that the course of conduct was in our best interests and did not constitute negligence or misconduct. As a result of these provisions in our partnership agreement, your right to begin an action against our general partner may be more limited than it would be without these provisions. For a discussion of these provisions of our partnership agreement, you should read the &#147;Conflicts of Interest and Fiduciary Responsibilities &#150; Fiduciary Duty of Our General Partner&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p16d"></a>If We Are, or Become, Subject to Usury Laws, It Could Result in Reduced Revenues or, Possibly, Loss on Our Investment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Equipment leases have sometimes been deemed to be loan transactions subject to state usury laws. These laws impose maximum interest rates that may be charged on loans as well as penalties for violation, including restitution of any excess interest received and declaring the debt to be unenforceable. We will seek to structure our equipment leases so that they will not be deemed to be loans and violate state usury laws. However, uncertainties in the application of some laws may result in inadvertent violations which could result in reduced investment returns or, possibly, loss on our investment in the affected equipment. Also, we may use up to 30% of our total funds available for investment at any given time to make secured loans to end users to finance their purchase of equipment. These loans will be subject to the same risks and uncertainties discussed above.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p16e"></a>Participation With Third-Parties in Joint Ventures May Require Us to Pay Additional Costs or Incur Losses Because of Actions Taken By the Third-Parties</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our partnership agreement permits us to invest in joint ventures. Investing in joint ventures involves risks not present when directly investing in equipment to lease to end users. These risks include:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the possibility that our co-venturer may become bankrupt or otherwise fail to meet its financial obligations, thereby causing us to pay our co-venturer&#146;s share of the joint venture&#146;s debts, since each co-venturer generally must guarantee all of the joint venture&#146;s debts;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our co-venturer may have business or economic objectives or interests that are inconsistent with ours and it may want to manage the joint venture in ways that do not maximize our return;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>actions by a co-venturer might subject equipment leases owned by the joint venture to liabilities greater than those we contemplate; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>when more than one person owns property, there may be a stalemate on decisions, including decisions regarding a proposed sale or other transfer of the assets. Although our partnership agreement requires that any joint venture arrangement in which we participate must contain provisions permitting us to buy the assets from the other co-venturer in the case of a sale, we may not have the resources to do so.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p17a"></a>You May Be Required to Pay Taxes on Income From Us, Even If You Do Not Receive Commensurate Cash Distributions From Us</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You will be required to pay federal income taxes, and probably state and local income taxes, on your share of our taxable income, whether or not you receive cash distributions from us. For example, your share of our taxable income could exceed the amount of cash that we distribute to you if we repay the principal of any debt we incur with rental income or proceeds from the sale of one of our investments. This could happen because repaying the principal amount of a debt  reduces the amount of cash available for distribution to you and our other limited partners, but is not tax deductible. Thus, your cash distributions from us may not equal your share of our taxable income or even equal your tax liability resulting from that income. See the &#147;Federal Income Tax Consequences &#150; Flow Through of Taxable Income&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p17b"></a>We Will Not Apply for an Advance Ruling from the IRS as to Any Federal Tax Consequence of an Investment in Us, and if the IRS Classifies Us as a Corporation You Will Lose Tax Benefits</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will not apply for an advance ruling from the IRS as to whether we will be treated as a partnership for federal tax purposes or with respect to any tax consequence to you of an investment in us. Instead, we intend to rely on the opinion of our special tax counsel. See the &#147;Federal Income Tax Consequences &#150; Special Counsel&#146;s Tax Opinion Letter&#148; section of this prospectus. If the IRS were to successfully contend that we should be treated as a &#147;publicly traded partnership,&#148; then we would be treated as a corporation for federal income tax purposes rather than a partnership. This would have the following principal consequences to you:</font></p>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>tax
          losses realized by us would not pass through to you;</font></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>instead
          of not paying any income tax as a partnership, we would be taxed at
          income tax rates applicable to corporations, which would reduce our
          cash distributions to you; and</font></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our
          distributions to you would be taxable to you as dividend income to the
          extent of our current and accumulated earnings and profits.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>To reduce the possibility that the IRS could successfully contend that our units are &#147;publicly-traded,&#148; Section 13.2(c) of our partnership agreement places substantial restrictions on your ability to transfer your units. With respect to our tax status as a partnership, see the &#147;Federal Income Tax Consequences &#150; Partnership Classification&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p17c"></a>We Could Lose Cost Recovery or Depreciation Deductions if the IRS Treats Our Operating Leases as Sales or Financings</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We intend to claim cost recovery or depreciation deductions on the equipment subject to our operating leases, but not the equipment subject to our full payout leases or secured loans. In this regard, we anticipate that approximately 65% to 75% of our leases will be full payout leases and approximately 25% to 35% of our leases will be operating leases. In addition, up to 30% of our equipment at any given time may be financed for others under secured loans. If the IRS were to successfully contend that our operating leases were actually sales or financings rather than leases, we would not be entitled to cost recovery or depreciation deductions with respect to the equipment covered by those leases. See the &#147;Investment Objectives and Strategies &#150; Equipment for Lease to End Users&#148; section of this prospectus. The IRS could also challenge our method of calculating our cost recovery or depreciation
deductions, or our other deductions, and the amount of our deductions could be reduced if we were audited. See the &#147;Federal Income Tax Consequences &#150; Tax Treatment of Leases,&#148; &#147;&#150; Depreciation,&#148; and &#147;&#150; Limitations on Interest Deductions&#148; sections of this prospectus.</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p17d"></a>You Need Passive Income in Order to Deduct Any Tax Losses We May Generate</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Because
    our operations generally must be treated as passive activities by you and
    our other limited partners, your share of any tax losses we generate will
    be passive losses which you can use on your personal federal income tax returns
    only to offset passive income you receive from us or from other passive activities
    (other than publicly-traded partnerships) in which you invest, if any, in
    calculating your personal federal income tax liability. For example, you
    cannot use a passive loss from us to offset any &#147;active&#148; (i.e.,
    non-passive) income, such as your salary, on your personal federal income
    tax returns. Also, passive losses may not be used to offset &#147;portfolio&#148; income
    such as interest income on our secured loans or other nonpassive income you
    may receive from us or from other passive in which you invest, if any. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size="2">In
    addition, a portion of your share of our gross income might be treated
  for federal income tax purposes as portfolio income and gross income that is
    not from a pasive activity, which means that it cannot be offset by passive
    losses, instead of passive income. See
    the &#147;Federal Income Tax Consequences &#150; Passive Activity Limitations
    on Losses,&#148; and &#147;&#150; Tax Treatment of Leases&#148; sections
    of this prospectus.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p18b"></a>You Will Likely Be Subject to State and Local Taxes as a Result of Purchasing Our Units</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You will likely be subject to state and local taxes imposed by the various jurisdictions in which we do business or own property. Initially, we will own assets and do business in Delaware, which currently imposes a personal income tax. It is your responsibility to file all of your personal federal, state and local tax returns. Our special tax counsel has not given any opinion on the state or local tax consequences of an investment in us. We urge you to seek advice based on your particular circumstances from an independent tax advisor with respect to the state and local tax consequences of purchasing our units. See the &#147;Federal Income Tax Consequences &#150; State and Local Taxation&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p18c"></a>An IRS Audit of Our Annual Federal Information Tax Return May Result in Adjustments to, or an Audit of, Your Personal Income Tax Returns </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We anticipate incurring tax losses during at least our early years due primarily to depreciation of equipment leased to others under our operating leases, operating expenses and the interest deductions related to the borrowings we intend to incur as described in the &#147;Investment Objectives and Strategies &#150; Borrowing,&#148; section of this prospectus. Also, we may be required to file disclosure reports with the IRS and its Office of Tax Shelter Analysis if the tax results of our intended activities cause us to be a &#147;reportable transaction&#148; under the Internal Revenue Code and the Treasury Regulations. Our anticipated tax losses and reportable transaction reports to the IRS, if any, would increase the risk of an IRS audit of our federal information income tax returns, which could result in an IRS audit of your personal federal income tax returns. Also, any adjustments to our returns required by
the IRS could require you to make corresponding adjustments on your personal federal income tax returns. In addition, an IRS audit of your personal federal income tax return could include an examination by the IRS of your returns for prior years, and could cover items unrelated to your investment in us. See the &#147;Federal Income Tax Consequences &#150; Interest and Penalties&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p18d"></a>Your Investment In Us May Cause You to Pay Alternative Minimum Tax</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You may have to pay alternative minimum tax as a result of your investment in us, because you will be allocated a share of our alternative minimum tax preference and adjustment items. For example, depreciation or cost recovery deductions of equipment subject to our operating leases are computed differently for regular federal income tax purposes than for purposes of the alternative minimum tax. This would increase your alternative minimum taxable income, as compared to your regular taxable income, during the early years of the applicable cost recovery or depreciation period of the equipment subject to our operating leases. See the &#147;Federal Income Tax Consequences &#150; Alternative Minimum Tax&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p18e"></a>Your Tax Benefits from an Investment In Us Are Not Contractually Protected</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You
  have no contractual protection against the possibility that a portion or all
  of the intended tax benefits of your investment in us will be disallowed by
  the IRS. No one provides any insurance, tax indemnity or similar agreement for
  the tax treatment of your investment in us. You have no right to rescind your
  investment in us, or to receive a refund of any of your investment in us, if
  a portion or all of the intended tax benefits of your investment in us are ultimately
  disallowed by the IRS or the courts. Also, none of the fees paid by us to our
  general partner, its affiliates or independent third-parties (including our
  special tax counsel) are refundable or contingent on whether the intended tax
  benefits of your investment in us are ultimately sustained if challenged by
  the IRS.</font></p>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p19a"></a>Tax-Exempt
  Organizations Will Have Unrelated Business Taxable Income from an Investment
  in Us</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Tax-exempt organizations are subject to tax on unrelated business taxable income (&#147;UBTI&#148;). Most of our net income, if any, in a given year will constitute UBTI. See the &#147;Federal Income Tax Consequences &#150; Federal Taxation of Employee Benefit Plans and Other Tax-Exempt Organizations&#148; and &#147;Investment by Qualified Plans&#148; sections of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p19b"></a>Foreign
  Investors In Us Will Be Subject to U.S. Tax Withholding and May Be Required
  to File U.S. Tax Returns</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We generally will be required to withhold federal income tax at the highest applicable rate under the Internal Revenue Code on the income we allocate to units owned by foreign investors, whether or not any corresponding cash distributions are made to them. If too much tax is withheld, foreign investors will have to file U.S. income tax returns to seek a refund. See the &#147;Federal Income Tax Consequences &#150; Federal Tax Treatment of Foreign Investors&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p19c"></a>Changes
  in the Law May Reduce the Tax Benefits of Investing in Us</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The present federal income tax treatment of an investment in us may be modified by legislative, judicial or administrative action at any time and the changes may be retroactive. Any future revisions in federal income tax laws and their interpretations could reduce or eliminate the tax advantages to you of your investment in us. See the &#147;Federal Income Tax Consequences &#150; Changes in the Law&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p19d"></a>FORWARD-LOOKING
  STATEMENTS AND ASSOCIATED RISKS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Certain statements included in this prospectus and its exhibits address activities, events or developments that we and our general partner anticipate, as of the date of this prospectus, will or may occur in the future. For example, the words &#147;believes,&#148; &#147;anticipates,&#148; and &#147;expects&#148; are intended to identify forward-looking statements. These forward-looking statements include such things as:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>investment objectives;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>references to future operating results and financial success;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>business strategy;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>estimated future capital expenditures;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>competitive strengths and goals; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>other similar matters.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>These statements are based on certain assumptions and analyses made by us and our general partner in light of our experience and our perception of historical trends, current conditions, and expected future developments. However, whether actual results will conform with these expectations is subject to a number of risks and uncertainties, many of which are beyond our control, including, but not limited to:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>changes in economic conditions, including fluctuations in demand for equipment, interest rates and inflation rates;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the quality of the equipment we acquire and lease or finance;</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the continuing strength of the equipment manufacturers;</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the timing of equipment purchases and our ability to forecast technological advances;</font></p> </td> </tr></table>
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<div align=left>


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    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>technological and economic obsolescence;</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>defaults by lessees or borrowers; and</font></p> </td> </tr></table>
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<div align=left>


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    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>increases in our expenses, including labor, tax and insurance expenses. </font></p> </td> </tr></table>
</div>



<p align="center"><Font size="2" face="serif">19</font></p>

<hr noshade align="center" width="100%" size="2">


<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Thus, all of the forward-looking statements made in this prospectus and its exhibits are qualified by these cautionary statements. You are urged not to place undue reliance on these forward-looking statements, because actual results may differ materially from those anticipated by us and our general partner. For a more complete discussion of the risks and uncertainties to which we are subject, see the &#147;Risk Factors&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p20a"></a>USE
  OF PROCEEDS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The tables below set forth information about our expected use of the proceeds from this offering, assuming we pay the maximum compensation, fees and expense reimbursements permitted under our partnership agreement. Because we have not yet acquired any of our investments, we cannot precisely calculate some of the expenses referred to in the tables below, so the amounts may vary materially. We expect to use approximately 80% of our offering proceeds to acquire equipment to lease to, or finance for, end users, or to acquire equipment subject to existing leases or secured loans.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Minimum offering </font></b><br> <b><font size=1>of units</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Fees and expenses </font></b><br> <b><font size=1>as a percent of </font></b><br> <b><font size=1>offering </font></b><br> <b><font size=1>proceeds (1)</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Offering proceeds (2)(3)</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="1%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>2,000,000</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="10%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>100</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Maximum offering expenses based on the amount of the offering proceeds shown in the table:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Sales commissions and related fees (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(140,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>7.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Dealer-Manager fees (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(60,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Reimbursement for accountable due diligence expenses (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(10,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>0.50</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Total public offering expenses (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(210,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>10.50</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Organization expenses (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(60,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net offering proceeds</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,730,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>86.50</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Acquisition fees (2)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(155,818</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>7.79</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Reserves (7)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(20,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Total proceeds available for investment</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,554,182</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>77.71</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Fees and expenses as a percentage of offering proceeds</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>21.29</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK.</font></B></p>

<p align="center"><Font size="2" face="serif">20</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>






<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Maximum offering </font></b><br> <b><font size=1>of units</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Fees and expenses </font></b><br> <b><font size=1>as a percent of </font></b><br> <b><font size=1>offering </font></b><br> <b><font size=1>proceeds (1)</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Offering proceeds (2)(3)</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="1%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>120,000,000</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="10%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>100</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Maximum offering expenses based on the amount of the offering proceeds shown in the table:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Sales commissions and related fees (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(8,400,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>7.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Dealer-Manager fees (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(3,600,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Reimbursement for accountable due diligence expenses (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(600,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>0.50</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Total public offering expenses (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(12,600,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>10.50</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Organization expenses (4)(5)(6)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(3,600,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net offering proceeds</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>103,800,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>86.50</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Acquisition fees (2)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(9,349,091</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>7.79</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Reserves (7)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,200,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1.00</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Total proceeds available for investment</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>93,250,909</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>77.71</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Fees and expenses as a percentage of offering proceeds</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>21.29</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr></table>
</div>
<br>
<hr noshade size="1" width="100" align="left">

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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

        <td valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The percentages in this column were calculated by dividing the corresponding dollar amount in the first column by the amount of offering proceeds set forth in the table.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We will pay our general partner acquisition fees equal to 2% of the total purchase price of our equipment, including debt relating to the acquisition and out-of-pocket acquisition expenses incurred by our general partner. For example, we anticipate that we will borrow, on average, 80% of the cost of the equipment we acquire. Based on this assumption our total funds available for investment, less the reserves, acquisition fees and public offering and organization expenses shown in the tables above, will be approximately $1,554,182 if we receive the minimum subscription proceeds of $2 million, and approximately $93,250,909 if we receive the maximum subscription proceeds of $120 million. See the &#147;Investment Objectives and Strategies &#150; Borrowing&#148; section of this prospectus. Our use of leverage, by increasing the amount we can invest in our equipment, also increases the
amount of acquisition fees we will pay to our general partner from our offering proceeds. In addition, we expect to acquire all of our leases and secured loans through LEAF Funding, an affiliate of our general partner, which will originate and hold the leases and secured loans on a temporary basis in order to facilitate their acquisition by us. The purchase price we pay LEAF Funding for our leases and secured loans will not exceed LEAF Funding&#146;s cost for acquiring and holding the leases and secured loans until we purchase them. Under United States general accepted accounting principles (&#147;GAAP&#148;), LEAF Funding&#146;s &#147;cost&#148; will include origination fees it pays to certain of its employees for their efforts in locating and facilitating the acquisition of the leases and secured loans by LEAF Funding on our behalf, in amounts typically ranging from 1% to 3% of LEAF Funding&#146;s cost for the leases and secured loans, that qualify as initial direct costs under
GAAP. Our use of leverage, by increasing the amount we can invest in equipment, also increases the amount of our general partner&#146;s acquisition fees and the amount of the purchase price we pay to LEAF Funding for our leases and secured loans as described above.</font></p> </td> </tr></table>
</div>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Excludes $1,000 contributed to us by our general partner at the time of our formation.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We will pay the selling dealers a sales commission of 7% per unit sold. However, we will not pay the 7% sales commissions with respect to units sold to our general partner, its officers, directors and affiliates, registered investment advisors or their clients, the dealer-manager, selling dealers and their registered representatives and principals and investors who buy units through the officers and directors of our general partner. Also, the reimbursement of the selling dealers&#146; bona fide accountable due diligence expenses referred to in (5) below, will not be paid with respect to units sold to our general partner, its officers, directors or affiliates, or to investors who buy units through officers and directors of our general partner.</font></p> </td> </tr></table>
</div>
<div align=left>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(5)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We will pay an amount equal to 3% of our offering proceeds to Chadwick Securities for acting as the dealer-&#173;manager of a group of selling dealers that will be selected to sell our units. Out of the dealer-manager fee received by Chadwick Securities, it may pay the selling dealers up to 1% per unit as a marketing fee and use a portion or all of the remainder of the dealer-manager fee for other underwriting expenses, including permissible non-cash compensation, as described in the &#147;Plan of Distribution&#148; section of this prospectus. This permissible non-cash compensation may be deemed to be additional sales compensation to the selling dealers. Chadwick Securities also will receive reimbursement of the selling dealers&#146; bona fide accountable due diligence expenses of up to .5% of our offering proceeds, all of which will be reallowed by it to the selling dealers.</font></p> </td> </tr></table>
</div>



<p align="center"><Font size="2" face="serif">21</font></p>

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<page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>












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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(6)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our organization and offering expenses do not include sales commissions, dealer-manager fees, and reimbursements of bona fide accountable due diligence expenses of the selling dealers of up to .5% of our offering proceeds that Chadwick Securities will receive and reallow to the selling dealers as described in the &#147;Plan of Distribution&#148; section of this prospectus. Our organization and offering expenses, however, do include legal, accounting and escrow fees, printing costs, filing and qualification fees, overhead costs of our general partner in organizing us and preparing us for the offer and sale of our units and similar fees and expenses. To the extent that our actual organization and offering expenses exceed our general partner&#146;s 3% organization and offering expense allowance to pay for those expenses, the excess must be paid by our general partner
without any reimbursement from our offering proceeds.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(7)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Initially, we intend to establish reserves equal to approximately 1% of our offering proceeds for working capital purposes. The amount of our reserves may vary from time to time as our general partner determines the appropriate amount of reserves for our operations. The amount of reserves our general partner establishes will depend on its analysis of:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the timing and amount of lease and secured loan payments we receive;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our debt service payments on our borrowings and securitizations;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our costs and expenses and other existing liabilities;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our general partner&#146;s expectations regarding our potential future liabilities, if any; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>whether our general partner determines a reserve is needed for our future investment acquisitions.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p22a"></a>MANAGEMENT COMPENSATION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following table sets forth our estimate of the maximum amounts of all compensation and other payments that our general partner and its affiliates will receive, directly or indirectly, from us. This compensation was not determined by arm&#146;s-length negotiation. Our partnership agreement does not permit our general partner or its affiliates to receive more than the maximum fees or expenses stated for each type of compensation by reclassifying those items under a different category.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Offering Stage (1)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Entity receiving compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="39%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Type and method of compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="39%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Estimated amount</font></b></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chadwick Securities</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dealer-manager fee of 3% of the offering proceeds for acting as the dealer-manager for a group of selling broker dealers.</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$60,000 if we sell the minimum offering amount; $3.6 million if we sell the maximum offering amount. From this amount, Chadwick Securities may pay the selling dealers up to 1% of the proceeds of each unit sold by them as a marketing fee and use a portion or all of the remaining dealer-manager fee for other underwriting expenses, including permissible non-cash compensation, as described in the &#147;Plan of Distribution&#148; section of this prospectus.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chadwick Securities</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Sales commissions of 7% of the proceeds of each unit sold by it.</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Not determinable at this time. We do not anticipate that Chadwick Securities will sell a material number of units. If all units were sold by Chadwick Securities, it would receive $140,000 for the minimum offering amount and $8.4 million for the maximum offering amount.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chadwick Securities</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Bona fide accountable due diligence expenses.</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>This amount includes reimbursements paid to Chadwick Securities of up to .5% of our offering proceeds, all of which will be reallowed by it to the selling dealers for their bona fide accountable due diligence expenses.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner </font><br> <font size=2>and its affiliates</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Organization and offering expense allowance of 3% of the offering proceeds.</font></p> </td>

        <td valign=top >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$60,000 if we sell the minimum offering amount; $3.6 million if we sell the maximum offering amount.</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">22</font></p>

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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Operational Stage</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Entity receiving compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="41%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Type and method of compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="37%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Estimated amount</font></b></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
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        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Acquisition fee equal to 2% of the purchase price we pay to the seller for equipment we purchase to lease to third-parties, equal to 2% of the purchase price we pay to the seller for equipment subject to existing leases that we acquire, and equal to 2% of the purchase price we pay to the seller for equipment we purchase to finance for third-parties pursuant to our secured loans. </font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The purchase price of our equipment or existing leases on which our general partner&#146;s acquisition fees are based, include amounts attributable to debt or securitization financing we incur or assume in connection with the equipment, leases or secured loans. Our general partner will pay its out-of-pocket expenses related to its acquisition activities on our behalf, but not the acquisition expenses incurred by its affiliate, LEAF Funding, as discussed below, and our general partner will not be reimbursed by us for those expenditures other than through its receipt of these acquisition fees, although it will receive reimbursements for certain operating expenses we incur as described below. Notwithstanding, the acquisition expenses will be included in the purchase price of the equipment and leases, or the principal amount of the secured loans, on which our general
partner&#146;s 2% acquisition fee is based. </font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>In addition, we expect to acquire all of our leases and secured loans through LEAF Funding, an affiliate of our general partner, which will originate and hold the leases and secured loans on a temporary basis in order to facilitate their acquisition by us. The purchase price we pay LEAF Funding for our leases and secured loans will not exceed LEAF Funding&#146;s cost for acquiring and holding the leases and secured loans until we purchase them. Under United States general accepted accounting principles (&#147;GAAP&#148;), LEAF Funding&#146;s &#147;cost&#148; will include origination fees it pays to certain of its employees for their efforts in locating and facilitating the acquisition of the leases and secured loans by LEAF Funding on our behalf, in amounts typically ranging from 1% to 3% of LEAF Funding&#146;s cost for the leases and secured loans, that qualify as
initial direct costs under GAAP. Our use of leverage, by increasing the amount we can invest in equipment, also increases the amount of our general partner&#146;s acquisition fees and the amount of the purchase price we pay to LEAF Funding for our leases and secured loans as described above. (2)</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Total acquisition fees, assuming our anticipated use of financing of 80%, on average, of the cost of the equipment we acquire, would be approximately 7.8% of our offering proceeds. Thus, the total acquisition fees would be approximately $155,818 if we sell the minimum offering amount and $9,349,091 if we sell the maximum offering amount as set forth in the &#147;Use of Proceeds&#148; section of this prospectus. </font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">23</font></p>

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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Operational Stage</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Entity receiving compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="41%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Type and method of compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="37%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Estimated amount</font></b></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Subordinated asset management fee for managing each type of investment described below equal to the lesser of the amount, for each type of lease or financing arrangement described below, that is reasonable, competitive, and would customarily be paid to non-affiliated third-parties rendering similar services in the same geographic location and for similar types of investments or:</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt; text-align:left; margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
          our operating leases managed by third-parties under our general partner&#146;s
          supervision &#150; 1% of gross rental payments;</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
          our operating leases managed by our general partner or its affiliates
          &#150; 4% of gross rental payments;</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
          our full payout leases which contain net lease provisions &#150; 2%
          of gross rental payments; and/or</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
          our secured loans &#150; 2% of gross principal and interest payments.</font></p>
      </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Not determinable at this time. During the period ending five years after this offering terminates, we will subordinate and defer payment of the management fees to the receipt by you and our other limited partners of annual cash distributions equal to 8% of your capital contributions, as adjusted by certain distributions made to you which are deemed to be a return of capital, on a cumulative basis as described in the &#147;Income, Losses and Distributions &#150; Reinvestment of Our Revenues in Additional Leases and Secured Loans&#148; section of this prospectus.</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Subordinated remarketing fee for arranging the sale of any investment equal to the lesser of:</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3%
          of the contract sales price; or</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;one-half
          the competitive commission charged by independent third-parties for
          comparable services. (5)</font></p>
      </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Not determinable at this time. We will not accrue or pay a subordinated remarketing fee for any portion of sales proceeds which we reinvest. We will subordinate and defer payment of the remarketing fees to the receipt by you and our other limited partners of cash distributions equal to the purchase price of your units plus annual cash distributions equal to 8%, compounded daily, of your capital contributions, as adjusted by certain distributions made to you which are deemed to be a return of capital, on a cumulative basis as described in the &#147;Income, Losses and Distributions &#150; Reinvestment of Our Revenues in Additional Leases and Secured Loans&#148; section of this prospectus.</font></p> </td> </tr></table>
</div>







<p align="center"><Font size="2" face="serif">24</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Operational Stage</font></b></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Entity receiving compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="41%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Type and method of compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="37%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Estimated amount</font></b></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Re-leasing fee for arranging the re-lease of equipment equal to the lesser of:</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2%
          of gross rental payments derived from the re-lease; or</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
          competitive rate for comparable services for similar equipment. (5)</font></p>
      </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Not determinable at this time. Re-leasing fees are subject to the following limitations:</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we
          will pay the re-leasing fees only if our general partner maintains adequate
          staff to provide re-leasing services;</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we
          will pay re-leasing fees only as we receive the related lease payments;</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we
          will not pay re-leasing fees if the re-lease is to the original lessee
          or its affiliates;</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we
          will pay re-leasing fees only if our general partner has rendered substantial
          re-leasing services; and</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;we
          will pay re-leasing fees only if our general partner is compensated
          for rendering equipment management services, whether or not the asset
          management fee is then subordinated.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Partnership interest equal to 1% of all of our income, losses and cash distributions.</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Not determinable at this time.</font></p> </td> </tr>

        <td width="16%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="41%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Reimbursement for our operating expenses paid on our behalf, including the actual cost of goods and materials obtained from unaffiliated third-parties, and also including reimbursement for our general partner&#146;s administrative services reasonably necessary or advisable in its discretion to our prudent operation (e.g. legal and accounting expenses), provided that the reimbursement may not exceed the lesser of:</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
          actual cost of the services; or</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
          amount we would be charged by independent third-parties for comparable
          services.</font></p>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Also, there is no reimbursement for these services if they are already covered by a separate fee, and our general partner and its affiliates will not be reimbursed for the following expenses:</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;salaries,
          fringe benefits, travel expenses or other overhead costs incurred by
          any controlling person of our general partner or its affiliates (6);
          or</font></p>

        <p style=' margin-left:0.6in;text-indent:-25.9pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;rent,
          depreciation, utilities, capital equipment or other similar overhead
          costs.</font></p>
      </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="37%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Not determinable at this time.</font></p> </td> </tr></table>
</div>








<p align="center"><Font size="2" face="serif">25</font></p>

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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Liquidation Stage</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Entity receiving compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="41%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Type and method of compensation</font></b></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="37%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Estimated amount</font></b></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General partner and its affiliates</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our general partner&#146;s and its affiliates&#146; compensation during the liquidation period generally is the same as set forth in &#147;&#150; Operational Stage,&#148; above, except that no fees or expense reimbursements associated with new investments will be paid since no revenues may be reinvested in purchases of additional equipment during the liquidation period. The liquidation period begins five years after the last closing date on which we admit subscribers for units as limited partners. It ends when all of our assets have been sold, our creditors have been paid, the remaining proceeds have been distributed to our partners and a certificate of termination has been filed.</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>See &#147;&#150; Operational Stage,&#148; above.</font></p> </td> </tr></table>
</div>



<hr noshade size="1" width="100" align="left">


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>If you choose to use your cash distributions from your initial investment in us to purchase additional units during the offering period, or your cash distributions from your prior investments, if any, in LEAF I or LEAF II, which are the previous equipment leasing funds sponsored by LEAF Financial, an affiliate of our general partner then the units will be purchased at the public offering price and on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements, except for the discounted price for certain investors described in the &#147;Plan of Distribution&#148; section of this prospectus, and except that there is no minimum amount of units that must be purchased using distributions from LEAF I, LEAF II,
or both. Ohio residents, however, cannot elect to reinvest their distributions from us, LEAF I or LEAF II, in our units.</font></p> </td> </tr></table>
</div>




<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Acquisition fees include our general partner&#146;s out-of-pocket expenses in connection with our acquisition of equipment, leases and secured loans, but do not include fees to unaffiliated finders and brokers. Acquisition fees also do not include origination fees paid by LEAF Funding to certain of its employees in connection with their efforts in locating equipment, leases and secured loans and facilitating their acquisition on our behalf, that qualify under GAAP as initial direct costs and are included in LEAF Funding&#146;s cost to temporarily acquire the equipment, leases and secured loans we purchase from LEAF Funding. Our general partner will reduce or refund acquisition fees if our investment in equipment, including equipment leases and secured loans, is less than the greater of:</font></p> </td> </tr></table>
</div>




<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>80% of the offering proceeds reduced by .0625% for each 1% of financing encumbering our investments; or</font></p> </td> </tr></table>
</div>




<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>75% of the offering proceeds.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><font size=2>For example, if we had no financing, we would invest at least 80% of our offering proceeds in our investments. If we had 80% financing, we would invest at least 75% of our offering proceeds in our investments, computed as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:15%;text-align:left;'><font size=2>80% x .0625% = 5%</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15%;text-align:left;'><font size=2>80% - 5% = 75% </font></p>


<div align=left>


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    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>An operating lease is one in which the aggregate noncancellable rental payments during the initial term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment. A full payout lease is one in which the gross rental payments, on a net present value basis, are at least sufficient to recover the purchase price of the equipment. Typically, rental payments under a full payout lease also include an appropriate return. </font></p> </td> </tr>







    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We will pay the asset management fee monthly, subject to its subordination. This fee is for our general partner&#146;s services in:</font></p> </td> </tr></table>
</div>




<div align=left>


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        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>establishing our portfolio, including obtaining financing;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>collecting lease revenues;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>monitoring compliance by lessees with the lease terms;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>assuring that equipment is being used in accordance with all contractual arrangements;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>arranging for necessary maintenance and repair of equipment if a lessee fails to do so;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>monitoring property, sales and use tax compliance; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>preparing operating and financial data reports.</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">26</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(5)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>A &#147;Competitive&#148; commission is one which is reasonable, customary and competitive in light of the size, type and location of the equipment.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(6)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our partnership agreement defines a &#147;controlling person&#148; of our general partner or any of its affiliates as its chairmen, directors, presidents, or other executive or senior officers, any holder of a 5% or greater interest in our general partner or any such affiliate or any person having the power to cause the direction of our general partner or any such affiliate, whether through ownership of voting securities, by contract or otherwise.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We estimate that the total amount of reimbursable operating expenses during our first full year of operations, assuming we sell the maximum number of units, may be between approximately $700,000 and $900,000. Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;), which was initially sponsored by LEAF Asset Management, Inc., a wholly-owned subsidiary of our general partner that merged into LEAF Financial, an affiliate of our general partner, in June 2004, began operations March 3, 2003 and closed its offering of units on August 15, 2004, with offering proceeds of $17,060,774. As of June 30, 2006, see the table below, our general partner and its affiliates had received cumulative administrative expense reimbursements of $1,900,729 (unaudited) from LEAF I. Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), which was sponsored by LEAF Financial, an affiliate of our general partner, began
operations April 14, 2005 and had its final closing date on _______________, 2006. As of June 30, 2006, see the table below, our general partner and its affiliates had received cumulative administrative expense reimbursements of $630,719 (unaudited) from LEAF II. Also, see the &#147;Other Programs Managed by Our General Partner or its Affiliates&#148; section of this prospectus regarding the other programs sponsored by LEAF Financial before it was acquired by Resource America and new management installed.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following is a tabular presentation of the administrative expenses reimbursed to LEAF Financial, as general partner, including reimbursements to LEAF Asset Management, Inc. before it was merged into LEAF Financial, and its affiliates by LEAF I and LEAF II as discussed above.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Summary of Administrative Expense Reimbursements of LEAF Financial&#146;s Prior Programs</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>as of June 30, 2006 (unaudited) (1)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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      <td valign=bottom >&nbsp; </td>

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<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Cumulative reimbursement of</font></b><br> <b><font size=1>administrative expenses to</font></b><br> <b><font size=1>general partner as of date of table</font></b></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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      <td valign=top >&nbsp; </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>Program</font></b></p>

      </td>

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<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>2006</font></b></p> </td>

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<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>2005</font></b></p> </td>

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<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>2004</font></b></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b><font size=1>2003</font></b></p> </td>

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<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td width="1%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Lease Equity Appreciation Fund I, L.P. (2) (3)</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="0%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="8%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$268,953</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td width="7%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>554,611</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td width="7%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>482,180</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="0%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="8%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$594,985</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Lease Equity Appreciation Fund II, L.P. (2)(4)</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$290,793</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>339,926</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size="2">-0-</font></p>
      </td>

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<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>N/A</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our general partner, LEAF Asset Management, LLC, has not previously sponsored any equipment leasing funds. However, LEAF Financial, an affiliate of our general partner, has previously sponsored the two equipment leasing funds set forth in the table.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>These expense reimbursements consist of labor expenses of employees of LEAF Financial and its affiliates for services related primarily to accounting, collections, and investor services, and are based on the employees&#146; time records. </font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Lease Equity Appreciation Fund I, L.P. did not conduct any operations or reimburse any expenses to LEAF Financial, its general partner, in 2002, because it had not yet reached its minimum subscriptions.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Lease Equity Appreciation Fund II, L.P., which was formed in 2004, did not conduct any operations or reimburse any expenses to LEAF Financial, its general partner, in 2004, because it had not yet reached its minimum subscriptions.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2><a name="p28a"></a>CONFLICTS OF INTEREST AND FIDUCIARY RESPONSIBILITIES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p28b"></a>Conflicts of Interest</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p28c"></a>In General</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner may be subject to various conflicts of interest arising out of its relationship to us. Because of our general partner&#146;s organizational and operational control over us, these conflicts will not be resolved through arms-length negotiations but, rather, through the exercise of our general partner&#146;s judgment consistent with its fiduciary responsibilities to you and us. Some provisions of our partnership agreement are designed to protect the interests of you and our other limited partners if conflicts arise. In this regard, you should read Article IX of our partnership agreement and, in particular, Sections 9.2 and 9.5. These sections do the following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>limit the actions our general partner may take on our behalf;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>limit the compensation and fees we will pay our general partner and its affiliates; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>limit the expenses for which we will reimburse our general partner and its affiliates.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Further, our general partner depends on its indirect parent company, Resource America, for management and administrative functions and financing for capital expenditures. Neither our partnership agreement nor any other agreement requires Resource America to pursue a future business strategy that favors us. Resource America&#146;s directors and officers have a fiduciary duty to make decisions in the best interests of the stockholders of Resource America. Because our general partner is allowed to take into account the interests of parties other than us, such as Resource America, in resolving our conflicts of interest, our general partner&#146;s management, administrative and financial dependence on Resource America has the effect of limiting its fiduciary duty to us.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>However, our partnership agreement does not necessarily directly respond to each potential conflict, and there will be no established mechanism to resolve these conflicts. In these situations, our general partner will rely solely on its judgment, subject to its fiduciary duties, to resolve the conflict. The potential conflicts include those set forth below.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p28d"></a>Our General Partner&#146;s Compensation is Not the Result of Arm&#146;s Length Negotiation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner has unilaterally determined the compensation that we will pay it and its affiliates, including Chadwick Securities, LEAF Funding and LEAF Financial. However, our general partner believes that the amount of compensation is consistent with practices in the industry and applicable offering guidelines in effect on the date of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p28e"></a>Actions Taken By Our General Partner Will Affect the Amount of Cash Available For Distribution to Limited Partners and Our General Partner&#146;s Compensation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The amount of cash we have available for distribution to you and our other limited partners will be affected by decisions of our general partner regarding various matters, including:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the amount and timing of equipment purchases and sales;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>cash expenditures;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>financing; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the creation, reduction or increase of reserves.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We intend to increase the amount of equipment we can acquire and lease by obtaining financing to provide approximately 80% of the aggregate cost of all of the equipment we acquire. The actual amount of borrowings we incur, however, may be higher or lower than that amount. In addition, using financing to increase the amount of equipment we acquire will also increase our general partner&#146;s acquisition and management fees, which are directly based on the total amount of our assets, and the purchase price of the equipment, leases and secured loans we purchase from LEAF Funding at its cost, which includes the origination fees it pays to certain of its employees that qualify as initial direct costs of LEAF Funding under GAAP. See the &#147;Management Compensation&#148; section of this prospectus.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner will be liable for our obligations to the extent that they exceed our assets. As a result, our general partner has the right to cause us to establish and maintain cash reserves that it believes are necessary to meet our obligations. Because our general partner may be exposed to liability to our creditors if our reserves are insufficient to pay our contingent liabilities, our general partner may have a conflict of interest in allocating our cash flow between distributions to you and our other limited partners or to our reserve accounts. To the extent that our general partner increases the amount of cash it allocates to reserves, the amount of cash available for distributions to you and our other limited partners will decrease and our general partner&#146;s exposure to our contingent liabilities may be lessened.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p29a"></a>Our General Partner and Its Affiliates Will Engage in Activities That Compete With Us</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our partnership agreement does not prohibit our general partner or its affiliates from investing in, acquiring or leasing equipment, and they will continue to engage in acquisitions, financing, refinancing, leasing and re-leasing opportunities on their own behalf or on behalf of other partnerships or entities. Neither our general partner nor its affiliates may, however, publicly offer for sale interests in more than one equipment leasing program simultaneously unless the programs:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>have different investment objectives; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>are specified equipment programs, as defined under relevant securities regulations or guidelines.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner and its affiliates have the right to take for their own accounts, or to recommend to any program they manage, any particular investment opportunity, subject to the limitations set forth in our partnership agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Any conflicts in determining and allocating investments between us and our general partner, or between us and another program managed by our general partner or its affiliates, will be resolved by our general partner&#146;s investment committee, which also will serve as LEAF Financial&#146;s investment committee as discussed in the &#147;Management &#150; Investment Committee&#148; section of this prospectus. Generally, if an investment is appropriate for more than one program our general partner and its investment committee will allocate the investment to a program (which includes us) after taking into consideration at least the following factors:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>which program has been seeking investments for the longest period of time;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>whether the program has the cash required for the investment;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>whether the amount of debt to be incurred with respect to the investment is acceptable for the program;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the effect the investment would have on the program&#146;s cash flow;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>whether the investment would further diversify, or unduly concentrate, the program&#146;s investments in a particular lessee, class or type of equipment, location, industry, etc.; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>whether the term of the investment is within the term of the program.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notwithstanding the foregoing, our general partner and its investment committee may make exceptions to these general policies when, in our general partner&#146;s judgment, other circumstances make application of these policies inequitable or uneconomic.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p29b"></a>We May Enter Into Joint Ventures With Affiliated Programs</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We may invest in joint ventures with other programs that are sponsored by our general partner or its affiliates. These investments may result in conflicts of interest resulting from the differing financial positions of the co-venturers. For example, it may be in the interest of one entity to sell jointly-held equipment while it may be in the interest of the other entity to continue holding the equipment. However, we will not participate in a joint venture unless:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we and the other program have similar investment objectives;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we and the other program invest on substantially the same terms;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>there are no duplicate fees;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our general partner&#146;s compensation in us and the other program is substantially the same;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we have the right of first refusal to buy any investment the other program wants to sell; and </font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the joint venture is entered into either for the purpose of effecting appropriate diversification for us and the other program, or for the purpose of relieving our general partner or its affiliates from a commitment entered into for the purposes of:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>facilitating our acquisition of equipment or equipment leases or secured loans;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>borrowing money or otherwise obtaining financing for us; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other lawful purpose related to our business.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notwithstanding, there may be an impasse on joint venture decisions since neither we nor the other program will have complete control over the joint venture&#146;s equipment and, although we will have the right to buy the equipment from the other joint venturer in the event of a sale, we may not have the resources do so.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p30a"></a>We Do Not Have Any Employees and Rely on the Employees of Our General Partner and Its Affiliates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We do not have any officers or employees and will rely solely on the officers and employees of our general partner and its affiliates to manage us and our business. Our general partner and its affiliates will conduct business activities of their own in which we will have no economic interest. The officers and employees of our general partner and its affiliates who provide services to us are not required to work full time on our affairs and will devote significant time to the affairs of our general partner and its affiliates and will be compensated by our general partner and its affiliates for those services. There may be significant conflicts between us and our general partner and its affiliates regarding the availability of these officers and employees to provide services to us.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p30b"></a>We Must Reimburse Our General Partner and Its Affiliates for Expenses</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We must reimburse our general partner and its affiliates for costs incurred by them in managing and operating us, including specified costs incurred by them in providing corporate staff and support services properly allocable to us. See the &#147;Management Compensation&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p30c"></a>We Have Not Retained Separate Counsel or Other Professionals</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The legal counsel that represents our general partner and the dealer-manager, Chadwick Securities, also represents us. You and our other limited partners, as a group, have not been represented by legal counsel. Counsel has not acted on behalf of you and other prospective investors in us, nor has counsel conducted a review or investigation of us, our general partner or this offering on your behalf. Therefore, none of the agreements and arrangements between us and our general partner, including our partnership agreement, or between us and our general partner&#146;s affiliates, including Chadwick Securities, LEAF Funding and LEAF Financial, was negotiated on an arm&#146;s length basis.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The attorneys, accountants and other experts who perform services for us will also perform services for our general partner, its affiliates and for other partnerships or ventures that our general partner or its affiliates may sponsor. However, should a dispute arise between us and our general partner, we will retain separate legal counsel to represent us in the matter.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p30d"></a>Lack of Independent Underwriter and Due Diligence Investigation in This Offering</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The dealer-manager for this offering is Chadwick Securities, an affiliate of our general partner. Although Chadwick Securities will receive a reimbursement of up to .5% of our offering proceeds for the bona fide accountable due diligence expenses of the selling dealers, all of which it will reallow to the selling dealers, its review and due diligence investigation of us and the information provided in this prospectus cannot be deemed to be independent.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p30e"></a>Conflicts Regarding Redemption of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You and our other investors may present your units to us for redemption at any time. This creates the following conflicts of interest between you and our general partner.</font></p>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>We have no obligation to redeem your units at any time for any reason. Our general partner may decline your redemption request in its sole discretion. For example, if our general partner determines that we do not have the necessary cash flow, taking into account future distributions to our other partners and foreseeable investments, reinvestments, and operating expenses, your request may be declined. In addition, our general partner may conclude that the redemption might cause our total unit transfers in the year to exceed 2% of our total capital or profits interests, which is not permitted under our partnership agreement. See Appendix A to this prospectus. All of these determinations are subjective and will be made in our general partner&#146;s sole discretion.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Our general partner will also determine the redemption price based on provisions set forth in our partnership agreement. To the extent the formula for arriving at the redemption price has any subjective determinations, they will fall within the discretion of our general partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>See the &#147;Redemption of Units&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p31a"></a>Our General Partner Also is Our Tax Matters Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner will serve as our tax matters partner and represent us before the IRS and all other taxing authorities. As tax matters partner, our general partner will have broad authority to act on behalf of you and our other investors in any administrative or judicial proceeding involving the IRS, and this authority may involve conflicts of interest. For example, a potential conflict would include whether to contest or settle a proposed adjustment by the IRS to the amount of our depreciation deductions under our operating leases, which are allocated 99% to you and our other investors. While our general partner will take into account the interests of you and our other investors as a whole, there is no assurance that any settlement would be in the best interest of you or any other particular investor given your or his particular tax situation.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p31b"></a>Our General Partner and Its Affiliates Will Purchase Units as Investors</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner and its affiliates currently intend to purchase not less than 10,000 units ($1 million) and may acquire up to approximately 5% of the total units sold in this offering, if greater. These subscriptions will not be included in the minimum number of units required for us to begin operations, but the price of their units will be reduced by 7% as described in the &#147;Plan of Distribution&#148; section of this prospectus. Thus, even though they pay a reduced price for their units, these investors generally will:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>share in our income, losses and distributions on the same basis as you and our other investors as described in the &#147;Income, Losses and Distributions&#148; section of this prospectus; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>have the same voting rights, except that they are prohibited from voting on the removal of our general partner as general partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The purchase of units by our general partner, its officers, directors, or other affiliates as limited partners will dilute the voting rights of you and our other investors and there may be a conflict with respect to certain matters. See the &#147;Summary of Our Partnership Agreement &#150; Voting Rights of Limited Partners&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p31c"></a>General Restrictions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>To reduce, but not eliminate, certain conflicts of interest we will not:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>issue any units after this offering terminates or issue units in exchange for property;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>make loans to our general partner or its affiliates;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>receive loans from our general partner or its affiliates unless the loan has a term of 12 months or less from the date on which it was made and any interest or other financing charges or fees we pay do not exceed the lower of the following:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if our general partner borrowed to make the loan, the rate of interest and other amounts paid or payable by our general partner or its affiliate in connection with the borrowing; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if our general partner did not borrow to make the loan, the rate of interest and other amounts paid or payable in an arm&#146;s-length borrowing that we could obtain, without reference to our general partner&#146;s or its affiliate&#146;s financial abilities or guarantees;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>invest in or underwrite the securities of other partnership programs;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>operate in a manner that would cause us to be classified as an &#147;investment company&#148; for purposes of the Investment Company Act of 1940;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>grant our general partner or any of its affiliates exclusive listing rights to sell our investments or other assets;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>except as described in this prospectus, permit our general partner or any of its affiliates to receive a fee or commission in connection with the reinvestment of our cash from sales or operations, or the resale, re-lease, exchange or refinancing of equipment, except as permitted by our partnership agreement and as described in this prospectus;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>grant our general partner or any of its affiliates any rebates or give-ups or participate in any reciprocal business arrangements with them that would circumvent the restrictions in our partnership agreement, including the restrictions applicable to transactions with affiliates of our general partner;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>permit our general partner, directly or indirectly, to pay or award any commissions or other compensation to any person engaged by a potential investor for investment advice as an inducement to the advisor to advise the purchaser of our units; but this does not prohibit the normal sales commissions payable to the selling dealers as described in the &#147;Plan of Distribution&#148; section of this prospectus;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>purchase or lease any equipment from, or sell or lease equipment to, our general partner or its affiliates or any investment program in which they have an interest. However, if the conditions set forth below are met, we expect that we will acquire all of our equipment, leases and secured loans from LEAF Funding, an affiliate of our general partner, and that LEAF Funding will first acquire the equipment on a temporary or interim basis in order to facilitate our acquisition of the equipment or our financing needs. The conditions referred to above are the following:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our general partner or its affiliate, including LEAF Funding, holds the equipment only on an interim basis, generally not longer than six months, for purposes of facilitating the acquisition of the equipment by us, borrowing money or obtaining financing for us or for other purposes related to our business;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our general partner determines that the acquisition of the equipment is in our best interest;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>we acquire the equipment at a price no greater than the cost to our general partner or its affiliates, as determined under GAAP and as adjusted for intervening operations, plus compensation permitted under our partnership agreement and described in this prospectus;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>there is no difference in interest terms of any financing secured by the equipment at the time acquired by our general partner or its affiliates and the time acquired by us; and</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>our general partner or its affiliates do not benefit from the transaction apart from compensation permitted under our partnership agreement and described in this prospectus. See the &#147;&#150; We May Enter Into Joint Ventures With Affiliated Programs,&#148; above, and the &#147;Investment Objectives and Strategies &#150; Origination and Servicing Agreement&#148; section of this prospectus.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, except as permitted under the Origination and Servicing Agreement and our partnership agreement, our general partner may not enter into any agreements, contracts or arrangements on our behalf with itself or any of its affiliates.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p32a"></a>Fiduciary Duty of Our General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner is accountable to us as a fiduciary. Under Delaware law, this generally means that our general partner has duties of due care and fair dealing in acting for us and handling our affairs. Our partnership agreement does not excuse our general partner from liability or provide it with any defenses for breach of its fiduciary duty. However, our partnership agreement does permit our general partner and its affiliates to have business interests or activities that may conflict with ours, and includes provisions to resolve conflicts in allocating investment opportunities among us and other programs that may be sponsored by our general partner and its affiliates.</font></p>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The fiduciary duty owed by a general partner is analogous to the
  fiduciary duty owed by directors to a corporation and its stockholders and is
  subject to the same rule, commonly referred to as the &#147;business judgment
  rule.&#148; Under this rule, directors are not liable for mistakes made in the
  good faith exercise of honest business judgment or for losses incurred in the
  good faith performance of their duties when performed with such care as an ordinarily
  prudent person would use. Under the terms of our partnership agreement our general
  partner and its affiliates have limited their liability to us and to you and
  our other investors for any loss suffered by us or by you and our other investors
  that arises out of any action or inaction on their part if:</font></p>



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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>they determined in good faith that the course of conduct was in our best interest;</font></p> </td> </tr></table>





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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>they were acting on behalf of, or performing services for, us; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>their course of conduct did not constitute negligence or misconduct.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, as permitted by Delaware law, we will indemnify our general partner and its affiliates against any loss of the kind described in the preceding sentence to the extent of our own assets, but without any additional obligation on the part of you and our other limited partners. However, we will not indemnify our general partner or its affiliates for any violation, or alleged violation, of federal or state securities laws unless:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>there has been a judgment on the merits in favor of our general partner and its affiliates or the claims were dismissed on the merits by the court;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the court has been advised by us of the position of the SEC and applicable state securities law authorities on the issue of indemnification for securities law violations; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the court approves the indemnification of litigation and/or settlement costs.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The effect of the foregoing provisions may be to limit your recourse to our general partner. However, you should be aware that, in the SEC&#146;s opinion, the indemnification for liabilities under the Securities Act of 1933, as amended, is contrary to public policy and therefore unenforceable.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Delaware Revised Uniform Limited Partnership Act provides that a limited partner may institute legal action (a &#147;derivative&#148; action) on a partnership&#146;s behalf to recover damages from a third-party when the general partner refuses to institute the action or where an effort to cause the general partner to do so is not likely to succeed. In addition, the statutory or case law may permit a limited partner to institute legal action on behalf of himself and all other similarly situated limited partners (a &#147;class action&#148;) to recover damages from a general partner for violations of its fiduciary duties to the limited partners. In addition, we will not incur the cost of that portion of any insurance that insures any party against any liability the indemnification of which is prohibited under our partnership agreement; provided, however, that with respect to public liability insurance
obtained by us in connection with any of our equipment, equipment leases, secured loans or business operations, our general partner is permitted to add itself as an additional insured thereunder so long as, and to the extent that, our general partner pays for the incremental premium costs resulting from its being added as an additional insured. For this purpose, &#147;public liability insurance&#148; includes insurance that would cover damage to property or personal injury to non-affiliated persons incurred during the performance of services related to us and our operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p33a"></a>MANAGEMENT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p33b"></a>Our General Partner. </font></b><font size=2>Our general partner is LEAF Asset Management, LLC, a Delaware limited liability company with offices at 1818 Market Street, 9<sup>th</sup> Floor, Philadelphia, Pennsylvania 19103. Our general partner was formed in August 2006 to act as the general partner and manager of equipment leasing and financing partnerships, and its executive officers and directors will be responsible for selecting, managing and disposing of our equipment, leases and secured loans. In this regard, after we receive the minimum offering proceeds and hold our initial closing, we intend to enter into the Origination and Servicing Agreement under which LEAF Funding, a wholly-owned subsidiary of LEAF Financial and an affiliate of our general partner, will originate leases and secured loans for us and LEAF Financial, an affiliate of our general partner, will service our
portfolio of leases and secured loans. LEAF Financial has more than 100 individuals, including LEAF Funding&#146;s field sales force and telephone sales force that are dedicated to originating leasing assets. LEAF Financial also uses a complete technology platform that enables automated lease applications, credit scoring, customer relationship management, asset tracking, collection management, and document generation. See the &#147;Investment Objectives and Strategies&#148; section of this prospectus for a more detailed discussion of the services LEAF Financial and LEAF Funding will provide to us.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'>&nbsp;</p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>In
  addition, our general partner depends on its indirect parent company, Resource
  America, for management and administrative functions and financing for capital
  expenditures. Resource America is a publicly-traded specialized asset management
  company (Nasdaq: REXI) that uses industry-specific expertise to generate and
  administer investment opportunities for its own account and for outside investors
  in the structured finance, equipment leasing and financing and real estate sectors.&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><img src="a11img1.jpg"><br> </p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><img src="a11img2.jpg"><br> </p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><img src="a11img3.jpg"><br>
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<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Equipment Finance</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Real Estate</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Structured Financial Products</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As of the date of this prospectus, the officers and directors of our general partner are as follows:</font></p>

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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Name</b></font></p>
      </td>
      <td width="2%" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td width="9%" valign=top style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Age</b></font></p>
      </td>
      <td width="2%" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td width="54%" valign=top style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Position</b></font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Crit
          S. DeMent</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>54</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chairman
          of the Board of Directors and Chief Executive Officer</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Miles
          Herman</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>46</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>President,
          Chief Operating Officer and Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Jonathan
          Z. Cohen</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>36</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Steven
          J. Kessler</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>62</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Robert
          K. Moskovitz</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>49</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chief
          Financial Officer and Treasurer</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>David
          H. English</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>55</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Executive
          Vice President and Chief Investment Officer</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Daniel
          G. Courtney</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>43</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Senior
          Vice President &#150; Investment Programs</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Darshan
          V. Patel</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>36</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General
          Counsel and Secretary</font></p>
      </td>
    </tr>
  </table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>With respect to the biographical information set forth below:</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the approximate amount of an individual&#146;s professional time devoted to the business and affairs of our general partner, LEAF Financial and LEAF Funding have been aggregated, because there is no reasonable method for them to distinguish their activities among the companies; and</font></p> </td> </tr></table>
</div>




<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>for those individuals who also hold senior positions with other affiliates of our general partner, if it is stated that they devote approximately 100% of their professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding, it is because either the other affiliates are not currently active, or the individuals are not required to devote a material amount of their professional time to those affiliates, or there is no reasonable method to distinguish their activities between their professional time devoted to the business and affairs of our general partner, LEAF Financial and LEAF Funding, on the one hand, and their professional time devoted to the business and affairs of our general partner&#146;s other affiliates, such as, for example, another affiliated investment program or Chadwick Securities.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Crit S. DeMent</font></b><font size=2> has been Chairman of the Board of Directors and Chief Executive Officer of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;DeMent also serves as Chairman of the Board of Directors and Chief Executive Officer of LEAF Financial since November 2001, Chairman of the Board of Directors of LEAF Funding since March 2003, a Senior Vice President of Resource America since 2005 and Senior Vice President &#150; Equipment Leasing of Resource Capital Corp. since March 2005. Before that, he was President of Fidelity Leasing, Inc. and its successor, the Technology Finance Group of Citi-Capital Vendor Finance from 1998 to 2001. Mr.&nbsp;DeMent was Vice President of Marketing for Tokai Financial Services from 1987 through 1996. Mr.&nbsp;DeMent expects to devote approximately 75% of his professional time to the business and affairs of our general partner, LEAF
Financial and LEAF Funding.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Miles Herman</font></b><font size=2> has been President, Chief Operating Officer and a Director of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;Herman also serves as President, Chief Operating Officer and a Director of LEAF Financial since January 2002, and Senior Vice President and a Director of LEAF Funding since January 2004. Mr.&nbsp;Herman held various senior operational offices with Fidelity Leasing, Inc. and its successor from 1998 to 2001, ending as Senior Vice President. From 1990 to 1998, he held various operational, marketing, program management, business development and sales positions with Tokai Financial, most recently as Director as Capital Markets. Before that, he served as Vice President, Operations and Sales at LSI Leasing Services, Inc. from 1989 to 1990, and as a manager of operations at Master Lease Corporation from 1984 to 1989. Mr.&nbsp;Herman expects to devote
approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.</font></p>

<p align="center"><Font size="2" face="serif">34</font></p>

<hr noshade align="center" width="100%" size="2">

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<b><font size=2>Jonathan Z. Cohen </font></b><font size=2>has been a Director of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;Cohen also serves, or has served, in the following positions with Resource America: President since 2003, Chief Executive Officer since 2004, a Director since 2002, Chief Operating Officer from 2002 to 2004, Executive Vice President from 2001 to 2003,&nbsp;and Senior Vice President from 1999 to 2001. In addition, Mr.&nbsp;Cohen serves as Vice Chairman of the Managing Board of Atlas Pipeline Partners GP, LLC since its formation in 1999, Vice Chairman and a Director of Atlas America, Inc. since its formation in 2000, Trustee and Secretary of RAIT Investment Trust (a publicly-traded real estate investment trust) since 1997, Vice Chairman of RAIT since 2003, and Chairman of the Board of The Richardson
Company (a sales consulting company) since 1999. </font>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Steven J. Kessler</font></b><font size=2> has been a director of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;Kessler also serves, or has served, in the following positions with Resource America: Executive Vice President since 2005, Chief Financial Officer since 1997, and Senior Vice President from 1997 to 2005. Before joining Resource America, Mr.&nbsp;Kessler was Vice President-Finance and Acquisitions at Kravco Company (a national shopping center developer and operator) from 1994 to 1997. From 1983 to 1993, Mr.&nbsp;Kessler worked for Strouse Greenberg &amp; Co., a regional full service real estate company, ending as Chief Financial Officer and Chief Operating Officer. Prior to 1993, Mr.&nbsp;Kessler was a Partner at Touche Ross &amp; Co. (now Deloitte &amp; Touche LLP), independent public accountants. Mr.&nbsp;Kessler also serves as Trustee of GMH Communities Trust (a
publicly-traded specialty housing real estate investment trust) since 2004. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Robert K. Moskovitz</font></b><font size=2> has been Chief Financial Officer, Chief Accounting Officer and Treasurer of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;Moskovitz also serves as Chief Financial Officer and Chief Accounting Officer of LEAF Financial since February 2004, and Treasurer of LEAF Financial since September 2004, and Chief Financial Officer of LEAF Funding since May 2004. He has over twenty years of experience as the Chief Financial Officer of both publicly and privately owned companies. From 2002 to 2004, Mr.&nbsp;Moskovitz was an independent consultant on performance management initiatives, primarily to the financial services industry. From 2001 to 2002 he was Executive Vice President and Chief Financial Officer of ImpactRx, Inc., which provides advanced sales and marketing intelligence to pharmaceutical companies. From 1999 to 2001, he was the Chief Financial
Officer of Breakthrough Commerce LLC, a holding company that provided seed capital and management to technology start-ups. From 1983 to 1997 Mr.&nbsp;Moskovitz held senior financial positions with several high growth public and privately held companies. He began his professional career with Deloitte &amp; Touche (formerly Touche Ross &amp; Co). Mr.&nbsp;Moskovitz is a Certified Public Accountant and holds a B.S. degree in Business Administration from Drexel University. Mr.&nbsp;Moskovitz expects to devote approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>David H. English</font></b><font size=2> has been Executive Vice President and Chief Investment Officer of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;English also serves as Executive Vice President of LEAF Financial since April 2003 and President and a Director of LEAF Funding since May 2003. From 1996 until joining LEAF Financial, Mr.&nbsp;English was the Senior Vice President-Risk Management for Citi-Capital Vendor Finance&#146;s Technology Finance Group, and its predecessor, Fidelity Leasing, Inc., where he held a similar position. From 1991 to 1996 Mr.&nbsp;English held various credit and operational management positions with Tokai Financial Services, Inc., including Director of Credit for the small ticket leasing division. Mr.&nbsp;English served in credit management positions with the Commercial Finance Division of General Electric Capital Corporation from 1990 to 1991 and with
Equitable Life Leasing Corporation from 1985 through 1990. Mr.&nbsp;English began his career with Household Finance Corporation in 1974. Mr.&nbsp;English is a 1975 graduate of the University of Pittsburgh with a B.S. degree in Mathematics. Mr.&nbsp;English expects to devote approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Daniel G. Courtney</font></b><font size=2> has been Senior Vice President, Investment Programs of LEAF Asset Management since it was formed in August 2006, and serves as Senior Vice President, Investment Programs of LEAF Financial since October 2005. Mr.&nbsp;Courtney also is, or will be registered with Chadwick Securities, an affiliate of our general partner and the dealer-manager of this offering. Mr.&nbsp;Courtney was Senior Vice President with ATEL Capital Group, a San Francisco-based sponsor of leasing limited partnerships from October 2003 to October 2005. From April 2000 to October 2003 Mr.&nbsp;Courtney was Vice President of Marketing and Business Development for BridgeSpan, Inc., which provided technology and financial services to banks and insurance companies. From 1984 to 2000 Mr.&nbsp;Courtney served in various sales and marketing management roles for various fund sponsors of real estate and
equipment leasing programs and as a registered representative with Stifel Nicolaus &amp; Company in St. Louis. Mr.&nbsp;Courtney is a General Securities Principal and holds various NASD securities licenses. Mr.&nbsp;Courtney received a B.S. degree in Business Administration from Southeast Missouri State University. Mr.&nbsp;Courtney expects to devote <font size=2>approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.</font> </font></p>



<p style=' margin-bottom:0pt; margin-top:10pt;text-align:center;'><font size=2></font></p>
<p align="center"><Font size="2" face="serif">35</font></p>



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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Darshan V. Patel</font></b><font size=2> has been General Counsel and Secretary of LEAF Asset Management since it was formed in August 2006. Mr.&nbsp;Patel also serves as President of Chadwick Securities, the dealer-manager of this offering and an affiliate of our general partner, as General Counsel and Secretary of LEAF Financial since August 2001 and as Secretary of LEAF Funding since March 2003. In addition, Mr.&nbsp;Patel serves as Associate General Counsel of Resource America, a position he has held since 2001. From 1998 to 2001, Mr.&nbsp;Patel was associated with the law firm of Berman, Paley, Goldstein &amp; Kannry, New York, NY. From 1996 to 1998, Mr.&nbsp;Patel was associated with the law firm of Glynn &amp; Associates, Flemington, NJ. Mr.&nbsp;Patel expects to devote approximately 25% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p36a"></a>LEAF Financial Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As of the date of this prospectus, the officers and directors of LEAF Financial are as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>&nbsp;</font></p>


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      <td width="31%" valign=top style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Name</b></font></p>
      </td>
      <td width="2%" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td width="9%" valign=top style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Age</b></font></p>
      </td>
      <td width="2%" valign=bottom style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td width="54%" valign=top style='padding:0in 5.4pt 0in 5.4pt;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Position</b></font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Crit
          S. DeMent</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>54</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chairman
          of the Board of Directors and Chief Executive Officer</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Miles
          Herman</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>46</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>President,
          Chief Operating Officer and Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Jonathan
          Z. Cohen</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>36</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Alan
          D. Schreiber, M.D.</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>63</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Linda
          Richardson</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>59</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Director</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>David
          H. English</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>55</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Executive
          Vice President</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Darshan
          V. Patel</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>36</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General
          Counsel and Secretary</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Nicholas
          Capparelli</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>47</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Senior
          Vice President &#150; Sales</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Robert
          K. Moskovitz</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>49</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Chief
          Financial Officer and Treasurer</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Sherryl
          B. Hughes</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>56</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Vice
          President &#150; Municipal Markets</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Daniel
          G. Courtney</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>43</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Senior
          Vice President &#150; Investment Programs</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Frank
          J. Monzo</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>48</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Vice
          President of Portfolio Administration</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>James
          Grant</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>45</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Vice
          President of Portfolio Servicing Operations</font></p>
      </td>
    </tr>
    <tr style='height:.15in;'>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Gregory
          Kalescky</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>44</font></p>
      </td>
      <td valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.15in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Vice
          President of Credit &#150; Healthcare</font></p>
      </td>
    </tr>
  </table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>See &#147;&#150; Our General Partner,&#148; above, for biographical information on certain of these individuals who are also officers of our general partner. Biographical information on the other officers is set forth below. Biographical information on the other directors will be provided by our general partner on request.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Nicholas Capparelli</font></b><font size=2> has been Senior Vice President of LEAF Financial since January 2002. Before joining LEAF Financial, Mr.&nbsp;Capparelli had been, since 1998, a Senior Vice President for Fidelity Leasing and its successor, responsible for sales and training. From 1995 to August 2000, Fidelity Leasing was a subsidiary of Resource America. Mr.&nbsp;Capparelli also served as the general manager of JLA Leasing Corporation, an equipment lessor, following its acquisition by Fidelity Leasing in 1999. From 1995 to 1998, Mr.&nbsp;Capparelli was Vice President for Sales and Operations of SoftMark, a national reseller of computer products, and from 1982 to 1995 he was at Tokai Financial Services, ending as Vice President of Sales.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>James Grant</font></b><font size=2> has been Vice President of Portfolio Servicing Operations of LEAF Financial since February 2006. Prior to joining LEAF Financial, Mr.&nbsp;Grant was employed as Assistant Vice President at Financial Federal Credit, Inc. from April 2001 to February 2006. Before that, he was employed in senior level management capacities at several commercial finance institutions including Financial Federal Credit Inc., CNH Capital Corporation, Rockford Industries/American Express Business Finance Corporation, SEQUA Capital Corporation and Credit Alliance/Leasing Service Corporation. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Gregory Kalescky</font></b><font size=2> has been Vice President of Credit &#150; Healthcare of LEAF Financial since April 2006. Prior to joining LEAF Financial, Mr.&nbsp;Kalescky was employed as a First Vice President with MBNA Practice Solutions, a healthcare financial services institution, from October 2003 until March 2006. Prior to MBNA, Mr.&nbsp;Kalescky held Director of Credit positions at several companies including De Lage Landed, GE Capital &#150; Trans Leasing, and Siemens Medical Systems. Mr.&nbsp;Kalescky holds a B.A. degree in Economics from Columbia University.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Frank J. Monzo</font></b><font size=2> has been Vice President of Portfolio Administration of LEAF Financial since November 2005. Mr.&nbsp;Monzo was Vice President of Finance for ExcellaDerm Corporation, a medical device manufacturer based in Rancho Santa Margarita, California, from October 2001 to October 2005. For 20 years prior to joining ExcellaDerm, Mr.&nbsp;Monzo held a variety of positions in the commercial finance industry, most recently as Vice President and Portfolio Manager for Finova Capital Corporation&#146;s Corporate Finance division. Mr.&nbsp;Monzo holds a B.S. degree in Business Administration from LaSalle College.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Sherryl B. Hughes</font></b><font size=2> has been Vice President &#150; Municipal Markets of LEAF Financial since January 2006. Ms.&nbsp;Hughes previously served LEAF Financial as Vice President &#150; Credit from June 2002 to December 2005. From 1999 to 2002, Ms.&nbsp;Hughes was a Vice President of Credit/Operations for Court Square Leasing Corporation. From 1997 to 1999 she was the Director of Credit and Portfolio Management at American Business Leasing, Inc. Ms.&nbsp;Hughes was the Corporate Credit Manager for Master Lease Corporation from 1983 until it was acquired by Tokai Bank. Following the acquisition, she held various managerial positions in Credit and Operations with Tokai Financial Services, Inc., until 1997.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p37a"></a>Investment Committee. </font></b><font size=2>Our general partner and its affiliate, LEAF Financial, have agreed that LEAF Financial&#146;s investment committee also will serve as our general partner&#146;s investment committee. The current members of LEAF Financial&#146;s and our general partner&#146;s investment committee are the following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Mr.&nbsp;Crit S. DeMent;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Mr.&nbsp;Miles Herman;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Mr.&nbsp;David H. English; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Ms.&nbsp;Sheryl B. Hughes.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>See &#147;&#150; Our General Partner,&#148; above, for biographical information on Crit S. DeMent, Miles Herman and David H. English. See &#147;&#150; LEAF Financial Corporation,&#148; above, for biographical information on Ms.&nbsp;Hughes.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>See the &#147;Investment Objectives and Strategies&#148; section of this prospectus for various discussion of the services the investment committee will provide on behalf of us and our general partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p37b"></a>Code of Business Conduct and Ethics. </font></b><font size=2>Because we do not directly employ any persons, we rely on a Code of Business Conduct and Ethics adopted by Resource America that applies to the principal executive officer, principal financial officer and principal accounting officer of our general partner, as well as to persons performing services for us generally. You may request a copy of this code of ethics from our general partner at LEAF Asset Management, LLC, 1818 Market Street, 9<sup>th</sup> Floor, Philadelphia, Pennsylvania 19103.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p37c"></a>Organizational Diagram (1)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This organizational diagram does not include all of the subsidiaries of Resource America.</font><b><font size=2> <img src="a11img4.jpg"><br> </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;<font size=2>(1)</font></font></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>After
          we receive our minimum offering proceeds and begin operations we will
          enter into an Origination and Servicing Agreement with LEAF Financial,
          an affiliate of our general partner, acting as a third-party servicer
          of our leases and secured loans, and LEAF Funding, another affiliate
          of our general partner, acting as a third-party originator of our leases
          and secured loans. See the &#147;Investment Objectives and Strategies
          &#150; Origination and Servicing Agreement&#148; section of this prospectus.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p38a"></a>Compensation.</font></b><font size=2>
  We do not pay the officers or directors of our general partner or the officers
  and directors of its affiliates any compensation. However, we will pay our general
  partner and its affiliates fees and reimburse certain of their expenses incurred
  on our behalf as described in the &#147;Management Compensation&#148; section
  of this prospectus. These expense reimbursements include reimbursing our general
  partner and its affiliates for certain costs incurred on our behalf, including
  the cost of personnel, other than controlling persons of our general partner,
  who will perform administration, accounting, secretarial, transfer and other
  services required by us. These individuals also will perform similar services
  for our general partner and its affiliates and other investment programs, including
  LEAF Financial&#146;s two prior equipment leasing programs, as well as investment
  programs to be formed in the future by our general partner or its affiliates.
  Our partnership agreement provides that expense reimbursements paid by us to
  our general partner or its affiliates must be limited to the lesser of their:
  </font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>actual cost; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the cost of comparable services from third-parties.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect that we will allocate the cost of employee and officer compensation and benefits, excluding those allocable to controlling persons of our general partner, based on the amount of their business time spent on our business. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p38b"></a>Security Ownership of Certain Beneficial Owners.</font></b><font size=2> Resource America owns 100% of the common stock of Resource Asset Management, Inc., which owns 100% of our general partner, LEAF Asset Management, LLC, as its sole member and equity owner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p38c"></a>Change in Partnership Management. </font></b><font size=2>Our general partner may withdraw as general partner, or be removed as general partner by our limited partners, under the circumstances described in the &#147;Summary of Our Partnership Agreement &#150; Withdrawal or Removal of Our General Partner&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p38d"></a>Affiliated Company. </font></b><font size=2>Chadwick Securities, the dealer-manager for this offering, is a Pennsylvania corporation and an indirect wholly-owned subsidiary of Resource America. It is registered as a broker-dealer with the SEC and is a member of the NASD and the Securities Investor Protection Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p38e"></a>OTHER PROGRAMS MANAGED BY OUR </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>GENERAL PARTNER OR ITS AFFILIATES </font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) was initially sponsored by LEAF Asset Management, Inc. beginning in 2002. In June 2004, LEAF Asset Management, which was a wholly-owned subsidiary of LEAF Financial Corporation, was merged into LEAF Financial. Currently, LEAF Financial serves as the general partner of LEAF I, which had its final closing on August 15, 2004, with total offering proceeds of $17,056,225 from 436 investors, and as the general partner of Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), which was sponsored by LEAF Financial and had its final closing on _______________, 2006, with total offering proceeds of $_____________ from ___ investors.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Set forth below for both LEAF I and LEAF II are charts of their respective equipment portfolios broken out by equipment type and by business type as of June 30, 2006. These allocations will vary from time to time in each of those programs. The most recent breakouts of these programs can be found in their most recent Form 10-K or Form 10-Q filings with the SEC as discussed below. The charts below combine operating leases and full payout leases and notes for summary purposes.</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><img src="a12img1.gif"><br> </p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><img src="a12img2.gif"><br> </p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><img src="a12img4.gif"><br>
</p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp; </p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Further information concerning LEAF I and LEAF II and their respective results of operations can be found in Appendix B to this prospectus. You also may obtain each program&#146;s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q from the SEC by following the procedures described in the &#147;Where You Can Find More Information&#148; section of this prospectus, or you may request the Form 10-K or Form 10-Q from LEAF Financial Corporation, 1818 Market Street, 9<sup>th</sup> Floor, Philadelphia, Pennsylvania 19103.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In
  addition, before LEAF Financial was acquired by Resource America, it had sponsored
  eight public equipment leasing programs between 1984 and 1990, which were known
  as the Fidelity Income Funds. Following LEAF Financial&#146;s acquisition by
  Resource America, and under new management installed by Resource America, all
  eight of those programs have now been liquidated. We have not provided any
  information
  concerning those prior programs in Appendix B to this prospectus, because
  we believe that those prior program are not comparable to us for the following
  reasons:</font></p>



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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the change in LEAF Financial&#146;s management after Resource America acquired the company;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the prior programs engaged in the direct lease of computer and computer peripheral equipment to large corporations;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the prior programs did not use leverage; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the prior programs began between 1984 and 1990 when markets, leasing strategies, interest rates, equipment, etc. were much different from what they are now.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Unlike those prior programs, we anticipate that our asset base will encompass a broader range of equipment and we will use vendor and other third-party marketing channels rather than direct leasing. Also, we will focus on the small to mid-size business market, instead of large corporations, and we anticipate using extensive leverage to finance a substantial portion of our investment portfolio. You may request additional information concerning its previous liquidated programs from LEAF Financial Corporation, 1818 Market Street, 9<sup>th</sup> Floor, Philadelphia, Pennsylvania 19103.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p40a"></a>INVESTMENT
  OBJECTIVES AND STRATEGIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p40b"></a>Principal
  Investment Objectives</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our
  principal objectives are to invest in a diversified portfolio of equipment for
  lease to end users, or to acquire equipment subject to existing leases, or on
  a limited basis to finance the purchase of equipment by end users, in order
  to:</font></p>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>preserve, protect and return your invested capital;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>generate regular cash distributions to you during the period beginning on our initial closing date and ending five years after this offering terminates (the &#147;reinvestment period&#148;);</font></p> </td> </tr></table>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>during the reinvestment period, enter into or purchase equipment leases and secured loans using our net offering proceeds from this offering, and borrow funds to increase diversification of our portfolio, and reinvesting our revenues after paying our expenses, establishing appropriate reserves and making certain distributions to you and our other investors; and</font></p> </td> </tr></table>
</div>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>provide additional cash distributions to you after the end of the reinvestment period until all of our equipment leases and secured loans have either matured and terminated or been sold (the &#147;liquidation period&#148;).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We sometimes refer to the process of marketing, selecting and acquiring equipment for lease to end users, equipment already subject to leases or funding loans secured by equipment as the &#147;origination&#148; of the investment. We have not identified or originated any investments as of the date of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We intend to structure each of our equipment investments at a price that we determine will provide a present value return to us, including the estimated residual value of the equipment in the case of an operating lease, which may or may not be fully realized by us as discussed below under &#147;&#150; Leasing Strategies &#150; Residual Realization &#150; Maximizing Returns At the End of a Lease,&#148; that will achieve our investment objectives as described above, including the return of our invested capital and an appropriate return on our investment. In structuring our equipment investments, we will take into account our operating expenses, including the costs of using leverage to increase our portfolio diversification. See the &#147;Risk Factors &#150; Using &#147;Leverage&#148; to Build Our Portfolio Subjects Us to the Risk That Our Revenues May Not Be Sufficient to Cover Our Operating Costs Plus Debt
Service and, Consequently, May Result in Losses&#148; section of this prospectus. However, we may not be successful in achieving our investment objectives. See the &#147;Risk Factors&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will make distributions to you and our other limited partners only if we have cash available after paying our obligations, including paying administrative expenses, fees and debt service and making allowance for necessary reserves. We expect to begin distributions in the month following the first full month of operations after we obtain the minimum offering proceeds and hold the initial closing in this offering. We also expect that, during the early years of our operations our distributions to you and our other limited partners will be substantially tax-deferred. However, we cannot assure you of the following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>that our distributions to you and our other limited partners will be in any specific amount; or</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>when our distributions to you and our other limited partners will be made.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p41a"></a>Equipment
  for Lease to End Users</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will purchase equipment for lease to end users. The cost per unit of the equipment we purchase for lease generally ranges from $20,000 to $2 million, and we expect the average per unit cost to be between $50,000 and $100,000. Due to this average per unit cost, we anticipate spreading the risk of lessee default over a large number of different end users.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will enter into operating leases and full payout leases.</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Operating Leases  are leases  under which the aggregate noncancellable rental payments during the original term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment leased under the lease.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Full payout leases are leases in which the rent over the term of the lease will return our invested capital plus an appropriate return without consideration of the residual, and where the lessee may acquire the equipment at the end of the lease term for a nominal amount.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect that approximately 65% to 75% of our leases will be full payout leases, with the remainder being operating leases. However, we are not limited as to type of leases we may enter into and, as a result, either operating leases or full payout leases possibly could constitute most of our portfolio.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also,
  we may use up to 30% of our total funds available for investment at any given
  time to finance the end user&#146;s purchase of the equipment by providing a
  secured loan. A secured loan allows the end user to purchase the equipment and
  pay the purchase price over a period of time with the equipment and, if we determine
  prudent or necessary, other assets such as the borrower&#146;s accounts receivable
  or personal guarantee, serving as collateral for the </font><font size=2>repayment
  of the loan. Our secured loans may be made to the same types of customers and
  cover the same types of equipment as our loans. For example, we may provide
  practice acquisition financing for dentists through our secured loans. This
  type of financing would be comprehensive as to the type of property financed
  through it in order to enable a new dentist to acquire all of the equipment
  and other tangible personal property he needs to set up a new practice, such
  as specialized dental equipment, furniture, filing cabinets, a telephone system,
  a copier, computers, software, etc. This type of secured loan also could be
  used by an established dentist to upgrade or expand his practice in the same
  manner as described above. These types of secured loans generally would be collateralized
  by the borrower&#146;s accounts receivable and his personal guarantee, in addition
  to the equipment and furniture covered by the financing. </font></p>



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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, we attempt to structure our secured loans so that, in an economic sense, there is no difference to us between a secured loan and a full payout lease. For example, all customers who receive secured loans from us must meet the same underwriting criteria as the customers that lease equipment from us. See &#147;&#150; Leasing Strategies &#150; Underwriting &#150; Obtaining the Right Kind of Business,&#148; below. Before funding any secured loan, we will review the equipment that the end user proposes to purchase to ensure that we agree with the end user that the equipment has a fair market value equal to or greater than the proposed principal amount of the secured loan requested from us by the end user to acquire that equipment. Also, if our general partner, in its discretion, deems it advisable based on the above, we will either:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reject the secured loan;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reduce the principal amount of the secured loan; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>require the end user to provide us additional collateral for the loan such as a guarantee, a pledge of the end user&#146;s receivables, etc.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p42a"></a>Equipment
  Already Subject to Lease</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We also may acquire portfolios of equipment subject to existing leases or secured loans from third-parties. We anticipate that at the end of this offering, acquired equipment subject to existing leases or secured loans probably will not exceed 40% of our investments. While the per unit cost range and average per unit cost for the equipment will depend on the portfolios we may identify for acquisition, we anticipate that these costs may be less, and possibly materially less, than the cost of equipment for leases we originate.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p42b"></a>Types
  of Equipment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect that we will focus on equipment to lease or finance that is essential for businesses to conduct their operations so that the end users will be highly motivated to make the required monthly payments in order to keep the equipment in place. We will particularly focus on business-essential equipment in the following areas:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>computers, including related software and hardware such as printers;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>medical and dental practice equipment for diagnostic and treatment use;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>industrial equipment, including manufacturing, material handling and electronic diagnostic systems;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>general office equipment, such as office machinery, furniture and telephone systems;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>energy and climate control systems; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>light construction equipment, including small lift trucks and earth moving equipment.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We are not limited in the amount we may invest in any particular equipment category. The amount we invest in any one category will depend on the entities to which we lease or finance equipment and their equipment needs, neither of which can be accurately predicted by us as of the date of this prospectus. We anticipate, however, that we will lease a wide variety of equipment to a wide variety of end users who will be engaged in a wide variety of industries and be located in a wide variety of geographic locations. Within these categories, the equipment we lease or finance will generally meet the following criteria:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>standard production designs, rather than designs conforming to customer specifications;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>stable secondary market pricing history;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>not subject to rapid obsolescence due to technology changes; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>principally new equipment we purchase from manufacturers or vendors, although we may also purchase used or reconditioned equipment if the equipment is then owned by the entity which will be the lessee or if a particular lessee specifically wants to lease used equipment.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Equipment we purchase from third-parties subject to existing leases or secured loans will typically already be in use by the lessee or borrower at the time we acquire the equipment.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p43a"></a>Market</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Equipment leasing is a commercial financing product that provides businesses with an alternative source of cash to acquire equipment that is essential to their operations. Businesses may choose leasing over other financing options because of the following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the preservation of working capital;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>increased cash flow;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>tax benefits; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the opportunity and flexibility to protect against technical obsolescence.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>According to the Equipment Leasing Association&#146;s website on September 13, 2006, see the address below, 80% of all U.S. businesses lease all or some of their equipment. The following figures from the Equipment Leasing Association represent the total amount of business investment in computers and equipment in the last five years and the amount of that total that is leased.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Year</b></font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom nowrap >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Business
          Investment</b><br>
          <b>in Equipment </b><br>
          <b>(Billions)</b></font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom nowrap >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Equipment</b><br>
          <b>Leasing Volume </b><br>
          <b>(Billions)</b></font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
      <td valign=bottom nowrap >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size="1"><b>Percentage
          of</b><br>
          <b>Leased Equipment</b><br>
          <b>(Percent)</b></font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size="1">&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>2001</font></p>
      </td>
      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom width="12%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>697</font></p>
      </td>
      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom width="12%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>216</font></p>
      </td>
      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom width="12%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>31.0%</font></p>
      </td>
      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>2002</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>645</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>206</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>31.9%</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>2003</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>670</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>194</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>29.0%</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>722</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>199</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>27.6%</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>2005*</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>791</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>213</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26.9%</font></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
  </table>
</div>



<hr noshade size="1" width="100" align="left">

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0%;text-align:left;'><font size=2>*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimates</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0%;text-align:left;'><font size=2>Source: Equipment Leasing Association&#146;s 2003 State of the Industry Report, updated as of November 11, 2005 on its website: </font><u><font size=2>www.elaonline.com/research/overview.cfm</font></u><font size=2>.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We group domestic lease providers into the four major categories set forth below.</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Banks</font><i><font size=2> &#150; </font></i><font size=2>companies that are either majority owned by, or affiliated with, a bank.</font></p> </td> </tr></table>
</div>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Industrial</font><i><font size=2> &#150; </font></i><font size=2>companies that are majority owned by an industrial or non-financial services parent company.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Independent</font><i><font size=2> &#150; </font></i><font size=2>public or privately owned and operated finance companies that offer leases directly to businesses and are not affiliated with any particular manufacturer or dealer.</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Captive</font><i><font size=2> &#150; </font></i><font size=2>companies that are primarily engaged in supporting the financing or leasing of a parent company&#146;s products.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will seek to provide our lease financing to the small to mid-size business market, generally businesses with:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>500 or fewer employees;</font></p> </td> </tr></table>
</div>




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        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$1 billion or less in total assets; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$100 million or less in total annual sales.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We believe that this market niche is one whose equipment financing needs are not met in an organized fashion by traditional banks, commercial lenders or other financial services companies. We believe that many of these lenders are hindered in dealing with this market because:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>their overhead costs, regulatory structure, marketing efforts, operating systems or size make originating and processing relatively small transactions impractical;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>credit decisions using the standard financial analysis techniques employed by these lenders are impractical, if not unworkable, since few small to mid-sized private businesses have audited financial statements, and few traditional lenders have developed commercial credit scoring systems or risk rating tools that deal with the behavioral predictors and credit capacity evaluation necessary for informed lending to small and mid-size private businesses; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>traditional commercial lenders often lack expertise for collateral evaluations on small and mid-size private business assets.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Thus, we believe that this market is only sporadically served by local, regional and national providers, with each confined to its own niche, product or locale.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p44a"></a>Leasing
  Strategies</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We believe the key factors in establishing and maintaining our lease portfolio are as follows:</font></p>


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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b><a name="p44b"></a>&#149;</b></font></p>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Origination &#150; leasing at the right rate and cost. </font></b><font size=2>We expect that LEAF Funding, an affiliate of our general partner, will originate all of our equipment leases and secured loans. See &#147;&#150; Origination and Servicing Agreement,&#148; below. LEAF Funding&#146;s strategy for originating our leases and secured loans will involve marketing to direct sales organizations that will offer our leases as part of their equipment marketing package. By developing and maintaining these programs, LEAF Funding will be able to use the sales forces of these organizations, and those of their distributors, dealers and resellers, to market our leasing products and services to the highly dispersed population of small to mid-sized businesses. We anticipate that LEAF Funding&#146;s programs will allow us to provide equipment financing to businesses without
the need for us, our general partner or LEAF Funding to maintain a large field sales force and thus provide us with cost-efficient marketing.</font></p> </td> </tr></table>
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      <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b><a name="p44c"></a>&#149;</b></font></p>
      </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Underwriting &#150; obtaining the right kind of business.</font></b><font size=2> We anticipate that LEAF Financial, an affiliate of our general partner, will service all of our equipment leases and secured loans. See &#147;&#150; Origination and Servicing Agreement,&#148; below. LEAF Financial, an affiliate of our general partner, has developed credit evaluation systems designed to address the inability of most small to mid-sized businesses to provide audited financial statements. Key elements of LEAF Financial&#146;s systems include:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>automatic extraction of credit information from online data bases;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>credit scoring for smaller transactions; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>credit analyst review only of larger transactions and transactions where credit scoring does not provide a clear acceptance or rejection.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><font size=2>LEAF Financial&#146;s credit scoring systems, which were developed for it in part by Fair Isaac Corporation, operate by assigning point values to various factors such as business longevity, type of business, payment history, bank account balances, lawsuits, judgments, liens and credit ratings. Fair Isaac (NYSE: FIC) is a leading provider of credit management solutions and is the developer of the well known and widely used FICO&reg; scores, the standard measure of credit risk for consumer lending by banks, credit card issuers, insurers and retailers. The credit scoring system uses data obtained from Dun &amp; Bradstreet, Experian, Equifax and TransUnion. The system weighs these point values based on their correlation to default predictiveness, and then adds them to arrive at a credit score for the applicant. The system either grants or declines approval, or refers the application to a credit
analyst, based on thresholds established from statistical correlations between scores and payment performance using industry and other data. Our general partner expects to make approximately 70% of our credit decisions, measured by number of applications, through credit scoring.</font></p>

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<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.75in;text-align:center;'><img src="a13img1.jpg"><br> </p>
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    </td>
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      <p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0in;text-align:left;'><font size=2>LEAF
        Financial, however, generally will use traditional financial analysis
        in the event we underwrite transactions of more than $100,000. Also, to
        measure our actual loss performance versus what we anticipate, LEAF Financial
        will use a cumulative loss curve that indicates when, during the lifecycle
        of a pool of leases, the losses may occur. The cumulative loss timing
        curve was developed from an analysis of diversified lease and loan pools
        representing tens of thousands of leases and loans to small and medium
        size businesses. Because lease transactions are not all originated at
        the same time or in the same amount, the loss curve is weighted by amount
        originated and averaged by the duration of transactions.</font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2><a name="p45a"></a>Residual
        realization &#150; maximizing returns at the end of a lease. </font></b><font size=2>Our
        general partner does not generally take aggressive residual positions,
        and the equipment types that we target generally will not warrant a large
        residual position. We anticipate that approximately 25% to 35% of our
        leases will be operating leases under which the rental payments we receive
        will return approximately 80% to 85% of the purchase price we paid for
        the equipment. Thus, based on the past experience of its senior management
        team, our general partner believes that both the number of our leases
        and their estimated residual values which might entail aggressive residual
        positions will not be material based on our total equipment investments.
        We plan to realize residual income on our operating leases using the following
        four methods:</font></p>
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        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Automatic billing extension &#150; Our lease documentation will require the lessee to provide 60 days notice before lease termination in order to arrange for disposition of the equipment. If the lessee does not provide this notice, then we will automatically bill the lessee on a month-to-month basis.</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Re-leasing to lessee &#150; We anticipate that a significant amount of our equipment will be re-leased to the current lessee at the end of the initial lease term.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Sold in place to lessee &#150; We anticipate that we will sell the majority of our equipment in place to the original lessee at the end of its lease, re-lease or automatic billing extension period.</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Resale market &#150; We expect to sell equipment that is not sold in place to the lessee at the end of its lease, re-leased or automatic billing extension period either to the original vendor or to a variety of used equipment dealers.</font></p> </td> </tr></table>



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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:5.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:3pt; margin-left:0in;text-align:left;'><font size=2>We
        believe successful realization of residuals at the end of a lease term
        depends on an accurate residual value assessment at the beginning. LEAF
        Financial, as servicer of our leases, will make residual value assessments
        on our behalf using information from a number of sources, including:</font></p>
    </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>secondary market publications;</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>interviews with manufacturers and used equipment dealers;</font></p> </td> </tr></table>





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        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>auction sales guides;</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>historical sales data;</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>industry organizations;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>valuation companies; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the prior experience of our general partner&#146;s management as to propensity to re-lease or be sold in place.</font></p> </td> </tr></table>



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  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:5.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>Based
        on its analysis of this information, LEAF Financial will establish a residual
        value for the end of each lease term for each type of equipment. As a
        result, the residual value will equal the depreciated book value at the
        end of a lease term. However, as to any particular piece of equipment,
        LEAF Financial may not be able to re-lease or sell the equipment on our
        behalf at the end of the equipment&#146;s lease term at a rate or price
        that will provide us the residual value LEAF Financial estimated on that
        equipment.</font></p>
    </td>
  </tr>
</table>
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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2><a name="p46a"></a>Collections
        &#150; assuring portfolio performance.</font></b><font size=2> LEAF Financial&#146;s
        collection department will be supported by an automated collection tracking
        system that accesses all account-related information stored on its main
        computers. The tracking system will:</font></p>
    </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>prioritize and queue delinquent accounts by age and dollar amount;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>permit collectors to record all correspondence and discussions with lessees and borrowers; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>generate management reports which will allow us to assess the quality and quantity of collections by individual service representatives, supervisory units and the collection department as a whole.</font></p> </td> </tr></table>



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    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>LEAF
        Financial&#146;s collections policy is designed to identify payment problems
        early enough to permit it to address delinquencies in our leases or secured
        loans quickly and, when necessary, to act on our behalf to preserve our
        interest in the equipment.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2><a name="p46b"></a>Systems
        automation &#150; controlling costs and providing enhanced service with
        automated solutions.</font></b><font size=2> LEAF Financial will use five
        functionally integrated systems that will provide fully automated, low
        cost processing of our leases and secured loans:</font></p>
    </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>a management system that allows LEAF Financial to establish leasing program relationships with direct sales organizations without having to develop new software for each new program developed;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>an application management system that is capable of processing high volumes of lease applications;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>a credit scoring model that automates the task of evaluating high volumes of lease applications;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>a contract management system that provides LEAF Financial with a stable, fully automated array of portfolio management tools, including electronic invoice generation, payment posting technologies and extensive collections and customer service screens, enabling efficient portfolio servicing of our leases and secured loans; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>an accounting and financial management system that will provide accurate and efficient financial and investor reporting.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2><a name="p46c"></a>Lease provisions. </font></b><font size=2>The terms and provisions of each equipment lease will vary depending on a number of factors, including:</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the type and intended use of the equipment;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the business, operations and financial condition of the lessee;</font></p> </td> </tr></table>





<p align="center"><Font size="2" face="serif">46</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>any regulatory considerations; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the tax consequences and accounting treatment of the lease transaction.</font></p> </td> </tr></table>



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  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>Certain
        terms and provisions, however, generally will be included in all of our
        equipment leases. For example, we anticipate that each equipment lease
        will hold the lessee responsible for:</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>paying rent without deduction or offset of any kind;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>bearing the risk of equipment loss and maintaining both casualty and liability insurance on the equipment;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>paying sales, use or similar taxes relating to the lease or other use of the equipment;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>paying all miscellaneous charges such as documentation fees, late charges, charges for returned checks and similar fees and costs;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>indemnifying us against any liability resulting from any act or omission of the lessee or its agents related to the equipment;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>maintaining the equipment in good working order and condition during the term of the equipment lease;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>notifying us and obtaining our approval for moving the equipment; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>requiring our prior written consent before assigning or subleasing the equipment.</font></p> </td> </tr></table>



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  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>Our
        equipment leases will usually have terms ranging from 12 to 84 months.
        We anticipate that the average lease term over our aggregate lease portfolio
        will range from 48 to 60 months. We also anticipate that most of our leases
        will not be cancelable during their initial terms. However, we may agree
        to allow cancellation of a lease if the lessee pays enough compensation
        so that the cancellation will not prevent us from achieving our objectives.
        At the end of each lease term, the lessee may have the option to buy the
        equipment or renew the lease, either at set prices or at prices tied to
        current fair market value.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2><a name="p47a"></a>Portfolio acquisition strategies. </font></b><font size=2>We may purchase portfolios of equipment subject to existing leases and secured loans. We anticipate that the principal sources for these portfolios will be:</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>small company equipment lessors;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>international leasing institutions;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>regional and national commercial banks; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>captive finance companies of large manufacturers.</font></p> </td> </tr></table>



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  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>In
        evaluating a portfolio acquisition, we expect to consider the following
        factors:</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the business objectives of the seller in selling the portfolio;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the amount of the equipment and the number of leases in the portfolio;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>how the leases were originated, whether directly with the end-user or through vendors or brokers;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the portfolio characteristics, including geographic and lessee concentrations, equipment cost range, types of leases and the original and remaining terms of the leases;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the seller&#146;s credit decision process;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the seller&#146;s lease documentation and any material variations from industry practices;</font></p> </td> </tr></table>




<p align="center"><Font size="2" face="serif">47</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the seller&#146;s servicing policies; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the portfolio&#146;s aging, performance and default history, including the default history of other portfolios sold by the seller.</font></p> </td> </tr></table>



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  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>We
        will also consider other elements such as:</font></p>
    </td>
  </tr>
</table>
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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>who the seller is and its overall industry reputation;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the performance of other portfolios we may have acquired from the seller;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the effect of the acquisition on our own portfolio; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>credit enhancements available from the seller, such as guarantees or additional security.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>Based
        on the number of transactions and the portfolio characteristics, LEAF
        Financial will credit score a sampling of the lessees in the portfolio
        as well as the lessees having the largest positions in the portfolio.
        If we then decide to pursue the portfolio acquisition, LEAF Financial
        will do a credit analysis of the entire portfolio, or a larger sampling,
        through credit scoring, financial analysis or other appropriate procedures.
        The results of LEAF Financial&#146;s analysis will be presented to our
        general partner&#146;s investment committee, which also serves as LEAF
        Financial&#146;s investment committee as discussed in the &#147;Management
        &#150; Investment Committee&#148; section of this prospectus, which will
        decide which portfolios, if any, we will make an offer to acquire and
        the terms of our offer.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>In
        acquiring portfolios of equipment subject to existing leases, we will
        seek portfolios that will be consistent with the types of credit, industries
        and equipment we will focus on in our direct equipment leasing activities.
        However, because a portfolio is often sold only in its entirety, it is
        possible that a material portion of the equipment and the related leases
        in a portfolio offered to us will not conform to these criteria. We will
        consider a portfolio for acquisition only when:</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>at least two-thirds of the equipment leases, by book value, conform to our equipment type and market criteria; or</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>our general partner believes that the lessees are creditworthy.</font></p> </td> </tr></table>



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  <tr>
    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>Once
        we acquire a portfolio of equipment subject to existing leases, it will
        become part of our overall assets and subject to LEAF Financial&#146;s
        normal administrative processes and procedures as the servicer of our
        leases and secured loans.</font></p>
    </td>
  </tr>
</table>
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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2><a name="p48a"></a>Transaction approval policies. </font></b><font size=2>Our general partner&#146;s investment committee, which also serves as LEAF Financial&#146;s investment committee as discussed in the &#147;Management &#150; Investment Committee&#148; section of this prospectus, will set and may revise, from time to time, standards and procedures for the review and approval of our equipment acquisitions and leases of that equipment. The investment committee will:</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>supervise and approve significant individual transactions or portfolio purchases;</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>supervise and approve transactions that vary from standard credit criteria and policies; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>resolve conflicts, if any, that may arise in the allocation of investments between us and our general partner or among us and other programs managed by our general partner or its affiliates as described in the &#147;Conflicts of Interest and Fiduciary Responsibilities &#150; Conflicts of Interest &#150; Our General Partner and Its Affiliates Will Engage in Activities That Compete With Us&#148; section of this prospectus.</font></p> </td> </tr></table>



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    <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>The
        investment committee will make decisions by majority vote and will promptly
        complete a written report of all actions taken.</font></p>
    </td>
  </tr>
</table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p49a"></a>Borrowing</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect to augment the proceeds of this offering with borrowings, including financings through securitizations as described below, in order to finance a significant portion of the cost of the equipment we acquire. This will allow us to increase the size and diversification of our equipment lease portfolio. We are not limited in the amount of debt, including financings through securitizations of our equipment leases, we may incur. We anticipate that our financings, as a percent of our aggregate portfolio of equipment, on full investment and assuming we sell the maximum number of units in this offering, will be approximately 80%. Our ability to obtain financing will, however, depend on our general partner&#146;s assessment of whether funds are available at rates and on terms that are economically advantageous to us. As a result, the amount of our financings may vary significantly from our expectations. We have
not obtained any commitments, or entered into any arrangements for financing from any potential lenders, as of the date of this prospectus.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will seek to establish a &#147;warehouse&#148; credit facility to provide short-term funding for our investments. This short-term financing will be provided by a bank and will be secured by our receivables from our equipment leases and secured loans. Generally, we plan to repay warehouse borrowings from the proceeds of various third-party commercial paper (&#147;CP&#148;) conduit securitization financing facilities we will seek to obtain. We anticipate that we will continue to service all of the leases or secured loans we securitize, for which we will receive a fee. In this regard, we may securitize our secured loans in the same manner as our leases as described below.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In a CP conduit transaction, we sell to a special purpose entity only that amount of lease receivables and interests in the related equipment and leases that is needed to accomplish the particular borrowing or financing we are seeking. Typically, the special purpose entity will be our wholly-owned subsidiary, and the assets we sell to it will be managed by us through our general partner. Thus, our general partner will receive the same fees with respect to those assets that it would receive with respect to any other assets of ours that may be subject to a loan from a bank. See the &#147;Management Compensation&#148; section of this prospectus. We will use a special purpose entity in the CP conduit securitization so that the assets backing the securitization will be &#147;bankruptcy remote&#148; from us. This means that in the event of our bankruptcy our creditors, other than holders of our securitization notes,
cannot use the securitized assets as a source of payment of amounts owed to them until the securitization notes have been paid. The special purpose entity, in turn, securitizes the lease receivables by pledging its interest in them and in the related equipment and leases to another entity, known as a CP conduit, that is owned by an unrelated third-party. The CP conduit funds the securitization by issuing commercial paper secured by the assets pledged to it and payable from the pledged lease receivables, which generally is short-term financing.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>When one of our CP conduit facilities reaches its capacity, we will seek to either obtain additional CP conduit facilities or reduce the amount outstanding under our existing facilities by a refinancing through a term note securitization. We also may enter into a term note securitization if longer term financing is desired. In a term note securitization, the pledge of the equipment, equipment leases and lease receivables will be released by the CP conduit and the assets will be repledged by us to a trust that issues term notes to unaffiliated third-party investors which are paid from the lease receivables and secured by the related leases and equipment. Thus, CP conduit securitizations and term note securitizations are alternatives, which never exist simultaneously on the same assets. Again, since term note securitizations are financings, we will have the same control over the pledged assets that we would have
had if, instead, we had obtained a bank loan.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We intend to structure our securitization transactions as financings, and will account for them as financings. This means that our balance sheet will carry the securitizations as our debt, and our operating statements will recognize interest expense on that debt. Also, our general partner will not receive a fee when commercial paper or term notes are issued based on the amount of those securitization financings.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In each securitization transaction, we will receive cash equal to a substantial percentage of the aggregate present value of the adjusted future cash flows from the securitized equipment leases. In addition, we will retain an undivided interest in the remaining future cash flow from the securitized equipment leases after all obligations to securitization lenders have been paid, including equipment residual values. In the experience of our general partner&#146;s management, we will typically retain approximately 10% to 12% of the present value of the aggregate future cash flows from the securitized equipment leases in CP conduit securitizations and approximately 6% of the present value of the aggregate future cash flows from the securitized equipment leases in term note securitizations.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Over the life of a securitized lease pool, we will be entitled to receive the excess cash flow attributable to our retained interest. The excess cash flow will equal the amount by which lease payments and collections on equipment residuals received, net of defaults, exceeds the sum of:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>servicing, backup servicing, trustee, custodial and insurance and credit enhancement fees, if any, and other securitization and sale expenses; and</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>amounts of principal, interest or other payments due to the noteholders or other providers of securitization financing.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As a result, our retained interest in our securitized leases, including equipment residual values, if any, will be effectively subordinated. Consequently, to the extent of our retained interest, we will bear the credit losses incurred on the securitized portfolio. Relatively small fluctuations between estimated and actual chargeoff rates could be material in relation to our retained interest and could have an adverse effect on our ability to realize our recorded basis in the retained interest.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p50a"></a>Origination and Servicing Agreement</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>After we receive our minimum offering proceeds and begin operations we will enter into an Origination and Servicing Agreement with LEAF Financial and LEAF Funding, two of our general partner&#146;s affiliates. Under this agreement, in order to facilitate the acquisition of equipment, leases and secured loans by us, LEAF Funding will:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>temporarily acquire equipment from third-parties on our behalf;</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>originate secured loans with third-parties on our behalf; and</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>originate equipment leases with third-parties on our behalf, including equipment directly leased to end users and equipment already subject to leases.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect to purchase all of our equipment, leases and secured loans from LEAF Funding at its cost, including its related initial direct costs under generally accepted accounting principles (&#147;GAAP&#148;), as described in the &#147;Management Compensation&#148; section of this prospectus.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This agreement further provides that LEAF Financial will service our equipment leases and secured loans, including but not limited to:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>underwriting;</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>receivables management;</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>re-leasing or selling the equipment after the termination of a lease; and</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>marketing our services.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The compensation of LEAF Financial and LEAF Funding for providing these services will be from the fees and reimbursements described in the &#147;Management Compensation&#148; section of this prospectus. The form of Origination and Servicing Agreement is included as an exhibit to the registration statement of which this prospectus is a part. See the &#147;Where You Can Find More Information&#148; section of this prospectus.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p50b"></a>Changes in Investment Objectives and Policies</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You and our other limited partners will have no right to vote on the establishment or implementation of our investment objectives and policies, all of which are the responsibility of our general partner. However, our general partner cannot make any material changes in our investment objectives and policies without the consent of limited partners owning a majority of the total outstanding units entitled to vote. Any material change proposed by our general partner, or any non-material change made by our general partner, will be subject to our general partner&#146;s duty to act in our best interests. In proposing a material change, our general partner will consider whether the proposed change will be beneficial to our ability to preserve, protect and return your capital or make distributions.</font></p>


<p align="center"><Font size="2" face="serif">50</font></p>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font SIZE=2><a name="p50c"></a>INCOME,
  LOSSES AND DISTRIBUTIONS</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our taxable income, taxable loss and cash distributions will be allocated 99% to you and our other investors, as a group, and 1% to our general partner.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p51a"></a>Allocations of Net Income, Net Loss and Distributions Among Investors</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>For any fiscal period, we will apportion net income, net loss and cash distributions allocable to you and our other investors, as a group, including our general partner and its affiliates to the extent they purchase units, in the ratio that the number of units held by each investor, multiplied by the number of days during the period the investor owned the units, bears to the amount obtained by totaling the number of units outstanding on each day during that period.</font></p>
<p style=' margin-bottom:12pt; margin-top:8pt;text-align:left;'><font size=2>We will not make distributions in kind, that is, of our non-cash assets, except on our liquidation, and then only to a liquidating trust.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p51b"></a>Timing of Distributions</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Generally, we will make cash distributions on a monthly basis, beginning the month after the month in which we receive the minimum amount of offering proceeds and hold the initial closing in this offering.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p51c"></a>Federal Income Tax Deferral</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We anticipate that income taxes on a portion of our distributions will be deferred during our early years due primarily to operating losses and cost recovery or depreciation deductions available from the portion of our equipment leased to third-party end users under our operating leases, but not equipment subject to our full payout leases or our secured loans, and interest deductions on borrowings, including securitizations, we enter into to help increase the size and diversification of our investment portfolio.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p51d"></a>Reinvestment of Our Revenues in Additional Leases and Secured Loans</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have the right to invest our revenues during the period beginning with the initial closing date of this offering and ending five years after this offering terminates (the &#147;reinvestment period&#148;). Before we can reinvest our revenues, however, we must, at a minimum, distribute to you and our other investors an amount which satisfies both  of the following requirements:</font></p>



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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the amount distributed includes an amount of net proceeds from sales and refinancings of our equipment investments sufficient for you and our other investors to pay your federal, state and local income taxes, if any, resulting from those sales, based on our assumption that you and our other investors are in a 30% tax bracket; and</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>for each month after the end of the offering period for this offering and until the end of the reinvestment period, the amount distributed equals  a cumulative, noncompounded (except when calculating &#147;payout&#148; for the subordinated remarketing fee discussed in the &#147;Management Compensation&#148; section of this prospectus), annual rate of return of 8% on your adjusted capital contribution (the &#147;8% return&#148;).</font></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:4pt;text-align:left;'><font size=2>Under our partnership agreement, your capital contribution is the purchase price you paid for your units. Thus, initially your 8% return is determined by multiplying your capital contribution by 8%. Thereafter, your 8% return is determined by multiplying your &#147;adjusted&#148; capital contribution by 8%. Your &#147;adjusted capital contribution&#148; is your original capital contribution, reduced, but not below zero, from time to time by the following distributions made to you, but only to the extent the distributions exceed your 8% return on a cumulative basis at the time they are made:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>distributions of distributable cash to you during the period from the initial closing date until five years after the final closing date of this offering (the &#147;reinvestment period&#148;);</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>if you purchased your units before we received our minimum offering proceeds, interest distributed to you that was earned while your subscription funds were held in an escrow account;</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>any portion of your capital contribution returned to you because we did not invest all of our net offering proceeds; and</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your share of our liquidating distributions.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, your capital contribution will be reduced, but not below zero, without first reducing your unpaid 8% return, if any, by the total amount of all payments made to you, if any, in redemption of a portion or all of your units. Thus, your 8% return is calculated on a decreasing base of your capital contribution. For example, on a $100 investment, a $10 distribution in year one would result in a $2.00 reduction in your capital contribution. The $2.00 reduction consists of $2.00 in distributions in excess of the $8.00 that was required to satisfy the 8% return in year one. This leaves a $98 adjusted capital contribution on which the 8% return would be calculated in year two. </font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p52a"></a>Return of Unused Capital</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will distribute to you and our other investors, without interest, any net offering proceeds we do not commit to investment within 24 months after the beginning of this offering or that are not required as reserves.</font></p>



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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>&#147;Net offering proceeds&#148; means  our gross offering proceeds minus the organization and offering expense allowance and dealer-manager fees, sales commissions and due diligence expenses payable by us.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Funds will be considered committed for investment, and need not be returned, to the extent we have written agreements in principle, commitment letters, letters of intent, option agreements or similar contracts. We must complete investments under those agreements within a further period of 12 months or return the uninvested funds to you and our other investors, except that investments using funds from Ohio investors must be completed within a three month period or those funds must be returned.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p52b"></a>Cash from Reserve Account</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our partnership agreement requires us initially to establish a cash reserve for general working capital purposes of not less than 1% of our offering proceeds. Any cash reserves used need not be restored, but if they are restored they may be restored from our operating revenues. We may distribute to you and our other limited partners any cash reserves that our general partner determines are no longer required for our operations. However, our general partner intends to make distributions only out of our:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>cash from operations; and</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>cash from sales or refinancings; and</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will not borrow for the purpose of making distributions, nor will we make distributions out of offering proceeds we are holding pending investment or capital reserves, unless our general partner determines the reserve is no longer required.</font></p>
<p style=' margin-bottom:0pt; margin-top:9pt;text-align:left;'><b><font size=2><a name="p52c"></a>Election to Reinvest Cash Distributions in Units During the Offering Period</font></b></p>
<p style=' margin-bottom:0pt; margin-top:6pt;text-align:left;'><font size=2>You may elect to have your distributions from us reinvested in additional units during the offering period. In addition to your initial purchase of not less than 50 units ($5,000), you may elect on your subscription agreement to use any cash distributions that you receive from us during the offering period to purchase additional units on the same terms as you purchased your initial units, to the extent units are then available for purchase.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, if you previously invested in Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) or Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), which are prior equipment leasing and financing programs sponsored by LEAF Financial, an affiliate of our general partner, you may elect on your subscription agreement to use any cash distributions you receive from either or both of those programs to purchase our units during the offering period.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>All units purchased by you with distributions from us, or from LEAF I, LEAF II or both, will be purchased at the public offering price and on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements, except that there is no minimum number of units that you must purchase if your cash distributions from LEAF I, LEAF II or both, are used to purchase your units in us. </font></p>
<p style=' margin-bottom:12pt; margin-top:8pt;text-align:left;'><font size=2>We will use your distributions to purchase your units not later than 30 days from the applicable distribution date, to the extent that units are then available for purchase. You may choose to reinvest your distributions at any time during the offering period by making the appropriate election on your subscription agreement, which is Appendix C to this prospectus. If you wish to change the election you made on a previously submitted subscription agreement, you may do so by written notice to our general partner as described in Appendix C.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>Notice to Ohio residents</font></i><font size=2>: Ohio investors may not elect to have either their distributions from us, nor their cash distributions from LEAF I and/or LEAF II, reinvested in our units.</font></p>
<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p53a"></a>FEDERAL INCOME TAX CONSEQUENCES</font></b></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p53b"></a>Special Counsel&#146;s Tax Opinion Letter</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have not requested a ruling from the IRS with respect to any federal tax consequence to you of an investment in us. Instead, we have obtained and will rely on a tax opinion letter from Kunzman &amp; Bollinger, Inc., our special counsel for this offering. You are encouraged to read the tax opinion letter, which has been filed as Exhibit 8.1 to the registration statement of which this prospectus is a part. See the &#147;Where You Can Find More Information&#148; section of this prospectus for information on how you can obtain a copy of the tax opinion letter.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following discussion covers all of the material and any significant federal income tax issues related to purchasing, holding and disposing of our units that may be relevant to a &#147;typical limited partner.&#148;  We consider a typical limited partner to be a natural person who is a citizen of the United States and purchases units in this offering. However, the tax consequences of investing in us may not be the same for all typical limited partners. This is because the practical utility of the tax aspects of any investment depends largely on each limited partner&#146;s particular income tax position in the year in which items of income, gain, loss, deduction or credit are properly taken into account in computing his or her federal income tax liability. In addition, the tax consequences of an investment in us by certain investors, such as tax-exempt entities, corporations, trusts, partnerships, foreign
persons or other investors that may be subject to special treatment under federal income tax laws, may be different from those discussed below and special counsel&#146;s tax opinions may not be applicable to those investors.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our special counsel&#146;s tax opinion letter includes the following disclosures:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'>&nbsp;</p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=3><b>&#149;</b></font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>The tax opinion letter was written to support the promotion or marketing of units in us to potential limited partners, and our special counsel has helped our general partner organize and document this offering of our units.</font></b></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'>&nbsp;</p> </td>
        <td width="3%" valign=top style='padding:4.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=3><b>&#149;</b></font></b></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>The tax opinion letter is not confidential. There are no limitations on the disclosure by us or by any of our limited partners to any other person of the tax treatment or tax structure of us or an investment in us.</font></b></p> </td> </tr></table>



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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'>&nbsp;</p>
    </td>
    <td width="3%" valign=top style='padding:4.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=3><b>&#149;</b></font></b></p>
    </td>
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      <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Our
        limited partners have no contractual protection against the possibility
        that a portion or all of their intended tax benefits from an investment
        in us ultimately are not sustained if challenged by the IRS. See the &#147;Risk
        Factors &#150; Your Tax Benefits from an Investment In Us Are Not Contractually
        Protected&#148; section of this prospectus.</font></b></p>
    </td>
  </tr>
</table>




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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'>&nbsp;</p> </td>
        <td width="3%" valign=top style='padding:4.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=3><b>&#149;</b></font></b></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Each potential limited partner is urged to seek advice based on his particular circumstances from an independent tax advisor with respect to the federal tax consequences to him of an investment in us.</font></b></p> </td> </tr></table>





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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This discussion and special counsel&#146;s tax opinion letter are based in part on the current federal income tax laws. Future changes in existing law, which may take effect retroactively, may cause the actual tax consequences of an investment in us to vary substantially from those discussed below and could render special counsel&#146;s tax opinions inapplicable. Special counsel&#146;s tax opinions also are based in part on statements made in this prospectus by us and our general partner concerning us and our proposed activities, including forward-looking statements. See the &#147;Forward-Looking Statements and Associated Risks&#148; section of this prospectus. In addition, our general partner has made certain representations to our special counsel relating to us and our proposed activities,  which are set forth in special counsel&#146;s tax opinion letter. Any material inaccuracy in this prospectus or our
general partner&#146;s representations may render special counsel&#146;s tax opinions inapplicable.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In giving its opinions, special counsel made the principal assumptions that any amount borrowed by you to purchase your units will not be borrowed from any other limited partner or anyone related to another limited partner, and you will be severally, primarily, and personally liable for the borrowed amount. In this regard, our general partner and its affiliates will not make or arrange financing for you or our other limited partners to use to purchase our units. Also, in giving its opinions special counsel assumed that you will not be protected from losing the amount you paid for your units through nonrecourse financing, guarantees, stop loss agreements or other similar arrangements.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Special counsel believes that its tax opinion letter addresses all of the material and any significant federal  tax issues associated with an investment in us by a typical limited partner. Although special counsel&#146;s tax opinions express what it believes a court would probably conclude if presented with those issues, its opinions are only predictions, and are not guarantees, of the outcome of the particular tax issues being addressed. The IRS could challenge our special counsel&#146;s tax opinions and the challenge could be sustained in the courts and cause adverse tax consequences to you and our other limited partners. Taxpayers bear the burden of proof to support claimed deductions, and opinions of counsel are not binding on the IRS or the courts.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Subject to the foregoing, special counsel has given the following opinions with respect to the proper federal tax treatment of an investment in us by a typical limited partner:</font></p>



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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>We will be classified as a partnership for federal income tax purposes, and not as a corporation.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>We will not be treated as a publicly traded partnership under the Code.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>The passive activity limitations on losses and credits under &sect;469 of the Code will apply to our typical limited partners. </font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Our business expenses, including payments for personal services actually rendered in the taxable year in which accrued, which are reasonable, ordinary and necessary and do not include amounts for items such as the acquisition costs of Equipment, Leases, Secured Loans or Equipment subject to Existing Leases, Organization and Offering Costs and other items that are required to be capitalized under the Code, are currently deductible.</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Potential Limitations on Deductions. </font></b><font size=2>Your ability in any taxable year to use your share of these deductions from us on your individual federal income tax returns may be reduced, eliminated or deferred by the following limitations:</font></p> </td> </tr></table>






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        <td width="12%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your personal tax situation, such as the amount of your regular taxable income, alternative minimum taxable income, losses, itemized deductions, personal exemptions, etc., which are not related to your investment in us;</font></p> </td> </tr></table>






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        <td width="12%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the amount of your adjusted tax basis in your units at the end of our taxable year;</font></p> </td> </tr></table>






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        <td width="12%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your &#147;at risk&#148; amount in us at the end of our taxable year; and</font></p> </td> </tr></table>






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        <td width="12%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the passive activity limitations on losses.</font></p> </td> </tr></table>





<p align="center"><Font size="2" face="serif">54</font></p>
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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="4%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(5)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Our reasonable purchase price for equipment that we are deemed to own under the Code that is leased to independent third-party lessees under operating leases (but not equipment leased under full payout leases or equipment that is subject to secured loans), which cannot be deducted immediately, will be eligible for cost recovery deductions under the Modified Accelerated Cost Recovery System (&#147;MACRS&#148;) beginning in the taxable year the equipment is placed in service by us.</font></p> </td> </tr></table>



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    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><i><font size=2>Your
        ability in any taxable year to use your share of these deductions from
        us on your personal federal income tax returns may be reduced, eliminated
        or deferred by the &#147;Potential Limitations on Deductions&#148; set
        forth in opinion (4), above.</font></i></p>
    </td>
  </tr>
</table>
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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="4%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(6)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>As a limited partner, your initial tax basis in your units will be the purchase price of your units.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="4%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(7)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>As a limited partner, your initial &#147;at risk&#148; amount in us will be the purchase price of your units.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="4%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(8)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>The allocations of income, gain, loss and deduction, or items thereof, set forth in our partnership agreement will govern your share of those items to the extent the allocations do not cause or increase deficit balances in your capital account in us.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="4%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(9)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>We will possess the requisite profit motive under &sect;183 of the Code. Also, the IRS anti-abuse rule in Treas. Reg. &sect;1.701-2 and potentially relevant judicial doctrines will not have a material adverse effect on the federal tax consequences of an investment in us by a typical limited partner as described in special counsel&#146;s tax opinions. </font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="4%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>(10)</font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Our special counsel&#146;s overall conclusion is that the federal income tax benefits, in the aggregate, which are a significant feature of an investment in us by a typical limited partner will be realized as contemplated by this prospectus. This opinion is based in part on special counsel&#146;s conclusion that substantially more than half of our material federal income tax benefits, in terms of their financial impact on a typical limited partner, will be realized if challenged by the IRS and litigated.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our special counsel&#146;s tax opinions are limited to those set forth above. The following is a summary discussion of the material federal income tax consequences of an investment in us.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p55a"></a>Partnership Classification</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Because we were formed as a limited partnership, under current Treasury Regulations we will automatically be treated as a partnership for federal income tax purposes unless we elect to be taxed as a corporation, which we will not do, or we are deemed to be a publicly traded partnership under the Code. A publicly traded partnership is a partnership whose interests are traded on an established securities market or are readily tradable on either a secondary market or the substantial equivalent of a secondary market. Also, if a publicly traded partnership derives less than 90% of its gross income from certain passive sources such as interest, dividends, rents from real property and gains from the sale of real property, the publicly traded partnership will be taxed as a corporation. Since we will derive less than 90% of our gross income from those sources of income, our units must not be &#147;publicly traded&#148;
as defined by the Code or we will be taxed as a corporation.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In this regard, we do not intend to list our units for trading in any securities market, exchange, or interdealer quotation system. Therefore, we will be a publicly traded partnership only if our units become readily tradable on a secondary securities market or on the substantial equivalent of a secondary market. Our units will not become readily tradable merely because we may provide information to you and our other limited partners regarding another limited partner&#146;s desire to buy or sell units, or occasionally arrange transfers between our limited partners.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, Treas. Reg. &sect;1.7704-1 provides certain &#147;safe harbors&#148; under which certain types of transfers of partnership interests are not counted as trades on a secondary market or the substantial equivalent of a secondary market. These safe harbors include the following:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Private Transfers.</font></b><font size=2> Private transfers are not counted. Private transfers include, but are not limited to the following:</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>transfers at death;</font></p> </td> </tr></table>





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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>transfers between family members; and</font></p> </td> </tr></table>






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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>transfers from qualified retirement plans and IRA&#146;s.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Qualified Matching Services.</font></b><font size=2> Transfers of our units made through a qualified matching service are not counted. However, we and our affiliates will not sponsor or operate, either formally or informally, a qualified matching service for our units. See the &#147;Summary of the Offering &#150; Risk Factors&#148; section of this prospectus.</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><b><font size=2>Lack of Actual Trading.</font></b><font size=2> In addition, we will not be treated as a publicly traded partnership under the regulations if the total of all of our units transferred during any taxable year, other than private transfers and transfers through a qualified matching service as described above, do not represent more than 2% of the total interests in our capital or profits in that taxable year.</font></p> </td> </tr></table>



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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>&nbsp; </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>Although
        units redeemed by a partnership under a qualified redemption agreement
        will not count against the 2% limitation, the redemption provisions in
        Section 13.5 of our partnership agreement have not been structured to
        meet the requirements of a qualified redemption plan under Treas. Reg.
        &sect;1.7704-1. Since any units redeemed by us must be counted within
        the 2% limitation in our taxable year in which the redemption is made,
        Section 13.5 of our partnership agreement provides that we will not redeem
        any units in a calendar year that, together with all other units transferred
        in that calendar year, would exceed the 2% limitation set forth above.</font></p>
    </td>
  </tr>
</table>
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  <tr>
    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>&nbsp; </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0in;text-align:left;'><font size=2>In
        addition, Section 13.2(c) of our partnership agreement provides that our
        general partner will not permit the transfer of any of our units (including
        redemptions of units) in any taxable year that do not fall within at least
        one of the &#147;safe harbors&#148; set forth in Treasury Regulations,
        including those described above. Based on this provision, our units should
        not be deemed to be readily tradable on a secondary market or the substantial
        equivalent of a secondary market. Thus, we should not be treated as a
        publicly traded partnership that is taxable as a corporation under the
        Code. Instead, our special counsel has given its opinion that we will
        be classified as a partnership for federal income tax purposes.</font></p>
    </td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p56a"></a>Flow Through of Taxable Income</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Although we will file annual federal information income tax returns, we will not pay any federal income taxes as a partnership. Instead, you and our other limited partners will be required to report on your personal income tax returns your respective share of our income, gains, losses and deductions without regard to whether we make cash distributions to you. Consequently, the amount of taxable income we allocate to you in any taxable year may exceed the amount of cash we distribute to you in that taxable year. In that event, you would have to pay any resulting tax liability in excess of your cash distributions from us in that taxable year with your personal funds.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p56b"></a>Treatment of Distributions</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our cash distributions to you and our other investors generally will not be taxable for federal income tax purposes except to the extent that they exceed the amount of your adjusted tax basis in your units immediately before the distribution. The excess distributions to you, if any, generally would be considered to be gain from the sale or exchange of your units, and would be taxable to you under the rules described in &#147;&#150; Sale or Other Disposition of Units,&#148; below. Also, your share of our liabilities for which no partner, including our general partner, bears the economic risk of loss, which are known as &#147;nonrecourse liabilities,&#148; will increase your adjusted tax basis in your units. However, if your share of our nonrecourse liabilities is reduced, the amount of the reduction of your share of our nonrecourse liabilities will be treated the same as a distribution of cash from us to you.
Also, to the extent, if any, that our distributions to you , including any reductions in your share of our nonrecourse liabilities, cause your &#147;at risk&#148; amount in us to be less than zero at the end of any taxable year, you will be required to recapture as income any losses that we allocated to you in previous years that you deducted on your personal income tax returns. See &#147;&#150; &#145;At Risk&#146; Limitation on Deductions,&#148; below.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>When we issue additional units to existing or new limited partners during the offering period of this offering, your percentage ownership interest in us will decrease, which will also result in a corresponding decrease in your share of our nonrecourse liabilities. This decrease in your share of our nonrecourse liabilities will be deemed a distribution of cash to you and may be taxable as described above. Also, a non-pro rata distribution of money or property to you and our other limited partners may result in ordinary income to you, regardless of your adjusted tax basis in your units, if the distribution reduces your share of our &#147;unrealized receivables,&#148; including depreciation recapture, or substantially appreciated &#147;inventory items.&#148;  These terms are defined in Section 751 of the Code, and are known as &#147;Section 751 assets.&#148;  In that event, you would be treated as having been
distributed your proportionate share of our Section 751 assets and having exchanged those assets with us in return for the non-pro rata portion of the actual distribution made to you. This generally would result in your realization of ordinary income under Section 751(b) of the Code in an amount that would equal the excess of:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
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    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>the
        non-pro rata portion of that distribution to you; over</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your
        tax basis for the share of our Section 751 assets deemed relinquished
        by you in the exchange.</font></p>
    </td>
  </tr>
</table>
<p align="center"><Font size="2" face="serif">56</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p57a"></a>Basis of Units Limitation on Deductions</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your deduction on your personal income tax returns of your share of our losses cannot exceed your adjusted tax basis in your units at the end of our taxable year. Your initial tax basis for your units will be the amount of money that you paid for your units. Subsequently, your initial tax basis in your units will be:</font></p>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>increased by:</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your share of our income; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your share of our nonrecourse liabilities, which will change from time to time; and</font></p> </td> </tr></table>






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        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>decreased, but not below zero, by:</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>our distributions to you;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your share of our losses;</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>any decreases in your share of our nonrecourse liabilities, which will change from time to time; and</font></p> </td> </tr></table>






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        <td width="6%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>your share of our expenditures that are not deductible in computing taxable income and are not required to be capitalized.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your adjusted tax basis in your units, however, will not be increased or decreased by any debt of ours for which our general partner is liable, if, for example, it has either guaranteed the loan or because of its general liability for our obligations under applicable state law as our general partner. Also, on the sale or other taxable disposition of a unit by you, any gain you recognize cannot be offset by any of your losses that were previously suspended by the basis limitation discussed above. Should a cash distribution from us to you exceed your adjusted tax basis in your units immediately before the distribution, taxable gain would result to you to the extent of the excess as discussed in &#147;&#150; Treatment of Distributions,&#148; above.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p57b"></a>&#147;At Risk&#148; Limitation on Deductions</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your ability to deduct your share of our losses generally will be limited to the amount for which you are &#147;at risk&#148; with respect to our activities at the end of our taxable year, if that amount is less than the amount of your adjusted tax basis in your units at the end of our taxable year. In general, you will be at risk to the extent of the adjusted tax basis of your units, reduced by:</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>any portion of your adjusted tax basis in your units that is attributable to your share of our nonrecourse liabilities; and</font></p> </td> </tr></table>






<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'> <tr>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>
        <td valign=top style='padding:6.0pt 0in 0in 0in;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>any amount of money that you borrowed to buy your units if the lender of those borrowed funds is another of our limited partners, is related to another of our limited partners, or can look only to your units for repayment.</font></p> </td> </tr></table>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Thus, your at risk amount in us will increase or decrease as the adjusted tax basis of your units increases or decreases, other than increases or decreases attributable to your share of our nonrecourse liabilities. Also, you will not be at risk for the amount you paid for your units if that amount is protected from loss through nonrecourse financing, guarantees, stop loss agreements or other similar arrangements.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You must recapture losses deducted by you in previous years to the extent, if any, that our distributions to you cause your at risk amount to be less than zero at the end of any taxable year. Losses disallowed or recaptured as a result of the &#147;at risk&#148; limitation will carry forward and will be allowable in subsequent taxable years to the extent that your tax adjusted basis or your at risk amount in us, whichever is the limiting factor, subsequently increases.</font></p>


<p align="center"><Font size="2" face="serif">57</font></p>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>










<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p58a"></a>Passive Activity Limitations on Losses</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The passive activity rules under &sect;469 of the Code allow taxpayers to deduct their passive activity losses only against their passive activity income. Under these rules, taxpayers generally must separate their income and loss into three categories:</font></p>



<div align=left>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>active trade or business income or loss, such as ordinary income from a salary and other types of compensation for personal services;</font></p> </td> </tr></table>
</div>






<div align=left>


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    <tr>

        <td width="10%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>passive income or loss, such as income or loss from an investment in a limited partnership as a limited partner; and</font></p> </td> </tr></table>
</div>






<div align=left>


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    <tr>

        <td width="10%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>portfolio income or loss, which generally consists of:</font></p> </td> </tr></table>
</div>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>interest, dividends and royalties that are not received in the ordinary course of a trade or business; and</font></p> </td> </tr></table>
</div>






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        <td width="15%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>gain or loss that is not derived in the ordinary course of a trade or business on the sale of property that generates portfolio income or is held for investment.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The passive activity rules apply to individuals, estates, trusts, personal service corporations and some closely-held corporations, including S corporations.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A
    passive activity involves the conduct of a trade or business in which the
    taxpayer does not materially participate. Rental activities, however, generally
    are treated as passive activities whether or not the taxpayer materially
    participates in the activity. In addition, as set forth above, since limited
    partners generally do not materially participate in the management or activities
    of their limited partnership, limited partner interests in limited partnerships
    generally are treated as passive activities. Accordingly, as a limited partner,
    you generally must treat your investment in us as an investment in a passive
    activity. As a passive activity, interest
    earned on our funds before their investment in
    equipment
    will be
    treated
    as portfolio
    income
    that cannot
    be
    offset with
    passive losses.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, a portion of your share of our gross income
    might be treated for federal income tax purposes as portfolio income and
    gross
    income
    that is not from a passive activity, which means that it cannot be offset
    by passive losses, instead of passive income.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As a limited partner, you can deduct passive losses against your passive income, if any, to reduce your overall income tax liability, but you cannot offset active (i.e., non-passive) income or portfolio income with passive losses. Thus, your ability to use your share of our passive losses will be limited by the amount of your passive income in any given tax year from us, plus your net passive income from any other passive activities (other than publicly traded partnerships as discussed below) in which you may have invested. This means that if your share of our passive loss in any taxable year is greater than the total of your net passive income from all other sources in that taxable year, you cannot deduct the excess loss in the year you incurred it. You can, however, carry the suspended passive loss forward indefinitely to offset any passive income you may derive in future years to the extent of the suspended
passive loss, whether your passive income is derived from us or from another passive activity (other than a publicly traded partnership as discussed below) in which you may invest. Also, any suspended passive losses generally may be deducted against your non-passive income if you sell all of your units to a third-party in a taxable transaction.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Losses from a publicly traded partnership that is taxed as a partnership are treated as passive activity losses that may only be used to offset income subsequently generated by the same publicly traded partnership. The IRS generally treats income from a publicly traded partnership as portfolio income, unless it is used to offset previous losses from the same publicly traded partnership. We have been structured to avoid being classified as a publicly traded partnership; however, these rules mean that your share of our passive income or passive losses cannot be used to offset any losses or income you may derive as a limited partner in any publicly traded partnership in which you may have invested.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p59a"></a>Limitations on Interest Deductions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The amount of a noncorporate taxpayer&#146;s investment interest deduction is generally limited to the amount of the taxpayer&#146;s net investment income. For purposes of this limitation, investment interest does not include any interest that is taken into account under &sect;469 of the Code in computing income or loss from a passive activity. Thus, your share of our passive interest expense that we use in computing our net passive income or passive loss will not be limited by the investment interest limitation. However, your share of our portfolio income and related expenses will be treated as investment income and investment expenses. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, we may enter into transactions involving the prepayment of interest or the payment of points, commitment fees, and loan origination or brokerage fees. In general, prepaid interest, points, and similar costs cannot be deducted currently, but must be capitalized and amortized over the life of the related loan.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p59b"></a>Partnership Income Tax Withholding</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If we are required, or elect, in our general partner&#146;s discretion, under applicable law to pay any federal, state or local income tax on behalf of you or our other limited partners, our general partner or any former limited partner, we are authorized under our partnership agreement to pay those taxes from our funds. That payment, if made, will be treated as a distribution of cash from us to the person on whose behalf the payment was made. If the payment is made on behalf of a person whose identity cannot be determined, we are authorized under our partnership agreement to treat the payment as a distribution to all of our current limited partners and our general partner. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p59c"></a>Organization and Offering Expenses and Start-Up Costs. </font></b><font size=2>We cannot deduct the costs of organizing us as a limited partnership or our start-up costs, in the year we incur them. Instead, we must capitalize and amortize our organization expenses and start-up costs over a 180-month period. Also, we can deduct our syndication expenses, if at all, only on our liquidation, and then only as a capital loss. Syndication expenses include the following:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>brokerage fees such as the dealer-manager fee and sales commissions paid in this offering;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>registration and filing fees with the SEC, the NASD and each state in which our units are offered for sale;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our legal fees for securities and tax advice concerning this prospectus;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>accounting fees for the preparation of information to be used in this offering; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>printing and reproduction costs of this prospectus and our sales literature, and other selling or promotional expenses we may incur in connection with this offering.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The proper classification of a portion of these expenses may not be clear, and it is possible that the IRS may seek to recharacterize a portion of our organization costs as nonamortizable syndication costs. Since the determination of this issue is inherently factual, and the nature of the expenses that might be at issue is not currently known, special counsel cannot express any opinion on this issue.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p59d"></a>Business Expenses</font></b><font size=2>. Ordinary and necessary business expenses, including reasonable compensation for services rendered, are currently deductible expenses. In this regard, our general partner has represented, based on the experience and knowledge of industry practices of its management, that the amounts we will pay to our general partner and its affiliates under our partnership agreement for services rendered by them to us, or on our behalf, are reasonable amounts that ordinarily would be paid for similar services in similar transactions between persons having no affiliation and dealing with each other &#147;at arms&#146; length.&#148;  The fees we pay to our general partner and its affiliates, however, will not be currently deductible to the extent it is determined by the IRS or the courts that those fees are:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>properly characterized as syndication expenses or other capital costs, such as equipment costs; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>not &#147;ordinary and necessary&#148; business expenses.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In the event of an IRS audit of our annual federal information income tax return, payments by us to our general partner and its affiliates will be scrutinized by the IRS to a greater extent than payments to an unrelated party.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Although a portion of our activities might otherwise qualify for the &#147;U.S. production activities deduction,&#148; you and our other limited partners will not be entitled to this deduction with respect to our activities, because the deduction cannot exceed 50% of the IRS Form W-2 wages paid by a taxpayer for a tax year, and neither we, nor you and our other limited partners, will pay any Form W-2 wages with respect to our activities since we will not have any employees. Instead, we will rely on our general partner and its affiliates to manage us and our business. See the &#147;Management&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p60a"></a>Tax Treatment of Leases</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your cost recovery or depreciation deductions with respect to any item of our equipment depends, in part, on whether the lease agreement covering the equipment is treated under the Code as a &#147;true lease,&#148; which means that we retain ownership of the equipment after it is leased. Cost recovery and depreciation deductions are not available if a purported lease agreement is classified by the IRS or the courts as a sale or a financing or refinancing arrangement under which the ownership of the equipment shifts to a purchaser. See &#147;&#150; Depreciation,&#148; below.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Whether we are the owner of any particular item of equipment, and whether our leases will be treated as true leases for federal income tax purposes, depends on both factual and legal considerations. The IRS has published guidelines on the tax treatment of leveraged leases. These guidelines do not purport to be substantive rules of law and are not supposed to be applied by the IRS in audits, although that has happened in a number of instances. Whether our leases will meet the relevant requirements to be characterized as true leases and, in the case of our operating leases, whether we will be treated for tax purposes as the owner of the equipment subject to the operating leases, will depend on the specific facts surrounding each lease. Since these facts cannot be determined now with regard to leases that will be entered into in the future, special counsel cannot render an opinion on this issue.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, both the lessor and the lessee in a deferred rental agreement must accrue the rent and interest annually. A deferred rental agreement is a lease of tangible property for more than $250,000 that either provides for increasing rental payments or provides that some rent for the use of the property in a calendar year is payable after the close of the following calendar year. In general, the amount of rent that must be allocated to a tax year will be determined by the terms of the lease. If we enter into a transaction that meets the definition of a deferred rental agreement, then we will recognize income before we receive the corresponding cash.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On a limited basis we may finance end users&#146; acquisition of equipment by providing them with secured loans. We will not be entitled to any depreciation or cost recovery deductions with respect to the equipment involved in those transactions. See &#147;&#150; Depreciation,&#148; below. Whether or not we will be deemed to be in the trade or business of lending money with respect to any secured loans we may make, whether or not our income and expenses (including interest expense) allocable to those secured loans ultimately will be treated as passive or as portfolio under the passive activity rules, and whether or not a portion of our gross income from our secured loans will be treated as income that is not from a passive activity, are inherently factual determinations on which special counsel cannot render an opinion. See &#147;&#150; Passive Activity Limitations on Losses,&#148; above.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p60b"></a>Depreciation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will be entitled to depreciation or cost recovery deductions under the Modified Accelerated Cost Recovery System (&#147;MACRS&#148;) on equipment that we are treated as owning under the Code. Generally, we expect to be eligible to claim cost recovery deductions on equipment subject to our operating leases, but not on equipment subject to our full payout leases or our secured loans. Our depreciable equipment generally will have either three, five or seven year cost recovery periods under the Code, depending primarily on the type of equipment, during which time we can recover our cost of the equipment through cost recovery deductions. The amount deductible in each year generally is calculated for regular federal income tax purposes using the 200% declining-balance depreciation method, switching to the straight-line method at a time that maximizes the deduction. Cost recovery deductions are calculated
differently for purposes of the alternative minimum tax. See &#147;&#150; Alternative Minimum Tax,&#148; below.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We intend to allocate all or a portion of the acquisition fees we pay to our general partner for the selection and purchase of equipment subject to our operating leases to the cost basis of the equipment. The IRS may not agree that cost recovery deductions calculated on a cost basis that includes our general partner&#146;s acquisition fees are properly allowable. The IRS might assert that the acquisition fees are attributable to items other than the equipment, or are not subject to cost recovery at all. If the IRS were successful in making that claim, the cost recovery deductions available to us, as well as your respective share of those deductions, would be reduced accordingly. Because the determination of this issue depends in part on the magnitude and type of services performed by our general partner in return for the acquisition fees, which are presently undeterminable and may vary for each piece of
equipment acquired by us, special counsel is unable to render an opinion as to whether or not our decision to include a portion or all of our general partner&#146;s acquisition fees for equipment acquired by us and leased to others under operating leases in the amount of cost recovery deductions we intend to claim for equipment subject to our operating leases would be upheld by the courts if challenged by the IRS.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, we may enter into operating leases with &#147;tax-exempt&#148; entities which, in this context,  includes governmental bodies and tax-exempt governmental instrumentalities, tax-exempt organizations, foreign persons and entities, and some international organizations. If we do, we must use the straight-line depreciation method for the equipment subject to our operating leases, which is then called &#147;tax-exempt use property&#148; for depreciation purposes. The depreciation period for tax-exempt use property is the longer of:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the equipment&#146;s asset depreciation range class life, which generally is longer than the three, five and seven year cost recovery periods discussed above; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>125% of the term of the operating lease, including all options to renew as well as some successor leases to the original operating lease.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, if our total deductions (other than interest expense) directly allocable to equipment treated as tax-exempt use property, plus our deductions for interest expense properly allocable to the equipment, exceed our income from the operating lease, then the excess deductions, which are referred to as &#147;tax-exempt use losses&#148; are not allowed, subject to certain exceptions, and must be carried forward to the next tax year.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, we anticipate that many of our limited partners will be tax-exempt entities, including, in addition to those listed above, employee benefit plans such as qualified pension and profit sharing plans, Keogh plans and individual retirement accounts (&#147;IRAs&#148;). The proportionate share of these tax-exempt limited partners in our equipment also will be treated as tax-exempt use property, which will affect our depreciation deductions as described above with respect to all of our partners, unless our tax-exempt limited partners are subject to federal unrelated business income tax on their share of our taxable income. In this regard, most, if not all, of their taxable income from us will probably be treated as unrelated business taxable income in the hands of employee benefit plans and our other tax-exempt investors. See &#147;&#150; Federal Taxation of Employee Benefit Plans and Other Tax-Exempt
Organizations,&#148; below. Also, our taxable income will be treated as United States source business income in the hands of foreign limited partners if no exemption from United States&#146; taxation is available to them. See &#147;&#150; Federal Tax Treatment of Foreign Investors,&#148; below. However, any adjustments in our cost recovery deductions, as well as any suspended tax-exempt use losses, as discussed above, because we have tax-exempt limited partners, will be specially allocated under our partnership agreement to those tax-exempt limited partners only. Also, our general partner has represented that it will ensure that participation by certain tax-exempt entities in us will be limited at all times to less than 25% of our total units sold. This, in turn, will limit the amount of our equipment that could potentially be treated as tax-exempt use property because our units have been sold to tax-exempt limited partners. See the &#147;Investment by Qualified Plans &#150; Plan
Assets&#148; section of this prospectus. For these reasons, our general partner anticipates that the sale of our units to tax-exempt limited partners will have no adverse effect on the depreciation or cost recovery deductions we allocate to our limited partners who are not tax-exempt entities.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Although we do not currently anticipate entering into operating leases for equipment that will be used predominantly outside the United States, it is possible that we may do so in the future. If we do, we must use the straight line method of depreciation over a period corresponding to the equipment&#146;s asset depreciation range class life, which generally is longer than the three, five and seven year cost recovery periods discussed above.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><b><font size=2><a name="p61a"></a>Sale
  or Other Disposition of Partnership Property</font></b></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Because the income tax rates for noncorporate taxpayers on ordinary income generally are much higher than the income tax rates on capital gains, the Code has many rules classifying income as either ordinary income or capital gains, and distinguishing between long-term and short-term capital gains and losses. The distinction between ordinary income and capital gains is relevant for other purposes as well. For example, there are limits on the amount of capital losses that an individual may offset against ordinary income in any taxable year.</font></p>


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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On a sale or other taxable disposition of any of our assets, we will realize a gain or loss equal to the difference between our basis in the asset at the time of disposition and the price we receive for it. Also, any foreclosure on assets we have pledged as collateral for our borrowings would be considered a taxable disposition of the pledged assets by us. We would realize gain on the foreclosure to the extent that the face amount of the debt being discharged was greater than our tax basis in those assets, even though we would receive no cash. Also, your respective share of any capital gain that we may realize on the disposition of our assets generally may also be treated by you as capital gain on your individual federal income tax returns, subject, however, to recapture rules that may require a portion or all of the gain to be treated as ordinary income as discussed below.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Before any gain that we may realize on the sale of an asset can be treated as capital gain, the asset must be a capital asset in our hands. In this regard, capital assets do not include property held by a taxpayer primarily for sale to customers in the ordinary course of its business. We expect to acquire and dispose of many assets many times throughout our term. Whether we can treat any gains on these sales as capital gains will depend on the facts and circumstances at the time of each sale. Because this is an inherently factual determination which depends, in part, on how many times we sell our equipment investments, special counsel is unable to express an opinion on this issue. Even if the equipment sold was a capital asset in our hands, since equipment is tangible personal property all cost recovery or depreciation deductions we previously have taken with respect to the equipment sold will be recaptured as
ordinary income to the extent we realize gain on the sale. Recapture means that we must treat as ordinary income a portion or all of any gain we may realize from the sale of our equipment that otherwise would be treated under the Code as capital gain. Recapture cannot be avoided by holding the equipment for any specified period of time. In addition, if we sell property on an installment basis, we must recognize all depreciation and cost recovery recapture as ordinary income at the time of sale, even though we receive the payments in later taxable years.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, certain gains and losses are grouped together under the Code to determine their tax treatment. For example, gain on the sale or exchange of certain assets, including equipment used in a trade or business and held for more than one year, is added to gain from certain compulsory or involuntary conversions of property. If these gains exceed the losses from the sales, exchanges, and conversions of the equipment, the excess gains will be taxed as capital gains, subject to the general rules of recapture of cost recovery and depreciation deductions as ordinary income, as described above, and a special recapture rule described below. If the losses exceed the gains, however, the excess losses will be treated as ordinary losses. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Under a special recapture rule, any net gain will be treated as ordinary income rather than as capital gain if we have non-recaptured net losses from the five preceding taxable years. Based on our intended activities and the recapture rules discussed above, you should anticipate that substantially all, if not all, of any gain we realize on the sale or other taxable disposition of our equipment will be treated as ordinary income for income tax purposes, rather than capital gain.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p62a"></a>Sale or Other Disposition of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your gain or loss on the sale or other taxable disposition of your units (including our redemption of any of your units) generally will equal the difference between the amount you realize from the sale and your adjusted tax basis in the units sold. Different tax rules will apply, however, if we were to redeem all of your units. The amount you realize from a sale of your units includes the cash or other consideration you receive from the purchaser, as well as your share of our nonrecourse liabilities. This gain or loss, except as noted below, will be taxed as either long-term or short-term capital gain or loss, depending on how long you have held your units, assuming that the units qualify as capital assets in your hands. Because the Code deems the amount realized from the sale to include your share of our nonrecourse liabilities, for which you will receive no cash, the gain you may realize on a sale of your
units could result in a tax liability to you in excess of the cash, if any, you receive from the sale.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, the portion of your gain, if any, attributable to our Section 751 assets, which includes inventory and unrealized receivables, will be treated as ordinary income, rather than capital gain. Section 751 assets include, among other items, assets that are subject to recapture of depreciation or cost recovery deductions, determined as if your proportionate share of our properties is sold at the time you sell your units. Thus, a substantial portion, if not most, of any gain you realize on the sale of your units may be treated as ordinary income depending primarily on how long  you have held your units and the amount of cost recovery or depreciation deductions you have claimed on our equipment that we lease to our customers under operating leases.</font></p>


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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You must promptly notify us of any sale or exchange of your units. Once we are notified, we are required to inform the IRS, the buyer and you of the fair market value of the allocable share of our unrealized receivables and appreciated inventory attributable to the units you sold or exchanged, which must be treated as ordinary income as discussed above. Our written report to you and the buyer must be made by January 31 following the calendar year of the sale. If you fail to timely notify us of the sale or other transfer of your units, the IRS will penalize you $50 per sale.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Generally, no gain or loss  for income tax purposes is recognized on the gift of property, although gift taxes may be owed. However, a gift of your units may be treated as a part sale to the extent of your share of our nonrecourse liabilities. Thus, you may be required to recognize gain in an amount equal to the difference between your share of our nonrecourse debt and, in the case of a charitable contribution, the portion of your basis in your units allocable to the deemed sale transaction. In the case of a non-charitable gift, the amount of your share of our nonrecourse debt is offset by your entire basis in your units. Also, charitable contribution deductions for the fair market value of your units would be reduced by the amounts involved in any deemed partial sale of your units and may be reduced in certain cases by the amount of gain which would have been taxed as ordinary income if the units had been
sold. Also, interests in different partnerships do not qualify for tax-free like-kind exchanges.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>Your ability to sell or otherwise transfer your units will be limited for the reasons described in the &#147;Risk Factors &#150; Your Ability to Dispose of Your Investment in Us Will Be Limited&#148; section of this prospectus.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p63a"></a>Consequences of No Section 754 Election</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Section 754 of the Code permits a partnership to elect to adjust the basis of partnership property on the transfer of an interest in the partnership by sale or exchange or on the death of a partner, and on the distribution of property by the partnership to a partner. The general effect of this election is that transferees of the partnership interests are treated, for purposes of depreciation and gain, as though they had acquired a direct interest in the partnership assets and the partnership is treated for these purposes, on certain distributions to its partners, as though it had newly acquired an interest in the partnership assets and therefore acquired a new cost basis for the assets. The election, once made, may not be revoked without the consent of the IRS. Due to the complexities and added expense of the tax accounting required to implement a Section 754 election to adjust the basis of our property when
units are sold, taking into account the limitations under our partnership agreement on the sale of our units, we do not intend to make the election, although we reserve the right to do so. Even if we do not make the Section 754 election, however, the basis adjustment described above is mandatory under the Code with respect to the transferee partner only, if at the time a unit is transferred by sale or exchange, or on the death of a partner, our adjusted basis in our property exceeds the fair market value of the property by more than $250,000 immediately after the transfer of the unit. Similarly, a basis adjustment is mandatory under the Code if a partnership distributes property in-kind to a partner (which we will not do), and the sum of the partner&#146;s loss on the distribution and the basis increase to the distributed property is more than $250,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Accordingly, except in the special circumstances described above where basis adjustments to our property would be mandatory, if we sell property after a limited partner transfers a unit, taxable gain or loss to the transferee of the unit will be measured by the difference between the transferee&#146;s share of the amount realized by us on the sale of the property and his or her share of our tax basis in the property (which, in the absence of a Section 754 election, will be unchanged by the transfer of the unit), rather than by the difference between his or her share of the amount realized by us on the sale of the property and the portion of his or her purchase price for the unit that was allocable to the property. As a consequence, the transferee of the unit will be subject to tax on a portion of our proceeds from the sale of the property which, as to the transferee, may constitute a return of capital if the
purchase price paid by the transferee for the unit exceeded his or her share of our adjusted basis for all of our properties. Therefore, you and our other limited partners may have even greater difficulty in attempting to sell your units, since the transferee of your units would obtain no current tax benefits from purchasing your units to the extent that the purchase price exceeds your allocable share of our basis in our assets.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p63b"></a>Tax Treatment of Our Termination</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If we terminate as a partnership, we must sell our assets, use the sales proceeds and our other funds to repay our liabilities, and distribute any remaining funds to our partners. Sales and other dispositions of our assets would have the tax consequences described in &#147;&#150; Sale or Other Disposition of Partnership Property,&#148; above. Any liquidating cash distributions we make that exceed the tax basis of a unit generally would be taxable as capital gain, but also would be subject to recapture as ordinary income as described in &#147;&#150; Sale or Other Disposition of Units,&#148; above, assuming the units constitute capital assets in a limited partner&#146;s hands. Cash distributions in amounts less than a limited partner&#146;s basis in his or her units may result in a loss, generally a capital loss, that would be subject to the general limitations on deducting losses and capital losses.</font></p>

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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p63c"></a>Possible
  IRS Audits</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have not sought any rulings from the IRS with respect to any tax issues involving our intended operations as described in this prospectus, nor with respect to the purchase, ownership, redemption or sale of our units by you and our other limited partners. Thus, the IRS may audit our federal information income tax returns and it may not agree with some or all of our tax positions. An audit of our federal information income tax return in any taxable year may result in:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an increase in our income;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the disallowance of our deductions;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the reallocation of income and deductions among our partners;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an audit of the personal income tax returns of you and our other limited partners;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>adjustments of items on your personal income tax returns that are unrelated to this investment; and/or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>additional federal income taxes and penalty or interest liabilities to you and our other limited partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You and our other limited partners must report your share of our income, losses, gains, deductions, and credits (if any) on your personal federal income tax returns in a manner that is consistent with our federal information income tax returns, unless you file a statement with the IRS identifying the inconsistency.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Generally, the federal tax treatment of our income, gains, losses, deductions, and credits (if any) will be determined at the partnership level in a unified partnership proceeding, rather than at the partner level in separate proceedings with you and the our other limited partners. In any audit of us, the IRS will deal with our general partner, serving as our &#147;tax matters partner.&#148; Only limited partners owning at least a 1% interest in us will be entitled to receive a separate notice from the IRS of any audit of our federal information income tax return and the results of the audit. However, groups of our limited partners who together own a 5% or greater interest in us may, by giving notice to the IRS, become a &#147;notice group&#148; and designate a member of their group to receive IRS notices. All of our limited partners have the right to participate in any audit of us at their own expense. We are
required to keep you and our other limited partners informed of any administrative and judicial proceedings involving our tax matters. Also, we will keep you and our other limited partners advised of any significant audit activities by the IRS involving us.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Any tax controversy could result in substantial legal and accounting expenses to us, even if the outcome is favorable. Our general partner will participate as our tax matters partner and general partner in all audits, examinations, hearings, actions and other proceedings by tax authorities relating to us at our expense. As our tax matters partner, our general partner may enter into settlement agreements with the IRS that are binding on our limited partners who own less than a 1% interest in us, except limited partners who are members of a notice group, as described above, or who have filed a statement with the IRS stating that our general partner does not have authority to enter into settlement agreements that are binding on them.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p64a"></a>Alternative Minimum Tax</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>With limited exceptions, taxpayers must pay an alternative minimum tax if it exceeds the taxpayer&#146;s regular federal income tax for the year. For noncorporate taxpayers, the alternative minimum tax is imposed on alternative minimum taxable income (&#147;AMTI&#148;) that is above an exemption amount. AMTI generally is taxable income, plus or minus various adjustments, plus tax preference items. The tax rate for noncorporate taxpayers is 26% for the first $175,000, $87,500 for married individuals filing separately, of a taxpayer&#146;s AMTI in excess of the exemption amount; and additional AMTI is taxed at 28%. However, the regular tax rates on capital gains also will apply for purposes of the alternative minimum tax. For tax years beginning in 2006, the exemption amounts for individuals under the &#147;Tax Increase Prevention and Reconciliation Act of 2005 (&#147;TIPRA&#148;) are the following amounts:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>unmarried individuals, $42,500, less 25% of AMTI exceeding $112,500 (zero exemption when AMTI is $282,500); and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>married individuals filing separately, $31,275, less 25% of AMTI exceeding $75,000 (zero exemption when AMTI is $200,100). Also, AMTI of married individuals filing separately is increased by the lesser of $31,275 or 25% of the excess of AMTI (without regard to the exemption reduction) over $200,100.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Some of the principal adjustments to taxable income that are used to determine AMTI are summarized below.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Depreciation deductions may not exceed deductions computed using the 150% declining balance method and, for property placed in service before January 1, 1999, using an extended recovery period.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Medical expenses are deductible only to the extent they exceed 10% of adjusted gross income.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>State and local property taxes and income taxes are not deductible.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Interest deductions are restricted.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The standard deduction and personal exemptions are not allowed.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Only some types of operating losses are deductible.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Different rules under the Code apply to incentive stock options that may require earlier recognition of income.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The principal tax preference items that must be added to taxable income for alternative minimum tax purposes include certain excess intangible drilling costs and tax-exempt interest earned on certain private activity bonds.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The principal partnership tax items that may have an impact on your and our other limited partners&#146; AMTI as a result of investing in us are cost recovery deductions on the portion of our equipment leased to others under operating leases, which generally will be computed for regular federal income tax purposes using the 200% declining balance method, rather than the 150% declining balance method used for alternative minimum tax purposes and deductions relating to our interest expenses on borrowings we expect to obtain to increase our portfolio of equipment, leases and secured loans. See &#147;&#150; Depreciation,&#148; above, and the following table.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Illustration of How Cost Recovery Adjustments Under an</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Equipment Leasing Program&#146;s Operating Leases</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Can Affect an Investor&#146;s AMTI (&#147;Alternative Minimum Taxable Income&#148;)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(See the footnotes to the following table for the principal assumptions)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right: 6.75pt;text-indent:-8.65pt;text-align: center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Cost
          Recovery</font></b><br>
          <b><font size=1>Period</font></b></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Deduction
          for Regular</font></b><br>
          <b><font size=1>Tax</font></b></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Deduction
          for</font></b><br>
          <B><font SIZE=1>AMT</font></B></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Increase
          or (Decrease) in Investor&#146;s AMTI</font></b><br>
          <b><font size=1>Compared to Investor&#146;s Regular Tax Taxable </font></b><br>
          <b><font size=1>Income</font></b></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right:6.75pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          1</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="1%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="14%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>14,290</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="1%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="14%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>10,710</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="1%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="30%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3,580</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          2</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>24,490</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>19,130</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>5,360</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          3</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>17,490</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>15,030</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>2,460</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          4</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,490</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,250</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>240</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          5</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>8,930</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,250</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>($3,320</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          6</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>8,920</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,250</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>($3,330</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          7</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>8,930</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,250</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>($3,320</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Year
          8</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4,460</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>6,130</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>($1,670</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Total</font>
        </p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>100,000</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>100,000</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#150;0&#150;</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="2">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="2">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="2">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="2">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="2">
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <hr noshade width="100%" color="Gray" size="2">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
    </tr>
  </table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Thus, the investor&#146;s share of the program&#146;s depreciation deductions for alternative minimum tax purposes is:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>less than those deductions for regular tax purposes during the first four years; but</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>greater than those deductions for regular tax purposes during the last four years.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The above table assumes that:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the program&#146;s only cost recovery deductions for the taxable year are for general office equipment that is classified as 7-year property for both regular tax and alternative minimum tax purposes:</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">65</font></p>

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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>




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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the program&#146;s purchase price for the property is $10 million (which includes leverage);</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the investor made a $100,000 (1% of the program&#146;s total capital) investment;</font></p> </td> </tr></table>
</div>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the investor&#146;s allocable 1% share of the program&#146;s basis (i.e., purchase price) in the property is $100,000;</font></p> </td> </tr></table>
</div>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(5)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the program has a full taxable year of 12 months; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(6)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the mid-year convention is used, which has the effect of adding another year to the 7-year cost recovery period.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>The rules relating to the alternative minimum tax for corporations are different from those discussed above. All prospective limited partners contemplating purchasing our units are urged to seek advice based on their particular circumstances from an independent tax advisor as to the likelihood of them incurring or increasing any alternative minimum tax liability because of an investment in us, and any changes in the law relating to the alternative minimum tax since the date of this prospectus.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p66a"></a>Profit Motive, IRS Anti-Abuse Rule and Judicial Doctrines Limitations on Deductions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your ability to deduct your share of our tax losses could be lost if we lack the appropriate profit motive. There is a presumption under &sect;183 of the Code that an activity is engaged in for profit if, in any three of five consecutive taxable years, the gross income derived from the activity exceeds the deductions attributable to the activity. Thus, if we fail to show a profit in at least three out of five consecutive years this presumption will not be available and the possibility that the IRS could successfully challenge your share of our tax losses would be substantially increased. The fact that the possibility of ultimately obtaining profits is uncertain, standing alone, does not appear to be sufficient grounds for the denial of losses.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, if a principal purpose of a partnership is to reduce substantially its partners&#146; federal income tax liability in a manner that is inconsistent with the intent of the partnership rules of the Code, based on all the facts and circumstances, the IRS is authorized under Treas. Reg. &sect;1.701-2, which we refer to as the &#147;IRS anti-abuse rule,&#148; to remedy the abuse. Our special counsel considered the IRS anti-abuse rule, as well as the possible application to us and our intended activities of potentially relevant judicial doctrines, including the step transaction, business purpose, economic substance, substance over form, and sham transaction doctrines, which, if applicable to us, would deny or limit our tax deductions and tax losses. Under these judicial doctrines, for example, tax deductions and losses from a transaction or investment generally will be disallowed if the transaction or
investment has no economic substance apart from tax benefits. Special counsel, however, has expressed the opinion that we will possess the requisite profit motive under &sect;183 of the Code, and the IRS anti-abuse rule in Treas. Reg. &sect;1.701-2 and the potentially relevant judicial doctrines listed above will not have a material adverse effect on the tax consequences of an investment in us by a typical limited partner as described in special counsel&#146;s opinions. In this regard, special counsel&#146;s opinions are based in part on:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our general partner&#146;s representation that our principal purpose is to conduct our business as described in this prospectus on a profitable basis to you and our other limited partners, apart from tax benefits; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the abilities and experience of our general partner&#146;s management. See the &#147;Management&#148; section of this prospectus and &#147;Appendix B &#150; Prior Performance Tables,&#148; to this prospectus.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p66b"></a>Interest and Penalties</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Taxpayers must pay interest on underpayments of federal income taxes and the Code contains various penalties, including a penalty under &sect;6662 of the Code equal to 20% of the amount of a substantial understatement of federal income tax liability. There is a substantial understatement of federal income taxes by a noncorporate taxpayer if the correct income tax, as finally determined, exceeds the income tax  actually shown on his or her tax return by the greater of 10% of the correct tax or $5,000. A noncorporate taxpayer may avoid this penalty if the understatement was not attributable to a &#147;tax shelter,&#148; as that term is defined below, and there is or was substantial authority for the taxpayer&#146;s tax treatment of the item that caused the understatement, or if the relevant facts were adequately disclosed on the taxpayer&#146;s tax return and the taxpayer had a reasonable basis for the tax
treatment of that item. However, in the case of an understatement that is attributable to a &#147;tax shelter,&#148; as that term is defined below, which may include us for this purpose, the penalty may be avoided only if there was reasonable cause for the underpayment and the taxpayer acted in good faith, or there is or was substantial authority for the taxpayer&#146;s treatment of the item and the taxpayer reasonably believed that his or her tax treatment of the item was more likely than not the proper treatment. For purposes of this penalty, the term &#147;tax shelter&#148; includes a partnership if a &#147;significant&#148; purpose of the partnership is the avoidance or evasion of federal income tax. In this regard, because the IRS has not explained what a &#147;significant&#148; purpose of avoiding or evading federal income taxes means, our special counsel cannot express an opinion as to whether we are a &#147;tax shelter&#148; as defined by the Code for purposes of this
penalty.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, there is a 20% penalty under &sect;6662A of the Code for a reportable transaction understatement of federal income taxes on a taxpayer&#146;s personal federal income tax return for any tax year. This penalty is increased from 20% to 30%, and a &#147;reasonable cause&#148; exception to the penalty is not available, if the taxpayer fails to properly disclose his participation in a reportable transaction to the IRS, whether or not there actually is an understatement of federal taxes on the taxpayer&#146;s return with respect to the reportable transaction. A reportable transaction understatement generally is the amount of the increase (if any) in taxable income resulting from the proper tax treatment of a tax item instead of the taxpayer&#146;s treatment of the tax item on the taxpayer&#146;s tax return, multiplied by the highest applicable income tax rate. A tax item is subject to these rules if it
is attributable to:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any listed transaction (a transaction is a listed transaction if it is the same as, or substantially similar to, a transaction that the IRS has publicly determined is a tax avoidance transaction); and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any of four other types of reportable transactions, if a &#147;significant&#148; purpose of the transaction is federal income tax avoidance or evasion. As discussed above, because of a lack of clear legal authorities, special counsel is unable to render an opinion as to whether or not we would be deemed to have a significant purpose of tax avoidance.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>One of the four types of reportable transactions noted above that are in addition to listed transactions, is a &#147;loss transaction,&#148; if a significant purpose of the transaction is federal income tax avoidance or evasion. Under Treas. Reg. &sect;1.6011-4, a loss transaction, subject to certain exceptions, is any investment resulting in a partnership or any noncorporate partner of a partnership claiming:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a loss under &sect;165 of the Code of at least $2 million in any single taxable year; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>$4 million in aggregate &sect;165 losses in the taxable year that the investment is entered into and the five succeeding taxable years combined.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>For this purpose, a &sect;165 loss includes certain amounts deductible under any provision of the Code that treats a transaction as a sale or other disposition or otherwise results in a deduction under &sect;165. Losses under &sect;165 from fire, storm or other casualty, theft or a compulsory or involuntary conversion are not taken into account in determining whether a transaction is a loss transaction. With respect to our intended activities, under IRS rulings a loss under &sect;165 from the sale or exchange of our equipment, leases or secured loans would not be taken into account in determining whether we are a loss transaction type of reportable transaction if the asset we sold at a loss had not been separated from any portion of the income it generated and the basis of the asset (for purposes of determining the loss) was a qualifying basis. In this regard, our basis in our equipment, leases and secured
loans (less adjustments for any allowable depreciation, amortization, or casualty loss) will be a qualifying basis if it is equal to, and is determined solely by reference to, the amount paid in cash by us for the asset. However, because we intend to securitize a significant portion of our equipment portfolio, any losses from the eventual sale of our equipment assets may not qualify for this exclusion from &sect;165 losses for purposes of the reportable transaction rules if the securitization is treated by the IRS for this purpose as separating from a portion of the income they generated, as discussed above. Generally, an amount we paid in cash would not be disregarded merely because we issued a debt instrument to obtain the cash. However, if we issued a debt instrument to the person (or a related party) who sold the asset to us or assumed a debt instrument (or took an asset subject to a debt instrument) issued by the person (or a related party) who sold the asset to us, we would be
treated as having paid cash for the asset only if the debt instrument was secured by the asset and all amounts due under the debt instrument were paid in cash no later than the time we sold the asset for which the loss was claimed.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Depending primarily on the dollar amount we have invested in our equipment portfolio (including the amounts of our borrowings and securitizations), the types of equipment investments and the sales or other dispositions we make of our equipment portfolio, it is possible (although not anticipated by us) that we could realize a &sect;165 loss, or aggregate &sect;165 losses, that would meet one or both of the dollar amount thresholds described above. Becoming a reportable transaction would not, by itself, mean that our tax treatment of our activities was improper or that there was a reportable transaction understatement of our taxable income or of the federal income taxes owed by you or our other limited partners on our taxable income. It would, however, increase the likelihood that the IRS would audit our annual information income tax returns. See the &#147;Risk Factors &#150; An IRS Audit of Our Annual Federal
Information Tax Return May Result in Adjustments to, or An Audit of, Your Personal Income Tax Returns,&#148; section  of this prospectus. In each taxable year, if any, in which we determined we were a reportable transaction, we would be required to file an information return with the IRS. In addition, each material advisor to a reportable transaction, which would include our general partner if we ever determine that we are, or are reasonably likely to become, a reportable transaction, must maintain a list that identifies you and our other investors, and provides any other information required by the IRS concerning our limited partners&#146; investments in us. No filing by you and our other limited partners would be required unless your allocable share of our &sect;165 losses separately met either the $2 million or the $4 million threshold amounts described above, or we become a reportable transaction for some reason other than &sect;165 losses and you were deemed under the Code and
the Treasury Regulations to have participated in us as a reportable transaction. Again, however, merely disclosing participation in a reportable transaction to the IRS when required to do so has no effect on the legal determination of whether any tax position we have taken is proper or improper. For individuals there is a $10,000 penalty for failing to disclose participation in a reportable transaction (other than a listed transaction for which the penalties are much greater) when required to do so, even if it is ultimately found by the IRS or the courts that there was no understatement of federal taxes with respect to the reportable transaction.</font></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p68a"></a>State
  and Local Taxation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your share of our taxable income or loss generally must be included in determining your reportable income for state or local tax purposes in the jurisdiction where you reside, and other states in which we do business may require you and our other limited partners to file state income tax returns and may impose taxes on your pro rata share of our income derived from that state. In addition, we may be required to withhold state and local taxes on your share of our income or assets, regardless of whether we make cash distributions to you. Any tax losses generated by our operations in one state may not be available to offset income from our operations in other states. To the extent that you pay tax to a state by virtue of our operations within that state, you may be entitled to a deduction or credit against tax owed to your state of residence with respect to the same income. Your payment of these state and local
taxes may be deductible by you for regular federal income tax purposes if you itemize your deductions (which will be offset  to the extent of any refunds you receive of those taxes that you deducted in a prior year), but not for alternative minimum tax purposes. See &#147;&#150; Alternative Minimum Tax,&#148; above.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>Your personal federal, state and local income tax returns are your responsibility. It is not practical for our special counsel to evaluate the many different state and local tax laws that may affect you and our other limited partners as a result of our doing business in those states and localities, and our special counsel&#146;s tax opinion letter does not include any opinion with respect to your potential liability for state and local taxes or tax return filing requirements. You are urged to seek advice based on your particular circumstances from an independent tax advisor to determine the effect state and local taxes, including gift and death taxes as well as income taxes and tax return filing requirements, may have on you in connection with this investment.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p68b"></a>Social Security Benefits and Self-Employment Tax</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As a limited partner, your share of our income or loss will not be subject to self-employment tax. In addition, you will not earn any increased benefits under the Social Security Act by investing in us and if you are currently receiving Social Security benefits, your share of our taxable income will not be taken into account in determining any reduction in your Social Security benefits because of &#147;excess earnings.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p68c"></a>Estate and Gift Taxation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>There is no federal tax on lifetime or testamentary transfers of property between spouses. The gift tax annual exclusion amount is $12,000 per donee in 2006, which will be adjusted in subsequent years for inflation. Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (the &#147;2001 Tax Act&#148;), the maximum estate and gift tax rate of 46% in 2006 will be reduced to 45% from 2007 through 2009. Estates of $2.0 million or less in 2006, 2007 and 2008, which increases to estates of $3.5 million or less in 2009, are not subject to federal estate tax to the extent those exemption amounts (i.e., unified credit equivalents) were not previously used, in whole or in part, by the decedent to reduce federal gift taxes on any lifetime gifts in excess of the applicable annual exclusion amount for gifts. Under the 2001 Tax Act, the federal estate tax will be repealed in 2010, and the maximum gift tax rate
in 2010 will be 35%. In 2011, however, the federal estate and gift taxes are scheduled to be reinstated under the rules in effect before the 2001 Tax Act was enacted.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p68d"></a>Federal Tax Treatment of Foreign Investors</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our income generally will be subject to U.S. taxation in the hands of foreign investors, and foreign investors may be required to file a U.S. federal income tax return to report their respective shares of our income, gains, losses, and deductions. Additionally, we are required to withhold tax on each foreign investor&#146;s share of our income, whether or not any cash distributions are made. We will deduct any amount required to be withheld from distributions otherwise payable to the foreign investor, and the foreign investor will be liable to repay us for any withholdings in excess of the distributions to which he or she is otherwise entitled. </font><i><font size=2>Foreign investors are urged to seek advice based on their particular circumstances from an independent tax advisor regarding the applicability of these rules and the other tax consequences of an investment in us.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p68e"></a>Federal Taxation of Employee Benefit Plans and Other Tax-Exempt Organizations</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Employee benefit plans, such as qualified pension and profit sharing plans, Keogh plans and individual retirement accounts (&#147;IRAs&#148;), generally are exempt from federal income tax. However, any unrelated business taxable income (&#147;UBTI&#148;) received by an otherwise tax-exempt entity, plan or trust that exceeds $1,000 in any taxable year is subject to an unrelated business income tax. Other charitable and tax-exempt organizations in addition to those listed above, may also subject to tax on UBTI. If a tax-exempt entity purchases our units, most of its share of our net income, if any, in a given year will be UBTI. In addition, if a charitable remainder trust has any UBTI, then all of its otherwise non-taxable income will be subject to tax. </font><i><font size=2>We urge tax-exempt entities considering the purchase of our units to seek advice based on their particular circumstances from an
independent tax advisor regarding the tax consequences to them of investing in us, including the likelihood of their incurring or increasing any UBTI.</font></i></p>


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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p69a"></a>Changes
  in the Law</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your investment in us may be affected by changes in the tax laws. For example, in 2003 the top four federal income tax brackets for individuals were reduced through December 31, 2010, including reducing the top bracket to 35% from 38.6%. The lower federal income tax rates will reduce to some degree the amount of taxes you can save by virtue of your share of our deductions and losses in any taxable year. On the other hand, the lower federal income tax rates also will reduce the amount of federal income tax liability incurred by you on your share of our net income in any taxable year. However, the federal income tax brackets discussed above may be changed again, even before 2011, and other changes in the tax laws could be made that would have an adverse effect on your anticipated tax benefits from an investment in us.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>You are urged to seek advice based on your particular circumstances from an independent tax advisor with respect to the impact of recent legislation on your investment in us and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in us.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p69b"></a>INVESTMENT BY QUALIFIED PLANS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p69c"></a>Fiduciaries under ERISA</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Under the federal law commonly known as ERISA, fiduciaries of qualified plans must act solely for the benefit of the plan&#146;s participants and beneficiaries. A fiduciary must:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>perform its duties with the skill, prudence and diligence of a prudent person;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>diversify the plan&#146;s investments so as to minimize the risk of large losses; and</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>act in accordance with the plan&#146;s governing documents.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Fiduciaries include anyone who exercises any control over the management or the funds or other property of the plan. In addition, a plan participant who exercises control over his or her individual account in the qualified plan under a self-directed investment arrangement will generally be held responsible for the consequences of his or her investment decisions. Also, some qualified plans of sole proprietorships, partnerships and closely-held corporations are generally not subject to ERISA&#146;s fiduciary duty rules, although they, as well as IRAs and self-directed accounts, are subject to the IRS&#146;s prohibited transaction rules, which are discussed below. IRAs generally are not subject to ERISA&#146;s fiduciary duty rules.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>We urge each potential investor in us who is subject to ERISA&#146;s fiduciary duty rules with respect to a qualified plan to consider those rules in the context of the particular circumstances of the qualified plan before making an investment in us.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p69d"></a>Prohibited Transactions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>ERISA and the Code prohibit qualified plans and IRAs from engaging in certain transactions involving assets of the qualified plan or IRA, which are referred to as &#147;prohibited transactions,&#148; with certain parties, which are referred to as &#147;disqualified persons.&#148;  Disqualified persons include:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>fiduciaries of the qualified plan or IRA;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>officers, directors and certain shareholders and other owners of the company sponsoring the qualified plan; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>persons and legal entities sharing certain family or ownership relationships with other disqualified persons.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, the beneficiary of an IRA is generally considered to be a disqualified person for purposes of the prohibited transaction rules. Types of prohibited transactions include:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>direct or indirect transfers of a qualified plan&#146;s or IRA&#146;s assets to a disqualified person;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the use of a qualified plan&#146;s or IRA&#146;s assets by a fiduciary for his or her personal benefit; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a fiduciary receiving cash or other consideration for his or her own benefit from a third-party in connection with a transaction involving the assets of the qualified plan or the IRA.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Under ERISA, a disqualified person that engages in a prohibited transaction must return any profits to the plan and pay back any losses to the plan. Also, the Code imposes excise taxes on a disqualified person that engages in a prohibited transaction with a qualified plan or IRA. These prohibited transactions generally must be undone by the disqualified person to avoid additional penalties. In addition, if a taxpayer engages in a prohibited transaction with an IRA in which he or she is a beneficiary, the IRA will cease being an IRA and all of its assets will be treated as if they had been distributed to the taxpayer in the year in which the prohibited transaction occurred.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Subject to the rules discussed below, in order to avoid the occurrence of a prohibited transaction under the Code or ERISA, our units may not be purchased by a qualified plan or an IRA with funds or other assets for which we or any of our affiliates are fiduciaries.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p70a"></a>Plan Assets</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In some circumstances, ERISA applies a look-through rule under which the assets of an entity in which a qualified plan or IRA has invested are deemed to be the assets of the qualified plan or the IRA itself. If our assets were determined to be plan assets, then fiduciaries of the qualified plans and IRAs that purchased our units might be subject to liability for actions that we take. In addition, some of the transactions described in this prospectus in which we might engage, including transactions with our affiliates, may be prohibited transactions, even if the original purchase of our units by the plan or IRA was not a prohibited transaction. Moreover, fiduciaries of qualified plans or IRAs subject to ERISA&#146;s fiduciary duty rules might be deemed to have improperly delegated their fiduciary responsibilities to us by investing in us. ERISA, however, exempts certain investments from the look-through rule.
Under the Department of Labor&#146;s current regulations, our assets will not be treated as plan assets of our qualified plan or IRA limited partners if:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our units are publicly offered, which means that our units must be &#147;freely transferable,&#148; as that term is defined by ERISA;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>less than 25% of our units are owned by qualified plans, IRAs, and certain other employee benefit plans; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>we are an operating company.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We cannot be certain that our units will be deemed to be freely transferable, or that we will be deemed to be an operating company, because those issues involve factual determinations. Therefore, we will rely on the &#147;less than 25%&#148; ownership exemption, and we will ensure that qualified plans, IRAs, and certain other employee benefit plan investors at all times own less than 25% of the total number of our outstanding units. In making this determination, we will, as provided in the Department of Labor&#146;s regulations, disregard the value of any units held by our general partner, any person who provides investment advice for a fee with respect to our assets, and any affiliate of those persons.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p70b"></a>Other ERISA Considerations</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition to the considerations described above in connection with the &#147;plan asset&#148; issue, a fiduciary&#146;s decision to cause a qualified plan or IRA to purchase our units should involve, among other factors, considerations that include whether:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the purchase is prudent in light of the illiquid nature of our units and potential minimum required distributions from the plan or IRA, see the &#147;Risk Factors &#150; Your Ability to Dispose of Your Investment in Us Will Be Limited&#148; section of this prospectus;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the investment will provide sufficient cash distributions in light of the qualified plan&#146;s likely required benefit payments and other needs for liquidity;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the evaluation of the investment has properly taken into account the potential costs of determining and paying any amounts of federal income tax that may be owed on unrelated business taxable income derived from us; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the fair market value of our units will be sufficiently ascertainable, and with sufficient frequency, to enable the qualified plan or IRA to value its assets in accordance with the rules and policies applicable to the qualified plan or IRA.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p71a"></a>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF FINANCIAL CONDITION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have not yet begun operations and will depend on the proceeds of this offering of our units to carry on our proposed activities. We intend to use the offering proceeds, after paying dealer-manager fees, sales commissions, the bona fide accountable due diligence reimbursements, the organization and offering expense allowance and other permitted fees and establishing a working capital reserve, to purchase and lease equipment, finance secured loans and purchase portfolios of equipment subject to existing leases. We will seek to finance approximately 80% of the purchase price of our equipment by borrowing funds through warehouse loan and CP conduit facilities as well as through term note securitizations. However, as of the date of this prospectus we have no arrangements with, or commitments from, any lender to provide financing to us. To the extent that our offering proceeds are less than the maximum, or we are
unable to obtain warehouse or CP conduit financing or engage in term note securitization financings, our ability to diversify our investments will be reduced, which could reduce the return on your investment in us.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Initially, we intend to establish working capital reserves of approximately 1% of our offering proceeds, which we believe will be sufficient to satisfy our liquidity requirements. However, our operating costs will adversely affect our liquidity and to the extent that our working capital reserves are insufficient to satisfy our cash requirements, we will be required to obtain additional funds through third-party financing, which may not be available on terms acceptable to us or at the times when we need it.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Fluctuations in prevailing interest rates will affect us, because the cost of capital as reflected in interest rates is a significant factor in determining the market rate for our equipment leases and secured loans and the cost of the funds we intend to borrow to increase the size of our portfolio. Higher interest rates will:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>increase our borrowing costs;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>reduce our yield on leveraged investments;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>reduce the amount of financing we may be able to obtain because of a reduction in value of our fixed-rate equipment leases and secured loans; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>possibly, reduce the desirability of using leverage to increase the size of our portfolio.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Interest rate changes generally will result in corresponding changes in rates on new equipment leases and secured loans as well as variable rate financing or new financing. Except as discussed above, interest rate fluctuations would generally have little or no effect on existing equipment leases as their rates would generally be fixed.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We expect that our warehouse and CP conduit borrowings will have variable interest rates and that some or all of any term note securitizations we may obtain will also have variable rates. Because warehouse debt is short-term, we do not believe it carries material interest rate risk. However, we will seek to manage interest rate risk in any CP conduit or variable rate term note securitization by engaging in hedging transactions that would have the effect of fixing our interest rate on those obligations.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p71b"></a>SUMMARY OF OUR PARTNERSHIP AGREEMENT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following is a brief summary of the material provisions of our amended and restated agreement of limited partnership that are not covered elsewhere in this prospectus. The partnership agreement sets out the terms and conditions on which we will conduct our business and affairs, including the rights and obligations of you and our other limited partners. A copy of our partnership agreement is included as Appendix A to this prospectus. You should study the entire partnership agreement carefully before purchasing our units.</font></p>

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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p72a"></a>General</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We are a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act with LEAF Asset Management, LLC as our general partner. Our registered office and principal place of business in Delaware is 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801. Our general partner&#146;s principal place of business is 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103. We may change our principal place of business by written notice to you. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our term began when we filed a certificate of limited partnership with the Delaware Department of State in May 2006. Under our partnership agreement, we will terminate at midnight on December 31, 2031, or earlier if a dissolution event occurs as described in &#147;&#150; Events Causing Dissolution,&#148; below. However, our general partner anticipates that our actual term before we cease operations as a limited partnership and liquidate our assets will be much shorter, approximately 9 years after the date of this prospectus. See the &#147;Risk Factors &#150; Your Ability to Dispose of Your Investment in Us Will Be Limited,&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p72b"></a>Capital
  Contributions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner contributed $1,000 in cash as its capital contribution to us in exchange for a 1% interest in our income, losses and cash distributions. Each limited partner will contribute $100 to our capital for each unit purchased, other than the original limited partner and the limited partners (including our general partner and its affiliates) who purchase units with the price discounts described in the &#147;Plan of Distribution&#148; section of this prospectus. You and our other limited partners are not obligated to make additional capital contributions to us, except as described below under &#147;&#150; Limited Liability of Limited Partners.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p72c"></a>Powers
  of our General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Except as otherwise specifically provided in our partnership agreement, our general partner will have complete and exclusive discretion in the management of our business. You will not be permitted to participate in our management. Except to the extent limited by Delaware law, our general partner may delegate any or all of its duties under the partnership agreement to another person, including any of its affiliates. The partnership agreement designates our general partner as our tax matters partner and authorizes and directs it to represent us and you and our other limited partners in connection with all examinations of our affairs by tax authorities and any resulting administrative or judicial proceedings, and to expend our funds in doing so.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p72d"></a>Liability
  of Our General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner will be liable for all of our general obligations to the extent we do not pay them. However, our general partner will not have any personal liability for:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>obligations that are specifically nonrecourse to us; or</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the repayment of your capital contribution.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p72e"></a>Limited
  Liability of Limited Partners</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our units are not assessable, and you will not have any personal liability for any of our obligations or liabilities. You will only be liable for our obligations and liabilities to the extent of your capital contribution and your pro rata share of our undistributed profits and other assets. However, if you participate in the management or control of our affairs, you may be deemed to be acting as a general partner and you may lose your limited liability as against third-parties who reasonably believe, in doing business with us, that you are a general partner. In addition, Delaware law provides that you may be liable to us for a distribution we make to you if, after giving effect to the distribution, our liabilities exceed the fair value of our assets.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p72f"></a>Withdrawal
  or Removal of Our General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner may not voluntarily withdraw as our general partner without:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>60 days&#146; advance written notice to you and our other limited partners;</font></p> </td> </tr></table>


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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>obtaining an opinion of counsel that the withdrawal will not cause our termination as a limited partnership or materially and adversely affect our federal tax status as a partnership; and</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">72</font></p>

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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

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    </td>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the
        selection of a substitute general partner, and the acceptance of its appointment
        as our substitute general partner by limited partners owning a majority
        of our units.</font></p>
    </td>
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</table>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our
  general partner may be removed by limited partners owning a majority of our
  units. Neither our general partner nor any of its affiliates may participate
  in any vote by our limited partners to remove our general partner as general
  partner.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p73a"></a>Consequences
  of Withdrawal or Removal of Our General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On the withdrawal or removal of our general partner, we must pay our general partner the fair market value of its partnership interest, plus or minus, as the case may be, accrued but unpaid fees owed to our general partner by us and the difference between any other amounts owed to our general partner by us and amounts owed to us by our general partner. The method of payment must be fair and protect our solvency and liquidity. The method of payment is deemed fair if:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>in a voluntary withdrawal, it provides for a non-interest bearing unsecured promissory note with principal payable only from distributions our general partner otherwise would have received; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>in an involuntary removal, it provides for a rate of interest equal to the lesser of the rate we would obtain from an unrelated bank lender for an unsecured 60-month loan or the &#147;Prime Rate&#148; of interest published in the Money Rates section of the Wall Street Journal, plus 4%, and provides for payment of principal and interest in 60 equal monthly installments.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p73b"></a>Liability
  of Withdrawn or Removed General Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>After the withdrawal or removal of our general partner as our general partner, it will remain liable for all obligations and liabilities incurred by it or by us while it was acting as our general partner and for which it was liable as our general partner. Our general partner will be free of any obligation or liability arising from our activities after the time its withdrawal or removal becomes effective.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p73c"></a>Transfer
  of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>There is no public or secondary market for our units, and we do not expect that a market will develop. You may transfer or assign your units to any person, whom we call an assignee, only if you satisfy the following conditions:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>you and the assignee sign a document satisfactory to our general partner, that:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>states your intention that the assignee is to become a substitute limited partner, if that is the case;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>shows that there is a legal transfer and binds the assignee to all of the terms and provisions of our partnership agreement; </font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>includes a representation by both you and the assignee that the assignment or transfer complies with all applicable laws, including the applicable minimum investment and investor suitability requirements under state securities laws; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the assignee pays us a fee that will not exceed $150 for our expenses.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, unless we consent, no units may be assigned:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to a minor or incompetent unless a guardian, custodian or conservator has been appointed for the person;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to any person if, in our counsel&#146;s opinion, the assignment would terminate our taxable year or adversely affect our status as a limited partnership for federal income tax purposes;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to any person if the assignment would affect our existence or qualification as a limited partnership under Delaware law or the laws of any other jurisdiction in which we conduct business;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to any person not permitted to be an assignee under applicable law, including federal and state securities laws;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>if the assignment is for less than 50 units unless the assignment is for all of your units;</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">73</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div>
<page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>if
        the assignment would result in your keeping a portion of your units that
        is less than the greater of:</font></p>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>50 units; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the minimum number of units required to be purchased under the minimum investment standards applicable under the state securities laws to your initial purchase of units;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>if, in our general partner&#146;s reasonable belief, the assignment might violate applicable law; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>if the effect of the assignment would be to cause the equity participation in us by certain benefit plan investors to equal or exceed 25% of our total outstanding units at any time.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Any attempt to assign or transfer units in violation of our partnership agreement or applicable law will be ineffective. We will recognize assignments of units as of the last day of the month in which all conditions to the assignment have been satisfied, and we will amend our partnership agreement at least quarterly to effect the substitution of substitute limited partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, our partnership agreement provides that so long as there are adverse federal income tax consequences from being treated as a publicly traded partnership, we will not permit any interest in a unit to be assigned or sold which does not meet at least one of the &#147;secondary market&#148; safe harbors set forth in the Treasury Regulations. Under these rules, for example, any transfer that would cause the total of all unit transfers or assignments in a taxable year to exceed 2% of our total capital or profits interests, excluding exempted private transfers, would be prohibited. We anticipate that the &#147;private transfers&#148; and the 2% &#147;lack of actual trading&#148; safe harbors will be the only safe harbors potentially available to you and our other limited partners. For a more detailed summary of these safe harbors, see the &#147;Federal Income Tax Consequences &#150; Partnership
Classification&#148; section of this prospectus. If we determine that a purported transfer or assignment of a unit was effected on a secondary market, we have the right to refuse to recognize the proposed sale and to take any action we deem necessary or appropriate so that the proposed sale is not in fact recognized. Also, you must provide us with all information with regard to any transfer or assignment of your units (or any proposed transfer or assignment of your units) that we deem necessary to determine whether it occurred or will occur on a secondary market.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p74a"></a>Redemption
  of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We are permitted by the partnership agreement to redeem your units on your request at any time. However, any redemption of units is in our general partner&#146;s sole discretion. For a more complete discussion of the redemption of units, you should read the &#147;Redemption of Units&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p74b"></a>Books
  and Records</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will maintain our books and records at our general partner&#146;s principal office. You will have the right to have a copy of a list of our limited partners (the &#147;Participant List&#148; described below) mailed to you for a reasonable copying charge. However, you must first certify that the list will not be:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>reproduced and sold to another party;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>used for any commercial purpose unrelated to your interest in partnership matters; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>used for an unlawful purpose.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Participant List is an alphabetical list of the names, addresses, and business telephone numbers of our limited partners along with the number of units held by each of them. The Participant List is maintained as part of our books and records, and will be updated at least quarterly to reflect changes in the information it contains.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If we or our general partner neglect or refuse to exhibit, produce, or mail a copy of the Participant List as requested, our general partner will be liable to any limited partner requesting the list for the costs, including attorneys&#146; fees, incurred by that limited partner for compelling the production of the Participant List, and for actual damages suffered by any limited partner by reason of such refusal or neglect. It is a defense that the actual purpose and reason for the request for inspection or for a copy of the Participant List is to secure the Participant List or other information for the purpose of selling the list or copies of the list, or using the list or other information for a commercial purpose other than in the interest of the applicant as a limited partner relative to our affairs. Thus, our general partner will require the limited partner requesting the Participant List to first
represent that the list is not being requested for a commercial purpose unrelated to the limited partner&#146;s interest in us. The remedies provided to our limited partners requesting copies of the Participant List are in addition to, and do not in any way limit, other remedies available to our limited partners under federal law or the laws of any state.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, you or your representative will have the right, on written request, subject to reasonable notice and at your own expense, to inspect and copy at our general partner&#146;s principal office any other partnership books and records that we maintain.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p75a"></a>Meetings
  of Limited Partners</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>There will be no annual or other periodic meetings of the limited partners. However, a meeting of our limited partners must be called by our general partner following its receipt of written request(s), either in person or by registered mail, for a meeting on any matter on which our limited partners may vote from limited partners holding 10% or more of the then outstanding units. Every request by our limited partners for a meeting must state with reasonable specificity the purpose(s) for which the meeting is to be held and the text of any matter, resolution or action proposed to be voted on by our limited partners at the meeting. Within 10 days following the receipt of the request, our general partner will give notice to all limited partners of the meeting in the manner and for a time and place as specified in our partnership agreement. In addition, our general partner may, and if so requested by our limited
partners in the manner described above, must, submit the proposed matter, resolution or action for action by consent of our limited partners, in lieu of a meeting. Also, our general partner may call meetings of our limited partners at any time. However, in lieu of a meeting, any matter that could be voted on at a meeting of our limited partners may be submitted for action by consent of our limited partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p75b"></a>Voting
  Rights of Limited Partners</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Limited partners owning a majority of our units may take action on any of the following matters without our general partner&#146;s concurrence:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an amendment of the partnership agreement, subject to certain limitations discussed in &#147;&#150; Amendment by Limited Partners Without Our General Partner&#146;s Concurrence,&#148; below;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our dissolution;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the removal of our general partner and the election of one or more substitute general partners;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the sale of all or substantially all of our assets, except in connection with securitization financings or sales in the ordinary course of liquidating our investments after the reinvestment period; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the cancellation of any contract for services to us with our general partner or its affiliates, subject to certain exceptions such as the Origination and Servicing Agreement, without penalty on 60 days notice.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner and its affiliates may not vote or consent on matters submitted to our limited partners regarding the removal of our general partner or regarding any transaction between us and our general partner or any of its affiliates. In determining the requisite percentage of units necessary to approve a matter on which our general partner or its affiliates may not vote or consent, any units owned by our general partner or its affiliates cannot be included in either the numerator or the denominator.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Limited partners who dissent from any matter approved by limited partners owning a majority of our units are bound by the vote and do not have a right to appraisal or automatic repurchase of their units.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p75c"></a>Amendment
  by Limited Partners Without Our General Partner&#146;s Concurrence</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Amendments of our partnership agreement by our limited partners without our general partner&#146;s concurrence may not allow our limited partners to take part in the control or management of our business, or contract away our general partner&#146;s fiduciary duties to our limited partners. In addition, any proposed amendment of the partnership agreement that would:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>change how our partnership agreement can be amended, will require the consent of all of our limited partners;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>alter the rights, powers, duties or obligations of our general partner, will require our general partner&#146;s consent; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>adversely affect any partner&#146;s share of our cash distributions or allocations of income or loss, other than in connection with the sale of our units in this offering, will require the consent of each partner affected by the change.</font></p> </td> </tr></table>







<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p76a"></a>Amendment
  by Our General Partner Without the Consent of the Limited Partners</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner may, without the consent of you and our other limited partners, amend our partnership agreement for the benefit or protection of you and our other limited partners, including any one or more of the following:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>adding to our general partner&#146;s duties or obligations, or surrendering any of its rights or powers;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>curing any ambiguity in, or correcting or supplementing any provision of, our partnership agreement;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>preserving our status as a limited partnership for federal income tax purposes;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>deleting or adding any provision that the SEC or any other regulatory body or official requires to be deleted or added; or</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>changing our name or the location of our principal office.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p76b"></a>Events Causing Dissolution</font></b></p>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will dissolve when any of the following events occurs:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>withdrawal or removal of our general partner if a substitute general partner has not been admitted;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our dissolution is approved on a vote of limited partners owning a majority of our units;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the sale of all or substantially all of our assets other than in connection with a financing transaction, such as a securitization;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the expiration of our term; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any other event which would cause us to dissolve under Delaware law.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p76c"></a>Liquidation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>When a dissolution event occurs, we will liquidate our investments and other assets and we will distribute the proceeds, after we pay our debts and expenses, to our partners in accordance with their percentage ownership in us. Our existence will terminate once we have paid all our debts and expenses and made final distributions to our partners. You are not guaranteed the return of, or a return on, your investment in us as a result of any of these distributions.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p76d"></a>Roll-Up
  Transactions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We may enter into a &#147;roll-up&#148; transaction only on the vote or consent of limited partners owning a majority of our units and on satisfaction of certain other conditions described below. A &#147;roll-up transaction&#148; generally is a transaction involving the acquisition, merger, conversion or consolidation of us, as a partnership, with an entity created by, or surviving, the transaction (the &#147;roll-up entity&#148;), and the issuance of securities by the roll-up entity. The term &#147;roll-up&#148; does not cover specified transactions, including our conversion into a different legal form, if there will be no significant adverse change in unit voting rights, our term, the compensation we pay our general partner and its affiliates, our investment objectives or the federal income tax consequences of owning a unit.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In order for us to enter into a proposed roll-up transaction, the additional conditions set forth below must be met.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>All of our assets must be appraised by a competent, independent expert, which our partnership agreement defines as a person with no material current or prior business or personal relationship with our general partner or its affiliates who is engaged to a substantial extent in the business of rendering appraisals and who is qualified to perform the work. If the appraisal will be included in a prospectus used to offer the securities of a roll-up entity, the appraisal must be filed with the SEC and the states as an exhibit to the registration statement for the offering. Our assets must be appraised on a consistent basis, and the appraisal must be based on an evaluation of all relevant information and indicate the value of our assets as of a date immediately prior to the announcement of the proposed roll-up transaction. The appraisal must assume an orderly liquidation of our assets over
a 12 month period. The terms of the engagement of the independent expert must clearly state that the engagement is for the benefit of us and our limited partners. A summary of the independent appraisal, indicating all material assumptions underlying the appraisal, must be included in a report to our limited partners in connection with the proposed roll-up transaction.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The sponsor of the proposed roll-up transaction must offer to our limited partners who vote &#147;no&#148; on the proposal the option of either:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>accepting the roll-up securities; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>one of the following:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>remaining as limited partners in us on the same terms and conditions as existed previously; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>receiving cash equal to the limited partner&#146;s pro rata share of the appraised value of our net assets.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We may not participate in any proposed roll-up transaction that would result in our limited partners having voting rights that are less than those provided for under our partnership agreement. If the roll-up entity is a limited partnership, the voting rights of our limited partners must correspond to the voting rights provided for in our partnership agreement to the greatest extent possible.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We may not participate in any proposed roll-up transaction that includes provisions that would operate to materially impede or frustrate the accumulation of shares by any purchaser of the securities of the roll-up entity (except to the minimum extent necessary to preserve the tax status of the roll-up entity). We may not participate in any proposed roll-up transaction that would limit the ability of a limited partner to exercise the voting rights of that limited partner&#146;s securities of the roll-up entity on the basis of the number of our units held by that limited partner.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We may not participate in any proposed roll-up transaction in which our limited partners&#146; rights of access to the records of the roll-up entity would be less than those provided for under our partnership agreement.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We may not participate in any proposed roll-up transaction in which any of the costs of the transaction would be borne by us if the roll-up transaction is not approved by our limited partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p77a"></a>REDEMPTION
  OF UNITS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p77b"></a>Redemption
  Price of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your units are illiquid and can be redeemed by us only if the redemption provisions in our partnership agreement, which are summarized below, are met. If we do redeem your units, which is in our general partner&#146;s sole discretion, the redemption price for your units will depend on when you present your units for redemption. If you present your units for redemption:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>during the offering period, the redemption price for one unit will equal the net asset value at that time of one unit as determined by our general partner;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>during the five year portion of the reinvestment period after the final closing date of this offering, the redemption price for one unit will equal 100% of your unreturned investment for one unit, plus 4% for each full twelve-month period in which you were a limited partner, less the sum of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>100% of previous distributions made to you on account of one unit; and </font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>100% of any previous allocations to you of investment tax credit amounts for one unit; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>during the liquidation period, the redemption price for one unit will equal the equity for one unit as set forth on our balance sheet in our most recent Form 10-Q filed before your redemption request, less 100% of any distributions made to you on account of one unit since the date of the balance sheet.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
  redemption price for your units is unlikely to reflect the fair market value
  of your units at the time of redemption, particularly during the liquidation
  period. You may realize a greater return by holding on to your units for the
  duration of our term.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p78a"></a>Procedure
  for Redemption of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>To redeem your units, you must send us a written request in a form satisfactory to us. The request must be signed by all of the owners of the units. We will consider redemption requests to have been made on the earlier of the date the request is personally delivered with receipt acknowledged; or mailed by certified mail, return receipt requested, postage prepaid, at our general partner&#146;s address set forth in this prospectus. Within 30 days after we receive your redemption request, we will accept or deny your redemption request.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p78b"></a>Restrictions
  on Redemption of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have no obligation to redeem your units, and will do so only in our general partner&#146;s sole discretion. Beginning when you are admitted as a limited partner and at any time thereafter, you may request that we redeem your units. In any calendar year, we will not redeem any units that, in the aggregate, together with all other transfers of units made to date during the calendar year, subject to certain exceptions, exceed 2% of our total capital or profits interests, or that we reasonably believe might exceed 2% of our total capital or profits interests, as of the last day of the calendar year. This limitation is required so that we will not be treated as a publicly traded partnership for tax purposes. If we believe that the 2% limitation may be reached before year-end, we may redeem only a portion, or none, of the units for which redemption is sought, and we may decide to allocate, at the date of request
or later in the year, redemption capacity based on the financial hardship of the limited partners requesting redemption.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, we will not redeem units if, in our general partner&#146; s sole discretion, we do not have sufficient cash on hand. We intend to reinvest a substantial portion of our revenues during the reinvestment period, which begins with the initial closing date in this offering and ends five years after the final closing date of this offering. Also, we will not be redeem units if the redemption would impair our capital or our operations, which our general partner will decide in its sole discretion. Cash used to redeem units will reduce our cash available for making investments, reinvestments and distributions to our remaining limited partners. If we receive requests to redeem more units than there are funds available to redeem, we expect to give priority:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>first, to hardship redemptions (e.g., requests arising from death, major medical expense, family emergency, disability, a material loss of family income, etc.);</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>second, to provide liquidity for IRAs or qualified plans to meet required distributions; and</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>third, to all other redemption requests.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p78c"></a>Consequences
  of Redemption of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If we redeem all of your units, then you will no longer be a limited partner and you will have no interest in us. However, a redemption of all of your units will not release you from liability to us to the extent of any distributions, including any return of or on your investment, made to you in violation of Delaware law. Also, any gain realized by you on the redemption of your units, if you held them as a capital asset and held them for more than one year, generally will be a capital gain, but your gain may be treated as ordinary income to the extent of your share of:</font></p>



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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>depreciation recapture on our equipment leased to others under operating leases;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our substantially appreciated inventory items; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our unrealized receivables.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>See the &#147;Federal Income Tax Consequences &#150; Sale or Other Disposition of Units&#148; section of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You are urged to seek advice based on your particular circumstances from an independent tax advisor with respect to the tax consequences to you of a redemption of your units.</font></p>
<p align="center"><Font size="2" face="serif">78</font></p>

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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p79a"></a>REPORTS
  TO LIMITED PARTNERS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p79b"></a>Tax
  Reports</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>By March 15 of each year, we will send you a statement of your share of our income, gains, losses, deductions and credits, if any, for the previous calendar year just ended to enable you to prepare your income tax returns.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p79"></a>Annual
  Reports</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Within 120 days after the end of each year, we will send you an annual report that will include:</font></p>



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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Our audited financial statements for the fiscal year, including a balance sheet and related statements of operations, cash flows and changes in partners&#146; equity, accompanied by an auditor&#146;s report containing an opinion of our accountants.</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>A breakdown, by source, of distributions made during the year to you and to our general partner.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>A status report with respect to each item of equipment that individually represents at least 10% of the aggregate purchase price of our investments at the end of the year, including information relevant to the condition and use of the equipment.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>A detailed statement of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the services rendered and compensation paid, and any amounts reimbursed, to our general partner and its affiliates; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a summary of the terms and conditions of any contract with our general partner or its affiliates that was not filed as an exhibit to the registration statement of which this prospectus forms a part.</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The allocation prepared by our general partner of the costs and expenses reimbursed by us to our general partner and its affiliates will be included within the scope of our annual audit by independent public accountants.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Until all amounts contributed to our capital by you and our other limited partners have been invested or committed to investment and reserves, used to pay permitted fees or returned to you and our other limited partners in accordance with our partnership agreement, information regarding investments made by us during the fiscal year.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2><a name="p79d"></a>Quarterly
  Reports</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Within 60 days after the end of each of the first three quarters in each year, we will send you an interim report for the quarter that will include:</font></p>



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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Either:</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our unaudited financial statements for the quarter, including a balance sheet and related statements of operations, cash flows and changes in partners&#146; equity; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>if our units are registered under Section 12(g) of the Securities Exchange Act of 1934, a copy of our Quarterly Report on Form 10-Q filed by us with the SEC.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>A detailed statement of:</font></p> </td> </tr></table>
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        <td width="10%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the services rendered and compensation paid, and any expenses reimbursed, to our general partner or its affiliates, and</font></p> </td> </tr></table>
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        <td width="10%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a summary of the terms and conditions of any contract with our general partner or its affiliates that was not filed as an exhibit to the registration statement of which this prospectus forms a part.</font></p> </td> </tr></table>
</div>






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<p align="center"><Font size="2" face="serif">79</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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    </td>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p>
    </td>
    <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Until
        all amounts contributed to our capital by you and our other limited partners
        have been invested or committed to investment and reserves, used to pay
        permitted fees or returned to you and our other limited partners in accordance
        with our partnership agreement, information regarding investments made
        by us during the quarter.</font></p>
    </td>
  </tr>
</table>



<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p80a"></a>Reports
  to State Securities Laws Administrators</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner will submit to all state securities law administrators, including Arizona, California and Ohio, any information concerning us that the administrators require, including, but not limited to:</font></p>



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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>reports and statements required by our partnership agreement to be distributed to you and our other limited partners; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>reports required to be filed with the administrators under the applicable state securities laws, regulations or policies, which may include copies of our SEC filings under the Securities Exchange Act of 1934.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p80b"></a>PLAN
  OF DISTRIBUTION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p80c"></a>Commissions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our units will be offered on a &#147;best efforts&#148; basis by Chadwick Securities, which is an affiliate of our general partner, acting as dealer-manager, and by other selected registered broker/dealers that are members of the NASD, acting as selling dealers. Chadwick Securities was formed for the purpose of serving as dealer-manager of partnerships sponsored by its affiliates and became an NASD member firm in 2005. This is the first offering in which Chadwick Securities has served as dealer-manager. As of the date of this prospectus, however, the president, other officers and other associated persons of Chadwick Securities have experience with a broker/dealer serving as the dealer-manager of limited partnership offerings. All of these associated of Chadwick Securities were previously associated with Anthem Securities, Inc. when Anthem Securities served as the dealer-manager of LEAF Financial&#146;s two
previous equipment leasing and financing programs, and has served as the dealer-manager of other limited partnership offerings sponsored by other indirect subsidiaries of Resource America or its former subsidiary, Atlas America, Inc.. In this regard, Atlas America was a subsidiary of Resource America until 2005, when Resource America completed a spin-off of Atlas America, Inc. and its subsidiaries, which included Anthem Securities.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The dealer-manager will manage and oversee the offering of our units as described above. Best efforts generally means that the dealer-manager and selling dealers will not guarantee that a certain number of units will be sold in this offering. Although the dealer-manager may participate in this offering on the same basis as the selling dealers, it does not anticipate that it will directly sell a material number of units. No selling dealers have been identified as of the date of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Units also may be sold by the officers and directors of our general partner in those states where they are licensed to sell our units or are exempt from such licensing requirements. All offers and sales of units by our general partner&#146;s officers and directors will be made under the SEC safe harbor from broker/dealer registration provided by SEC Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the &#147;Act&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We will not pay referral or similar fees to any accountants, attorneys or other persons in connection with the distribution of our units. Subject to the exceptions described below, the dealer-manager will receive on each unit sold:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a 3% dealer-manager fee;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a 7% sales commission; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an up to .5% reimbursement of the selling dealers&#146; bona fide accountable due diligence expenses.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>All of the sales commissions will be reallowed to the selling dealers except sales commissions payable for units sold directly by the dealer-manager, and all of the up to .5% reimbursement of the selling dealers&#146; bona fide accountable due diligence expenses will be reallowed by the dealer-manager to the selling dealers. With respect to the up to .5% reimbursement of a selling dealer&#146;s bona fide accountable due diligence expenses, any bill presented by a selling dealer to Chadwick Securities for reimbursement of costs associated with the selling dealer&#146;s due diligence activities must be for actual costs, including overhead, incurred by the selling dealer and may not include a profit margin. It is the responsibility of our general partner and Chadwick Securities to ensure compliance with the above guideline. If the selling dealer provides Chadwick Securities an itemized bill for actual due
diligence expenses that is in excess of .5%, then the excess over .5% will not be included within the NASD&#146;s 10% underwriting compensation guideline, but instead will be included within the NASD&#146;s 4.5% organization and offering costs guideline under NASD Conduct Rule 2810. </font></p>


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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Out of its 3% dealer-manager fee, the dealer-manager may pay selling dealers a marketing fee for their assistance in marketing this offering and coordinating their sales efforts with those of the dealer-manager in an amount equal to up to 1% of the purchase price of each unit sold by them. The dealer-manager also will have the right, but not the obligation, to use a portion of its dealer-manager fee to provide the selling dealers with, or reimburse them for, permissible non-cash compensation under NASD Conduct Rule 2810, which includes the following:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an accountable reimbursement for certain expenses related to training and education meetings for associated persons of the selling dealers;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>gifts that do not exceed $100 per person per year, and are not preconditioned on achievement of a sales target;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an occasional meal, a ticket to a sporting event or the theater, or comparable entertainment that is neither so frequent nor so extensive as to raise any question of propriety, and is not preconditioned on achievement of a sales target; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>contributions to a non-cash compensation arrangement between a selling dealer and its associated persons, provided that neither we, our general partner nor the dealer-manager may directly or indirectly participate in the selling dealer&#146;s organization of a permissible non-cash compensation arrangement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The dealer-manager is responsible for ensuring that all non-cash compensation arrangements comply with NASD Conduct Rule 2810.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our general partner also is using the services of wholesalers who are employed by it or its affiliates and are registered through Chadwick Securities. These individuals receive salaries and expense reimbursements in connection with this offering and also will receive commissions for subscriptions obtained through their efforts, which will be paid from the dealer-manager fee. The dealer-manager will retain the remainder of the dealer-manager fee that is not reallowed to the wholesalers, paid to the selling dealers as a marketing fee, or provided or reimbursed to the selling dealers as permissible non-cash compensation. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This offering will be made in compliance with NASD Conduct Rule 2810 and all compensation, including permissible non-cash compensation, paid to broker/dealers and wholesalers, regardless of the source, will be limited to 10% of our gross offering proceeds plus the up to .5% reimbursement for bona fide accountable due diligence expenses on each unit sold. Also, this offering will be made in compliance with NASD Conduct Rule 2810(b)(2)(C) and the broker/dealers and wholesalers will not execute a transaction for the purchase of units in a discretionary account without the prior written approval of the transaction by the customer. Finally, although not anticipated, if the dealer-manager assists in the transfer of units, then it will comply with NASD Conduct Rule 2810(b)(3)(D).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Subject to the following, you and our other investors will pay $100 per unit and generally will share in our income, losses, and cash distributions based on your respective number of units. However, the subscription price for:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our general partner, its officers, directors, and affiliates;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>investors who buy units through the officers and directors of our general partner;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>registered investment advisors, and clients of registered investment advisors who are paid a percentage of assets under management instead of a sales commission on the sale of our units; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the dealer-manager, selling dealers and their registered representatives and principals;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>will be reduced by an amount equal to the 7% sales commission, which will not be paid with respect to those sales. These investors who pay a reduced price for their units generally will share in our income, losses and cash distributions on the same basis as you and our other investors who pay $100 per unit. Although our general partner and its affiliates currently intend to buy not less than 10,000 units ($1 million) and may purchase up to approximately 5% of the total units sold in this offering, if greater, those units will not be applied towards the minimum offering proceeds required for us to begin operations.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>To help assure an orderly market for our units, our general partner, the dealer-manager and the selling dealers may use any and all methods as they deem appropriate to allocate units among interested investors if they anticipate that the demand for our units will exceed the available supply, provided that no changes to the dealer-manager&#146;s or the selling dealers&#146; compensation may be made. These methods may include, but will not be limited to:</font></p>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>allocations of units to selling dealers for sale to potential limited partners;</font></p> </td> </tr></table>







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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>priority acceptance of subscriptions from investors in previous partnerships sponsored by LEAF Financial, an affiliate of our general partner;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>priority treatment for investors whose subscriptions were declined in previous partnerships sponsored by LEAF Financial, an affiliate of our general partner, because the number of units available was not sufficient to accommodate their subscriptions; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any other method that may be approved by our general partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>After we receive the minimum offering proceeds and the subscription checks have cleared the banking system, the dealer-manager fee, the sales commissions, and the up to .5% reimbursement for bona fide accountable due diligence expenses will be paid to the dealer-manager and the selling dealers approximately every week until this offering closes. However, before breaking escrow and the initial closing of this offering, our general partner may advance the up to .5% reimbursement for bona fide accountable due diligence expenses to the dealer-manager and the selling dealers for units sold by them. In this regard, the up to .5% reimbursement for bona fide accountable due diligence expenses will not be paid for units sold to:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>our general partner, its officers, directors, and affiliates; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>investors who buy units through the officers and directors of our general partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p82a"></a>Indemnification</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The dealer-manager is an underwriter as that term is defined in the 1933 Act and the sales commissions and dealer-manager fees will be deemed underwriting compensation. Our general partner and the dealer-manager have agreed to indemnify each other, and it is anticipated that the dealer-manager and each selling dealer will agree to indemnify each other, against certain liabilities, including liabilities under the 1933 Act.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p82b"></a>INVESTOR
  SUITABILITY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p82c"></a>General</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our units are an illiquid asset and are not freely transferable. There is no public market in which to sell our units, and we do not expect a public market for the sale of our units to develop.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You should purchase our units only if you:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>have adequate financial means;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>do not need liquidity of your investment; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>are able to withstand the risks inherent in a long-term investment.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Our units are not an appropriate investment if you must rely on distributions from us as an important source of income. Thus, you must, at a minimum, meet the requirements described below in order to purchase our units.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We, or the selling dealers selling units on our behalf, must have reasonable grounds to believe, on the basis of information obtained from you, that an investment in our units is suitable and appropriate for you in light of your age, investment objectives, investment experience, income, financial needs and other investments, and that your net worth is sufficient to sustain the risks inherent in an investment in our units. We and the selling dealers will rely on what you tell us in your subscription agreement about your financial situation and investment objectives, and the selling dealers must maintain documents in their files disclosing the basis on which they made the suitability determination of an investment in us by the investors to whom they sold our units. Thus, it is important that you provide complete and accurate information on your subscription agreement.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>When evaluating your suitability for this investment using the standards listed below, keep in mind that net worth does not include the value of your home furnishings, personal automobiles and the equity in your home. Also, you must value the assets included in your net worth calculation at their fair market value. For fiduciary accounts, such as IRAs and HR-10, or Keogh, plans, and other benefit plans or trusts, these suitability standards must be met by the beneficiary, the IRA, plan or trust or the donor or grantor who directly or indirectly supplies the funds to purchase the units, if that donor or grantor is the fiduciary of the IRA, plan or trust. We will maintain your suitability records for a period of six years.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p83a"></a>Basic
  Investor Suitability</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You must meet our basic suitability requirements in order to purchase our units. In general, you must have either:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a net worth of at least $45,000, plus $45,000 of annual gross income; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a net worth of at least $150,000.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p83b"></a>Different
  Basic Investor Suitability for Residents of Certain States</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Residents of Arizona, California, Iowa, Kansas, Massachusetts, Michigan, Missouri, Oregon, North Carolina and Tennessee must have either of the following in order to purchase our units:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a net worth of at least $60,000, plus $60,000 of annual gross income; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a net worth of at least $225,000.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Residents of New Jersey must be accredited investors, as defined in SEC Regulation D, in order to purchase our units. In general, this means that you must meet one or more of the suitability standards set forth below.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>you are a corporation, partnership, trust, or other entity with total assets in excess of $5 million, and you were not formed for the purpose of purchasing our units;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>you have an individual &#147;net worth&#148; (the fair market value of your total assets, including home and personal property, minus your total liabilities), or joint net worth with your spouse, in excess of $1 million;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>you had an annual income in excess of $200,000, or a joint annual income with your spouse in excess of $300,000, in each of the two most recent years and reasonably expect to have the same income level in the current year; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>you are an entity (including a corporation or partnership) in which all of the equity owners individually are accredited investors as described in either the second or third bullet point set forth above, in which case each equity owner must also complete a copy of the subscription agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Residents of Ohio must have either of the following in order to purchase our units:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a net worth of at least $70,000, plus $70,000 of annual gross income; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a net worth of at least $250,000.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p83c"></a>Additional
  State Requirements</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition to the suitability requirements set forth above, residents of the following states must satisfy the following requirements applicable to them.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>California</font></b><font size=2> </font><b><font size=2>Investors. </font></b><font size=2>California has further limitations on transferring our units, as set forth in the following notice:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:15%;text-align:left;'><font size=2>&#147;IT
  IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST
  THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN
  CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT
  AS PERMITTED IN THE COMMISSIONER&#146;S RULES.&#148;</font></p>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Iowa, Minnesota and Nebraska Investors</font></b><font size=2>. You must purchase a minimum of 50 units, which is $5,000.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Iowa, Oklahoma, Nebraska or Pennsylvania Investors.</font></b><font size=2> Your investment may not exceed 10% of your net worth.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Kansas Investors. </font></b><font size=2>Under suitability guidelines of the Office of the Kansas Securities Commissioner, you are cautioned to carefully evaluate whether your investment in us and substantially similar investments should exceed 10% of your net worth.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Missouri or Ohio Investors.</font></b><font size=2> Your investment in us may not exceed 10% of your liquid net worth.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Pennsylvania Investors.</font></b><font size=2> Because the minimum closing amount is less than $12 million (10% of the maximum closing amount of $120 million) in this offering, you are cautioned to carefully evaluate our ability to fully accomplish our stated objectives and to inquire as to the current dollar volume of subscriptions for our units.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p84a"></a>Who
  Should Invest</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>You should purchase our units only if you:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>are prepared to hold your investment in us for at least 9 years, which includes:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the up to two-year period during which we may offer and sell our units,</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the period ending five years from when we complete this offering, which is part of the reinvestment period; and </font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the following period of approximately two years, during which we intend to liquidate our assets;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>have no need for your investment in us to be liquid, other than cash you may receive from our intended monthly distributions; and</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>are prepared to assume the substantial risks associated with an investment in us.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p84b"></a>THE
  OFFERING</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p84c"></a>Terms
  of this Offering and the Offering Period</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The minimum amount of offering proceeds that we must receive in order to break escrow and hold the initial closing in this offering is $2 million (20,000 units), and the maximum amount of offering proceeds that we can accept in this offering is $120 million, (1,200,000 units). The amount of our minimum required offering proceeds excludes units subscribed for by Iowa and Pennsylvania residents and units subscribed for by our general partner and its affiliates, as discussed in &#147;&#150; Escrow Arrangements,&#148; below.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your minimum subscription amount is 50 units ($5,000). However, if you purchased units in Lease Equity Appreciation Fund I, L.P. or Lease Equity Appreciation Fund II, L.P., which are prior equipment leasing funds sponsored by LEAF Financial, an affiliate of our general partner, and elect on your subscription agreement to use your cash distributions from one or both of those funds to purchase our units, then you will have no minimum subscription amount.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Your subscription to purchase our units will be effective only when it is accepted by our general partner, which reserves the right to reject your subscription in whole or in part, without liability to you. The subscription agreement provided to you for execution must be accompanied by a copy of this prospectus. You have the right to cancel your subscription before it has been accepted by our general partner by giving written notice of your intent to cancel, in a form that is satisfactory to us and is signed by you and every other person who signed your subscription agreement as an investor, if any, to LEAF Asset Management, LLC, 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103. We will not complete a sale of units to you until at least five business days after the date you receive a final prospectus.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This offering will end not later than two years from the date of this prospectus. Some states or jurisdictions may require renewal, requalification or other consents in order for us to continue this offering after the end of one year from the date of this prospectus. In addition, we may end this offering at any time. If we do not receive and accept subscriptions for a minimum of $2 million (20,000 units) before one year from the date of this prospectus, we will promptly return all of the subscription funds we have received together with any interest earned on them and without deduction for any fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2><a name="p85a"></a>Escrow
  Arrangements</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Until we receive subscriptions for the minimum offering proceeds of $2 million (20,000 units) and admit the initial subscribers as limited partners the subscription funds will be held in an escrow account at Commerce Bank, National Association, Cherry Hill, New Jersey. Subscription funds held in the escrow account will be invested in interest-bearing savings or bank money market accounts so long as they are not mutual funds. Subscribers may not withdraw their subscription funds from the escrow account. On the earlier of the termination of this offering or the satisfaction of the escrow condition and the initial closing in this offering, any interest that accrues on the funds held in escrow will be distributed to the subscribers and allocated among them based on the amounts of their respective subscriptions and the number of days that those amounts were on deposit in the escrow account.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Subscriptions received from residents of Iowa and Pennsylvania will be placed in a separate escrow account and will not be counted toward satisfaction of our minimum offering proceeds of $2 million (20,000 units). Instead, the subscription funds of residents of Iowa and Pennsylvania will be released to us only when our total offering proceeds from all subscribers, including the escrowed Iowa and Pennsylvania subscriptions, are at least $6 million.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Offering proceeds will be transferred to us from escrow any time after we receive and accept the minimum offering proceeds of $2 million (20,000 units), other than subscriptions from Iowa and Pennsylvania residents and subscriptions from our general partner and its affiliates. Subject to the foregoing, subscribers whose subscription funds have been held in escrow will be admitted as limited partners in the initial closing in this offering within 15 days after we have received the minimum offering proceeds of $2 million and broken escrow. Subsequent subscriptions will be held in a separate interest-bearing subscription account pending our general partner&#146;s acceptance or rejection of the subscriptions. Our general partner will accept or reject subsequent subscriptions within 30 days after receipt. Investors whose subscriptions are accepted by our general partner will be admitted as limited partners promptly
after their subscriptions are accepted, but in any event no later than the last day of the month following the date the subscription was accepted. We will promptly return rejected subscription funds together with any interest earned and without deduction for any fees. If our general partner accepts your subscription on our behalf, either we or an agent of ours will give your prompt written confirmation of your admission as one of our limited partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>After we break escrow, our offering proceeds from each closing will be kept in our partnership account and will not be commingled with the funds of any other person or entity. Our general partner will have fiduciary responsibility for the safekeeping and use of all of our funds and assets, whether or not in its immediate possession or control. Also, our general partner will not employ, nor permit any other person to employ, our funds or assets in any manner except for our exclusive benefit.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The escrow agent&#146;s sole role in this offering is that of escrow holder. As the escrow agent, it has not reviewed any of our offering materials and it makes no representations whatsoever as to the nature of this offering or the compliance of this offering with any applicable state or federal laws, rules or regulations. The escrow agent neither endorses, recommends nor guarantees the purchase, value, repayment or any other aspect of an investment in us. The escrow agent does not represent the interests of you or the other potential investors. Its duties are limited as expressly set forth in the escrow agreement. Interested persons may request a copy of the escrow agreement from our general partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p85b"></a>HOW
  TO SUBSCRIBE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If you are investing in us as a natural person, and not as a business or investment entity, you must complete and personally sign the subscription agreement included in Appendix C to this prospectus and deliver it, together with a check for your subscription amount, to a registered representative of a selling dealer. Except as discussed below, your minimum investment amount is 50 units ($5,000). In the case of an IRA or qualified plan, both the owner and the plan fiduciary, if any, must sign the subscription agreement. In the case of donor trusts or other trusts in which the donor is the fiduciary, the donor must sign the subscription agreement in the donor&#146;s fiduciary capacity, e.g. trustee, or both the donor and the fiduciary must sign the subscription agreement. In the case of other fiduciary accounts in which the donor neither exercises control over the account nor is a fiduciary of the account, the plan fiduciary alone may






sign the subscription agreement.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, if you previously invested in Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) or Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), which are prior equipment leasing funds sponsored by LEAF Financial Corporation, an affiliate of our general partner, you may elect on your subscription agreement to purchase our units with the proceeds of your cash distributions from those funds during our offering period, to the extent units are then available for purchase. All units purchased by you with distributions, either from us or from LEAF I or LEAF II, will be purchased at the public offering price and on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements, except that there is no minimum investment amount for units
purchased with cash distributions from LEAF I or LEAF II, or both.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Until we receive and accept offering proceeds of $2 million (20,000 units), excluding units subscribed for by our general partner and its affiliates, or $6 million (60,000 units) in the case of residents of Iowa and Pennsylvania, checks for the purchase of units should be made payable to &#147;LEAF Equipment Leasing Income Fund III, L.P. Escrow Account,&#148; even if the selling dealer is a customer carrying broker/dealer. After the initial closing date in this offering, checks for the purchase of units should be made payable to &#147;LEAF Equipment Leasing Income Fund III, L.P. Subscription Account.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Selling dealers must forward subscription checks to the dealer-manager promptly, but in no event later than noon of the next business day following their receipt. The dealer-manager must forward these subscription checks to the bank escrow agent promptly, but in no event later than noon of the next business day following their receipt by the dealer-manager. Our general partner will promptly review each subscription and either will accept or decline your subscription as a limited partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p86a"></a>SUPPLEMENTAL
  SALES LITERATURE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition to this prospectus, our general partner intends to use the following sales material with the offering of our units:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a
          brochure entitled &#147;LEAF Equipment Leasing Income Fund III, L.P.;</font></p>
      </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a
          slide show presentation and script entitled &#147;LEAF Equipment Leasing
          Income Fund III, L.P.; and</font></p>
      </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>possibly other supplementary materials.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We anticipate that the supplemental materials will include information relating to this offering and our general partner and its affiliates. Our supplemental materials may also include audio-visual materials and taped presentations highlighting and explaining various features of this offering. We may also respond to specific questions from the dealer-manager, the selling dealers and prospective investors. We may send business reply cards, introductory letters and seminar invitations to the dealer-manager and the selling dealers for customer use, and other materials relating to this offering may be made available to them for their internal use.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Except as described above, our general partner has not authorized the use of any other sales material and the offering of our units is made only by means of this prospectus. All sales materials authorized by us for use in this offering are subject to the following conditions:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>they must be preceded or accompanied by this prospectus;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>they are not complete;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>they will not contain any material information that is not also set forth in this prospectus; and</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>they should not be considered a part of, or incorporated into, this prospectus or the registration statement of which this prospectus is a part.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In addition, supplementary materials, including prepared presentations for group meetings, must be submitted by us to the administrators of applicable state securities laws before they are used, and their use must either be preceded or accompanied by this prospectus. Also, all advertisements of, and oral or written invitations to, &#147;seminars&#148; or other group meetings at which our units are to be described, offered, or sold will clearly indicate the following:</font></p>



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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>that the purpose of the meeting is to offer our units for sale;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the minimum purchase price of our units;</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the suitability standards we will employ; and</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the name of the selling dealer selling our units.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Also, no cash, merchandise, or other items of value may be offered as an inducement to you or any other prospective investor to attend the meeting. All written or prepared audiovisual presentations, including scripts prepared in advance for oral presentations to be made at the meetings, must be submitted to the state administrators within a prescribed review period. These provisions, however, will not apply to meetings consisting only of the registered representatives of the selling dealers.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>You should rely only on the information contained in this prospectus in making your investment decision. No one is authorized to provide you with information that is different.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p87a"></a>LEGAL
  MATTERS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Kunzman &amp; Bollinger, Inc., 5100 N. Brookline, Suite 600, Oklahoma City, OK 73112, has issued its opinion to our general partner regarding the validity and due issuance of our units including assessibility, and its opinion on the material and any significant federal income tax issues to typical individual investors in us. However, the factual statements in this prospectus are our statements or those of our general partner, and counsel has not given any opinions with respect to any of the other tax or legal aspects of this offering except as expressly set forth above.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p87b"></a>EXPERTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The balance sheet of LEAF Equipment Leasing Income Fund III, L.P. as of
August 31, 2006 included in this prospectus and in the registration statement has been audited by Grant Thornton LLP, independent
registered public accounting firm, as indicated in their report with respect thereto, and are included herein in reliance upon the
authority of said firm as experts in accounting and auditing.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The balance sheet of LEAF Asset Management, LLC as of
August 31, 2006 included in this prospectus and in the registration statement has been audited by Grant Thornton LLP, independent
registered public accounting firm, as indicated in their report with respect thereto, and are included herein in reliance upon the authority of said firm as experts in accounting and auditing.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p87c"></a>FORECASTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The use of forecasts in this offering is prohibited. Any representations to the contrary and any predictions, written or oral, as to the amount or certainty of any present or future cash benefit or tax consequence that you may receive from the purchase of our units is not permitted.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2><a name="p87d"></a>WHERE
  YOU CAN FIND MORE INFORMATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have filed a registration statement on Form S-1 with the SEC regarding our units offered by this prospectus. As permitted by the SEC&#146;s rules and regulations, this prospectus, which is part of the registration statement, omits certain information about offering expenses, indemnification of officers and directors, exhibits, schedules and undertakings that are set forth in the registration statement. For further information about us and our units being offered by this prospectus, you may want to review the registration statement, including its schedules and the full text of any contracts, agreements or other documents filed as exhibits to the registration statement. The registration statement may be inspected and copied at the public reference room maintained by the SEC at100 F Street, N.E., Washington, D.C. 20549, and the regional offices of the SEC. Copies of these materials can also be obtained on
written request from the Public Reference Section of the SEC at100 F Street, N.E., Washington, D.C. 20549, at prescribed rates, or from the SEC&#146;s web site on the internet at </font><font color="#0000FF"><font size=2>www.sec.gov</font></font><font size=2>. You may obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As a result of this offering, we will file periodic reports and other information with the SEC. These reports and other information may be inspected and copied at the public reference facilities at the SEC at 100 F. Street, N.E., Washington, D.C. 20549, at prescribed rates, or from the SEC&#146;s web site on the internet at </font><font color="#0000FF"><font size=2>www.sec.gov</font></font><i><font size=2>.</font></i></p>
<p align="center"><Font size="2" face="serif">87</font></p>

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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p88a"></a>INDEX TO FINANCIAL STATEMENTS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>LEAF
          ASSET MANAGEMENT, LLC</font></B></p>
      </td>
      <td width="7%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Report
          of Independent Registered Public Accounting Firm</font> </p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>F-1</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Balance
          Sheet as of August 31, 2006</font> </p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>F-2</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Notes
          to Balance Sheet</font> </p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>F-3</font></p>
      </td>
    </tr>
    <tr style='height:.05in;'>
      <td valign=top style=' height:.05in;'>
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style=' height:.05in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><B><font SIZE=2>LEAF
          EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Report
          of Independent Registered Public Accounting Firm</font> </p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>F-5</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Balance
          Sheet as of August 31, 2006</font> </p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>F-6</font></p>
      </td>
    </tr>
    <tr>
      <td valign=bottom >
        <p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Notes
          to Balance Sheet</font> </p>
      </td>
      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>F-7</font></p>
      </td>
    </tr>
  </table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<p align="center"><Font size="2" face="serif">88</font></p>

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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Report
of Independent Registered Public Accounting Firm</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Members</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>LEAF Asset Management, LLC</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have audited the accompanying balance sheet of LEAF Asset Management, LLC (a development stage enterprise) as of August 31, 2006. This financial statement is the responsibility of the Company&#146;s management. Our responsibility is to express an opinion on this financial statement based on our audit.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We
    conducted our audit in accordance with the standards of the Public Company
    Accounting Oversight Board (United States). Those standards require that
    we plan and perform the audit to obtain reasonable assurance about whether
    the financial statements are free of material misstatement. The Company is
    not required to have, nor were we engaged to perform an audit of its internal
    control over financial reporting. Our audit included consideration of internal
    control over financial reporting as a basis for designing audit procedures
    that are appropriate in the circumstances, but not for the purpose of expressing
    an opinion on the effectiveness of the Company's internal control over financial
    reporting. Accordingly, we express no such opinion. An audit also includes
    examining, on a test basis, evidence supporting the amounts and disclosures
    in the financial statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating the overall
    financial statement presentation. We believe that our audit provides a reasonable
    basis for our opinion.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In
    our opinion, the financial statement referred to above presents fairly, in
    all material respects, the financial position of LEAF Asset Management, LLC
    (a
    development
    stage
    enterprise) as of August 31, 2006, in conformity with accounting principles
generally accepted in the United States of America.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>/s/ Grant Thornton LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Philadelphia, PA</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>September
    18, 2006</font></p>
<p align="center"><Font size="2" face="serif">F-1</font></p>

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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="pf02a"></a>LEAF Asset Management, LLC</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(a
  development stage enterprise)</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Balance Sheet<br>
August 31, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><b></b></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
      <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
 </td>

        <td width="1%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>ASSETS</font></B></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="13%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Cash</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,000,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Deferred offering
    cost</font>                                                                                                                                                                                                                                                                                                                                                             </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>30,829</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Investment in partnership</font>                                                                                                                                                                                                                                                                                                                                                                                      </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <hr noshade width="100%" color="Gray" size="1">
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Total Assets</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                          </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,031,829</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <hr noshade width="100%" color="Gray" size="2">
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><B><font SIZE=2>LIABILITIES AND MEMBERS EQUITY</font></B></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Due to affiliate</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                 </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>31,829</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Members
    equity</font>                                                                                                                                                                                                                                                                                                                                                                                                                                       </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>&nbsp;</p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,000,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <hr noshade width="100%" color="Gray" size="1">
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Total liabilities and members equity</font>                                                                                                                                                                                                                                                                                                                                   </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,031,829</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <hr noshade width="100%" color="Gray" size="2">
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>The
accompanying notes are an integral part of this statement</font></p>
<p align="center"><Font size="2" face="serif">F-2</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="pf03a"></a>LEAF Asset Management, LLC</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(a
  development stage enterprise)</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>NOTES TO BALANCE SHEET</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>1.</font></b></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>ORGANIZATION AND BUSINESS OPERATIONS</font></B></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>LEAF
    Asset Management, LLC (the &#147;Company&#148;), a Delaware Corporation, was formed on
    August 29, 2006. The Company&#146;s fiscal year ends on September 30. LEAF
    Asset Management, LLC, is an indirect wholly owned subsidiary of Resource
    America, Inc. (&#147;RAI&#148;). RAI is a publicly-traded company (NASDAQ:
    REXI) operating in the financial fund management, real estate, and equipment
    finance sectors. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Company was formed to act as the sponsor and general partner of equipment
    leasing limited partnerships.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On
    August 31, 2006, the Company contributed $1,000 in exchange for a 1%
    general partnership interest in LEAF Equipment Leasing Income Fund III, L.P.
    (the &#147;Fund&#148;).
    The limited partners will own a 99% limted partnership interest. The Fund
    will be managed by the Company. Cash distributions, if available will be
    made monthly. Distributions from the Fund, net income and net losses will
    be allocated
    1% to the Company, as general partner, and 99% to the limited partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Fund will acquire leases and secured loans primarily from LEAF Financial
    Corporation, Inc., an affiliate of the Company. The primary objective of
    the Fund is to invest the net proceeds raised from the sale of limited partnership
    units in equipment and portfolios of equipment subject to existing equipment
    leases and secured loans in order to generate regular cash distributions
    to the limited partners over the life of the Fund. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Company is considered to be a development stage enterprise and its sole activity
    through August 31, 2006 consisted of the organization and start-up of the
    Company. Accordingly, no statement of operations or statement of cash flows
    is presented. </font></p>
<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>2.</font></b></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>SIGNIFICANT
      ACCOUNTING POLICIES</font></B></p> </td> </tr>
    <tr>
      <td colspan="2" valign=top style='padding:6.0pt 0in 0in 0in;'><B><font SIZE=2>Income
      Taxes</font></B></td>
    </tr>
</table>

	  <p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Federal
	      and state income tax laws provide that the income or losses of the
	      Company are reportable by the Members individual income tax returns.
	  Accordingly, no provision for such taxes has been made in the accompanying
      financial statements.</font></p>

      <table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse;'>
  <tr>
    <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>3.</font></b></p>
    </td>
    <td valign=top style='padding:6.0pt 0in 0in 0in;'>
      <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>TRANSACTIONS
            WITH AFFILIATES</font></B></p>
    </td>
  </tr>
</table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Fund intends to file a registration statement for the sale of its limited
    partnership units. The Company or its affiliates will receive fees to manage
the Fund&#146;s operation.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Company and Chadwick Securities, Inc. (&#147;Chadwick&#148;), a wholly owned
    subsidiary of RAI, will receive an organization and offering allowance of
    3% of the offering proceeds raised. This amount includes reimbursement to
    Chadwick to use for the selling dealers&#146; bona fide accountable due diligence
    expenses of up to 0.5% of the proceeds of each unit sold by them. These charges
    will be recorded by the Fund as offering costs related to the sale of limited
    partnership units on the Statements of Changes in Partners&#146; Capital. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As
    of August 31, 2006 the Company incurred $30,829 of offering cost on behalf
of the Fund. These funds were advanced by an affiliate of the Company and will
    be repaid upon completion of the public offering of units.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Company and Chadwick will receive an underwriting fee of up to 3% of the
    offering proceeds for obtaining and managing the group of selling broker-dealers
    who will sell the funds units in the offering. Chadwick will also receive
    sales commissions of 7% of the proceeds of each unit that they sell. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Company will receive a fee for assisting the Fund in acquiring equipment
    for lease and portfolios of equipment subject to existing equipment leases
and secured loans equal to 2% of the Fund&#146;s purchase price.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Company will receive a subordinated annual asset management fee equal to
    4% of gross rental payments for operating leases, as defined in the partnership
    agreement, or 2% of gross rental payments for full payout leases, or a fee,
    whichever is less. An operating lease is one in which the aggregate noncancellable
    rental payments during the initial term of the lease, on a net present value
    basis, are not sufficient to recover the purchase price of the equipment.
    A full payout lease is one in which the gross rental payments, on a net present
    value basis, are at least sufficient to recover the purchase price of the
equipment. During the Fund&#146;s five-year investment period, the management fee will be subordinated to the payment to the Fund&#146;s limited partners of a cumulative annual distribution of 8% of their capital contributions, as adjusted by distributions deemed to be a return of capital.</font></p>
<p align="center"><Font size="2" face="serif">F-3</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center" style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>LEAF
      Asset Management, LLC</font></b></p>
<p align="center" style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(a
    development stage enterprise)</font></p>
<p align="center" style='margin-top:16pt;text-align:center;'><B><font SIZE=2>NOTES
      TO BALANCE SHEET</font></B></p>
<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>3.</font></b></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>TRANSACTIONS WITH AFFILIATES (continued)</font></b></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company will receive a subordinated commission equal to one-half of a competitive commission, up to a maximum of 3% of the contract sales price, for arranging the sale of the Fund&#146;s equipment after the expiration of a lease. This commission is subordinated to the payment to the limited partners of a cumulative 8% annual return on their capital contributions, as adjusted by distributions deemed to be returns of capital. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company or its affiliates will be reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Company will receive a commission equal to the lesser of a competitive rate or 2% of gross rental payments derived from any re-lease of equipment, payable as the Fund receives rental payments from re-lease. The Fund will not, however, pay a re-lease commission if the re-lease is with the original lessee or its affiliates.</font></p>
<p align="center"><Font size="2" face="serif">F-4</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="pf05a"></a>Report
of Independent Registered Public Accounting Firm</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The Partners</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>LEAF Equipment Leasing Income Fund III, L.P.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We have audited the accompanying balance sheet of LEAF Equipment Leasing Income Fund III, L.P. (a development stage enterprise) as of August 31, 2006. This financial statement is the responsibility of the Fund&#146;s management. Our responsibility is to express an opinion on this financial statement based on our audit.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>We
    conducted our audit in accordance with the standards of the Public Company
    Accounting Oversight Board (United States). Those standards require that
    we plan and perform the audit to obtain reasonable assurance about whether
    the financial statements are free of material misstatement. The Partnership
    is not required to have, nor were we engaged to perform an audit of its internal
    control over financial reporting. Our audit included consideration of internal
    control over financial reporting as a basis for designing audit procedures
    that are appropriate in the circumstances, but not for the purpose of expressing
    an opinion on the effectiveness of the Partnership's internal control over
    financial reporting. Accordingly, we express no such opinion. An audit also
    includes examining, on a test basis, evidence supporting the amounts and
    disclosures
    in the financial statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating the overall
    financial statement presentation. We believe that
    our audit provides
    a reasonable
    basis
for our opinion.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In
    our opinion, the financial statement referred to above presents fairly, in
    all material respects, the financial position of LEAF Equipment Leasing Income
    Fund III,
    L.P. (a
    development stage enterprise) as of August 31, 2006, in conformity with accounting
principles generally accepted in the United States of America.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>/s/ Grant Thornton LLP</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Philadelphia, PA</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>September
18, 2006</font></p>



<p align="center"><Font size="2" face="serif">F-5</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="pf06a"></a>LEAF Equipment Leasing Income Fund III, L.P. </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(a development stage enterprise)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Balance Sheet<br>
  August 31, 2006
</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>ASSETS</font></B></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="9%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Cash</font>                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,001</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><b><font size=2>LIABILITIES AND PARTNERS&#146; CAPITAL</font></b></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Partners&#146; Capital</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>General Partner</font>                                                                                                                                                                                                                                                                                                                                                                                                                                          </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,000</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Limited Partner</font>                                                                                                                                                                                                                                                                                                                                                                                                                                           </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,001</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>The
accompanying notes are an integral part of this statement</font></p>
<p align="center"><Font size="2" face="serif">F-6</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="pf07a"></a>LEAF Equipment Leasing Income Fund III, L.P.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(a
  development stage enterprise)</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>NOTES TO BALANCE SHEET</font></B></p>



<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>1.</font></b></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>ORGANIZATION AND BUSINESS OPERATIONS</font></B></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>LEAF
    Equipment Leasing Income Fund III, L.P. (the &#147;Fund&#148;), a Delaware
    limited partnership, was formed on May 16, 2006 by its general partner,
    LEAF Asset Management, LLC (the &#147;General Partner&#148;). The Fund&#146;s
    fiscal year ends on December 31. LEAF Asset Management, LLC, a Delaware corporation,
    is an indirect wholly owned subsidiary of Resource America, Inc. (&#147;RAI&#148;).
    RAI is a publicly-traded company (NASDAQ: REXI) operating in the financial
    fund management, real estate, and equipment finance sectors. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    General Partner and the initial limited partner capitalized the Fund on August
    31, 2006. Upon the consummation of a public offering, the initial limited
    partner will
    withdraw and its capital contribution will be refunded and its units will
    be retired. The General Partner contributed $1,000 to the Fund for a 1% partnership
    interest and the initial limited partner contributed $1 to the Fund for a
    99% partnership interest. The Fund will be managed by the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    General Partner will own a 1% general partnership interest, and the limited
    partners will own a 99% limited partnership interest. Cash distributions
    will be made monthly. The distributions,  net income and net
    losses will be allocated 99% to the limited partners and 1% to the General
    Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Fund is considered to be a development stage enterprise and its sole activity
    through August 31, 2006 consisted of the organization and start-up of the
    Fund. Accordingly, no statement of operations or statement of cash flows
    is presented.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Fund will acquire leases and securred loans primarily from LEAF Financial
    Corporation, Inc., an affiliate of the General Partner. The primary objective
    of the Fund is to invest the net proceeds raised from the sale of limited
    partnership units in equipment and portfolios of equipment subject to existing
    equipment leases and secured loans in order to generate regular cash distributions
    to the limited partners over the life of the Fund.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Fund shall terminate on December 31, 2031, unless sooner disolved or terminated
    as provided for in the Partnership Agreement.</font></p>

<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>2.</font></b></p>
      </td>
      <td valign=top style='padding:6.0pt 0in 0in 0in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>SIGNIFICANT
              ACCOUNTING POLICIES</font></B></p>
      </td>
    </tr>
  </table>
</div>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2><b>Income Taxes</b></font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Federal
    and state income tax laws provide that the income or losses of the Fund are
    reportable by the Partners on their individual income tax returns. Accordingly,
    no provision for such taxes has been made in the accompanying financial statements.</font></p>
<br>
<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>3.</font></b></p>
      </td>
      <td valign=top style='padding:6.0pt 0in 0in 0in;'>
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>TRANSACTIONS
          WITH AFFILIATES</font></B></p>
      </td>
    </tr>
  </table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    Fund intends to file a registration statement for the sale of its limited
    partnership units. The Fund will rely on the General Partner and its affilites
    to manage the funds operations and will pay the General Partner or its affiliates
    fees to manage the fund. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    General Partner and Chadwick Securities, Inc. (&#147;Chadwick&#148;), a wholly
    owned subsidiary of RAI, will receive an organization and offering allowance
    of 3% of the offering proceeds raised. This amount includes reimbursement
    to Chadwick to use for the selling dealers&#146; bona fide accountable due
    diligence expenses of up to 0.5% of the proceeds of each unit sold by them.
    These charges will be recorded by the Fund as offering costs related to the
    sale of Partnership units on the Statements of Changes in Partners&#146; Capital. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    General Partner and Chadwick will receive an underwriting fee of up to 3%
    of the offering proceeds for obtaining and managing the group of selling
    broker-dealers
    who will sell the units in the offering. Chadwick will also receive sales
    commissions of 7% of the proceeds of each unit that they sell.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
    General Partner will receive a fee for assisting the Fund in acquiring equipment
    for lease, portfolios of equipment subject to existing equipment leases and
secured loans equal to 2% of the Fund&#146;s purchase price.</font></p>
<p align="center"><Font size="2" face="serif">F-7</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>LEAF Equipment Leasing Income Fund III, L.P.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(a
  development stage enterprise)</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>NOTES TO BALANCE SHEET</font></B></p>



<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>3.</font></b></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>TRANSACTIONS
      WITH AFFILIATES (continued)</font></b></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner will receive a subordinated annual asset management fee equal to 4% of gross rental payments for operating leases, as defined in the partnership agreement, or 2% of gross rental payments for full payout leases, or a competetive fee, whichever is less. An operating lease is one in which the aggregate noncancellable rental payments during the initial term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment. A full payout lease is one in which the gross rental payments, on a net present value basis, are at least sufficient to recover the purchase price of the equipment. During the Fund&#146;s five-year investment period, the management fee will be subordinated to the payment to the Fund&#146;s limited partners of a cumulative annual distribution of 8% of their capital contributions, as adjusted by distributions deemed to be a return of capital.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner will receive a subordinated commission equal to one-half of a competitive commission, up to a maximum of 3% of the contract sales price, for arranging the sale of the Fund&#146;s equipment after the expiration of a lease. This commission is subordinated to the payment to the limited partners of a cumulative 8% annual return on their capital contributions, as adjusted by distributions deemed to be returns of capital. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner or its affiliates will be reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner will receive a commission equal to the lesser of a competitive rate or 2% of gross rental payments derived from any re-lease of equipment, payable as the Fund receives rental payments from re-lease. The Fund will not, however, pay a re-lease commission if the re-lease is with the original lessee or its affiliates.</font></p>
<p align="center"><Font size="2" face="serif">F-8</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>











<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p109a"></a>APPENDIX A</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>AMENDED AND RESTATED AGREEMENT OF</font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>LIMITED PARTNERSHIP</font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>OF</font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>

<p align="center"><Font size="2" face="serif"></font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>


<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>TABLE OF CONTENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr style='height:3.6pt;'>


      <td width="5%" valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="5%" valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="7%" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>I.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>DEFINITIONS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>1</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>1.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Defined Terms</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>1</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>II.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>FORMATION OF PARTNERSHIP</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>2.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Formation of Partnership</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>III.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>NAME</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>3.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Name</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>IV.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>PLACES OF BUSINESS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>4.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Principal Place of Business</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>4.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Other Places of Business</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>V.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>NAMES AND ADDRESSES OF PARTNERS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>5.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Names and Addresses of Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>VI.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>PURPOSES AND OBJECTIVES</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>6.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Purposes</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>12</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>6.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Investment Objectives</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>VII.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>TERM</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>7.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Term</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>VIII.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>PARTNERS AND CAPITAL</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>General Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Original Limited Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limited Partners and Maximum Offering</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Subscription Documents and Suitability</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>13</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Payment of Subscription Price of Units and Limited Partners&#146; Right (Other Than Residents of Ohio) to Elect to Use Cash Distributions to Purchase Units</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.6</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Minimum Subscription Amount</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.7</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Subscription for Units by General Partner and its Affiliates</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.8</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Partnership Closings</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.9</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Acceptance of Units</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.10</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Admission to Partnership as Limited Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.11</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Escrow Account and Subscription Account</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>14</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.12</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Separate Escrow Account for Residents of Iowa and Pennsylvania</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>15</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.13</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Partnership Capital</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>15</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.14</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Capital Accounts</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>15</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.15</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limitations on Additional Capital Contributions</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>16</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>8.16</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Loans by Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>16</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>IX.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>POWERS, RIGHTS AND DUTIES OF GENERAL PARTNER</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>17</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>9.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Extent of Powers and Duties</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>17</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>9.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limitations on the Exercise of Powers of General Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>20</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
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      <td width="5%" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="5%" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>9.3</font></p> </td>

        <td width="1%" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limitation on Liability of General Partner and its Affiliates; Indemnification</font></p> </td>

        <td width="7%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>22</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>9.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Compensation of General Partner and its Affiliates</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>23</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>9.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Other Interests of the General Partner and its Affiliates</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>26</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>X.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>POWERS AND LIABILITIES OF LIMITED PARTNERS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>27</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>10.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Absence of Control Over Partnership Business</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>27</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>10.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limited Liability</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>27</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XI.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>DISTRIBUTIONS AND ALLOCATIONS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>27</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Distribution of Distributable Cash</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>27</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Allocations of Income and Loss</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>28</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Distributions and Allocations Among the Limited Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>30</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Tax Allocations: Code Section 704(c); Revaluations</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>31</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Return of Uninvested Capital Contribution</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>31</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.6</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>No Distributions in Kind</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>31</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>11.7</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Partnership Entitled to Withhold</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>31</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XII.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>WITHDRAWAL OF GENERAL PARTNER</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>32</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>12.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Voluntary Withdrawal</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>32</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>12.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Involuntary Withdrawal</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>32</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>12.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Consequences of Withdrawal</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>32</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>12.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Liability of Withdrawn General Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>12.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Notice of Withdrawal; Admission of Substitute General Partner; Dissolution if No Substitute General Partner Approved</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XIII.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>TRANSFER OF UNITS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>13.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Withdrawal of a Limited Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>13.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Assignment</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>13.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Substitution</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>34</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>13.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Status of an Assigning Limited Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>35</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>13.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limited Right of Presentment for Redemption of Units</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>35</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XIV.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>DISSOLUTION AND WINDING-UP</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>37</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>14.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Events Causing Dissolution</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>37</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>14.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Winding Up of the Partnership; Capital Contribution by the General Partner Upon Dissolution</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>37</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>14.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Application
          of Liquidation Proceeds Upon Dissolution</font></p>
      </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>38</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>14.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>No Recourse Against Other Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>38</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XV.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>FISCAL MATTERS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>38</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Title to Property and Bank Accounts</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>38</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Maintenance of and Access to Basic Partnership Documents</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>38</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Financial Books and Accounting</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>40</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Fiscal Year</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>40</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Reports</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>40</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.6</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Tax Returns and Tax Information</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>41</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.7</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Accounting Decisions</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>42</font></p> </td> </tr></table>
</div>



<p align="center"><Font size="2" face="serif">A-i</font></p>

<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>




<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>


      <td width="5%" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="5%" valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.8</font></p>
      </td>

        <td width="1%" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Federal Tax Elections</font></p> </td>

        <td width="7%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>42</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>15.9</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Tax Matters Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>42</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XVI.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>MEETINGS AND VOTING RIGHTS OF THE LIMITED PARTNERS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>43</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>16.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Meetings of the Limited Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>43</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>16.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Voting Rights of the Limited Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>44</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>16.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Limitations on Action by the Limited Partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>45</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XVII.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>AMENDMENTS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>45</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>17.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Amendments by the General Partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>45</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XVIII.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>POWER OF ATTORNEY</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>46</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>18.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Appointment of Attorney-in-Fact</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>46</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>18.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Amendments to Agreement and Certificate of Limited Partnership</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>46</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>18.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Power Coupled With an Interest</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>46</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>XIX.</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt;'><font SIZE=2>GENERAL PROVISIONS</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6.0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.1</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Notices, Approvals and Consents</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.2</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Further Assurances</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.3</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Captions</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.4</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Binding Effect</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.5</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Severability</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.6</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Integration</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.7</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Applicable Law</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>47</font></p> </td> </tr>

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        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.8</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Counterparts</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>48</font></p> </td> </tr>

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        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.9</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Creditors</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>48</font></p> </td> </tr>

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        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.10</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Successors and Assigns</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>48</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>19.11</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-bottom:0pt;'><font size=2>Waiver of Action for Partition</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;'><font size=2>48</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-2</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>This Amended and Restated Agreement of Limited Partnership is made and entered into by and among LEAF Asset Management, LLC, a limited liability company organized and existing under the laws of the State of Delaware, as the General Partner, LEAF Financial Corporation, as the &#147;Original Limited Partner,&#148; and such other persons who may be admitted to the Partnership from time to time as Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE I - DEFINITIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>1.1 Defined Terms. </font></b><font size=2>Defined terms used in this Agreement shall have the meanings specified below. Certain additional defined terms are set forth elsewhere in this Agreement. Unless the context otherwise requires, the singular shall include the plural and the masculine gender shall include the feminine and neuter, and vice versa, and &#147;Article&#148; and &#147;Section&#148; references are references to the Articles and Sections of this Agreement.</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Accountants</font></b><font size=2>&#148; means any firm of independent certified public accountants that may be engaged from time to time by the General Partner on behalf of the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Acquisition Expenses</font></b><font size=2>&#148; means expenses (other than Acquisition Fees) incurred and paid to any Person which are attributable to the selection and acquisition of Investments, whether or not acquired, including, but not limited to:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>legal fees and expenses;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>travel and communication expenses;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>costs of credit reports, appraisals and reference materials used to evaluate transactions;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>non-refundable option payments on Investments not acquired;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>accounting fees and expenses;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>insurance costs;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>initial direct costs, as that term is defined under United States generally accepted accounting principles (&#147;GAAP&#148;), which includes any origination fees paid by LEAF Funding, Inc. to any Person, including its employees, with respect to acquiring and holding Investments on a temporary basis before they are purchased from LEAF Funding, Inc. by the Partnership; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(viii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>miscellaneous other expenses, however designated.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Acquisition Fees</font></b><font size=2>&#148; means all fees and commissions paid by any party in connection with the initial purchase or funding of any Investment, including fees payable to finders and brokers that are not Affiliates of the General Partner. Also, included in the computation of such fees or commissions shall be any commission, selection fee, financing fee, non-recurring management fee, or any fee of a similar nature, however designated.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Adjusted Capital Account Deficit</font></b><font size=2>&#148; means with respect to any Capital Account as of the end of any taxable year, the amount by which the balance in the Capital Account is less than zero. For this purpose, a Partner&#146;s Capital Account balance shall be:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reduced for any items described in Treas. Reg. Section 1.704-1(b)(2)(ii)(d)(4), (5), and (6);</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>increased for any amount the Partner is unconditionally obligated to contribute to the Partnership no later than the end of the taxable year in which his or her Units, or the General Partner&#146;s Partnership Interest, are liquidated (as defined in Treas. Reg. Section 1.704-1(b)(2)(ii)(g)) or, if later, within 90 days after the liquidation; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-1</font></p>

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<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>increased for any amount the Partner is treated as being obligated to contribute to the Partnership pursuant to the penultimate sentences of Treas. Reg. Sections 1.704-2(g)(1) and 1.704-2(i)(5) (relating to Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, respectively).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Adjusted Capital Contribution</font></b><font size=2>&#148; means, as to any Limited Partner, as determined from time to time, the Limited Partner&#146;s Capital Contribution reduced, but not below zero, by:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>all distributions previously made to the Limited Partner by the Partnership which are deemed to reduce the Limited Partner&#146;s Capital Contribution under Section 11.3(d)(ii); and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>all payments previously made to the Limited Partner in Redemption of a portion or all of the Limited Partner&#146;s Units under Section 13.5.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Administrator</font></b><font size=2>&#148; means the official or agency administering the securities laws of a state or other political subdivision of the United States.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(7)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Affiliate</font></b><font size=2>&#148; means, with respect to any Person:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other Person directly or indirectly controlling, controlled by or under common control with such Person;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other Person owning or controlling 10% or more of the outstanding voting securities of such Person;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any officer, director or partner of such Person; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if such Person is an officer, director or partner, any other Person for which such Person acts in such capacity.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(8)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Affiliated Limited Partner</font></b><font size=2>&#148; means any of the following Persons who purchase Units and are admitted to the Partnership as Limited Partners:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the General Partner and any officer, director, employee or other Affiliate of the General Partner;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Dealer-Manager, the Selling Dealers and any registered representative or principal of the Dealer-Manager or a Selling Dealer;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>registered investment advisors and their clients; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>investors who buy Units through the officers and directors of the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(9)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Affiliated Program</font></b><font size=2>&#148; means any Program formed by the General Partner or any Affiliate of the General Partner or in which the General Partner or any of its Affiliates has an interest.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(10)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Agreement</font></b><font size=2>&#148; means this Amended and Restated Agreement of Limited Partnership, as it may hereafter be amended, supplemented or restated from time to time. </font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(11)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>&#147;Assessments&#148;</font></b><font size=2> means additional amounts of capital which may be mandatorily required of, or paid at the option of, a Limited Partner beyond his subscription commitment.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(12)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Assignee</font></b><font size=2>&#148; means any Person to whom any Unit or Partnership Interest, or part thereof, has been Assigned, in whole or in part, in a manner permitted by Section 13.2.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(13)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Assignment</font></b><font size=2>&#148; means, with respect to any Unit or Partnership Interest, or any part thereof, the sale, assignment, transfer, gift or other disposition of such Unit or Partnership Interest, whether voluntarily or by operation of law, except that in the case of a bona fide pledge or other hypothecation, no Assignment shall be deemed to have occurred unless and until the secured party has exercised his right of foreclosure with respect thereto.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-2</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(14)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Book Value</font></b><font size=2>&#148; means, with respect to any Partnership property, the Partnership&#146;s adjusted basis for federal income tax purposes, adjusted from time to time to reflect the adjustments required or permitted by Treas. Reg. Section 1.704-1(b)(2)(iv)(d)-(g).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Capital Account</font></b><font size=2>&#148; means the capital account maintained for each Partner under Section 8.5.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Capital Contribution</font></b><font size=2>&#148; means:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>as to the General Partner, its initial $1,000 contribution to the capital of the Partnership plus any additional amounts as may be contributed to the capital of the Partnership by the General Partner; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>as to any Limited Partner, the gross amount of investment in the Partnership actually paid by the Limited Partner, i.e. either the Gross Unit Price or the Net Unit Price, without deduction for Front-End Fees (whether payable by the Partnership or not);</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><font size=2>but excluding Distributable Cash reinvested in additional Investments under Section 9.1(b)(xxv) during the Reinvestment Period.</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>&#147;Carried Interest&#148;</font></b><font size=2> means an interest taken in a Program by a Person, other than a promotional interest, for which full consideration has neither been paid nor is to be paid.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Cash Flow</font></b><font size=2>&#148; means the Partnership&#146;s Gross Revenues, without deduction for depreciation, but after deducting the Partnership&#146;s cash funds used to pay all other Partnership expenses, debt payments, capital improvements and replacements (other than cash funds withdrawn from Reserves).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Closing</font></b><font size=2>&#148; means the admission of Limited Partners to the Partnership in accordance with Section 8.3.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Closing Date</font></b><font size=2>&#148; means any date on which any Limited Partner is admitted to the Partnership, and includes the Initial Closing Date, any subsequent Closing Date and the Final Closing Date.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Code</font></b><font size=2>&#148; means the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent laws.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(22)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Commission</font></b><font size=2>&#148; means the Securities and Exchange Commission.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(23)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Consent</font></b><font size=2>&#148; means, as the context may require:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>consent given by vote at a meeting called and held in accordance with the provisions of Section 16.1;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the written consent without a meeting of any Person to do the act or thing for which the consent is solicited; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the act of granting the consent.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Controlling Person</font></b><font size=2>&#148; means, with respect to the General Partner or any Affiliate of the General Partner, any of the following Persons:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>its chairmen, directors, presidents, or other executive or senior officers;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any holder of a 5% or greater equity interest in the General Partner or its Affiliate; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any Person having the power to direct or cause the direction of the General Partner or its Affiliate, whether through the ownership of voting securities, by contract or otherwise.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Counsel</font></b><font size=2>&#148; means any law firm that may be engaged from time to time by the General Partner on behalf of the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Cumulative Return</font></b><font size=2>&#148; means, as to any Limited Partner, an amount equal to an 8% annual (0.66667% monthly) cumulative return on the Limited Partner&#146;s Adjusted Capital Contribution (without reduction for any distribution <font size=2>made or to be made to the Limited Partner on the date of calculation) calculated from a date not later than the last day of the calendar quarter in which the Capital Contribution of the Limited Partner as to which the Cumulative Return is being calculated was made.</font></font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-3</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Dealer-Manager</font></b><font size=2>&#148; means Chadwick Securities, Inc., an Affiliate of the General Partner, the broker/dealer which will manage the offer and sale of the Units in all states in the Offering.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Dealer-Manager Agreement</font></b><font size=2>&#148; means the agreement entered into between the General Partner and the Dealer-Manager, substantially in the form of the Dealer-Manager Agreement filed as an exhibit to the Registration Statement, as amended and supplemented from time to time as permitted by its terms.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Dealer-Manager Fee</font></b><font size=2>&#148; means the fees payable to the Dealer-Manager in an amount equal to 3.0% of the Gross Unit Price per Unit sold, in the aggregate, in the Offering.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Delaware Act</font></b><font size=2>&#148; means the Delaware Revised Uniform Limited Partnership Act, as amended, and any successor thereto.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Distributable Cash</font></b><font size=2>&#148; or </font><b><font size=2>&#147;Cash Available for Distribution&#148;</font></b><font size=2> means Cash Flow plus any amounts released from Reserves by the General Partner, less amounts allocated to Reserves by the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Due Diligence Expenses</font></b><font size=2>&#148; means fees and expenses actually incurred by the Dealer-Manager or the Selling Dealers for bona fide due diligence efforts expended in connection with the Offering, but not to exceed .5% of the Gross Unit Price per Unit sold in the Offering as described in the Prospectus.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Effective Date</font></b><font size=2>&#148; means the date the Registration Statement is declared effective by the Commission.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Equipment</font></b><font size=2>&#148; means any new, used or reconditioned equipment and related property acquired by the Partnership, or in which the Partnership has acquired a direct or indirect interest, and shall also be deemed to include such equipment and related property or other tangible and intangible personal property which at any time is subject to, or serves as the collateral for, a Lease or a Secured Loan.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(35)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>&#147;Equipment Management&#148;</font></b><font size=2> means personnel and services necessary to the leasing activities of the Partnership, including but not limited to, leasing and re-leasing of Partnership Equipment, arranging for necessary maintenance and repair of the Equipment, collecting revenues, paying operating expenses, determining that the Equipment is used in accordance with all operative contractual arrangements and providing clerical and bookkeeping services necessary to the operation of Partnership Equipment.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Escrow Account</font></b><font size=2>&#148; means an interest-bearing account established and maintained by the Partnership, the General Partner and the Dealer-Manager with the Escrow Agent in accordance with the terms of the Escrow Agreement for the purpose of holding, pending the distribution thereof in accordance with the terms of the Escrow Agreement and this Agreement, any subscription funds received from Persons who may be admitted to the Partnership as Limited Partners on the Initial Closing Date.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Escrow Agent</font></b><font size=2>&#148; means Commerce Bank, NA, or another United States banking institution with at least $50 million in assets, which shall be selected by the General Partner to serve in such capacity pursuant to the Escrow Agreement.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Escrow Agreement</font></b><font size=2>&#148; means the Escrow Agreement among the Partnership, the General Partner, the Dealer-Manager and the Escrow Agent, substantially in the form of the Escrow Agreement filed as an exhibit to the Registration Statement, as amended and supplemented from time to time as permitted by its terms.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Final Closing Date</font></b><font size=2>&#148; means the last Closing Date in the Offering on which a Limited Partner (other than a Substitute Limited Partner) is admitted to the Partnership, which shall be as soon as practicable following the Termination Date.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-4</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Financing Transaction</font></b><font size=2>&#148; means:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any extension of credit or loan of money to the Partnership that is secured by a security interest in the Partnership&#146;s Equipment or other tangible or intangible personal property of the Partnership, any Lease of any such property or any Secured Loan;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any notes issued in connection with a securitization of Equipment, Equipment Leases, Secured Loans, or receivables therefrom; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any transaction in which the Partnership&#146;s Equipment, Equipment Leases or Secured Loans are sold to a Person for purposes of securitization and with customary retained rights or interests.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(41)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Fiscal Period</font></b><font size=2>&#148; means any interim accounting period within a Fiscal Year established by the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(42)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Fiscal Quarter</font></b><font size=2>&#148; means, for each Fiscal Year, the 3-calendar-month period which commences on the first day of such Fiscal Year and each additional 3-calendar-month period commencing on the first day of the first month following the end of the preceding such period within such Fiscal Year (or such shorter period ending on the last day of a Fiscal Year).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Fiscal Year</font></b><font size=2>&#148; means the Partnership&#146;s annual accounting period established pursuant to Section 15.4.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(44)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Front-End Fees</font></b><font size=2>&#148; means fees and expenses paid by any Person for any services rendered during the Partnership&#146;s organizational and offering or acquisition phases, including Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses, Organization and Offering Expense Allowances, Acquisition Fees and Acquisition Expenses (other than any Acquisition Fees or Acquisition Expenses paid by a manufacturer of equipment to any of its employees unless such Persons are Affiliates of the General Partner) and all other similar fees however designated.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Full Payout Lease</font></b><font size=2>&#148; means any lease under which the aggregate noncancellable rental payments due during the initial term of the lease, on a net present value basis, are at least sufficient to permit the Partnership to recover the entire Purchase Price of the Equipment subject to the lease.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>General Partner</font></b><font size=2>&#148; means LEAF Asset Management, LLC, and its successors or permitted assigns, as general partner of the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Gross Asset Value</font></b><font size=2>&#148; means, with respect to any asset of the Partnership, the asset&#146;s adjusted tax basis, except that:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset at the time of such contribution;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair market values at the time specified in Treas. Reg. Section 1.704-1(b)(2)(iv)(f)(5) if the Partnership so elects;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Gross Asset Value of any Partnership asset distributed to any Partner shall be the gross fair market value of such asset on the date of distribution;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to the extent not otherwise reflected in the Partners&#146; Capital Accounts, the Gross Asset Values of Partnership assets shall be increased (or decreased) to appropriately reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b); and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if on the date of contribution of an asset or a revaluation of an asset in accordance with clauses (ii) through (iv), above, the adjusted tax basis of such asset differs from its fair market value, the Gross Asset Value of such asset shall thereafter be adjusted by reference to the depreciation method described in Treas. Reg. Section 1.704-1(b)(2)(iv)(g)(3).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(48)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Gross Offering Proceeds</font></b><font size=2>&#148; means the gross amount of Capital Contributions, before deduction of Front-End Fees, of all Limited Partners admitted to the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Gross Revenues</font></b><font size=2>&#148; means gross cash receipts of the Partnership from whatever source, excluding Capital Contributions.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-5</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Gross Unit Price</font></b><font size=2>&#148; means $100.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Income</font></b><font size=2>&#148; or &#147;</font><b><font size=2>Loss</font></b><font size=2>&#148; means, for any Fiscal Year, the Partnership&#146;s taxable income or loss for such Fiscal Year, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Income or Losses shall be applied to increase such taxable income or reduce such loss;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any expenditure of the Partnership described in Code Section 705(a)(2)(B), or treated as such pursuant to Treas. Reg. Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Income and Loss, shall be applied to reduce such taxable income or increase such loss;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>gain or loss resulting from a taxable disposition of any asset of the Partnership shall be computed by reference to the Gross Asset Value of such asset and the special depreciation calculations described in Treas. Reg. Section 1.704-1(b)(2)(iv)(g), notwithstanding that the adjusted tax basis of such asset may differ from its Gross Asset Value;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>in lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss for such Fiscal Year, there shall be taken into account depreciation, amortization or other cost recovery determined pursuant to the method described in Treas. Reg. Section 1.704-1(b)(2)(iv)(g)(3); and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any items which are specially allocated pursuant to Section 11.2(f) shall not be taken into account in computing Income or Loss.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(52)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Indebtedness</font></b><font size=2>&#148; means, with respect to any Person as of any date, all obligations of such Person (other than capital, surplus, deferred income taxes and, to the extent not constituting obligations, other deferred credits and reserves) that could be classified as liabilities (exclusive of accrued expenses and trade accounts payable incurred in respect of property purchased in the ordinary course of business which are not overdue or which are being contested in good faith by appropriate proceedings and are not so required to be classified on such balance sheet as debt) on a balance sheet of such Person that is prepared in accordance with generally accepted accounting principles as of such date.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(53)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Independent Expert</font></b><font size=2>&#148; means a Person with no material current or prior business or personal relationship with the General Partner or its Affiliates, who is engaged to a substantial extent in the business of rendering appraisals regarding the value of assets of the type held by the Partnership and who is qualified to perform the work.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Initial Closing Date</font></b><font size=2>&#148; means the first Closing Date for the Partnership on which Limited Partners with Units equal to, or greater than, the Minimum Offering are admitted to the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(55)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Investment in Equipment</font></b><font size=2>&#148; means the aggregate amount of Capital Contributions actually paid or allocated to the purchase, manufacture or renovation of Equipment acquired by the Partnership, together with other cash payments such as interest, taxes and Reserves allocable thereto (to the extent that Reserves do not exceed 3% of Capital Contributions), but excluding Front-End Fees.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(56)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Investment Committee</font></b><font size=2>&#148; means a committee of the General Partner&#146;s officers and directors that shall do the following on behalf of the Partnership:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>establish credit review policies and procedures;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>supervise the efforts of the General Partner&#146;s credit department;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>approve significant transactions and transactions which differ from the standards and procedures the Investment Committee has established; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>pursuant to Section 9.5, resolve conflicts in allocating Investments among Programs.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-6</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(57)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Investments</font></b><font size=2>&#148; means the Partnership&#146;s portfolio, from time to time, of Equipment, Leases and Secured Loans.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(58)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><B><font SIZE=2>IRA</font></B><font size=2>&#148; means an Individual Retirement Account.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(59)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><B><font SIZE=2>IRS</font></B><font size=2>&#148; means the Internal Revenue Service or any successor agency thereto.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(60)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Lease</font></b><font size=2>&#148; means any Full Payout Lease, any Operating Lease and any residual value interest therein.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(61)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>&#147;Leasing Fee&#148;</font></b><font size=2> means the total of all fees and commissions paid by any Person in connection with the initial lease of Equipment acquired by the Partnership or an Affiliated Program.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(62)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Lender</font></b><font size=2>&#148; means any Person that lends cash or cash equivalents to the Partnership, including any Person that acquires by purchase, assignment, or otherwise, an interest in:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the future amounts payable under any Lease or Secured Loan and in the related Equipment or other assets; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>payments due under any Financing Transaction and in any property securing the Financing Transaction.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(63)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Lessee</font></b><font size=2>&#148; means a lessee under a Lease.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(64)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Limited Partner</font></b><font size=2>&#148; means:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any Person who owns at least a portion of a Unit and who has been admitted to the Partnership as a Limited Partner, including Affiliated Limited Partners; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any Person who becomes a Substitute Limited Partner in accordance with this Agreement;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><font size=2>including the General Partner and its Affiliates to the extent they purchase Units.</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(65)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Liquidation Period</font></b><font size=2>&#148; means the period commencing on the first day following the end of the Reinvestment Period and continuing for the period deemed necessary by the General Partner for the orderly termination of the Partnership&#146;s operations and affairs and the liquidation or disposition of the Partnership&#146;s Investments.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Majority</font></b><font size=2>&#148; or &#147;</font><b><font size=2>Majority Interest</font></b><font size=2>&#148; means Limited Partners owning more than 50% of the aggregate outstanding Units from time to time.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Management Fees</font></b><font size=2>&#148; means, for any month, the following fees, one or all of which may be payable to the General Partner, in an amount equal to the lesser of the maximum fees set forth in clauses (i) through (iv) below, compared with, in each case, fees that are reasonable and competitive and would customarily be paid to non-affiliated third-parties rendering similar services in the same geographic location and for similar types of investments. The maximum permitted Management Fees for the services described in clauses (i) through (iv), below, are as follows:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an amount equal to 0.08335% (1% annually) of Gross Revenues on Operating Leases managed by third-parties under the General Partner&#146;s supervision;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an amount equal to 0.33333% (4% annually) of Gross Revenues on Operating Leases managed by the General Partner or its Affiliates;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an amount equal to 0.16667% (2% annually) of Gross Revenues on Full Payout Leases which contain  Net Lease Provisions; and/or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an amount equal to 0.16667% (2% annually) of Gross Revenues on Secured Loans.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(68)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Maximum Offering</font></b><font size=2>&#148; means the receipt and acceptance by the Partnership of subscriptions for not more than 1,200,000 Units, excluding the 10 Units subscribed for by the Original Limited Partner, on or before the Final Closing Date.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-7</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(69)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Minimum Offering</font></b><font size=2>&#148; means the receipt and acceptance by the Partnership of subscriptions for not less than 20,000 Units, excluding the 10 Units subscribed for by the Original Limited Partner and any Units subscribed for by the General Partner or its officers, directors, employees or other Affiliates.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(70)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><B><font SIZE=2>NASD</font></B><font size=2>&#148; means the National Association of Securities Dealers, Inc.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(71)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>&#147;Net Disposition Proceeds&#148;</font></b><font size=2> means the proceeds realized by the Partnership from the sale, refinancing or other disposition of Partnership Equipment, including insurance proceeds or lessee indemnity payments arising from the loss or destruction of the Equipment, less all Partnership liabilities.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(72)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Net Lease Provisions&#148;</font></b><font size=2> means contractual arrangements under which the lessee assumes responsibility for, and bears the cost of, insurance, taxes, maintenance, repair and operation of the leased asset and where the non-cancellable rental payments under the lease are absolutely net to the lessor. Notwithstanding, a lease may be deemed to contain net lease provisions even if some minor costs or responsibilities remain with the lessor or if the lessor retains the option to require and pay for a higher standard of care or a greater level of maintenance or insurance than would be imposed on the lessee under the terms of the lease.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(73)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Net Offering Proceeds</font></b><font size=2>&#148; means the Gross Offering Proceeds minus the Dealer-Manager Fees, Sales Commissions, Due Diligence Expenses and the Organization and Offering Expense Allowance payable by the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(74)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Net Unit Price</font></b><font size=2>&#148; means the Gross Unit Price less an amount equal to 7% of the Gross Unit Price (equivalent to the Sales Commission, which will not be paid on the sale) for each Unit or fraction thereof purchased by an Affiliated Limited Partner.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(75)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Net Worth</font></b><font size=2>&#148; means, for any Person subscribing for Units, the excess of total assets over total liabilities as determined by generally accepted accounting principles, but excluding home, home furnishings and automobiles. Provided, however, that with respect to the General Partner, &#147;Net Worth&#148; means the excess of total assets over total liabilities as determined by generally accepted accounting principles, except that if any of the assets have been depreciated, then the amount of depreciation relative to any particular asset may be added to the depreciated cost of the asset to compute total assets. The amount of depreciation may be added only to the extent that the amount resulting after adding depreciation does not exceed the fair market value of the asset.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(76)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Notice</font></b><font size=2>&#148; means a writing containing the information required by this Agreement to be communicated to any Person and delivered as follows:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>personally delivered to such Person;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>sent by registered, certified or regular mail, postage prepaid to such Person at the last known address of such Person; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>sent by facsimile, with receipt confirmed by telephone during normal business hours.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(77)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Offering</font></b><font size=2>&#148; means the offering of Units pursuant to the Prospectus.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(78)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Offering Period</font></b><font size=2>&#148; means the period from the Effective Date to the Termination Date of the Offering.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(79)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Operating Lease</font></b><font size=2>&#148; means a lease under which the aggregate noncancellable rental payments during the original term of the lease, on a net present value basis, are not sufficient to recover the entire Purchase Price of the Equipment subject to the lease.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(80)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Operations</font></b><font size=2>&#148; means all operations and activities of the Partnership except Sales.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(81)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Organization and Offering Expense Allowance</font></b><font size=2>&#148; means an amount equal to 3.0% of the Gross Offering Proceeds.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-8</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(82)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Organization and Offering Expenses</font></b><font size=2>&#148; means:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>all costs and expenses incurred in connection with, and in preparing the Partnership for, qualification under federal and state securities laws and the securities laws of any other jurisdiction in which Units may be offered or sold and subsequently offering and distributing the Units to the public (except Sales Commissions, Due Diligence Expenses, and Dealer-Manager Fees) including, without limitation:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>printing costs;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>registration and filing fees;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>attorneys&#146;, accountants&#146; and other professional fees; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the direct costs of salaries to, and expenses (including costs of travel) of, officers and directors of the General Partner or any Affiliate of the General Partner while engaged in organizing the Partnership and registering, offering and selling the Units.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(83)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Participant</font></b><font size=2>&#148; means the holder of a Unit or Partnership Interest.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(84)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Participant List</font></b><font size=2>&#148; means a list, in alphabetical order by name, setting forth the name, address and business or home telephone number of, and number of Units held by, each Limited Partner. The list shall be printed on white paper in a readily readable type size (in no event smaller than 10-point type) and shall be updated at least quarterly to reflect any changes in the information contained therein.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(85)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partner</font></b><font size=2>&#148; means the General Partner (including any Substitute General Partner) and any Limited Partner or Affiliated Limited Partner (including the Original Limited Partner and any Substitute Limited Partner).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(86)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partner Nonrecourse Debt</font></b><font size=2>&#148; means any Partnership nonrecourse liability for which any Partner bears the economic risk of loss within the meaning of Treas. Reg. Section 1.704-2(b)(4).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(87)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partner Nonrecourse Debt Minimum Gain</font></b><font size=2>&#148; has the meaning specified in Treas. Reg. Section 1.704-2(i)(3), and such additional amount as shall be treated as Partner Nonrecourse Minimum Gain pursuant to Treas. Reg. Section 1.704-2(j)(1)(iii).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(88)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partner Nonrecourse Deductions</font></b><font size=2>&#148; consist of those deductions and in those amounts specified in Treas. Reg. Sections 1.704-2(i)(2) and (j).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(89)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partnership</font></b><font size=2>&#148; means LEAF Equipment Leasing Income Fund III, L.P.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(90)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partnership Interest</font></b><font size=2>&#148; means the Units owned by a Limited Partner or the percentage interest in the Partnership held by the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(91)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partnership Loan</font></b><font size=2>&#148; means any loan made to the Partnership by the General Partner or any Affiliate of the General Partner in accordance with Section 9.2(c).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(92)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partnership Minimum Gain</font></b><font size=2>&#148; has the meaning specified in Treas. Reg. Sections 1.704-2(b)(2) and (d) and such additional amount as shall be treated as Partnership Minimum Gain pursuant to Treas. Reg. Section 1.704- 2(j)(1)(iii).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(93)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Partnership Nonrecourse Deductions</font></b><font size=2>&#148; consist of those deductions and in those amounts specified in Treas. Reg. Sections 1.704-2(c) and (j).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(94)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Payout</font></b><font size=2>&#148; means the time when the aggregate amount of cash distributions (from whatever sources) to a Limited Partner equals the amount of the Limited Partner&#146;s Capital Contribution plus the Cumulative Return compounded daily (in this case only) from a date not later than the last day of the calendar quarter in which the Limited Partner was admitted to the Partnership as a Limited Partner.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(95)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Person</font></b><font size=2>&#148; means any natural person, partnership, trust, corporation, limited liability company, association or other legal entity.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2></font></p>
<p align="center"><Font size="2" face="serif">A-9</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>












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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(96)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Program</font></b><font size=2>&#148; means a limited or general partnership, joint venture, unincorporated association or similar unincorporated organization formed and operated for the primary purpose of investment in, and the operation of, or gain from, an interest in equipment, equipment leases or related instruments.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(97)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Prospectus</font></b><font size=2>&#148; means the prospectus included as part of the Registration Statement, as supplemented or amended.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(98)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Purchase Price</font></b><font size=2>&#148; means, with respect to any Investment, the price paid by, or on behalf of, the Partnership for or in connection with the purchase, acquisition or funding of the Investment, including the amount of the related:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Acquisition Fees;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Acquisition Expenses; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>all liens and encumbrances on the Investment, but excluding points and prepaid interest.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><font size=2>&#147;Purchase Price&#148; also includes, with respect to options to acquire an Investment, the sum of the exercise price and the price paid to acquire the option.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Qualified Plan</font></b><font size=2>&#148; means a pension, profit-sharing or stock bonus plan, including Keogh Plans, meeting the requirements of Sections 401 et seq. of the Code, and its related trust.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Redemption</font></b><font size=2>&#148; means the purchase of a portion or all of any Limited Partner&#146;s Units by the Partnership under Section 13.5.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(101)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Registration Statement</font></b><font size=2>&#148; means the Registration Statement on Form S-1 filed by the Partnership with the Commission under the Securities Act in the form in which the Registration Statement is declared to be effective for the offer and sale of the Partnership&#146;s Units.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Reinvestment Period</font></b><font size=2>&#148; means the period beginning with the Initial Closing Date and ending five years after the Final Closing Date.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(103)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Re-Leasing Fee</font></b><font size=2>&#148; means, with respect to any Equipment, a fee payable to the General Partner for providing re-leasing services to the Partnership, not to exceed the lesser of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the competitive rate for comparable services for similar equipment; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>2% of gross rental revenues derived from the re-lease of the Equipment after the time that the re-lease of the Equipment has been consummated as a result of the efforts of the General Partner or its Affiliates.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Reserves</font></b><font size=2>&#148; means reserves established and maintained by the Partnership for working capital, contingent liabilities and the acquisition of Investments.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Roll-Up</font></b><font size=2>&#148; means any transaction involving the acquisition, merger, conversion or consolidation, either directly or indirectly, of the Partnership with, and the issuance of securities of, a Roll-Up Entity. The term does not include:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a transaction involving securities of the Partnership if they have been listed on a national securities exchange or traded through the NASDAQ Stock Market (National Market System) for at least 12 months; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a transaction involving only the conversion of the Partnership to corporate, trust or association form if, as a consequence of the transaction, there will be no significant adverse change in:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Limited Partners&#146; voting rights;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the term of existence of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the compensation of the General Partner or its Affiliates from the Partnership;</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-10</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>





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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(D)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Partnership&#146;s investment objectives; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(E)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the income taxation of the Partnership or the Limited Partners.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(106)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Roll-Up Entity</font></b><font size=2>&#148; means any partnership, corporation, trust, or other entity that is created by, or surviving after, the successful completion of a proposed Roll-Up transaction.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(107)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Sale</font></b><font size=2>&#148; means the sale, exchange, involuntary conversion, foreclosure, condemnation, taking, casualty (other than a casualty followed by refurbishing or replacement), or other disposition of an Investment.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(108)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Sales Commissions</font></b><font size=2>&#148; means, with respect to any Unit, an amount equal to 7% of the Gross Unit Price per Unit sold in the Offering.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(109)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Secured Loan&#148;</font></b><font size=2> means a loan or other extension of credit provided by the Partnership to a third-party end user to finance the end user&#146;s purchase of Equipment, with that Equipment being used as collateral for the repayment of the loan.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(110)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Securities Act</font></b><font size=2>&#148; means the Securities Act of 1933, as amended.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(111)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Selling Dealer</font></b><font size=2>&#148; means each member broker/dealer firm of the NASD that has been selected by the Partnership or the Dealer-Manager to offer and sell Units in the Offering and has entered into a Selling Dealer Agreement.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(112)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Selling Dealer Agreement</font></b><font size=2>&#148; means each of the agreements entered into between the Partnership or the Dealer-Manager and any Selling Dealer with respect to the offer and sale of Units.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(113)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>&#147;Specified Equipment Program&#148;</font></b><font size=2> means a Program where, at the time a securities registration is ordered effective, at least 75% of the net proceeds from the sale of program interests are allocable to the purchase or renovation of identified equipment or one specified type of identified equipment. Reserves shall not be included in the 75%.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Subordinated Remarketing Fee</font></b><font size=2>&#148; means, with respect to any Investment, a fee in the amount equal to the lesser of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>3% of the contract sales price applicable to the Investment; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>one-half of a brokerage fee that is reasonable, customary and competitive in light of the size, type and location of the Investment.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(115)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Subscription Account</font></b><font size=2>&#148; means the interest-bearing account established and maintained by the Partnership for the purpose of holding subscription funds received from Persons who may be admitted to the Partnership as Limited Partners on any Closing Date subsequent to the Initial Closing Date, pending the acceptance or rejection of their subscriptions by the General Partner.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Subscription Agreement</font></b><font size=2>&#148; means the subscription agreement substantially in the form filed as an exhibit to the Prospectus.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Substitute General Partner</font></b><font size=2>&#148; means any Assignee of or successor to the General Partner admitted to the Partnership in accordance with Section 12.5.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Substitute Limited Partner</font></b><font size=2>&#148; means any Assignee of Units who is admitted to the Partnership as a Limited Partner under Section 13.3.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Termination Date</font></b><font size=2>&#148; means the earliest of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the date on which the Maximum Offering has been sold;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>two years after the Effective Date (subject to the renewal, requalification or consent of each Administrator requiring the renewal, requalification or consent of the Offering with respect to the extension of the Offering Period beyond one year following the Effective Date in the Administrator&#146;s jurisdiction); or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any earlier date after the Effective Date as may be determined by the General Partner in its sole discretion.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Treasury Regulation</font></b><font size=2>&#148; or </font><b><font size=2>&#147;Treas. Reg.&#148;</font></b><font size=2> means final or temporary regulations issued by the United States Treasury Department pursuant to the Code.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Unit</font></b><font size=2>&#148; or </font><b><font size=2>&#147;Partnership Interest of a Limited Partner&#148;</font></b><font size=2> means a unit of Limited Partner interest in the Partnership held by any Limited Partner, including rights to profits, losses, income, gain, credits, deductions, cash distributions, returns of capital, voting rights and other attributes of the Units all as provided by, and subject to the terms and provisions of, this Agreement.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>&#147;</font><b><font size=2>Unpaid Cumulative Return</font></b><font size=2>&#148; means, as to any Limited Partner, the unpaid amount of the Limited Partner&#146;s Cumulative Return calculated through the date as of which the Unpaid Cumulative Return is being calculated, reduced (but not below zero) by the aggregate distributions previously made to the Limited Partner by the Partnership that are deemed to be a reduction of the Limited Partner&#146;s Unpaid Cumulative Return under Section 11.3(d)(i).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE II - FORMATION OF PARTNERSHIP</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>2.1 Formation of Partnership. </font></b><font size=2>The General Partner and the Original Limited Partner have previously formed the Partnership as a limited partnership under the Delaware Act. The General Partner and the Original Limited Partner hereby amend and restate in its entirety the original Agreement of Limited Partnership of the Partnership and agree that this Amended and Restated Agreement of Limited Partnership shall govern the rights and liabilities of the Partners, except as otherwise expressly provided in this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE III - NAME</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>3.1 Name. </font></b><font size=2>The business of the Partnership shall be conducted under the name &#147;LEAF Equipment Leasing Income Fund III, L.P.&#148; or such other name as the General Partner shall hereafter designate in writing to the Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE IV - PLACES OF BUSINESS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>4.1 Principal Place of Business. </font></b><font size=2>The principal office and place of business of the Partnership in Delaware shall be 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801. The General Partner may from time to time change the Partnership&#146;s principal place of business in Delaware and, in such event, the General Partner shall notify the Limited Partners of such change in writing no later than 60 days following the effective date of such change.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>4.2 Other Places of Business. </font></b><font size=2>The Partnership may maintain such other offices and places of business within or outside the State of Delaware as the General Partner deems advisable.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE V - NAMES AND ADDRESSES OF PARTNERS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>5.1 Names and Addresses of Partners. </font></b><font size=2>The name and address of the General Partner shall be as set forth in Section 19.1, and the names and addresses of the Limited Partners shall be as set forth in their respective Subscription Agreements, as the same may be supplemented or amended from time to time. Any Partner may change his, her or its respective place of business or residence, as the case may be, by giving Notice of such change to the Partnership (and, in the case of the General Partner, by also giving Notice thereof to all of the Limited Partners), which Notice shall become effective upon receipt by the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE VI - PURPOSES AND OBJECTIVES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>6.1 Purposes. </font></b><font size=2>The purpose and business of the Partnership are to:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>acquire, invest in, purchase, own, hold, lease, re-lease, finance, refinance, loan, borrow, manage, maintain, operate, improve, upgrade, modify, exchange, assign, encumber, create or receive security interests in, pledge, sell, transfer or otherwise dispose of, and in all respects otherwise deal in or with, Equipment, Equipment Leases and Secured Loans of all kinds; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>engage in any and all businesses and to do any and all things permitted to a limited partnership under the Delaware Act.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>6.2 Investment Objectives. </font></b><font size=2>The investment objectives of the Partnership in conducting its business shall be to:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>preserve, protect and return the Capital Contributions of the Partners;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>generate regular distributions sufficient to provide the Cumulative Return to the Limited Partners;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>enter into additional Equipment Leases and Secured Loans during the Reinvestment Period by borrowing funds, including securitizations, using the Partnership&#146;s Equipment, Equipment Leases and Secured Loans (or interests therein) as collateral as described in the &#147;Investment Objectives and Strategies &#150; Borrowing&#148; section of the Prospectus and reinvesting the Partnership&#146;s excess Distributable Cash after paying Partnership expenses, establishing appropriate Reserves and distributing the Cumulative Return to the Limited Partners; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>provide additional cash distributions to the Partners after the Reinvestment Period until all of the Partnership&#146;s Investments have matured and terminated on their own terms or have been sold or otherwise disposed of.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE VII - TERM</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>7.1 Term. </font></b><font size=2>The term of the Partnership began with the filing of its Certificate of Limited Partnership with the Secretary of State of the State of Delaware on May 16, 2006 and will end at midnight on December 31, 2031, unless sooner dissolved or terminated as provided in Article XIV of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE VIII - PARTNERS AND CAPITAL</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.1 General Partner. </font></b><font size=2>The General Partner has contributed $1,000 in cash as its Capital Contribution to the Partnership as consideration for its Partnership Interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.2 Original Limited Partner. </font></b><font size=2>The Original Limited Partner has made a capital contribution of $1.00 to the Partnership as consideration for 10 Units purchased by it. By its execution of this Agreement, the Original Limited Partner agrees to withdraw as Original Limited Partner, and the parties agree to return its capital contribution, and retire its original 10 Units, and restore its original 10 Units to the Maximum Offering, on the Initial Closing Date when additional Limited Partners are admitted to the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.3 Limited Partners and Maximum Offering. </font></b><font size=2>From and after the Initial Closing Date there shall be one class of Limited Partners, which includes Affiliated Limited Partners. The General Partner is hereby authorized to obtain capital for the Partnership through the offer and sale of up to 1,200,000 Units ($120 million) to the Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.4 Subscription Documents and Suitability. </font></b><font size=2>Any Person desiring to become a Limited Partner shall execute and deliver to the General Partner a Subscription Agreement and such other documents as the General Partner reasonably requests. These documents shall be in form and substance reasonably satisfactory to the General Partner. Among other things, each Person shall, subject to acceptance of his subscription by the General Partner, agree to be bound by all of the terms and provisions of this Agreement. Units shall be sold only to Persons:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>who represent that they have either:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an annual gross income of at least $45,000 and a Net Worth of at least $45,000; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a Net Worth of at least $150,000; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>who satisfy the suitability standards applicable in the state or other jurisdiction of their residence or domicile as set forth in the Prospectus, if those standards are more stringent than the standards described in clause (i) above.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2><b>8.5</b>
  </font><b><font size=2>Payment of Subscription Price of Units and Limited Partners&#146;
  Right (Other Than Residents of Ohio) to Elect to Use Cash Distributions to Purchase
  Units.</font></b><font size=2> At the time of subscribing each Limited Partner
  (other than an Affiliated Limited Partner) shall make a Capital Contribution,
  in cash, in an amount equal to the Gross Unit Price for each Unit, or portion
  of a Unit, purchased. At the time of subscribing each Affiliated Limited Partner
  shall make a Capital Contribution, in cash, in an amount equal to the Net Unit
  Price for each Unit, or portion of a Unit, purchased.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Notwithstanding the foregoing:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Each Limited Partner (except Ohio residents) may elect on his Subscription Agreement to have his Partnership distributions reinvested in additional Units during the Offering Period, to the extent that Units are available for purchase, on the same terms as the purchase of the Limited Partner&#146;s original Units, other than the minimum required number of Units. In particular, the purchase price of these additional Units shall be the same price the Limited Partner paid for his original Units, either the Gross Unit Price or the Net Unit Price.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Each Limited Partner (except Ohio residents) who has previously invested in any Program sponsored by the General Partner or its Affiliates may elect on his Subscription Agreement to have his cash distributions from one or more of the Affiliated Programs invested in Units during the Offering Period, to the extent that Units are available for purchase, on the same terms as the Units are being offered to other prospective Limited Partners, except that the minimum number of Units required to be purchased by Limited Partners under Section 8.6, below, shall not apply to these Limited Partners. In particular, the purchase price of the Units shall either be the Gross Unit Price or the Net Unit Price as applicable to that subscriber.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.6 Minimum Subscription Amount. </font></b><font size=2>Subject to exceptions for certain classes of Limited Partners described in Section 8.5, above, each Limited Partner must purchase a minimum of 50 Units unless a greater minimum number of Units is required by the Administrator of the Limited Partner&#146;s state or other jurisdiction of residence.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.7 Subscriptions for Units by General Partner and its Affiliates. </font></b><font size=2>The General Partner and any Affiliate of the General Partner shall have the right to subscribe for Units for its own account for investment purposes only; provided that the aggregate number of Units purchased by the General Partner and its Affiliates collectively shall not exceed approximately 5% of all Units sold.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.8 Partnership Closings. </font></b><font size=2>No subscribers shall be admitted to the Partnership unless and until the Minimum Offering shall be achieved. Upon the determination by the General Partner that the Minimum Offering has been achieved, the General Partner shall set the Initial Closing Date. Following the Initial Closing Date, weekly Closings will be held. The General Partner shall notify each subscriber whose subscription has been accepted by the General Partner as promptly as practical of such subscriber&#146;s admission as a Limited Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.9 Acceptance of Units. </font></b><font size=2>Subscriptions for Units shall promptly be accepted or rejected by the General Partner after their receipt by the Partnership (but in any event not later than 30 days thereafter) and a confirmation of acceptance sent by the General Partner. The General Partner shall have the unconditional right to refuse to admit any subscriber as a Limited Partner. Each subscriber has the right to cancel his or her subscription before it has been accepted by the General Partner by providing written notice to the General Partner, signed by each subscriber, of their intent to cancel, in a form satisfactory to the General Partner. The Partnership may not complete a sale of Units to any Limited Partner until at least five business days after the date the Limited Partner received a final Prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.10 Admission to Partnership as Limited Partners. </font></b><font size=2>Each Person whose subscription is accepted by the General Partner shall be admitted to the Partnership as a Limited Partner, and shall for all purposes of this Agreement become and be treated as a Limited Partner, not later than 15 days after the Initial Closing Date or, thereafter, the last day of the calendar month following the date the subscription was accepted by the Partnership. The amount of the Capital Contribution made by each Limited Partner shall be set forth on the Partnership&#146;s books and records, which shall be supplemented or amended from time to time promptly following each Closing Date to reflect the name, address and Capital Contribution of each Limited Partner admitted to the Partnership as a result of such Closing; provided that any failure so to attend to such books and records following any Closing Date
shall not in any way affect the admission of any Limited Partner to the Partnership for all purposes of this Agreement if such Limited Partner was admitted to the Partnership at such Closing.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.11 Escrow Account and Subscription Account. </font></b><font size=2>The General Partner shall establish the Escrow Account and the Subscription Account. From the date hereof to, but not including, the Initial Closing Date, all subscription funds shall be deposited in the Escrow Account. From and after the Initial Closing Date, all subscription funds shall be held by the Partnership in the Subscription Account until the release thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On the Initial Closing Date or any subsequent Closing Date, all Gross Offering Proceeds then held in the Escrow Account or any Subscription Account, as the case may be, with respect to Units purchased by any Person admitted to the Partnership as a result of such Closing, together with any interest earned thereon, shall be released to the Partnership. The Partnership shall pay such interest to the Limited Partners, as their interests may appear, within at least 60 days after the applicable Closing Date. Subscription funds deposited by any Person whose subscription is rejected by the General Partner shall be promptly returned to that Person, together with any interest earned thereon and without deduction for any fees. In no event shall any Gross Offering Proceeds be held in the Escrow Account or a Subscription Account beyond the Termination Date before either being released to the Partnership upon a Closing or,
if the Minimum Offering has not been achieved, returned to the subscriber with any interest earned thereon and without deduction for any fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.12 Separate Escrow Account for Residents of Iowa and Pennsylvania. </font></b><font size=2>Notwithstanding any provision to the contrary in this Agreement, subscription funds received from residents of Iowa and Pennsylvania shall be held in a separate Escrow Account by the Escrow Agent on the terms set forth in the Escrow Agreement, and shall not be used in computing the Minimum Offering. At such time as subscriptions for 60,000 Units ($6 million) have been received and accepted by the Partnership, including the subscription funds of Iowa and Pennsylvania residents whose subscriptions have been accepted by the General Partner, the subscription funds of the Iowa and Pennsylvania residents whose subscriptions have been accepted shall be released from the Escrow Account to the Partnership and those Iowa and Pennsylvania residents shall be admitted to the Partnership as Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.13 Partnership Capital</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.13(a). No Interest Paid on Capital Contributions</font></b><font size=2>. No Partner shall be paid interest on any Capital Contribution, except for interest earned on subscription funds deposited in the Escrow Account before the Initial Closing Date or any Subscription Account as provided in Section 8.11.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.13(b). No Limited Partner Right to Withdraw</font></b><font size=2>. In addition to the redemption of the Original Limited Partner&#146;s Units, the Partnership may Redeem Units presented by Limited Partners for Redemption pursuant to Section 13.5 in the General Partner&#146;s sole discretion. No Partner shall have the right to otherwise withdraw or receive any return of such Partner&#146;s Capital Contribution, except as specifically provided in this Agreement, and no Capital Contribution shall be returned by the Partnership to any Partner in the form of any property other than cash.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.13(c). No Limited Partner Priority</font></b><font size=2>. Except as otherwise specifically provided in this Agreement, no Limited Partner shall have priority over any other Limited Partner as to:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the return of such Limited Partner&#146;s Capital Contribution or Capital Account;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>such Limited Partner&#146;s share of Income and Losses; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>such Limited Partner&#146;s share of Distributable Cash.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.13(d). No General Partner Personal Liability for Repayment</font></b><font size=2>. Neither the General Partner nor any Affiliate of the General Partner shall have any personal liability for the repayment of the Capital Contribution of any Limited Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14 Capital Accounts</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(a). Separate Capital Account</font></b><font size=2>. A separate Capital Account shall be established and maintained for the General Partner and for each Limited Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(b). General Partner&#146;s Initial Capital Account</font></b><font size=2>. The Capital Account of the General Partner initially shall be $1,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(c). Limited Partner&#146;s Initial Capital Account</font></b><font size=2>. The Capital Account of each Limited Partner initially shall be such Limited Partner&#146;s Capital Contribution.</font></p>


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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(d). Increases to Capital Account</font></b><font size=2>. The Capital Account of each Partner shall be increased by:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the amount of any additional money contributed by such Partner to the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the fair market value of any property contributed by such Partner to the Partnership (net of liabilities secured by such contributed property that the Partnership is considered to assume under Code Section 752); and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>allocations to such Partner of Income (or items thereof), including but not limited to items of income and gain specially allocated pursuant to Section 11.2(f).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(e). Decreases to Capital Account</font></b><font size=2>. The Capital Account of each Partner shall be decreased by:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the amount of money distributed to or on behalf of such Partner by the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the fair market value of any property distributed to or on behalf of such Partner by the Partnership (net of liabilities secured by such distributed property that such Partner is considered to assume under Code Section 752); and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>allocations to such Partner of Partnership Losses (or items thereof), including but not limited to items of loss and deduction specially allocated pursuant to Section 11.2(f).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(f). General Partner&#146;s Single Capital Account</font></b><font size=2>. For purposes of this Agreement, a General Partner who also owns Units as a Limited Partner shall have a single Capital Account that reflects both its General Partner and Limited Partner interests in the Partnership, regardless of the time or manner in which such interests were acquired.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(g). General Partner&#146;s Capital Account on Sales</font></b><font size=2>. If the Partnership Interest of a General Partner or a Unit is sold or otherwise transferred, the Capital Account of the transferor with respect to the Partnership Interest or the Unit transferred shall carry over to the transferee in accordance with Treas. Reg. Section 1.704-1(b)(2)(iv)(l). However, if the transfer causes a termination of the Partnership under Code Section 708(b)(1)(B), the Capital Account that carries over to the transferee shall be adjusted in accordance with the constructive contribution and liquidation rules under Treas. Reg. Section 1.708-1.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(h). Section 754 Election</font></b><font size=2>. For any taxable year in which the Partnership has a Code Section 754 election in effect, the Capital Accounts shall be maintained in accordance with Treas. Reg. Section 1.704-1(b)(2)(iv)(m). The Partnership shall not be required to make any elections pursuant to Code Section 754.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(i). Revaluation</font></b><font size=2>. Upon the occurrence of the events specified in Treas. Reg. Section 1.704-1(b)(2)(iv)(f), the Partners&#146; Capital Accounts shall be adjusted and thereafter maintained to reflect the revaluation of Partnership assets on the books of the Partnership in accordance with such Treasury Regulation and Treas. Reg. Sections 1.704-1(b)(2)(iv)(f) through (h).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.14(j). Capital Accounts Maintained in Accordance with Treasury Regulations</font></b><font size=2>. Notwithstanding anything herein to the contrary, the Partners&#146; Capital Accounts shall at all times be maintained in the manner required by Treas. Reg. Section 1.704-1(b)(2)(iv), and any questions or ambiguities arising under this Agreement shall be resolved by reference to such Treasury Regulations. Further, such Treasury Regulations shall govern the maintenance of the Capital Accounts to the extent this Agreement does not provide for the treatment of a particular item. In the event Treas. Reg. Section 1.704-1(b)(2)(iv) does not provide for a particular item, such Capital Account adjustments shall be made in a manner that is consistent with the underlying economic arrangement of the Partners based, wherever practicable, on federal tax accounting principles.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.15 Limitations on Additional Capital Contributions</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.15(a). Additional Capital Contributions of General Partner</font></b><font size=2>. The General Partner shall not be required to make any Capital Contribution in addition to its initial $1,000 Capital Contribution except pursuant to and in accordance with Section 14.2(c)(ii) of this Agreement.</font></p>
<b><font size=2>8.15(b). Additional Capital Contributions of Limited Partners</font></b><font size=2>. No Limited Partner shall be required to make any Capital Contribution in addition to the Capital Contribution required under Section 8.3(c).</font>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>8.16
  Loans by Partners. </font></b><font size=2>Except as provided otherwise in Section
  14.2(c)(ii), no loan by any Partner or any Affiliate of any Partner to the Partnership
  (including, without limitation, any Partnership Loan) shall constitute a Capital
  Contribution to the Partnership or increase the Capital Account balance of any
  Partner, but shall be treated, for all purposes, as Indebtedness of the Partnership
  payable or collectible only out of the assets of the Partnership in accordance
  with the terms and conditions upon which such loan was made.</font></p>



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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE IX - POWERS, RIGHTS AND DUTIES OF GENERAL PARTNER</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.1 Extent of Powers and Duties </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.1(a). General.</font></b><font size=2> Except as expressly limited by the provisions of this Agreement, the General Partner shall have complete and exclusive discretion to manage and control the affairs and business of the Partnership and may employ all powers necessary, convenient or appropriate to carry out the purposes, conduct the business and exercise the powers of the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner shall have fiduciary responsibility for the safekeeping and use of all funds and assets of the Partnership, whether or not in the General Partner&#146;s immediate possession or control.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.1(b). Powers and Duties.</font></b><font size=2> Pursuant to the authority granted in this Section 9.1, and subject only to the limitations otherwise provided in this Agreement, the General Partner&#146;s powers and duties shall include, but not be limited to, the following:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to acquire, invest in, purchase, own, hold, lease, re-lease, finance, refinance, borrow, loan, manage, maintain, operate, improve, upgrade, modify, exchange, assign, encumber, create and receive security interests in, pledge, sell, transfer or otherwise dispose of, and in all respects otherwise deal in or with, Investments and other tangible or intangible property (including securities, debt instruments, contract rights, lease rights, equity interests and, to the extent permitted by Section 9.1(b)(xviii), joint ventures), and to contract with others to do the same on behalf of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to select and supervise the activities of any Equipment management agents for the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to assure the proper application of revenues of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to maintain proper books of account for the Partnership and to prepare reports of operations and tax returns required to be furnished to the Partners pursuant to this Agreement or to taxing bodies or other governmental agencies, including Administrators, in accordance with applicable laws and regulations;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to enter into the Dealer-Manager Agreement with the Dealer-Manager to select Selling Dealers to offer and sell Units;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to invest any and all funds held by the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(vii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to designate depositories of the Partnership&#146;s funds, and establish the terms and conditions of such deposits and drawings thereon;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(viii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to enter into Financing Transactions and otherwise to borrow money or procure extensions of credit for the Partnership (except that neither the Partnership nor the General Partner shall borrow money solely for the purpose of making Cash Distributions during the Reinvestment Period that the Partnership would otherwise be unable to make) and, in connection therewith, to execute, seal, acknowledge and deliver agreements, promissory notes, guarantees and other written documents evidencing Financing Transactions or constituting obligations or evidences of Indebtedness and to pledge, hypothecate, mortgage, assign, transfer or convey mortgages or security interests in Investments or any other assets of the Partnership as security therefor;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ix)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to hold all or any portion of the Investments and other assets of the Partnership in the name of one or more trustees, nominees, or other entities or agents of or for the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(x)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to acquire and enter into any contract which the General Partner deems necessary or appropriate for the protection of the Partnership and (subject to Sections 9.2(b), 9.2(c) and 9.2(g)) the General Partner, for the conservation of Partnership assets, or for any purpose convenient or beneficial to the Partnership;</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-17</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>





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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xi)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to employ agents, employees, managers, accountants, attorneys, consultants and other persons in the operation and management of the business of the Partnership including, but not limited to, Affiliates of the General Partner, supervisory managing agents, management agents, and lease, loan or securities brokers, on such terms and for such compensation as the General Partner shall determine, provided, however, that, with respect to services provided by the General Partner or its Affiliates, compensation for such services shall be limited as specifically set forth in this Agreement;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to cause the Partnership to make or revoke any of the elections referred to in Sections 108, 732, 754 and 1017 of the Code or any similar provisions enacted in lieu thereof;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xiii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to select as the accounting year for the Partnership the calendar year or such other fiscal year as may be permitted under the Code or approved by the IRS;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xiv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to determine the accounting method or methods to be used by the Partnership (the Partnership intends initially to use the accrual method of accounting in maintaining its books and records) in accordance with the Code;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to require in all Partnership obligations to any Person other than a Limited Partner, as such, that the General Partner shall not have any personal liability thereon, but that the person or entity contracting with the Partnership must look solely to the Partnership and its assets for satisfaction;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xvi)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to invest temporarily the Gross Offering Proceeds or Net Offering Proceeds in short term, highly liquid investments where there is appropriate safety of principal, before such funds are used to make or acquire Investments;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xvii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to execute or sign, individually or jointly, a check or certificate on behalf of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xviii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to cause the Partnership to invest in a joint venture to own one or more Investments with any one or more Affiliated Programs if the General Partner determines, in its sole discretion, that:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>doing so would be in the best interest of the Partnership and the Affiliated Program;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Partnership and the Affiliated Program would have substantially identical investment objectives;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>there would be no duplicate fees;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(D)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the compensation of the sponsor of the Affiliated Program would be substantially identical to the compensation of the General Partner from the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(E)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Partnership would have the right of first refusal to purchase any Investment jointly owned with the Affiliated Program that the Affiliated Program wishes to sell;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(F)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the respective investments in the Investment by the Partnership and the Affiliated Program would be on substantially the same terms and conditions; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(G)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the joint venture would be entered into either for the purpose of effecting appropriate diversification for the Partnership and the Affiliated Program, or for the purpose of relieving the General Partner or its Affiliates from a commitment entered into pursuant to Section 9.2(b);</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xix)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to pay, extend, renew, modify, adjust, submit to arbitration, prosecute, defend or compromise, upon such terms as it may determine and upon such evidence as it may deem sufficient, any obligation, suit, liability, cause of action or claim, including those relating to federal, state or local taxation, either in favor of or against the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xx)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to establish and maintain Reserves for such purposes and in such amounts, and to increase or reduce such amounts, as it deems appropriate from time to time, but initially the Partnership&#146;s Reserves shall not be less than an amount equal to 1% of the Gross Offering Proceeds;</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-18</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>




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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxi)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>subject to Section 8.3, to do all things necessary or advisable, in its sole discretion, to effect the admission of the Limited Partners, including, but not limited to, registering the Units under the Securities Act and effecting the qualification of, or obtaining exemptions from the qualification of, the Units for sale with Administrators, and determining that the purchase of Units is a suitable and appropriate investment for each Limited Partner, based on information provided by each Limited Partner regarding his financial situation and investment objectives;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to enter into the Escrow Agreement on behalf of the Partnership and provide for such compensation to the Escrow Agent as the General Partner may deem reasonable under the circumstances, which compensation shall be deemed to be and shall constitute an Organization and Offering Expense payable by the General Partner;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxiii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to cause the Partnership to Redeem, or elect not to Redeem, Units, in its sole discretion, on request therefor by a Limited Partner as provided in Section 13.5;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxiv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to cause the Partnership to obtain and pay the premiums with respect to insurance policies covering such risks as the General Partner deems reasonably necessary to protect the interests of the Partnership; provided that the General Partner, its Affiliates and their respective employees and agents may be named as additional insured parties thereunder only if the cost of premiums payable by the Partnership is not increased thereby or if the additional cost, if any, is paid by the General Partner and its Affiliates; and provided further, that the Partnership shall not incur or assume the cost of any portion of any insurance which insures any party against any liability the indemnification of which is prohibited by Section 9.3(b);</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>during the Reinvestment Period, but subject to the limitations and requirements of Section 11.1(b), to reinvest all or a substantial portion of the Partnership&#146;s Distributable Cash in additional Investments;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxvi)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>subject to Section 9.2(m), to enter into on behalf of the Partnership arrangements with itself or its Affiliates to provide services for the Partnership, if necessary, in addition to those provided for under this Agreement or the Origination and Servicing Agreement, which additional arrangements must meet the following criteria:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the compensation, price or fee charged for providing such services must be comparable and competitive with the compensation, price or fee of any other Person who is rendering comparable services or selling or leasing comparable goods and materials which could reasonably be made available to the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the fees and other terms of the contract shall be fully disclosed; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner or its Affiliate providing the services must be independently engaged in the business of providing those services to Persons other than Affiliates of the General Partner; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(xxvii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>to take all such actions and execute all such documents and other instruments as the General Partner may deem necessary, convenient or advisable to accomplish or further the purposes or objectives of the Partnership or to protect and preserve Partnership assets.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.1(c). Delegation of Powers</font></b><font size=2>. Except as otherwise provided under this Agreement or by law, the General Partner may, in its sole discretion, delegate all or any of its duties under this Agreement to, and may elect, employ, contract or deal with, any Person, including any Affiliate of the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.1(d). Reliance by Third-Parties</font></b><font size=2>. No Person dealing with the Partnership or its Investments or other assets, whether as assignee, lessee, purchaser, borrower, mortgagee, grantee or otherwise, shall be required to investigate the authority of the General Partner in selling, assigning, leasing, mortgaging, conveying or otherwise dealing with any Investments or other assets or any part thereof, nor shall any such assignee, lessee, purchaser, mortgagee, grantee or other Person entering into a contract with the Partnership be required to inquire as to whether the approval of the Partners for any such assignment, lease, sale, mortgage, transfer or other transaction has been first obtained. Any such Person shall be conclusively protected in relying upon a certificate of authority or of any other material fact signed by the General Partner, or in accepting any instrument signed by the
General Partner in the name and on behalf of the Partnership or the General Partner. </font></p>
<p align="center"><Font size="2" face="serif">A-19</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>









<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2 Limitations on the Exercise of Powers of General Partner. </font></b><font size=2>The General Partner shall have no power to take any action prohibited by this Agreement or by the Delaware Act. Furthermore, the General Partner shall be subject to the following in the administration of the Partnership&#146;s business and affairs:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(a). Investment Company Status</font></b><font size=2>. The General Partner shall use its best efforts to assure that the Partnership shall not be deemed to be an &#147;investment company&#148; within the meaning of the Investment Company Act of 1940, as amended.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(b). Sales and Leases of Investments from or to the General Partner and its Affiliates</font></b><font size=2>. The Partnership shall neither purchase nor lease Investments from, nor sell or lease Investments to, the General Partner, any Affiliate of the General Partner or any Affiliated Program (including any Investment in which the General Partner or any of its Affiliates has an interest) except as provided in this Section 9.2(b). Notwithstanding the foregoing, the Partnership may purchase Investments from the General Partner or any of its Affiliates (but not including an Affiliated Program) if:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner determines, in its sole discretion, that making the Investment is in the best interests of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Investment is purchased by the Partnership at a Purchase Price that does not exceed the sum of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the cost to the General Partner or the Affiliate of acquiring and holding the Investment (as determined under United States generally accepted accounting principles and as adjusted for any income received, capital or investment returned and reasonable and necessary expenses paid or incurred while holding the Investment); plus</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any compensation to which the General Partner and any Affiliate of the General Partner is entitled to under this Agreement;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>there is no difference in the interest terms of any Indebtedness secured by the Investment at the time it is acquired by the General Partner or such Affiliate and the time it is acquired by the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>neither the General Partner nor any Affiliate of the General Partner receives any other benefit, other than compensation permitted by this Agreement, as a result of the Partnership purchasing the Investment; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>at the time of transfer thereof to the Partnership, the General Partner or such Affiliate had held such Investment on a temporary or interim basis (generally not longer than 6 months) for the purposes of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>facilitating the acquisition of such Investment by the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>borrowing money or obtaining financing for the Partnership; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any other lawful purpose related to the business of the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(c). Loans to or from the General Partner and its Affiliates</font></b><font size=2>. No loans may be made by the Partnership to the General Partner or any Affiliate of the General Partner. The General Partner or any Affiliate of the General Partner may loan or advance funds to the Partnership provided that:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>any interest or other financing charges or fees payable by the Partnership in connection with the loan shall not exceed the lesser of the following:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the rate of interest and other amounts paid or payable by the General Partner or the Affiliate in connection with the loan (if the General Partner or the Affiliate borrowed money for the specific purpose of making the loan); or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the rate of interest and other amounts that would be charged to the Partnership (without reference to the General Partner&#146;s or the Affiliate&#146;s financial abilities or guarantees) by unrelated lending institutions on a comparable loan for the same purpose in the same geographic area (if neither the General Partner nor the Affiliate borrowed money to make the loan); and</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-20</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>all payments of principal and interest on the loan must be due and payable within 12 months after the date on which the loan is made.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If the General Partner or any Affiliate of the General Partner purchases an Investment in its own name and with its own funds in order to facilitate the ultimate purchase of the Investment by the Partnership, the General Partner or the Affiliate, as the case may be, shall be deemed to have made a loan to the Partnership in the amount of the Purchase Price and shall be entitled to receive interest on that amount in accordance with clause (i) above. However, any advances made by the General Partner or any Affiliate of the General Partner for the purpose of paying Organization and Offering Expenses shall not constitute a loan to the Partnership. Instead, those advances shall be reimbursed to the General Partner or the Affiliate (to the extent possible) from the Organization and Offering Expense Allowance without interest thereon in accordance with, and to the extent provided in, Section 9.4(e).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(d). No Exchange of Partnership Units for Investments</font></b><font size=2>. The Partnership shall not acquire any Investments in exchange for Units.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(e). Roll-Ups</font></b><font size=2>. Any proposal that the Partnership enter into a Roll-Up shall require the Consent of a Majority Interest. The Partnership shall not reimburse the sponsor of a proposed Roll-Up for the costs of its proxy contest, nor bear any other costs of the transaction if the Roll-Up is not approved by a Majority Interest. Any proposed Roll-Up shall also be subject to the following:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>An Appraisal of all Partnership assets shall be obtained from a competent, Independent Expert. If the appraisal will be included in a prospectus used to offer the securities of a Roll-Up Entity, the appraisal shall be filed with the Commission and applicable Administrators as an exhibit to the registration statement for the offering. Partnership assets shall be appraised on a consistent basis. The appraisal shall be based on an evaluation of all relevant information, and shall indicate the value of the Partnership&#146;s assets as of a date immediately prior to the announcement of the proposed Roll-Up transaction. The appraisal shall assume an orderly liquidation of Partnership assets over a 12-month period. The terms of the engagement of the Independent Expert shall clearly state that the engagement is for the benefit of the Partnership and its Limited Partners. A summary of the
independent appraisal, indicating all material assumptions underlying the appraisal, shall be included in a report to the Limited Partners in connection with a proposed Roll-Up transaction.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The Person sponsoring the Roll-Up transaction shall offer to Limited Partners who vote &#147;no&#148; on the proposal the choice of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>accepting the securities offered in the proposed Roll-Up transaction; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>one of the following:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>remaining as Limited Partners, and preserving their Units in the Partnership on the same terms and conditions as existed previously; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>receiving cash in an amount equal to the Limited Partners&#146; pro-rata share of the appraised value of the net assets of the Partnership.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The Partnership shall not participate in any proposed Roll-Up transaction which would result in Limited Partners having voting rights which are less than those provided for under this Agreement. If the Roll-Up Entity is a limited partnership, the voting rights of Limited Partners shall correspond to the voting rights provided for in this Agreement to the greatest extent possible.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The Partnership shall not participate in any proposed Roll-Up transaction which includes provisions which would operate to materially impede or frustrate the accumulation of shares by any purchaser of the securities of the Roll-Up Entity (except to the minimum extent necessary to preserve the tax status of the entity). The Partnership shall not participate in any proposed Roll-Up transaction which would limit the ability of a Limited Partner to exercise the voting rights of the securities of the Roll-Up Entity on the basis of the number of Units held by that Limited Partner.</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-21</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The Partnership shall not participate in any proposed Roll-Up transaction in which Limited Partners&#146; rights of access to the records of the Roll-Up Entity will be less than those provided for under this Agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(f). No Exclusive Listings</font></b><font size=2>. No exclusive listing for the sale of Investments, or of any other Partnership assets, shall be granted to the General Partner or any Affiliate of the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(g). Other Transactions Involving the General Partner and its Affiliates</font></b><font size=2>. Except as specifically permitted by this Agreement, including but not limited to the Origination and Servicing Agreement, Section 9.1(b)(xxviii) and Subsection (m) below, the General Partner shall not enter into any agreements, contracts or arrangements on behalf of the Partnership with the General Partner, any Affiliate of the General Partner or any Affiliated Program.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Except as permitted by Section 9.4, neither the General Partner nor any Affiliate of the General Partner shall receive, directly or indirectly, a commission or fee in connection with the reinvestment of Distributable Cash in new Investments.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Neither the General Partner nor any of its Affiliates may receive any rebates or &#147;give-ups,&#148; nor may the General Partner or any of its Affiliates participate in any reciprocal business arrangements that could have the effect of circumventing any of the provisions of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(h). Payments to Investor Advisors</font></b><font size=2>. Neither the General Partner nor any Affiliate of the General Partner shall, directly or indirectly, pay or award any commissions or other compensation to any Person engaged by a potential investor as an investment advisor as an inducement to such Person to advise the potential investor concerning the Units. Provided, however, this Section 9.2(h) shall not prohibit the payment to any such Person of the Dealer-Manager Fees, Sales Commissions, and Due Diligence Expenses in accordance with the terms of this Agreement and the Dealer-Manager Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(i). Sale of All or Substantially All Assets; Dissolution</font></b><font size=2>. During the Reinvestment Period, the General Partner may not dissolve the Partnership or sell or otherwise dispose of all or substantially all of the assets of the Partnership without the Consent of a Majority Interest, except that the General Partner may sell all or substantially all of the Partnership&#146;s assets as part of a Financing Transaction on behalf and for the benefit of the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(j). No Investments in or Underwriting of Interests of Other Programs</font></b><font size=2>. The Partnership shall not invest in or underwrite the equity interests of any other Program; provided, however, that nothing herein shall preclude the Partnership from making investments in joint ventures to the extent and in the manner provided in Section 9.1(b)(xviii).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(k). Use of Partnership&#146;s Assets</font></b><font size=2>. The General Partner shall not employ, nor permit any other Person to employ, the Partnership&#146;s funds or assets in any manner except for the exclusive benefit of the Partnership. In addition, the Partnership shall not invest from time to time more than 30% of its funds and assets, including but not limited to Capital Contributions and the proceeds of Financing Transactions then available for investment, in Secured Loans.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(l). Fiduciary Duty to Limited Partners</font></b><font size=2>. Neither the General Partner nor any Affiliate shall permit a Limited Partner to contract away the fiduciary duty owed to the Limited Partner by the General Partner or its Affiliates under Delaware law and, to the extent applicable, common law.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.2(m). Contracts for Goods and Services</font></b><font size=2>. All services or goods for which the General Partner or any of its Affiliates is to receive compensation which are not otherwise described in this Agreement or the Origination and Servicing Agreement shall be embodied in a written contract which precisely describes the services to be rendered and all compensation to be paid. Other than contracts specifically authorized under this Agreement, including without limitation the Origination and Servicing Agreement, the contract may only be modified by a Majority vote of the Limited Partners, and the contract shall contain a clause allowing its termination without penalty by a Majority vote of the Limited Partners on 60 days&#146; notice to the General Partner or its Affiliates, as the case may be.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.3 Limitation on Liability of General Partner and its Affiliates; Indemnification </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.3(a). Limitation on General Partner&#146;s Liability</font></b><font size=2>. Neither the General Partner nor any Affiliate of the General Partner shall have any liability to the Partnership or to any Partner for any loss suffered by the Partnership or the Limited Partners that arises out of any action or inaction of the General Partner or its Affiliates if:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner and its Affiliates determined in good faith that the course of conduct was in the best interest of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner and its Affiliates were acting on behalf of, or performing services for, the Partnership; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the course of conduct did not constitute negligence or misconduct of the General Partner or its Affiliates.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.3(b). Indemnification of General Partner</font></b><font size=2>. The General Partner and its Affiliates shall be indemnified by the Partnership against any losses, judgments, liabilities, expenses, and amounts paid in settlement of any claims sustained by them in connection with the Partnership, provided that:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner and its Affiliates determined in good faith that the course of conduct that caused the loss or liability was in the best interest of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner and its Affiliates were acting on behalf of, or performing services for, the Partnership; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the course of conduct was not the result of negligence or misconduct of the General Partner or its Affiliates.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.3(c). Securities Act Liability</font></b><font size=2>. Notwithstanding the above, the General Partner and its Affiliates, including the Dealer-Manager, and any Person acting as a broker-dealer, including the Selling Dealers, shall not be indemnified by the Partnership for any losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws unless:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>there has been a successful adjudication on the merits of each count involving securities law violations as to the particular indemnitee and a court of competent jurisdiction has approved indemnification of the litigation costs; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee and a court of competent jurisdiction has approved indemnification of the litigation costs; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee and a court of competent jurisdiction has found that indemnification of the settlement and related costs should be made.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In any claim for indemnification for federal or state securities law violations, the party seeking indemnification shall apprise the court of the position of the Commission and, if a position be taken by it, the Administrator in any jurisdiction in which Units have been sold, with respect to the issue of indemnification for securities law violations before seeking the court&#146;s approval for the indemnification.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.3(d). Insurance</font></b><font size=2>. Any amounts payable pursuant to this Section 9.3 shall be recoverable solely out of the assets of the Partnership and not from the Limited Partners. The Partnership shall not incur the cost of that portion of any insurance which insures any party against any liability the indemnification of which is herein prohibited; provided, however, that with respect to public liability insurance obtained by the Partnership in connection with any Investment or operations of the Partnership, the General Partner shall be permitted to add itself as an additional insured thereunder so long as and to the extent that the General Partner shall pay for the incremental premium costs resulting from its being added as an additional insured, if any.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>For purposes of this Section 9.3, &#147;public liability insurance&#148; shall include insurance which would cover damage to property or personal injury to non-affiliated persons incurred during the performance of services related to the Partnership and its operations.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4 Compensation of General Partner and its Affiliates. </font></b><font size=2>Neither the General Partner nor any of its Affiliates shall receive any compensation except in accordance with this Section 9.4, Section 9.1(b)(xxvii), Section 9.2(m), Section 14.2, and Section 15.9.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(a). Allocations and Distributions</font></b><font size=2>. The General Partner shall be entitled to receive the allocations and distributions provided in Article XI and Article XIV with respect to its Partnership Interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(b). Dealer-Manager Fees</font></b><font size=2>. Dealer-Manager Fees shall be paid by the Partnership to the Dealer-Manager for each Unit sold.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(c). Sales Commissions</font></b><font size=2>. Sales Commissions shall be paid by the Partnership to the Dealer-Manager, all or a portion of which the Dealer-Manager may reallow to the Selling Dealers for the respective Units sold by each of them at the Gross Unit Price, but no Sales Commissions shall be payable by the Partnership for any Units sold by any Person to Affiliated Limited Partners at the Net Unit Price.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(d). Due Diligence Expenses</font></b><font size=2>. Due Diligence Expenses shall be paid by the Partnership to the Dealer-Manager, all of which the Dealer-Manager shall reallow to the Selling Dealers for the respective Due Diligence Expenses incurred by each of them; provided that no Due Diligence Expenses shall be payable by the Partnership to the Dealer-Manager for any Units sold to the General Partner and its Affiliates, or any Units sold through the officers and directors of the General Partner on behalf of the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9,4(e). Organization and Offering Expense Allowance</font></b><font size=2>. The Partnership shall pay, immediately following each Closing Date, the Organization and Offering Expense Allowance to the General Partner without deduction for Dealer-Manager Fees, Sales Commissions and Due Diligence Expenses payable by the Partnership. The General Partner shall bear any Organization and Offering Expenses incurred by the General Partner or its Affiliates (including, without limitation, the Dealer-Manager) in excess of the Organization and Offering Expense Allowance.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(f). Acquisition Fees and Acquisition Expenses</font></b><font size=2>. In connection with any Investment, the Partnership shall pay to the General Partner, for services rendered in connection with acquiring such Investment, an Acquisition Fee equal to the difference (to the extent greater than zero) between:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>2% of the Purchase Price paid by the Partnership for any Investment (which Purchase Price shall be determined for purposes of this Section 9.04(f) only, by excluding the General Partner&#146;s Acquisition Fee as calculated under this Section 9.04(f), but including the General Partner&#146;s and its Affiliates&#146; Acquisition Expenses related to the Investment and all other components of the Purchase Price as that term is defined in this Agreement); and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the aggregate amount of Acquisition Fees paid by or on behalf of the Partnership to any other Person in connection with such Investment.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Provided, however, that:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>no Acquisition Fees shall be paid by or on behalf of the Partnership to any finder or broker that is an Affiliate of the General Partner except to the extent permitted by this Section 9.4(f); </font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Acquisition Fees shall include Acquisition Expenses, except that for purposes of this Section 9.4 fees payable to finders or brokers that are not Affiliates of the General Partner that are otherwise included within Acquisition Fees shall be treated as an expense of the Partnership payable as provided in Section 9.4(j) and shall not be treated as Acquisition Fees or Acquisition Expenses except for purposes of determining the Purchase Price of the Investment;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Partnership shall not pay any Acquisition Fees, fees payable to finders or brokers that are not Affiliates of the General Partner, or other Front-End Fees, or any part thereof, that would cause the Partnership&#146;s Investment in Equipment (including Equipment that at any time is subject to, or is the collateral for, Leases or Secured Loans) to be less than the greater of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>80% of the Partnership&#146;s Gross Offering Proceeds from the sale of Units, reduced by .0625% for each 1% of Indebtedness encumbering the Partnership&#146;s Investments; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>75% of the Partnership&#146;s Gross Offering Proceeds.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><font size=2>To calculate the percentage of Indebtedness encumbering the Partnership&#146;s Investments, the aggregate amount of such Indebtedness shall be divided by the aggregate Purchase Price (without deduction for Front-End Fees) paid for all Investments. The quotient so calculated shall be multiplied by .0625% to determine the percentage to be deducted from 80%. Where the Partnership purchases an Investment from the General Partner or one of its Affiliates pursuant to Section 9.2(b) for a Purchase Price that includes the amount of an Acquisition Fee, the Acquisition Fee shall be deemed paid under this Section 9.4(f) and there shall be no duplicate payment of the Acquisition Fee; and.</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner and its Affiliates shall not receive reimbursement of their Acquisition Expenses from the Partnership other than indirectly through their receipt of the Purchase Price or the related Acquisition Fee of an Investment or as otherwise provided in Section 9.4(j).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(g). Management Fees</font></b><font size=2>. For management services rendered, the Partnership shall pay the Management Fees to the General Partner each month during the Reinvestment Period, but only after Distributable Cash in an amount sufficient to pay any accrued Unpaid Cumulative Return in that month has been either distributed or added to Reserves to be distributed later in that month.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>To the extent that the Partnership&#146;s Distributable Cash in any month is insufficient to distribute any accrued Unpaid Cumulative Return in that month and pay the General Partner&#146;s Management Fees for that month, the payment of the Management Fees shall be deferred and paid to the General Partner, without interest, in the next following month in which the Partnership generates sufficient Distributable Cash to pay the Management Fees and distribute any accrued Unpaid Cumulative Return. Reserves established for distributing Unpaid Cumulative Returns as set forth in the first sentence of this Section 9.4(g) shall not be used for any other purpose.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(h). Subordinated Remarketing Fees</font></b><font size=2>. For services rendered in connection with the sale of any Investment, the Partnership shall pay the applicable Subordinated Remarketing Fee to the General Partner; provided that:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>no Subordinated Remarketing Fee shall be paid before Payout; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner shall not be entitled to receive that portion of any Subordinated Remarketing Fee that would cause the total commissions paid to all Persons in connection with the sale of the Investment to exceed a fee for their services that is reasonable, customary and competitive in light of the size, type and location of the Investment. After Payout, any and all Subordinated Remarketing Fees previously earned by the General Partner shall be paid by the Partnership, without any interest, before any other distributions are made by the Partnership to the Partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(i). Re-Leasing Fee</font></b><font size=2>. For services rendered, the Partnership shall pay the applicable Re-Leasing Fee to the General Partner in connection with the re-lease of Equipment; provided that the following conditions are met:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner has maintained adequate staff to provide re-leasing services;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the fee shall be paid as each rental payment is made over the term of the Lease;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>no fee shall be paid or reimbursed where the Equipment is re-leased to the previous lessee or its Affiliates;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner or its Affiliates shall have rendered substantial re-leasing services in connection with the re-lease; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the General Partner or its Affiliates have been paid Management Fees that month for rendering management services.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.4(j). Partnership Expenses</font></b><font size=2>.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Except as otherwise provided in this Section 9.4(j), Partnership expenses other than those reimbursed in accordance with subsections (b) through (i) of this Section 9.4 shall be billed directly to and paid by the Partnership.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Subject to clause (iv), the General Partner and its Affiliates may be reimbursed for the actual cost of goods, materials and services used for or by the Partnership and obtained by it or them from non-Affiliates of the General Partner.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Subject to clause (iv), the General Partner and its Affiliates may be reimbursed for the administrative services reasonably necessary, convenient or advisable, in the sole discretion of the General Partner, to the prudent operation of the Partnership (including, without limitation, legal, accounting, remarketing and agency expenses) provided that such reimbursement shall not exceed the lesser of:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>its or their actual cost; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the amount the Partnership would be required to pay to non-Affiliates for comparable administrative services in the same geographic location; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><font size=2>provided, further, that there shall be no reimbursement for such services if the General Partner or its Affiliates are entitled to compensation in the form of a separate fee pursuant to other provisions of this Section 9.4.</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The General Partner and its Affiliates shall not be reimbursed by the Partnership for amounts expended by them with respect to the following:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>salaries, fringe benefits, travel expenses or other administrative items incurred by or allocated to any Controlling Person of the General Partner or its Affiliates; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>rent, depreciation, utilities, capital equipment or other administrative items.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.5 Other Interests of the General Partner and its Affiliates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.5(a). General Partner&#146;s Right to Pursue Other Activities. </font></b><font size=2>The General Partner shall be required to devote only such time to the affairs of the Partnership as the General Partner, in its sole discretion, determines in good faith to be necessary for the business and operations of the Partnership. The General Partner and its Affiliates may engage in, or possess an interest in, business ventures (other than the Partnership) of every kind and description, independently or with others, including, but not limited to, serving as sponsor or general partner of other Programs and participating in the equipment leasing or financing business, whether or not those business ventures are competitive with the business or Investments of the Partnership; provided, however, that the General Partner and its Affiliates may not offer for sale interests in another Program before the Termination Date
of the Offering unless the other Programs have investment objectives that are different from the Partnership&#146;s or the other Programs are Specified Equipment Programs. The Partnership and the Limited Partners shall have no rights in or to the General Partner&#146;s and its Affiliates&#146; independent ventures or the related income or profits resulting from them.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner and its Affiliates shall not be obligated to present any particular investment opportunity to the Partnership. The General Partner and its Affiliates shall have the right to invest in equipment, portfolios of equipment subject to existing equipment leases, equipment financing and in leasing and re-leasing opportunities, on its or their own behalf or on behalf of other Programs. The General Partner and its Affiliate shall have the right, subject only to the provisions of the immediately succeeding paragraph, to take for their own account (individually or otherwise), or to recommend to any Affiliated Program, any particular investment opportunity.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>9.5(b). Resolving Conflicts. </font></b><font size=2>Any conflicts in determining and allocating Investments between the General Partner and its Affiliated Programs, on the one hand, and the Partnership, on the other hand, will be resolved by the General Partner&#146;s Investment Committee, which will evaluate the suitability of all prospective Investments. If the Investments available from time to time to the Partnership and to other Affiliated Programs is less than the aggregate amount of the Investments then sought by them, the available Investment shall be allocated by the General Partner to an Affiliated Program (including the Partnership) after taking into consideration at least the following factors:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>which Affiliated Program has been seeking Investments or reinvesting Cash Flow from its Investments for the longest period of time;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>whether the Affiliated Program has the cash required for the Investment;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>whether the amount of debt to be incurred with respect to the Investment is acceptable for the Affiliated Program;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the effect the Investment would have on the Affiliated Program&#146;s cash flow;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>whether the Investment would further diversify, or unduly concentrate, the Affiliated Program&#146;s Investments in a particular lessee, class or type of equipment, location, industry, etc.; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>whether the term of the Investment is within the term of the Affiliated Program.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In the event of a conflict between two or more Affiliated Programs (including the Partnership) that are seeking to re-lease or sell similar equipment contemporaneously (except to the extent that the re-lease or sale is to the lessee, or an Affiliate of the lessee, from the Affiliated Program), the first opportunity to re-lease or sell equipment generally shall be allocated to the Affiliated Program (including the Partnership) attempting to re-lease or sell equipment that was subject to the lease that expired first or, if two or more leases expired simultaneously, the lease that was the first to take effect; provided, however, that the General Partner may, in its sole discretion, provide opportunities to re-lease or sell equipment otherwise if the equipment is subject to remarketing commitments. Notwithstanding anything to the contrary provided in this Section 9.5, the General Partner may allocate an
opportunity in any other manner it determines, in its sole discretion if there are other circumstances, in the General Partner&#146;s judgment, under which withholding the opportunity from an Affiliated Program would be inequitable or not economically feasible for that particular Affiliated Program (including the Partnership).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If the financing available from time to time to two or more Affiliated Programs (including the Partnership) is less than the aggregate amount then sought by them, the available financing generally shall be allocated to the Affilliated Program that has been seeking financing for the longest period of time.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE X - POWERS AND LIABILITIES OF LIMITED PARTNERS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>10.1 Absence of Control Over Partnership Business. </font></b><font size=2>The Limited Partners hereby consent to the exercise by the General Partner of the powers conferred on the General Partner by this Agreement. No Limited Partner shall have any of the following rights:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the right to participate in or have any control over the Partnership&#146;s business;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the right or authority to act for, or to bind or otherwise obligate, the Partnership (except if the Limited Partner also is a General Partner, and then only in its capacity as a General Partner);</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the right to have the Partnership dissolved and liquidated, except as provided in Section 16.2(b) through the Consent or vote of the Majority Interest of the Limited Partners; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the right to have all or any part of the Limited Partner&#146;s Capital Contribution or Capital Account returned, except as provided in this Agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>10.2 Limited Liability. </font></b><font size=2>The liability of each Limited Partner, in his capacity as a Limited Partner, shall be limited to the amount of the Limited Partner&#146;s Capital Contribution and pro rata share of any undistributed Income, Cash Flow and other assets of the Partnership. Except as may otherwise be required by law or by this Agreement, after a Limited Partner pays his entire Capital Contribution to the Partnership as set forth on his Subscription Agreement for the purchase of his Units, the Limited Partner shall not:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>have any further obligations to the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>be subject to any additional Assessment; or</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>be required to make any additional Capital Contribution to, or to loan any funds to, the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XI - DISTRIBUTIONS AND ALLOCATIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.1 Distribution of Distributable Cash</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.1(a). Prior to the Admission of Limited Partners</font></b><font size=2>. Prior to the admission to the Partnership of any Limited Partners, distributions of Distributable Cash shall be made 1% to the General Partner and 99% to the Original Limited Partner.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.1(b). After Admission to the Partnership</font></b><font size=2>. Beginning with the admission to the Partnership of any Limited Partner on the Initial Closing Date, and continuing during the Reinvestment Period, provided that sufficient Distributable Cash is available, in the General Partner&#146;s sole discretion, the General Partner shall distribute Distributable Cash to the Partners in the following order of priority:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>first, 1% to the General Partner and 99% to the Limited Partners in an amount that:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>is equal to the Limited Partners&#146; Unpaid Cumulative Return; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>includes an amount of Distributable Cash resulting from Sales and refinancings of the Partnership&#146;s Investments, if any, sufficient for the Limited Partners to pay their federal, state and local income taxes resulting from those Sales, assuming the Limited Partners are in a 30% tax bracket; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>thereafter, to investment and reinvestment in Investments or, if the General Partner shall elect not to invest or reinvest such Distributable Cash, 1% to the General Partner and 99% to the Limited Partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.1(c). Reinvestment Period</font></b><font size=2>. During the Liquidation Period, no Distributable Cash shall be reinvested in additional Investments. All Distributable Cash shall be distributed 1% to the General Partner and 99% to the Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.1(d). Liquidation Period</font></b><font size=2>. Distributions of Distributable Cash shall be made to the Partners monthly. Subject to Section 11.1(b), the amount of each such monthly distribution shall be determined by the General Partner, in its sole discretion, based upon the amount of the Partnership&#146;s then available Distributable Cash and other funds of the Partnership and the General Partner&#146;s estimate of the Partnership&#146;s total Distributable Cash for such Fiscal Year.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2 Allocations of Income and Loss</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(a). Deductions for Each Fiscal Year</font></b><font size=2>. The Income and Loss of the Partnership shall be determined for each Fiscal Year or Fiscal Period.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(b). Proportionate Part</font></b><font size=2>. Except as otherwise provided in this Agreement, whenever a proportionate part of the Partnership&#146;s Income or Loss is allocated to a Partner, every item of income, gain, loss or deduction entering into the computation of such Income or Loss, or arising from the transactions with respect to which such Income or Loss was realized, shall be allocated to such Partner in the same proportion.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(c). Reinvestment Period</font></b><font size=2>. Income for any Fiscal Period during the Reinvestment Period shall be allocated 1% to the General Partner and 99% to the Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(d). Liquidation Period</font></b><font size=2>. Income for any Fiscal Period during the Liquidation Period shall be allocated to the Partners as follows:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>first, to the Partners in proportion to and to the extent of the deficit balances, if any, in their respective Capital Accounts; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>thereafter, 1% to the General Partner and 99% to the Limited Partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(e). Losses</font></b><font size=2>. Losses for any Fiscal Period shall be allocated to the Partners as follows:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>first, 1% to the General Partner and 99% to the Limited Partners until the Limited Partners have been allocated Losses equal to the excess, if any, of their aggregate Capital Account balances over their aggregate Adjusted Capital Contributions;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>next, to the Partners in proportion to and to the extent of their respective remaining positive Capital Account balances, if any; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>thereafter, 1% to the General Partner and 99% to the Limited Partners;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>provided, however, that if and to the extent that an allocation of Losses to any Limited Partner pursuant to this subsection (e) or subsection (f), below, would result in any Limited Partner having an Adjusted Capital Account Deficit, such Losses shall be allocated to all other Partners in accordance with this subsection (e) and, when no Limited Partner can be allocated any such Losses without violating the limitation contained in this proviso, such remaining Losses shall be allocated to the General Partner.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(f). Special Allocations</font></b><font size=2>. The following special allocations shall, except as otherwise provided, be made prior to allocations in Sections 11.2(a) through (e) in the following order:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Minimum Gain Charge-Back</font></b><font size=2>. Notwithstanding any other provision of this Article XI, if there is a net decrease in Partnership Minimum Gain or in any Partner Nonrecourse Debt Minimum Gain during any Fiscal Period, before any other allocation under this Article XI each Partner shall be specially allocated items of Partnership Income and gain for such Fiscal Period (and, if necessary, subsequent Fiscal Periods) in an amount and manner required by Treas. Reg. Sections 1.704-2(f) and 1.704-2(i)(4) or any successor provisions. The items to be so allocated shall be determined in accordance with Treas. Reg. Section 1.704-2(j)(2) or any successor provision.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Partnership Nonrecourse Deductions</font></b><font size=2>. Partnership Nonrecourse Deductions for any Fiscal Period shall be allocated 99% to the Limited Partners and 1% to the General Partner.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Partner Nonrecourse Deductions</font></b><font size=2>. Partner Nonrecourse Deductions for any Fiscal Period shall be allocated to the Partner who made or guaranteed or is otherwise liable with respect to the loan to which such Partner Nonrecourse Deductions are attributable in accordance with the principles of Treas. Reg. Section 1.704-2(i) or any successor provision.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Qualified Income Offset</font></b><font size=2>. If in any Fiscal Period, any Partner has an Adjusted Capital Account Deficit, whether resulting from an unexpected adjustment, allocation or distribution described in Treas. Reg. Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) or otherwise, such Partner shall be allocated items of Partnership Income (consisting of a pro rata portion of each item of Partnership Income for such Fiscal Period) sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible, to the extent required by such Treasury Regulation. It is the intention of the parties that this allocation provision constitute a &#147;qualified income offset&#148; within the meaning of Treas. Reg. Section 1.704-1(b)(2)(ii)(d).</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Curative Allocations</font></b><font size=2>. The special allocations provided for in Section 11.2(e) and in Sections 11.2(f)(i) through (iv) are intended to comply with Treas. Reg. Sections 1.704-1 and 1.704- 2. To the extent that any of those special allocations have been made, subsequent allocations of Income, Loss and items thereof (&#147;curative allocations&#148;) shall be made as soon as possible and in a manner so as to cause, to the extent possible without violating the requirements of Treas. Reg. Sections 1.704-1 and 1.704-2, the Partners&#146; Capital Account balances to be as nearly as possible in the same proportions in which they would have been had the special allocations not occurred. In making these curative allocations, due regard shall be given to the character of the Income and Loss and items thereof that were originally allocated under the provisions of
Section 11.2(e) and Sections 11.2(f)(i) through (iv) in order to put the Partners as nearly as possible in the positions in which they would have been had those special allocations not occurred.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(g). Misallocated Items</font></b><font size=2>. If the General Partner determines, after consultation with Counsel, that the allocation of any item of Income or Loss is not specified in this Article XI (an &#147;unallocated item&#148;), or that the allocation of any item of Income or Loss under this Article XI is clearly inconsistent with the Partners&#146; economic interests in the Partnership determined by reference to this Agreement, the general principles of Treas. Reg. Section 1.704-1(b) and the factors set forth in Treas. Reg. Section 1.704-1(b)(3)(ii) (a &#147;misallocated item&#148;), then the General Partner may allocate the unallocated items, and reallocate the misallocated items, to reflect the Partners&#146; economic interests in the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(h). Special Allocation of State, Local and Foreign Taxes</font></b><font size=2>. Any state, local or foreign taxes imposed on the Partnership by reason of a Partner being a citizen, resident or national of a state, locality or foreign jurisdiction, including any item(s) of Income or Loss resulting therefrom, shall be specially allocated to that Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(i). Transactions with Partnership</font></b><font size=2>. If the adjusted basis of any property contributed by a Partner to the Partnership exceeds the fair market value of the property at the time of the contribution (the &#147;built-in loss&#148;), then, except as provided otherwise by Treasury Regulations, the built-in loss shall be taken into account only in determining the amount of the tax items allocated to the contributing Partner. In determining the amount of tax items allocated to the other Partners, the basis of the contributed property shall be treated as being equal to its fair market value at the time of the contribution. Subject to the foregoing, if, and to the extent that, any Partner is deemed to recognize any item of Income or Loss as a result of any transaction between such Partner and the Partnership pursuant to Code Sections 482, 483, 1272-1274, 7872 or any similar provision of
the Code now or hereafter in effect, any corresponding Income or Loss or items thereof shall be allocated to the Partner who was charged with such item.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(j). Fees and Commissions Paid to General Partner</font></b><font size=2>. It is the intent of the Partnership that any amount paid or deemed paid to the General Partner as a fee or other payment described in Section 9.4 shall be treated as a &#147;guaranteed payment&#148; or a payment to a partner not acting in his capacity as a partner pursuant to Section 707(c) of the Code to the extent possible. If any such fee or payment is deemed to be a distribution to the General Partner, and not a guaranteed payment or a payment to a partner not acting in his capacity as a partner, the General Partner shall be allocated an amount of Partnership gross ordinary income equal to such payment.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(k). Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses, Acquisition Fees and Organization and Offering Expense Allowance</font></b><font size=2>. Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses, Acquisition Fees and the Organization and Offering Expense Allowance shall be allocated 100% to the Limited Partners. Organization and Offering Expenses in excess of Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses and the Organization and Offering Expense Allowance shall be allocated 100% to the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.2(l). Tax-Exempt Entities.</font></b><font size=2> Notwithstanding any other provision of this Agreement, if it is determined that the tax-exempt use property rules of Section 168(h)(6) of the Code or the tax-exempt use loss rules of Section 470 of the Code apply to the Partnership, because one or more of the Partnership&#146;s Limited Partners are tax-exempt entities (including non-U.S. persons as defined by the Code) so that a portion of the Partnership&#146;s depreciation or cost recovery deductions or losses are reduced, suspended or otherwise adversely affected, the resulting depreciation adjustments and tax-exempt use losses shall be specially allocated 100% to the Limited Partners that are tax-exempt entities (including non-U.S. persons as defined by the Code) to be shared among them in proportion to their respective number of Units unless provided otherwise by this Agreement or the Code.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.3 Distributions and Allocations Among the Limited Partners</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.3(a). In General. </font></b><font size=2>Except to the extent otherwise provided in this Agreement, all distributions of Distributable Cash and all allocations of Income and Loss and items thereof for any Fiscal Year or Fiscal Period shall be distributed or allocated, as the case may be, among the Limited Partners in proportion to their respective numbers of Units. Each distribution of Distributable Cash shall be made to the Limited Partners (or their respective assignees) of record as of the last day of the month next preceding the date on which the distribution is made.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.3(b). Initial Year of Admission</font></b><font size=2>. All distributions of Distributable Cash and all allocations of Income and Loss or items thereof for any Fiscal Year in which any Limited Partners are admitted to the Partnership shall be allocated among the Limited Partners as follows:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>first, the Operations and Sales of the Partnership shall be deemed to have occurred ratably over such Fiscal Year, irrespective of the actual results of Operations or Sales of the Partnership;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>second, all Income and Loss for such Fiscal Year shall be allocated among the Limited Partners in the ratio that the number of Units held by each Limited Partner multiplied by the number of days in such Fiscal Year that such Units were held by such Limited Partner bears to the sum of that calculation for all Limited Partners; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>third, all monthly distributions of cash made to the Limited Partners under Section 11.1 shall be distributed among the Limited Partners in the ratio that the number of Units held by each Limited Partner multiplied by the number of days in the month preceding the month in which the distribution is made that the Units were held by the Limited Partner bears to the sum of that calculation for all Limited Partners. If the General Partner determines at any time that the sum of the monthly distributions made to any Limited Partner during or with respect to a Fiscal Year does not (or will not) properly reflect the Limited Partner&#146;s share of the total distributions made or to be made by the Partnership for the Fiscal Year, the General Partner shall, as soon as practicable, make a supplemental distribution to the Limited Partner, or withhold from a subsequent distribution that otherwise
would be payable to the Limited Partner, such amount as shall cause the total distributions to the Limited Partner for the Fiscal Year to be the proper amount.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.3(c). Transfer</font></b><font size=2>. In the event of a transfer of a Unit during a Fiscal Year in accordance with Article XIII, the transferor and transferee shall be allocated a ratable share of Income and Losses for the Fiscal Year based on the number of days in the Fiscal Year that each held the transferred Unit.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.3(d). Before Admission</font></b><font size=2>. Each distribution made to a Limited Partner under Sections 11.1, 11.5 or 14.3, and any interest earned on a Limited Partner&#146;s subscription funds while held in an Escrow Account or Subscription Account before the admission of the Limited Partner to the Partnership and subsequently paid to the Limited Partner under Section 8.11, shall be applied as follows:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>first, in reduction of the Limited Partner&#146;s Unpaid Cumulative Return, to the extent thereof, as determined immediately before the distribution; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>thereafter, in reduction of the Limited Partner&#146;s Adjusted Capital Contribution, as determined immediately before the distribution.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.4 Tax Allocations: Code Section 704(c); Revaluations.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.4(a). Contribution of Property</font></b><font size=2>. In accordance with Section 704(c) of the Code and the Treasury Regulations thereunder, Income, Loss and items thereof with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its initial Gross Asset Value.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.4(b). Adjustments</font></b><font size=2>. In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to clause (ii) of Section 1.1(47) and Section 8.14, subsequent allocations of Income, Loss, and items thereof with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in a manner consistent with the requirements of Proposed Treas. Reg. Section 1.704-3(a)(6) or the corresponding provision of any final or successor Treasury Regulations.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.4(c). Elections</font></b><font size=2>. Any elections or other decisions relating to the allocations required by subsections (a) and (b), above, shall be made in a manner that reasonably reflects the purpose and intention of this Agreement. Allocations under this subsection (c) are solely for purposes of federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Partner&#146;s Capital Account or share of Income or Losses under any provision of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.5 Return of Uninvested Capital Contribution. </font></b><font size=2>If 100% of the Partnership&#146;s Net Offering Proceeds has not been used to make Investments, committed to Reserves (to the extent Reserves have been established and maintained for the acquisition of Investments) or used to pay permitted Front-End Fees within 24 months from the date of the Prospectus, the amount of such uninvested Net Offering Proceeds shall be promptly distributed by the Partnership to the Limited Partners, pro rata based upon their respective number of Units, as a return of capital, without interest. Funds shall be deemed to have been committed to investment and need not be returned to the Limited Partners to the extent written agreements in principle, commitment letters, letters of intent or understanding, option agreements or any similar contracts are executed and not terminated during the applicable 24-month
period described above, if such investments are ultimately consummated within a further period of 12 months. Funds deemed committed which are not actually so invested within such 12 month period will be promptly distributed, without interest, to the Limited Partners on a pro rata basis, as a return of capital, except that Investments using funds from Ohio investors must be completed within a three-month period or such funds must be returned.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.6 No Distributions in Kind. </font></b><font size=2>Distributions in kind shall not be permitted except upon dissolution and liquidation of the Partnership&#146;s assets and then only to a liquidating trust established for the purpose of liquidating the assets transferred to it and distributing the net cash proceeds of such liquidation in cash to the Partners in accordance with the provisions of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>11.7 Partnership Entitled to Withhold. </font></b><font size=2>The Partnership shall at all times be entitled to withhold or make payments to any governmental authority with respect to any federal, state, local or foreign tax liability of any Partner or former Partner arising as a result of such Partner&#146;s participation in the Partnership. Each such amount so withheld or paid shall be deemed to be a distribution for purposes of Article XI and Article XIV, as the case may be, to the extent such Partner is then entitled to a distribution. To the extent that the amount of such withholdings or payments made with respect to any Partner exceeds the amount to which such Partner is then entitled as a distribution, the excess shall be treated as a demand loan, bearing interest at a rate equal to 12% per annum simple interest from the date of such payment or withholding until such excess is repaid to the
Partnership either by deduction from any distributions subsequently payable to such Partner under this Agreement or earlier payment of such excess and interest by such Partner to the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The excess withholdings or payments, together with interest thereon, shall, in any case, be payable not less than 30 days after demand therefor by the General Partner. However, the General Partner shall demand payment only if it determines that the Partner is not likely to be entitled to distributions within 12 months from the date of such withholding or payment by the Partnership in an amount sufficient to pay such excess and interest. If the payments referred to in this Section 11.7 are made on behalf of a Person who cannot be identified or located, the General Partner shall treat the payments as a distribution of Distributable Cash made 1% to the General Partner and 99% to the Limited Partners, provided that this deemed distribution shall not reduce the Limited Partners&#146; Unpaid Cumulative Return or Adjusted Capital Contribution under Section 11.3(d). Also, the withholdings and payments referred to in
this Section 11.7 shall be made at the maximum applicable statutory rate under the applicable tax law unless the General Partner has received an opinion of Counsel, at the Partner&#146;s expense, or other evidence, satisfactory to the General Partner, to the effect that a lower rate is applicable or that no withholding or tax payment is required.</font></p>

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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XII - WITHDRAWAL OF GENERAL PARTNER</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.1 Voluntary Withdrawal. </font></b><font size=2>The General Partner may not voluntarily withdraw as a General Partner from the Partnership unless:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Limited Partners have received 60 days&#146; advance written notice of the General Partner&#146;s intention to withdraw;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Partnership has received an opinion of Counsel to the Partnership to the effect that the withdrawal will not constitute a termination of the Partnership or otherwise materially adversely affect the status of the Partnership for federal income tax purposes; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a Substitute General Partner has been selected, and the Substitute General Partner has:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>consented to its admission as General Partner;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>received the written Consent of a Majority Interest to its admission as General Partner; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>a Net Worth sufficient, in the opinion of Counsel to the Partnership, for the Partnership to continue to be classified as a partnership for federal income tax purposes and to satisfy the Net Worth requirements for &#147;sponsors&#148; under applicable laws, rules, regulations and policies of Administrators.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.2 Involuntary Withdrawal. </font></b><font size=2>The General Partner shall be deemed to have involuntarily withdrawn as a General Partner from the Partnership upon the removal of the General Partner pursuant to the Consent of the Majority Interest or upon the occurrence of any other event that constitutes an event of withdrawal under the Delaware Act as then in effect. For purposes of this Section 12.2 and Article XVI, neither the General Partner nor any Affiliate of the General Partner may participate in any vote by the Limited Partners to involuntarily remove the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.3 Consequences of Withdrawal</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.3(a). Upon Withdrawal</font></b><font size=2>. Upon withdrawal of the General Partner as such from the Partnership:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>the Partnership shall pay to the withdrawn General Partner the fair market value of the Partnership Interest then held by the General Partner, calculated in the manner set forth in subsection (b), below, and payable as set forth in subsection (c), below; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>an amount equal to the difference between any Management Fees and other fees accrued but not yet paid to the General Partner, plus all other amounts due and owing to the General Partner by the Partnership, minus any amounts due and owing by the General Partner to the Partnership, which shall be payable in cash within 30 days of the date of withdrawal, by the debtor party to the creditor party.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.3(b). Determination of Fair Market Value</font></b><font size=2>. For purposes of this Section 12.3, the fair market value of the withdrawn General Partner&#146;s Partnership Interest shall be determined, in good faith, by the withdrawn General Partner and the Partnership, or, if they cannot agree, by arbitration in accordance with the then current rules of the American Arbitration Association. The expense of arbitration shall be borne equally by the withdrawn General Partner and the Partnership.</font></p>


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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.3(c). Method of Payment</font></b><font size=2>. The method of payment to the General Partner upon withdrawal, whether voluntary or involuntary, must be fair and must protect the solvency and liquidity of the Partnership. When the withdrawal is voluntary, the method of payment will be presumed to be fair if it provides for a non-interest-bearing, unsecured promissory note of the Partnership, with principal payable, if at all, from distributions that the withdrawn General Partner otherwise would have received under the Partnership Agreement had the General Partner not withdrawn. When the withdrawal is involuntary, unless otherwise agreed by the withdrawn General Partner and the Partnership, the method of payment shall be a promissory note providing for repayments of principal thereunder in 60 equal monthly installments, together with accrued but unpaid interest, bearing interest on the outstanding
principal amount thereof at the lesser of:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the rate of interest (inclusive of any points or other loan charges) which the Partnership would be required to pay to an unrelated bank or commercial lending institution for an unsecured, 60 month loan of like amount; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the &#147;Prime Rate&#148; of interest published in the Money Rates section of the Wall Street Journal, plus 4%.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.4 Liability of Withdrawn General Partner. </font></b><font size=2>If the business of the Partnership is continued after withdrawal of the General Partner, the General Partner, or its estate, successors or legal representatives, shall remain liable for all obligations and liabilities incurred by it or by the Partnership while it was acting in the capacity of General Partner and for which it was liable as General Partner, but they shall be free of any obligation or liability incurred on account of or arising from the activities of the Partnership from and after the time such withdrawal became effective.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>12.5 Notice of Withdrawal; Admission of Substitute General Partner; Dissolution if No Substitute General Partner Approved. </font></b><font size=2>If the General Partner voluntarily withdraws from the Partnership, the General Partner, or its estate, successors or legal representatives, shall deliver to the Limited Partners a Notice that includes the effective date of its withdrawal. Within 90 days following a voluntary or involuntary withdrawal, a Majority Interest shall agree in writing to continue the business of the Partnership and to the appointment, effective as of the date of the withdrawn General Partner&#146;s withdrawal, of a Substitute General Partner. Such Substitute General Partner shall execute a counterpart of this Agreement. If such action is not taken within 90 days following the date of the General Partner&#146;s withdrawal, then the Partnership shall dissolve.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XIII - TRANSFER OF UNITS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.1 Withdrawal of a Limited Partner. </font></b><font size=2>A Limited Partner may withdraw from the Partnership only by Assigning or Redeeming all Units owned by the Limited Partner in accordance with this Article XIII. The withdrawal of a Limited Partner shall not dissolve or terminate the Partnership. If a Limited Partner withdraws because of death, legal incompetence, dissolution or other termination, the estate, legal representative or successor of the Limited Partner shall be deemed to be the Assignee of the Limited Partner&#146;s Units and may become a Substitute Limited Partner on compliance with the provisions of Section 13.3.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.2 Assignment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.2(a). Assignment by a Limited Partner</font></b><font size=2>. Subject to the provisions of subsections (b) and (c), below, and Section 13.3, any Limited Partner may Assign all or any portion of his Units to an Assignee if:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Limited Partner and the Assignee each execute a written Assignment, which:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>sets forth the terms of the Assignment;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>in the case of Assignments other than by operation of law, states the intention of the Limited Partner that the Assignee shall become a Substitute Limited Partner and, in all cases, evidences the acceptance by the Assignee of all of the terms and provisions of this Agreement; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>includes a representation by both the Limited Partner and the Assignee that the Assignment was made in accordance with all applicable laws and regulations (including, without limitation, the minimum investment and investor suitability requirements as may then be applicable under state securities laws); and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Assignee pays to the Partnership an aggregate amount, not exceeding $150, for expenses reasonably incurred by the Partnership in connection with the Assignment.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>13.2(b). General Partner Must Consent to the Withdrawal</font></b><font size=2>. Notwithstanding the foregoing, unless the General Partner specifically Consents, no Units may be Assigned:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to a minor or incompetent (unless a guardian, custodian or conservator has been appointed to handle the affairs of that Person);</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to any Person if, in the opinion of Counsel, the Assignment would result in the termination of the Partnership&#146;s taxable year or its status as a partnership for federal income tax purposes, provided that the Partnership may permit the Assignment to become effective if and when, in the opinion of Counsel, the Assignment would no longer result in the termination of the Partnership&#146;s taxable year or its status as a partnership for federal income tax purposes;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to any Person if the Assignment would affect the Partnership&#146;s existence or qualification as a limited partnership under the Delaware Act or the applicable laws of any other jurisdiction in which the Partnership is then conducting business;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to any Person not permitted to be an Assignee under applicable law, including, without limitation, applicable federal and state securities laws;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if the Assignment would result in the transfer of less than 50 Units (unless the Assignment is all the Units owned by the Limited Partner);</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if the Assignment would result in the retention by the Limited Partner of a portion of his Units representing less than 50 Units;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if, in the reasonable belief of the General Partner, the Assignment might violate applicable law; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(viii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if the effect of the Assignment would be to cause the &#147;equity participation&#148; in the Partnership by &#147;benefit plan investors&#148; (within the meaning of Department of Labor Reg. Section 2510.3-101(f)) and possibly other tax-exempt investors (as determined by the General Partner after consultation with Counsel) to equal or exceed 25% of the Partnership&#146;s total outstanding Units.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Any attempt to make any Assignment of Units in violation of this Section 13.2(b) shall be without force or effect.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.2(c). Publicly Traded Partnership Prohibition</font></b><font size=2>. So long as there are adverse federal income tax consequences from being treated as a &#147;publicly traded partnership&#148; for federal income tax purposes, the General Partner shall not permit any interest in a Unit to be Assigned (including Redemptions of Units under Section 13.5) on a &#147;Secondary Market.&#148; For purposes of this Section 13.2(c), any Assignment which fails to meet one or more of the secondary market &#147;safe-harbor&#148; provisions of Treas. Reg. Section 1.7704-1 or any substitute safe-harbor provisions that subsequently may be established by Treasury Regulations or published notices, shall be treated as an Assignment on a Secondary Market under this Section 13.2(c).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If the General Partner determines, in its sole discretion, that an Assignment was or will be effected on a Secondary Market, the Partnership and the General Partner shall not recognize the Assignment and shall not admit the transferee as a Substitute Limited Partner, nor recognize any rights of the transferee in the Partnership, such as the right to receive distributions of Distributable Cash or any interest in Partnership capital or profits. Each Limited Partner agrees to provide to the General Partner all information with regard to any Assignment by the Limited Partner, whether proposed or purportedly completed, which the General Partner deems necessary in order to determine whether the Assignment by the Limited Partner occurred or will occur on a Secondary Market.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.2(d). Effectiveness of Assignment</font></b><font size=2>. Assignments made in accordance with this Section 13.2 shall be considered effective on the last day of the month on which all of the conditions of this Section 13.2 have been satisfied. Distributions to the Assignee shall begin the month following effectiveness of the Assignment.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.3 Substitution</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.3(a). Condition on Substitution</font></b><font size=2>. An Assignee of a Limited Partner shall be admitted to the Partnership as a Substitute Limited Partner only if:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the General Partner has reasonably determined that all of the conditions specified in Section 13.2 have been satisfied and that no adverse effect to the Partnership will result from the admission; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Assignee has executed a transfer agreement and the other forms, including a power of attorney to the effect required by Article XVIII, as the General Partner reasonably may require to determine compliance with this Article XIII.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.3(b). Effect of Assignment Without Substitution</font></b><font size=2>. An Assignee of Units who does not become a Substitute Limited Partner in accordance with this Section 13.3 and who desires to make a further Assignment of his Units shall be subject to all of the provisions of Sections 13.2, 13.3 and 13.4 to the same extent and in the same manner as a Limited Partner desiring to make an Assignment of his Units. Failure or refusal of the General Partner to admit an Assignee as a Substitute Limited Partner, if the Assignment otherwise complies with Section 13.2, and subsection (c) thereof in particular, shall not affect the right of the Assignee to receive Distributable Cash and the share of Income or Losses to which his predecessor in interest would have been entitled in accordance with Article XI and Article XIV.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.3(c). Amendment of Records</font></b><font size=2>. The Partnership shall amend its records at least once each calendar quarter to effect the substitution of Substitute Limited Partners.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.4 Status of an Assigning Limited Partner. </font></b><font size=2>If a Limited Partner Assigns all of his Units to an Assignee who becomes a Substitute Limited Partner, the assignor Limited Partner shall cease to be a Limited Partner in the Partnership and shall no longer have any of the rights or privileges of a Limited Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5 Limited Right of Presentment for Redemption of Units</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5(a). Limited Right to Redeem Units.</font></b><font size=2> Subject to the limitations set forth below, beginning with the admission of a Limited Partner to the Partnership, each Limited Partner (other than the General Partner or its Affiliates if they own Units) may request that the Partnership Redeem, for cash, up to 100% of the Limited Partner&#146;s Units. This right of presentment shall be subject to the limitations set forth below.</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The Partnership shall be under no obligation to Redeem any Units of any Limited Partner and shall do so only with the prior Consent of the General Partner, which is in the sole discretion of the General Partner. In this regard, the General Partner may take into consideration the time of year during which a Redemption request is made, and the effect making a Redemption would have on the Partnership&#146;s compliance with the 2% limitation described in clause (ii), below.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The Partnership shall not, in any calendar year, Redeem Units that, in the aggregate along with all Units otherwise transferred in that calendar year, would exceed 2% of the total Units outstanding as of the last day of that year.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>No Reserves shall be established by the Partnership for the Redemption of Units. The availability of funds for the Redemption of any Unit shall be subject to the availability of sufficient Cash Flow. Furthermore, Units may be Redeemed only if the Redemption would not impair the capital or the Operations of the Partnership and would not result in the termination under the Code of the Partnership&#146;s taxable year or its federal income tax status as a partnership, all as determined in the sole discretion of the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5(b). Applicable Redemption Price. </font></b><font size=2>The Redemption price for a Limited Partner&#146;s Units (the &#147;Applicable Redemption Price&#148;) will depend on when the Limited Partner presents his Units for Redemption and shall be determined as set forth below. If a Limited Partner presents his Units for Redemption:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>during the Offering Period, the Redemption price for one Unit will equal the net asset value for one Unit at the time the Redemption request is received, as that value is determined by the General Partner in its sole discretion;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>during the Reinvestment Period, but after the Offering Period of the Offering, the Redemption price for one Unit will equal 100% of the Limited Partner&#146;s Adjusted Capital Contribution for one Unit, plus 4% for each full twelve-month period since the Limited Partner was admitted as a Limited Partner, less the sum of:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>100% of previous distributions made to the Limited Partner on account of one Unit; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>100% of any previous allocations to the Limited Partner of investment tax credit amounts, if any, for one Unit; or</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-35</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>during the Liquidation Period, the Redemption price for one Unit will equal the equity for one Unit as set forth on the Partnership&#146;s balance sheet in its most recent Form 10-Q filed before the Redemption request, less 100% of any distributions made to the Limited Partner on account of one Unit since the date of the balance sheet.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5(c). Procedure for Presentment. </font></b><font size=2>A Limited Partner desiring to have a portion or all of his Units Redeemed shall submit a written request to the General Partner on a form approved by the General Partner and duly signed by all owners on the books of the Partnership of the Units to be Redeemed. Redemption requests shall be deemed given on the earlier of the date they are:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>personally delivered with receipt acknowledged; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>mailed by certified mail, return receipt requested, postage prepaid, at the General Partner&#146;s address set forth in this Agreement.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Requests arising from death, major medical expense and family emergency related to disability or a material loss of family income, collectively &#147;Hardship Redemptions,&#148; shall be treated as having been received at 12:01 A.M. EST on the day of receipt and all other Redemption requests shall be deemed received with the start of the business day during which received.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5(d). Priority of Redemption Requests. </font></b><font size=2>If the General Partner receives requests for the Partnership to redeem more Units than there are funds sufficient to redeem, the General Partner shall use its reasonable efforts to honor requests for Redemptions of Units with the same request date first as to Hardship Redemptions, second so as to provide liquidity for IRAs or Qualified Plans to meet required distributions and finally as to all other Redemption requests.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5(e). Notice and Closing of Redemption of Units. </font></b><font size=2>Within 30 days following the date on which the General Partner receives a written request from any Limited Partner to Redeem the Limited Partner&#146;s Units, the General Partner shall deliver a written notice to the Limited Partner (the &#147;Notice&#148;):</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>stating the number, if any, of the Units to be Redeemed; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if appropriate:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>stating the date of the Redemption of the Units, which shall be a date within 30 days following the date of the Notice;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>stating the Applicable Redemption Price with respect to the Units to be Redeemed; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>advising the Limited Partner that not less than 10 days before the Redemption date stated in the Notice (the &#147;Delivery Date&#148;) that the Limited Partner must duly execute and deliver to the Partnership all transfer instruments and other documents requested by the Partnership to evidence the Redemption of the Units. In the General Partner&#146;s discretion, these transfer instruments and documents may be prepared by the Partnership and enclosed with the Notice.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>On or before the Redemption date stated in the Notice, the Partnership shall pay the Applicable Redemption Price to the Limited Partner for each Unit Redeemed if:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>all of the Limited Partner&#146;s transfer instruments and other documents requested by the Partnership are duly executed and returned to the Partnership no later than the Delivery Date stated in the Notice; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the transfer instruments and other documents are in good order and acceptable to the General Partner, in its sole discretion.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>13.5(f). Effect of Redemption. </font></b><font size=2>If all of the Units owned by a Limited Partner are Redeemed by the Partnership, then the Limited Partner shall cease to be a Limited Partner in the Partnership and shall no longer have any of the rights or privileges of a Limited Partner in the Partnership.</font></p>
<p align="center"><Font size="2" face="serif">A-36</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ARTICLE XIV - DISSOLUTION AND WINDING-UP</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.1 Events Causing Dissolution. </font></b><font size=2>The Partnership shall be dissolved on the happening of any of the following events (each a &#147;Dissolution Event&#148;):</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.1(a). Withdrawal of General Partner</font></b><font size=2>. The withdrawal of the General Partner, whether voluntarily or involuntarily, unless a Substitute General Partner has been admitted to the Partnership in accordance with Section 12.5.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.1(b). Voluntary Dissolution</font></b><font size=2>. The voluntary dissolution of the Partnership either by:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the General Partner with the Consent of the Majority Interest; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Consent of a Majority Interest without action by the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.1(c). Sale of All Assets</font></b><font size=2>. The Sale of all or substantially all of the assets of the Partnership not constituting a Financing Transaction, but only with the vote or Consent of the Majority Interest.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.1(d). Expiration of Term</font></b><font size=2>. The expiration of the Partnership&#146;s term as set forth in Section 7.1.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.1(e). Dissolution Under Delaware Act</font></b><font size=2>. Any other event that causes the dissolution or winding-up of the Partnership under the Delaware Act.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.2 Winding Up of the Partnership; Capital Contribution by the General Partner Upon Dissolution</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.2(a). Effectiveness of Dissolution</font></b><font size=2>. Dissolution of the Partnership shall be effective on the day on which the Dissolution Event occurs, but the Partnership shall not terminate until a certificate of termination has been filed in accordance with the Delaware Act and the assets of the Partnership have been distributed as provided in Section 14.3. Notwithstanding the dissolution of the Partnership as provided above, its business and the affairs of the Partners, as such, shall continue to be governed by this Agreement until the Partnership is terminated.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.2(b). Liquidation</font></b><font size=2>. On dissolution of the Partnership, the General Partner (or any other Person effecting the winding-up) shall liquidate the assets of the Partnership and apply and distribute the proceeds as set forth in Section 14.3. Notwithstanding anything to the contrary contained in this Article XIV, if the General Partner (or any other Person effecting the winding-up) determines that an immediate sale of part or all of the Partnership assets would cause undue loss to the Partners, the General Partner (or any other Person effecting the winding-up), in order to avoid such loss, may, after having notified all of the Limited Partners, to the extent not then prohibited by law, defer liquidation of, and withhold from distribution for a reasonable time, any assets of the Partnership except those necessary to satisfy the Partnership&#146;s debts and obligations.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.2(c). Procedures on Liquidation</font></b><font size=2>. In connection with the dissolution of the Partnership:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>all Income or Losses or items thereof, and all amounts required to be specially allocated for the period before final termination, shall be credited or charged, as the case may be, to the Partners in accordance with Article XI;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if after all requirements of clause (i) of this subsection (c) have been accomplished, the General Partner has a deficit balance in its Capital Account, then within 30 days the General Partner shall contribute the amount of the deficit balance to the Partnership as a Capital Contribution.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><font size=2>For this purpose, any payments made by the General Partner as co-signatory or guarantor of any Indebtedness of the Partnership that has not yet been reimbursed to the General Partner by the Partnership at the time of dissolution of the Partnership, and any amounts due and unpaid to the General Partner with respect to any Partnership Loans at the time of dissolution, shall be deemed to be Capital Contributions by the General Partner to the Partnership and any obligation of the Partnership to reimburse or repay those amounts to the General Partner shall then cease;</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the proceeds from Sales and all other assets of the Partnership shall be applied and distributed in liquidation of the Partnership as provided in Section 14.3; and</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-37</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the General Partner (or any other Person effecting the winding-up) shall file all certificates and other documents as may be required by the Delaware Act, the Code and any other applicable laws to terminate the Partnership.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.2(d). Fees for Winding-Up</font></b><font size=2>. Whether the winding-up of the Partnership is effected by the General Partner or any other Person (whether selected by the Majority Interest or as required by law), either the General Partner or the other Person, as the case may be, shall be compensated for its services in connection therewith in an amount not in excess of the amount customarily paid to non-affiliated third-parties rendering similar services in respect of similar entities in the same geographic location.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.3 Application of Liquidation Proceeds Upon Dissolution. </font></b><font size=2>Following the occurrence of any Dissolution Event, the proceeds of liquidation Sales and the other assets of the Partnership shall be applied as follows and in the following order of priority:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>first, to the payment of creditors of the Partnership in order of priority as provided by law, except obligations to Partners or their Affiliates;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>next, to setting up any Reserve that the General Partner (or any other Person effecting the winding-up) determines is reasonably necessary for any contingent or unforeseen liability or obligation of the Partnership or the General Partner; the Reserve may, in the sole discretion of the General Partner (or the other Person effecting the winding-up) be deposited with an escrow agent selected by it to be held in escrow for the purpose of disbursing the Reserve in payment of any of the aforementioned contingencies, and at the expiration of such period as the General Partner (or the other Person effecting the winding-up) deems advisable, to distribute the remaining balance as provided in subsections (c) through (f), below;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>next, to the payment of all obligations to the Partners in proportion to, and to the extent of, advances made by them to the Partnership under the provisions of this Agreement;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>next, to the payment of all reimbursements to which the General Partner and its Affiliates may be entitled under this Agreement;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>next, to the Partners in proportion to and to, the extent of, the positive balances of their Capital Accounts; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>thereafter, 1% to the General Partner and 99% to the Limited Partners.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>14.4 No Recourse Against Other Partners. </font></b><font size=2>Each Limited Partner shall look solely to the assets of the Partnership for the return of, and any return on, the Limited Partner&#146;s Capital Contribution (whether before or after a Dissolution Event). If, after the complete payment and discharge of all debts, liabilities and other obligations of the Partnership, the assets of the Partnership are insufficient to provide the return of, or a return on, the Capital Contribution of any Limited Partner, the Limited Partner shall have no recourse against any other Limited Partner, the Partnership or the General Partner, except to the extent that the General Partner is obligated to make an additional Capital Contribution to the Partnership under Section 14.2.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XV - FISCAL MATTERS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.1 Title to Property and Bank Accounts. </font></b><font size=2>Unless trustees, nominees or other agents are used as permitted under this Agreement, all Investments and other assets of the Partnership shall be held in the name of the Partnership. The funds of the Partnership shall be deposited in the name of the Partnership in any bank account or accounts as are designated by the General Partner, and withdrawals therefrom shall be made on the signature of the General Partner or any Person or Persons as are designated in writing by the General Partner. The funds of the Partnership shall not be commingled with the funds of any other Person.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.2 Maintenance of and Access to Basic Partnership Documents</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.2(a). Maintenance of Documents</font></b><font size=2>. The General Partner shall maintain at the General Partner&#146;s principal office, on behalf of the Partnership, the following documents:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Participant List;</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-38</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a copy of the certificate of limited partnership and all amendments thereto, together with executed copies of any powers of attorney under which the certificate or any such amendment has been executed;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>copies of this Agreement and any amendments hereto;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>copies of the audited financial statements of the Partnership for the three most recently completed Fiscal Years, including, in each case, the balance sheet and related statements of operations, cash flows and changes in Partners&#146; equity at or for such Fiscal Year, together with the report of the Partnership&#146;s independent auditors with respect thereto;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>copies of the Partnership&#146;s federal, state and local income tax returns and reports, if any, for its three most recently completed Fiscal Years;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>records as required by applicable tax authorities including those specifically required to be maintained by &#147;reportable transactions,&#148; if so required of the Partnership; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>investor suitability records for Units sold for a period of six years.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.2(b). Access to Records</font></b><font size=2>. Each Limited Partner and his designated representative shall be given access to the records specified in Section 15.2(a)(i)-(vi) and any other records of the Partnership that relate to the business affairs and financial condition of the Partnership, and may inspect the same and make copies of the same during normal business hours, subject to the following:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a reasonable copying charge;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>providing reasonable advance written notice to the General Partner that states the date and time of the intended visit and identifies with reasonable specificity the documents that the Limited Partner or his representative will wish to examine or copy or both; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>in the case of copying the Participant List, compliance with subsection (c), below.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.2(c). Maintenance of Participant List</font></b><font size=2>. The General Partner shall mail a copy of the Participant List to any Limited Partner or his representative within 10 days of the Partnership&#146;s receipt of the Limited Partner&#146;s written request therefor together with a check in payment of the reasonable copying charge permitted under subsection (b), above; provided that, in connection with any request for a copy of the Participant List, the Limited Partner shall provide the certification required in the penultimate sentence of subsection (d), below.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.2(d). General Partner&#146;s Refusal to Provide Participant List</font></b><font size=2>. If the General Partner refuses or neglects to:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>permit a Limited Partner or his representative to examine the Participant List at the General Partner&#146;s principal office on behalf of the Partnership during normal business hours and with reasonable notice to the General Partner; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>mail a copy of the Participant List to the Limited Partner or his representative as required by subsection (c);</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>the General Partner shall be liable to such Limited Partner who requested the Participant List for the costs, including reasonable attorneys&#146; fees, incurred by such Limited Partner to compel production of the Participant List, and for the actual damages (if any) suffered by such Limited Partner by reason of such refusal or neglect. It shall be a defense that the requesting Limited Partner has failed or refused to provide the General Partner with the certification called for in the next sentence or that the actual purpose and reason for a request for inspection or a copy of the Participant List is to secure the Participant List or other information for the purpose of the sale, reproduction or other use thereof for a commercial purpose other than in the interest of the Limited Partner relative to the affairs of the Partnership. In connection with any such request, the General Partner will require the
Limited Partner requesting the Participant List to certify that the Participant List is not being requested for the purpose of the sale, reproduction or other use thereof for a commercial purpose unrelated to such Limited Partner&#146;s interest in the Partnership or for any unlawful purpose. The remedies provided under this Section 15.2(d) to Limited Partners requesting copies of the Participant List are in addition to, and shall not in any way limit, other remedies available to Limited Partners under federal law or the laws of any state.</font></p>
<p align="center"><Font size="2" face="serif">A-39</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>15.3 Financial Books and Accounting. </font></b><font size=2>The General Partner shall keep, or cause to be kept, complete and accurate financial books and records with respect to the business and affairs of the Partnership. Except to the extent otherwise required by the accounting methods adopted by the Partnership for federal income tax purposes, such books and records shall be kept on an accrual basis and all financial statements of the Partnership shall be prepared for each Fiscal Year in accordance with generally accepted accounting principles as applied within the United States of America.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.4 Fiscal Year. </font></b><font size=2>Except as may otherwise be determined from time to time by the General Partner (in a manner which is consistent with the Code and the Treasury Regulations thereunder or as consented to by the IRS), the Fiscal Year of the Partnership for both federal income tax and financial reporting purposes shall end on December 31 of each year.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.5 Reports</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.5(a). Quarterly Reports</font></b><font size=2>. Within 60 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, the General Partner shall send to each Person who was a Limited Partner at any time during such Fiscal Quarter the following written materials:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a report containing the same financial information as is contained in the Partnership&#146;s quarterly report on Form 10-Q filed with the Commission under the Securities Exchange Act of 1934, as amended;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a detailed statement identifying any services rendered or to be rendered to the Partnership by the General Partner or any of its Affiliates and the compensation received therefor and summarizing the terms and conditions of any contract which was not filed as an exhibit to the Registration Statement; provided that the requirement for such statement shall not be circumvented by lump-sum payments to non-Affiliates who then disburse the funds to, or for the benefit of, the General Partner or its Affiliates; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>until all Capital Contributions have been invested or committed to investment in Investments and Reserves, used to pay permitted Front-End Fees or returned to the Limited Partners (as provided in Section 11.5), a special report concerning all Investments made during such Fiscal Quarter which shall include:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a description of the types of Investments made;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the total Purchase Price paid for each category of Investment;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the amounts of cash used to acquire such Investments;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(D)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Acquisition Fees and Acquisition Expenses paid, identified by party, in connection therewith; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(E)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the amount of Capital Contributions, if any, which remain unexpended and uncommitted to pending Investments as of the end of such Fiscal Quarter.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.5(b). Annual Reports</font></b><font size=2>. Within 120 days after the end of each Fiscal Year, the General Partner shall send to each Person who was a Limited Partner at any time during such Fiscal Year the following written materials:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>financial statements for the Partnership for such Fiscal Year, including a balance sheet as of the end of such Fiscal Year and related statements of operations, cash flows and changes in Partners&#146; equity, which shall be prepared in accordance with Section 15.3 and shall be accompanied by an auditor&#146;s report containing an opinion of the Accountants;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>an analysis prepared by the General Partner (which need not be audited, but shall be reviewed by the Accountants) of distributions made to the General Partner and the Limited Partners during such Fiscal Year, separately identifying the portion (if any) of such distributions from:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Cash Flow during such period;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Cash Flow from prior periods which had been held as Reserves;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Cash Flow and/or Distributable Cash from Sales and refinancings; and</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">A-40</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(D)</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Capital Contributions originally used to establish a Reserve;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a status report with respect to each Investment which individually represents at least 10% of the aggregate Purchase Price of the Partnership&#146;s Investments held at the end of such Fiscal Year, which report shall state:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the condition of the Equipment and each material item thereof and of any collateral securing any Investment to which such report applies;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>how such Equipment or collateral was being used as of the end of such Fiscal Year (e.g., leased, serving as collateral for Secured Loans, operated directly by the Partnership, or held for lease, repair or Sale);</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the projected or intended use of such Equipment or collateral during the next following Fiscal Year;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(D)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the remaining term of the Investment; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(E)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>such other information as may be relevant to the value or use of such Equipment or collateral as the General Partner, in good faith, deems appropriate;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a breakdown of all fees and other compensation paid, and all costs and expenses reimbursed, to the General Partner or its Affiliates by the Partnership during such Fiscal Year identified (and properly allocated) as to type and amount:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>in the case of any fees and other compensation, such breakdown shall provide the information required under Section 15.5(a)(ii); and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>in the case of reimbursed costs and expenses, the General Partner shall also prepare an allocation of the total amount of all such items in accordance with this Agreement. Such cost and expense allocation shall be reviewed by the Accountants in connection with their audit of the financial statements of the Partnership for such Fiscal Year in accordance with the American Institute of Certified Public Accountants United States Auditing standards relating to special reports and such Accountants shall state that, in connection with the performance of such audit, such Accountants reviewed, at a minimum, the time records of, and the nature of the work performed by, individual employees of the General Partner or its Affiliates, the cost of whose services were reimbursed. The additional costs of the special review required by this clause will be itemized by the Accountants on
a Program by Program basis and shall be reimbursed to the General Partner by the Partnership only to the extent that such reimbursement, when added to the cost for administrative services rendered, does not exceed the amount the Partnership would be required to pay independent third-parties for comparable administrative services in the same geographic location; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>a special report containing the information required by Section 15.5(a)(iii).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.5(c). Reports to State Securities Law Administrators</font></b><font size=2>. The General Partner shall submit to all state securities law Administrators, including Arizona, California and Ohio, any information which such Administrator requires, including, but not limited to:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reports and statements required by this Agreement to be distributed to Limited Partners; or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>reports required to be filed with the Administrator by state securities laws, regulations or policies.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.6 Tax Returns and Tax Information.</font></b><font size=2> The General Partner shall:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>prepare, or cause the Accountants to prepare, in accordance with applicable laws and regulations, the Partnership&#146;s tax returns (federal, state, local and foreign, if any) for each Fiscal Year within 75 days after the end of such Fiscal Year; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>deliver to each Partner by March 15 following each Fiscal Year a Schedule K-1 or other statement permitted under the Code or by the IRS setting forth such Partner&#146;s share of the Partnership&#146;s Income or Loss for such Fiscal Year.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.7 Accounting Decisions. </font></b><font size=2>All decisions as to accounting matters, except as specifically provided to the contrary in this Agreement, shall be made by the General Partner in accordance with the accounting methods adopted by the Partnership for federal income tax purposes or otherwise in accordance with generally accepted accounting principles. Such decisions must be acceptable to the Accountants, and the General Partner may rely upon the advice of the Accountants as to whether such decisions are in accordance with the methods adopted by the Partnership for federal income tax purposes or generally accepted accounting principles.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.8 Federal Tax Elections. </font></b><font size=2>The Partnership, in the sole discretion of the General Partner, may make elections for federal tax purposes as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.8(a). Elections Under Section 754 of the Code</font></b><font size=2>. In case of a transfer of all or part of a General Partner&#146;s Partnership Interest or a Limited Partner&#146;s Units, the Partnership may timely elect under Section 754 of the Code (or corresponding provisions of future law), and under similar provisions of applicable state or local income tax laws, to adjust the basis of the assets of the Partnership. In that event, any basis adjustment attributable to the election shall be allocated solely to the transferee.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.8(b). Other Elections</font></b><font size=2>. All other elections, including but not limited to the adoption of accelerated depreciation and cost recovery methods, required or permitted to be made by the Partnership under the Code shall be made by the General Partner in such a manner as will, in the opinion of the General Partner (as advised by Counsel or the Accountants as the General Partner deems necessary), be most advantageous to the Limited Partners as a group. The Partnership shall, to the extent permitted by applicable law and regulations, elect to treat as an expense for federal income tax purposes all amounts incurred by it for state and local taxes, interest and other charges which may, in accordance with applicable law and regulations, be considered as expenses.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.8(c). Agreement to be Bound by Elections</font></b><font size=2>. The Partnership, the General Partner and each Limited Partner hereby agree to be legally bound by the provisions of this subsection (c) and further agree that, in the General Partner&#146;s sole discretion, the Partnership and all of its Partners may elect a safe harbor under which the fair market value of a Partnership Interest that is transferred in connection with the performance of services is treated as being equal to the liquidation value of that interest for transfers on or after the date final regulations providing the safe harbor are published in the Federal Register. If the General Partner determines that the Partnership and all of its Partners will elect the safe harbor, which determination may be made solely in the best interests of the General Partner, the Partnership, the General Partner and each Limited Partner further agree that:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Partnership shall be authorized and directed to elect the safe harbor;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the Partnership and each of its Partners (including any Person to whom a Partnership Interest is transferred in connection with the performances of services) shall comply with all requirements of the safe harbor with respect to all Partnership Interests transferred in connection with the performance of services while the election remains effective; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the General Partner, in its sole discretion, may cause the Partnership to terminate the safe harbor election, which determination may be made in the sole interests of the General Partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.9 Tax Matters Partner</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>15.9(a). Designation of Tax Matters Partner.</font></b><font size=2> The General Partner is hereby designated the Partnership&#146;s &#147;Tax Matters Partner&#148; under Section 6231(a)(7) of the Code, and may hereafter designate its successor as Tax Matters Partner, to manage administrative and judicial tax proceedings conducted at the Partnership level by the IRS with respect to Partnership matters. Any Partner, other than the Tax Matters Partner, shall have the right to participate in such administrative or judicial proceedings relating to the determination of Partnership items at the Partnership level to the extent provided by Section 6224 of the Code and at the Partner&#146;s own expense. The Limited Partners shall not act independently with respect to tax audits or tax litigation affecting the Partnership, and actions taken by the General Partner as Tax Matters Partner in connection with tax audits
shall be binding in all respects upon the Limited Partners, except as provided below.</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>15.9(b). Duties of Tax Matters Partner.</font></b><font size=2> The Tax Matters Partner shall have the following duties:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to the extent and in the manner required by applicable law and regulations, the Tax Matters Partner shall furnish the name, address, number of Units and taxpayer identification number of each Limited Partner to the Secretary of the Treasury or his delegate (the &#147;Secretary&#148;); and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to the extent and in the manner required by applicable law and regulations, the Tax Matters Partner shall keep each Limited Partner informed of administrative and judicial proceedings for the adjustment at the Partnership level of any item required to be taken into account by a Limited Partner for income tax purposes (such judicial proceedings referred to hereinafter as &#147;judicial review&#148;).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:4pt;text-align:left;'><b><font size=2>15.9(c). Indemnification of Tax Matters Partner</font></b><font size=2>. Subject to Section 9.3, the Partnership shall indemnify and reimburse the Tax Matters Partner for all expenses, including legal and accounting fees, claims, liabilities, losses and damages incurred in connection with any administrative or judicial proceeding with respect to the tax liability of the Partners. The payment of all such expenses shall be made before any distributions are made from Distributable Cash. Neither the General Partner nor any Affiliate nor any other Person except the Partnership shall have any obligation to provide funds for such purpose. The taking of any action and the incurring of any expense by the Tax Matters Partner in connection with any such proceeding, except to the extent required by law, shall be in the sole discretion of the Tax Matters Partner. The provisions on limitations of liability of the General
Partner and indemnification set forth in Section 9.3 shall be fully applicable to the General Partner acting in its capacity as Tax Matters Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:4pt;text-align:left;'><b><font size=2>15.9(d). Authority of Tax Matters Partner</font></b><font size=2>. The Tax Matters Partner is hereby authorized, but not required:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to enter in to any settlement with the IRS with respect to any tax audit or judicial review, in which agreement the Tax Matters Partner may expressly state that such agreement shall bind the other Partners, except that such settlement agreement shall not bind any Partner who (within the time prescribed pursuant to Section 6224(c)(3) of the Code and regulations thereunder) files a statement with the IRS providing that the Tax Matters Partner shall not have the authority to enter into a settlement agreement on the behalf of such Partner;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if a notice of a final administrative adjustment at the partnership level of any item required to be taken into account by a Partner for tax purposes (a &#147;final adjustment&#148;) is mailed to the Tax Matters Partner, to seek judicial review of such final adjustment, including the filing of a petition for readjustment with the Tax Court, the District Court of the United States for the district in which the Partnership&#146;s principal place of business is located, the United States Court of Claims or any other appropriate forum;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to intervene in any action brought by any other Partner for judicial review of a final adjustment;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to file a request for an administrative adjustment with the IRS at any time and, if any part of such request is not allowed by the IRS, to file a petition for judicial review with respect to such request;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item required to be taken in to account by a Partner for tax purposes, or an item affected by such item; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(vi)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>to take any other action on behalf of the Partners or the Partnership in connection with any administrative or judicial tax proceeding to the extent permitted by applicable law or regulations.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:14pt;text-align:center;'><B><font SIZE=2>ARTICLE XVI - MEETINGS AND VOTING RIGHTS OF THE LIMITED PARTNERS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:4pt;text-align:left;'><b><font size=2>16.1 Meetings of the Limited Partners</font></b></p>

<p style=' margin-bottom:0pt; margin-top:4pt;text-align:left;'><b><font size=2>16.1(a). Procedure for Limited Partner Meetings.</font></b><font size=2> A meeting of the Limited Partners for any purpose(s) may be called by the General Partner. A meeting of the Limited Partners shall be called by the General Partner following its receipt of written request(s), either in person or by registered mail, for a meeting on any matter on which the Limited Partners may vote as set forth in this Article XVI from Limited Partners holding 10% or more of the then outstanding Units. Every such request for a meeting shall state with reasonable specificity the purpose(s) for which such meeting is to be held and the text of any matter, resolution or action proposed to be voted upon by the Limited Partners at such meeting. Within 10 days following the receipt of such a request, the General Partner shall give Notice to all Limited Partners of such meeting in the manner and for a time and place as
specified in subsection (b), below. In addition, the General Partner may, and if so requested by the Limited Partners in the manner described above, shall, submit the proposed matter, resolution or action for action by Consent of the Limited Partners, in lieu of a meeting.</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>16.1(b). Delivery of Notice.</font></b><font size=2> A Notice of any such meeting or action by written Consent shall be given to all Limited Partners either:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>personally or by certified mail (if such meeting is being called, or Consent action is being solicited, by the General Partner upon the request of the Limited Partners); or</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>by regular mail (if such meeting is being called, or Consent action is being solicited, by the General Partner).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>A meeting called pursuant to such Notice shall be held, or Consent action taken, not less than 15 days nor more than 60 days after the date such Notice is distributed, subject to extension to the extent necessary to comply with applicable requirements of the Commission and Administrators. Such Notice shall be delivered or mailed to each Limited Partner at his record address, or at such other address as he may have furnished in writing to the General Partner as his address for receipt of Notices and, with respect to meetings, shall state the place, date and time of such meeting (which shall be the place, date and time specified in the request for such meeting or, if none, such other place, date and time as the General Partner shall determine to be reasonable and convenient to the Limited Partners) and, with respect both to meetings or solicitations of Consent actions, shall state the purpose(s) for which such
meeting is to be held or Consent action requested.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If any meeting of the Limited Partners is properly adjourned to another time or place, and if any announcement of the adjournment of time or place is made at the meeting, it shall not be necessary to give notice of the adjourned meeting. The presence in person or by proxy of a Majority Interest shall constitute a quorum at all meetings of the Limited Partners; provided, however, that, if there be no such quorum, holders of a majority of the Units so present or so represented may adjourn the meeting from time to time without further notice, until a quorum shall have been obtained. No Notice of any meeting of Limited Partners need be given to any Limited Partner who attends in person or is represented by proxy (except when a Limited Partner attends a meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business on the ground that the meeting is not lawfully
called or convened) or to any Limited Partner otherwise entitled to such Notice who has executed and filed with the records of the meeting, either before or after the time thereof, a written waiver of such Notice.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.1(c). Record Date for Voting</font></b><font size=2>. For the purpose of determining the Limited Partners entitled to vote on any matter submitted to the Limited Partners at any meeting of such Limited Partners, or to take action by Consent in lieu thereof, or any adjournment thereof, the General Partner or the Limited Partners requesting such meeting may fix, in advance, a date as the record date, which shall be a date not more than 60 days nor less than 10 days prior to any such meeting (or Consent action), for the purpose of any such determination.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.1(d). Proxies</font></b><font size=2>. Any Limited Partner may authorize any Person or Persons to act for such Limited Partner by proxy in respect of all matters as to which such Limited Partner is entitled to participate, including matters proposed for actions by Consent. Every proxy must be signed by a Limited Partner or his attorney-in- fact. No proxy shall be valid after the expiration of eleven months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Limited Partner executing it.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.1(e). Procedure at Meeting</font></b><font size=2>. At each meeting of the Limited Partners, the Limited Partners present or represented by proxy may adopt such rules for the conduct of such meeting as they shall deem appropriate, provided that such rules shall not be inconsistent with the provisions of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.2 Voting Rights of the Limited Partners. </font></b><font size=2>Subject to Section 16.3, the Limited Partners, acting by Consent of the Majority Interest or by vote of the Majority Interest at a meeting duly called for such purpose, may take the following actions without the concurrence of the General Partner:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>amend this Agreement;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>dissolve the Partnership;</font></p> </td> </tr></table>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>remove the General Partner and elect one or more Substitute General Partners;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>approve or disapprove of the Sale or series of Sales of all, or substantially all, of the assets of the Partnership, except for any Sale or series of Sales that is in connection with a Financing Transaction or in the ordinary course of liquidating the Partnership&#146;s Investments during the Liquidation Period; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>modify or terminate on 60 days&#146; notice any contract or arrangement with the General Partner or any of its Affiliates to provide goods or services for the Partnership, other than contracts specifically authorized under this Agreement, including without limitation the Origination and Servicing Agreement, as provided for in Section 9.2(m).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The General Partner and its Affiliates may not vote or Consent on matters submitted to the Limited Partners regarding the removal of the General Partner or regarding any transaction between the Partnership and the General Partner or any of its Affiliates. In determining the requisite percentage of Units necessary to approve a matter on which the General Partner or its Affiliates may not vote or Consent, any Units owned by the General Partner or its Affiliates shall not be included in either the numerator or the denominator.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.3 Limitations on Action by the Limited Partners. </font></b><font size=2>This Agreement may not be amended by the Limited Partners to do the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.3(a). No Authority to Manage</font></b><font size=2>. Allow the Limited Partners to take part in the control or management of the Partnership&#146;s business or otherwise subject a Limited Partner to liability as a general partner under the Delaware Act or under the laws of any other jurisdiction in which the Partnership may be qualified or own an Investment.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.3(b). Alter Rights</font></b><font size=2>. Alter the rights, powers, duties or obligations of the General Partner without the Consent of the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.3(c). Contract Away Fiduciary Duty</font></b><font size=2>. Contract away the fiduciary duty owed to any Limited Partner by the General Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.3(d). Alter Income or Loss</font></b><font size=2>. Except in connection with the offer and sale of the Units as provided in this Agreement, alter the interest of any Partner in any item of Income or Loss or in distributions without the consent of each affected Partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>16.3(e). Amend the Procedure to Amend the Agreement</font></b><font size=2>. Without the consent of all of the Limited Partners, amend the provisions of this Agreement relating to how this Agreement may be amended.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XVII - AMENDMENTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1 Amendments by the General Partner. </font></b><font size=2>In addition to any amendments by the Limited Partners under Section 16.2, as limited by Section 16.3, this Agreement may be amended, at any time and from time to time, by the General Partner without the Consent of a Majority Interest:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1(a). Add to Representations</font></b><font size=2>. To add to the representations, duties or obligations of the General Partner or to surrender any right or power granted to the General Partner in this Agreement;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1(b). Cure Ambiguity</font></b><font size=2>. To cure any ambiguity in this Agreement, to correct or supplement any provision in this Agreement that may be inconsistent with any other provision in this Agreement, or to add any provision to this Agreement with respect to matters or questions arising under this Agreement that is not inconsistent with the other provisions of this Agreement;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1(c). Preserve the Status</font></b><font size=2>. To preserve the status of the Partnership as a partnership for federal income tax purposes, or as a limited partnership under the Delaware Act or any comparable law of any other state in which the Partnership may be required to be qualified;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1(d). Regulatory Compliance</font></b><font size=2>. To delete any provision of this Agreement, or add any provision to this Agreement, required to be so deleted or added by the staff of the Commission, by any other federal or state regulatory body or other agency (including, without limitation, any &#147;blue sky&#148; commission), or by any Administrator or similar such official;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1(e). ERISA Compliance</font></b><font size=2>. To permit the Units to fall within any exemption from the definition of &#147;plan assets&#148; contained in Section 2510.3-101 of Title 29 of the Code of Federal Regulations or any successor regulation or law;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>17.1(f). Amendments to Allocations</font></b><font size=2>. If the Partnership is advised by Counsel, the Accountants or the IRS that any allocation of Income, Loss or distribution provided for in this Agreement is unlikely to be respected for federal income tax purposes, to amend the allocation provisions of this Agreement, in accordance with that advice to the minimum extent necessary to comply with federal income tax requirements and still effect, as nearly as practicable, the original plan of allocations and distributions set forth in this Agreement; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>17.1(g). Change the Name</font></b><font size=2>. To change the name of the Partnership or the location of its principal office.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XVIII - POWER OF ATTORNEY</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>18.1 Appointment of Attorney-in-Fact. </font></b><font size=2>By subscribing for Units and being admitted as a Limited Partner of the Partnership under this Agreement, each Limited Partner makes, constitutes and appoints the General Partner, each authorized officer of the General Partner and each Person who thereafter becomes a Substitute General Partner during the term of the Partnership, with full power of substitution, the true and lawful attorney-in-fact of, and in the name, place and stead of, such Limited Partner, with the power from time to time to make, execute, sign, acknowledge, swear to, verify, deliver, record, file and publish:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>this Agreement, the Partnership&#146;s certificate of limited partnership and any amendment of any thereof, including, without limitation, amendments reflecting the addition of any Person as a Partner or any admission or substitution of other Partners (or the Capital Contribution made by any such Person or by any Partner) and any other document, certificate or instrument required to be executed and delivered, at any time, in order to reflect the admission of any Partner (including, without limitation, any Substitute General Partner and any Substitute Limited Partner) to the Partnership;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other document, certificate or instrument required to reflect any action of the Partners duly taken in the manner provided for in this Agreement, whether or not such Limited Partner voted in favor of or otherwise Consented to such action;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other document, certificate or instrument that may be required by any regulatory body or other agency or the applicable laws of the United States, any state or any other jurisdiction in which the Partnership is doing or intends to do business or that the General Partner deems advisable;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any certificate of dissolution or cancellation of the certificate of limited partnership that may be reasonably necessary to effect the termination of the Partnership; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(v)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any instrument or documents required to continue or terminate the business of the Partnership under Section 12.5 and Article XIV; provided that no such attorney-in-fact shall take any action as attorney-in-fact for any Limited Partner if such action could in any way increase the liability of such Limited Partner beyond the liability expressly set forth in this Agreement or alter the rights of such Limited Partner under Article XI, unless (in either case) such Limited Partner has given a power of attorney to such attorney-in-fact expressly for such purpose.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>18.2 Amendments to Agreement and Certificate of Limited Partnership. </font></b><font size=2>If, under this Agreement, any action, adoption proposal, right, power or authority requires the Consent, vote, ratification or approval of fewer than all of the Limited Partners, then, on the satisfaction of that requirement, the Consent, vote, ratification or approval shall be deemed, and each Limited Partner hereby agrees that it shall constitute, that of all of the Limited Partners for all purposes, including unanimity requirements under the Delaware Act. Limited Partners who did not respond in connection with the proposed Consent, vote, ratification or approval shall be deemed to have abstained for all purposes under this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>18.3 Power Coupled With an Interest. </font></b><font size=2>The grant of authority by each Limited Partner in Section 18.1:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>is a special power of attorney coupled with an interest in favor of the attorney-in-fact and shall be irrevocable and shall survive the death, incapacity, insolvency, dissolution or termination of the Limited Partner;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>may be exercised for the Limited Partner by a signature of the attorney-in-fact or by listing or referring to the names of all of the Limited Partners, including that Limited Partner, and executing any instrument with a single signature of any one of the attorneys-in-fact acting as attorney-in- fact for all of them; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>shall survive the Assignment by any Limited Partner of all or any portion of the Limited Partner&#146;s Units, provided that, if any Assignee of all of a Limited Partner&#146;s Units has furnished to the General Partner a power of attorney complying with the provisions of Section 18.1 and the admission to the Partnership of the Assignee as a Substitute Limited Partner has been approved by the General Partner, this power of attorney shall survive the Assignment with respect to the assignor Limited Partner for the sole purpose of enabling the attorneys-in-fact to execute, acknowledge and file any instrument necessary to effect the Assignment and admission and shall thereafter terminate with respect to the assignor Limited Partner.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>ARTICLE XIX - GENERAL PROVISIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.1 Notices, Approvals and Consents. </font></b><font size=2>All Notices, approvals, Consents or other communications under this Agreement shall be in writing and signed by the party giving the same and, except as otherwise specifically provided in this Agreement, shall be deemed to have been delivered when the same are deposited in the United States mail and sent by first class or certified mail, postage prepaid; hand delivered; sent by overnight courier; or sent by facsimile and confirmed by telephone during normal business hours.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In each case, delivery shall be made to the parties at the addresses set forth below or at any other addresses as the parties may designate by Notice to the Partnership as specified in Section 5.1:</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>If to the Partnership: LEAF Equipment Leasing Income Fund III, L.P., 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801, with a copy to c/o LEAF Asset Management, LLC, General Partner, 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103; Telephone Number: 800-819-5556 (the Partnership) and 215-569-1844 (the General Partner); Fax Number: 215-561-0844 (the Partnership) and 215-561-6249 (the General Partner).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>If to the General Partner: LEAF Asset Management, LLC, 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103; Telephone Number: 215-569-1844; Telecopier Number: 215-561-6249.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>If to any Limited Partner, at the address set forth in the Limited Partner&#146;s Subscription Agreement unless a different address has been provided to the Partnership under Section 5.1.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.2 Further Assurances. </font></b><font size=2>The Partners agree to execute, acknowledge and deliver all further instruments and do all further acts and things as may reasonably be necessary to carry out the intent and purpose of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.3 Captions. </font></b><font size=2>Captions contained in this Agreement are inserted only as a matter of convenience and do not define, limit, extend or describe the scope of this Agreement or the intent of any provision of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.4 Binding Effect. </font></b><font size=2>Except to the extent required under the Delaware Act and for fees, rights to reimbursement and other compensation provided as such, none of the provisions of this Agreement shall be for the benefit of, or be enforceable by, any creditor of the Partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.5 Severability. </font></b><font size=2>If one or more of the provisions of this Agreement or any application thereof shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement and any other application thereof shall not be affected or impaired in any way thereby, and the remaining provisions shall be interpreted consistently with the omission of the invalid, illegal or unenforceable provision or applicable thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.6 Integration. </font></b><font size=2>This Agreement constitutes the entire agreement among the parties pertaining to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements and understandings of the parties in connection with the subject matter of this Agreement that conflict with the express terms of this Agreement. No covenant, representation or condition not expressed in this Agreement shall affect, or be effective to interpret, change or restrict, the express provisions of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.7 Applicable Law. </font></b><font size=2>This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of Delaware, including, without limitation, the Delaware Act (except and solely to the extent that provisions of the laws of any other jurisdiction are stated to be applicable in any section of this Agreement), without giving effect to the conflict of laws provisions thereof.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.8 Counterparts. </font></b><font size=2>This Agreement may be signed by each party to this Agreement on a separate counterpart (including, in the case of a Limited Partner, a separate Subscription Agreement or signature page executed by one or more such Partners), but all such counterparts, when taken together, shall constitute but one and the same instrument.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.9 Creditors. </font></b><font size=2>No creditor who makes a loan to the Partnership shall have or acquire at any time, as a result of making the loan, any direct or indirect interest in the profits, capital or property of the Partnership other than as a secured creditor.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.10 Successors and Assigns. </font></b><font size=2>Each and every covenant, term, provision and agreement contained in this Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective parties to this Agreement. In furtherance of, and not in limitation of, the foregoing, the General Partner may assign, as collateral security or otherwise, any items of compensation payable to it under the terms of this Agreement. Notwithstanding any such assignment, however, the General Partner, and not any such assignee, shall remain solely liable for its obligations under this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>19.11 Waiver of Action for Partition. </font></b><font size=2>Each of the parties to this Agreement irrevocably waives during the term of the Partnership any right that he may have to maintain any action for partition with respect to the Partnership&#146;s Investments and other property and assets.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:5%;text-align:left;'><font size=2>IN WITNESS WHEREOF, the undersigned have executed this Agreement as of this ___________ day of ____________________, 200_.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>GENERAL PARTNER:</font></B></p> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br> <b><font size=2>LEAF Asset Management, LLC</font></b></p> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Its:&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>ORIGINAL LIMITED PARTNER:</font></B></p> </td> </tr>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>  </p> </td> </tr>
    <tr>


      <td valign=top width="5%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top width="7%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top width="37%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top width="7%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top width="8%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top width="36%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="7%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=2>LIMITED PARTNERS:</font></B></p> </td> </tr>
    <tr>

        <td width="5%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="7%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>By: LEAF Asset Management, LLC, as Attorney in Fact</font></p> </td> </tr>
    <tr>

        <td width="5%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="7%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="37%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="7%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="7%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2><br>
          By:&nbsp;</font></p>
      </td>

        <td width="37%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'>  </p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
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        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Name:&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Its:&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<p align="center"><Font size="2" face="serif">A-48</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>






<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><b><font size=2><a name="p160a"></a>Appendix
  B</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2><a name="p16a"></a>PRIOR PERFORMANCE TABLES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following Tables I, II and III, which are unaudited, provide certain information concerning Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) and Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), previous public equipment leasing programs sponsored by LEAF Financial Corporation, an affiliate of our general partner, and a former subsidiary of LEAF Financial Corporation. In this regard, beginning in 2002 LEAF I was sponsored by LEAF Asset Management, Inc., a former subsidiary of LEAF Financial that was merged into LEAF Financial in June 2004.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Buying a unit in us will not give you any ownership interest in any of LEAF Financial&#146;s prior programs, and you should not assume that you will experience investment results or returns, if any, comparable to those of the investors in those prior programs sponsored by LEAF Financial. See the &#147;Other Programs Managed by Our General Partner or Its Affiliates&#148; section in the prospectus for a narrative discussion of the prior public equipment leasing and finance programs sponsored by LEAF Financial.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Additional information in the Form 10-K Annual Report and the Form 10-Q Quarterly Report filed with the SEC by LEAF I and LEAF II for each reporting period may be obtained without charge by contacting LEAF Financial Corporation, 1818 Market Street, 9<sup>th</sup> Floor, Philadelphia, Pennsylvania 19103, Attention: Corporate Secretary. The reports are also available on request at the SEC&#146;s website on the Internet at http://www.sec.gov.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>TABLE I</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Experience In Raising And Investing Funds</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following table sets forth certain information, as of June 30, 2006, concerning the experience of LEAF Financial Corporation, an affiliate of our general partner, in raising and investing limited partners&#146; funds in previous equipment leasing programs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="98%">
    <tr>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=1>LEAF I</font></B></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=1>LEAF II</font></B></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td> </tr>
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        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Date offering closed</font>                                                                                                                                                                                                           </p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>08/15/04</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>TBD</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dollar amount offered</font>                                                                                                                                                                                                   </p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>50,000,000 </font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>60,000,000</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
      </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dollar amount raised</font>                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,060,774</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100.00</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>33,695,632</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>100</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Less: Offering expenses</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Sales commissions</font>                                                                                                                                                                                                                   </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,284,700</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7.53</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,262,673</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6.72</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Underwriting fees</font>                                                                                                                                                                                                                        </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>320,727</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.88</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>978,598</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2.90</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Organization and offering expenses paid to general partner or its affiliates</font>                                                                                                                                                                                                                                </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>511,688</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3.00</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,179,335</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3.50</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Reserves</font>                                                                                                                                                                                                                                                                      </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>298,782</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.75</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>292,750</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.87</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Offering proceeds available for investment</font>                                                                                     </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>14,644,877</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>85.84</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>28,982,276</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>86.01</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Debt proceeds</font>                                                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>76,666,297</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>83,315,780</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Total equipment acquired</font>                                                                                                                                                                               </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>154,898,516</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>107,235,444</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Acquisition fees paid to general partner</font>                                                                                                    </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,990,285</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,223,284</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Equipment acquisition cost as a percentage of amount raised:</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Purchase price</font>                                                                                                                                                                                                                                         </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>907.92</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>318.25</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Acquisition fees paid to general partner</font>                                                                                                    </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17.53</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6.60</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Percent invested</font>                                                                                                                                                                                                                              </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>85.84</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>86.01</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Percent leverage</font>                                                                                                                                                                                                                               </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>81.80</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>71.20</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>%</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Date offering commenced</font>                                                                                                                                                                               </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>08/15/02</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12/22/04</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Maximum offering period (in months)</font>                                                                                                                  </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Actual offering period (in months)</font>                                                                                                                                 </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>TBD</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Months to invest 90% of amount available for investment</font>     </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>14</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Past performance is not necessarily indicative of future performance.</font></p>
<p align="center"><Font size="2" face="serif">B-1</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>TABLE II</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Compensation to Our General Partner and Affiliates</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Except as otherwise noted below, the following table sets forth certain information, as of June 30, 2006 concerning the compensation derived by their general partner, LEAF Financial, an affiliate of our general partner and  LEAF I&#146;s former general partner, LEAF Financial&#146;s former subsidiary, LEAF Asset Management, Inc. that was merged into LEAF Financial in 2004, from previous equipment leasing programs. Also, all amounts presented are cumulative from the beginning of the offering of each program to June 30, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="98%">
    <tr>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=1>LEAF I</font></B></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><B><font SIZE=1>LEAF II</font></B></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>


      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Date offering commenced</font>                                                                                                                                                                                                                                                                                                                            </p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8/15/02</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="1%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="8%" valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12/22/04</font></p> </td>


      <td width="2%" valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Date offering closed</font>                                                                                                                                                                                                                                                                                                                                                        </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8/15/04</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font SIZE=2>TBD</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dollar amount raised</font>                                                                                                                                                                                                                                                                                                                                                      </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,060,774</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>33,695,632</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' margin-left:.4pt;border-collapse:collapse;' width="98%">
    <tr>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>The following information is as of June 30, 2006</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:8pt;margin-bottom:0pt;'><font size=2>Amounts paid to general partner and its affiliates from offering proceeds:</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Underwriting commissions</font>                                                                                                                                                                                                                                                                                                                     </p> </td>


      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom width="1%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td valign=bottom width="8%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>320,727</font></p> </td>


      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom width="1%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>


      <td valign=bottom width="8%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>978,598</font></p> </td>


      <td valign=bottom width="2%" >
        <p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Organization and offering expense reimbursements</font>                                                                                                                                                                                      </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>511,688</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,179,335</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Acquisition fees</font>                                                                                                                                                                                                                                                                                                                                                                           </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,990,285</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,223,283</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Dollar amount of cash generated from operations before deducting payments/accruals to general partner and affiliates</font>                                                                                                                                                                                                                                                                                  </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,267,956</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,944,116</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Amounts paid or accrued to general partner and its affiliates from operations:</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Acquisition fees</font>                                                                                                                                                                                                                                                                                                                                                                           </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,990,285</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,223,283</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Management fees</font>                                                                                                                                                                                                                                                                                                                                                                    </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,831,964</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>461,929</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom >

<p style=' margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Administrative expense reimbursements</font>                                                                                                                                                                                                                                               </p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,900,729</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>630,719</font></p> </td>

        <td valign=bottom >

<p style=' margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Past performance is not necessarily indicative of future performance.</font></p>
<p align="center"><Font size="2" face="serif">B-2</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>











<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><B><font SIZE=2>TABLE III</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Operating Results of Prior Public Programs &#150; LEAF I</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following table summarizes the operating results of Lease Equity Appreciation Fund I, L.P., which was sponsored by LEAF Financial Corporation, an affiliate of our general partner, and by a former subsidiary of LEAF Financial that was merged into LEAF Financial in 2004. The program&#146;s records are maintained in accordance with Generally Accepted Accounting Principles (&#147;GAAP&#148;) for financial statement purposes. No results are shown for 2002, because the program did not conduct any activities, other than holding an escrow account for subscription proceeds, until it achieved its minimum required offering proceeds in March, 2003.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>6
          Months<br>
          Ended<br>
          06/30/06</font></b></p>
      </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>2005</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>2004</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>2003</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Revenues</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net gain (loss) on sales or remarketing of equipment</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>166,216</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="3%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>126,281</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="3%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>60,764</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="3%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(10,206</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Gross revenue</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3,795,274</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>7,577,548</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3,476,359</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>983,261</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Less:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Interest expense</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(2,158,429</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(4,344,009</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,873,986</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(321,472</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Depreciation expense</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(355,773</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(820,650</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(342,865</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(167,622</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Management fees - general partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(534,668</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(840,403</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(383,798</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(73,095</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Administrative expense reimbursement - general partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(268,953</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(554,611</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(482,180</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(594,985</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>General and administrative</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(276,330</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(475,828</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(309,040</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(207,166</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Provision for (reversal of) bad debts (2)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(339,260</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,352,191</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(394,928</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(5,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net (loss) income &#150; GAAP</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>28,077</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(683,863</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(249,674</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(396,285</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net (loss) income &#150; GAAP &#150; allocable to limited partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>27,796</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(677,024</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(247,178</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(392,322</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Taxable income (loss) from operations (1)(3)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>11,118</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,218,140</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2> (2,162,550</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(202,837</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash provided by (used in) operating activities</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>2,165,346</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(285,980</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>2,189,315</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(734,969</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash used in investing activities</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(193,997</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(29,050,817</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(30,867,192</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(24,713,077</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash provided by financing activities</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,392,195</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>30,231,648</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>29,958,363</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>26,477,439</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash generated from operations, sales, and refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>579,154</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>894,851</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,280,486</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,029,393</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Less:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash distributions to investors from operations, sales and refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>685,109</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,373,982</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>967,980</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>474,950</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash distributions to general partner from operations, sales and refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>6,920</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>13,879</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>9,768</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4,794</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash generated from (used by) operations, sales and refinancing after cash distributions</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(112,875</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(493,010</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>302,738</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>549,649</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Tax data and distributions per $1,000 limited partner investment</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Federal income tax results:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Taxable income from operations (1)(3)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(71</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(158</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(33</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash distributions to investors</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>40</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>80</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>71</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>78</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Source (on GAAP basis)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Return of capital</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>40</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>80</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>71</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>78</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Source (on cash basis)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Operations</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Sales</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Other</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>40</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>80</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>71</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>78</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Weighted average number of limited partnership ($100) units outstanding</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>171,746</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>171,746</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>137,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>61,149</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<br>

<hr noshade size="1" width="100"  align="left">
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="5%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The difference between Net income &#150; GAAP and Taxable income from operations is because of different methods of calculating depreciation and amortization, the use of the reserve method for providing for possible doubtful accounts under GAAP, and different methods of recognizing revenue on direct finance leases under GAAP that generally are similar to full payout leases as defined under LEAF I&#146;s partnership agreement.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The program records a provision for bad debts to provide for estimated credit losses in its portfolio. This policy is based on an analysis of the aging of the program&#146;s portfolio, a review of the non-performing receivables and leases, prior collection experience and historical loss experience.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(3)</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Taxable income is not calculated on an interim basis, only at the end of a year.</font></p>
    </td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Past performance is not necessarily indicative of future performance.</font></p>


<p align="center"><Font size="2" face="serif">B-3</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=2>TABLE III (Continued)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Operating Results of Prior Public Programs &#150; LEAF II</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The following table summarizes the operating results of Lease Equity Appreciation Fund II, L.P., which was sponsored by LEAF Financial Corporation, an affiliate of our general partner, and by a former subsidiary of LEAF Financial that was merged into LEAF Financial in 2004. The program&#146;s records are maintained in accordance with Generally Accepted Accounting Principles (&#147;GAAP&#148;) for financial statement purposes. No results are shown for 2004, because the program did not conduct any activities, other than holding an escrow account for subscription proceeds, until it achieved its minimum required offering proceeds in April, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>6
          Months<br>
          Ended<br>
          06/30/06</font></b></p>
      </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>2005</font></b></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
      </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Revenues</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net gain (loss) on sales or remarketing of equipment</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>36,797</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="8%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(4,704</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Gross revenue</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3,908,633</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,198,352</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Less:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Interest expense</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,671,655</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(583,833</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Depreciation expense</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(1,172,060</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(247,080</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Management fees - general partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(321,928</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(140,001</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Administrative expense reimbursement - general partner</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(290,793</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(339,926</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>General and administrative</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(231,206</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(190,706</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Provision for (reversal of) bad debts (2)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(282,903</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(130,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net (loss) income &#150; GAAP</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(25,155</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(437,898</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="2"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Net (loss) income &#150; GAAP &#150; allocable to limited partners</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(24,903</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(433,520</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Taxable income (loss) from operations (1)(3)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(9,960</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(438,164</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash provided by (used in) operating activities</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>2,344,007</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(480,581</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash used in investing activities</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>56,302,111</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(42,344,345</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash provided by financing activities</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>66,337,860</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>43,857,864</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash generated from operations, sales, and refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,379,756</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1,032,938</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Less:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash distributions to investors from operations, sales and refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>694,831</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>328,953</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash distributions to general partner from operations, sales and refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>7,018</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3,327</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash generated from (used by) operations, sales and refinancing after cash distributions</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>11,677,907</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>700,658</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Tax data and distributions per $1,000 limited partner investment</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Federal income tax results:</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Taxable income from operations (1)(3)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(0</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(86</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>)</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Cash distributions to investors</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>64</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Source (on GAAP basis)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Return of capital</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>64</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:25.9pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Source (on cash basis)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Operations</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Sales</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Refinancing</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:43.2pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Other</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>33</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>64</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Weighted average number of limited partnership ($100) units outstanding</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>210,872</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>51,053</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>


<br>
<hr noshade size="1" width="100" align="left">
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    <td width="5%" valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p>
    </td>
    <td valign=top >
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The difference
        between Net income &#150; GAAP and Taxable income from operations is because
        of different methods of calculating depreciation and amortization, the
        use of the reserve method for providing for possible doubtful accounts
        under GAAP, and different methods of recognizing revenue on direct finance
        leases under GAAP that generally are similar to full payout leases as
        defined under LEAF I&#146;s partnership agreement.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The program records a provision for bad debts to provide for estimated credit losses in its portfolio. This policy is based on an analysis of the aging of the program&#146;s portfolio, a review of the non-performing receivables and leases, prior collection experience and historical loss experience.</font></p>
    </td>
  </tr>
</table>
<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
  <tr>
    <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(3)</font></p>
    </td>
    <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Taxable income is not calculated on an interim basis, only at the end of a year</font></p>
    </td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Past performance is not necessarily indicative of future performance.</font></p>

<p align="center"><Font size="2" face="serif">B-4</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>







<p style=' margin-bottom:0pt; margin-top:8pt;text-align:right;'><b><font size=2><a name="p160b"></a>Appendix C</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>LEAF Equipment Leasing Income Fund III, L.P.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font SIZE=2>INSTRUCTIONS FOR COMPLETING THE SUBSCRIPTION AGREEMENT</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Consult with your registered representative or financial planner regarding suitability requirements and subscriber representations.</font></p>





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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>1.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>INVESTMENT</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Each unit costs $100.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The minimum initial investment is 50 units ($5,000), except  as provided under &#147;Distribution Reinvestment Elections,&#148; below.</font></p> </td> </tr></table>
</div>








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>2.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>REGISTRATION <br>
  INFORMATION</font></p> </td> </tr></table>
</div>

<div style="float: left; width:68%">







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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Complete all of the information requested in sections 2(a) and 2(c). If you are not a United States citizen, please specify the country of which you are a citizen.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Complete section 2(b) only if this you are investing in us as an IRA, Qualified Plan, Keogh plan or trust.</font></p> </td> </tr></table>






</div>
<div style="float: left; width:30%">


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>3.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>FORM OF OWNERSHIP</font></p> </td> </tr></table>








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Mark only one box.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consult your registered representative with any questions about designating the form of ownership.</font></p> </td> </tr></table>








</div>
<div style="float: left; width:30%">

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>4.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>DISTRIBUTION <br>
  REINVESTMENT <br>
  ELECTIONS</font></p> </td> </tr></table>
</div>
<div style="float: left; width:68%">








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>You may elect in Section 1 to reinvest your distributions from us in additional units during our offering period on the same terms as your initial purchase of our units, subject to availability, except that there is no minimum amount of additional units you must purchase, unless you are a resident of Ohio.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>If you previously invested in Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) and/or Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), then you may elect in Section 1 to invest your distributions from one or both of those funds in our units during our offering period on the same terms as our units are sold to other investors, subject to availability, except that there is no minimum amount of our units that you are required to purchase. In addition, you must complete, date, sign and mail the original Letter of Direction and Authorization to LEAF Financial Corporation set forth on page C-10 of this Subscription Agreement to LEAF Financial Corporation with a copy of the letter provided to our general partner with your original Subscription Agreement.</font></p> </td> </tr></table>








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>5.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>DIRECT DEPOSIT AND <br>
  ALTERNATIVE PAYEES <br>
  ELECTION</font></p> </td> </tr></table>







</div>
<div style="float: left; width:68%">

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>All subscribers except IRAs should complete this section to if you wish to have your distributions from us sent to an address different from that the address shown in section 2(a), and you should complete this section if you want direct deposit.</font></p> </td> </tr></table>








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>6.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>SIGNATURES AND <br>
  INITIALS</font></p> </td> </tr></table>







</div>
<div style="float: left; width:68%">

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>All investors must sign and initial the various sections to the extent applicable to them as indicated in the form. The signature of an authorized partner, manager or officer is required for a partnership, limited liability company or corporation investor.</font></p> </td> </tr></table>







</div>
<div style="float: left; width:30%">

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>7.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>SELLING DEALER <br>
  INFORMATION</font></p> </td> </tr></table>








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The registered representative must complete and sign this section of the Subscription Agreement, or the subscription cannot be accepted.</font></p> </td> </tr></table>








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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>8.</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font SIZE=2>SUBSCRIPTION <br>
  CHECKS, MAILING <br>
  INSTRUCTIONS AND <br>
  CONFIRMATIONS</font></p> </td> </tr></table>







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<div style="float: left; width:68%">

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Checks should be made payable to </font><b><font size=2>&#147;LEAF Equipment Leasing Income Fund III,  L.P. Subscription Account,&#148;</font></b><font size=2> unless the escrow has not yet been terminated (as disclosed in a prospectus supplement to this prospectus), in which event checks should be made payable to </font><b><font size=2>&#147;LEAF Equipment Leasing Income Fund III, L.P. Escrow Account.&#148;</font></b></p> </td> </tr></table>










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        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Wire transfer instructions are available on request.</font></p> </td> </tr></table>





<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><font size=2>Mailing:</font></p>






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        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>IRAs, Qualified Plans and Keogh plan investors should: mail all of their subscription documents with their check and transfer instructions to their designated custodian.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>All other investors should mail all their subscription documents with their check and transfer instructions to:</font></p> </td> </tr></table>





<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:15%;text-align:left;'><font size=2>Chadwick Securities, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15%;text-align:left;'><font size=2>1845 Walnut Street, 10<sup>th</sup> Floor</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15%;text-align:left;'><font size=2>Philadelphia, PA 19103</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15%;text-align:left;'><font size=2>Telephone: (866) 323-0241</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15%;text-align:left;'><font size=2>Fax: (215) 574-8176</font></p>
</div>
<br clear="all"><br>

<p align="center"><Font size="2" face="serif">C-1</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<!-- EEDocs PBEnd-->
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        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>We will send you a confirmation letter for your records after your subscription to purchase units in us has been approved by our general partner.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Mail the white original and the pink copy of your signed Subscription Agreement as set forth above. Your registered representative should keep the yellow copy for his/her records. We will return the pink copy to you for your records after your subscription has been either accepted or rejected.</font></p> </td> </tr></table></div>

<br clear="all"><br>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font SIZE=2>YOUR SUBSCRIPTION AGREEMENT WILL NOT BE PROCESSED BY US UNLESS IT IS FULLY COMPLETED AND ACCOMPANIED BY PAYMENT IN FULL, EXCEPT AS OTHERWISE PROVIDED IN THESE INSTRUCTIONS REGARDING UNITS PURCHASED WITH CASH DISTRIBUTIONS. ANY SUBSCRIPTION PAYMENT THAT IS DISHONORED WILL CAUSE THE SUBSCRIPTION AND ANY NOTICE OF ACCEPTANCE OF THE SUBSCRIPTION BY OUR GENERAL PARTNER TO BE VOID AS OF THE SUBSCRIPTION DATE AND SHALL OBLIGATE THE SUBSCRIBER TO PAY ALL COSTS AND CHARGES ASSOCIATED WITH THE DISHONORED PAYMENT.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If you have any questions about completing this Subscription Agreement, please call Chadwick Securities, Inc. Investor Services at (866) 323-0241.</font></p>


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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>IMPORTANT INFORMATION FOR POTENTIAL SUBSCRIBER(S)</font></B></p>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>No offer to sell our units to you may be made except by means of this prospectus.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>You should not rely on any oral statements made by any person, or on any written information other than this prospectus or supplements to this prospectus in deciding whether or not to purchase our units.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>An investment in our units involves certain risks including, without limitation, the matters set forth in this prospectus under the captions &#147;Risk Factors,&#148; &#147;Conflicts of Interest,&#148; &#147;Investment Objectives and Strategies,&#148; and &#147;Federal Income Tax Consequences.&#148;</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The representations you make in the &#147;Investor Suitability Requirements and Subscriber Representations&#148; section of this Subscription Agreement are not a waiver of any of your rights under the Delaware Revised Uniform Limited Partnership Act or applicable federal and state securities laws.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Our units are subject to substantial restrictions on transferability. </font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>There will be no public market for our units.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>It may not be possible for you to readily liquidate your units, if at all, even in the event of an emergency.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Any transfer of units is subject to our approval and must comply with the terms of Article XIII of the partnership agreement.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>As described in the &#147;Investor Suitability&#148; section of this prospectus, some states impose more stringent suitability standards that must be met by prospective purchasers of units than our general requirements.</font></p> </td> </tr></table>










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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The State of California has additional restrictions on the transfer of our units, as summarized in the following legend:</font></p> </td> </tr></table>





<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><font size=2>&#147;IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER&#146;S RULES.&#148;</font></p>






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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Under suitability guidelines of the Office of the Kansas Securities Commissioner, you are cautioned to carefully evaluate whether your investment in us and substantially similar investments should exceed 10% of your net worth.</font></p> </td> </tr></table>





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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font SIZE=2>SUBSCRIPTION AGREEMENT</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>A Delaware Limited Partnership</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;'><font SIZE=2>GENERAL PARTNER USE ONLY</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Date:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>No. of Units:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Blue Sky State:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Officer Approval:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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      <td colspan="6" valign="bottom" style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt; padding:0pt 0pt 0pt 0pt;'><p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size="1"></font></p></td>
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        <td ></td>

        <td ></td>

        <td ></td>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>1.&nbsp;&nbsp;&nbsp;</font> <b><font size=2>Initial Investment: </font></b><font size=2>(please complete the blanks and check the applicable box)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Initial Subscription Amount: $</font><b><font size=2>___________</font></b><font size=2> ($5,000 minimum)<br>No. of Initial Units: __________________ (50 units minimum)<br>No. of Additional Units: __________</font></p>


<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;            <font size=2>Check this box if you are using your cash distributions from us to purchase units in addition to your initial units, or if you are using your cash distributions from LEAF I and/or LEAF II to purchase units as set forth in section 4, below.</font></p> </td> </tr></table>
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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 6.0pt;'><font size=2>2.</font>               &nbsp;&nbsp;&nbsp;<b><font size=2>Registration Information: </font></b><font size=2>(please type or print clearly)</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>(a)</font>                      <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscriber Information</font><u></u></p> </td> </tr>
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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Name(s)</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Tax I.D. No. or Social Security No.</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Residential Street Address</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>City</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>State</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Zip Code</font></p> </td>

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<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Telephone No. (Day)</font></p> </td>

        <td colspan="8" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>(Evening)</font></p> </td>

        <td colspan="7" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:2.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="21" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(b)</font>                     &nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Trustee or Custodial Information (IRA&#146;s, Qualified Plans, other SEP, Keogh, Trustee, etc.) (if applicable)</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="7" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Trustee/Custodian&#146;s Name(s)</font></p> </td>

        <td colspan="5" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Tax I.D. No.</font></p> </td>

        <td colspan="6" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td ></td>

        <td ></td>

        <td width="19" ></td>

        <td width="23" ></td>

        <td width="22" ></td>

        <td width="87" ></td>

        <td width="28" ></td>

        <td width="20" ></td>

        <td width="1" ></td>

        <td width="45" ></td>

        <td width="22" ></td>

        <td width="23" ></td>

        <td width="1" ></td>

        <td width="15" ></td>

        <td width="46" ></td>

        <td width="21" ></td>

        <td width="25" ></td>

        <td width="15" ></td>

        <td width="37" ></td>

        <td width="64" ></td>

        <td width="1" ></td>

        <td width="53" ></td>

        <td width="200" ></td> </tr> </table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse; '>
  <tr>
    <td width="200" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="22" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="3" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Date
        Trust or Account Established</font></p>
    </td>
    <td width="187" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Grantor&#146;s
        Name(s)</font></p>
    </td>
    <td valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;' width="90">
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;' width="200">
      <p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;' width="22">
      <p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="140" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>(c)&nbsp;</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Citizenship
        (check one)</font></p>
    <td width="104" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><img src="emptybox.gif"><font size=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Citizen</font></p>
    </td>
    <td colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><img src="emptybox.gif"><font size=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Resident Alien</font></p>
    </td>
    <td width="242" colspan="-1" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><img src="emptybox.gif"><font size=2>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Resident Specify Country:</font></p>
    </td>
    <td valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>
        </font></p>
    </td>
    <td width="90" colspan="-1" valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>
      <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>

<div align=left>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse; '>

    <tr style='height:18.0pt;'>

        <td width="18%" rowspan=3 valign=top style='border-top: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

        <p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:4.0pt;margin-bottom: 6.0pt;'><font size=2>3.</font>
          &nbsp;&nbsp;&nbsp;<b><font size=2>Form of Ownership: </font></b><font size=2>(check
          only one)</font></p>
      </td>

        <td width="2%" rowspan=3 valign=top style='border-top: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:12.6pt;margin-right:-5.75pt;text-indent:-12.6pt;text-align:left;margin-top:4.0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">                                                                 <font size=2>Individual Ownership</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.4pt;text-indent:-10.8pt;text-align:left;margin-top:4.0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Spouses as Community Property</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:4.0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>C Corporation</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.4pt;text-indent:-10.8pt;text-align:left;margin-top:4.0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>S Corporation</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:4.0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Profit Sharing Plan</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:4.0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>IRA, SEP, Keogh</font></p> </td> </tr>

    <tr style='height:18.0pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:18.0pt;'>

<p style='margin-left:12.6pt;margin-right:-5.75pt;text-indent:-12.6pt;text-align:left;margin-top:0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">                                                                 <font size=2>Joint Tenants</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Tenants in Common</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Limited Liability Company</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.4pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Partnership</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Trust</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:18.0pt;'>

<p style='margin-left:10.8pt;margin-right:-5.75pt;text-indent:-10.8pt;text-align:left;margin-top:0pt;margin-bottom: 1.0pt;'><img src="emptybox.gif">          <font size=2>Custodial Account</font></p> </td> </tr>

    <tr style='height:18.0pt;'>

        <td colspan="6" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;height:18.0pt;'>

<p style='margin-left:90pt;text-indent:-90pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Note to Corporations:</font>                                 <font size=2>Please attach a copy of the corporate resolution to purchase units and articles of incorporation and by-laws, as amended</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Note to Partnerships:</font>                                    <font size=2>&nbsp;Please attach a copy of the current partnership agreement, as amended</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Note to Trusts:</font>                              <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please attach a copy of the instrument creating the trust, as amended</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Note to Estates:</font>                           &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Please attach a copy of the will and current letters testamentary</font></p>

<p style='margin-left:90pt;text-indent:-90pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Note to LLCs:</font>                                   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Please attach a copy of the limited liability company resolution to purchase units and articles of organization and operating agreement, as amended</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align=left>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse; '>
    <tr>

        <td width="18%" valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:4.0pt;margin-bottom: 6.0pt;'><font size=2>4</font><b><font size=2>.</font></b>               <b><font size=2>&nbsp;&nbsp;&nbsp;Distributions Reinvestment Elections </font></b></p>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:6.0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='border-top: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>Check if:</font></p> </td>

        <td colspan="13" valign=top style=' border-top:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><img src="emptybox.gif">            &nbsp;&nbsp;&nbsp;&nbsp;<font size=2>You want your distributions from us reinvested in additional units during the Offering Period, which will be on the same terms and subject to the same fees and commissions as your initial investment, except there is no minimum investment amount on your additional units and you represent that you are not a resident of Ohio.</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><img src="emptybox.gif">            &nbsp;&nbsp;&nbsp;&nbsp;<font size=2>You invested in Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;) and/or Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;), you want your distributions invested in our units on the same terms, and subject to the same fees and commissions, as our units are offered and sold to other investors, except that there is no minimum amount of our units that you can purchase, and you represent that you are not a resident of Ohio. In addition, you must complete, date, sign and mail the original Letter of Direction and Authorization to LEAF Financial Corporation (set forth on page C-10 of this Subscription Agreement) and send the original of that letter to our general partner with your original Subscription Agreement.</font></p> </td> </tr>
    <tr>

        <td ></td>

        <td ></td>

        <td width="0%" ></td>

        <td width="7%" ></td>

        <td width="2%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

        <td width="6%" ></td>

  <td width="6%" ></td> </tr> </table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse; '>
  <tr>
    <td width="18%" rowspan=5 valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 6.0pt;'><b><font size=2>5.</font></b> <b><font size=2>&nbsp;&nbsp;&nbsp;Direct Deposit and Alternative Payees Elections: </font></b><font size=2>(Complete if Payee is different from Section 2(a) or 2(b) above, or if distributions are to be reinvested)</font></p></td>
    <td width="2%" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="2" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Check if:</font></p></td>
    <td colspan="13" valign=top style=' padding:0pt 4.4pt 0pt 4.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><img src="emptybox.gif"> &nbsp;&nbsp;&nbsp;&nbsp;<font size=2>You want direct deposits of your distributions or to split your distributions between one or more Payees. If you elect this alternative you must complete the Special Payment Instruction Form on page C-5 hereof. Split distributions are available only for direct deposit by ACH (&#147;Automated Clearing House,&#148; a financial network run by the Federal Reserve to transfer funds electronically). Not available for IRAs or Keogh plans.</font></p>
        <p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><img src="emptybox.gif"> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You want your distributions sent to the Payee and Address listed below. Complete the following section:</font></p></td>
  </tr>
  <tr>
    <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="3" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Payee Name</font></p></td>
    <td colspan="4" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td width="9%" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>ABA No.</font></p></td>
    <td colspan="3" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Account Type</font></p></td>
    <td colspan="2" valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr>
    <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="3" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Branch No.</font></p></td>
    <td colspan="4" valign=top style=' border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Acct. No.</font></p></td>
    <td colspan="3" valign=top style=' border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Account Holder</font></p></td>
    <td colspan="2" valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr>
    <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="3" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Street Address</font></p></td>
    <td valign=top style='border-bottom:solid black .5pt;padding: 0pt 5.4pt 0pt 5.4pt;'>&nbsp;</td>
    <td colspan="11" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr>
    <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td width="4%" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>City</font></p></td>
    <td colspan="4" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td width="4%" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>State</font></p></td>
    <td colspan="3" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td width="3%" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Zip</font></p></td>
    <td colspan="2" valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
    <td colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Bank Routing No.</font></p></td>
    <td width="14%" valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'><p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr>
    <td style=' border-bottom:solid black .5pt;'>&nbsp;</td>
    <td style=' border-bottom:solid black .5pt;'></td>
    <td style=' border-bottom:solid black .5pt;'></td>
    <td width="5%" style=' border-bottom:solid black .5pt;'></td>
    <td width="7%" style=' border-bottom:solid black .5pt;'></td>
    <td width="8%" style=' border-bottom:solid black .5pt;'></td>
    <td width="2%" style=' border-bottom:solid black .5pt;'></td>
    <td style=' border-bottom:solid black .5pt;'></td>
    <td width="2%" style=' border-bottom:solid black .5pt;'></td>
    <td style=' border-bottom:solid black .5pt;'></td>
    <td width="2%" style=' border-bottom:solid black .5pt;'></td>
    <td style=' border-bottom:solid black .5pt;'></td>
    <td width="3%" style=' border-bottom:solid black .5pt;'></td>
    <td width="2%" style=' border-bottom:solid black .5pt;'></td>
    <td width="13%" style=' border-bottom:solid black .5pt;'></td>
    <td width="9%" style=' border-bottom:solid black .5pt;'></td>
    <td style=' border-bottom:solid black .5pt;'></td>
  </tr>
</table>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>C-4</font></p>

<hr noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>




<div align=left>


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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:4.0pt;margin-bottom: 6.0pt;'><font size=2>6.</font>&nbsp;&nbsp;&nbsp;               <b><font size=2>Initials and Signatures: </font></b></p> </td>

        <td width="2%" valign=bottom style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 3.0pt;'><font size=2>The undersigned confirms that he/she/it:</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Received the Prospectus and has read page C-2 of this Subscription Agreement. (Initial ________) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Makes the representations contained on page C-4 of this Subscription Agreement. (Initial ________) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acknowledges that an investment in us is not liquid. (Initial ________) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Declares that, to the best of his/her/its knowledge, all information in Sections 1-4 on this page C-3 is accurate and may be relied on by the General Partner. (Initial ________) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appoints the General Partner as his/her/its attorney-in-fact as described in Paragraph 2 on page C-4 hereof.</font>                                   <font size=2>(Initial _______) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Kansas resident, the investor has considered the 10% of net worth cautionary statement on this and similar investments as set forth on page C-2 hereof. (Initial ________) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Meets the minimum income and net worth standards set forth in the prospectus. (Initial ________) (Initial _______)</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font>                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>Is purchasing the units for his/her/its own account. (Initial ________) (Initial _______)</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Your Subscription cannot be</font><br> <font size=2>accepted without your initials</font><br> <font size=2>and signature(s)</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Sign Here X</font></p> </td>

        <td valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Sign Here X</font></p> </td>

        <td valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Investor&#146;s Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Authorized Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p> </td> </tr>
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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>(Custodian/Trustee/Officer/Partner)</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Sign Here X</font></p> </td>

        <td valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Sign Here X</font></p> </td>

        <td valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Co-Investor&#146;s Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Authorized Signature&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>(Custodian/Trustee/Officer/Partner)</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse; '>
    <tr>

        <td width="18%" valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>7.</font>                          <b><font size=2>&nbsp;&nbsp;&nbsp;Selling Dealer Information:</font></b></p>

<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'>                                   <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Please type or print clearly) </font></p> </td>

        <td width="2%" valign=bottom style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:1.45pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 3.0pt;'><font size=2>The registered representative who solicited your subscription must sign below and, by doing so, represents that he/she:</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>(i)</font>                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2>is duly licensed by, and in good standing with, the NASD and may lawfully offer our units in this offering the State(s) listed in Section 2(a);</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>(ii)</font>                     &nbsp;&nbsp;&nbsp;&nbsp;<font size=2>has reasonable grounds to believe, based on information obtained from the Subscriber concerning his/her/its investment objectives, other investments, financial situation and needs, and any other information about the Subscriber known by the registered representative, that the investment described in Section 1 or Section 4 of this Subscription Agreement is suitable in light of the Subscriber&#146;s income, net worth and other characteristics; and</font></p>

<p style='margin-left:25.9pt;text-indent:-25.9pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>(iii)</font>                  <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;the registered representative has informed the Subscriber as to the risks of ownership and limited liquidity of our units, and delivered a current copy of the Prospectus to the Subscriber in connection with the offering of our units.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="172" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="19" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="5" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Broker/Dealer Firm Name</font></p> </td>

        <td colspan="7" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Supervisor</font></p> </td>

        <td colspan="4" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Telephone No.</font></p> </td>

        <td colspan="3" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="6" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Registered Representative Name</font></p> </td>

        <td colspan="6" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Rep. No.</font></p> </td>

        <td colspan="5" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Telephone No.</font></p> </td>

        <td colspan="3" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="6" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Representative&#146;s Street Address</font></p> </td>

        <td colspan="6" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="36" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>City</font></p> </td>

        <td colspan="6" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="41" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>State</font></p> </td>

        <td colspan="2" valign=top style='border-bottom: solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Zip Code</font></p> </td>

        <td width="192" valign=top style='border-bottom:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>Signature X</font></p> </td>

        <td colspan="8" valign=top style=' border-bottom:solid black .5pt;padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:2.0pt;margin-bottom: 0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="12" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(Registered Representative)</font><br> <font size=2>The subscription cannot be completed without a signature.</font></p> </td> </tr>
    <tr>

        <td ></td>

        <td ></td>

        <td ></td>

        <td width="24" ></td>

        <td width="17" ></td>

        <td width="1" ></td>

        <td width="98" ></td>

        <td width="53" ></td>

        <td width="95" ></td>

        <td ></td>

        <td width="63" ></td>

        <td width="78" ></td>

        <td ></td>

  <td ></td> </tr> </table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<div align=left>


<table width="100%" border="0" cellpadding=0 cellspacing=0 style=' border-collapse:collapse; '>
    <tr>

        <td width="18%" valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>8.</font>                          &nbsp;&nbsp;&nbsp;<b><font size=2>Investment Check and Subscription Agreement:</font></b></p> </td>

        <td width="2%" valign=bottom style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='border-top:solid black .5pt; padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom: 3.0pt;'><font size=2>Mail the completed Subscription Agreement [pages C-4 and C-5], your Taxpayer Identification Certification [page C-8] and, if applicable, the Special Payment Instruction Form for Distributions [page C-9] and/or the Letter of Direction and Authorization to LEAF Financial Corporation [page C-10], with a check for your initial subscription amount as set forth in Section 1 of your Subscription Agreement [page C-4] made payable as instructed in Section 8 on page [C-1], to:<br>Chadwick Securities, Inc., 1845 Walnut Street, 10<sup>th</sup> Floor, Philadelphia, PA 19103<br>Telephone: (866) 323-0241&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fax: (215) 576-8176</font></p>




<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:8.0pt;margin-bottom: 3.0pt;'><font size=2>Wiring instructions available on request</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:3.0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:.0001pt;'><b><font size=2>Acceptance of Subscription Agreement by</font></b><br> <b><font size=2>General Partner of LEAF Equipment Leasing</font></b><br> <b><font size=2>Income Fund III, L.P. </font></b></p> </td>

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<p style='margin:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:.0001pt;'><font size=2>LEAF Asset Management, LLC, General Partner </font></p>

<p style='margin:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:.0001pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:1.0pt;margin-bottom: 3.0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;'><font size=2>By:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:18.0pt;margin-right:0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:3.0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Authorized Signature</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;                          <font size=2>Date</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>C-5</font></p>

<hr noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p><PAGE>











<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>INVESTOR SUITABILITY REQUIREMENTS AND SUBSCRIBER REPRESENTATIONS</font></B></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>1.</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Subscription for Units.</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>I, by signing my name in Section 5 on page C-3, hereby:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(a)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>subscribe for the number of units, and dollar subscription amount set forth in Section 1 on page C-3;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(b)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>agree to become a limited partner of LEAF Equipment Leasing Income Fund III, L.P. on the acceptance of my subscription by the general partner; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(c)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>adopt and agree to be bound by each and every provision of LEAF Equipment Leasing Income Fund III, L.P.&#146;s partnership agreement and my Subscription Agreement.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>I am is tendering good funds with my Subscription Agreement in full payment for the units I have subscribed for (if I am required to do so under Sections 1 and 4 on page C-2) at the per unit subscription price applicable to me.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>2.</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Appointment of the General Partner as Subscriber&#146;s Attorney-in-Fact.</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>By signing my name in Section 6 on page C-3, (and effective on my admission as a limited partner of LEAF Equipment Leasing Income Fund III, L.P.), I hereby make, constitute and appoint the general partner, each authorized officer of the general partner and each person who may thereafter become a substitute general partner of LEAF Equipment Leasing Income Fund III, L.P. with full power of substitution, as the true and lawful attorney-in-fact of, in my name, place and stead to the full extent and for the purposes and duration, set forth in Article XVIII of the partnership agreement (all of the terms of which are hereby incorporated in this Subscription Agreement by this reference).</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Such purposes include, without limitation, the power to make, execute, sign, acknowledge, swear to, verify, deliver, record, file and publish any of the following:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(a)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>the partnership agreement, certificates of limited partnership and any amendment thereof, including amendments reflecting the admission or substitution of any general partner or limited partner (or their capital contributions) and any other document, certificate or instrument required to reflect the admission of any partner (including any substitute general partner and any substitute limited partner);</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(b)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other document, certificate or instrument required to reflect any action of the partners provided for in the partnership agreement (whether or not I voted in favor of or otherwise consented to the action); </font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(c)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any other document, certificate or instrument that may be required by any regulatory body or other agency or the applicable laws of the United States, any state or any other jurisdiction in which LEAF Equipment Leasing Income Fund III, L.P. is doing or intends to do business or that the general partner deems advisable; </font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(d)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any certificate of dissolution or cancellation of the certificate of limited partnership that may be reasonably necessary to effect the termination of LEAF Equipment Leasing Income Fund III, L.P.; and </font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(e)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>any instrument or papers required to continue or terminate the business of LEAF Equipment Leasing Income Fund III, L.P. under Section 12.5 or Article XIV of the partnership agreement; provided that no such attorney-in-fact shall take any action as attorney-in-fact for me if the action could in any way increase my liability beyond the liability expressly set forth in the partnership agreement or alter my rights under Article XI of the partnership agreement, unless (in either case) I have given a power of attorney to the attorney-in-fact expressly for that purpose.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The foregoing appointment shall not in any way limit the authority of the general partner as my attorney-in-fact under Article XVIII of the partnership agreement. The power of attorney hereby granted is coupled with an interest, is irrevocable and shall survive my death, incapacity, insolvency, dissolution or termination or my delivery of any assignment of all or any portion of my units.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>3.</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>General Subscriber Representations.</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>As a condition to my being admitted as a limited partner of LEAF Equipment Leasing Income Fund III, L.P., I represent and warrant to the general partner and LEAF Equipment Leasing Income Fund III, L.P. that I:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(a)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>either:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>have annual gross income of $45,000, plus a net worth of at least $45,000 (exclusive of my investment in LEAF Equipment Leasing Income Fund III, L.P., home furnishings, automobiles and equity in my home), or a net worth of at least $150,000 (determined in the same manner); or</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">C-6</font></p>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>meet any higher investor gross income and/or net worth standards applicable to residents of my State, as set forth in the &#147;Investor Suitability&#148; and &#147;The Offering&#148; sections of the prospectus;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(b)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>if I am investing as an IRA, Qualified Plan, HR-10 (Keogh) plan or other benefit plan or trust, I have accurately been identified as such in Sections 2(b) and 3 on page C-3;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(c)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>have been accurately identified in Section 2(c) on Page C-3 as either a U.S. Citizen or a non-U.S. Citizen; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(d)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>am not less than 21 years of age.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>If I am investing in a fiduciary or representative capacity, the investment is being made for one or more persons, entities or trusts, all of which meet the applicable suitability requirements described above.</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>4.</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Additional Fiduciary and Entity Representations.</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>If the person signing this Subscription Agreement is doing so on behalf of another person or entity who is the subscriber, including, without limitation, a corporation, a partnership, an IRA, a Qualified Plan, a Keogh plan, or a trust (other than a Qualified Plan or Keogh plan), the signatory, by signing his/her/its name in Section 5 of Page C-3, represents and warrants to the general partner and LEAF Equipment Leasing Income Fund III, L.P. that:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(a)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>he or she is duly authorized to:</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>execute and deliver this Subscription Agreement;</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>make the representations contained in this Subscription Agreement on behalf of the Subscriber; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>bind the Subscriber by signing this Subscription Agreement; and</font></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>(b)</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>this investment is an authorized investment for the Subscriber under applicable documents and/or agreements (articles of incorporation or corporate bylaws or action, partnership agreement, trust indenture, etc.) and applicable law.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK.]</font></b></p>


<p align="center"><Font size="2" face="serif">C-7</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><b><font size=2>Taxpayer Identification Number Certification &#150; You should check the first box below, unless you are a foreign investor or you are investing as a U.S. grantor trust.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><b><font size=2>Note: If there is a change in circumstances that makes any of the information provided by you in the certification below incorrect, then you are under a continuing obligation so long as you own units in LEAF Equipment Leasing Income Fund III, L.P. to notify the general partner and furnish the general partner a new certificate within thirty (30) days of the change.</font></b></p>




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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font face=Wingdings>o</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Under penalties of perjury, you certify that:</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(1)</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>the number provided in this Subscription Agreement is your correct &#147;TIN&#148; (</font></b><u><b><font size=2>i.e.</font></b></u><b><font size=2>, social security number or taxpayer identification number);</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(2)</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>you are not subject to backup withholding because (a) you are exempt from backup withholding under &sect;3406(g)(1) of the Internal Revenue Code and the related regulations, or (b) you have not been notified by the Internal Revenue Service (IRS) that you are subject to backup withholding as a result of failure to report all interest or dividends, or (c) the IRS has notified you that you are no longer subject to backup withholding; and</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(3)</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>you are a U.S. person (which includes U.S. citizens, resident aliens, entities or associations formed in the U.S. or under U.S. law, and U.S. estates and trusts.)</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><b><font size=2>(Note: You must cross out item (2) above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return.)</font></b></p>


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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font face=Wingdings>o</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Foreign Partner. You are at least 21 years of age and you have provided LEAF Equipment Leasing Income Fund III, L.P. with the appropriate Form W-8 certification or, if a joint account, each joint account owner has provided LEAF Equipment Leasing Income Fund III, L.P. the appropriate Form W-8 certification, and if any one of the joint account owners has not established foreign status, that joint account owner has provided LEAF Equipment Leasing Income Fund III, L.P. with a certified TIN.</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font face=Wingdings>o</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>U.S. Grantor Trusts. Under penalties of perjury, I certify that:</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(1)</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>the trust designated as the Subscriber on the Subscription Agreement is a United States grantor trust that the person(s) designated as the grantor(s) of the trust on the Subscription Agreement can amend or revoke while living;</font></b></p> </td> </tr></table>
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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(2)</font></b></p> </td>

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<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>under subpart E of subchapter J of the Internal Revenue Code (check only </font></b><u><b><font size=2>one</font></b></u><b><font size=2> of the boxes below):</font></b></p> </td> </tr></table>
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  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
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      <td width="11%" valign=top >&nbsp;</td>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font face=Wingdings>o</font></b></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(a)</font></b></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>100%
          of the trust is treated as owned by the grantor;</font></b></p>
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      <td valign=top width="4%" >&nbsp;</td>
      <td valign=top width="5%" >
        <p style=' margin-left:0pt;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><b><font face=Wingdings>o</font></b></p>
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        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(b)</font></b></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>the
          trust is treated as owned in equal shares by the grantor and the grantor&#146;s
          spouse; or</font></b></p>
      </td>
    </tr>
    <tr>
      <td valign=top width="4%" >&nbsp;</td>
      <td valign=top width="5%" >
        <p style=' margin-left:0pt;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><b><font face=Wingdings>o</font></b></p>
      </td>
      <td valign=top width="5%" >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(c)</font></b></p>
      </td>
      <td valign=top >
        <p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>____%
          of the trust is treated as owned by ________________________, and the
          remainder is treated as owned _____% by the grantor and _____% by the
          grantor&#146;s spouse); and</font></b></p>
      </td>
    </tr>
  </table>





<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="98%" style=' border-collapse:collapse;'>
    <tr>

        <td width="10%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>(3)</font></b></p> </td>

        <td valign=top style='padding:6.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>each grantor or other owner of any portion of the trust has provided LEAF Equipment Leasing Income Fund III, L.P. with the appropriate Form W-8 or Form W-9 certification.</font></b></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:5%;text-align:left;'><b><font size=2>Note: If you check the box in (2)(c), you must insert the information called for by the blanks.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><b><font size=2>The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font SIZE=2>ON
  YOUR EXECUTION OF THIS SUBSCRIPTION AGREEMENT AND ITS ACCEPTANCE BY THE GENERAL
  PARTNER, THIS SUBSCRIPTION AGREEMENT (CONSISTING OF PAGES C-3 AND C-4) WILL
  BECOME A PART OF THE PARTNERSHIP AGREEMENT.</font></p>


<p align="center"><Font size="2" face="serif">C-8</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>SPECIAL PAYMENT INSTRUCTION FORM FOR DISTRIBUTIONS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=2>LEAF Equipment Leasing Income Fund III, L.P.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=2>1845 Walnut Street, 10<sup>th</sup> Floor, Philadelphia, PA 19103</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Please return this form with your Subscription Agreement if you want your cash distributions to be directly deposited into an account and/or sent to more than one account, location or payee. IRAs may not use this form.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="99%" style=' margin-left:.6pt;border-collapse:collapse;'>
    <tr>

        <td colspan="11" valign=bottom style='border-top:solid black .5pt; border-left:solid black .5pt;border-bottom:none;border-right:none; '>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>First Payee</font></b></p> </td>

        <td colspan="8" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:none;border-right:solid black .5pt; '>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Name of</font></p> </td> </tr>
    <tr>


      <td width="10%" colspan="3" valign=bottom style=' border-left:solid black .5pt;' nowrap>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank
          Name:</font></p>
      </td>

        <td colspan="8" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td colspan="3" valign=bottom >
        <p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account
          &nbsp;Holder</font></p>
      </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td width="10%" colspan="4" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Address:</font></p> </td>

        <td colspan="7" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10%" valign=bottom >
        <p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account&nbsp;No.</font></p>
      </td>

        <td colspan="6" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td width="48" valign=bottom style=' border-left:solid black .5pt;border-bottom:none;border-right:none; '>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>City </font></p> </td>

        <td colspan="4" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="48" valign=bottom style='border-top:solid black .5pt; '>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>State</font></p> </td>


      <td width="97" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>
        <p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" colspan="3" valign=bottom style=' border-top:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Zip</font></p> </td>


      <td width="87" valign=bottom style='border-top:solid black .5pt; border-left:none;border-bottom:solid black .5pt;border-right:none; '>
        <p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Type</font></p> </td>

        <td colspan="5" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="2" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Branch No.</font></p> </td>

        <td colspan="9" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td width="15%" colspan="5" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Bank Routing Number</font></p> </td>

        <td width="35%" colspan="2" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>

    <tr style='height:3.95pt;'>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>% to be Paid* </font></p> </td>

        <td colspan="2" valign=bottom style='border:solid black .5pt; border-left:none;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style=' border-right:solid black .5pt; '>

<p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Second Payee</font></b></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Name of</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Name:</font></p> </td>

        <td colspan="8" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Holder</font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td colspan="4" valign=bottom style=' border-left:solid black .5pt;'>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank&nbsp;Address:</font></p>
      </td>

        <td colspan="7" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="146" valign=bottom >
        <p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account No.</font></p> </td>

        <td colspan="6" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td width="48" valign=bottom style='border-left:solid black .5pt; '>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>City </font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="48" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>State</font></p> </td>


      <td width="97" valign=bottom style='border-bottom: solid black .5pt;'>
        <p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" colspan="2" valign=bottom >

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Zip</font></p> </td>

        <td colspan="2" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Type</font></p> </td>

        <td colspan="5" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td colspan="2" valign=bottom style=' border-left:solid black .5pt;'>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Branch&nbsp;No.</font></p>
      </td>

        <td colspan="9" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="5" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Bank Routing Number</font></p> </td>

        <td colspan="2" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>

    <tr style='height:3.95pt;'>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>% to be Paid* </font></p> </td>

        <td colspan="2" valign=bottom style='border:solid black .5pt; border-left:none;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style=' border-right:solid black .5pt; '>

<p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Third Payee</font></b></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Name of</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Name:</font></p> </td>

        <td colspan="8" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Holder</font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="4" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Address:</font></p> </td>

        <td colspan="7" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="146" valign=bottom >
        <p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account No.</font></p> </td>

        <td colspan="6" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td width="48" valign=bottom style='border-left:solid black .5pt; '>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>City </font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="48" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>State</font></p> </td>


      <td width="97" valign=bottom style='border-bottom: solid black .5pt;'>
        <p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="5%" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Zip</font></p> </td>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Type</font></p> </td>

        <td colspan="5" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="2" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Branch No.</font></p> </td>

        <td colspan="9" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="5" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Bank Routing Number</font></p> </td>

        <td colspan="2" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>

    <tr style='height:3.95pt;'>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>% to be Paid* </font></p> </td>

        <td colspan="2" valign=bottom style='border:solid black .5pt; border-left:none;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style=' border-right:solid black .5pt; '>

<p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Fourth Payee</font></b></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Name of</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Name:</font></p> </td>

        <td colspan="8" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Holder</font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="4" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Address:</font></p> </td>

        <td colspan="7" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="146" valign=bottom >
        <p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account No.</font></p> </td>

        <td colspan="6" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td width="48" valign=bottom style='border-left:solid black .5pt; '>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>City </font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="48" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>State</font></p> </td>


      <td width="97" valign=bottom style='border-bottom: solid black .5pt;'>
        <p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="39" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Zip</font></p> </td>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Type</font></p> </td>

        <td colspan="5" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="2" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Branch No.</font></p> </td>

        <td colspan="9" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="5" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Bank Routing Number</font></p> </td>

        <td colspan="2" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>

    <tr style='height:3.95pt;'>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>% to be Paid* </font></p> </td>

        <td colspan="2" valign=bottom style='border:solid black .5pt; border-left:none;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style=' border-right:solid black .5pt; '>

<p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><b><font size=2>Fifth Payee</font></b></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Name of</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Name:</font></p> </td>

        <td colspan="8" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Holder</font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="4" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Bank Address:</font></p> </td>

        <td colspan="7" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="146" valign=bottom >
        <p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account No.</font></p> </td>

        <td colspan="6" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td width="48" valign=bottom style='border-left:solid black .5pt; '>
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>City </font></p> </td>

        <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="48" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>State</font></p> </td>


      <td width="97" valign=bottom style='border-bottom: solid black .5pt;'>
        <p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="39" valign=bottom >
        <p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Zip</font></p> </td>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Account Type</font></p> </td>

        <td colspan="5" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="2" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:12.25pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=2>Branch No.</font></p> </td>

        <td colspan="9" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:12.25pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="5" valign=bottom >

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>Bank Routing Number</font></p> </td>

        <td colspan="2" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td width="10" valign=bottom style='border-right:solid black .5pt; '>
        <p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>

    <tr style='height:3.95pt;'>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style=' border-right:solid black .5pt;height:3.95pt;'>

<p style=' margin-left:.1in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="11" valign=bottom style=' border-left:solid black .5pt;'>

<p style=' margin-left:8.65pt;margin-right:0in;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom: 0in;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="4" valign=bottom style=' border-right:solid black .5pt;'>

<p style=' margin-left:.1in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=2>% to be Paid* </font></p> </td>

        <td colspan="2" valign=bottom style='border:solid black .5pt; border-left:none;'>

<p style=' margin-left:.05in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style=' border-right:solid black .5pt; '>

<p style=' margin-left:.05in;margin-right:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0in;'><font size=1>&nbsp;</font></p> </td> </tr>

    <tr style='height:7.5pt;'>

        <td colspan="11" valign=bottom style='border-top:none; border-left:solid black .5pt;border-bottom:solid black .5pt; border-right:none;height:7.5pt;'>

<p style=' margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="8" valign=bottom style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt; height:7.5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>


      <td width="48" ></td>


      <td width="51" ></td>


      <td width="10" ></td>


      <td width="11" ></td>


      <td width="22" ></td>


      <td width="48" ></td>


      <td width="97" ></td>


      <td width="39" ></td>


      <td width="29" ></td>


      <td width="13" ></td>


      <td width="87" ></td>


      <td width="146" ></td>


      <td width="49" ></td>


      <td width="42" ></td>


      <td width="9" ></td>


      <td width="42" ></td>


      <td width="92" ></td>


      <td width="132" ></td>


      <td width="10" ></td>
    </tr> </table>
</div>




<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="98%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:3.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>*</font></p> </td>

        <td valign=top style='padding:3.0pt 0in 0in 0in;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>The total of all the &#147;% to be Paid&#148; boxes must equal </font><b><font size=2>100%</font></b><font size=2>.</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="98%" style=' border-collapse:collapse;'>
    <tr>

        <td colspan="3" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>Sign Here X</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>Sign Here X</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Investor&#146;s Signature</font></p> </td>

        <td width="2%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Authorized Signature (Custodian/Trustee/Officer/Partner)</font></p> </td> </tr>
    <tr>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td>

        <td width="35%" valign=top style='border-bottom:solid black .5pt; '>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td>

        <td width="40%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>Sign Here X</font></p> </td>

        <td width="2%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=bottom >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>&nbsp;</font></p> </td>

        <td colspan="3" valign=bottom style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><br> <font size=2>Sign Here X</font></p> </td> </tr>
    <tr>

        <td colspan="3" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Co-Investor&#146;s Signature </font></p> </td>

        <td width="2%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="3" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Authorized Signature (Custodian/Trustee/Officer/Partner)</font></p> </td> </tr>
    <tr>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td>

        <td width="30%" valign=top style='border-bottom:solid black .5pt; '>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Print Name</font></p> </td>

        <td width="39%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td width="6%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Date</font></p> </td>

        <td colspan="2" valign=top style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top >

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=2>Date</font></p> </td>

        <td colspan="2" valign=top style=' border-bottom:solid black .5pt;'>

<p style=' margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td width="57" ></td>

        <td width="44" ></td>

        <td width="264" ></td>

        <td width="23" ></td>

        <td width="31" ></td>

        <td width="51" ></td>

        <td width="51" ></td>

        <td width="339" ></td> </tr> </table>
</div>



<p style=' margin-bottom:0pt; margin-top:3pt; margin-left:5%; text-indent:-5%;text-align:left;'><font size=2>&nbsp;</font></p>


<p align="center"><font face="serif" size="2">C-9</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>











<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Letter of Direction and Authorization to LEAF Financial Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>By this letter you are directed and authorized to use all of the distributions for my account(s) from the fund(s) checked below to purchase units in LEAF Equipment Leasing Income Fund III, L.P. (&#147;LEAF III&#148;), beginning with the first distribution from the fund(s) checked below after my Subscription Agreement to purchase units in LEAF III has been accepted, and including all subsequent distributions for my account(s) from the fund(s) checked below during the offering period of LEAF III, to the extent LEAF III has units available to sell.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>I understand that if my Subscription Agreement to purchase units in LEAF III is accepted by LEAF Asset Management, LLC, acting as general partner on behalf of LEAF III, then on my payment of the subscription price for units in LEAF III pursuant to this letter and my Subscription Agreement, I will be promptly admitted to LEAF III as a limited partner as provided in LEAF III&#146;s partnership agreement with respect to those units in LEAF III.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>I represent, warrant and confirm that I understand that: </font></p>



<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>I am subscribing for an indeterminate amount of units in LEAF III based primarily on the amount of my cash distributions from LEAF I or LEAF II, or both, as indicated by the fund(s) I have described below; </font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>units in LEAF III purchased by me pursuant to this letter will be sold to me on the same terms as LEAF III&#146;s units are being offered and sold to other investors, except that there is no minimum amount of units that I must purchase, including the following terms:</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="10%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>my subscription price is $100 per unit, unless otherwise set forth on my Subscription Agreement to LEAF III; and</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="10%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:4.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=3><b>&#149;</b></font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>except as otherwise provided in the &#147;Plan of Distribution&#148; section of LEAF III&#146;s prospectus, which I have received a copy of and read, my purchase of units in LEAF III is subject to a 3% dealer-manager fee, a 7% sales commission, and a .5% reimbursement for bona fide due diligence expenses of the selling dealer selling the units to me.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>My cash distributions from the fund(s) checked below are to be used to purchase units in LEAF III as described in this letter:</font></p>



<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>


      <td width="5%" valign=top style='padding:8.0pt 0pt 0pt 0pt;' height="22">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;' width="5%"><font size=1>&nbsp;</font></p>
      </td>


      <td width="5%" valign=top style='padding:8.0pt 0pt 0pt 0pt;' height="22">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;' width="5%"><font size=2><img src="emptybox.gif" width="15" height="15">
          </font></p>
      </td>


      <td height="22" valign=top style='padding:8.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Lease Equity Appreciation Fund I, L.P. (&#147;LEAF I&#148;)</font></p> </td> </tr></table>
</div>





<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>


      <td width="5%" valign=top style='padding:8.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;' width="5%"><font size=1>&nbsp;</font></p>
      </td>


      <td width="5%" valign=top style='padding:8.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;' width="5%"><font size=2><img src="emptybox.gif" width="15" height="15"></font></p>
      </td>
      <td valign=top style='padding:8.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Lease Equity Appreciation Fund II, L.P. (&#147;LEAF II&#148;)</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>I understand that I can at any time stop you from using my distributions from either LEAF I, LEAF II or both, as indicated by the fund(s) I have checked above, to purchase units in LEAF III for my account only by giving written notice to you and only with respect to distributions for my account(s) that have not been made before your receipt of my written notice revoking, in whole or in part, the authorization and directions I have given you in this letter to use my distributions from LEAF I, LEAF II or both, as indicated above, to purchase units in LEAF III for my account.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>
  <table border="0" cellspacing=0 cellpadding=0 style=' border-collapse:collapse;' width="100%">
    <tr>
      <td width="9%" valign=bottom style='padding:0pt 0pt 0pt 0pt;' nowrap>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>Name
          of Investor:</font></p>
      </td>
      <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="4" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>(please
          print)</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>(For
          IRA accounts, the Custodian of the IRA must sign this letter.)</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>(investor&#146;s
          signature)</font></p>
      </td>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>Date:</font></p>
      </td>
      <td valign=bottom style='border-bottom: solid black .5pt;padding:0pt 0pt 0pt 0pt;' width="33%">
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Investor&#146;s
          Social Security Number: ___&nbsp;___&nbsp;___&nbsp;-&nbsp;___&nbsp;___&nbsp;-&nbsp;___&nbsp;___&nbsp;___&nbsp;___</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;' nowrap>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>Name
          of Co-Investor:</font></p>
      </td>
      <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>(please
          print)</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="4" valign=bottom style=' border-bottom:solid black .5pt;padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="22%">
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>(co-investor&#146;s
          signature)</font></p>
      </td>
      <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:1.0pt;margin-bottom: 0pt;'><font size=2>Date</font></p>
      </td>
      <td colspan="2" valign=bottom style=' border-bottom:solid black .5pt;padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="9" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
      </td>
    </tr>
    <tr>
      <td colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Co-Investor&#146;s
          Social Security Number:</font></p>
      </td>
      <td colspan="6" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>___&nbsp;___&nbsp;___&nbsp;-&nbsp;___&nbsp;___&nbsp;-&nbsp;___&nbsp;___&nbsp;___&nbsp;___</font></p>
      </td>
    </tr>
    <tr>
      <td width="9%" ></td>
      <td width="9%" ></td>
      <td width="5%" ></td>
      <td width="12%" ></td>
      <td width="22%" ></td>
      <td width="4%" ></td>
      <td width="3%" ></td>
      <td width="3%" ></td>
      <td width="33%" ></td>
    </tr>
  </table>
</div>



<p align="center"><Font size="2" face="serif"><font SIZE=2>C-10</font></font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>No person is authorized to give any information or make any representation that is not contained in this prospectus. You must not rely on any unauthorized representations or information. This prospectus is an offer to sell only the units of limited partnership interest offered by this prospectus, and only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>Units of Limited Partnership Interest</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>$100.00 per unit</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>______________</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font SIZE=2>PROSPECTUS</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>______________</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=2>_____________________, 2006</font></p>





<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>








<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font SIZE=2>PART II</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font SIZE=2>INFORMATION NOT REQUIRED IN PROSPECTUS</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 13. Other Expenses of Issuance and Distribution </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Set forth below are the expenses (other than underwriting discounts, commissions and expense allowances) expected to be paid by the registrant in connection with the issuance and distribution of the securities registered hereby. With the exception of the Securities and Exchange Commission&#146;s registration fee and the NASD&#146;s filing fee, the amounts set forth below are estimated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="80%" style=' border-collapse:collapse;' align="center">
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Securities and Exchange Commission registration fee</font></p> </td>

        <td width="2%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="1%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td width="9%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,840</font></p> </td>

        <td width="2%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>State Blue Sky registration fees (excluding legal fees)</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>75,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>*</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>NASD filing fee</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12,500</font><i></i></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Printing and engraving expenses</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>148,200</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>*</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Legal fees (including Blue Sky) and expenses</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>370,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>*</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Accounting fees and expenses</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>75,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>*</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Miscellaneous</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>2,906,460</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>*</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:17.3pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Total</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3,600,000</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>*</font></p> </td> </tr></table>
</div>



<hr noshade size="1" width="100" align="left">

<table width="100%" cellspacing=0 cellpadding=0>
    <tr>
        <td width="4.23%" nowrap valign="top">
            <p style=' margin-bottom:0pt; margin-top:3pt;'><font size=2>*</font></td>
        <td valign="Bottom">
            <p style=' margin-bottom:0pt; margin-top:3pt;'><font size=2>Estimated</font></td></tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 14. Indemnification of Directors and Officers</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The section of the prospectus entitled &#147;Conflicts of Interest and Fiduciary Responsibilities - Fiduciary Duty of Our General Partner - Indemnification&#148; is incorporated herein by this reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>As permitted by Section 18-1101 of the Delaware Limited Liability Company Act, the limited liability agreement of LEAF Asset Management, LLC provides that its officers and directors shall not be personally liable to the company or its members for monetary damages for breach of duties (including fiduciary duties) except for liability:</font></p>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>for any breach of their duty of loyalty;</font></p> </td> </tr></table>
</div>






<div align=left>


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    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>for acts or omissions not in good faith or that involve gross negligence, fraud or intentional misconduct, bad faith or a knowing violation of law;</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>under Sections 18-607 and 18-804(c) of the Delaware Limited Liability Company Act, relating to prohibited distributions; or</font></p> </td> </tr></table>
</div>






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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>for any transaction from which the director or officer derives an improper personal benefit.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Resource America, the indirect corporate parent of LEAF Asset Management, LLC, maintains directors&#146; and officers&#146; liability insurance against any actual or alleged error, misstatement, misleading statement, act, omission, neglect or breach of duty by any director or officer of itself or any direct or indirect subsidiary, excluding certain matters including fraudulent, dishonest or criminal acts or self-dealing.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 15. Recent Sales of Unregistered Securities</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>None</font></p>

<p align="center"><Font size="2" face="serif">II-1</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>


<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 16. Exhibits and Financial Statements Schedules</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>(a) Exhibits:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1.1</font></p>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Dealer-Manager Agreement with Chadwick Securities, Inc., including its Exhibit &#147;A&#148; Form of Escrow Agreement and its Exhibit &#147;B&#148; Form of Selling Dealer Agreement</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.2</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Amended Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.3</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P. (included as Appendix A to the prospectus)</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Forms of letters sent to limited partners confirming their investment</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>5.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Opinion of Kunzman &amp; Bollinger, Inc. as to the legality of the units being registered</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>8.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Opinion of Kunzman &amp; Bollinger, Inc. relating to tax matters</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>10.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Origination and Servicing Agreement among LEAF Financial Corporation, LEAF Equipment Leasing Income Fund III, L.P. and LEAF Funding, Inc.<sup> </sup></font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>23.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consent of Grant Thornton LLP for LEAF Equipment Leasing Income Fund III, L.P.</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>23.2</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consent of Grant Thornton LLP for LEAF Asset Management, LLC</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>23.3</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consent of Kunzman &amp; Bollinger, Inc. (contained in Exhibits 5.1 and 8.1)</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>24.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Power of Attorney</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>99.1</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Subscription Agreement (included as Appendix C to the prospectus)</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>99.2</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Selling Dealer Agreement (included as Exhibit &#147;B&#148; to Exhibit 1.1)</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>99.3</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Escrow Agreement (included as Exhibit &#147;A&#148; to Exhibit 1.1)</font></p> </td> </tr>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>(b) Financial Statement Schedules</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>All financial statement schedules are omitted because the information is not required, is not material or is otherwise included in the financial statements or related notes thereto.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>Item 17. Undertakings </font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The undersigned registrant hereby undertakes:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(a)(1)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (</font><u><font size=2>&sect; 230.424(b)</font></u><font size=2> of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the
&#147;Calculation of Registration Fee&#148; table in the effective registration statement.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><i><font size=2>Provided, however, That:</font></i></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the registration statement is on Form S-8 (</font><u><font size=2>&sect; 239.16b</font></u><font size=2> of this chapter), and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 (</font><u><font size=2>15 U.S.C. 78m</font></u><font size=2> or </font><u><font size=2>78o(d)</font></u><font size=2>) that are incorporated by reference in the registration statement; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 (</font><u><font size=2>&sect; 239.13</font></u><font size=2> of this chapter) or Form F-3 (</font><u><font size=2>&sect; 239.33</font></u><font size=2> of this chapter) and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) (</font><u><font size=2>&sect; 230.424(b)</font></u><font size=2> of this chapter) that is part of the registration statement.</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">II-2</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>




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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(C)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><i><font size=2>Provided further, however,</font></i><font size=2> that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement is for an offering of asset-backed securities on Form S-1 (</font><u><font size=2>&sect; 239.11</font></u><font size=2> of this chapter) or Form S-3 (</font><u><font size=2>&sect; 239.13</font></u><font size=2> of this chapter), and the information required to be included in a post-effective amendment is provided pursuant to Item 1100(c) of Regulation AB (</font><u><font size=2>&sect; 229.1100(c)</font></u><font size=2>).</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(3)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(4)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>If the registrant is a foreign private issuer, to file a post-effective amendment to the registration statement to include any financial statements required by &#147;Item 8.A. of Form 20-F (</font><u><font size=2>17 CFR 249.220f)</font></u><font size=2>&#147; at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3 (</font><u><font size=2>&sect; 239.33</font></u><font
size=2> of this chapter), a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or </font><u><font size=2>&sect; 210.3-19</font></u><font size=2> of this chapter if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(5)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>If the registrant is relying on Rule 430B (</font><u><font size=2>&sect; 230.430B</font></u><font size=2> of this chapter):</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(A)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Each prospectus filed by the registrant pursuant to Rule 424(b)(3) (</font><u><font size=2>&sect; 230.424(b)(3)</font></u><font size=2> of this chapter) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(B)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) (</font><u><font size=2>&sect; 230.424(b)(2)</font></u><font size=2>, </font><u><font size=2>(b)(5)</font></u><font size=2>, or </font><u><font size=2>(b)(7)</font></u><font size=2> of this chapter) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) (</font><u><font size=2>&sect; 230.415(a)(1)(i)</font></u><font size=2>, </font><u><font size=2>(vii)</font></u><font size=2>, or </font><u><font size=2>(x)</font></u><font size=2> of this chapter) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the
first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. </font><i><font size=2>Provided, however</font></i><font size=2>, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that
was part of the registration statement or made in any such document immediately prior to such effective date; or</font></p> </td> </tr></table>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p>
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        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>If
          the registrant is subject to Rule 430C (</font><u><font size=2>&sect;
          230.430C</font></u><font size=2> of this chapter), each prospectus filed
          pursuant to Rule 424(b) as part of a registration statement relating
          to an offering, other than registration statements relying on Rule 430B
          or other than prospectuses filed in reliance on Rule 430A (</font><u><font size=2>&sect;
          230.430A</font></u><font size=2> of this chapter), shall be deemed to
          be part of and included in the registration statement as of the date
          it is first used after effectiveness. </font><i><font size=2>Provided,
          however</font></i><font size=2>, that no statement made in a registration
          statement or prospectus that is part of the registration statement or
          made in a document incorporated or deemed incorporated by reference
          into the registration statement or prospectus that is part of the registration
          statement will, as to a purchaser with a time of contract of sale prior
          to such first use, supersede or modify any statement that was made in
          the registration statement or prospectus that was part of the registration
          statement or made in any such document immediately prior to such date
          of first use.</font></p>
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<p align="center"><Font size="2" face="serif">II-3</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(6)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:10%;text-align:left;'><font size=2>The undersigned registrant hereby undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</font></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (</font><u><font size=2>&sect; 230.424</font></u><font size=2> of this chapter);</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(ii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iii)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(iv)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(b)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant&#146;s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&#146;s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(c)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes to supplement the prospectus, after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of such offering.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(d)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes (1) to use its best efforts to distribute prior to the opening of bids, to prospective bidders, underwriters, and dealers, a reasonable number of copies of a prospectus which at that time meets the requirements of section 10(a) of the Act, and relating to the securities offered at competitive bidding, as contained in the registration statement, together with any supplements thereto, and (2) to file an amendment to the registration statement reflecting the results of bidding, the terms of the reoffering and related matters to the extent required by the applicable form, not later than the first use, authorized by the issuer after the opening of bids, of a prospectus relating to the securities offered at competitive bidding, unless no further public offering of such securities by the issuer and no reoffering of such securities by the
purchasers is proposed to be made.</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(e)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes to deliver or cause to be delivered with the prospectus, to each person to whom the prospectus is sent or given, the latest annual report to security holders that is incorporated by reference in the prospectus and furnished pursuant to and meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities Exchange Act of 1934; and, where interim financial information required to be presented by Article 3 of Regulation S-X are not set forth in the prospectus, to deliver, or cause to be delivered to each person to whom the prospectus is sent or given, the latest quarterly report that is specifically incorporated by reference in the prospectus to provide such interim financial information.</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">II-4</font></p>

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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(f)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreements certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.</font></p> </td> </tr></table>
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        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(g)(1)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other Items of the applicable form.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(g)(2)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes that every prospectus (i) that is filed pursuant to paragraph (h) (1) immediately preceding, or (ii) that purports to meet the requirements of section 10(a)(3) of the Act and is used in connection with an offering of securities subject to Rule 415 (</font><u><font size=2>&sect; 230.415</font></u><font size=2> of this chapter), will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(h)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(i)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes that:</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(1)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(2)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(j)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of section 310 of the Trust Indenture Act (&#147;Act&#148;) in accordance with the rules and regulations prescribed by the Commission under section 305(b)(2) of the Act.</font></p> </td> </tr></table>
</div>






<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="5%" valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>(k)</font></p> </td>

        <td valign=top style='padding:6.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 of a third party that is incorporated by reference in the registration statement in accordance with Item 1100(c)(1) of Regulation AB (</font><u><font size=2>17 CFR 229.1100(c)(1)</font></u><font size=2>) shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The
  undersigned registrant hereby undertakes that, except as otherwise provided
  by Item 1105 of Regulation AB (</font><u><font size=2>17 CFR 229.1105)</font></u><font size=2>,
  information provided in response to that Item pursuant to Rule 312 of Regulation
  S-T (</font><u><font size=2>17 CFR 232.312)</font></u><font size=2> through
  the specified Internet address in the prospectus is deemed to be a part of the
  prospectus included in the registration statement. </font></p>
<p align="center"><Font size="2" face="serif">II-5</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>In
  addition, the undersigned registrant hereby undertakes to provide to any person
  without charge, upon request, a copy of the information provided in response
  to Item 1105 of Regulation AB pursuant to Rule 312 of Regulation S-T through
  the specified Internet address as of the date of the prospectus included in
  the registration statement if a subsequent update or change is made to the information.
  </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2> The
  undersigned registrant undertakes to send to each limited partner at least on
  an annual basis a detailed statement of any transactions with the General Partner
  or its affiliates, and of fees, commissions, compensation and other benefits
  paid, or accrued to the General Partner or its affiliates for the fiscal year
  completed, showing the amount paid or accrued to each recipient and the services
  performed</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The undersigned registrant undertakes to provide to the limited partners the financial statements required by Form 10-K for the first full fiscal year of operations of the partnership.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The undersigned registrant further undertakes to file a sticker supplement pursuant to Rule 424(c) under the Securities Act during the distribution period describing, in the aggregate, lease transactions not described in the prospectus or a prior supplement promptly after such transactions have been consummated if such transactions exceed 10% of the offering proceeds received as of that date by the registrant.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>The undersigned registrant also undertakes to file, after the end of the distribution period, a current report on Form 8-K containing the financial statements and any additional information required by Rule 3-14 of Regulation S-X, to reflect each commitment (i.e., the signing of a binding purchase agreement) made after the end of the distribution period involving the use of 10% or more (on a cumulative basis) of the net proceeds of the offering and to provide the information contained in such report to the Limited Partners at least once each quarter after the distribution period of the offering has ended.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>Note</font></i><font size=2> Offers and sales of the interests may continue after the filing of a post-effective amendment containing information previously disclosed in sticker supplements to the prospectus, as long as the information disclosed in a current sticker supplement accompanying the prospectus is as complete as the information contained in the most recently filed post-effective amendment.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK.]</font></b></p>


<p align="center"><Font size="2" face="serif">II-6</font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>
<p><a href="#contents"><font size="2">Back to Contents</font></a></p>


<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font SIZE=2>SIGNATURES</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Pursuant
    to the requirements of the Securities Act of 1933, as amended, the registrant
    has duly caused this Registration Statement on Form S-1 to be signed on its
    behalf by the undersigned, thereunto duly authorized, in Philadelphia, Pennsylvania
on October 2, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="45%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="3%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font SIZE=2>LEAF EQUIPMENT LEASING INCOME FUND III, L.P.</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>  </p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br> <font size=2>LEAF Asset Management, LLC,</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>its General Partner</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'>  </p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br> <font size=2>/s/ Miles Herman</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Miles Herman</font></p>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>President and Chief Operating Officer</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons on behalf of the registrant and in the capacities for the general partner and on the dates indicated below.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="21%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Signature</font></b></p> </td>

        <td width="2%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Title</font></b></p> </td>

        <td width="2%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="20%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Date</font></b></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Crit S. DeMent</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Chairman of Board of Directors and Chief Executive Officer</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>October
    2,
    2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>Miles Herman</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>President, Chief Operating Officer and Director</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>Jonathan Z. Cohen</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>Director</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>Steven J. Kessler</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>Director</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>Robert K. Moskovitz</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>Chief Financial Officer (Chief Accounting Officer) and Treasurer</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>David H. English</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>Executive Vice President &#150; Chief Investment Officer</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>Daniel G. Courtney</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>Senior Vice President &#150; Investment Programs</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;margin-right:0pt;text-indent:-8.65pt;text-align:left;margin-top:4.0pt;margin-bottom: 0pt;'><font size=2>Darshan V. Patel</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>General Counsel and Secretary</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;margin-right:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt;'><font size=2>October
    2, 2006</font></p> </td> </tr></table>
</div>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=center>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="4%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p> </td>

        <td width="42%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:12.0pt;margin-bottom:0pt;'><font size=2>/s/ Miles Herman</font></p> </td>

        <td width="7%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="4%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="42%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<hr noshade width="100%" color="Gray" size="1"> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Miles Herman, individually and as attorney-in-fact for each person listed above pursuant to the power of attorney filed as part of the Registration Statement.</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>



<p align="center"><Font size="2" face="serif"></font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>As
  filed with the Securities and Exchange Commission on October 2, 2006</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:right;'><font size=2>Registration
  Number ____________</font></p>
<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in">
<div style=" border:none;border-bottom:solid .25em;padding:0in 0in 1.0pt 0in"></div></div><BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font size="4">UNITED
  STATES SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<hr noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font size="2">EXHIBITS</font></B></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size="2"><B>TO
  </B></font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size="2"><B>FORM
  S-1</B></font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size="2"><B>REGISTRATION
  STATEMENT</B></font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size="2"><b>Under</b></font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size="2"><B>THE
  SECURITIES ACT OF 1933</B></font></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<hr noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><B><font size="4">LEAF
  EQUIPMENT LEASING INCOME FUND III, L.P.</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of Registrant as Specified in its Charter)</font></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<hr noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Crit DeMent, Chairman</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>LEAF Asset Management, LLC</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>1818 Market Street, 9th Floor, Philadelphia, PA 19103</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(215) 569-1844</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name, Address and Telephone Number of Agent for Service)</font></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<hr noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>With a Copy to:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Wallace W. Kunzman, Jr., Esq.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Kunzman &amp; Bollinger, Inc.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>5100 N. Brookline</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Suite 600</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Oklahoma City, Oklahoma 73112</font></b></p>

<div style="border:none;border-bottom:solid .25em;padding:0in 0in 1.0pt 0in">
<div style="border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in"><p></p></div></div><BR>


<p align="center"><Font size="2" face="serif"></font></p>

<hr noshade align="center" width="100%" size="2">

<div style="page-break-before:always"></div><page>






<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>EXHIBIT INDEX</font></B></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="14%" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=1>Exhibit No.</font></b></p> </td>

        <td valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-bottom:0pt;'><b><font size=1>Description</font></b></p> </td> </tr>

    <tr style='height:3.6pt;'>


      <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

        <hr noshade align="center" width="100%" size="1">
      </td>


      <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

        <hr noshade align="center" width="100%" size="1">
      </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>1.1</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Dealer-Manager Agreement with Chadwick Securities, Inc.,<sup> </sup> including its Exhibit &#147;A&#148; Form of Escrow Agreement and its Exhibit &#147;B&#148; Form of Selling Dealer Agreement</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.1</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P. </font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.2</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Amended Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.3</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P. (included as Appendix A to the prospectus)</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4.1</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Forms of letters sent to limited partners confirming their investment</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>5.1</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Opinion of Kunzman &amp; Bollinger, Inc. as to the legality of the units being registered <sup>(2)</sup></font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>8.1</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Opinion of Kunzman &amp; Bollinger, Inc. relating to tax matters</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>10.1</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Origination and Servicing Agreement among LEAF Financial Corporation, LEAF Equipment Leasing Income Fund III, L.P. and LEAF Funding, Inc. </font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>23.1</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consent of Grant Thornton LLP for LEAF Equipment Leasing Income Fund III, L.P.</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>23.2</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consent of Grant Thornton LLP for LEAF Asset Management, LLC</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>23.3</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Consent of Kunzman &amp; Bollinger, Inc. (contained in Exhibits 5.1 and 8.1)</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>24.1</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Power of Attorney</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>99.1</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Subscription Agreement (included as Appendix C to the prospectus)</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>99.2</font></p> </td>

        <td style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Selling Dealer Agreement (included as Exhibit &#147;B&#148; to Exhibit 1.1)</font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>99.3</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>Form of Escrow Agreement (included as Exhibit &#147;A&#148; to Exhibit 1.1) </font></p> </td> </tr>

    <tr style='height:3.6pt;'>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:3.6pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr></table>
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[{"type": "S-1", "sequence": "1", "filename": "p414969_s1.htm", "description": "FORM S-1", "secsgml_size_bytes": 2619612}]
{"company-data": {"conformed-name": "LEAF Equipment Leasing Income Fund III, L.P.", "cik": "0001376074", "irs-number": "205455968", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-137734", "film-number": "061120033"}, "business-address": {"street1": "110 S. POPLAR STREET, SUITE 101", "city": "WILMINGTON", "state": "DE", "zip": "19801", "phone": "800-819-5556"}, "mail-address": {"street1": "110 S. POPLAR STREET, SUITE 101", "city": "WILMINGTON", "state": "DE", "zip": "19801"}}
Prepared and filed by St Ives Financial
As filed with the Securities and
Exchange Commission on October 2, 2006
Registration Number ______________
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
7394
(Primary Standard Industrial Classification Code Number)
20-5455968
(IRS Employer Identification Number)
110 S. Poplar Street, Suite 101
Wilmington, DE 19801
(800) 819-5556
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
Crit DeMent, Chairman and CEO
LEAF Asset Management, LLC
1818 Market Street, 9th Floor, Philadelphia, PA 19103
(215) 569-1844
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
With a Copy to:
Wallace W. Kunzman, Jr., Esq.
Kunzman & Bollinger, Inc.
5100 N. Brookline
Suite 600
Oklahoma City, Oklahoma 73112
As soon as practicable after this Registration Statement becomes effective.
(Approximate date of commencement of proposed sale to the public)
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box:
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
If
  this Form is a post-effective amendment filed pursuant to Rule 462(d) under
  the Securities Act, check the following box and list the Securities Act registration
  statement number of the earlier effective registration statement for the same
  offering.
Calculation
          of Registration Fee
Title
          of Each Class
of Securities to be
Registered
Amount
          to be
Registered
Proposed
          Maximum
Offering Price Per
Unit
Proposed
          Maximum
Aggregate Offering Price
Amount
          of
Registration Fee
Limited
          Partner Units
1,200,000
          Units
$100.00
$120,000,000
$12,840
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
CROSS REFERENCE SHEET
Item
          of Form S-1
Caption
          in Prospectus
Item
          1.
Forepart
          of the Registration Statement and Outside Front Cover Page of Prospectus
Front
          Page of Registration Statement and Outside Front Cover Page of Prospectus
Item
          2.
Inside
          Front and Outside Back Cover Pages of Prospectus
Inside
          Front and Outside Back Cover Pages of Prospectus
Item
          3.
Summary
          Information, Risk Factors and Ratio Of Earnings to Fixed Changes
Summary
          of the Offering; Risk Factors
Item
          4.
Use
          of Proceeds
Use
          of Proceeds
Item
          5.
Determination
          of Offering Price
The
          Offering
Item
          6.
Dilution
We
          have not conducted any activities and our general partner's officers,
          directors, promoters and affiliated persons have not acquired any units
          during the past five years. Also, no units will be issued in this offering
          to those persons except units subscribed for by them, as disclosed on
          the Outside Front Cover Page of Prospectus. Discounted units are described
          in "Plan of Distribution."
Item
          7.
Selling
          Security Holders
We
          do not have any selling security holders.
Item
          8.
Plan
          of Distribution
Plan
          of Distribution
Item
          9.
Description
          of Securities to be Registered
Summary
          of the Offering; The Offering; Summary of Our Partnership Agreement
Item
          10.
Interests
          of Named Experts and Counsel
Legal
          Matters; Experts
Item
          11.
Information
          with respect to the Registrant
(a)       Description
          of Business
Investment
          Objectives and Strategies; Management
(b)       Description
          of Property
Investment
          Objectives and Strategies
(c)       Legal
          Proceedings
Legal
          Matters
(d)       Market
          Price of and Dividends on the Registrant's Common Equity and Related
          Stockholder Matters
We
          have no markets in which our units are being traded and no holders of
          units, and we have not conducted any activities or paid any dividends.
(e)       Financial
          Statements
Financial
          Statements
(f)       Selected
          Financial Data
We
          have not conducted any activities. Thus, we do not have this information.
(g)       Supplementary
          Financial Information
We
          have not conducted any activities. Thus, we do not have this information.
(h)       Management's
          Discussion and Analysis of Financial Condition and Results of Operations
Management's
          Discussion and Analysis of Financial Condition
(i)        Changes
          in and Disagreements with Accountants on Accounting and Financial Disclosure
There
          have been no changes in, or disagreements with, accountants on accounting
          and financial disclosure.
(j)       Quantitative
          and Qualitative Disclosures about Market Risk
We
          have no market for our units and none will be created.
Item
          of Form S-1
Caption
          in Prospectus
(k)      Directors
          and Executive Officers
Management
(l)       Executive
          Compensation
Management
          Compensation
(m)     Security
          Ownership of Certain Beneficial Owners and Management
Management
(n)      Certain
          Relationships and Related Transactions
Management
          Compensation; Management; Conflicts of Interest and Fiduciary Responsibilities
Item
          12.
Disclosure
          of Commission Position on Indemnification for Securities Act Liabilities
Conflicts
          of Interest and Fiduciary Responsibilities
The information in this prospectus is not complete and may be changed.  We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective.  This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
LEAF
  EQUIPMENT LEASING INCOME FUND III, L.P.
Units of Limited Partner Interests
$100.00 per Unit
Minimum Investment – 50 Units ($5,000);
We are LEAF Equipment Leasing Income Fund III, L.P., a Delaware limited partnership whose general partner is LEAF Asset Management, LLC. We are offering a minimum of 20,000 units, or $2 million, and a maximum of 1,200,000 units, or $120 million. We will acquire a diversified portfolio of equipment that we will lease to end users. We will also acquire portfolios of equipment subject to existing leases from other third-party equipment lessors. We expect that approximately 80% of the proceeds of this offering will be available for investment, after deducting all front-end fees and expenses and excluding proceeds we retain as working capital reserves and funds provided by any financing we obtain. Our principal objective is to generate regular cash distributions to you and our other investors. We cannot assure you, however, that we will meet our objective. We anticipate that during our initial years of operation
our distributions will be substantially tax-deferred due primarily to depreciation deductions on a portion of our equipment and operating losses.
The
  units will be offered on a "best efforts" "minimum – maximum"
  basis. This means the broker/dealers must sell at least 20,000 units and receive
  subscription proceeds of at least $2 million in order for this offering to close,
  and they must use only their best efforts to sell our remaining units.
Our subscription proceeds will be held in an interest bearing escrow account until $2 million has been received. This offering will not extend beyond ______ __, 200__. If the minimum subscription proceeds are not received by _____ __, 200_, then your subscription will be promptly returned to you from the escrow account with interest earned, if any, and without deduction for any fees.
Our general partner, its officers, directors and affiliates, investors who buy units through the officers and directors of our general partner, registered investment advisors and their clients, and the dealer-manager, selling dealers and their registered representatives and principals, may purchase units at a price reduced by the sales commissions, which will not be paid for those sales. Our general partner and its affiliates currently intend to acquire not less than 10,000 units ($1 million), and may purchase up to approximately 5% of the total units sold, if greater. In addition, our general partner will receive a 1% interest in all of our income, losses and cash distributions in return for a $1,000 capital contribution, instead of paying the public offering price set forth in the table below, which will further dilute your investment in us. Our general partner anticipates that it will be our single largest
investor, although the total subscriptions of you and the other investors, as a group, will be greater.
Per Unit
Minimum
Maximum
Public Offering Price
$
100.00
$
2,000,000
$
120,000,000
Dealer-manager fee, sales commissions, accountable reimbursements for permissible non-cash compensation, and accountable due diligence reimbursements
$
10.50
$
210,000
$
12,600,000
Proceeds, before expenses, to us
$
89.50
$
1,790,000
$
107,400,000
This investment involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment.
You should read "Risk Factors," beginning
    on page 9 of this prospectus, for a discussion of factors you should consider
    before buying our units. Among the most prominent of these risks are the
following:
•
A substantial portion, and possibly all, of the cash distributions you receive from us will be a return of capital.
•
You must rely on our general partner to manage us.
•
We have not specifically identified our investments. As a result, you cannot evaluate the risks of, or potential returns from, any of our investments.
•
Our performance will be subject to the risk of lease and secured loans defaults.
•
Our success will depend in part on our ability to realize residual value from a portion of our equipment once the leases on that equipment terminate.
•
We will borrow to buy equipment to increase the size of our portfolio. This increases our risk of loss if our revenues are insufficient to pay our debt service and other expenses.
•
Our general partner will receive substantial compensation from us, which will reduce distributions to you.
•
There is no readily available public market for your units and your units will be subject to substantial transfer restrictions. If you hope to sell your units, the price you receive will likely be at a substantial discount to the price you paid.
•
You will have very limited voting rights.
•
We will engage in transactions with affiliates.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
Preliminary Prospectus dated _________________, 2006 (Subject to Completion)
Chadwick Securities, Inc. – Dealer-Manager
IMPORTANT NOTICE TO RESIDENTS OF NEW JERSEY
The offer or sale of units in LEAF Equipment Leasing Income Fund III, L.P. in New Jersey
is restricted to accredited investors as defined in N.J.S.A. 49:3-49(p).
TABLE
  OF CONTENTS
QUESTIONS AND ANSWERS
iv
SUMMARY OF THE OFFERING
1
LEAF
          Equipment Leasing Income Fund III, L.P
.
1
The Offering
7
RISK FACTORS
9
We May Not Return All of Your Investment or Any Rate of Return on Your Investment
9
Our General Partner Will Manage Us and Our Business and May Make Decisions With Which You Do Not Agree
9
Because We Do Not Know What the Composition of Our Investment Portfolio Will Be, You Cannot Evaluate Our Portfolio At the Time You Invest
9
Higher Than Expected Equipment Lease and Secured Loan Defaults May Result in Losses
9
If We Are Unable to Realize the Residual Value of Our Equipment, We May Incur Losses
10
Using "Leverage" to Build Our Portfolio Subjects Us to the Risk That Our Revenues May Not Be Sufficient to Cover Our Operating Costs Plus Debt Service and, Consequently, May Result in Losses
10
Cost Reimbursements and Significant Fees We Will Pay to Our General Partner, and Reserves Our General Partner Will Establish, Will Reduce Our Cash Available for Distribution
11
Your Ability to Dispose of Your Investment in Us Will Be Limited
11
You Will Have Very Limited Voting Rights and Ability to Control Our Business
12
Our General Partner May Be Subject to Various Conflicts of Interest Arising Out of Its Relationship to Us
12
Our General Partner May Have Difficulty Managing Its Growth, Which May Divert Its Resources and Limit Its Ability to Expand Its Operations Successfully
12
Our Lack of Operating History Decreases Your Ability to Evaluate Your Investment
12
If We Do Not Generate Sufficient Cash, We Will Not Be Able To Pay Your 8% Annual Distributions or Reinvest a Portion of Our Revenues in Additional Leases During the Reinvestment Period
12
You May Not Receive Cash Distributions From This Investment In An Amount Sufficient to Return Your Investment or Provide a Return on Your Investment, and the Intended Cash Distributions May Be Reduced or Delayed
13
If You Choose to Redeem Your Units You May Receive Much Less Than If You Kept Your Units
13
Our Success Will Be Subject to Risks Inherent in the Equipment Leasing Business, Any of Which May Affect Our Ability to Operate Profitably
13
Interest Rate Changes May Reduce the Value of Our Portfolio and Our Returns On It
14
Spreading the Risks of Equipment Leasing and Secured Loans By Diversifying Our Investments Will Be Reduced If We Raise Only the Minimum Offering Amount
14
Competition From Other Equipment Lessors Could Delay Investment of Our Capital, Reduce the Creditworthiness of Potential Lessees or Borrowers to Which We Have Access, or Decrease Our Yields
14
Poor Economic Conditions May Adversely Affect Our Ability to Build Our Portfolio
15
Resignation or Removal of Our General Partner, or Loss of Key Management Personnel of Our General Partner, Could Adversely Affect Our Ability to Conduct Our Business or Make Distributions
15
Our General Partner's Operating Systems Could Be Damaged or Disrupted By Events Beyond Its Control, Which Could Interfere With Our Ability to Conduct Our Business and Make Us Less Attractive to Customers as a Source of Equipment Leases and Secured Loans
15
Our Inability to Obtain Insurance For Certain Types of Losses Means We Must Bear the Cost of Any Losses From the Non-Insurable Risks
15
Lack of Independent Counsel or Independent Underwriter May Reduce the Due Diligence Review of Us and Our General Partner
16
You Could Be Liable for Our Obligations if You Participate in the Control of Our Business, and You
May Be Required to Return Improperly Received Distributions
16
Your Ability to Begin an Action Against Our General Partner is Limited By Our Partnership Agreement
16
If We Are, or Become, Subject to Usury Laws, It Could Result in Reduced Revenues or, Possibly, Loss on Our Investment
16
Participation With Third-Parties in Joint Ventures May Require Us to Pay Additional Costs or Incur Losses Because of Actions Taken By the Third-Parties
16
You May Be Required to Pay Taxes on Income From Us, Even If You Do Not Receive Commensurate Cash Distributions From Us
17
i
TABLE OF CONTENTS
We
          Will Not Apply for an Advance Ruling from the IRS as to Any Federal
          Tax Consequence of an Investment in Us, and if the IRS Classifies Us
          as a Corporation You Will Lose Tax Benefits
17
We
          Could Lose Cost Recovery or Depreciation Deductions if the IRS Treats
          Our Operating Leases as Sales or Financings
17
You
          Need Passive Income in Order to Deduct Any Tax Losses We May Generate
17
You
          Will Likely Be Subject to State and Local Taxes as a Result of Purchasing
          Our Units
18
An
          IRS Audit of Our Annual Federal Information Tax Return May Result in
          Adjustments to, or An Audit of, Your Personal Income Tax Returns
18
Your
          Investment in Us May Cause You to Pay Alternative Minimum Tax
18
Your
          Tax Benefits From an Investment In Us Are Not Contractually Protected
18
Tax-Exempt
          Organizations Will Have Unrelated Business Taxable Income from an Investment
          in Us
18
Foreign
          Investors In Us Will Be Subject to U.S. Tax Withholding and May Be Required
          to File U.S. Tax Returns
19
Changes
          in the Law May Reduce the Tax Benefits of Investing in Us
19
FORWARD-LOOKING
          STATEMENTS AND ASSOCIATED RISKS
19
USE
          OF PROCEEDS
20
MANAGEMENT
          COMPENSATION
21
CONFLICTS
          OF INTEREST AND FIDUCIARY RESPONSIBILITIES
27
Conflicts
          of Interest
27
In
          General
27
Our
          General Partner's Compensation is Not the Result of Arm's
          Length Negotiation
28
Actions
          Taken By Our General Partner Will Affect the Amount of Cash Available
          for Distribution to Limited Partners and Our General Partner's
          Compensation
28
Our
          General Partner and Its Affiliates Will Engage in Activities That Compete
          With Us
28
We
          May Enter into Joint Ventures With Affiliated Programs
29
We
          Do Not Have any Employees and Rely on the Employees of Our General Partner
          and Its Affiliates
29
We
          Must Reimburse Our General Partner and Its Affiliates for Expenses
29
We
          Have Not Retained Separate Counsel or Other Professionals
30
Lack
          of Independent Underwriter and Due Diligence Investigation in This Offering
30
Conflicts
          Regarding Redemption of Units
30
Our
          General Partner Also is Our Tax Matters Partner
30
Our
          General Partner and Its Affiliates Will Purchase Units as Investors
30
General
          Restrictions
31
Fiduciary
          Duty of Our General Partner
32
MANAGEMENT
33
Our
          General Partner
33
LEAF
          Financial Corporation
35
Investment
          Committee
36
Code
          of Business Conduct and Ethics
37
Organizational
          Diagram
37
Compensation
37
Security
          Ownership of Certain Beneficial Owners
37
Change
          in Partnership Management
38
Affiliated
          Company
38
OTHER
          PROGRAMS MANAGED BY OUR GENERAL PARTNER OR ITS AFFILIATES
38
INVESTMENT
          OBJECTIVES AND STRATEGIES
40
Principal
          Investment Objectives
40
Equipment
          for Lease to End Users
41
Equipment
          Already Subject to Lease
42
Types
          of Equipment
42
Market
43
Leasing
          Strategies
44
Origination
          – leasing at the right rate and cost
44
Underwriting
          – obtaining the right kind of business
44
Residual realization
        – maximizing returns at the end of a lease
45
Collections
          – assuring portfolio performance
46
Systems
          automation – controlling costs and providing enhanced service with
          automated solutions
46
Lease
          provisions
46
Portfolio
          acquisition strategies
47
Transaction
          approval policies
48
Borrowing
48
Origination
          and Servicing Agreement
49
Changes
          in Investment Objectives and Policies
50
INCOME,
          LOSSES AND DISTRIBUTIONS
50
Allocations
          of Net Income, Net Loss and Distributions Among Investors
50
Timing
          of Distributions
50
Federal
          Income Tax Deferral
50
Reinvestment
          of Our Revenues in Additional Leases and Secured Loans
51
Return
          of Unused Capital
52
Cash
          from Reserve Account
52
Election
          to Reinvest Cash Distributions in Units During the Offering Period
52
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TABLE OF CONTENTS
FEDERAL
          INCOME TAX CONSEQUENCES
53
Special
          Counsel's Tax Opinion Letter
53
Partnership
          Classification
55
Flow
          Through of Taxable Income
56
Treatment of Distributions
56
Basis
          of Units Limitation on Deductions
56
"At
          Risk" Limitation on Deductions
57
Passive
          Activity Limitations on Losses
57
Limitations
          on Interest Deductions
58
Partnership
          Income Tax Withholding
58
Organization
          and Offering Expenses and Start-Up Costs
59
Business
          Expenses
59
Tax
          Treatment of Leases
59
Depreciation
60
Sale
          or Other Disposition of Partnership Property
61
Sale
          or Other Disposition of Units
62
Consequence
          of No Section 754 Election
62
Tax
          Treatment of Our Termination
63
Possible
          IRS Audits
63
Alternative
          Minimum Tax
64
Profit
          Motive, IRS Anti-Abuse Rule and Judicial Doctrines Limitations on Deductions
65
Interest
          and Penalties
66
State
          and Local Taxation
67
Social
          Security Benefits and Self-Employment Tax
68
Estate
          and Gift Taxation
68
Federal
          Tax Treatment of Foreign Investors
68
Federal
          Taxation of Employee Benefit Plans and Other Tax-Exempt Organizations
68
Changes
          in the Law
68
INVESTMENT
          BY QUALIFIED PLANS
69
Fiduciaries
          under ERISA
69
Prohibited
          Transactions
69
Plan
          Assets
70
Other
          ERISA Considerations
70
MANAGEMENT'S
          DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
70
SUMMARY
          OF OUR PARTNERSHIP AGREEMENT
71
General
71
Capital
          Contributions
71
Powers
          of our General Partner
72
Liability
          of Our General Partner
72
Limited
          Liability of Limited Partners
72
Withdrawal
          or Removal of Our General Partner
72
Consequences
          of Withdrawal or Removal of Our General Partner
72
Liability
          of Withdrawn or Removed General Partner
72
Transfer
          of Units
73
Redemption
          of Units
74
Books
          and Records
74
Meetings
          of Limited Partners
74
Voting
          Rights of Limited Partners
75
Amendment
          by Limited Partners Without Our General Partner's Concurrence
75
Amendment
          by Our General Partner Without the Consent of the Limited Partners
75
Events
          Causing Dissolution
76
Liquidation
76
Roll-Up
          Transactions
76
REDEMPTION
          OF UNITS
77
Redemption
          Price of Units
77
Procedure
          for Redemption of Units
77
Restrictions
          on Redemption of Units
77
Consequences
          of Redemption of Units
78
REPORTS
          TO LIMITED PARTNERS
78
Tax
          Reports
78
Annual
          Reports
78
Quarterly
          Reports
79
Reports
          to State Securities Laws Administrators
79
PLAN
          OF DISTRIBUTION
79
Commissions
79
Indemnification
82
INVESTOR
          SUITABILITY
82
General
82
Basic
          Investor Suitability
82
Different
          Basic Investor Suitability for Residents of Certain States
82
Additional
          State Requirements
83
Who
          Should Invest
83
THE
          OFFERING
84
Terms
          of this Offering and the Offering Period
84
Escrow
          Arrangements
84
HOW
          TO SUBSCRIBE
85
SUPPLEMENTAL
          SALES LITERATURE
85
LEGAL
          MATTERS
86
EXPERTS
87
FORECASTS
87
WHERE
          YOU CAN FIND MORE INFORMATION
87
INDEX
          TO FINANCIAL STATEMENTS
87
Appendix A
Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.
Appendix B
Prior Performance Tables
Appendix C
Instructions for Completing the Subscription Agreement in LEAF Equipment Leasing Income Fund III, L.P.
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Questions and Answers
LEAF Equipment Leasing Income Fund III, L.P.
Q-1. What is LEAF Equipment Leasing Income Fund III, L.P. ("LEAF III")?
A-1. LEAF III is a form of investment opportunity that is commonly referred to as an Equipment Leasing and Finance Fund. These funds provide investors with access to equipment leases and loans to businesses that usually are made only by large financial institutions and banks. These funds may be considered a nontraditional (or alternative) asset class because their assets are not correlated to traditional assets such as stocks and bonds. Thus, these funds may offer benefits associated with diversification and asset allocation. LEAF III also is a limited partnership and its general partner is LEAF Asset Management, LLC, which will manage all aspects of LEAF III and its business.
As LEAF III raises investor funds and borrows money, and after paying fees and expenses and making required distributions to you and the other investors, which are not guaranteed, LEAF III will use its capital to acquire a diversified portfolio of business essential equipment to lease to third-party businesses known as lessees. The general partner believes that borrowing funds will allow LEAF III to increase the size and diversification of its portfolio of equipment leases. The third-party lessee will be obligated under the lease to make non-cancelable interest and rental payments to LEAF III for the use of the equipment during the lease term, although there is a risk that it may fail to do so.
For a more detailed discussion of LEAF III's investment objectives and strategies, please refer to the "INVESTMENT OBJECTIVES AND STRATEGIES" section of the prospectus beginning on page 40.
Q-2. Are there different types of equipment leases?
A-2. Yes. Depending on the type of lease, the lessee may purchase the equipment for a nominal fee at the end of the lease term, or return the equipment to LEAF III. The general partner expects that approximately 65% to 75% of LEAF III's equipment leases will be full payout leases, which are leases under which the rental payments during the initial term of the lease, on a present value basis, will be sufficient to return an amount equal to LEAF III's purchase price of the leased equipment, plus an appropriate return, without consideration of the residual value of the leased equipment at the end of the lease. Under the full payout leases, the lessee may purchase the equipment at the end of the lease term for a nominal fee. Thus, LEAF III does not need to sell or re-lease the equipment to recover its invested capital in the equipment under a full payout lease. The general partner further expects that
approximately 25% to 35% of LEAF III's equipment leases will be operating leases, which are leases under which the total rental payments during the original term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment leased under the lease. Under the operating lease, the lessee would be required to return the equipment to LEAF III at the end of the lease term. Thus, LEAF III would need to sell or re-lease the equipment after the end of the operating lease to either the initial lessee or another party in order to recover its full purchase price for the equipment, plus an appropriate return on the lease. See the "INVESTMENT OBJECTIVES AND STRATEGIES – LEASING STRATEGIES – RESIDUAL REALIZATION –MAXIMIZING RETURNS AT THE END OF A LEASE" section of the prospectus beginning on page 45 for a more detailed discussion of LEAF III's strategies to recover the residual value of equipment it leases to others
under operating leases.
LEAF III expects that the cost per unit of the equipment it finances will range from $20,000 to $2 million, and the average per unit cost of its leases will be between $50,000 and $100,000. In addition, up to 30% of LEAF III's capital available for investment from time to time may be used to provide secured loans to end users to acquire business essential equipment.
For a more detailed discussion of the lease types anticipated in LEAF III, please refer to the "INVESTMENT OBJECTIVES AND STRATEGIES" section of the prospectus beginning on page 40.
Q-3. What are the investor suitability requirements for this investment?
A-3. In general, you must have either a net worth of at least $45,000, plus $45,000 of annual gross income; or a net worth of at least $150,000. Some states impose higher suitability requirements. Also, the minimum investment amount for most investors is $5,000 (50 units). An investment in LEAF III is illiquid, and there is no readily available public market for its units. You should invest in LEAF III only if you are prepared to hold your units for at least nine years, and possibly longer.
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IMPORTANT NOTICE TO RESIDENTS OF NEW JERSEY
The offer or sale of units in LEAF Equipment Leasing Income Fund III, L.P. in New Jersey is restricted to accredited investors as defined in N.J.S.A. 49:3-49(p).
For a more detailed discussion of investor suitability requirements in particular states, please refer to the "INVESTOR SUITABILITY" section of the prospectus beginning on page 82.
Q-4. Who is LEAF III's General Partner, LEAF Asset Management, LLC?
A-4. LEAF Asset Management, LLC is a recently formed limited liability company that will serve as the general partner of investor programs. It is based in Philadelphia, Pennsylvania, and is an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ:REXI). Headquartered in Philadelphia and New York, Resource America was founded over 40 years ago. Resource America is a specialized asset management company with more than $10 billion in assets under management (as of August 2006) through its subsidiaries that operate in three primary business segments:  Equipment Finance, Real Estate and Structured Financial Products.
LEAF Asset Management's senior management team has substantial experience in the equipment leasing and finance industries. Also, as of September 2006, the general partner's affiliate, LEAF Financial Corporation, which will act as the servicer of LEAF III's leases and secured loans, had over $569 million in assets under management through over 14,600 individual leases and loans. In addition, LEAF Financial Corporation serves as the general partner for Lease Equity Appreciation Fund I, L.P. ("LEAF I") and Lease Equity Appreciation Fund II, L.P. ("LEAF II"), which are prior equipment leasing and finance programs sponsored by it since 2002.
For information concerning certain operating results of LEAF I and LEAF II as of June 30, 2006, see the "Prior Performance Tables" in Appendix B to the prospectus. LEAF I and LEAF II also file periodic reports with the SEC. See the "Where You Can Find More Information" section of the prospectus to learn how to obtain copies of those filings from the SEC's public reference room or its website.
LEAF Asset Management and its affiliates currently intend to acquire a minimum of $1 million of limited partner units in LEAF III, and they may purchase up to approximately 5% of the total units sold in this offering, if greater. The general partner anticipates that it will be the single largest investor in LEAF III, although the total investments of you and the other investors in LEAF III, as a group, will be greater.
For a more detailed discussion of the general partner, please refer to the "MANAGEMENT" section of the prospectus beginning on page 33.
Q-5. What are the primary investment objectives of LEAF III?
A-5. LEAF III's principal objectives are to invest in a diversified portfolio of equipment for lease to end users, or to acquire equipment subject to existing leases, or on a limited basis to finance the purchase of equipment by end users, in order to:
•
preserve, protect and return your invested capital;
•
generate regular cash distributions to you and the other investors during the period beginning on the initial closing date in this offering and ending five years after the offering period for this offering terminates (the "reinvestment period");
•
reinvest revenues in purchases of additional equipment during the reinvestment period, after paying its expenses, establishing appropriate reserves and making specified distributions to you and the other investors; and
•
provide additional cash distributions to you after the end of the reinvestment period and until all of its equipment leases and secured loans have either matured and terminated or been sold.
For a more detailed discussion of LEAF III's investment objectives, please refer to the "INVESTMENT OBJECTIVES AND STRATEGIES" section of the prospectus beginning on page 40.
Q-6. What types of equipment will LEAF III finance?
A-6. LEAF III intends to focus on investing in equipment that is essential for businesses to conduct their operations so the end users will be highly motivated to make the required monthly payments in order to keep the equipment in place. However, LEAF III has not specifically identified its investments. As a result, you cannot evaluate the risks of, or potential returns from, any of its investments at the time you invest. The general partner expects that LEAF III will focus on business essential equipment  such as:
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•
general office equipment, including office machinery, furniture, telephone systems, computer systems and software;
•
medical and dental practice equipment for diagnostic and treatment use;
•
energy and climate control systems; and
•
light industrial and construction equipment, including small lift trucks, small earth moving equipment and tractors, manufacturing, material handling and electronic diagnostic systems.
This equipment will generally be leased by LEAF III to small to mid-sized businesses, which the general partner generally categorizes as businesses with 500 or fewer employees, $1 billion or less in total assets; or $100 million or less in total annual sales.
For a more detailed discussion of the types of equipment the fund will finance, please refer to the "INVESTMENT OBJECTIVES AND STRATEGIES – EQUIPMENT FOR LEASE TO END USERS" section of the prospectus beginning on page 41.
Q-7. What can I expect to happen after I invest in LEAF III and when can I expect to receive distributions?
A-7. Once the general partner has accepted your subscription, you will receive a confirmation letter indicating LEAF III's acceptance of your investment and a copy of your fully executed subscription agreement. Generally, LEAF III intends to begin making monthly cash distributions in the month following the first full month of operations after it sells the minimum number of units in this offering and has its initial closing. Monthly distributions, however, are not guaranteed. Also, unless you are a resident of Ohio, if you previously invested in LEAF I or LEAF II, or both, you may elect on your subscription agreement to have your distributions from those programs during the period LEAF III is offering its units for sale reinvested in units in LEAF III without a minimum investment amount to the extent units are still available for purchase. In addition, unless you are a resident of Ohio, when you subscribe
for the minimum investment amount of $5,000 (50 units) or more in LEAF III you also may elect on your subscription agreement to have your distributions from LEAF III during the period LEAF III is offering its units for sale reinvested in additional units in LEAF III without a minimum investment amount for the additional units to the extent units are still available for purchase.
During the remaining five year reinvestment period following the up to two year offering period, no new investors will be accepted by LEAF III. During this period LEAF III intends to invest its net revenues from its leases and secured loans in additional leases and secured loans after making certain required distributions to you and the other investors.
During LEAF III's liquidation period (which the general partner anticipates will be approximately two years), LEAF III will not invest its revenues in additional leases or secured loans. Instead, it intends to distribute all of its available net cash to its partners as its leases mature and its remaining equipment is sold.
For a more detailed discussion of LEAF III's distributions to you, please refer to the "INCOME, LOSSES AND DISTRIBUTIONS" section of the prospectus beginning on page 50.
Q-8. Are there tax benefits and consequences of investing in LEAF III?
A-8. LEAF III, as a limited partnership, will not pay income taxes itself. Instead, all of its taxable income or losses and other tax items will be passed through to you and its other partners. The general partner anticipates that during LEAF III's early years income taxes on distributions to you and the other investors will be substantially tax-deferred by operating losses and depreciation deductions available from the portion of its equipment leased to third-party end users under its operating leases, but not under its full payout leases or equipment serving as security for its secured loans. Also, the passive activity rules under the Internal Revenue Code will apply to natural persons and most other types of investors in LEAF III. Thus, you should anticipate that your share of LEAF III's net income or net loss in each of its taxable years generally will be characterized as passive activity income or loss.
Employee benefit plans, such as qualified pension and profit sharing plans, Keogh plans and IRAs, generally are exempt from federal income tax, except that any unrelated business taxable income ("UBTI") that exceeds $1,000 in any taxable year is subject to an unrelated business income tax. Other charitable and tax exempt organizations are also subject to tax on UBTI. Most of LEAF III's net income, if any, in a given year will constitute UBTI.
For a more detailed discussion, please refer to the "FEDERAL INCOME TAX CONSEQUENCES" section of the prospectus beginning on page 53. You are urged to seek advice based on your individual circumstances from an independent tax advisor with respect to the tax consequences to you of an investment in LEAF III.
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Q-9. Can I sell my units in LEAF III?
A-9. You should invest in LEAF III only if you are prepared to hold your units for at least nine years. Although you may request LEAF III to redeem some or all of your units at any time, LEAF III has no obligation to redeem any of your units and it will not maintain a cash reserve for this purpose. Also, in any calendar year, LEAF III is limited as to the number of units it may redeem so that it will not be treated as a publicly traded partnership for tax purposes. In addition, the redemption price for your units is unlikely to reflect the fair market value of your units at the time of redemption, particularly during the liquidation period. You may realize a greater return by holding on to your units for the duration of LEAF III's term.
For a more detailed discussion, please refer to the "REDEMPTION OF UNITS" section of the prospectus beginning on page 77.
Q-10. Where can I get more information?
A-10. LEAF III has filed a registration statement on Form S-1 with the SEC regarding the units it offers by this prospectus and it will file periodic reports and other information with the SEC. These documents are available at the SEC's web site at http://www.sec.gov. After you are an investor in LEAF III, you may contact LEAF Asset Management's Investor Relations department regarding your account information. The telephone number is 1-866-323-0241. You are urged to thoroughly discuss an investment in LEAF III with your financial, tax and legal advisors.
For a more detailed discussion, please refer to the "WHERE YOU CAN FIND MORE INFORMATION" section of the prospectus beginning on page 87.
[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK.]
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SUMMARY
  OF THE OFFERING
Because this is only a summary, it does not contain all of the information that may be important to you. You should read this entire prospectus, including the "Risk Factors" section, before deciding to invest in our units. Throughout this prospectus when there is a reference to you it is a reference to you as a potential investor or limited partner in us.
LEAF
  Equipment Leasing Income Fund III, L.P.
The Fund
We are a Delaware limited partnership that will acquire a diversified portfolio of equipment that we will lease to third-parties. We will also acquire equipment subject to existing leases from other third-party equipment lessors. In addition, we may use up to 30% of our total funds available for investment at any given time to make secured loans to end users to finance their purchase of equipment.
The equipment we acquire for lease or financing to others generally will be:
•
new, used or reconditioned;
•
business-essential equipment, such as computers, general office equipment, medical and dental practice equipment, software, energy and climate control systems, light construction and industrial equipment;
•
intended for the small to mid-size business market, which generally includes businesses with 500 or fewer employees, $1 billion or less in total assets; or $100 million or less in total annual sales; and
•
have a per unit equipment cost generally between $20,000 and $2 million, with an average per unit cost of  $50,000 to $100,000.
We have not identified any investments as of the date of this prospectus. For a more complete discussion, you should read the "Investment Objectives and Strategies" section of this prospectus. Our principal office in Delaware is at 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801, and our telephone number is (800) 819-5556.
Management
We will be managed by LEAF Asset Management, LLC, which will also be our general partner. The principal office of LEAF Asset Management is at  1818
Market Street, 9
th
Floor, Philadelphia, Pennsylvania 19103, and its telephone number is (215) 569-1844. The management team of our general partner and its affiliate, LEAF Financial Corporation ("LEAF Financial"), which will service our leases and secured loans, has substantial experience in the finance and equipment leasing industries. Its members have held senior executive and risk management positions with financial institutions such as CitiCapital Vendor Finance, CoreStates Bank, N.A., Fidelity Leasing, Inc. and Tokai Financial Services, Inc. LEAF Financial's core executive team, consisting of Crit DeMent, Miles Herman, Nick Capparelli and David English, and other senior staff
members, were key members of management teams that built two equipment leasing operations which were acquired by international financial institutions. Most recently they were key members of a management team that, in 1996, began an equipment leasing business focused on the small to mid-sized business market for Resource America, Inc. ("Resource America"), the indirect corporate parent of our general partner, that by June 30, 2000 had grown into an operation that managed over $600 million in equipment leasing assets. This business was sold to European American Bank, a subsidiary of ABN AMRO Bank, N.V., in 2000 for $564.8 million, including the assumption of $431 million in third-party debt. We describe the background and experience of our general partner's management team in the "Management" section of this prospectus.
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Fund Objectives
Our investment objectives are to:
•
preserve, protect and return your invested capital;
•
generate regular cash distributions to you during the period beginning on our initial closing date and ending five years after this offering terminates (the "reinvestment period");
•
during the reinvestment period, enter into or purchase equipment leases and secured loans using our net offering proceeds from this offering, and borrow funds to increase the diversification of our portfolio, and reinvesting our revenues after paying our expenses, establishing appropriate reserves and making certain distributions to you and our other investors; and
•
provide additional cash distributions to you after the end of the reinvestment period and until all of our equipment leases and secured loans have either matured and terminated or been sold (the "liquidation period").
We expect to begin making distributions in the month following the first full month of operations after we sell the minimum number of units in this offering and have our initial closing. We also expect that, during the early years of our operations, our distributions will be substantially tax-deferred. We cannot assure you, however, as to the timing or specific level of your distributions, or whether we will achieve any of our objectives.
•
We describe our investment objectives and strategies in the "Investment Objectives and Strategies" section of this prospectus.
•
We describe our distribution policies in the "Income, Losses and Distributions" section of this prospectus.
Risk Factors
An investment in our units involves risks, including the following:
•
A substantial portion, and possibly all, of the cash distributions you receive from us will be a return of capital. The portion of your total distributions that is a return of capital and the portion that is investment income will depend on a number of factors in our operations and cannot be determined until all of our equipment leases and secured loans have either matured and terminated or been sold.
•
Our general partner will have all management authority over us and our business.
•
We will not specifically identify the equipment we will acquire or the persons to whom we will lease our equipment until we are ready to invest our funds. As a result, you cannot evaluate the risks of, or potential returns from, any of our investments at the time you invest.
•
Higher than expected lease and secured loan defaults may result in our inability to fully recover our investment or expected income from the affected equipment and could reduce our cash distributions to you and our other limited partners.
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•
We anticipate that approximately 25% to 35% of our leases will be operating leases under which the rental payments we receive will return approximately 80% to 85% of the purchase price we paid for the equipment. If we are unable to realize the residual value of approximately 15% to 20% of the purchase price we paid for that equipment after the operating leases terminate, by either re-leasing or selling the equipment, then we may lose any profit or even a portion of our investment in that equipment.
•
We will borrow to buy equipment for leases and secured loans, which will require a pledge of most or all of our equipment to the creditors. If our returns on these investments are insufficient to pay our debt service and other expenses, typically as a result of defaults on a portion of our leases or secured loans, then we may incur a loss and could lose some or all of the pledged equipment.
•
Our general partner and its affiliates will receive substantial compensation from us, which will reduce our cash distributions to you and our other limited partners. Some of these fees will be paid without regard to the amount of our cash distributions to you and our other limited partners and regardless of the profitability of our operations.
•
You will probably not be able to resell your units since they will not be listed on any stock exchange or interdealer quotation system, and there are significant restrictions in our partnership agreement on your ability to transfer your units. We do not intend to assist in the development of any secondary market for, or provide qualified matching services for purchasers and sellers of, our units. Any sale that you may be able to arrange for your units, including the redemption of the units by us, which is at our sole discretion, is likely to be at a substantial discount to your investment, partnership equity per unit or other measures of value.
•
You and our other limited partners will have very limited voting rights and ability to control our business. Also, your voting power will be diluted because our general partner and its affiliates currently intend to purchase at least 10,000 units ($1 million) and may purchase up to approximately 5% of the total units sold, if greater. However, our general partner and its affiliates may not participate in any vote by you and our other limited partners to remove our general partner as the general partner or regarding any transaction between us and our general partner or any of its affiliates.
For a more complete discussion of the risks relating to an investment in our units, you should read the "Risk Factors" section of this prospectus.
Leverage
We intend to finance a significant portion of the cost of the equipment we acquire through borrowings, including financings provided through securitizations. A "securitization" means, in general, a transfer of a portion of our equipment leases and secured loans to a special purpose entity that is wholly-owned by us and is bankruptcy-remote, which in turn pledges those assets to a trust that issues debt securities backed by the cash flow from those assets. Our securitizations are accounted for on our balance sheet as debt. We believe that, under current market conditions, on full investment and assuming we sell the maximum number of units, our borrowings will be approximately 80% of the aggregate acquisition costs of our investments. However, we do not have a required minimum or maximum amount of financing, and the amount of financing we actually use may be
more or less than 80%. We describe our borrowing and securitization policies in the "Investment Objectives and Strategies – Borrowing" section of this prospectus.
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Income,
          Losses, and Distributions
Our income, losses and distributions will be allocated
          99% to you and our other limited partners and 1% to our general partner.
          We describe our allocation of income, losses, and distributions in the
          "Income, Losses and Distributions" section of this prospectus.
Fees
          of Our General Partner and Its Affiliates
Our general partner and its affiliates will receive substantial
          fees and other compensation from us, as follows:
•
Our
          general partner will have a partnership interest equal to 1% of all
          of our income, losses and cash distributions.
•
Our
          general partner will receive an organization and offering expense allowance
          of 3% of offering proceeds to reimburse it for expenses incurred in
          preparing us for registration or qualification under federal and state
          securities laws and subsequently offering and selling our units. This
          expense allowance does not cover dealer-manager fees, sales commissions,
          or reimbursement to the selling dealers of up to a maximum of .5% of
          our offering proceeds for their bona fide accountable due diligence
          expenses.
•
We
          expect to acquire all of our leases and secured loans through LEAF Funding,
          Inc. ("LEAF Funding"), an affiliate of our general partner,
          which will originate and hold the leases and secured loans on a temporary
          basis in order to facilitate their acquisition by us. The purchase price
          that we will pay LEAF Funding for those leases and secured loans will
          not exceed LEAF Funding's net cost for acquiring and holding the
          leases and secured loans until we purchase them, which will include
          the cost to LEAF Funding of origination fees it pays to certain of its
          employees for their efforts in locating and facilitating the acquisition
          of the leases and secured loans on our behalf, in amounts typically
          ranging from 1% to 3% of LEAF Funding's cost for the leases and
          secured loans to the extent those fees qualify as initial direct costs
          of the assets purchased by us under United States general accepted accounting
          principles ("GAAP"),.
•
Our
          general partner will receive a fee of 2% of the purchase price we pay
          to acquire our equipment for leasing or financing to others or to purchase
          existing equipment leases or secured loans. The purchase price we pay
          will include the debt we incur or assume in connection with the acquisition.
          Our general partner will pay its out-of-pocket expenses, related to
          its acquisition activities on our behalf, but not origination fees incurred
          by LEAF Funding as described in the above bullet, such as costs of credit
          reports and travel and communication expenses, and it will not receive
          any reimbursement from us for those expenses except through this fee.
•
Our
          general partner will receive a subordinated asset management fee for
          managing each type of investment described below equal to the lesser
          of the amount, for each type of lease or financing arrangement described
          below, that is reasonable, competitive, and would customarily be paid
          to non-affiliated third-parties rendering similar services in the same
          geographic location and for similar types of investments or:
•
for
          our operating leases managed by third-parties under our general partner's
          supervision – 1% of gross rental payments;
•
for
          our operating leases managed by our general partner or its affiliates
          – 4% of gross rental payments;
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•
for our full payout leases which contain net lease provisions – 2% of gross rental payments; and
•
for our secured loans – 2% of gross principal and interest payments.
During the reinvestment period, the management fees will be subordinated to the payment to you and our other limited partners of a cumulative annual distribution of 8% of your capital contributions, as adjusted by certain distributions made to you which are deemed to be a return of capital as described in the "Income, Losses and Distributions – Reinvestment of Our Revenues in Additional Leases and Secured Loans" section of this prospectus.
•
Our general partner will receive a subordinated commission equal to one-half of a competitive commission, up to a maximum of 3% of the contract sales price, for arranging the sale of our equipment after the expiration of a lease. This commission will be subordinated to the return to our limited partners of the purchase price of their units plus a cumulative annual distribution, compounded daily in this case only, of 8% of their capital contributions, as adjusted by our distributions to them that are deemed a return of capital.
•
Our general partner will receive a re-leasing fee equal to the lesser of a competitive rate or 2% of gross rental payments derived from any re-lease of equipment, payable as we receive rental payments from the re-lease. We will not, however, pay a re-leasing fee to our general partner if the re-lease is with the original lessee or its affiliates.
•
Our general partner will be reimbursed for operating and administrative expenses incurred by it on our behalf, subject to limitations contained in our partnership agreement and as described in the "Management Compensation" section of this prospectus.
•
Our general partner's affiliate, Chadwick Securities, Inc. ("Chadwick Securities"), which is the dealer-manager for this offering of our units, will receive a dealer-manager fee of 3% of our offering proceeds for obtaining and managing the group of selling dealers that will sell our units in this offering. From this dealer-manager fee, Chadwick Securities may pay the selling dealers an amount of up to 1% of the offering proceeds of each unit sold by them as a marketing fee and use a portion or all of the remainder of the dealer-manager fee for other underwriting expenses, including permissible non-cash compensation, as described in the "Plan of Distribution" section of this prospectus. In addition, Chadwick Securities will receive up to .5% of the
          offering proceeds as reimbursement for the bona fide accountable due diligence expenses incurred by the selling dealers in this offering, all of which it will reallow to the selling dealers. Chadwick Securities also will receive sales commissions of 7% of the offering proceeds, all of which it will reallow to the selling dealers except for units sold by it. However, Chadwick Securities does not anticipate that it will directly sell a material number of units.
For a more complete description of the fees and other compensation payable to our general partner and its affiliates, you should read the "Management Compensation" section of this prospectus.
Our General Partner's Relationship with Us May Be Conflicted
Our general partner may be subject to conflicts of interest because of its relationship to us. These potential conflicts include:
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•
There were no arm's-length negotiations in determining our general partner's compensation.
•
Actions taken by our general partner will affect the amount of our general partner's compensation and the amount of cash available for distribution to you and our other limited partners.
•
Our general partner and its affiliates may engage in activities that compete with us.
•
We do not have any employees and rely on employees of our general partner and its affiliates.
For a more complete description of the conflicts of interest to which our general partner may be subject, you should read the "Conflicts of Interest and Fiduciary Responsibilities" section of this prospectus.
Use
          of Proceed
We expect to invest approximately 80% of our offering proceeds in:
•
equipment that we lease to end users;
•
equipment that is already subject to existing leases; and
•
loans to end users to purchase equipment that also serves as collateral for the repayment of the loans.
We will use the balance of our offering proceeds to pay dealer-manager fees, sales commissions, bona fide accountable due diligence expense reimbursements, organization and offering expenses and acquisition fees, and to establish a working capital reserve. We describe our expected use of the offering proceeds in the "Use of Proceeds" section of this prospectus.
Partnership Agreement
You and the other purchasers of our units will be our limited partners. Our partnership agreement will govern the following:
•
our activities;
•
the relationships among you and the other limited partners; and
•
the relationship between our general partner and you and our other limited partners.
The following is a brief summary of some of the principal provisions of our partnership agreement, apart from the income, loss and distribution allocation provisions and the fees of our general partner and its affiliates described previously in this summary. For a more complete description, you should read the "Summary of Our Partnership Agreement" section of this prospectus. In addition, the form of our amended and restated partnership agreement is included as Appendix A to this prospectus.
•
Voting rights:  You will have one vote for each unit you purchase. You and our other limited partners are entitled to vote on specified fundamental matters, such as:
•
amendments to our partnership agreement;
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•
removal of our general partner;
•
our merger with another entity;
•
the sale of all, or substantially all, of our assets; or
•
our dissolution.
Otherwise, you and our other limited partners have no participation in determining our operations or policies.
•
Meetings:  Our general partner, or our limited partners holding 10% or more of our outstanding units, may call a meeting of the limited partners on matters on which they are entitled to vote.
•
Limited liability: So long as you do not participate in the control of our business and otherwise act in conformity with our partnership agreement, your liability as a limited partner will be limited to the amount of your invested capital, plus your share of any of our undistributed profits and assets.
•
Transferability of units:  Our partnership agreement restricts the transfer of units so that we will not be treated as a "publicly traded partnership" for federal income tax purposes and will not be taxed as a corporation. As a result of these restrictions, you probably will not be able to transfer your units if or when you want to.
•
Removal of general partner:  Our general partner may be removed only on a vote of limited partners holding a majority of our outstanding units. Neither our general partner nor any of its affiliates may participate in any vote by you and our other limited partners to remove our general partner as general partner.
•
Amendment of partnership agreement:  Our partnership agreement generally may be amended by the vote of limited partners holding a majority of our outstanding units. However, no amendment may be made that would change any partner's interest in distributions or partnership income or losses without the consent of all affected partners.
•
Term:  We will terminate as a partnership on December 31, 2031, unless sooner terminated as set forth in our partnership agreement. Our partnership agreement does not provide for renewal or extension of the partnership term, which may only be done by amendment of our partnership agreement by limited partners owning more than 50% of our units.
The
          Offering
Securities Offered
A minimum of 20,000 units and a maximum of 1,200,000 units.
Minimum Investment
You must purchase a minimum of 50 units for $5,000. However, there is no minimum investment for certain investors as described in "– Distribution Reinvestments," below.
Distribution Reinvestments
In addition to your initial purchase of not less than 50 units as described in "– Minimum Investment," above, you may elect on your subscription agreement to use any cash distributions that you receive from us during the offering period following your initial investment to purchase additional units in us on the same terms as you purchased your initial units, to the extent units are then available for sale.
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Also, if you previously invested in Lease Equity Appreciation Fund I, L.P. ("LEAF I") or Lease Equity Appreciation Fund II, L.P. ("LEAF II"), which are prior equipment leasing programs sponsored by LEAF Financial Corporation, an affiliate of our general partner, you may elect on your subscription agreement to use any cash distributions you receive from either or both of those programs to purchase our units during the offering period, to the extent units are available for sale. Also, there is no minimum number of units that must be purchased if cash distributions from LEAF I or LEAF II, or both, are used to purchase our units.
All units purchased by you with distributions from either us or LEAF I or LEAF II will be purchased at the public offering price and, except as set forth above, on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements.
Offering Period
Until _______________, 200_. After ________________, 200_, the states or other jurisdictions may require renewal, requalification or other consents for this offering. This offering will terminate if we do not receive and accept subscriptions for the minimum offering amount of $2 million by ________________, 200_.
Escrow
We will deposit your investment in an interest-bearing escrow account until we have received the minimum offering amount of $2 million or until ______________, 200_, whichever is earlier. If we have not received the minimum offering amount by then, all of your funds will be returned to you with any interest earned, and without deduction for any fees. If we receive the minimum offering amount on or before ______________, 200_, however, then:
•
you will be admitted as a limited partner;
•
your escrowed subscription proceeds will be delivered to us for use as described in this prospectus; and
•
the interest earned on your escrowed subscription funds, if any, will be paid to you.
Subscription Procedure
You must fill out and sign a subscription agreement, the form of which is attached to this prospectus as Appendix C, in order to purchase our units. You should send your subscription agreement and a check for the purchase price of your units as instructed in the subscription agreement. Wire transfer instructions are available on request.
Closings
We will hold the initial closing of this offering when we receive subscriptions for 20,000 units, excluding units subscribed for by Pennsylvania and Iowa residents and by our general partner and its affiliates. At that time, we will admit investors as limited partners and receive the escrowed funds from the escrow agent. After the initial closing, we will hold weekly closings until we have sold all of the units or this offering terminates, whichever comes first.
If you are a Pennsylvania or Iowa resident, we must hold your subscription proceeds in escrow until we receive and accept subscriptions for at least 60,000 units. In addition, we must offer you the opportunity to rescind your subscription if we have not received subscriptions for 60,000 units within 120 days of the date the escrow agent receives your subscription proceeds. We must repeat this offer to you every 120 days after that during the period of this offering in Pennsylvania and Iowa until we have received and accepted subscriptions for 60,000 units.
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RISK FACTORS
Units of limited partner interest are inherently different from capital stock of a corporation, although many of the business risks to which we will be subject are similar to those that would be faced by a corporation engaged in a similar business. You should consider the following risk factors together with all of the other information included in this prospectus in evaluating the purchase of our units. If any of the following risks actually occurs, our business, financial condition or results of operations could be materially adversely affected. In that case, you may lose some or all of your investment.
We May Not Return All of Your Investment or Any Rate of Return on Your Investment
A
  substantial portion, and possibly all, of the cash distributions you receive
  from us will be a return of capital. The portion of your total distributions
  that is a return of capital and the portion that is investment income will depend
  on a number of factors in our operations and cannot be determined until all
  of our leases and secured loans have matured and terminated or been sold. At
  that time you will be able to compare the total amount of all cash distributions
  received by you to your total capital invested in us, and determine your investment
  income.
Our
  General Partner Will Manage Us and Our Business and May Make Decisions With
  Which You Do Not Agree
Our general partner will have all management authority over us and our business. Therefore, you should not purchase our units unless you are willing to entrust all aspects of our management to our general partner. See "– You Will Have Very Limited Voting Rights and Ability to Control Our Business," below.
Because We Do Not Know What the Composition of Our Investment Portfolio Will Be, You Cannot Evaluate Our Portfolio At the Time You Invest
We have not specifically identified the equipment we will lease or finance or the persons with whom we will enter into leases or secured loans. We will begin to develop our portfolio once we are ready to invest our funds. Our general partner, however, anticipates that our portfolio of equipment leases and secured loans will be similar to those of the previous equipment leasing funds sponsored by our general partner's affiliate, LEAF Financial, although a greater portion of our portfolio may be invested in secured loans, since LEAF Financial's first fund did not provide for investments in secured loans and its second fund imposed a cap of 20% on secured loans, compared to our 30% cap on secured loans. See "Appendix B – Prior Performance Tables."  For a description of the strategies we intend to apply in developing our portfolio, you should read the "Investment Objectives and
Strategies" section of this prospectus.
The composition of our investment portfolio will depend on national and local economic conditions and the markets for equipment and equipment leases at the time we acquire the equipment. As a result, you cannot evaluate the risks of, or potential returns from, our portfolio at the time you invest.
Higher Than Expected Equipment Lease and Secured Loan Defaults May Result in Losses
We expect that our average per unit cost will be between $50,000 and $100,000, and we intend to focus our leases and secured loans on the small to mid-size market, which may have greater risks of default than if we had a larger average per unit cost and focused on larger customers. For example, few small to mid-sized private businesses have audited financial statements, which increases the risk that the financial statements of those companies may be inaccurate or incomplete, or that our credit evaluations of our customers may not accurately reflect the risk of their potential defaults on our leases and secured loans. Although our general partner and its affiliates have developed credit evaluation systems designed to address this situation as discussed in more detail in the "Investment Objectives and Strategies" section of this prospectus, their systems may not identify all of the risks involved in
the financial statements submitted to us by potential lessees or borrowers. Higher than expected equipment lease or secured loan defaults will result in a loss of anticipated revenues. These losses may adversely affect our ability to make distributions to you and our other limited partners and, if the level of defaults is sufficiently large, may result in our inability to fully recover our investment.
While we will seek to repossess and re-lease or sell the equipment that is subject to a defaulted lease or secured loan, we may not be able to do so on advantageous terms. In some cases, the cost of repossessing the equipment subject to a defaulted lease or secured loan may make trying to recover the equipment impractical. Also, if a lessee or borrower under files for protection under the bankruptcy laws, then:
•
we may experience difficulties and delays in recovering the equipment from the defaulting party;
•
the equipment may be returned in poor condition; and
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•
we may be unable to enforce important contract provisions against the insolvent party, including the contract provisions that require the equipment to be returned to us in good condition.
In addition, we may suffer a loss or our ability to make distributions may be adversely affected by the high costs of:
•
enforcing a lessee's or borrower's contract obligations;
•
recovering equipment from the defaulting party;
•
transporting, storing, and repairing the equipment; and
•
finding a new lessee or purchaser for the equipment.
Also, if a lessee or borrower defaults on a lease or secured loan, respectively, that we acquired using borrowed funds or subsequently financed, which generally will be the case with respect to all of our leases and secured loans, the entire proceeds from the re-leased or sold equipment will typically first be applied to payment of the financing and only after full repayment to our creditor would we be entitled to any remaining proceeds. In these circumstances, we may lose some or all of our investment in the equipment.
If We Are Unable to Realize the Residual Value of Our Equipment, We May Incur Losses
We expect that approximately 25% to 35% of our lease portfolio will be "operating leases," under which the net present value of aggregate rental payments during the initial lease term generally is structured to result in our recovery of 80% to 85% of the purchase price of the equipment. Thus, our ability to recover the full purchase price of the equipment and our expected return in connection with an operating lease depends on the potential value of the equipment once the primary lease term expires. We call this the "residual value."  The residual value will depend on numerous factors beyond our control, including:
•
whether the original lessee wants to keep the equipment;
•
the cost of comparable new equipment;
•
the obsolescence or poor condition of the leased equipment; and
•
the existence of a secondary market for the type of used equipment.
For a description of the strategies we intend to use in realizing residual value, you should read the "Investment Objectives and Strategies – Leasing Strategies – Residual Realization – Maximizing Returns At the End of a Lease" section of this prospectus.
Using "Leverage" to Build Our Portfolio Subjects Us to the Risk That Our Revenues May Not Be Sufficient to Cover Our Operating Costs Plus Debt Service and, Consequently, May Result in Losses
We expect to "leverage" the acquisition costs of our equipment through borrowings, including securitization financing. For a description of the borrowing and securitization financing strategies we intend to use, you should read the "Investment Objectives and Strategies – Borrowing" section of this prospectus. We anticipate that our borrowings and securitization financings will be approximately 80% of the aggregate acquisition costs of our equipment. However, we are not limited as to the amount of debt or securitization financing that we may incur. As a result, the amount of our debt and securitization financing may be significantly more or less than 80%. The actual amount will depend on our general partner's assessment of the availability of funds on acceptable terms and on the composition of our investment portfolio.
While leverage can enhance our return on invested capital, if the return on investments we finance fails to cover the cost of the financings, or if the return is negative, our ability to make distributions to you and our other limited partners will be impaired and the value of our net assets will decline more rapidly than would be the case in the absence of leverage.
Our general partner anticipates that we will pledge most, if not all, of our portfolio as collateral for our financings. If we are unable to pay our debt service because of the failure of our lessees or borrowers to make timely payments, or due to other factors, we may lose the pledged collateral. Also, lenders or securitizers may require covenants that could restrict our flexibility in making business and financing decisions in the future, and in order to repay our financing, we may be required to dispose of our assets at a time we would otherwise not do so.
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Cost Reimbursements and Significant Fees We Will Pay to Our General Partner, and Reserves Our General Partner Will Establish, Will Reduce Our Cash Available for Distribution
Before making any distributions to you and our other limited partners, we will reimburse our general partner for expenses incurred by it on our behalf during the related period as described in the "Management Compensation" section of this prospectus. The amount of these expenses will be determined by our general partner subject to limitations set forth in our partnership agreement. In addition, our general partner and its affiliates, including Chadwick Securities, LEAF Funding and LEAF Financial, will provide services to us for which we will be charged substantial fees as described in "Management Compensation."
Some fees will be paid without regard to the amount of our cash distributions to you and our other limited partners, and regardless of the success or profitability of our operations. For example, after we receive our minimum required offering proceeds and begin operations our general partner and its affiliates will be entitled to certain fees and expense reimbursements as described in the "Management Compensation" section of this prospectus. Some of those fees and expense reimbursements will be required to be paid at the time of the initial closing in this offering or as we begin to acquire our portfolio, and we may pay other expenses, such as accounting and interest expenses, costs for supplies, etc., even though we have not yet begun to receive revenues from our leases and secured loans. This lag between the time when we must pay fees and expenses and the time when we begin to receive revenues may
result in losses to us during our early years, which our general partner believes is typical for a start-up company such as us in the equipment leasing business.
The compensation and fees of our general partner and its affiliates were established by our general partner and are not based on arm's-length negotiations. Approximately 21.29% of our offering proceeds will be used to pay organization, offering and equipment acquisition fees to our general partner and its affiliates, including sales commissions and certain other offering expenses paid to our general partner's affiliate, Chadwick Securities, a portion or all of which will be reallowed by Chadwick Securities to the selling dealers. Also, our general partner will determine the amount of cash reserves that we will maintain for future expenses, contingencies or investments. The reimbursement of expenses, payment of fees or creation of reserves could adversely affect our ability to make distributions to you and our other limited partners.
Your Ability to Dispose of Your Investment in Us Will Be Limited
We do not anticipate that a public market will develop for our units, and our partnership agreement imposes significant restrictions on your right to transfer your units. For a description of these restrictions you should read the "Summary of Our Partnership Agreement – Transfer of Units" section of this prospectus.
We have established these restrictions to comply with federal and state securities laws and so that we will not be considered to be a publicly traded partnership that is taxed as a corporation for federal income tax purposes. Thus, you probably will not be able to sell or otherwise liquidate your units in the event of an emergency and if you were able to arrange a sale, the price you would receive for your units would likely be at a substantial discount to the price you paid for your units. Also, your units probably will not be readily acceptable as collateral for loans.
You should invest in us only if you are prepared to hold your units for at least nine years, which is the period consisting of:
•
an offering period of up to two years;
•
an additional five-year reinvestment period; and
•
a subsequent liquidation period of approximately two years, during which our leases and secured loans will either mature and terminate or be sold and we will liquidate our other assets.
As a result, you should view your investment in us as illiquid and should not purchase our units unless you have no need for the funds you invest. You should also consider that our anticipated term as a partnership of nine years as described above could be more than nine years if we encounter unexpected difficulties in liquidating our investments.
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You Will Have Very Limited Voting Rights and Ability to Control Our Business
Unlike a holder of common stock in a corporation, as a limited partner you will have only limited voting rights on matters affecting our business. For example you will have no right to elect our general partner on an annual or other continuing basis. Instead, our general partner may be removed only on the vote of limited partners holding a majority of our outstanding units. In this regard, our general partner and its affiliates currently intend to purchase not less than 10,000 units ($1 million) and may purchase up to approximately 5% of the total units sold, if greater, as limited partners. These units will not be included in the minimum offering proceeds required for us to begin operations, but they will dilute your voting power. Under our partnership agreement, however, neither our general partner nor any of its affiliates may participate in any vote by the limited partners to remove our general partner as
general partner. For a description of the voting rights of you and our other limited partners, you should read the "Summary of Our Partnership Agreement – Meetings of Limited Partners" and "– Voting Rights of Limited Partners" sections of this prospectus.
Our General Partner May Be Subject To Various Conflicts of Interest Arising Out of Its Relationship to Us
We will not employ our own full-time officers, directors or employees. Instead, the officers, directors and employees of our general partner and its affiliates will supervise and control our business affairs, as well as the affairs of their other businesses. Therefore, they will devote to us and our business only the amount of time that they think is necessary to conduct our business.
Also, our partnership agreement does not prohibit our general partner or its affiliates from investing in or acquiring equipment, equipment leases and secured loans and they can engage in equipment acquisitions, financing, refinancing, leasing and releasing opportunities on their own behalf or on behalf of other partnerships. Our general partner could be confronted with decisions whereby it would have an economic incentive to place its interests above ours. Any conflicts in determining and allocating investments between us and our general partner, or between us and another program managed by our general partner or its affiliates, will be resolved by the investment committee of our general partner which will evaluate the suitability of all prospective lease acquisitions and financing transactions for investment by us. For a further discussion of conflicts of interest between our general partner and you and our
other limited partners, you should read the "Conflicts of Interest and Fiduciary Responsibilities – Conflicts of Interest" section of this prospectus.
Our General Partner May Have Difficulty Managing Its Growth, Which May Divert Its Resources and Limit Its Ability to Expand Its Operations Successfully
Although our general partner is a recently-formed entity, the amount of assets that its affiliates manage has grown substantially, and our general partner intends to continue to sponsor funds similar to us, which may be concurrent with us, and anticipates that it will experience growth in its assets under management. Our general partner's future success will depend on the ability of its officers and key employees to implement and improve its operational, financial and management controls, reporting systems and procedures, and manage a growing number of assets and investment funds. Our general partner, however, may not implement improvements to its management information and control systems in an efficient or timely manner and it may discover deficiencies in its existing systems and controls. Thus, our general partner's anticipated growth may place a strain on its administrative and operations
infrastructure, which could increase its costs and reduce its efficiency.
Our Lack of Operating History Decreases Your Ability to Evaluate Your Investment
Our general partner was formed in August 2006 and we were formed in September, 2006 by our general partner. As a new limited partnership, we have no prior operations which you can use to help evaluate the desirability of purchasing our units. Also, we cannot predict whether our intended operations will meet our stated investment objectives.
In addition, our general partner has no prior experience in managing funds such as us, although our general partner's management team and its affiliate, LEAF Financial, have that experience. However, Lease Equity Appreciation Fund I, L.P. and Lease Equity Appreciation Fund II, L.P., which are prior equipment leasing funds sponsored by LEAF Financial, an affiliate of our general partner, have been in existence for approximately 3.5 and 1.5 years, respectively. Thus, our general partner's affiliate has only a short history in managing funds similar to us for you to evaluate. See "Appendix B – Prior Performance Tables," to this prospectus. Although LEAF Financial previously sponsored eight public equipment leasing programs in the late 1980's and early 1990's when it had a different name and was under different ownership and management, we have not included any information
regarding those prior programs in this prospectus for the reasons set forth in the "Other Programs Managed by Our General Partner or Its Affiliates" section of this prospectus.
If We Do Not Generate Sufficient Cash, We Will Not Be Able to Pay Your 8% Annual Distributions or Reinvest a Portion of Our Revenues in Additional Leases During the Reinvestment Period
During the period ending five years after the completion of this offering, we have the right to reinvest our revenues above the amounts necessary to pay you 8% annual distributions on your adjusted capital contribution, if any, in additional equipment leases and secured loans. Under our partnership agreement your "adjusted capital contribution" at any given time is the purchase price of your units reduced by certain distributions made to you which are deemed to be a return of capital as described in the "Income, Losses and Distributions – Reinvestment of Our Revenues in Additional Leases and Secured Loans" section of this prospectus. However, for the reasons described in this "Risk Factors" section, you should not assume that we will be able to generate cash for reinvestment in additional equipment leases and secured loans or even that we will generate cash sufficient to pay
you all or any part of an 8% annual distribution.
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You
  May Not Receive Cash Distributions From This Investment In An Amount Sufficient
  to Return Your Investment or Provide a Return on Your Investment, and the Intended
  Cash Distributions May Be Reduced or Delayed
We cannot predict the amount of cash we will generate and, as a result, the amount of distributions we may pay you, if any. The actual amounts of cash we generate will depend on numerous factors relating to our business which may be beyond our control and may reduce or delay our cash distributions to you and our other limited partners, including:
•
the demand for the equipment leases and secured loans we provide;
•
our ability to obtain financings or leverage, including securitizations, to build our equipment portfolio;
•
required principal and interest payments on the debt we intend to incur;
•
profitability of our operations;
•
equipment lease and secured loan defaults;
•
prevailing economic conditions; and
•
government regulations.
If You Choose to Redeem Your Units You May Receive Much Less Than If You Kept Your Units
At any time after you have been admitted as one of our limited partners, you may request us to redeem some or all of your units. However, the redemption of your units is subject to the following:
•
we have no obligation to redeem any of your units;
•
we will not maintain a cash reserve for this purpose;
•
in any given year our total unit transfers, including redemptions of units by us, may not exceed 2% of our total capital or profits interests; and
•
the redemption price has been unilaterally set and is described in the "Redemption of Units" section of this prospectus.
If we do agree to redeem your units, the redemption price may provide you a much lower value than the value you would realize if you kept your shares for the duration of our term. Depending on when you request redemption, the redemption price may be less than the unreturned amount of your investment.
Our Success Will Be Subject to Risks Inherent in the Equipment Leasing Business, Any of Which May Affect Our Ability to Operate Profitably
A number of factors may affect our ability to operate profitably. These include:
•
changes in economic conditions, including fluctuations in demand for equipment, interest rates and inflation rates;
•
the quality of the equipment we acquire and lease or finance;
•
the continuing strength of the equipment manufacturers;
•
the timing of equipment purchases and our ability to forecast technological advances;
•
technological and economic obsolescence;
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•
our ability to obtain financings or leverage, including securitizations, to build our equipment portfolio;
•
defaults by lessees or borrowers; and
•
increases in our expenses, including labor, tax and insurance expenses.
Interest Rate Changes May Reduce the Value of Our Portfolio and Our Returns On It
Changes in interest rates will affect the market value of our portfolio. In general, the market value of an equipment lease or secured loan will change in inverse relation to an interest rate change when the equipment lease or secured loan has a fixed rate of return. Thus, in a period of rising interest rates, the market value of our equipment leases and secured loans will decrease. A decrease in the market value of our portfolio will adversely affect our ability to obtain financing against our portfolio or to liquidate it.
Interest rate changes will also affect the return we obtain on new equipment leases or secured loans. For example, during a period of declining rates, our gross revenues may be reduced because our reinvestment of rental and loan payments may be at lower rates than we obtained in prior equipment leases or secured loans, or the existing equipment leases or secured loans may be prepaid by the lessee or the borrower. Also, when we obtain financing (i.e., borrowings or securitizations) an increase in interest rates will not necessarily be reflected in increased rates of return on the equipment leases or secured loans funded through that debt, which would adversely affect our net return on the equipment leases and secured loans. Thus, interest rate changes may materially affect our revenues, which in turn may affect the amount we are able to distribute to you and our other limited partners. For a discussion of the
possible effects interest rate changes may have on us, you should read the "Management's Discussion and Analysis of Financial Condition" section of this prospectus.
Spreading the Risks of Equipment Leasing and Secured Loans By Diversifying Our Investments Will Be Reduced If We Raise Only the Minimum Offering Amount
We may begin operations if we sell a minimum of 20,000 units, excluding units subscribed for by Pennsylvania and Iowa residents and by our general partner and its affiliates. This will result in net proceeds to us, after organization and offering expenses, of approximately $1,730,000 as described in the "Use of Proceeds" section of this prospectus, which will reduce our ability to acquire a diversified portfolio.
Iowa and Pennsylvania investors
:  Because the minimum offering amount is less than 1,200,000 units ($12 million), you are cautioned to carefully evaluate our ability to fully accomplish our stated objectives and to inquire as to the current dollar volume of our subscriptions.
Competition From Other Equipment Lessors Could Delay Investment of Our Capital, Reduce the Creditworthiness of Potential Lessees or Borrowers to Which We Have Access, or Decrease Our Yields
The equipment leasing business is highly fragmented and competitive. We will compete with:
•
a large number of national, regional and local banks, savings banks, leasing companies and other financial institutions;
•
captive finance and leasing companies affiliated with major equipment manufacturers; and
•
other sources of equipment lease financing, including other publicly-offered partnerships.
Some of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than either we or our general partner and its affiliates will have, even if we sell the maximum number of units in this offering. Competition with these entities may:
•
delay investment of our capital;
•
reduce the creditworthiness of potential lessees or borrowers to which we have access; or
•
decrease our yields.
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For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. A lower cost of funds could enable a competitor to offer leases or secured loans at rates which are less than ours, potentially forcing us to lower our rates or lose potential lessees or borrowers.
Poor Economic Conditions May Adversely Affect Our Ability to Build Our Portfolio
A general economic slowdown in the United States during the first several years after we begin operations could adversely affect our ability to invest the proceeds of this offering as quickly as we would like to if businesses aggressively seek to reduce their costs. If this happens, our distributions to you and our other limited partners during the initial period of our operations may be less than if our offering proceeds were fully invested in accordance with our timetable. An economic slowdown might also reduce interest rates, which could reduce the returns we can obtain on our leases and secured loans and, as a consequence, the distributions we can make to you and our other limited partners.
An economic slowdown in the United States may:
•
reduce our income or our distributions;
•
increase the delinquencies or defaults on our leases and secured loans; and
•
reduce our ability to obtain financing or leverage, including securitizations, to build our equipment portfolio.
Resignation or Removal of Our General Partner, or Loss of Key Management Personnel of Our General Partner, Could Adversely Affect Our Ability to Conduct Our Business or Make Distributions
Our future success depends to a significant degree on the continued service of our general partner and its senior management team and, in particular, Mr. Crit DeMent, our general partner's chairman of its board of directors and chief executive officer. Although our general partner's affiliate, LEAF Financial, has entered into an employment agreement with Mr. DeMent, it does not have any current plans to execute employment agreements with any of its other officers or employees, and our general partner has not, and does not intend to, enter into any employment agreement with Mr. DeMent or any of its other officers or other employees. As a result, our general partner may be unable to retain employees or attract and retain new employees, either of which could materially and adversely affect our ability to conduct our business and make distributions to you and our other limited partners.
Neither we, our general partner, nor LEAF Financial maintain key man life insurance with respect to Mr. DeMent.
Our General Partner's Operating Systems Could Be Damaged or Disrupted By Events Beyond Its Control, Which Could Interfere With Our Ability to Conduct Our Business and Make Us Less Attractive to Customers as a Source of Equipment Leases and Secured Loans
Our ability to originate leases and secured loans, manage our operations and realize residual values from our equipment leases and secured loans depends on the operating systems of our general partner. In particular, this includes its computer and telecommunications and related equipment, and its ability to protect those systems against damage or disruptions from such contingencies as:
•
power loss;
•
telecommunications failure;
•
computer intrusions; and
•
viruses and similar adverse events.
Although our general partner will implement security and protective measures, our general partner's systems could still be vulnerable. Any damage or disruption to these systems could make us less attractive to customers as a source of equipment leases and secured loans.
Our Inability to Obtain Insurance For Certain Types of Losses Means We Must Bear the Cost of Any Losses From the Non-Insurable Risks
While our equipment leases and secured loans will generally require lessees or borrowers to have comprehensive insurance on the equipment under lease or financed and to assume the risk of loss, some losses may be either uninsurable or not economically feasible to insure, such as losses from war, earthquakes or terrorist acts. Furthermore, we can neither anticipate nor obtain insurance against all possible contingencies that may affect the equipment. If an event occurs for which we have no insurance, we could lose some or all of our investment in the affected equipment.
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Lack of Independent Counsel or Independent Underwriter May Reduce the Due Diligence Review of Us and Our General Partner
The legal counsel that represents our general partner and the dealer-manager, Chadwick Securities, also represents us. You and our other limited partners, as a group, have not been represented by separate legal counsel, and Chadwick Securities' due diligence examination of us and this offering cannot be considered to be independent. See the "Conflicts of Interest and Fiduciary Responsibilities – Conflicts of Interest" section of this prospectus.
You Could Be Liable For Our Obligations If You Participate in the Control of Our Business, and You May Be Required to Return Improperly Received Distributions
In general, limited partners are not liable for the obligations of a limited partnership unless they participate in the control of the limited partnership's business. What constitutes participating in the control of a limited partnership's business has not been clearly established in all states. If it were determined that any of the following rights, or the exercise of those rights by the limited partners as a group, constituted participation in the control of our business, then you could be held liable for our obligations to the same extent as a general partner:
•
the right to remove our general partner;
•
the right to approve some amendments to our partnership agreement; or
•
the right to take other specified actions under our partnership agreement.
This means that you could be held personally liable for our losses beyond the amount you paid for your units. In addition, you may be required to return to us any distribution you received from us if you knew at the time the distribution was made that it was improper because it rendered us insolvent. For a further discussion of your liabilities as a limited partner, you should read the "Summary of Our Partnership Agreement – Limited Liability of Limited Partners" section of this prospectus.
Your Ability to Begin an Action Against Our General Partner is Limited By Our Partnership Agreement
Our partnership agreement provides that neither our general partner nor any of its affiliates will have any liability to us for any loss we suffer arising out of any action or inaction of our general partner or an affiliate if the general partner or affiliate determined, in good faith, that the course of conduct was in our best interests and did not constitute negligence or misconduct. As a result of these provisions in our partnership agreement, your right to begin an action against our general partner may be more limited than it would be without these provisions. For a discussion of these provisions of our partnership agreement, you should read the "Conflicts of Interest and Fiduciary Responsibilities – Fiduciary Duty of Our General Partner" section of this prospectus.
If We Are, or Become, Subject to Usury Laws, It Could Result in Reduced Revenues or, Possibly, Loss on Our Investment
Equipment leases have sometimes been deemed to be loan transactions subject to state usury laws. These laws impose maximum interest rates that may be charged on loans as well as penalties for violation, including restitution of any excess interest received and declaring the debt to be unenforceable. We will seek to structure our equipment leases so that they will not be deemed to be loans and violate state usury laws. However, uncertainties in the application of some laws may result in inadvertent violations which could result in reduced investment returns or, possibly, loss on our investment in the affected equipment. Also, we may use up to 30% of our total funds available for investment at any given time to make secured loans to end users to finance their purchase of equipment. These loans will be subject to the same risks and uncertainties discussed above.
Participation With Third-Parties in Joint Ventures May Require Us to Pay Additional Costs or Incur Losses Because of Actions Taken By the Third-Parties
Our partnership agreement permits us to invest in joint ventures. Investing in joint ventures involves risks not present when directly investing in equipment to lease to end users. These risks include:
•
the possibility that our co-venturer may become bankrupt or otherwise fail to meet its financial obligations, thereby causing us to pay our co-venturer's share of the joint venture's debts, since each co-venturer generally must guarantee all of the joint venture's debts;
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•
our co-venturer may have business or economic objectives or interests that are inconsistent with ours and it may want to manage the joint venture in ways that do not maximize our return;
•
actions by a co-venturer might subject equipment leases owned by the joint venture to liabilities greater than those we contemplate; and
•
when more than one person owns property, there may be a stalemate on decisions, including decisions regarding a proposed sale or other transfer of the assets. Although our partnership agreement requires that any joint venture arrangement in which we participate must contain provisions permitting us to buy the assets from the other co-venturer in the case of a sale, we may not have the resources to do so.
You May Be Required to Pay Taxes on Income From Us, Even If You Do Not Receive Commensurate Cash Distributions From Us
You will be required to pay federal income taxes, and probably state and local income taxes, on your share of our taxable income, whether or not you receive cash distributions from us. For example, your share of our taxable income could exceed the amount of cash that we distribute to you if we repay the principal of any debt we incur with rental income or proceeds from the sale of one of our investments. This could happen because repaying the principal amount of a debt  reduces the amount of cash available for distribution to you and our other limited partners, but is not tax deductible. Thus, your cash distributions from us may not equal your share of our taxable income or even equal your tax liability resulting from that income. See the "Federal Income Tax Consequences – Flow Through of Taxable Income" section of this prospectus.
We Will Not Apply for an Advance Ruling from the IRS as to Any Federal Tax Consequence of an Investment in Us, and if the IRS Classifies Us as a Corporation You Will Lose Tax Benefits
We will not apply for an advance ruling from the IRS as to whether we will be treated as a partnership for federal tax purposes or with respect to any tax consequence to you of an investment in us. Instead, we intend to rely on the opinion of our special tax counsel. See the "Federal Income Tax Consequences – Special Counsel's Tax Opinion Letter" section of this prospectus. If the IRS were to successfully contend that we should be treated as a "publicly traded partnership," then we would be treated as a corporation for federal income tax purposes rather than a partnership. This would have the following principal consequences to you:
•
tax
          losses realized by us would not pass through to you;
•
instead
          of not paying any income tax as a partnership, we would be taxed at
          income tax rates applicable to corporations, which would reduce our
          cash distributions to you; and
•
our
          distributions to you would be taxable to you as dividend income to the
          extent of our current and accumulated earnings and profits.
To reduce the possibility that the IRS could successfully contend that our units are "publicly-traded," Section 13.2(c) of our partnership agreement places substantial restrictions on your ability to transfer your units. With respect to our tax status as a partnership, see the "Federal Income Tax Consequences – Partnership Classification" section of this prospectus.
We Could Lose Cost Recovery or Depreciation Deductions if the IRS Treats Our Operating Leases as Sales or Financings
We intend to claim cost recovery or depreciation deductions on the equipment subject to our operating leases, but not the equipment subject to our full payout leases or secured loans. In this regard, we anticipate that approximately 65% to 75% of our leases will be full payout leases and approximately 25% to 35% of our leases will be operating leases. In addition, up to 30% of our equipment at any given time may be financed for others under secured loans. If the IRS were to successfully contend that our operating leases were actually sales or financings rather than leases, we would not be entitled to cost recovery or depreciation deductions with respect to the equipment covered by those leases. See the "Investment Objectives and Strategies – Equipment for Lease to End Users" section of this prospectus. The IRS could also challenge our method of calculating our cost recovery or depreciation
deductions, or our other deductions, and the amount of our deductions could be reduced if we were audited. See the "Federal Income Tax Consequences – Tax Treatment of Leases," "– Depreciation," and "– Limitations on Interest Deductions" sections of this prospectus.
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You Need Passive Income in Order to Deduct Any Tax Losses We May Generate
Because
    our operations generally must be treated as passive activities by you and
    our other limited partners, your share of any tax losses we generate will
    be passive losses which you can use on your personal federal income tax returns
    only to offset passive income you receive from us or from other passive activities
    (other than publicly-traded partnerships) in which you invest, if any, in
    calculating your personal federal income tax liability. For example, you
    cannot use a passive loss from us to offset any "active" (i.e.,
    non-passive) income, such as your salary, on your personal federal income
    tax returns. Also, passive losses may not be used to offset "portfolio" income
    such as interest income on our secured loans or other nonpassive income you
    may receive from us or from other passive in which you invest, if any.
In
    addition, a portion of your share of our gross income might be treated
  for federal income tax purposes as portfolio income and gross income that is
    not from a pasive activity, which means that it cannot be offset by passive
    losses, instead of passive income. See
    the "Federal Income Tax Consequences – Passive Activity Limitations
    on Losses," and "– Tax Treatment of Leases" sections
    of this prospectus.
You Will Likely Be Subject to State and Local Taxes as a Result of Purchasing Our Units
You will likely be subject to state and local taxes imposed by the various jurisdictions in which we do business or own property. Initially, we will own assets and do business in Delaware, which currently imposes a personal income tax. It is your responsibility to file all of your personal federal, state and local tax returns. Our special tax counsel has not given any opinion on the state or local tax consequences of an investment in us. We urge you to seek advice based on your particular circumstances from an independent tax advisor with respect to the state and local tax consequences of purchasing our units. See the "Federal Income Tax Consequences – State and Local Taxation" section of this prospectus.
An IRS Audit of Our Annual Federal Information Tax Return May Result in Adjustments to, or an Audit of, Your Personal Income Tax Returns
We anticipate incurring tax losses during at least our early years due primarily to depreciation of equipment leased to others under our operating leases, operating expenses and the interest deductions related to the borrowings we intend to incur as described in the "Investment Objectives and Strategies – Borrowing," section of this prospectus. Also, we may be required to file disclosure reports with the IRS and its Office of Tax Shelter Analysis if the tax results of our intended activities cause us to be a "reportable transaction" under the Internal Revenue Code and the Treasury Regulations. Our anticipated tax losses and reportable transaction reports to the IRS, if any, would increase the risk of an IRS audit of our federal information income tax returns, which could result in an IRS audit of your personal federal income tax returns. Also, any adjustments to our returns required by
the IRS could require you to make corresponding adjustments on your personal federal income tax returns. In addition, an IRS audit of your personal federal income tax return could include an examination by the IRS of your returns for prior years, and could cover items unrelated to your investment in us. See the "Federal Income Tax Consequences – Interest and Penalties" section of this prospectus.
Your Investment In Us May Cause You to Pay Alternative Minimum Tax
You may have to pay alternative minimum tax as a result of your investment in us, because you will be allocated a share of our alternative minimum tax preference and adjustment items. For example, depreciation or cost recovery deductions of equipment subject to our operating leases are computed differently for regular federal income tax purposes than for purposes of the alternative minimum tax. This would increase your alternative minimum taxable income, as compared to your regular taxable income, during the early years of the applicable cost recovery or depreciation period of the equipment subject to our operating leases. See the "Federal Income Tax Consequences – Alternative Minimum Tax" section of this prospectus.
Your Tax Benefits from an Investment In Us Are Not Contractually Protected
You
  have no contractual protection against the possibility that a portion or all
  of the intended tax benefits of your investment in us will be disallowed by
  the IRS. No one provides any insurance, tax indemnity or similar agreement for
  the tax treatment of your investment in us. You have no right to rescind your
  investment in us, or to receive a refund of any of your investment in us, if
  a portion or all of the intended tax benefits of your investment in us are ultimately
  disallowed by the IRS or the courts. Also, none of the fees paid by us to our
  general partner, its affiliates or independent third-parties (including our
  special tax counsel) are refundable or contingent on whether the intended tax
  benefits of your investment in us are ultimately sustained if challenged by
  the IRS.
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Tax-Exempt
  Organizations Will Have Unrelated Business Taxable Income from an Investment
  in Us
Tax-exempt organizations are subject to tax on unrelated business taxable income ("UBTI"). Most of our net income, if any, in a given year will constitute UBTI. See the "Federal Income Tax Consequences – Federal Taxation of Employee Benefit Plans and Other Tax-Exempt Organizations" and "Investment by Qualified Plans" sections of this prospectus.
Foreign
  Investors In Us Will Be Subject to U.S. Tax Withholding and May Be Required
  to File U.S. Tax Returns
We generally will be required to withhold federal income tax at the highest applicable rate under the Internal Revenue Code on the income we allocate to units owned by foreign investors, whether or not any corresponding cash distributions are made to them. If too much tax is withheld, foreign investors will have to file U.S. income tax returns to seek a refund. See the "Federal Income Tax Consequences – Federal Tax Treatment of Foreign Investors" section of this prospectus.
Changes
  in the Law May Reduce the Tax Benefits of Investing in Us
The present federal income tax treatment of an investment in us may be modified by legislative, judicial or administrative action at any time and the changes may be retroactive. Any future revisions in federal income tax laws and their interpretations could reduce or eliminate the tax advantages to you of your investment in us. See the "Federal Income Tax Consequences – Changes in the Law" section of this prospectus.
FORWARD-LOOKING
  STATEMENTS AND ASSOCIATED RISKS
Certain statements included in this prospectus and its exhibits address activities, events or developments that we and our general partner anticipate, as of the date of this prospectus, will or may occur in the future. For example, the words "believes," "anticipates," and "expects" are intended to identify forward-looking statements. These forward-looking statements include such things as:
•
investment objectives;
•
references to future operating results and financial success;
•
business strategy;
•
estimated future capital expenditures;
•
competitive strengths and goals; and
•
other similar matters.
These statements are based on certain assumptions and analyses made by us and our general partner in light of our experience and our perception of historical trends, current conditions, and expected future developments. However, whether actual results will conform with these expectations is subject to a number of risks and uncertainties, many of which are beyond our control, including, but not limited to:
•
changes in economic conditions, including fluctuations in demand for equipment, interest rates and inflation rates;
•
the quality of the equipment we acquire and lease or finance;
•
the continuing strength of the equipment manufacturers;
•
the timing of equipment purchases and our ability to forecast technological advances;
•
technological and economic obsolescence;
•
defaults by lessees or borrowers; and
•
increases in our expenses, including labor, tax and insurance expenses.
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Thus, all of the forward-looking statements made in this prospectus and its exhibits are qualified by these cautionary statements. You are urged not to place undue reliance on these forward-looking statements, because actual results may differ materially from those anticipated by us and our general partner. For a more complete discussion of the risks and uncertainties to which we are subject, see the "Risk Factors" section of this prospectus.
USE
  OF PROCEEDS
The tables below set forth information about our expected use of the proceeds from this offering, assuming we pay the maximum compensation, fees and expense reimbursements permitted under our partnership agreement. Because we have not yet acquired any of our investments, we cannot precisely calculate some of the expenses referred to in the tables below, so the amounts may vary materially. We expect to use approximately 80% of our offering proceeds to acquire equipment to lease to, or finance for, end users, or to acquire equipment subject to existing leases or secured loans.
Minimum offering
of units
Fees and expenses
as a percent of
offering
proceeds (1)
Offering proceeds (2)(3)
$
2,000,000
100
%
Maximum offering expenses based on the amount of the offering proceeds shown in the table:
Sales commissions and related fees (4)(5)(6)
(140,000
)
7.00
%
Dealer-Manager fees (4)(5)(6)
(60,000
)
3.00
%
Reimbursement for accountable due diligence expenses (4)(5)(6)
(10,000
)
0.50
%
Total public offering expenses (4)(5)(6)
(210,000
)
10.50
%
Organization expenses (4)(5)(6)
(60,000
)
3.00
%
Net offering proceeds
1,730,000
86.50
%
Acquisition fees (2)
(155,818
)
7.79
%
Reserves (7)
(20,000
)
1.00
%
Total proceeds available for investment
$
1,554,182
77.71
%
Fees and expenses as a percentage of offering proceeds
21.29
%
THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK.
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Maximum offering
of units
Fees and expenses
as a percent of
offering
proceeds (1)
Offering proceeds (2)(3)
$
120,000,000
100
%
Maximum offering expenses based on the amount of the offering proceeds shown in the table:
Sales commissions and related fees (4)(5)(6)
(8,400,000
)
7.00
%
Dealer-Manager fees (4)(5)(6)
(3,600,000
)
3.00
%
Reimbursement for accountable due diligence expenses (4)(5)(6)
(600,000
)
0.50
%
Total public offering expenses (4)(5)(6)
(12,600,000
)
10.50
%
Organization expenses (4)(5)(6)
(3,600,000
)
3.00
%
Net offering proceeds
103,800,000
86.50
%
Acquisition fees (2)
(9,349,091
)
7.79
%
Reserves (7)
(1,200,000
)
1.00
%
Total proceeds available for investment
$
93,250,909
77.71
%
Fees and expenses as a percentage of offering proceeds
21.29
%
(1)
The percentages in this column were calculated by dividing the corresponding dollar amount in the first column by the amount of offering proceeds set forth in the table.
(2)
We will pay our general partner acquisition fees equal to 2% of the total purchase price of our equipment, including debt relating to the acquisition and out-of-pocket acquisition expenses incurred by our general partner. For example, we anticipate that we will borrow, on average, 80% of the cost of the equipment we acquire. Based on this assumption our total funds available for investment, less the reserves, acquisition fees and public offering and organization expenses shown in the tables above, will be approximately $1,554,182 if we receive the minimum subscription proceeds of $2 million, and approximately $93,250,909 if we receive the maximum subscription proceeds of $120 million. See the "Investment Objectives and Strategies – Borrowing" section of this prospectus. Our use of leverage, by increasing the amount we can invest in our equipment, also increases the
amount of acquisition fees we will pay to our general partner from our offering proceeds. In addition, we expect to acquire all of our leases and secured loans through LEAF Funding, an affiliate of our general partner, which will originate and hold the leases and secured loans on a temporary basis in order to facilitate their acquisition by us. The purchase price we pay LEAF Funding for our leases and secured loans will not exceed LEAF Funding's cost for acquiring and holding the leases and secured loans until we purchase them. Under United States general accepted accounting principles ("GAAP"), LEAF Funding's "cost" will include origination fees it pays to certain of its employees for their efforts in locating and facilitating the acquisition of the leases and secured loans by LEAF Funding on our behalf, in amounts typically ranging from 1% to 3% of LEAF Funding's cost for the leases and secured loans, that qualify as initial direct costs under
GAAP. Our use of leverage, by increasing the amount we can invest in equipment, also increases the amount of our general partner's acquisition fees and the amount of the purchase price we pay to LEAF Funding for our leases and secured loans as described above.
(3)
Excludes $1,000 contributed to us by our general partner at the time of our formation.
(4)
We will pay the selling dealers a sales commission of 7% per unit sold. However, we will not pay the 7% sales commissions with respect to units sold to our general partner, its officers, directors and affiliates, registered investment advisors or their clients, the dealer-manager, selling dealers and their registered representatives and principals and investors who buy units through the officers and directors of our general partner. Also, the reimbursement of the selling dealers' bona fide accountable due diligence expenses referred to in (5) below, will not be paid with respect to units sold to our general partner, its officers, directors or affiliates, or to investors who buy units through officers and directors of our general partner.
(5)
We will pay an amount equal to 3% of our offering proceeds to Chadwick Securities for acting as the dealer-­manager of a group of selling dealers that will be selected to sell our units. Out of the dealer-manager fee received by Chadwick Securities, it may pay the selling dealers up to 1% per unit as a marketing fee and use a portion or all of the remainder of the dealer-manager fee for other underwriting expenses, including permissible non-cash compensation, as described in the "Plan of Distribution" section of this prospectus. This permissible non-cash compensation may be deemed to be additional sales compensation to the selling dealers. Chadwick Securities also will receive reimbursement of the selling dealers' bona fide accountable due diligence expenses of up to .5% of our offering proceeds, all of which will be reallowed by it to the selling dealers.
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(6)
Our organization and offering expenses do not include sales commissions, dealer-manager fees, and reimbursements of bona fide accountable due diligence expenses of the selling dealers of up to .5% of our offering proceeds that Chadwick Securities will receive and reallow to the selling dealers as described in the "Plan of Distribution" section of this prospectus. Our organization and offering expenses, however, do include legal, accounting and escrow fees, printing costs, filing and qualification fees, overhead costs of our general partner in organizing us and preparing us for the offer and sale of our units and similar fees and expenses. To the extent that our actual organization and offering expenses exceed our general partner's 3% organization and offering expense allowance to pay for those expenses, the excess must be paid by our general partner
without any reimbursement from our offering proceeds.
(7)
Initially, we intend to establish reserves equal to approximately 1% of our offering proceeds for working capital purposes. The amount of our reserves may vary from time to time as our general partner determines the appropriate amount of reserves for our operations. The amount of reserves our general partner establishes will depend on its analysis of:
•
the timing and amount of lease and secured loan payments we receive;
•
our debt service payments on our borrowings and securitizations;
•
our costs and expenses and other existing liabilities;
•
our general partner's expectations regarding our potential future liabilities, if any; and
•
whether our general partner determines a reserve is needed for our future investment acquisitions.
MANAGEMENT COMPENSATION
The following table sets forth our estimate of the maximum amounts of all compensation and other payments that our general partner and its affiliates will receive, directly or indirectly, from us. This compensation was not determined by arm's-length negotiation. Our partnership agreement does not permit our general partner or its affiliates to receive more than the maximum fees or expenses stated for each type of compensation by reclassifying those items under a different category.
Offering Stage (1)
Entity receiving compensation
Type and method of compensation
Estimated amount
Chadwick Securities
Dealer-manager fee of 3% of the offering proceeds for acting as the dealer-manager for a group of selling broker dealers.
$60,000 if we sell the minimum offering amount; $3.6 million if we sell the maximum offering amount. From this amount, Chadwick Securities may pay the selling dealers up to 1% of the proceeds of each unit sold by them as a marketing fee and use a portion or all of the remaining dealer-manager fee for other underwriting expenses, including permissible non-cash compensation, as described in the "Plan of Distribution" section of this prospectus.
Chadwick Securities
Sales commissions of 7% of the proceeds of each unit sold by it.
Not determinable at this time. We do not anticipate that Chadwick Securities will sell a material number of units. If all units were sold by Chadwick Securities, it would receive $140,000 for the minimum offering amount and $8.4 million for the maximum offering amount.
Chadwick Securities
Bona fide accountable due diligence expenses.
This amount includes reimbursements paid to Chadwick Securities of up to .5% of our offering proceeds, all of which will be reallowed by it to the selling dealers for their bona fide accountable due diligence expenses.
General partner
and its affiliates
Organization and offering expense allowance of 3% of the offering proceeds.
$60,000 if we sell the minimum offering amount; $3.6 million if we sell the maximum offering amount.
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Operational Stage
Entity receiving compensation
Type and method of compensation
Estimated amount
General partner and its affiliates
Acquisition fee equal to 2% of the purchase price we pay to the seller for equipment we purchase to lease to third-parties, equal to 2% of the purchase price we pay to the seller for equipment subject to existing leases that we acquire, and equal to 2% of the purchase price we pay to the seller for equipment we purchase to finance for third-parties pursuant to our secured loans.
The purchase price of our equipment or existing leases on which our general partner's acquisition fees are based, include amounts attributable to debt or securitization financing we incur or assume in connection with the equipment, leases or secured loans. Our general partner will pay its out-of-pocket expenses related to its acquisition activities on our behalf, but not the acquisition expenses incurred by its affiliate, LEAF Funding, as discussed below, and our general partner will not be reimbursed by us for those expenditures other than through its receipt of these acquisition fees, although it will receive reimbursements for certain operating expenses we incur as described below. Notwithstanding, the acquisition expenses will be included in the purchase price of the equipment and leases, or the principal amount of the secured loans, on which our general
partner's 2% acquisition fee is based.
In addition, we expect to acquire all of our leases and secured loans through LEAF Funding, an affiliate of our general partner, which will originate and hold the leases and secured loans on a temporary basis in order to facilitate their acquisition by us. The purchase price we pay LEAF Funding for our leases and secured loans will not exceed LEAF Funding's cost for acquiring and holding the leases and secured loans until we purchase them. Under United States general accepted accounting principles ("GAAP"), LEAF Funding's "cost" will include origination fees it pays to certain of its employees for their efforts in locating and facilitating the acquisition of the leases and secured loans by LEAF Funding on our behalf, in amounts typically ranging from 1% to 3% of LEAF Funding's cost for the leases and secured loans, that qualify as
initial direct costs under GAAP. Our use of leverage, by increasing the amount we can invest in equipment, also increases the amount of our general partner's acquisition fees and the amount of the purchase price we pay to LEAF Funding for our leases and secured loans as described above. (2)
Total acquisition fees, assuming our anticipated use of financing of 80%, on average, of the cost of the equipment we acquire, would be approximately 7.8% of our offering proceeds. Thus, the total acquisition fees would be approximately $155,818 if we sell the minimum offering amount and $9,349,091 if we sell the maximum offering amount as set forth in the "Use of Proceeds" section of this prospectus.
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Operational Stage
Entity receiving compensation
Type and method of compensation
Estimated amount
General partner and its affiliates
Subordinated asset management fee for managing each type of investment described below equal to the lesser of the amount, for each type of lease or financing arrangement described below, that is reasonable, competitive, and would customarily be paid to non-affiliated third-parties rendering similar services in the same geographic location and for similar types of investments or:
•
for
          our operating leases managed by third-parties under our general partner's
          supervision – 1% of gross rental payments;
•
for
          our operating leases managed by our general partner or its affiliates
          – 4% of gross rental payments;
•
for
          our full payout leases which contain net lease provisions – 2%
          of gross rental payments; and/or
•
for
          our secured loans – 2% of gross principal and interest payments.
Not determinable at this time. During the period ending five years after this offering terminates, we will subordinate and defer payment of the management fees to the receipt by you and our other limited partners of annual cash distributions equal to 8% of your capital contributions, as adjusted by certain distributions made to you which are deemed to be a return of capital, on a cumulative basis as described in the "Income, Losses and Distributions – Reinvestment of Our Revenues in Additional Leases and Secured Loans" section of this prospectus.
General partner and its affiliates
Subordinated remarketing fee for arranging the sale of any investment equal to the lesser of:
•
3%
          of the contract sales price; or
•
one-half
          the competitive commission charged by independent third-parties for
          comparable services. (5)
Not determinable at this time. We will not accrue or pay a subordinated remarketing fee for any portion of sales proceeds which we reinvest. We will subordinate and defer payment of the remarketing fees to the receipt by you and our other limited partners of cash distributions equal to the purchase price of your units plus annual cash distributions equal to 8%, compounded daily, of your capital contributions, as adjusted by certain distributions made to you which are deemed to be a return of capital, on a cumulative basis as described in the "Income, Losses and Distributions – Reinvestment of Our Revenues in Additional Leases and Secured Loans" section of this prospectus.
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Operational Stage
Entity receiving compensation
Type and method of compensation
Estimated amount
General partner and its affiliates
Re-leasing fee for arranging the re-lease of equipment equal to the lesser of:
•
2%
          of gross rental payments derived from the re-lease; or
•
the
          competitive rate for comparable services for similar equipment. (5)
Not determinable at this time. Re-leasing fees are subject to the following limitations:
•
we
          will pay the re-leasing fees only if our general partner maintains adequate
          staff to provide re-leasing services;
•
we
          will pay re-leasing fees only as we receive the related lease payments;
•
we
          will not pay re-leasing fees if the re-lease is to the original lessee
          or its affiliates;
•
we
          will pay re-leasing fees only if our general partner has rendered substantial
          re-leasing services; and
•
we
          will pay re-leasing fees only if our general partner is compensated
          for rendering equipment management services, whether or not the asset
          management fee is then subordinated.
General partner and its affiliates
Partnership interest equal to 1% of all of our income, losses and cash distributions.
Not determinable at this time.
General partner and its affiliates
Reimbursement for our operating expenses paid on our behalf, including the actual cost of goods and materials obtained from unaffiliated third-parties, and also including reimbursement for our general partner's administrative services reasonably necessary or advisable in its discretion to our prudent operation (e.g. legal and accounting expenses), provided that the reimbursement may not exceed the lesser of:
•
the
          actual cost of the services; or
•
the
          amount we would be charged by independent third-parties for comparable
          services.
Also, there is no reimbursement for these services if they are already covered by a separate fee, and our general partner and its affiliates will not be reimbursed for the following expenses:
•
salaries,
          fringe benefits, travel expenses or other overhead costs incurred by
          any controlling person of our general partner or its affiliates (6);
          or
•
rent,
          depreciation, utilities, capital equipment or other similar overhead
          costs.
Not determinable at this time.
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Liquidation Stage
Entity receiving compensation
Type and method of compensation
Estimated amount
General partner and its affiliates
Our general partner's and its affiliates' compensation during the liquidation period generally is the same as set forth in "– Operational Stage," above, except that no fees or expense reimbursements associated with new investments will be paid since no revenues may be reinvested in purchases of additional equipment during the liquidation period. The liquidation period begins five years after the last closing date on which we admit subscribers for units as limited partners. It ends when all of our assets have been sold, our creditors have been paid, the remaining proceeds have been distributed to our partners and a certificate of termination has been filed.
See "– Operational Stage," above.
(1)
If you choose to use your cash distributions from your initial investment in us to purchase additional units during the offering period, or your cash distributions from your prior investments, if any, in LEAF I or LEAF II, which are the previous equipment leasing funds sponsored by LEAF Financial, an affiliate of our general partner then the units will be purchased at the public offering price and on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements, except for the discounted price for certain investors described in the "Plan of Distribution" section of this prospectus, and except that there is no minimum amount of units that must be purchased using distributions from LEAF I, LEAF II,
or both. Ohio residents, however, cannot elect to reinvest their distributions from us, LEAF I or LEAF II, in our units.
(2)
Acquisition fees include our general partner's out-of-pocket expenses in connection with our acquisition of equipment, leases and secured loans, but do not include fees to unaffiliated finders and brokers. Acquisition fees also do not include origination fees paid by LEAF Funding to certain of its employees in connection with their efforts in locating equipment, leases and secured loans and facilitating their acquisition on our behalf, that qualify under GAAP as initial direct costs and are included in LEAF Funding's cost to temporarily acquire the equipment, leases and secured loans we purchase from LEAF Funding. Our general partner will reduce or refund acquisition fees if our investment in equipment, including equipment leases and secured loans, is less than the greater of:
•
80% of the offering proceeds reduced by .0625% for each 1% of financing encumbering our investments; or
•
75% of the offering proceeds.
For example, if we had no financing, we would invest at least 80% of our offering proceeds in our investments. If we had 80% financing, we would invest at least 75% of our offering proceeds in our investments, computed as follows:
80% x .0625% = 5%
80% - 5% = 75%
(3)
An operating lease is one in which the aggregate noncancellable rental payments during the initial term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment. A full payout lease is one in which the gross rental payments, on a net present value basis, are at least sufficient to recover the purchase price of the equipment. Typically, rental payments under a full payout lease also include an appropriate return.
(4)
We will pay the asset management fee monthly, subject to its subordination. This fee is for our general partner's services in:
•
establishing our portfolio, including obtaining financing;
•
collecting lease revenues;
•
monitoring compliance by lessees with the lease terms;
•
assuring that equipment is being used in accordance with all contractual arrangements;
•
arranging for necessary maintenance and repair of equipment if a lessee fails to do so;
•
monitoring property, sales and use tax compliance; and
•
preparing operating and financial data reports.
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(5)
A "Competitive" commission is one which is reasonable, customary and competitive in light of the size, type and location of the equipment.
(6)
Our partnership agreement defines a "controlling person" of our general partner or any of its affiliates as its chairmen, directors, presidents, or other executive or senior officers, any holder of a 5% or greater interest in our general partner or any such affiliate or any person having the power to cause the direction of our general partner or any such affiliate, whether through ownership of voting securities, by contract or otherwise.
We estimate that the total amount of reimbursable operating expenses during our first full year of operations, assuming we sell the maximum number of units, may be between approximately $700,000 and $900,000. Lease Equity Appreciation Fund I, L.P. ("LEAF I"), which was initially sponsored by LEAF Asset Management, Inc., a wholly-owned subsidiary of our general partner that merged into LEAF Financial, an affiliate of our general partner, in June 2004, began operations March 3, 2003 and closed its offering of units on August 15, 2004, with offering proceeds of $17,060,774. As of June 30, 2006, see the table below, our general partner and its affiliates had received cumulative administrative expense reimbursements of $1,900,729 (unaudited) from LEAF I. Lease Equity Appreciation Fund II, L.P. ("LEAF II"), which was sponsored by LEAF Financial, an affiliate of our general partner, began
operations April 14, 2005 and had its final closing date on _______________, 2006. As of June 30, 2006, see the table below, our general partner and its affiliates had received cumulative administrative expense reimbursements of $630,719 (unaudited) from LEAF II. Also, see the "Other Programs Managed by Our General Partner or its Affiliates" section of this prospectus regarding the other programs sponsored by LEAF Financial before it was acquired by Resource America and new management installed.
The following is a tabular presentation of the administrative expenses reimbursed to LEAF Financial, as general partner, including reimbursements to LEAF Asset Management, Inc. before it was merged into LEAF Financial, and its affiliates by LEAF I and LEAF II as discussed above.
Summary of Administrative Expense Reimbursements of LEAF Financial's Prior Programs
as of June 30, 2006 (unaudited) (1)
Cumulative reimbursement of
administrative expenses to
general partner as of date of table
Program
2006
2005
2004
2003
Lease Equity Appreciation Fund I, L.P. (2) (3)
$268,953
$
554,611
$
482,180
$594,985
Lease Equity Appreciation Fund II, L.P. (2)(4)
$290,793
$
339,926
$
-0-
N/A
(1)
Our general partner, LEAF Asset Management, LLC, has not previously sponsored any equipment leasing funds. However, LEAF Financial, an affiliate of our general partner, has previously sponsored the two equipment leasing funds set forth in the table.
(2)
These expense reimbursements consist of labor expenses of employees of LEAF Financial and its affiliates for services related primarily to accounting, collections, and investor services, and are based on the employees' time records.
(3)
Lease Equity Appreciation Fund I, L.P. did not conduct any operations or reimburse any expenses to LEAF Financial, its general partner, in 2002, because it had not yet reached its minimum subscriptions.
(4)
Lease Equity Appreciation Fund II, L.P., which was formed in 2004, did not conduct any operations or reimburse any expenses to LEAF Financial, its general partner, in 2004, because it had not yet reached its minimum subscriptions.
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CONFLICTS OF INTEREST AND FIDUCIARY RESPONSIBILITIES
Conflicts of Interest
In General
Our general partner may be subject to various conflicts of interest arising out of its relationship to us. Because of our general partner's organizational and operational control over us, these conflicts will not be resolved through arms-length negotiations but, rather, through the exercise of our general partner's judgment consistent with its fiduciary responsibilities to you and us. Some provisions of our partnership agreement are designed to protect the interests of you and our other limited partners if conflicts arise. In this regard, you should read Article IX of our partnership agreement and, in particular, Sections 9.2 and 9.5. These sections do the following:
•
limit the actions our general partner may take on our behalf;
•
limit the compensation and fees we will pay our general partner and its affiliates; and
•
limit the expenses for which we will reimburse our general partner and its affiliates.
Further, our general partner depends on its indirect parent company, Resource America, for management and administrative functions and financing for capital expenditures. Neither our partnership agreement nor any other agreement requires Resource America to pursue a future business strategy that favors us. Resource America's directors and officers have a fiduciary duty to make decisions in the best interests of the stockholders of Resource America. Because our general partner is allowed to take into account the interests of parties other than us, such as Resource America, in resolving our conflicts of interest, our general partner's management, administrative and financial dependence on Resource America has the effect of limiting its fiduciary duty to us.
However, our partnership agreement does not necessarily directly respond to each potential conflict, and there will be no established mechanism to resolve these conflicts. In these situations, our general partner will rely solely on its judgment, subject to its fiduciary duties, to resolve the conflict. The potential conflicts include those set forth below.
Our General Partner's Compensation is Not the Result of Arm's Length Negotiation
Our general partner has unilaterally determined the compensation that we will pay it and its affiliates, including Chadwick Securities, LEAF Funding and LEAF Financial. However, our general partner believes that the amount of compensation is consistent with practices in the industry and applicable offering guidelines in effect on the date of this prospectus.
Actions Taken By Our General Partner Will Affect the Amount of Cash Available For Distribution to Limited Partners and Our General Partner's Compensation
The amount of cash we have available for distribution to you and our other limited partners will be affected by decisions of our general partner regarding various matters, including:
•
the amount and timing of equipment purchases and sales;
•
cash expenditures;
•
financing; and
•
the creation, reduction or increase of reserves.
We intend to increase the amount of equipment we can acquire and lease by obtaining financing to provide approximately 80% of the aggregate cost of all of the equipment we acquire. The actual amount of borrowings we incur, however, may be higher or lower than that amount. In addition, using financing to increase the amount of equipment we acquire will also increase our general partner's acquisition and management fees, which are directly based on the total amount of our assets, and the purchase price of the equipment, leases and secured loans we purchase from LEAF Funding at its cost, which includes the origination fees it pays to certain of its employees that qualify as initial direct costs of LEAF Funding under GAAP. See the "Management Compensation" section of this prospectus.
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Our general partner will be liable for our obligations to the extent that they exceed our assets. As a result, our general partner has the right to cause us to establish and maintain cash reserves that it believes are necessary to meet our obligations. Because our general partner may be exposed to liability to our creditors if our reserves are insufficient to pay our contingent liabilities, our general partner may have a conflict of interest in allocating our cash flow between distributions to you and our other limited partners or to our reserve accounts. To the extent that our general partner increases the amount of cash it allocates to reserves, the amount of cash available for distributions to you and our other limited partners will decrease and our general partner's exposure to our contingent liabilities may be lessened.
Our General Partner and Its Affiliates Will Engage in Activities That Compete With Us
Our partnership agreement does not prohibit our general partner or its affiliates from investing in, acquiring or leasing equipment, and they will continue to engage in acquisitions, financing, refinancing, leasing and re-leasing opportunities on their own behalf or on behalf of other partnerships or entities. Neither our general partner nor its affiliates may, however, publicly offer for sale interests in more than one equipment leasing program simultaneously unless the programs:
•
have different investment objectives; or
•
are specified equipment programs, as defined under relevant securities regulations or guidelines.
Our general partner and its affiliates have the right to take for their own accounts, or to recommend to any program they manage, any particular investment opportunity, subject to the limitations set forth in our partnership agreement.
Any conflicts in determining and allocating investments between us and our general partner, or between us and another program managed by our general partner or its affiliates, will be resolved by our general partner's investment committee, which also will serve as LEAF Financial's investment committee as discussed in the "Management – Investment Committee" section of this prospectus. Generally, if an investment is appropriate for more than one program our general partner and its investment committee will allocate the investment to a program (which includes us) after taking into consideration at least the following factors:
•
which program has been seeking investments for the longest period of time;
•
whether the program has the cash required for the investment;
•
whether the amount of debt to be incurred with respect to the investment is acceptable for the program;
•
the effect the investment would have on the program's cash flow;
•
whether the investment would further diversify, or unduly concentrate, the program's investments in a particular lessee, class or type of equipment, location, industry, etc.; and
•
whether the term of the investment is within the term of the program.
Notwithstanding the foregoing, our general partner and its investment committee may make exceptions to these general policies when, in our general partner's judgment, other circumstances make application of these policies inequitable or uneconomic.
We May Enter Into Joint Ventures With Affiliated Programs
We may invest in joint ventures with other programs that are sponsored by our general partner or its affiliates. These investments may result in conflicts of interest resulting from the differing financial positions of the co-venturers. For example, it may be in the interest of one entity to sell jointly-held equipment while it may be in the interest of the other entity to continue holding the equipment. However, we will not participate in a joint venture unless:
•
we and the other program have similar investment objectives;
•
we and the other program invest on substantially the same terms;
•
there are no duplicate fees;
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•
our general partner's compensation in us and the other program is substantially the same;
•
we have the right of first refusal to buy any investment the other program wants to sell; and
•
the joint venture is entered into either for the purpose of effecting appropriate diversification for us and the other program, or for the purpose of relieving our general partner or its affiliates from a commitment entered into for the purposes of:
•
facilitating our acquisition of equipment or equipment leases or secured loans;
•
borrowing money or otherwise obtaining financing for us; or
•
any other lawful purpose related to our business.
Notwithstanding, there may be an impasse on joint venture decisions since neither we nor the other program will have complete control over the joint venture's equipment and, although we will have the right to buy the equipment from the other joint venturer in the event of a sale, we may not have the resources do so.
We Do Not Have Any Employees and Rely on the Employees of Our General Partner and Its Affiliates
We do not have any officers or employees and will rely solely on the officers and employees of our general partner and its affiliates to manage us and our business. Our general partner and its affiliates will conduct business activities of their own in which we will have no economic interest. The officers and employees of our general partner and its affiliates who provide services to us are not required to work full time on our affairs and will devote significant time to the affairs of our general partner and its affiliates and will be compensated by our general partner and its affiliates for those services. There may be significant conflicts between us and our general partner and its affiliates regarding the availability of these officers and employees to provide services to us.
We Must Reimburse Our General Partner and Its Affiliates for Expenses
We must reimburse our general partner and its affiliates for costs incurred by them in managing and operating us, including specified costs incurred by them in providing corporate staff and support services properly allocable to us. See the "Management Compensation" section of this prospectus.
We Have Not Retained Separate Counsel or Other Professionals
The legal counsel that represents our general partner and the dealer-manager, Chadwick Securities, also represents us. You and our other limited partners, as a group, have not been represented by legal counsel. Counsel has not acted on behalf of you and other prospective investors in us, nor has counsel conducted a review or investigation of us, our general partner or this offering on your behalf. Therefore, none of the agreements and arrangements between us and our general partner, including our partnership agreement, or between us and our general partner's affiliates, including Chadwick Securities, LEAF Funding and LEAF Financial, was negotiated on an arm's length basis.
The attorneys, accountants and other experts who perform services for us will also perform services for our general partner, its affiliates and for other partnerships or ventures that our general partner or its affiliates may sponsor. However, should a dispute arise between us and our general partner, we will retain separate legal counsel to represent us in the matter.
Lack of Independent Underwriter and Due Diligence Investigation in This Offering
The dealer-manager for this offering is Chadwick Securities, an affiliate of our general partner. Although Chadwick Securities will receive a reimbursement of up to .5% of our offering proceeds for the bona fide accountable due diligence expenses of the selling dealers, all of which it will reallow to the selling dealers, its review and due diligence investigation of us and the information provided in this prospectus cannot be deemed to be independent.
Conflicts Regarding Redemption of Units
You and our other investors may present your units to us for redemption at any time. This creates the following conflicts of interest between you and our general partner.
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•
We have no obligation to redeem your units at any time for any reason. Our general partner may decline your redemption request in its sole discretion. For example, if our general partner determines that we do not have the necessary cash flow, taking into account future distributions to our other partners and foreseeable investments, reinvestments, and operating expenses, your request may be declined. In addition, our general partner may conclude that the redemption might cause our total unit transfers in the year to exceed 2% of our total capital or profits interests, which is not permitted under our partnership agreement. See Appendix A to this prospectus. All of these determinations are subjective and will be made in our general partner's sole discretion.
•
Our general partner will also determine the redemption price based on provisions set forth in our partnership agreement. To the extent the formula for arriving at the redemption price has any subjective determinations, they will fall within the discretion of our general partner.
See the "Redemption of Units" section of this prospectus.
Our General Partner Also is Our Tax Matters Partner
Our general partner will serve as our tax matters partner and represent us before the IRS and all other taxing authorities. As tax matters partner, our general partner will have broad authority to act on behalf of you and our other investors in any administrative or judicial proceeding involving the IRS, and this authority may involve conflicts of interest. For example, a potential conflict would include whether to contest or settle a proposed adjustment by the IRS to the amount of our depreciation deductions under our operating leases, which are allocated 99% to you and our other investors. While our general partner will take into account the interests of you and our other investors as a whole, there is no assurance that any settlement would be in the best interest of you or any other particular investor given your or his particular tax situation.
Our General Partner and Its Affiliates Will Purchase Units as Investors
Our general partner and its affiliates currently intend to purchase not less than 10,000 units ($1 million) and may acquire up to approximately 5% of the total units sold in this offering, if greater. These subscriptions will not be included in the minimum number of units required for us to begin operations, but the price of their units will be reduced by 7% as described in the "Plan of Distribution" section of this prospectus. Thus, even though they pay a reduced price for their units, these investors generally will:
•
share in our income, losses and distributions on the same basis as you and our other investors as described in the "Income, Losses and Distributions" section of this prospectus; and
•
have the same voting rights, except that they are prohibited from voting on the removal of our general partner as general partner.
The purchase of units by our general partner, its officers, directors, or other affiliates as limited partners will dilute the voting rights of you and our other investors and there may be a conflict with respect to certain matters. See the "Summary of Our Partnership Agreement – Voting Rights of Limited Partners" section of this prospectus.
General Restrictions
To reduce, but not eliminate, certain conflicts of interest we will not:
•
issue any units after this offering terminates or issue units in exchange for property;
•
make loans to our general partner or its affiliates;
•
receive loans from our general partner or its affiliates unless the loan has a term of 12 months or less from the date on which it was made and any interest or other financing charges or fees we pay do not exceed the lower of the following:
•
if our general partner borrowed to make the loan, the rate of interest and other amounts paid or payable by our general partner or its affiliate in connection with the borrowing; or
•
if our general partner did not borrow to make the loan, the rate of interest and other amounts paid or payable in an arm's-length borrowing that we could obtain, without reference to our general partner's or its affiliate's financial abilities or guarantees;
•
invest in or underwrite the securities of other partnership programs;
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•
operate in a manner that would cause us to be classified as an "investment company" for purposes of the Investment Company Act of 1940;
•
grant our general partner or any of its affiliates exclusive listing rights to sell our investments or other assets;
•
except as described in this prospectus, permit our general partner or any of its affiliates to receive a fee or commission in connection with the reinvestment of our cash from sales or operations, or the resale, re-lease, exchange or refinancing of equipment, except as permitted by our partnership agreement and as described in this prospectus;
•
grant our general partner or any of its affiliates any rebates or give-ups or participate in any reciprocal business arrangements with them that would circumvent the restrictions in our partnership agreement, including the restrictions applicable to transactions with affiliates of our general partner;
•
permit our general partner, directly or indirectly, to pay or award any commissions or other compensation to any person engaged by a potential investor for investment advice as an inducement to the advisor to advise the purchaser of our units; but this does not prohibit the normal sales commissions payable to the selling dealers as described in the "Plan of Distribution" section of this prospectus;
•
purchase or lease any equipment from, or sell or lease equipment to, our general partner or its affiliates or any investment program in which they have an interest. However, if the conditions set forth below are met, we expect that we will acquire all of our equipment, leases and secured loans from LEAF Funding, an affiliate of our general partner, and that LEAF Funding will first acquire the equipment on a temporary or interim basis in order to facilitate our acquisition of the equipment or our financing needs. The conditions referred to above are the following:
•
our general partner or its affiliate, including LEAF Funding, holds the equipment only on an interim basis, generally not longer than six months, for purposes of facilitating the acquisition of the equipment by us, borrowing money or obtaining financing for us or for other purposes related to our business;
•
our general partner determines that the acquisition of the equipment is in our best interest;
•
we acquire the equipment at a price no greater than the cost to our general partner or its affiliates, as determined under GAAP and as adjusted for intervening operations, plus compensation permitted under our partnership agreement and described in this prospectus;
•
there is no difference in interest terms of any financing secured by the equipment at the time acquired by our general partner or its affiliates and the time acquired by us; and
•
our general partner or its affiliates do not benefit from the transaction apart from compensation permitted under our partnership agreement and described in this prospectus. See the "– We May Enter Into Joint Ventures With Affiliated Programs," above, and the "Investment Objectives and Strategies – Origination and Servicing Agreement" section of this prospectus.
Also, except as permitted under the Origination and Servicing Agreement and our partnership agreement, our general partner may not enter into any agreements, contracts or arrangements on our behalf with itself or any of its affiliates.
Fiduciary Duty of Our General Partner
Our general partner is accountable to us as a fiduciary. Under Delaware law, this generally means that our general partner has duties of due care and fair dealing in acting for us and handling our affairs. Our partnership agreement does not excuse our general partner from liability or provide it with any defenses for breach of its fiduciary duty. However, our partnership agreement does permit our general partner and its affiliates to have business interests or activities that may conflict with ours, and includes provisions to resolve conflicts in allocating investment opportunities among us and other programs that may be sponsored by our general partner and its affiliates.
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The fiduciary duty owed by a general partner is analogous to the
  fiduciary duty owed by directors to a corporation and its stockholders and is
  subject to the same rule, commonly referred to as the "business judgment
  rule." Under this rule, directors are not liable for mistakes made in the
  good faith exercise of honest business judgment or for losses incurred in the
  good faith performance of their duties when performed with such care as an ordinarily
  prudent person would use. Under the terms of our partnership agreement our general
  partner and its affiliates have limited their liability to us and to you and
  our other investors for any loss suffered by us or by you and our other investors
  that arises out of any action or inaction on their part if:
•
they determined in good faith that the course of conduct was in our best interest;
•
they were acting on behalf of, or performing services for, us; and
•
their course of conduct did not constitute negligence or misconduct.
In addition, as permitted by Delaware law, we will indemnify our general partner and its affiliates against any loss of the kind described in the preceding sentence to the extent of our own assets, but without any additional obligation on the part of you and our other limited partners. However, we will not indemnify our general partner or its affiliates for any violation, or alleged violation, of federal or state securities laws unless:
•
there has been a judgment on the merits in favor of our general partner and its affiliates or the claims were dismissed on the merits by the court;
•
the court has been advised by us of the position of the SEC and applicable state securities law authorities on the issue of indemnification for securities law violations; and
•
the court approves the indemnification of litigation and/or settlement costs.
The effect of the foregoing provisions may be to limit your recourse to our general partner. However, you should be aware that, in the SEC's opinion, the indemnification for liabilities under the Securities Act of 1933, as amended, is contrary to public policy and therefore unenforceable.
The Delaware Revised Uniform Limited Partnership Act provides that a limited partner may institute legal action (a "derivative" action) on a partnership's behalf to recover damages from a third-party when the general partner refuses to institute the action or where an effort to cause the general partner to do so is not likely to succeed. In addition, the statutory or case law may permit a limited partner to institute legal action on behalf of himself and all other similarly situated limited partners (a "class action") to recover damages from a general partner for violations of its fiduciary duties to the limited partners. In addition, we will not incur the cost of that portion of any insurance that insures any party against any liability the indemnification of which is prohibited under our partnership agreement; provided, however, that with respect to public liability insurance
obtained by us in connection with any of our equipment, equipment leases, secured loans or business operations, our general partner is permitted to add itself as an additional insured thereunder so long as, and to the extent that, our general partner pays for the incremental premium costs resulting from its being added as an additional insured. For this purpose, "public liability insurance" includes insurance that would cover damage to property or personal injury to non-affiliated persons incurred during the performance of services related to us and our operations.
MANAGEMENT
Our General Partner.
Our general partner is LEAF Asset Management, LLC, a Delaware limited liability company with offices at 1818 Market Street, 9
th
Floor, Philadelphia, Pennsylvania 19103. Our general partner was formed in August 2006 to act as the general partner and manager of equipment leasing and financing partnerships, and its executive officers and directors will be responsible for selecting, managing and disposing of our equipment, leases and secured loans. In this regard, after we receive the minimum offering proceeds and hold our initial closing, we intend to enter into the Origination and Servicing Agreement under which LEAF Funding, a wholly-owned subsidiary of LEAF Financial and an affiliate of our general partner, will originate leases and secured loans for us and LEAF Financial, an affiliate of our general partner, will service our
portfolio of leases and secured loans. LEAF Financial has more than 100 individuals, including LEAF Funding's field sales force and telephone sales force that are dedicated to originating leasing assets. LEAF Financial also uses a complete technology platform that enables automated lease applications, credit scoring, customer relationship management, asset tracking, collection management, and document generation. See the "Investment Objectives and Strategies" section of this prospectus for a more detailed discussion of the services LEAF Financial and LEAF Funding will provide to us.
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In
  addition, our general partner depends on its indirect parent company, Resource
  America, for management and administrative functions and financing for capital
  expenditures. Resource America is a publicly-traded specialized asset management
  company (Nasdaq: REXI) that uses industry-specific expertise to generate and
  administer investment opportunities for its own account and for outside investors
  in the structured finance, equipment leasing and financing and real estate sectors.
Equipment Finance
Real Estate
Structured Financial Products
As of the date of this prospectus, the officers and directors of our general partner are as follows:
Name
Age
Position
Crit
          S. DeMent
54
Chairman
          of the Board of Directors and Chief Executive Officer
Miles
          Herman
46
President,
          Chief Operating Officer and Director
Jonathan
          Z. Cohen
36
Director
Steven
          J. Kessler
62
Director
Robert
          K. Moskovitz
49
Chief
          Financial Officer and Treasurer
David
          H. English
55
Executive
          Vice President and Chief Investment Officer
Daniel
          G. Courtney
43
Senior
          Vice President – Investment Programs
Darshan
          V. Patel
36
General
          Counsel and Secretary
With respect to the biographical information set forth below:
•
the approximate amount of an individual's professional time devoted to the business and affairs of our general partner, LEAF Financial and LEAF Funding have been aggregated, because there is no reasonable method for them to distinguish their activities among the companies; and
•
for those individuals who also hold senior positions with other affiliates of our general partner, if it is stated that they devote approximately 100% of their professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding, it is because either the other affiliates are not currently active, or the individuals are not required to devote a material amount of their professional time to those affiliates, or there is no reasonable method to distinguish their activities between their professional time devoted to the business and affairs of our general partner, LEAF Financial and LEAF Funding, on the one hand, and their professional time devoted to the business and affairs of our general partner's other affiliates, such as, for example, another affiliated investment program or Chadwick Securities.
Crit S. DeMent
has been Chairman of the Board of Directors and Chief Executive Officer of LEAF Asset Management since it was formed in August 2006. Mr. DeMent also serves as Chairman of the Board of Directors and Chief Executive Officer of LEAF Financial since November 2001, Chairman of the Board of Directors of LEAF Funding since March 2003, a Senior Vice President of Resource America since 2005 and Senior Vice President – Equipment Leasing of Resource Capital Corp. since March 2005. Before that, he was President of Fidelity Leasing, Inc. and its successor, the Technology Finance Group of Citi-Capital Vendor Finance from 1998 to 2001. Mr. DeMent was Vice President of Marketing for Tokai Financial Services from 1987 through 1996. Mr. DeMent expects to devote approximately 75% of his professional time to the business and affairs of our general partner, LEAF
Financial and LEAF Funding.
Miles Herman
has been President, Chief Operating Officer and a Director of LEAF Asset Management since it was formed in August 2006. Mr. Herman also serves as President, Chief Operating Officer and a Director of LEAF Financial since January 2002, and Senior Vice President and a Director of LEAF Funding since January 2004. Mr. Herman held various senior operational offices with Fidelity Leasing, Inc. and its successor from 1998 to 2001, ending as Senior Vice President. From 1990 to 1998, he held various operational, marketing, program management, business development and sales positions with Tokai Financial, most recently as Director as Capital Markets. Before that, he served as Vice President, Operations and Sales at LSI Leasing Services, Inc. from 1989 to 1990, and as a manager of operations at Master Lease Corporation from 1984 to 1989. Mr. Herman expects to devote
approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.
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Jonathan Z. Cohen
has been a Director of LEAF Asset Management since it was formed in August 2006. Mr. Cohen also serves, or has served, in the following positions with Resource America: President since 2003, Chief Executive Officer since 2004, a Director since 2002, Chief Operating Officer from 2002 to 2004, Executive Vice President from 2001 to 2003, and Senior Vice President from 1999 to 2001. In addition, Mr. Cohen serves as Vice Chairman of the Managing Board of Atlas Pipeline Partners GP, LLC since its formation in 1999, Vice Chairman and a Director of Atlas America, Inc. since its formation in 2000, Trustee and Secretary of RAIT Investment Trust (a publicly-traded real estate investment trust) since 1997, Vice Chairman of RAIT since 2003, and Chairman of the Board of The Richardson
Company (a sales consulting company) since 1999.
Steven J. Kessler
has been a director of LEAF Asset Management since it was formed in August 2006. Mr. Kessler also serves, or has served, in the following positions with Resource America: Executive Vice President since 2005, Chief Financial Officer since 1997, and Senior Vice President from 1997 to 2005. Before joining Resource America, Mr. Kessler was Vice President-Finance and Acquisitions at Kravco Company (a national shopping center developer and operator) from 1994 to 1997. From 1983 to 1993, Mr. Kessler worked for Strouse Greenberg & Co., a regional full service real estate company, ending as Chief Financial Officer and Chief Operating Officer. Prior to 1993, Mr. Kessler was a Partner at Touche Ross & Co. (now Deloitte & Touche LLP), independent public accountants. Mr. Kessler also serves as Trustee of GMH Communities Trust (a
publicly-traded specialty housing real estate investment trust) since 2004.
Robert K. Moskovitz
has been Chief Financial Officer, Chief Accounting Officer and Treasurer of LEAF Asset Management since it was formed in August 2006. Mr. Moskovitz also serves as Chief Financial Officer and Chief Accounting Officer of LEAF Financial since February 2004, and Treasurer of LEAF Financial since September 2004, and Chief Financial Officer of LEAF Funding since May 2004. He has over twenty years of experience as the Chief Financial Officer of both publicly and privately owned companies. From 2002 to 2004, Mr. Moskovitz was an independent consultant on performance management initiatives, primarily to the financial services industry. From 2001 to 2002 he was Executive Vice President and Chief Financial Officer of ImpactRx, Inc., which provides advanced sales and marketing intelligence to pharmaceutical companies. From 1999 to 2001, he was the Chief Financial
Officer of Breakthrough Commerce LLC, a holding company that provided seed capital and management to technology start-ups. From 1983 to 1997 Mr. Moskovitz held senior financial positions with several high growth public and privately held companies. He began his professional career with Deloitte & Touche (formerly Touche Ross & Co). Mr. Moskovitz is a Certified Public Accountant and holds a B.S. degree in Business Administration from Drexel University. Mr. Moskovitz expects to devote approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.
David H. English
has been Executive Vice President and Chief Investment Officer of LEAF Asset Management since it was formed in August 2006. Mr. English also serves as Executive Vice President of LEAF Financial since April 2003 and President and a Director of LEAF Funding since May 2003. From 1996 until joining LEAF Financial, Mr. English was the Senior Vice President-Risk Management for Citi-Capital Vendor Finance's Technology Finance Group, and its predecessor, Fidelity Leasing, Inc., where he held a similar position. From 1991 to 1996 Mr. English held various credit and operational management positions with Tokai Financial Services, Inc., including Director of Credit for the small ticket leasing division. Mr. English served in credit management positions with the Commercial Finance Division of General Electric Capital Corporation from 1990 to 1991 and with
Equitable Life Leasing Corporation from 1985 through 1990. Mr. English began his career with Household Finance Corporation in 1974. Mr. English is a 1975 graduate of the University of Pittsburgh with a B.S. degree in Mathematics. Mr. English expects to devote approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.
Daniel G. Courtney
has been Senior Vice President, Investment Programs of LEAF Asset Management since it was formed in August 2006, and serves as Senior Vice President, Investment Programs of LEAF Financial since October 2005. Mr. Courtney also is, or will be registered with Chadwick Securities, an affiliate of our general partner and the dealer-manager of this offering. Mr. Courtney was Senior Vice President with ATEL Capital Group, a San Francisco-based sponsor of leasing limited partnerships from October 2003 to October 2005. From April 2000 to October 2003 Mr. Courtney was Vice President of Marketing and Business Development for BridgeSpan, Inc., which provided technology and financial services to banks and insurance companies. From 1984 to 2000 Mr. Courtney served in various sales and marketing management roles for various fund sponsors of real estate and
equipment leasing programs and as a registered representative with Stifel Nicolaus & Company in St. Louis. Mr. Courtney is a General Securities Principal and holds various NASD securities licenses. Mr. Courtney received a B.S. degree in Business Administration from Southeast Missouri State University. Mr. Courtney expects to devote
approximately 100% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.
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Darshan V. Patel
has been General Counsel and Secretary of LEAF Asset Management since it was formed in August 2006. Mr. Patel also serves as President of Chadwick Securities, the dealer-manager of this offering and an affiliate of our general partner, as General Counsel and Secretary of LEAF Financial since August 2001 and as Secretary of LEAF Funding since March 2003. In addition, Mr. Patel serves as Associate General Counsel of Resource America, a position he has held since 2001. From 1998 to 2001, Mr. Patel was associated with the law firm of Berman, Paley, Goldstein & Kannry, New York, NY. From 1996 to 1998, Mr. Patel was associated with the law firm of Glynn & Associates, Flemington, NJ. Mr. Patel expects to devote approximately 25% of his professional time to the business and affairs of our general partner, LEAF Financial and LEAF Funding.
LEAF Financial Corporation
As of the date of this prospectus, the officers and directors of LEAF Financial are as follows:
Name
Age
Position
Crit
          S. DeMent
54
Chairman
          of the Board of Directors and Chief Executive Officer
Miles
          Herman
46
President,
          Chief Operating Officer and Director
Jonathan
          Z. Cohen
36
Director
Alan
          D. Schreiber, M.D.
63
Director
Linda
          Richardson
59
Director
David
          H. English
55
Executive
          Vice President
Darshan
          V. Patel
36
General
          Counsel and Secretary
Nicholas
          Capparelli
47
Senior
          Vice President – Sales
Robert
          K. Moskovitz
49
Chief
          Financial Officer and Treasurer
Sherryl
          B. Hughes
56
Vice
          President – Municipal Markets
Daniel
          G. Courtney
43
Senior
          Vice President – Investment Programs
Frank
          J. Monzo
48
Vice
          President of Portfolio Administration
James
          Grant
45
Vice
          President of Portfolio Servicing Operations
Gregory
          Kalescky
44
Vice
          President of Credit – Healthcare
See "– Our General Partner," above, for biographical information on certain of these individuals who are also officers of our general partner. Biographical information on the other officers is set forth below. Biographical information on the other directors will be provided by our general partner on request.
Nicholas Capparelli
has been Senior Vice President of LEAF Financial since January 2002. Before joining LEAF Financial, Mr. Capparelli had been, since 1998, a Senior Vice President for Fidelity Leasing and its successor, responsible for sales and training. From 1995 to August 2000, Fidelity Leasing was a subsidiary of Resource America. Mr. Capparelli also served as the general manager of JLA Leasing Corporation, an equipment lessor, following its acquisition by Fidelity Leasing in 1999. From 1995 to 1998, Mr. Capparelli was Vice President for Sales and Operations of SoftMark, a national reseller of computer products, and from 1982 to 1995 he was at Tokai Financial Services, ending as Vice President of Sales.
James Grant
has been Vice President of Portfolio Servicing Operations of LEAF Financial since February 2006. Prior to joining LEAF Financial, Mr. Grant was employed as Assistant Vice President at Financial Federal Credit, Inc. from April 2001 to February 2006. Before that, he was employed in senior level management capacities at several commercial finance institutions including Financial Federal Credit Inc., CNH Capital Corporation, Rockford Industries/American Express Business Finance Corporation, SEQUA Capital Corporation and Credit Alliance/Leasing Service Corporation.
Gregory Kalescky
has been Vice President of Credit – Healthcare of LEAF Financial since April 2006. Prior to joining LEAF Financial, Mr. Kalescky was employed as a First Vice President with MBNA Practice Solutions, a healthcare financial services institution, from October 2003 until March 2006. Prior to MBNA, Mr. Kalescky held Director of Credit positions at several companies including De Lage Landed, GE Capital – Trans Leasing, and Siemens Medical Systems. Mr. Kalescky holds a B.A. degree in Economics from Columbia University.
Frank J. Monzo
has been Vice President of Portfolio Administration of LEAF Financial since November 2005. Mr. Monzo was Vice President of Finance for ExcellaDerm Corporation, a medical device manufacturer based in Rancho Santa Margarita, California, from October 2001 to October 2005. For 20 years prior to joining ExcellaDerm, Mr. Monzo held a variety of positions in the commercial finance industry, most recently as Vice President and Portfolio Manager for Finova Capital Corporation's Corporate Finance division. Mr. Monzo holds a B.S. degree in Business Administration from LaSalle College.
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Sherryl B. Hughes
has been Vice President – Municipal Markets of LEAF Financial since January 2006. Ms. Hughes previously served LEAF Financial as Vice President – Credit from June 2002 to December 2005. From 1999 to 2002, Ms. Hughes was a Vice President of Credit/Operations for Court Square Leasing Corporation. From 1997 to 1999 she was the Director of Credit and Portfolio Management at American Business Leasing, Inc. Ms. Hughes was the Corporate Credit Manager for Master Lease Corporation from 1983 until it was acquired by Tokai Bank. Following the acquisition, she held various managerial positions in Credit and Operations with Tokai Financial Services, Inc., until 1997.
Investment Committee.
Our general partner and its affiliate, LEAF Financial, have agreed that LEAF Financial's investment committee also will serve as our general partner's investment committee. The current members of LEAF Financial's and our general partner's investment committee are the following:
(1)
Mr. Crit S. DeMent;
(2)
Mr. Miles Herman;
(3)
Mr. David H. English; and
(4)
Ms. Sheryl B. Hughes.
See "– Our General Partner," above, for biographical information on Crit S. DeMent, Miles Herman and David H. English. See "– LEAF Financial Corporation," above, for biographical information on Ms. Hughes.
See the "Investment Objectives and Strategies" section of this prospectus for various discussion of the services the investment committee will provide on behalf of us and our general partner.
Code of Business Conduct and Ethics.
Because we do not directly employ any persons, we rely on a Code of Business Conduct and Ethics adopted by Resource America that applies to the principal executive officer, principal financial officer and principal accounting officer of our general partner, as well as to persons performing services for us generally. You may request a copy of this code of ethics from our general partner at LEAF Asset Management, LLC, 1818 Market Street, 9
th
Floor, Philadelphia, Pennsylvania 19103.
Organizational Diagram (1)
This organizational diagram does not include all of the subsidiaries of Resource America.
(1)
After
          we receive our minimum offering proceeds and begin operations we will
          enter into an Origination and Servicing Agreement with LEAF Financial,
          an affiliate of our general partner, acting as a third-party servicer
          of our leases and secured loans, and LEAF Funding, another affiliate
          of our general partner, acting as a third-party originator of our leases
          and secured loans. See the "Investment Objectives and Strategies
          – Origination and Servicing Agreement" section of this prospectus.
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Compensation.
We do not pay the officers or directors of our general partner or the officers
  and directors of its affiliates any compensation. However, we will pay our general
  partner and its affiliates fees and reimburse certain of their expenses incurred
  on our behalf as described in the "Management Compensation" section
  of this prospectus. These expense reimbursements include reimbursing our general
  partner and its affiliates for certain costs incurred on our behalf, including
  the cost of personnel, other than controlling persons of our general partner,
  who will perform administration, accounting, secretarial, transfer and other
  services required by us. These individuals also will perform similar services
  for our general partner and its affiliates and other investment programs, including
  LEAF Financial's two prior equipment leasing programs, as well as investment
  programs to be formed in the future by our general partner or its affiliates.
  Our partnership agreement provides that expense reimbursements paid by us to
  our general partner or its affiliates must be limited to the lesser of their:
•
actual cost; or
•
the cost of comparable services from third-parties.
We expect that we will allocate the cost of employee and officer compensation and benefits, excluding those allocable to controlling persons of our general partner, based on the amount of their business time spent on our business.
Security Ownership of Certain Beneficial Owners.
Resource America owns 100% of the common stock of Resource Asset Management, Inc., which owns 100% of our general partner, LEAF Asset Management, LLC, as its sole member and equity owner.
Change in Partnership Management.
Our general partner may withdraw as general partner, or be removed as general partner by our limited partners, under the circumstances described in the "Summary of Our Partnership Agreement – Withdrawal or Removal of Our General Partner" section of this prospectus.
Affiliated Company.
Chadwick Securities, the dealer-manager for this offering, is a Pennsylvania corporation and an indirect wholly-owned subsidiary of Resource America. It is registered as a broker-dealer with the SEC and is a member of the NASD and the Securities Investor Protection Corporation.
OTHER PROGRAMS MANAGED BY OUR
GENERAL PARTNER OR ITS AFFILIATES
Lease Equity Appreciation Fund I, L.P. ("LEAF I") was initially sponsored by LEAF Asset Management, Inc. beginning in 2002. In June 2004, LEAF Asset Management, which was a wholly-owned subsidiary of LEAF Financial Corporation, was merged into LEAF Financial. Currently, LEAF Financial serves as the general partner of LEAF I, which had its final closing on August 15, 2004, with total offering proceeds of $17,056,225 from 436 investors, and as the general partner of Lease Equity Appreciation Fund II, L.P. ("LEAF II"), which was sponsored by LEAF Financial and had its final closing on _______________, 2006, with total offering proceeds of $_____________ from ___ investors.
Set forth below for both LEAF I and LEAF II are charts of their respective equipment portfolios broken out by equipment type and by business type as of June 30, 2006. These allocations will vary from time to time in each of those programs. The most recent breakouts of these programs can be found in their most recent Form 10-K or Form 10-Q filings with the SEC as discussed below. The charts below combine operating leases and full payout leases and notes for summary purposes.
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Further information concerning LEAF I and LEAF II and their respective results of operations can be found in Appendix B to this prospectus. You also may obtain each program's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q from the SEC by following the procedures described in the "Where You Can Find More Information" section of this prospectus, or you may request the Form 10-K or Form 10-Q from LEAF Financial Corporation, 1818 Market Street, 9
th
Floor, Philadelphia, Pennsylvania 19103.
In
  addition, before LEAF Financial was acquired by Resource America, it had sponsored
  eight public equipment leasing programs between 1984 and 1990, which were known
  as the Fidelity Income Funds. Following LEAF Financial's acquisition by
  Resource America, and under new management installed by Resource America, all
  eight of those programs have now been liquidated. We have not provided any
  information
  concerning those prior programs in Appendix B to this prospectus, because
  we believe that those prior program are not comparable to us for the following
  reasons:
•
the change in LEAF Financial's management after Resource America acquired the company;
•
the prior programs engaged in the direct lease of computer and computer peripheral equipment to large corporations;
•
the prior programs did not use leverage; and
•
the prior programs began between 1984 and 1990 when markets, leasing strategies, interest rates, equipment, etc. were much different from what they are now.
Unlike those prior programs, we anticipate that our asset base will encompass a broader range of equipment and we will use vendor and other third-party marketing channels rather than direct leasing. Also, we will focus on the small to mid-size business market, instead of large corporations, and we anticipate using extensive leverage to finance a substantial portion of our investment portfolio. You may request additional information concerning its previous liquidated programs from LEAF Financial Corporation, 1818 Market Street, 9
th
Floor, Philadelphia, Pennsylvania 19103.
INVESTMENT
  OBJECTIVES AND STRATEGIES
Principal
  Investment Objectives
Our
  principal objectives are to invest in a diversified portfolio of equipment for
  lease to end users, or to acquire equipment subject to existing leases, or on
  a limited basis to finance the purchase of equipment by end users, in order
  to:
•
preserve, protect and return your invested capital;
•
generate regular cash distributions to you during the period beginning on our initial closing date and ending five years after this offering terminates (the "reinvestment period");
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•
during the reinvestment period, enter into or purchase equipment leases and secured loans using our net offering proceeds from this offering, and borrow funds to increase diversification of our portfolio, and reinvesting our revenues after paying our expenses, establishing appropriate reserves and making certain distributions to you and our other investors; and
•
provide additional cash distributions to you after the end of the reinvestment period until all of our equipment leases and secured loans have either matured and terminated or been sold (the "liquidation period").
We sometimes refer to the process of marketing, selecting and acquiring equipment for lease to end users, equipment already subject to leases or funding loans secured by equipment as the "origination" of the investment. We have not identified or originated any investments as of the date of this prospectus.
We intend to structure each of our equipment investments at a price that we determine will provide a present value return to us, including the estimated residual value of the equipment in the case of an operating lease, which may or may not be fully realized by us as discussed below under "– Leasing Strategies – Residual Realization – Maximizing Returns At the End of a Lease," that will achieve our investment objectives as described above, including the return of our invested capital and an appropriate return on our investment. In structuring our equipment investments, we will take into account our operating expenses, including the costs of using leverage to increase our portfolio diversification. See the "Risk Factors – Using "Leverage" to Build Our Portfolio Subjects Us to the Risk That Our Revenues May Not Be Sufficient to Cover Our Operating Costs Plus Debt
Service and, Consequently, May Result in Losses" section of this prospectus. However, we may not be successful in achieving our investment objectives. See the "Risk Factors" section of this prospectus.
We will make distributions to you and our other limited partners only if we have cash available after paying our obligations, including paying administrative expenses, fees and debt service and making allowance for necessary reserves. We expect to begin distributions in the month following the first full month of operations after we obtain the minimum offering proceeds and hold the initial closing in this offering. We also expect that, during the early years of our operations our distributions to you and our other limited partners will be substantially tax-deferred. However, we cannot assure you of the following:
•
that our distributions to you and our other limited partners will be in any specific amount; or
•
when our distributions to you and our other limited partners will be made.
Equipment
  for Lease to End Users
We will purchase equipment for lease to end users. The cost per unit of the equipment we purchase for lease generally ranges from $20,000 to $2 million, and we expect the average per unit cost to be between $50,000 and $100,000. Due to this average per unit cost, we anticipate spreading the risk of lessee default over a large number of different end users.
We will enter into operating leases and full payout leases.
•
Operating Leases  are leases  under which the aggregate noncancellable rental payments during the original term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment leased under the lease.
•
Full payout leases are leases in which the rent over the term of the lease will return our invested capital plus an appropriate return without consideration of the residual, and where the lessee may acquire the equipment at the end of the lease term for a nominal amount.
We expect that approximately 65% to 75% of our leases will be full payout leases, with the remainder being operating leases. However, we are not limited as to type of leases we may enter into and, as a result, either operating leases or full payout leases possibly could constitute most of our portfolio.
Also,
  we may use up to 30% of our total funds available for investment at any given
  time to finance the end user's purchase of the equipment by providing a
  secured loan. A secured loan allows the end user to purchase the equipment and
  pay the purchase price over a period of time with the equipment and, if we determine
  prudent or necessary, other assets such as the borrower's accounts receivable
  or personal guarantee, serving as collateral for the
repayment
  of the loan. Our secured loans may be made to the same types of customers and
  cover the same types of equipment as our loans. For example, we may provide
  practice acquisition financing for dentists through our secured loans. This
  type of financing would be comprehensive as to the type of property financed
  through it in order to enable a new dentist to acquire all of the equipment
  and other tangible personal property he needs to set up a new practice, such
  as specialized dental equipment, furniture, filing cabinets, a telephone system,
  a copier, computers, software, etc. This type of secured loan also could be
  used by an established dentist to upgrade or expand his practice in the same
  manner as described above. These types of secured loans generally would be collateralized
  by the borrower's accounts receivable and his personal guarantee, in addition
  to the equipment and furniture covered by the financing.
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In addition, we attempt to structure our secured loans so that, in an economic sense, there is no difference to us between a secured loan and a full payout lease. For example, all customers who receive secured loans from us must meet the same underwriting criteria as the customers that lease equipment from us. See "– Leasing Strategies – Underwriting – Obtaining the Right Kind of Business," below. Before funding any secured loan, we will review the equipment that the end user proposes to purchase to ensure that we agree with the end user that the equipment has a fair market value equal to or greater than the proposed principal amount of the secured loan requested from us by the end user to acquire that equipment. Also, if our general partner, in its discretion, deems it advisable based on the above, we will either:
•
reject the secured loan;
•
reduce the principal amount of the secured loan; or
•
require the end user to provide us additional collateral for the loan such as a guarantee, a pledge of the end user's receivables, etc.
Equipment
  Already Subject to Lease
We also may acquire portfolios of equipment subject to existing leases or secured loans from third-parties. We anticipate that at the end of this offering, acquired equipment subject to existing leases or secured loans probably will not exceed 40% of our investments. While the per unit cost range and average per unit cost for the equipment will depend on the portfolios we may identify for acquisition, we anticipate that these costs may be less, and possibly materially less, than the cost of equipment for leases we originate.
Types
  of Equipment
We expect that we will focus on equipment to lease or finance that is essential for businesses to conduct their operations so that the end users will be highly motivated to make the required monthly payments in order to keep the equipment in place. We will particularly focus on business-essential equipment in the following areas:
•
computers, including related software and hardware such as printers;
•
medical and dental practice equipment for diagnostic and treatment use;
•
industrial equipment, including manufacturing, material handling and electronic diagnostic systems;
•
general office equipment, such as office machinery, furniture and telephone systems;
•
energy and climate control systems; and
•
light construction equipment, including small lift trucks and earth moving equipment.
We are not limited in the amount we may invest in any particular equipment category. The amount we invest in any one category will depend on the entities to which we lease or finance equipment and their equipment needs, neither of which can be accurately predicted by us as of the date of this prospectus. We anticipate, however, that we will lease a wide variety of equipment to a wide variety of end users who will be engaged in a wide variety of industries and be located in a wide variety of geographic locations. Within these categories, the equipment we lease or finance will generally meet the following criteria:
•
standard production designs, rather than designs conforming to customer specifications;
•
stable secondary market pricing history;
•
not subject to rapid obsolescence due to technology changes; and
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•
principally new equipment we purchase from manufacturers or vendors, although we may also purchase used or reconditioned equipment if the equipment is then owned by the entity which will be the lessee or if a particular lessee specifically wants to lease used equipment.
Equipment we purchase from third-parties subject to existing leases or secured loans will typically already be in use by the lessee or borrower at the time we acquire the equipment.
Market
Equipment leasing is a commercial financing product that provides businesses with an alternative source of cash to acquire equipment that is essential to their operations. Businesses may choose leasing over other financing options because of the following:
•
the preservation of working capital;
•
increased cash flow;
•
tax benefits; and
•
the opportunity and flexibility to protect against technical obsolescence.
According to the Equipment Leasing Association's website on September 13, 2006, see the address below, 80% of all U.S. businesses lease all or some of their equipment. The following figures from the Equipment Leasing Association represent the total amount of business investment in computers and equipment in the last five years and the amount of that total that is leased.
Year
Business
          Investment
in Equipment
(Billions)
Equipment
Leasing Volume
(Billions)
Percentage
          of
Leased Equipment
(Percent)
2001
697
216
31.0%
2002
645
206
31.9%
2003
670
194
29.0%
2004
722
199
27.6%
2005*
791
213
26.9%
*      Estimates
Source: Equipment Leasing Association's 2003 State of the Industry Report, updated as of November 11, 2005 on its website:
www.elaonline.com/research/overview.cfm
.
We group domestic lease providers into the four major categories set forth below.
•
Banks
–
companies that are either majority owned by, or affiliated with, a bank.
•
Industrial
–
companies that are majority owned by an industrial or non-financial services parent company.
•
Independent
–
public or privately owned and operated finance companies that offer leases directly to businesses and are not affiliated with any particular manufacturer or dealer.
•
Captive
–
companies that are primarily engaged in supporting the financing or leasing of a parent company's products.
We will seek to provide our lease financing to the small to mid-size business market, generally businesses with:
•
500 or fewer employees;
•
$1 billion or less in total assets; or
•
$100 million or less in total annual sales.
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We believe that this market niche is one whose equipment financing needs are not met in an organized fashion by traditional banks, commercial lenders or other financial services companies. We believe that many of these lenders are hindered in dealing with this market because:
•
their overhead costs, regulatory structure, marketing efforts, operating systems or size make originating and processing relatively small transactions impractical;
•
credit decisions using the standard financial analysis techniques employed by these lenders are impractical, if not unworkable, since few small to mid-sized private businesses have audited financial statements, and few traditional lenders have developed commercial credit scoring systems or risk rating tools that deal with the behavioral predictors and credit capacity evaluation necessary for informed lending to small and mid-size private businesses; and
•
traditional commercial lenders often lack expertise for collateral evaluations on small and mid-size private business assets.
Thus, we believe that this market is only sporadically served by local, regional and national providers, with each confined to its own niche, product or locale.
Leasing
  Strategies
We believe the key factors in establishing and maintaining our lease portfolio are as follows:
•
Origination – leasing at the right rate and cost.
We expect that LEAF Funding, an affiliate of our general partner, will originate all of our equipment leases and secured loans. See "– Origination and Servicing Agreement," below. LEAF Funding's strategy for originating our leases and secured loans will involve marketing to direct sales organizations that will offer our leases as part of their equipment marketing package. By developing and maintaining these programs, LEAF Funding will be able to use the sales forces of these organizations, and those of their distributors, dealers and resellers, to market our leasing products and services to the highly dispersed population of small to mid-sized businesses. We anticipate that LEAF Funding's programs will allow us to provide equipment financing to businesses without
the need for us, our general partner or LEAF Funding to maintain a large field sales force and thus provide us with cost-efficient marketing.
•
Underwriting – obtaining the right kind of business.
We anticipate that LEAF Financial, an affiliate of our general partner, will service all of our equipment leases and secured loans. See "– Origination and Servicing Agreement," below. LEAF Financial, an affiliate of our general partner, has developed credit evaluation systems designed to address the inability of most small to mid-sized businesses to provide audited financial statements. Key elements of LEAF Financial's systems include:
•
automatic extraction of credit information from online data bases;
•
credit scoring for smaller transactions; and
•
credit analyst review only of larger transactions and transactions where credit scoring does not provide a clear acceptance or rejection.
LEAF Financial's credit scoring systems, which were developed for it in part by Fair Isaac Corporation, operate by assigning point values to various factors such as business longevity, type of business, payment history, bank account balances, lawsuits, judgments, liens and credit ratings. Fair Isaac (NYSE: FIC) is a leading provider of credit management solutions and is the developer of the well known and widely used FICO® scores, the standard measure of credit risk for consumer lending by banks, credit card issuers, insurers and retailers. The credit scoring system uses data obtained from Dun & Bradstreet, Experian, Equifax and TransUnion. The system weighs these point values based on their correlation to default predictiveness, and then adds them to arrive at a credit score for the applicant. The system either grants or declines approval, or refers the application to a credit
analyst, based on thresholds established from statistical correlations between scores and payment performance using industry and other data. Our general partner expects to make approximately 70% of our credit decisions, measured by number of applications, through credit scoring.
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LEAF
        Financial, however, generally will use traditional financial analysis
        in the event we underwrite transactions of more than $100,000. Also, to
        measure our actual loss performance versus what we anticipate, LEAF Financial
        will use a cumulative loss curve that indicates when, during the lifecycle
        of a pool of leases, the losses may occur. The cumulative loss timing
        curve was developed from an analysis of diversified lease and loan pools
        representing tens of thousands of leases and loans to small and medium
        size businesses. Because lease transactions are not all originated at
        the same time or in the same amount, the loss curve is weighted by amount
        originated and averaged by the duration of transactions.
•
Residual
        realization – maximizing returns at the end of a lease.
Our
        general partner does not generally take aggressive residual positions,
        and the equipment types that we target generally will not warrant a large
        residual position. We anticipate that approximately 25% to 35% of our
        leases will be operating leases under which the rental payments we receive
        will return approximately 80% to 85% of the purchase price we paid for
        the equipment. Thus, based on the past experience of its senior management
        team, our general partner believes that both the number of our leases
        and their estimated residual values which might entail aggressive residual
        positions will not be material based on our total equipment investments.
        We plan to realize residual income on our operating leases using the following
        four methods:
•
Automatic billing extension – Our lease documentation will require the lessee to provide 60 days notice before lease termination in order to arrange for disposition of the equipment. If the lessee does not provide this notice, then we will automatically bill the lessee on a month-to-month basis.
•
Re-leasing to lessee – We anticipate that a significant amount of our equipment will be re-leased to the current lessee at the end of the initial lease term.
•
Sold in place to lessee – We anticipate that we will sell the majority of our equipment in place to the original lessee at the end of its lease, re-lease or automatic billing extension period.
•
Resale market – We expect to sell equipment that is not sold in place to the lessee at the end of its lease, re-leased or automatic billing extension period either to the original vendor or to a variety of used equipment dealers.
We
        believe successful realization of residuals at the end of a lease term
        depends on an accurate residual value assessment at the beginning. LEAF
        Financial, as servicer of our leases, will make residual value assessments
        on our behalf using information from a number of sources, including:
•
secondary market publications;
•
interviews with manufacturers and used equipment dealers;
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•
auction sales guides;
•
historical sales data;
•
industry organizations;
•
valuation companies; and
•
the prior experience of our general partner's management as to propensity to re-lease or be sold in place.
Based
        on its analysis of this information, LEAF Financial will establish a residual
        value for the end of each lease term for each type of equipment. As a
        result, the residual value will equal the depreciated book value at the
        end of a lease term. However, as to any particular piece of equipment,
        LEAF Financial may not be able to re-lease or sell the equipment on our
        behalf at the end of the equipment's lease term at a rate or price
        that will provide us the residual value LEAF Financial estimated on that
        equipment.
•
Collections
        – assuring portfolio performance.
LEAF Financial's
        collection department will be supported by an automated collection tracking
        system that accesses all account-related information stored on its main
        computers. The tracking system will:
•
prioritize and queue delinquent accounts by age and dollar amount;
•
permit collectors to record all correspondence and discussions with lessees and borrowers; and
•
generate management reports which will allow us to assess the quality and quantity of collections by individual service representatives, supervisory units and the collection department as a whole.
LEAF
        Financial's collections policy is designed to identify payment problems
        early enough to permit it to address delinquencies in our leases or secured
        loans quickly and, when necessary, to act on our behalf to preserve our
        interest in the equipment.
•
Systems
        automation – controlling costs and providing enhanced service with
        automated solutions.
LEAF Financial will use five
        functionally integrated systems that will provide fully automated, low
        cost processing of our leases and secured loans:
•
a management system that allows LEAF Financial to establish leasing program relationships with direct sales organizations without having to develop new software for each new program developed;
•
an application management system that is capable of processing high volumes of lease applications;
•
a credit scoring model that automates the task of evaluating high volumes of lease applications;
•
a contract management system that provides LEAF Financial with a stable, fully automated array of portfolio management tools, including electronic invoice generation, payment posting technologies and extensive collections and customer service screens, enabling efficient portfolio servicing of our leases and secured loans; and
•
an accounting and financial management system that will provide accurate and efficient financial and investor reporting.
•
Lease provisions.
The terms and provisions of each equipment lease will vary depending on a number of factors, including:
•
the type and intended use of the equipment;
•
the business, operations and financial condition of the lessee;
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•
any regulatory considerations; and
•
the tax consequences and accounting treatment of the lease transaction.
Certain
        terms and provisions, however, generally will be included in all of our
        equipment leases. For example, we anticipate that each equipment lease
        will hold the lessee responsible for:
•
paying rent without deduction or offset of any kind;
•
bearing the risk of equipment loss and maintaining both casualty and liability insurance on the equipment;
•
paying sales, use or similar taxes relating to the lease or other use of the equipment;
•
paying all miscellaneous charges such as documentation fees, late charges, charges for returned checks and similar fees and costs;
•
indemnifying us against any liability resulting from any act or omission of the lessee or its agents related to the equipment;
•
maintaining the equipment in good working order and condition during the term of the equipment lease;
•
notifying us and obtaining our approval for moving the equipment; and
•
requiring our prior written consent before assigning or subleasing the equipment.
Our
        equipment leases will usually have terms ranging from 12 to 84 months.
        We anticipate that the average lease term over our aggregate lease portfolio
        will range from 48 to 60 months. We also anticipate that most of our leases
        will not be cancelable during their initial terms. However, we may agree
        to allow cancellation of a lease if the lessee pays enough compensation
        so that the cancellation will not prevent us from achieving our objectives.
        At the end of each lease term, the lessee may have the option to buy the
        equipment or renew the lease, either at set prices or at prices tied to
        current fair market value.
•
Portfolio acquisition strategies.
We may purchase portfolios of equipment subject to existing leases and secured loans. We anticipate that the principal sources for these portfolios will be:
•
small company equipment lessors;
•
international leasing institutions;
•
regional and national commercial banks; and
•
captive finance companies of large manufacturers.
In
        evaluating a portfolio acquisition, we expect to consider the following
        factors:
•
the business objectives of the seller in selling the portfolio;
•
the amount of the equipment and the number of leases in the portfolio;
•
how the leases were originated, whether directly with the end-user or through vendors or brokers;
•
the portfolio characteristics, including geographic and lessee concentrations, equipment cost range, types of leases and the original and remaining terms of the leases;
•
the seller's credit decision process;
•
the seller's lease documentation and any material variations from industry practices;
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•
the seller's servicing policies; and
•
the portfolio's aging, performance and default history, including the default history of other portfolios sold by the seller.
We
        will also consider other elements such as:
•
who the seller is and its overall industry reputation;
•
the performance of other portfolios we may have acquired from the seller;
•
the effect of the acquisition on our own portfolio; and
•
credit enhancements available from the seller, such as guarantees or additional security.
Based
        on the number of transactions and the portfolio characteristics, LEAF
        Financial will credit score a sampling of the lessees in the portfolio
        as well as the lessees having the largest positions in the portfolio.
        If we then decide to pursue the portfolio acquisition, LEAF Financial
        will do a credit analysis of the entire portfolio, or a larger sampling,
        through credit scoring, financial analysis or other appropriate procedures.
        The results of LEAF Financial's analysis will be presented to our
        general partner's investment committee, which also serves as LEAF
        Financial's investment committee as discussed in the "Management
        – Investment Committee" section of this prospectus, which will
        decide which portfolios, if any, we will make an offer to acquire and
        the terms of our offer.
In
        acquiring portfolios of equipment subject to existing leases, we will
        seek portfolios that will be consistent with the types of credit, industries
        and equipment we will focus on in our direct equipment leasing activities.
        However, because a portfolio is often sold only in its entirety, it is
        possible that a material portion of the equipment and the related leases
        in a portfolio offered to us will not conform to these criteria. We will
        consider a portfolio for acquisition only when:
•
at least two-thirds of the equipment leases, by book value, conform to our equipment type and market criteria; or
•
our general partner believes that the lessees are creditworthy.
Once
        we acquire a portfolio of equipment subject to existing leases, it will
        become part of our overall assets and subject to LEAF Financial's
        normal administrative processes and procedures as the servicer of our
        leases and secured loans.
•
Transaction approval policies.
Our general partner's investment committee, which also serves as LEAF Financial's investment committee as discussed in the "Management – Investment Committee" section of this prospectus, will set and may revise, from time to time, standards and procedures for the review and approval of our equipment acquisitions and leases of that equipment. The investment committee will:
•
supervise and approve significant individual transactions or portfolio purchases;
•
supervise and approve transactions that vary from standard credit criteria and policies; and
•
resolve conflicts, if any, that may arise in the allocation of investments between us and our general partner or among us and other programs managed by our general partner or its affiliates as described in the "Conflicts of Interest and Fiduciary Responsibilities – Conflicts of Interest – Our General Partner and Its Affiliates Will Engage in Activities That Compete With Us" section of this prospectus.
The
        investment committee will make decisions by majority vote and will promptly
        complete a written report of all actions taken.
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Borrowing
We expect to augment the proceeds of this offering with borrowings, including financings through securitizations as described below, in order to finance a significant portion of the cost of the equipment we acquire. This will allow us to increase the size and diversification of our equipment lease portfolio. We are not limited in the amount of debt, including financings through securitizations of our equipment leases, we may incur. We anticipate that our financings, as a percent of our aggregate portfolio of equipment, on full investment and assuming we sell the maximum number of units in this offering, will be approximately 80%. Our ability to obtain financing will, however, depend on our general partner's assessment of whether funds are available at rates and on terms that are economically advantageous to us. As a result, the amount of our financings may vary significantly from our expectations. We have
not obtained any commitments, or entered into any arrangements for financing from any potential lenders, as of the date of this prospectus.
We will seek to establish a "warehouse" credit facility to provide short-term funding for our investments. This short-term financing will be provided by a bank and will be secured by our receivables from our equipment leases and secured loans. Generally, we plan to repay warehouse borrowings from the proceeds of various third-party commercial paper ("CP") conduit securitization financing facilities we will seek to obtain. We anticipate that we will continue to service all of the leases or secured loans we securitize, for which we will receive a fee. In this regard, we may securitize our secured loans in the same manner as our leases as described below.
In a CP conduit transaction, we sell to a special purpose entity only that amount of lease receivables and interests in the related equipment and leases that is needed to accomplish the particular borrowing or financing we are seeking. Typically, the special purpose entity will be our wholly-owned subsidiary, and the assets we sell to it will be managed by us through our general partner. Thus, our general partner will receive the same fees with respect to those assets that it would receive with respect to any other assets of ours that may be subject to a loan from a bank. See the "Management Compensation" section of this prospectus. We will use a special purpose entity in the CP conduit securitization so that the assets backing the securitization will be "bankruptcy remote" from us. This means that in the event of our bankruptcy our creditors, other than holders of our securitization notes,
cannot use the securitized assets as a source of payment of amounts owed to them until the securitization notes have been paid. The special purpose entity, in turn, securitizes the lease receivables by pledging its interest in them and in the related equipment and leases to another entity, known as a CP conduit, that is owned by an unrelated third-party. The CP conduit funds the securitization by issuing commercial paper secured by the assets pledged to it and payable from the pledged lease receivables, which generally is short-term financing.
When one of our CP conduit facilities reaches its capacity, we will seek to either obtain additional CP conduit facilities or reduce the amount outstanding under our existing facilities by a refinancing through a term note securitization. We also may enter into a term note securitization if longer term financing is desired. In a term note securitization, the pledge of the equipment, equipment leases and lease receivables will be released by the CP conduit and the assets will be repledged by us to a trust that issues term notes to unaffiliated third-party investors which are paid from the lease receivables and secured by the related leases and equipment. Thus, CP conduit securitizations and term note securitizations are alternatives, which never exist simultaneously on the same assets. Again, since term note securitizations are financings, we will have the same control over the pledged assets that we would have
had if, instead, we had obtained a bank loan.
We intend to structure our securitization transactions as financings, and will account for them as financings. This means that our balance sheet will carry the securitizations as our debt, and our operating statements will recognize interest expense on that debt. Also, our general partner will not receive a fee when commercial paper or term notes are issued based on the amount of those securitization financings.
In each securitization transaction, we will receive cash equal to a substantial percentage of the aggregate present value of the adjusted future cash flows from the securitized equipment leases. In addition, we will retain an undivided interest in the remaining future cash flow from the securitized equipment leases after all obligations to securitization lenders have been paid, including equipment residual values. In the experience of our general partner's management, we will typically retain approximately 10% to 12% of the present value of the aggregate future cash flows from the securitized equipment leases in CP conduit securitizations and approximately 6% of the present value of the aggregate future cash flows from the securitized equipment leases in term note securitizations.
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Over the life of a securitized lease pool, we will be entitled to receive the excess cash flow attributable to our retained interest. The excess cash flow will equal the amount by which lease payments and collections on equipment residuals received, net of defaults, exceeds the sum of:
•
servicing, backup servicing, trustee, custodial and insurance and credit enhancement fees, if any, and other securitization and sale expenses; and
•
amounts of principal, interest or other payments due to the noteholders or other providers of securitization financing.
As a result, our retained interest in our securitized leases, including equipment residual values, if any, will be effectively subordinated. Consequently, to the extent of our retained interest, we will bear the credit losses incurred on the securitized portfolio. Relatively small fluctuations between estimated and actual chargeoff rates could be material in relation to our retained interest and could have an adverse effect on our ability to realize our recorded basis in the retained interest.
Origination and Servicing Agreement
After we receive our minimum offering proceeds and begin operations we will enter into an Origination and Servicing Agreement with LEAF Financial and LEAF Funding, two of our general partner's affiliates. Under this agreement, in order to facilitate the acquisition of equipment, leases and secured loans by us, LEAF Funding will:
•
temporarily acquire equipment from third-parties on our behalf;
•
originate secured loans with third-parties on our behalf; and
•
originate equipment leases with third-parties on our behalf, including equipment directly leased to end users and equipment already subject to leases.
We expect to purchase all of our equipment, leases and secured loans from LEAF Funding at its cost, including its related initial direct costs under generally accepted accounting principles ("GAAP"), as described in the "Management Compensation" section of this prospectus.
This agreement further provides that LEAF Financial will service our equipment leases and secured loans, including but not limited to:
•
underwriting;
•
receivables management;
•
re-leasing or selling the equipment after the termination of a lease; and
•
marketing our services.
The compensation of LEAF Financial and LEAF Funding for providing these services will be from the fees and reimbursements described in the "Management Compensation" section of this prospectus. The form of Origination and Servicing Agreement is included as an exhibit to the registration statement of which this prospectus is a part. See the "Where You Can Find More Information" section of this prospectus.
Changes in Investment Objectives and Policies
You and our other limited partners will have no right to vote on the establishment or implementation of our investment objectives and policies, all of which are the responsibility of our general partner. However, our general partner cannot make any material changes in our investment objectives and policies without the consent of limited partners owning a majority of the total outstanding units entitled to vote. Any material change proposed by our general partner, or any non-material change made by our general partner, will be subject to our general partner's duty to act in our best interests. In proposing a material change, our general partner will consider whether the proposed change will be beneficial to our ability to preserve, protect and return your capital or make distributions.
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INCOME,
  LOSSES AND DISTRIBUTIONS
Our taxable income, taxable loss and cash distributions will be allocated 99% to you and our other investors, as a group, and 1% to our general partner.
Allocations of Net Income, Net Loss and Distributions Among Investors
For any fiscal period, we will apportion net income, net loss and cash distributions allocable to you and our other investors, as a group, including our general partner and its affiliates to the extent they purchase units, in the ratio that the number of units held by each investor, multiplied by the number of days during the period the investor owned the units, bears to the amount obtained by totaling the number of units outstanding on each day during that period.
We will not make distributions in kind, that is, of our non-cash assets, except on our liquidation, and then only to a liquidating trust.
Timing of Distributions
Generally, we will make cash distributions on a monthly basis, beginning the month after the month in which we receive the minimum amount of offering proceeds and hold the initial closing in this offering.
Federal Income Tax Deferral
We anticipate that income taxes on a portion of our distributions will be deferred during our early years due primarily to operating losses and cost recovery or depreciation deductions available from the portion of our equipment leased to third-party end users under our operating leases, but not equipment subject to our full payout leases or our secured loans, and interest deductions on borrowings, including securitizations, we enter into to help increase the size and diversification of our investment portfolio.
Reinvestment of Our Revenues in Additional Leases and Secured Loans
We have the right to invest our revenues during the period beginning with the initial closing date of this offering and ending five years after this offering terminates (the "reinvestment period"). Before we can reinvest our revenues, however, we must, at a minimum, distribute to you and our other investors an amount which satisfies both  of the following requirements:
•
the amount distributed includes an amount of net proceeds from sales and refinancings of our equipment investments sufficient for you and our other investors to pay your federal, state and local income taxes, if any, resulting from those sales, based on our assumption that you and our other investors are in a 30% tax bracket; and
•
for each month after the end of the offering period for this offering and until the end of the reinvestment period, the amount distributed equals  a cumulative, noncompounded (except when calculating "payout" for the subordinated remarketing fee discussed in the "Management Compensation" section of this prospectus), annual rate of return of 8% on your adjusted capital contribution (the "8% return").
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Under our partnership agreement, your capital contribution is the purchase price you paid for your units. Thus, initially your 8% return is determined by multiplying your capital contribution by 8%. Thereafter, your 8% return is determined by multiplying your "adjusted" capital contribution by 8%. Your "adjusted capital contribution" is your original capital contribution, reduced, but not below zero, from time to time by the following distributions made to you, but only to the extent the distributions exceed your 8% return on a cumulative basis at the time they are made:
•
distributions of distributable cash to you during the period from the initial closing date until five years after the final closing date of this offering (the "reinvestment period");
•
if you purchased your units before we received our minimum offering proceeds, interest distributed to you that was earned while your subscription funds were held in an escrow account;
•
any portion of your capital contribution returned to you because we did not invest all of our net offering proceeds; and
•
your share of our liquidating distributions.
In addition, your capital contribution will be reduced, but not below zero, without first reducing your unpaid 8% return, if any, by the total amount of all payments made to you, if any, in redemption of a portion or all of your units. Thus, your 8% return is calculated on a decreasing base of your capital contribution. For example, on a $100 investment, a $10 distribution in year one would result in a $2.00 reduction in your capital contribution. The $2.00 reduction consists of $2.00 in distributions in excess of the $8.00 that was required to satisfy the 8% return in year one. This leaves a $98 adjusted capital contribution on which the 8% return would be calculated in year two.
Return of Unused Capital
We will distribute to you and our other investors, without interest, any net offering proceeds we do not commit to investment within 24 months after the beginning of this offering or that are not required as reserves.
•
"Net offering proceeds" means  our gross offering proceeds minus the organization and offering expense allowance and dealer-manager fees, sales commissions and due diligence expenses payable by us.
Funds will be considered committed for investment, and need not be returned, to the extent we have written agreements in principle, commitment letters, letters of intent, option agreements or similar contracts. We must complete investments under those agreements within a further period of 12 months or return the uninvested funds to you and our other investors, except that investments using funds from Ohio investors must be completed within a three month period or those funds must be returned.
Cash from Reserve Account
Our partnership agreement requires us initially to establish a cash reserve for general working capital purposes of not less than 1% of our offering proceeds. Any cash reserves used need not be restored, but if they are restored they may be restored from our operating revenues. We may distribute to you and our other limited partners any cash reserves that our general partner determines are no longer required for our operations. However, our general partner intends to make distributions only out of our:
•
cash from operations; and
•
cash from sales or refinancings; and
We will not borrow for the purpose of making distributions, nor will we make distributions out of offering proceeds we are holding pending investment or capital reserves, unless our general partner determines the reserve is no longer required.
Election to Reinvest Cash Distributions in Units During the Offering Period
You may elect to have your distributions from us reinvested in additional units during the offering period. In addition to your initial purchase of not less than 50 units ($5,000), you may elect on your subscription agreement to use any cash distributions that you receive from us during the offering period to purchase additional units on the same terms as you purchased your initial units, to the extent units are then available for purchase.
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Also, if you previously invested in Lease Equity Appreciation Fund I, L.P. ("LEAF I") or Lease Equity Appreciation Fund II, L.P. ("LEAF II"), which are prior equipment leasing and financing programs sponsored by LEAF Financial, an affiliate of our general partner, you may elect on your subscription agreement to use any cash distributions you receive from either or both of those programs to purchase our units during the offering period.
All units purchased by you with distributions from us, or from LEAF I, LEAF II or both, will be purchased at the public offering price and on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements, except that there is no minimum number of units that you must purchase if your cash distributions from LEAF I, LEAF II or both, are used to purchase your units in us.
We will use your distributions to purchase your units not later than 30 days from the applicable distribution date, to the extent that units are then available for purchase. You may choose to reinvest your distributions at any time during the offering period by making the appropriate election on your subscription agreement, which is Appendix C to this prospectus. If you wish to change the election you made on a previously submitted subscription agreement, you may do so by written notice to our general partner as described in Appendix C.
Notice to Ohio residents
: Ohio investors may not elect to have either their distributions from us, nor their cash distributions from LEAF I and/or LEAF II, reinvested in our units.
FEDERAL INCOME TAX CONSEQUENCES
Special Counsel's Tax Opinion Letter
We have not requested a ruling from the IRS with respect to any federal tax consequence to you of an investment in us. Instead, we have obtained and will rely on a tax opinion letter from Kunzman & Bollinger, Inc., our special counsel for this offering. You are encouraged to read the tax opinion letter, which has been filed as Exhibit 8.1 to the registration statement of which this prospectus is a part. See the "Where You Can Find More Information" section of this prospectus for information on how you can obtain a copy of the tax opinion letter.
The following discussion covers all of the material and any significant federal income tax issues related to purchasing, holding and disposing of our units that may be relevant to a "typical limited partner."  We consider a typical limited partner to be a natural person who is a citizen of the United States and purchases units in this offering. However, the tax consequences of investing in us may not be the same for all typical limited partners. This is because the practical utility of the tax aspects of any investment depends largely on each limited partner's particular income tax position in the year in which items of income, gain, loss, deduction or credit are properly taken into account in computing his or her federal income tax liability. In addition, the tax consequences of an investment in us by certain investors, such as tax-exempt entities, corporations, trusts, partnerships, foreign
persons or other investors that may be subject to special treatment under federal income tax laws, may be different from those discussed below and special counsel's tax opinions may not be applicable to those investors.
Our special counsel's tax opinion letter includes the following disclosures:
•
The tax opinion letter was written to support the promotion or marketing of units in us to potential limited partners, and our special counsel has helped our general partner organize and document this offering of our units.
•
The tax opinion letter is not confidential. There are no limitations on the disclosure by us or by any of our limited partners to any other person of the tax treatment or tax structure of us or an investment in us.
•
Our
        limited partners have no contractual protection against the possibility
        that a portion or all of their intended tax benefits from an investment
        in us ultimately are not sustained if challenged by the IRS. See the "Risk
        Factors – Your Tax Benefits from an Investment In Us Are Not Contractually
        Protected" section of this prospectus.
•
Each potential limited partner is urged to seek advice based on his particular circumstances from an independent tax advisor with respect to the federal tax consequences to him of an investment in us.
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This discussion and special counsel's tax opinion letter are based in part on the current federal income tax laws. Future changes in existing law, which may take effect retroactively, may cause the actual tax consequences of an investment in us to vary substantially from those discussed below and could render special counsel's tax opinions inapplicable. Special counsel's tax opinions also are based in part on statements made in this prospectus by us and our general partner concerning us and our proposed activities, including forward-looking statements. See the "Forward-Looking Statements and Associated Risks" section of this prospectus. In addition, our general partner has made certain representations to our special counsel relating to us and our proposed activities,  which are set forth in special counsel's tax opinion letter. Any material inaccuracy in this prospectus or our
general partner's representations may render special counsel's tax opinions inapplicable.
In giving its opinions, special counsel made the principal assumptions that any amount borrowed by you to purchase your units will not be borrowed from any other limited partner or anyone related to another limited partner, and you will be severally, primarily, and personally liable for the borrowed amount. In this regard, our general partner and its affiliates will not make or arrange financing for you or our other limited partners to use to purchase our units. Also, in giving its opinions special counsel assumed that you will not be protected from losing the amount you paid for your units through nonrecourse financing, guarantees, stop loss agreements or other similar arrangements.
Special counsel believes that its tax opinion letter addresses all of the material and any significant federal  tax issues associated with an investment in us by a typical limited partner. Although special counsel's tax opinions express what it believes a court would probably conclude if presented with those issues, its opinions are only predictions, and are not guarantees, of the outcome of the particular tax issues being addressed. The IRS could challenge our special counsel's tax opinions and the challenge could be sustained in the courts and cause adverse tax consequences to you and our other limited partners. Taxpayers bear the burden of proof to support claimed deductions, and opinions of counsel are not binding on the IRS or the courts.
Subject to the foregoing, special counsel has given the following opinions with respect to the proper federal tax treatment of an investment in us by a typical limited partner:
(1)
We will be classified as a partnership for federal income tax purposes, and not as a corporation.
(2)
We will not be treated as a publicly traded partnership under the Code.
(3)
The passive activity limitations on losses and credits under §469 of the Code will apply to our typical limited partners.
(4)
Our business expenses, including payments for personal services actually rendered in the taxable year in which accrued, which are reasonable, ordinary and necessary and do not include amounts for items such as the acquisition costs of Equipment, Leases, Secured Loans or Equipment subject to Existing Leases, Organization and Offering Costs and other items that are required to be capitalized under the Code, are currently deductible.
•
Potential Limitations on Deductions.
Your ability in any taxable year to use your share of these deductions from us on your individual federal income tax returns may be reduced, eliminated or deferred by the following limitations:
•
your personal tax situation, such as the amount of your regular taxable income, alternative minimum taxable income, losses, itemized deductions, personal exemptions, etc., which are not related to your investment in us;
•
the amount of your adjusted tax basis in your units at the end of our taxable year;
•
your "at risk" amount in us at the end of our taxable year; and
•
the passive activity limitations on losses.
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(5)
Our reasonable purchase price for equipment that we are deemed to own under the Code that is leased to independent third-party lessees under operating leases (but not equipment leased under full payout leases or equipment that is subject to secured loans), which cannot be deducted immediately, will be eligible for cost recovery deductions under the Modified Accelerated Cost Recovery System ("MACRS") beginning in the taxable year the equipment is placed in service by us.
Your
        ability in any taxable year to use your share of these deductions from
        us on your personal federal income tax returns may be reduced, eliminated
        or deferred by the "Potential Limitations on Deductions" set
        forth in opinion (4), above.
(6)
As a limited partner, your initial tax basis in your units will be the purchase price of your units.
(7)
As a limited partner, your initial "at risk" amount in us will be the purchase price of your units.
(8)
The allocations of income, gain, loss and deduction, or items thereof, set forth in our partnership agreement will govern your share of those items to the extent the allocations do not cause or increase deficit balances in your capital account in us.
(9)
We will possess the requisite profit motive under §183 of the Code. Also, the IRS anti-abuse rule in Treas. Reg. §1.701-2 and potentially relevant judicial doctrines will not have a material adverse effect on the federal tax consequences of an investment in us by a typical limited partner as described in special counsel's tax opinions.
(10)
Our special counsel's overall conclusion is that the federal income tax benefits, in the aggregate, which are a significant feature of an investment in us by a typical limited partner will be realized as contemplated by this prospectus. This opinion is based in part on special counsel's conclusion that substantially more than half of our material federal income tax benefits, in terms of their financial impact on a typical limited partner, will be realized if challenged by the IRS and litigated.
Our special counsel's tax opinions are limited to those set forth above. The following is a summary discussion of the material federal income tax consequences of an investment in us.
Partnership Classification
Because we were formed as a limited partnership, under current Treasury Regulations we will automatically be treated as a partnership for federal income tax purposes unless we elect to be taxed as a corporation, which we will not do, or we are deemed to be a publicly traded partnership under the Code. A publicly traded partnership is a partnership whose interests are traded on an established securities market or are readily tradable on either a secondary market or the substantial equivalent of a secondary market. Also, if a publicly traded partnership derives less than 90% of its gross income from certain passive sources such as interest, dividends, rents from real property and gains from the sale of real property, the publicly traded partnership will be taxed as a corporation. Since we will derive less than 90% of our gross income from those sources of income, our units must not be "publicly traded"
as defined by the Code or we will be taxed as a corporation.
In this regard, we do not intend to list our units for trading in any securities market, exchange, or interdealer quotation system. Therefore, we will be a publicly traded partnership only if our units become readily tradable on a secondary securities market or on the substantial equivalent of a secondary market. Our units will not become readily tradable merely because we may provide information to you and our other limited partners regarding another limited partner's desire to buy or sell units, or occasionally arrange transfers between our limited partners.
Also, Treas. Reg. §1.7704-1 provides certain "safe harbors" under which certain types of transfers of partnership interests are not counted as trades on a secondary market or the substantial equivalent of a secondary market. These safe harbors include the following:
•
Private Transfers.
Private transfers are not counted. Private transfers include, but are not limited to the following:
•
transfers at death;
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•
transfers between family members; and
•
transfers from qualified retirement plans and IRA's.
•
Qualified Matching Services.
Transfers of our units made through a qualified matching service are not counted. However, we and our affiliates will not sponsor or operate, either formally or informally, a qualified matching service for our units. See the "Summary of the Offering – Risk Factors" section of this prospectus.
•
Lack of Actual Trading.
In addition, we will not be treated as a publicly traded partnership under the regulations if the total of all of our units transferred during any taxable year, other than private transfers and transfers through a qualified matching service as described above, do not represent more than 2% of the total interests in our capital or profits in that taxable year.
Although
        units redeemed by a partnership under a qualified redemption agreement
        will not count against the 2% limitation, the redemption provisions in
        Section 13.5 of our partnership agreement have not been structured to
        meet the requirements of a qualified redemption plan under Treas. Reg.
        §1.7704-1. Since any units redeemed by us must be counted within
        the 2% limitation in our taxable year in which the redemption is made,
        Section 13.5 of our partnership agreement provides that we will not redeem
        any units in a calendar year that, together with all other units transferred
        in that calendar year, would exceed the 2% limitation set forth above.
In
        addition, Section 13.2(c) of our partnership agreement provides that our
        general partner will not permit the transfer of any of our units (including
        redemptions of units) in any taxable year that do not fall within at least
        one of the "safe harbors" set forth in Treasury Regulations,
        including those described above. Based on this provision, our units should
        not be deemed to be readily tradable on a secondary market or the substantial
        equivalent of a secondary market. Thus, we should not be treated as a
        publicly traded partnership that is taxable as a corporation under the
        Code. Instead, our special counsel has given its opinion that we will
        be classified as a partnership for federal income tax purposes.
Flow Through of Taxable Income
Although we will file annual federal information income tax returns, we will not pay any federal income taxes as a partnership. Instead, you and our other limited partners will be required to report on your personal income tax returns your respective share of our income, gains, losses and deductions without regard to whether we make cash distributions to you. Consequently, the amount of taxable income we allocate to you in any taxable year may exceed the amount of cash we distribute to you in that taxable year. In that event, you would have to pay any resulting tax liability in excess of your cash distributions from us in that taxable year with your personal funds.
Treatment of Distributions
Our cash distributions to you and our other investors generally will not be taxable for federal income tax purposes except to the extent that they exceed the amount of your adjusted tax basis in your units immediately before the distribution. The excess distributions to you, if any, generally would be considered to be gain from the sale or exchange of your units, and would be taxable to you under the rules described in "– Sale or Other Disposition of Units," below. Also, your share of our liabilities for which no partner, including our general partner, bears the economic risk of loss, which are known as "nonrecourse liabilities," will increase your adjusted tax basis in your units. However, if your share of our nonrecourse liabilities is reduced, the amount of the reduction of your share of our nonrecourse liabilities will be treated the same as a distribution of cash from us to you.
Also, to the extent, if any, that our distributions to you , including any reductions in your share of our nonrecourse liabilities, cause your "at risk" amount in us to be less than zero at the end of any taxable year, you will be required to recapture as income any losses that we allocated to you in previous years that you deducted on your personal income tax returns. See "– 'At Risk' Limitation on Deductions," below.
When we issue additional units to existing or new limited partners during the offering period of this offering, your percentage ownership interest in us will decrease, which will also result in a corresponding decrease in your share of our nonrecourse liabilities. This decrease in your share of our nonrecourse liabilities will be deemed a distribution of cash to you and may be taxable as described above. Also, a non-pro rata distribution of money or property to you and our other limited partners may result in ordinary income to you, regardless of your adjusted tax basis in your units, if the distribution reduces your share of our "unrealized receivables," including depreciation recapture, or substantially appreciated "inventory items."  These terms are defined in Section 751 of the Code, and are known as "Section 751 assets."  In that event, you would be treated as having been
distributed your proportionate share of our Section 751 assets and having exchanged those assets with us in return for the non-pro rata portion of the actual distribution made to you. This generally would result in your realization of ordinary income under Section 751(b) of the Code in an amount that would equal the excess of:
•
the
        non-pro rata portion of that distribution to you; over
•
your
        tax basis for the share of our Section 751 assets deemed relinquished
        by you in the exchange.
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Basis of Units Limitation on Deductions
Your deduction on your personal income tax returns of your share of our losses cannot exceed your adjusted tax basis in your units at the end of our taxable year. Your initial tax basis for your units will be the amount of money that you paid for your units. Subsequently, your initial tax basis in your units will be:
•
increased by:
•
your share of our income; and
•
your share of our nonrecourse liabilities, which will change from time to time; and
•
decreased, but not below zero, by:
•
our distributions to you;
•
your share of our losses;
•
any decreases in your share of our nonrecourse liabilities, which will change from time to time; and
•
your share of our expenditures that are not deductible in computing taxable income and are not required to be capitalized.
Your adjusted tax basis in your units, however, will not be increased or decreased by any debt of ours for which our general partner is liable, if, for example, it has either guaranteed the loan or because of its general liability for our obligations under applicable state law as our general partner. Also, on the sale or other taxable disposition of a unit by you, any gain you recognize cannot be offset by any of your losses that were previously suspended by the basis limitation discussed above. Should a cash distribution from us to you exceed your adjusted tax basis in your units immediately before the distribution, taxable gain would result to you to the extent of the excess as discussed in "– Treatment of Distributions," above.
"At Risk" Limitation on Deductions
Your ability to deduct your share of our losses generally will be limited to the amount for which you are "at risk" with respect to our activities at the end of our taxable year, if that amount is less than the amount of your adjusted tax basis in your units at the end of our taxable year. In general, you will be at risk to the extent of the adjusted tax basis of your units, reduced by:
•
any portion of your adjusted tax basis in your units that is attributable to your share of our nonrecourse liabilities; and
•
any amount of money that you borrowed to buy your units if the lender of those borrowed funds is another of our limited partners, is related to another of our limited partners, or can look only to your units for repayment.
Thus, your at risk amount in us will increase or decrease as the adjusted tax basis of your units increases or decreases, other than increases or decreases attributable to your share of our nonrecourse liabilities. Also, you will not be at risk for the amount you paid for your units if that amount is protected from loss through nonrecourse financing, guarantees, stop loss agreements or other similar arrangements.
You must recapture losses deducted by you in previous years to the extent, if any, that our distributions to you cause your at risk amount to be less than zero at the end of any taxable year. Losses disallowed or recaptured as a result of the "at risk" limitation will carry forward and will be allowable in subsequent taxable years to the extent that your tax adjusted basis or your at risk amount in us, whichever is the limiting factor, subsequently increases.
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Passive Activity Limitations on Losses
The passive activity rules under §469 of the Code allow taxpayers to deduct their passive activity losses only against their passive activity income. Under these rules, taxpayers generally must separate their income and loss into three categories:
(1)
active trade or business income or loss, such as ordinary income from a salary and other types of compensation for personal services;
(2)
passive income or loss, such as income or loss from an investment in a limited partnership as a limited partner; and
(3)
portfolio income or loss, which generally consists of:
•
interest, dividends and royalties that are not received in the ordinary course of a trade or business; and
•
gain or loss that is not derived in the ordinary course of a trade or business on the sale of property that generates portfolio income or is held for investment.
The passive activity rules apply to individuals, estates, trusts, personal service corporations and some closely-held corporations, including S corporations.
A
    passive activity involves the conduct of a trade or business in which the
    taxpayer does not materially participate. Rental activities, however, generally
    are treated as passive activities whether or not the taxpayer materially
    participates in the activity. In addition, as set forth above, since limited
    partners generally do not materially participate in the management or activities
    of their limited partnership, limited partner interests in limited partnerships
    generally are treated as passive activities. Accordingly, as a limited partner,
    you generally must treat your investment in us as an investment in a passive
    activity. As a passive activity, interest
    earned on our funds before their investment in
    equipment
    will be
    treated
    as portfolio
    income
    that cannot
    be
    offset with
    passive losses.
Also, a portion of your share of our gross income
    might be treated for federal income tax purposes as portfolio income and
    gross
    income
    that is not from a passive activity, which means that it cannot be offset
    by passive losses, instead of passive income.
As a limited partner, you can deduct passive losses against your passive income, if any, to reduce your overall income tax liability, but you cannot offset active (i.e., non-passive) income or portfolio income with passive losses. Thus, your ability to use your share of our passive losses will be limited by the amount of your passive income in any given tax year from us, plus your net passive income from any other passive activities (other than publicly traded partnerships as discussed below) in which you may have invested. This means that if your share of our passive loss in any taxable year is greater than the total of your net passive income from all other sources in that taxable year, you cannot deduct the excess loss in the year you incurred it. You can, however, carry the suspended passive loss forward indefinitely to offset any passive income you may derive in future years to the extent of the suspended
passive loss, whether your passive income is derived from us or from another passive activity (other than a publicly traded partnership as discussed below) in which you may invest. Also, any suspended passive losses generally may be deducted against your non-passive income if you sell all of your units to a third-party in a taxable transaction.
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Losses from a publicly traded partnership that is taxed as a partnership are treated as passive activity losses that may only be used to offset income subsequently generated by the same publicly traded partnership. The IRS generally treats income from a publicly traded partnership as portfolio income, unless it is used to offset previous losses from the same publicly traded partnership. We have been structured to avoid being classified as a publicly traded partnership; however, these rules mean that your share of our passive income or passive losses cannot be used to offset any losses or income you may derive as a limited partner in any publicly traded partnership in which you may have invested.
Limitations on Interest Deductions
The amount of a noncorporate taxpayer's investment interest deduction is generally limited to the amount of the taxpayer's net investment income. For purposes of this limitation, investment interest does not include any interest that is taken into account under §469 of the Code in computing income or loss from a passive activity. Thus, your share of our passive interest expense that we use in computing our net passive income or passive loss will not be limited by the investment interest limitation. However, your share of our portfolio income and related expenses will be treated as investment income and investment expenses.
Also, we may enter into transactions involving the prepayment of interest or the payment of points, commitment fees, and loan origination or brokerage fees. In general, prepaid interest, points, and similar costs cannot be deducted currently, but must be capitalized and amortized over the life of the related loan.
Partnership Income Tax Withholding
If we are required, or elect, in our general partner's discretion, under applicable law to pay any federal, state or local income tax on behalf of you or our other limited partners, our general partner or any former limited partner, we are authorized under our partnership agreement to pay those taxes from our funds. That payment, if made, will be treated as a distribution of cash from us to the person on whose behalf the payment was made. If the payment is made on behalf of a person whose identity cannot be determined, we are authorized under our partnership agreement to treat the payment as a distribution to all of our current limited partners and our general partner.
Organization and Offering Expenses and Start-Up Costs.
We cannot deduct the costs of organizing us as a limited partnership or our start-up costs, in the year we incur them. Instead, we must capitalize and amortize our organization expenses and start-up costs over a 180-month period. Also, we can deduct our syndication expenses, if at all, only on our liquidation, and then only as a capital loss. Syndication expenses include the following:
•
brokerage fees such as the dealer-manager fee and sales commissions paid in this offering;
•
registration and filing fees with the SEC, the NASD and each state in which our units are offered for sale;
•
our legal fees for securities and tax advice concerning this prospectus;
•
accounting fees for the preparation of information to be used in this offering; and
•
printing and reproduction costs of this prospectus and our sales literature, and other selling or promotional expenses we may incur in connection with this offering.
The proper classification of a portion of these expenses may not be clear, and it is possible that the IRS may seek to recharacterize a portion of our organization costs as nonamortizable syndication costs. Since the determination of this issue is inherently factual, and the nature of the expenses that might be at issue is not currently known, special counsel cannot express any opinion on this issue.
Business Expenses
. Ordinary and necessary business expenses, including reasonable compensation for services rendered, are currently deductible expenses. In this regard, our general partner has represented, based on the experience and knowledge of industry practices of its management, that the amounts we will pay to our general partner and its affiliates under our partnership agreement for services rendered by them to us, or on our behalf, are reasonable amounts that ordinarily would be paid for similar services in similar transactions between persons having no affiliation and dealing with each other "at arms' length."  The fees we pay to our general partner and its affiliates, however, will not be currently deductible to the extent it is determined by the IRS or the courts that those fees are:
•
in
          excess of reasonable compensation;
•
properly characterized as syndication expenses or other capital costs, such as equipment costs; or
•
not "ordinary and necessary" business expenses.
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In the event of an IRS audit of our annual federal information income tax return, payments by us to our general partner and its affiliates will be scrutinized by the IRS to a greater extent than payments to an unrelated party.
Although a portion of our activities might otherwise qualify for the "U.S. production activities deduction," you and our other limited partners will not be entitled to this deduction with respect to our activities, because the deduction cannot exceed 50% of the IRS Form W-2 wages paid by a taxpayer for a tax year, and neither we, nor you and our other limited partners, will pay any Form W-2 wages with respect to our activities since we will not have any employees. Instead, we will rely on our general partner and its affiliates to manage us and our business. See the "Management" section of this prospectus.
Tax Treatment of Leases
Your cost recovery or depreciation deductions with respect to any item of our equipment depends, in part, on whether the lease agreement covering the equipment is treated under the Code as a "true lease," which means that we retain ownership of the equipment after it is leased. Cost recovery and depreciation deductions are not available if a purported lease agreement is classified by the IRS or the courts as a sale or a financing or refinancing arrangement under which the ownership of the equipment shifts to a purchaser. See "– Depreciation," below.
Whether we are the owner of any particular item of equipment, and whether our leases will be treated as true leases for federal income tax purposes, depends on both factual and legal considerations. The IRS has published guidelines on the tax treatment of leveraged leases. These guidelines do not purport to be substantive rules of law and are not supposed to be applied by the IRS in audits, although that has happened in a number of instances. Whether our leases will meet the relevant requirements to be characterized as true leases and, in the case of our operating leases, whether we will be treated for tax purposes as the owner of the equipment subject to the operating leases, will depend on the specific facts surrounding each lease. Since these facts cannot be determined now with regard to leases that will be entered into in the future, special counsel cannot render an opinion on this issue.
Also, both the lessor and the lessee in a deferred rental agreement must accrue the rent and interest annually. A deferred rental agreement is a lease of tangible property for more than $250,000 that either provides for increasing rental payments or provides that some rent for the use of the property in a calendar year is payable after the close of the following calendar year. In general, the amount of rent that must be allocated to a tax year will be determined by the terms of the lease. If we enter into a transaction that meets the definition of a deferred rental agreement, then we will recognize income before we receive the corresponding cash.
On a limited basis we may finance end users' acquisition of equipment by providing them with secured loans. We will not be entitled to any depreciation or cost recovery deductions with respect to the equipment involved in those transactions. See "– Depreciation," below. Whether or not we will be deemed to be in the trade or business of lending money with respect to any secured loans we may make, whether or not our income and expenses (including interest expense) allocable to those secured loans ultimately will be treated as passive or as portfolio under the passive activity rules, and whether or not a portion of our gross income from our secured loans will be treated as income that is not from a passive activity, are inherently factual determinations on which special counsel cannot render an opinion. See "– Passive Activity Limitations on Losses," above.
Depreciation
We will be entitled to depreciation or cost recovery deductions under the Modified Accelerated Cost Recovery System ("MACRS") on equipment that we are treated as owning under the Code. Generally, we expect to be eligible to claim cost recovery deductions on equipment subject to our operating leases, but not on equipment subject to our full payout leases or our secured loans. Our depreciable equipment generally will have either three, five or seven year cost recovery periods under the Code, depending primarily on the type of equipment, during which time we can recover our cost of the equipment through cost recovery deductions. The amount deductible in each year generally is calculated for regular federal income tax purposes using the 200% declining-balance depreciation method, switching to the straight-line method at a time that maximizes the deduction. Cost recovery deductions are calculated
differently for purposes of the alternative minimum tax. See "– Alternative Minimum Tax," below.
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We intend to allocate all or a portion of the acquisition fees we pay to our general partner for the selection and purchase of equipment subject to our operating leases to the cost basis of the equipment. The IRS may not agree that cost recovery deductions calculated on a cost basis that includes our general partner's acquisition fees are properly allowable. The IRS might assert that the acquisition fees are attributable to items other than the equipment, or are not subject to cost recovery at all. If the IRS were successful in making that claim, the cost recovery deductions available to us, as well as your respective share of those deductions, would be reduced accordingly. Because the determination of this issue depends in part on the magnitude and type of services performed by our general partner in return for the acquisition fees, which are presently undeterminable and may vary for each piece of
equipment acquired by us, special counsel is unable to render an opinion as to whether or not our decision to include a portion or all of our general partner's acquisition fees for equipment acquired by us and leased to others under operating leases in the amount of cost recovery deductions we intend to claim for equipment subject to our operating leases would be upheld by the courts if challenged by the IRS.
In addition, we may enter into operating leases with "tax-exempt" entities which, in this context,  includes governmental bodies and tax-exempt governmental instrumentalities, tax-exempt organizations, foreign persons and entities, and some international organizations. If we do, we must use the straight-line depreciation method for the equipment subject to our operating leases, which is then called "tax-exempt use property" for depreciation purposes. The depreciation period for tax-exempt use property is the longer of:
•
the equipment's asset depreciation range class life, which generally is longer than the three, five and seven year cost recovery periods discussed above; or
•
125% of the term of the operating lease, including all options to renew as well as some successor leases to the original operating lease.
Also, if our total deductions (other than interest expense) directly allocable to equipment treated as tax-exempt use property, plus our deductions for interest expense properly allocable to the equipment, exceed our income from the operating lease, then the excess deductions, which are referred to as "tax-exempt use losses" are not allowed, subject to certain exceptions, and must be carried forward to the next tax year.
In addition, we anticipate that many of our limited partners will be tax-exempt entities, including, in addition to those listed above, employee benefit plans such as qualified pension and profit sharing plans, Keogh plans and individual retirement accounts ("IRAs"). The proportionate share of these tax-exempt limited partners in our equipment also will be treated as tax-exempt use property, which will affect our depreciation deductions as described above with respect to all of our partners, unless our tax-exempt limited partners are subject to federal unrelated business income tax on their share of our taxable income. In this regard, most, if not all, of their taxable income from us will probably be treated as unrelated business taxable income in the hands of employee benefit plans and our other tax-exempt investors. See "– Federal Taxation of Employee Benefit Plans and Other Tax-Exempt
Organizations," below. Also, our taxable income will be treated as United States source business income in the hands of foreign limited partners if no exemption from United States' taxation is available to them. See "– Federal Tax Treatment of Foreign Investors," below. However, any adjustments in our cost recovery deductions, as well as any suspended tax-exempt use losses, as discussed above, because we have tax-exempt limited partners, will be specially allocated under our partnership agreement to those tax-exempt limited partners only. Also, our general partner has represented that it will ensure that participation by certain tax-exempt entities in us will be limited at all times to less than 25% of our total units sold. This, in turn, will limit the amount of our equipment that could potentially be treated as tax-exempt use property because our units have been sold to tax-exempt limited partners. See the "Investment by Qualified Plans – Plan
Assets" section of this prospectus. For these reasons, our general partner anticipates that the sale of our units to tax-exempt limited partners will have no adverse effect on the depreciation or cost recovery deductions we allocate to our limited partners who are not tax-exempt entities.
Although we do not currently anticipate entering into operating leases for equipment that will be used predominantly outside the United States, it is possible that we may do so in the future. If we do, we must use the straight line method of depreciation over a period corresponding to the equipment's asset depreciation range class life, which generally is longer than the three, five and seven year cost recovery periods discussed above.
Sale
  or Other Disposition of Partnership Property
Because the income tax rates for noncorporate taxpayers on ordinary income generally are much higher than the income tax rates on capital gains, the Code has many rules classifying income as either ordinary income or capital gains, and distinguishing between long-term and short-term capital gains and losses. The distinction between ordinary income and capital gains is relevant for other purposes as well. For example, there are limits on the amount of capital losses that an individual may offset against ordinary income in any taxable year.
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On a sale or other taxable disposition of any of our assets, we will realize a gain or loss equal to the difference between our basis in the asset at the time of disposition and the price we receive for it. Also, any foreclosure on assets we have pledged as collateral for our borrowings would be considered a taxable disposition of the pledged assets by us. We would realize gain on the foreclosure to the extent that the face amount of the debt being discharged was greater than our tax basis in those assets, even though we would receive no cash. Also, your respective share of any capital gain that we may realize on the disposition of our assets generally may also be treated by you as capital gain on your individual federal income tax returns, subject, however, to recapture rules that may require a portion or all of the gain to be treated as ordinary income as discussed below.
Before any gain that we may realize on the sale of an asset can be treated as capital gain, the asset must be a capital asset in our hands. In this regard, capital assets do not include property held by a taxpayer primarily for sale to customers in the ordinary course of its business. We expect to acquire and dispose of many assets many times throughout our term. Whether we can treat any gains on these sales as capital gains will depend on the facts and circumstances at the time of each sale. Because this is an inherently factual determination which depends, in part, on how many times we sell our equipment investments, special counsel is unable to express an opinion on this issue. Even if the equipment sold was a capital asset in our hands, since equipment is tangible personal property all cost recovery or depreciation deductions we previously have taken with respect to the equipment sold will be recaptured as
ordinary income to the extent we realize gain on the sale. Recapture means that we must treat as ordinary income a portion or all of any gain we may realize from the sale of our equipment that otherwise would be treated under the Code as capital gain. Recapture cannot be avoided by holding the equipment for any specified period of time. In addition, if we sell property on an installment basis, we must recognize all depreciation and cost recovery recapture as ordinary income at the time of sale, even though we receive the payments in later taxable years.
Also, certain gains and losses are grouped together under the Code to determine their tax treatment. For example, gain on the sale or exchange of certain assets, including equipment used in a trade or business and held for more than one year, is added to gain from certain compulsory or involuntary conversions of property. If these gains exceed the losses from the sales, exchanges, and conversions of the equipment, the excess gains will be taxed as capital gains, subject to the general rules of recapture of cost recovery and depreciation deductions as ordinary income, as described above, and a special recapture rule described below. If the losses exceed the gains, however, the excess losses will be treated as ordinary losses.
Under a special recapture rule, any net gain will be treated as ordinary income rather than as capital gain if we have non-recaptured net losses from the five preceding taxable years. Based on our intended activities and the recapture rules discussed above, you should anticipate that substantially all, if not all, of any gain we realize on the sale or other taxable disposition of our equipment will be treated as ordinary income for income tax purposes, rather than capital gain.
Sale or Other Disposition of Units
Your gain or loss on the sale or other taxable disposition of your units (including our redemption of any of your units) generally will equal the difference between the amount you realize from the sale and your adjusted tax basis in the units sold. Different tax rules will apply, however, if we were to redeem all of your units. The amount you realize from a sale of your units includes the cash or other consideration you receive from the purchaser, as well as your share of our nonrecourse liabilities. This gain or loss, except as noted below, will be taxed as either long-term or short-term capital gain or loss, depending on how long you have held your units, assuming that the units qualify as capital assets in your hands. Because the Code deems the amount realized from the sale to include your share of our nonrecourse liabilities, for which you will receive no cash, the gain you may realize on a sale of your
units could result in a tax liability to you in excess of the cash, if any, you receive from the sale.
Also, the portion of your gain, if any, attributable to our Section 751 assets, which includes inventory and unrealized receivables, will be treated as ordinary income, rather than capital gain. Section 751 assets include, among other items, assets that are subject to recapture of depreciation or cost recovery deductions, determined as if your proportionate share of our properties is sold at the time you sell your units. Thus, a substantial portion, if not most, of any gain you realize on the sale of your units may be treated as ordinary income depending primarily on how long  you have held your units and the amount of cost recovery or depreciation deductions you have claimed on our equipment that we lease to our customers under operating leases.
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You must promptly notify us of any sale or exchange of your units. Once we are notified, we are required to inform the IRS, the buyer and you of the fair market value of the allocable share of our unrealized receivables and appreciated inventory attributable to the units you sold or exchanged, which must be treated as ordinary income as discussed above. Our written report to you and the buyer must be made by January 31 following the calendar year of the sale. If you fail to timely notify us of the sale or other transfer of your units, the IRS will penalize you $50 per sale.
Generally, no gain or loss  for income tax purposes is recognized on the gift of property, although gift taxes may be owed. However, a gift of your units may be treated as a part sale to the extent of your share of our nonrecourse liabilities. Thus, you may be required to recognize gain in an amount equal to the difference between your share of our nonrecourse debt and, in the case of a charitable contribution, the portion of your basis in your units allocable to the deemed sale transaction. In the case of a non-charitable gift, the amount of your share of our nonrecourse debt is offset by your entire basis in your units. Also, charitable contribution deductions for the fair market value of your units would be reduced by the amounts involved in any deemed partial sale of your units and may be reduced in certain cases by the amount of gain which would have been taxed as ordinary income if the units had been
sold. Also, interests in different partnerships do not qualify for tax-free like-kind exchanges.
Your ability to sell or otherwise transfer your units will be limited for the reasons described in the "Risk Factors – Your Ability to Dispose of Your Investment in Us Will Be Limited" section of this prospectus.
Consequences of No Section 754 Election
Section 754 of the Code permits a partnership to elect to adjust the basis of partnership property on the transfer of an interest in the partnership by sale or exchange or on the death of a partner, and on the distribution of property by the partnership to a partner. The general effect of this election is that transferees of the partnership interests are treated, for purposes of depreciation and gain, as though they had acquired a direct interest in the partnership assets and the partnership is treated for these purposes, on certain distributions to its partners, as though it had newly acquired an interest in the partnership assets and therefore acquired a new cost basis for the assets. The election, once made, may not be revoked without the consent of the IRS. Due to the complexities and added expense of the tax accounting required to implement a Section 754 election to adjust the basis of our property when
units are sold, taking into account the limitations under our partnership agreement on the sale of our units, we do not intend to make the election, although we reserve the right to do so. Even if we do not make the Section 754 election, however, the basis adjustment described above is mandatory under the Code with respect to the transferee partner only, if at the time a unit is transferred by sale or exchange, or on the death of a partner, our adjusted basis in our property exceeds the fair market value of the property by more than $250,000 immediately after the transfer of the unit. Similarly, a basis adjustment is mandatory under the Code if a partnership distributes property in-kind to a partner (which we will not do), and the sum of the partner's loss on the distribution and the basis increase to the distributed property is more than $250,000.
Accordingly, except in the special circumstances described above where basis adjustments to our property would be mandatory, if we sell property after a limited partner transfers a unit, taxable gain or loss to the transferee of the unit will be measured by the difference between the transferee's share of the amount realized by us on the sale of the property and his or her share of our tax basis in the property (which, in the absence of a Section 754 election, will be unchanged by the transfer of the unit), rather than by the difference between his or her share of the amount realized by us on the sale of the property and the portion of his or her purchase price for the unit that was allocable to the property. As a consequence, the transferee of the unit will be subject to tax on a portion of our proceeds from the sale of the property which, as to the transferee, may constitute a return of capital if the
purchase price paid by the transferee for the unit exceeded his or her share of our adjusted basis for all of our properties. Therefore, you and our other limited partners may have even greater difficulty in attempting to sell your units, since the transferee of your units would obtain no current tax benefits from purchasing your units to the extent that the purchase price exceeds your allocable share of our basis in our assets.
Tax Treatment of Our Termination
If we terminate as a partnership, we must sell our assets, use the sales proceeds and our other funds to repay our liabilities, and distribute any remaining funds to our partners. Sales and other dispositions of our assets would have the tax consequences described in "– Sale or Other Disposition of Partnership Property," above. Any liquidating cash distributions we make that exceed the tax basis of a unit generally would be taxable as capital gain, but also would be subject to recapture as ordinary income as described in "– Sale or Other Disposition of Units," above, assuming the units constitute capital assets in a limited partner's hands. Cash distributions in amounts less than a limited partner's basis in his or her units may result in a loss, generally a capital loss, that would be subject to the general limitations on deducting losses and capital losses.
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Possible
  IRS Audits
We have not sought any rulings from the IRS with respect to any tax issues involving our intended operations as described in this prospectus, nor with respect to the purchase, ownership, redemption or sale of our units by you and our other limited partners. Thus, the IRS may audit our federal information income tax returns and it may not agree with some or all of our tax positions. An audit of our federal information income tax return in any taxable year may result in:
•
an increase in our income;
•
the disallowance of our deductions;
•
the reallocation of income and deductions among our partners;
•
an audit of the personal income tax returns of you and our other limited partners;
•
adjustments of items on your personal income tax returns that are unrelated to this investment; and/or
•
additional federal income taxes and penalty or interest liabilities to you and our other limited partners.
You and our other limited partners must report your share of our income, losses, gains, deductions, and credits (if any) on your personal federal income tax returns in a manner that is consistent with our federal information income tax returns, unless you file a statement with the IRS identifying the inconsistency.
Generally, the federal tax treatment of our income, gains, losses, deductions, and credits (if any) will be determined at the partnership level in a unified partnership proceeding, rather than at the partner level in separate proceedings with you and the our other limited partners. In any audit of us, the IRS will deal with our general partner, serving as our "tax matters partner." Only limited partners owning at least a 1% interest in us will be entitled to receive a separate notice from the IRS of any audit of our federal information income tax return and the results of the audit. However, groups of our limited partners who together own a 5% or greater interest in us may, by giving notice to the IRS, become a "notice group" and designate a member of their group to receive IRS notices. All of our limited partners have the right to participate in any audit of us at their own expense. We are
required to keep you and our other limited partners informed of any administrative and judicial proceedings involving our tax matters. Also, we will keep you and our other limited partners advised of any significant audit activities by the IRS involving us.
Any tax controversy could result in substantial legal and accounting expenses to us, even if the outcome is favorable. Our general partner will participate as our tax matters partner and general partner in all audits, examinations, hearings, actions and other proceedings by tax authorities relating to us at our expense. As our tax matters partner, our general partner may enter into settlement agreements with the IRS that are binding on our limited partners who own less than a 1% interest in us, except limited partners who are members of a notice group, as described above, or who have filed a statement with the IRS stating that our general partner does not have authority to enter into settlement agreements that are binding on them.
Alternative Minimum Tax
With limited exceptions, taxpayers must pay an alternative minimum tax if it exceeds the taxpayer's regular federal income tax for the year. For noncorporate taxpayers, the alternative minimum tax is imposed on alternative minimum taxable income ("AMTI") that is above an exemption amount. AMTI generally is taxable income, plus or minus various adjustments, plus tax preference items. The tax rate for noncorporate taxpayers is 26% for the first $175,000, $87,500 for married individuals filing separately, of a taxpayer's AMTI in excess of the exemption amount; and additional AMTI is taxed at 28%. However, the regular tax rates on capital gains also will apply for purposes of the alternative minimum tax. For tax years beginning in 2006, the exemption amounts for individuals under the "Tax Increase Prevention and Reconciliation Act of 2005 ("TIPRA") are the following amounts:
•
married individuals filing jointly and surviving spouses, $62,550, less 25% of AMTI exceeding $150,000 (zero exemption when AMTI is $400,200);
•
unmarried individuals, $42,500, less 25% of AMTI exceeding $112,500 (zero exemption when AMTI is $282,500); and
•
married individuals filing separately, $31,275, less 25% of AMTI exceeding $75,000 (zero exemption when AMTI is $200,100). Also, AMTI of married individuals filing separately is increased by the lesser of $31,275 or 25% of the excess of AMTI (without regard to the exemption reduction) over $200,100.
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Some of the principal adjustments to taxable income that are used to determine AMTI are summarized below.
•
Depreciation deductions may not exceed deductions computed using the 150% declining balance method and, for property placed in service before January 1, 1999, using an extended recovery period.
•
Miscellaneous itemized deductions are not allowed.
•
Medical expenses are deductible only to the extent they exceed 10% of adjusted gross income.
•
State and local property taxes and income taxes are not deductible.
•
Interest deductions are restricted.
•
The standard deduction and personal exemptions are not allowed.
•
Only some types of operating losses are deductible.
•
Different rules under the Code apply to incentive stock options that may require earlier recognition of income.
The principal tax preference items that must be added to taxable income for alternative minimum tax purposes include certain excess intangible drilling costs and tax-exempt interest earned on certain private activity bonds.
The principal partnership tax items that may have an impact on your and our other limited partners' AMTI as a result of investing in us are cost recovery deductions on the portion of our equipment leased to others under operating leases, which generally will be computed for regular federal income tax purposes using the 200% declining balance method, rather than the 150% declining balance method used for alternative minimum tax purposes and deductions relating to our interest expenses on borrowings we expect to obtain to increase our portfolio of equipment, leases and secured loans. See "– Depreciation," above, and the following table.
Illustration of How Cost Recovery Adjustments Under an
Equipment Leasing Program's Operating Leases
Can Affect an Investor's AMTI ("Alternative Minimum Taxable Income")
(See the footnotes to the following table for the principal assumptions)
Cost
          Recovery
Period
Deduction
          for Regular
Tax
Deduction
          for
AMT
Increase
          or (Decrease) in Investor's AMTI
Compared to Investor's Regular Tax Taxable
Income
Year
          1
$
14,290
$
10,710
$
3,580
Year
          2
$
24,490
$
19,130
$
5,360
Year
          3
$
17,490
$
15,030
$
2,460
Year
          4
$
12,490
$
12,250
$
240
Year
          5
$
8,930
$
12,250
($3,320
)
Year
          6
$
8,920
$
12,250
($3,330
)
Year
          7
$
8,930
$
12,250
($3,320
)
Year
          8
$
4,460
$
6,130
($1,670
)
Total
$
100,000
$
100,000
–0–
Thus, the investor's share of the program's depreciation deductions for alternative minimum tax purposes is:
•
less than those deductions for regular tax purposes during the first four years; but
•
greater than those deductions for regular tax purposes during the last four years.
The above table assumes that:
(1)
the program's only cost recovery deductions for the taxable year are for general office equipment that is classified as 7-year property for both regular tax and alternative minimum tax purposes:
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(2)
the program's purchase price for the property is $10 million (which includes leverage);
(3)
the investor made a $100,000 (1% of the program's total capital) investment;
(4)
the investor's allocable 1% share of the program's basis (i.e., purchase price) in the property is $100,000;
(5)
the program has a full taxable year of 12 months; and
(6)
the mid-year convention is used, which has the effect of adding another year to the 7-year cost recovery period.
The rules relating to the alternative minimum tax for corporations are different from those discussed above. All prospective limited partners contemplating purchasing our units are urged to seek advice based on their particular circumstances from an independent tax advisor as to the likelihood of them incurring or increasing any alternative minimum tax liability because of an investment in us, and any changes in the law relating to the alternative minimum tax since the date of this prospectus.
Profit Motive, IRS Anti-Abuse Rule and Judicial Doctrines Limitations on Deductions
Your ability to deduct your share of our tax losses could be lost if we lack the appropriate profit motive. There is a presumption under §183 of the Code that an activity is engaged in for profit if, in any three of five consecutive taxable years, the gross income derived from the activity exceeds the deductions attributable to the activity. Thus, if we fail to show a profit in at least three out of five consecutive years this presumption will not be available and the possibility that the IRS could successfully challenge your share of our tax losses would be substantially increased. The fact that the possibility of ultimately obtaining profits is uncertain, standing alone, does not appear to be sufficient grounds for the denial of losses.
Also, if a principal purpose of a partnership is to reduce substantially its partners' federal income tax liability in a manner that is inconsistent with the intent of the partnership rules of the Code, based on all the facts and circumstances, the IRS is authorized under Treas. Reg. §1.701-2, which we refer to as the "IRS anti-abuse rule," to remedy the abuse. Our special counsel considered the IRS anti-abuse rule, as well as the possible application to us and our intended activities of potentially relevant judicial doctrines, including the step transaction, business purpose, economic substance, substance over form, and sham transaction doctrines, which, if applicable to us, would deny or limit our tax deductions and tax losses. Under these judicial doctrines, for example, tax deductions and losses from a transaction or investment generally will be disallowed if the transaction or
investment has no economic substance apart from tax benefits. Special counsel, however, has expressed the opinion that we will possess the requisite profit motive under §183 of the Code, and the IRS anti-abuse rule in Treas. Reg. §1.701-2 and the potentially relevant judicial doctrines listed above will not have a material adverse effect on the tax consequences of an investment in us by a typical limited partner as described in special counsel's opinions. In this regard, special counsel's opinions are based in part on:
•
our general partner's representation that our principal purpose is to conduct our business as described in this prospectus on a profitable basis to you and our other limited partners, apart from tax benefits; and
•
the abilities and experience of our general partner's management. See the "Management" section of this prospectus and "Appendix B – Prior Performance Tables," to this prospectus.
Interest and Penalties
Taxpayers must pay interest on underpayments of federal income taxes and the Code contains various penalties, including a penalty under §6662 of the Code equal to 20% of the amount of a substantial understatement of federal income tax liability. There is a substantial understatement of federal income taxes by a noncorporate taxpayer if the correct income tax, as finally determined, exceeds the income tax  actually shown on his or her tax return by the greater of 10% of the correct tax or $5,000. A noncorporate taxpayer may avoid this penalty if the understatement was not attributable to a "tax shelter," as that term is defined below, and there is or was substantial authority for the taxpayer's tax treatment of the item that caused the understatement, or if the relevant facts were adequately disclosed on the taxpayer's tax return and the taxpayer had a reasonable basis for the tax
treatment of that item. However, in the case of an understatement that is attributable to a "tax shelter," as that term is defined below, which may include us for this purpose, the penalty may be avoided only if there was reasonable cause for the underpayment and the taxpayer acted in good faith, or there is or was substantial authority for the taxpayer's treatment of the item and the taxpayer reasonably believed that his or her tax treatment of the item was more likely than not the proper treatment. For purposes of this penalty, the term "tax shelter" includes a partnership if a "significant" purpose of the partnership is the avoidance or evasion of federal income tax. In this regard, because the IRS has not explained what a "significant" purpose of avoiding or evading federal income taxes means, our special counsel cannot express an opinion as to whether we are a "tax shelter" as defined by the Code for purposes of this
penalty.
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In addition, there is a 20% penalty under §6662A of the Code for a reportable transaction understatement of federal income taxes on a taxpayer's personal federal income tax return for any tax year. This penalty is increased from 20% to 30%, and a "reasonable cause" exception to the penalty is not available, if the taxpayer fails to properly disclose his participation in a reportable transaction to the IRS, whether or not there actually is an understatement of federal taxes on the taxpayer's return with respect to the reportable transaction. A reportable transaction understatement generally is the amount of the increase (if any) in taxable income resulting from the proper tax treatment of a tax item instead of the taxpayer's treatment of the tax item on the taxpayer's tax return, multiplied by the highest applicable income tax rate. A tax item is subject to these rules if it
is attributable to:
•
any listed transaction (a transaction is a listed transaction if it is the same as, or substantially similar to, a transaction that the IRS has publicly determined is a tax avoidance transaction); and
•
any of four other types of reportable transactions, if a "significant" purpose of the transaction is federal income tax avoidance or evasion. As discussed above, because of a lack of clear legal authorities, special counsel is unable to render an opinion as to whether or not we would be deemed to have a significant purpose of tax avoidance.
One of the four types of reportable transactions noted above that are in addition to listed transactions, is a "loss transaction," if a significant purpose of the transaction is federal income tax avoidance or evasion. Under Treas. Reg. §1.6011-4, a loss transaction, subject to certain exceptions, is any investment resulting in a partnership or any noncorporate partner of a partnership claiming:
•
a loss under §165 of the Code of at least $2 million in any single taxable year; or
•
$4 million in aggregate §165 losses in the taxable year that the investment is entered into and the five succeeding taxable years combined.
For this purpose, a §165 loss includes certain amounts deductible under any provision of the Code that treats a transaction as a sale or other disposition or otherwise results in a deduction under §165. Losses under §165 from fire, storm or other casualty, theft or a compulsory or involuntary conversion are not taken into account in determining whether a transaction is a loss transaction. With respect to our intended activities, under IRS rulings a loss under §165 from the sale or exchange of our equipment, leases or secured loans would not be taken into account in determining whether we are a loss transaction type of reportable transaction if the asset we sold at a loss had not been separated from any portion of the income it generated and the basis of the asset (for purposes of determining the loss) was a qualifying basis. In this regard, our basis in our equipment, leases and secured
loans (less adjustments for any allowable depreciation, amortization, or casualty loss) will be a qualifying basis if it is equal to, and is determined solely by reference to, the amount paid in cash by us for the asset. However, because we intend to securitize a significant portion of our equipment portfolio, any losses from the eventual sale of our equipment assets may not qualify for this exclusion from §165 losses for purposes of the reportable transaction rules if the securitization is treated by the IRS for this purpose as separating from a portion of the income they generated, as discussed above. Generally, an amount we paid in cash would not be disregarded merely because we issued a debt instrument to obtain the cash. However, if we issued a debt instrument to the person (or a related party) who sold the asset to us or assumed a debt instrument (or took an asset subject to a debt instrument) issued by the person (or a related party) who sold the asset to us, we would be
treated as having paid cash for the asset only if the debt instrument was secured by the asset and all amounts due under the debt instrument were paid in cash no later than the time we sold the asset for which the loss was claimed.
Depending primarily on the dollar amount we have invested in our equipment portfolio (including the amounts of our borrowings and securitizations), the types of equipment investments and the sales or other dispositions we make of our equipment portfolio, it is possible (although not anticipated by us) that we could realize a §165 loss, or aggregate §165 losses, that would meet one or both of the dollar amount thresholds described above. Becoming a reportable transaction would not, by itself, mean that our tax treatment of our activities was improper or that there was a reportable transaction understatement of our taxable income or of the federal income taxes owed by you or our other limited partners on our taxable income. It would, however, increase the likelihood that the IRS would audit our annual information income tax returns. See the "Risk Factors – An IRS Audit of Our Annual Federal
Information Tax Return May Result in Adjustments to, or An Audit of, Your Personal Income Tax Returns," section  of this prospectus. In each taxable year, if any, in which we determined we were a reportable transaction, we would be required to file an information return with the IRS. In addition, each material advisor to a reportable transaction, which would include our general partner if we ever determine that we are, or are reasonably likely to become, a reportable transaction, must maintain a list that identifies you and our other investors, and provides any other information required by the IRS concerning our limited partners' investments in us. No filing by you and our other limited partners would be required unless your allocable share of our §165 losses separately met either the $2 million or the $4 million threshold amounts described above, or we become a reportable transaction for some reason other than §165 losses and you were deemed under the Code and
the Treasury Regulations to have participated in us as a reportable transaction. Again, however, merely disclosing participation in a reportable transaction to the IRS when required to do so has no effect on the legal determination of whether any tax position we have taken is proper or improper. For individuals there is a $10,000 penalty for failing to disclose participation in a reportable transaction (other than a listed transaction for which the penalties are much greater) when required to do so, even if it is ultimately found by the IRS or the courts that there was no understatement of federal taxes with respect to the reportable transaction.
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State
  and Local Taxation
Your share of our taxable income or loss generally must be included in determining your reportable income for state or local tax purposes in the jurisdiction where you reside, and other states in which we do business may require you and our other limited partners to file state income tax returns and may impose taxes on your pro rata share of our income derived from that state. In addition, we may be required to withhold state and local taxes on your share of our income or assets, regardless of whether we make cash distributions to you. Any tax losses generated by our operations in one state may not be available to offset income from our operations in other states. To the extent that you pay tax to a state by virtue of our operations within that state, you may be entitled to a deduction or credit against tax owed to your state of residence with respect to the same income. Your payment of these state and local
taxes may be deductible by you for regular federal income tax purposes if you itemize your deductions (which will be offset  to the extent of any refunds you receive of those taxes that you deducted in a prior year), but not for alternative minimum tax purposes. See "– Alternative Minimum Tax," above.
Your personal federal, state and local income tax returns are your responsibility. It is not practical for our special counsel to evaluate the many different state and local tax laws that may affect you and our other limited partners as a result of our doing business in those states and localities, and our special counsel's tax opinion letter does not include any opinion with respect to your potential liability for state and local taxes or tax return filing requirements. You are urged to seek advice based on your particular circumstances from an independent tax advisor to determine the effect state and local taxes, including gift and death taxes as well as income taxes and tax return filing requirements, may have on you in connection with this investment.
Social Security Benefits and Self-Employment Tax
As a limited partner, your share of our income or loss will not be subject to self-employment tax. In addition, you will not earn any increased benefits under the Social Security Act by investing in us and if you are currently receiving Social Security benefits, your share of our taxable income will not be taken into account in determining any reduction in your Social Security benefits because of "excess earnings."
Estate and Gift Taxation
There is no federal tax on lifetime or testamentary transfers of property between spouses. The gift tax annual exclusion amount is $12,000 per donee in 2006, which will be adjusted in subsequent years for inflation. Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (the "2001 Tax Act"), the maximum estate and gift tax rate of 46% in 2006 will be reduced to 45% from 2007 through 2009. Estates of $2.0 million or less in 2006, 2007 and 2008, which increases to estates of $3.5 million or less in 2009, are not subject to federal estate tax to the extent those exemption amounts (i.e., unified credit equivalents) were not previously used, in whole or in part, by the decedent to reduce federal gift taxes on any lifetime gifts in excess of the applicable annual exclusion amount for gifts. Under the 2001 Tax Act, the federal estate tax will be repealed in 2010, and the maximum gift tax rate
in 2010 will be 35%. In 2011, however, the federal estate and gift taxes are scheduled to be reinstated under the rules in effect before the 2001 Tax Act was enacted.
Federal Tax Treatment of Foreign Investors
Our income generally will be subject to U.S. taxation in the hands of foreign investors, and foreign investors may be required to file a U.S. federal income tax return to report their respective shares of our income, gains, losses, and deductions. Additionally, we are required to withhold tax on each foreign investor's share of our income, whether or not any cash distributions are made. We will deduct any amount required to be withheld from distributions otherwise payable to the foreign investor, and the foreign investor will be liable to repay us for any withholdings in excess of the distributions to which he or she is otherwise entitled.
Foreign investors are urged to seek advice based on their particular circumstances from an independent tax advisor regarding the applicability of these rules and the other tax consequences of an investment in us.
Federal Taxation of Employee Benefit Plans and Other Tax-Exempt Organizations
Employee benefit plans, such as qualified pension and profit sharing plans, Keogh plans and individual retirement accounts ("IRAs"), generally are exempt from federal income tax. However, any unrelated business taxable income ("UBTI") received by an otherwise tax-exempt entity, plan or trust that exceeds $1,000 in any taxable year is subject to an unrelated business income tax. Other charitable and tax-exempt organizations in addition to those listed above, may also subject to tax on UBTI. If a tax-exempt entity purchases our units, most of its share of our net income, if any, in a given year will be UBTI. In addition, if a charitable remainder trust has any UBTI, then all of its otherwise non-taxable income will be subject to tax.
We urge tax-exempt entities considering the purchase of our units to seek advice based on their particular circumstances from an
independent tax advisor regarding the tax consequences to them of investing in us, including the likelihood of their incurring or increasing any UBTI.
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Changes
  in the Law
Your investment in us may be affected by changes in the tax laws. For example, in 2003 the top four federal income tax brackets for individuals were reduced through December 31, 2010, including reducing the top bracket to 35% from 38.6%. The lower federal income tax rates will reduce to some degree the amount of taxes you can save by virtue of your share of our deductions and losses in any taxable year. On the other hand, the lower federal income tax rates also will reduce the amount of federal income tax liability incurred by you on your share of our net income in any taxable year. However, the federal income tax brackets discussed above may be changed again, even before 2011, and other changes in the tax laws could be made that would have an adverse effect on your anticipated tax benefits from an investment in us.
You are urged to seek advice based on your particular circumstances from an independent tax advisor with respect to the impact of recent legislation on your investment in us and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in us.
INVESTMENT BY QUALIFIED PLANS
Fiduciaries under ERISA
Under the federal law commonly known as ERISA, fiduciaries of qualified plans must act solely for the benefit of the plan's participants and beneficiaries. A fiduciary must:
•
perform its duties with the skill, prudence and diligence of a prudent person;
•
diversify the plan's investments so as to minimize the risk of large losses; and
•
act in accordance with the plan's governing documents.
Fiduciaries include anyone who exercises any control over the management or the funds or other property of the plan. In addition, a plan participant who exercises control over his or her individual account in the qualified plan under a self-directed investment arrangement will generally be held responsible for the consequences of his or her investment decisions. Also, some qualified plans of sole proprietorships, partnerships and closely-held corporations are generally not subject to ERISA's fiduciary duty rules, although they, as well as IRAs and self-directed accounts, are subject to the IRS's prohibited transaction rules, which are discussed below. IRAs generally are not subject to ERISA's fiduciary duty rules.
We urge each potential investor in us who is subject to ERISA's fiduciary duty rules with respect to a qualified plan to consider those rules in the context of the particular circumstances of the qualified plan before making an investment in us.
Prohibited Transactions
ERISA and the Code prohibit qualified plans and IRAs from engaging in certain transactions involving assets of the qualified plan or IRA, which are referred to as "prohibited transactions," with certain parties, which are referred to as "disqualified persons."  Disqualified persons include:
•
fiduciaries of the qualified plan or IRA;
•
officers, directors and certain shareholders and other owners of the company sponsoring the qualified plan; and
•
persons and legal entities sharing certain family or ownership relationships with other disqualified persons.
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In addition, the beneficiary of an IRA is generally considered to be a disqualified person for purposes of the prohibited transaction rules. Types of prohibited transactions include:
•
direct or indirect transfers of a qualified plan's or IRA's assets to a disqualified person;
•
the use of a qualified plan's or IRA's assets by a fiduciary for his or her personal benefit; and
•
a fiduciary receiving cash or other consideration for his or her own benefit from a third-party in connection with a transaction involving the assets of the qualified plan or the IRA.
Under ERISA, a disqualified person that engages in a prohibited transaction must return any profits to the plan and pay back any losses to the plan. Also, the Code imposes excise taxes on a disqualified person that engages in a prohibited transaction with a qualified plan or IRA. These prohibited transactions generally must be undone by the disqualified person to avoid additional penalties. In addition, if a taxpayer engages in a prohibited transaction with an IRA in which he or she is a beneficiary, the IRA will cease being an IRA and all of its assets will be treated as if they had been distributed to the taxpayer in the year in which the prohibited transaction occurred.
Subject to the rules discussed below, in order to avoid the occurrence of a prohibited transaction under the Code or ERISA, our units may not be purchased by a qualified plan or an IRA with funds or other assets for which we or any of our affiliates are fiduciaries.
Plan Assets
In some circumstances, ERISA applies a look-through rule under which the assets of an entity in which a qualified plan or IRA has invested are deemed to be the assets of the qualified plan or the IRA itself. If our assets were determined to be plan assets, then fiduciaries of the qualified plans and IRAs that purchased our units might be subject to liability for actions that we take. In addition, some of the transactions described in this prospectus in which we might engage, including transactions with our affiliates, may be prohibited transactions, even if the original purchase of our units by the plan or IRA was not a prohibited transaction. Moreover, fiduciaries of qualified plans or IRAs subject to ERISA's fiduciary duty rules might be deemed to have improperly delegated their fiduciary responsibilities to us by investing in us. ERISA, however, exempts certain investments from the look-through rule.
Under the Department of Labor's current regulations, our assets will not be treated as plan assets of our qualified plan or IRA limited partners if:
•
our units are publicly offered, which means that our units must be "freely transferable," as that term is defined by ERISA;
•
less than 25% of our units are owned by qualified plans, IRAs, and certain other employee benefit plans; or
•
we are an operating company.
We cannot be certain that our units will be deemed to be freely transferable, or that we will be deemed to be an operating company, because those issues involve factual determinations. Therefore, we will rely on the "less than 25%" ownership exemption, and we will ensure that qualified plans, IRAs, and certain other employee benefit plan investors at all times own less than 25% of the total number of our outstanding units. In making this determination, we will, as provided in the Department of Labor's regulations, disregard the value of any units held by our general partner, any person who provides investment advice for a fee with respect to our assets, and any affiliate of those persons.
Other ERISA Considerations
In addition to the considerations described above in connection with the "plan asset" issue, a fiduciary's decision to cause a qualified plan or IRA to purchase our units should involve, among other factors, considerations that include whether:
•
the purchase is prudent in light of the illiquid nature of our units and potential minimum required distributions from the plan or IRA, see the "Risk Factors – Your Ability to Dispose of Your Investment in Us Will Be Limited" section of this prospectus;
•
the investment will provide sufficient cash distributions in light of the qualified plan's likely required benefit payments and other needs for liquidity;
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•
the evaluation of the investment has properly taken into account the potential costs of determining and paying any amounts of federal income tax that may be owed on unrelated business taxable income derived from us; and
•
the fair market value of our units will be sufficiently ascertainable, and with sufficient frequency, to enable the qualified plan or IRA to value its assets in accordance with the rules and policies applicable to the qualified plan or IRA.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
We have not yet begun operations and will depend on the proceeds of this offering of our units to carry on our proposed activities. We intend to use the offering proceeds, after paying dealer-manager fees, sales commissions, the bona fide accountable due diligence reimbursements, the organization and offering expense allowance and other permitted fees and establishing a working capital reserve, to purchase and lease equipment, finance secured loans and purchase portfolios of equipment subject to existing leases. We will seek to finance approximately 80% of the purchase price of our equipment by borrowing funds through warehouse loan and CP conduit facilities as well as through term note securitizations. However, as of the date of this prospectus we have no arrangements with, or commitments from, any lender to provide financing to us. To the extent that our offering proceeds are less than the maximum, or we are
unable to obtain warehouse or CP conduit financing or engage in term note securitization financings, our ability to diversify our investments will be reduced, which could reduce the return on your investment in us.
Initially, we intend to establish working capital reserves of approximately 1% of our offering proceeds, which we believe will be sufficient to satisfy our liquidity requirements. However, our operating costs will adversely affect our liquidity and to the extent that our working capital reserves are insufficient to satisfy our cash requirements, we will be required to obtain additional funds through third-party financing, which may not be available on terms acceptable to us or at the times when we need it.
Fluctuations in prevailing interest rates will affect us, because the cost of capital as reflected in interest rates is a significant factor in determining the market rate for our equipment leases and secured loans and the cost of the funds we intend to borrow to increase the size of our portfolio. Higher interest rates will:
•
increase our borrowing costs;
•
reduce our yield on leveraged investments;
•
reduce the amount of financing we may be able to obtain because of a reduction in value of our fixed-rate equipment leases and secured loans; and
•
possibly, reduce the desirability of using leverage to increase the size of our portfolio.
Interest rate changes generally will result in corresponding changes in rates on new equipment leases and secured loans as well as variable rate financing or new financing. Except as discussed above, interest rate fluctuations would generally have little or no effect on existing equipment leases as their rates would generally be fixed.
We expect that our warehouse and CP conduit borrowings will have variable interest rates and that some or all of any term note securitizations we may obtain will also have variable rates. Because warehouse debt is short-term, we do not believe it carries material interest rate risk. However, we will seek to manage interest rate risk in any CP conduit or variable rate term note securitization by engaging in hedging transactions that would have the effect of fixing our interest rate on those obligations.
SUMMARY OF OUR PARTNERSHIP AGREEMENT
The following is a brief summary of the material provisions of our amended and restated agreement of limited partnership that are not covered elsewhere in this prospectus. The partnership agreement sets out the terms and conditions on which we will conduct our business and affairs, including the rights and obligations of you and our other limited partners. A copy of our partnership agreement is included as Appendix A to this prospectus. You should study the entire partnership agreement carefully before purchasing our units.
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General
We are a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act with LEAF Asset Management, LLC as our general partner. Our registered office and principal place of business in Delaware is 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801. Our general partner's principal place of business is 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103. We may change our principal place of business by written notice to you.
Our term began when we filed a certificate of limited partnership with the Delaware Department of State in May 2006. Under our partnership agreement, we will terminate at midnight on December 31, 2031, or earlier if a dissolution event occurs as described in "– Events Causing Dissolution," below. However, our general partner anticipates that our actual term before we cease operations as a limited partnership and liquidate our assets will be much shorter, approximately 9 years after the date of this prospectus. See the "Risk Factors – Your Ability to Dispose of Your Investment in Us Will Be Limited," section of this prospectus.
Capital
  Contributions
Our general partner contributed $1,000 in cash as its capital contribution to us in exchange for a 1% interest in our income, losses and cash distributions. Each limited partner will contribute $100 to our capital for each unit purchased, other than the original limited partner and the limited partners (including our general partner and its affiliates) who purchase units with the price discounts described in the "Plan of Distribution" section of this prospectus. You and our other limited partners are not obligated to make additional capital contributions to us, except as described below under "– Limited Liability of Limited Partners."
Powers
  of our General Partner
Except as otherwise specifically provided in our partnership agreement, our general partner will have complete and exclusive discretion in the management of our business. You will not be permitted to participate in our management. Except to the extent limited by Delaware law, our general partner may delegate any or all of its duties under the partnership agreement to another person, including any of its affiliates. The partnership agreement designates our general partner as our tax matters partner and authorizes and directs it to represent us and you and our other limited partners in connection with all examinations of our affairs by tax authorities and any resulting administrative or judicial proceedings, and to expend our funds in doing so.
Liability
  of Our General Partner
Our general partner will be liable for all of our general obligations to the extent we do not pay them. However, our general partner will not have any personal liability for:
•
obligations that are specifically nonrecourse to us; or
•
the repayment of your capital contribution.
Limited
  Liability of Limited Partners
Our units are not assessable, and you will not have any personal liability for any of our obligations or liabilities. You will only be liable for our obligations and liabilities to the extent of your capital contribution and your pro rata share of our undistributed profits and other assets. However, if you participate in the management or control of our affairs, you may be deemed to be acting as a general partner and you may lose your limited liability as against third-parties who reasonably believe, in doing business with us, that you are a general partner. In addition, Delaware law provides that you may be liable to us for a distribution we make to you if, after giving effect to the distribution, our liabilities exceed the fair value of our assets.
Withdrawal
  or Removal of Our General Partner
Our general partner may not voluntarily withdraw as our general partner without:
•
60 days' advance written notice to you and our other limited partners;
•
obtaining an opinion of counsel that the withdrawal will not cause our termination as a limited partnership or materially and adversely affect our federal tax status as a partnership; and
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•
the
        selection of a substitute general partner, and the acceptance of its appointment
        as our substitute general partner by limited partners owning a majority
        of our units.
Our
  general partner may be removed by limited partners owning a majority of our
  units. Neither our general partner nor any of its affiliates may participate
  in any vote by our limited partners to remove our general partner as general
  partner.
Consequences
  of Withdrawal or Removal of Our General Partner
On the withdrawal or removal of our general partner, we must pay our general partner the fair market value of its partnership interest, plus or minus, as the case may be, accrued but unpaid fees owed to our general partner by us and the difference between any other amounts owed to our general partner by us and amounts owed to us by our general partner. The method of payment must be fair and protect our solvency and liquidity. The method of payment is deemed fair if:
•
in a voluntary withdrawal, it provides for a non-interest bearing unsecured promissory note with principal payable only from distributions our general partner otherwise would have received; or
•
in an involuntary removal, it provides for a rate of interest equal to the lesser of the rate we would obtain from an unrelated bank lender for an unsecured 60-month loan or the "Prime Rate" of interest published in the Money Rates section of the Wall Street Journal, plus 4%, and provides for payment of principal and interest in 60 equal monthly installments.
Liability
  of Withdrawn or Removed General Partner
After the withdrawal or removal of our general partner as our general partner, it will remain liable for all obligations and liabilities incurred by it or by us while it was acting as our general partner and for which it was liable as our general partner. Our general partner will be free of any obligation or liability arising from our activities after the time its withdrawal or removal becomes effective.
Transfer
  of Units
There is no public or secondary market for our units, and we do not expect that a market will develop. You may transfer or assign your units to any person, whom we call an assignee, only if you satisfy the following conditions:
•
you and the assignee sign a document satisfactory to our general partner, that:
•
states your intention that the assignee is to become a substitute limited partner, if that is the case;
•
shows that there is a legal transfer and binds the assignee to all of the terms and provisions of our partnership agreement;
•
includes a representation by both you and the assignee that the assignment or transfer complies with all applicable laws, including the applicable minimum investment and investor suitability requirements under state securities laws; and
•
the assignee pays us a fee that will not exceed $150 for our expenses.
Also, unless we consent, no units may be assigned:
•
to a minor or incompetent unless a guardian, custodian or conservator has been appointed for the person;
•
to any person if, in our counsel's opinion, the assignment would terminate our taxable year or adversely affect our status as a limited partnership for federal income tax purposes;
•
to any person if the assignment would affect our existence or qualification as a limited partnership under Delaware law or the laws of any other jurisdiction in which we conduct business;
•
to any person not permitted to be an assignee under applicable law, including federal and state securities laws;
•
if the assignment is for less than 50 units unless the assignment is for all of your units;
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•
if
        the assignment would result in your keeping a portion of your units that
        is less than the greater of:
•
50 units; or
•
the minimum number of units required to be purchased under the minimum investment standards applicable under the state securities laws to your initial purchase of units;
•
if, in our general partner's reasonable belief, the assignment might violate applicable law; or
•
if the effect of the assignment would be to cause the equity participation in us by certain benefit plan investors to equal or exceed 25% of our total outstanding units at any time.
Any attempt to assign or transfer units in violation of our partnership agreement or applicable law will be ineffective. We will recognize assignments of units as of the last day of the month in which all conditions to the assignment have been satisfied, and we will amend our partnership agreement at least quarterly to effect the substitution of substitute limited partners.
In addition, our partnership agreement provides that so long as there are adverse federal income tax consequences from being treated as a publicly traded partnership, we will not permit any interest in a unit to be assigned or sold which does not meet at least one of the "secondary market" safe harbors set forth in the Treasury Regulations. Under these rules, for example, any transfer that would cause the total of all unit transfers or assignments in a taxable year to exceed 2% of our total capital or profits interests, excluding exempted private transfers, would be prohibited. We anticipate that the "private transfers" and the 2% "lack of actual trading" safe harbors will be the only safe harbors potentially available to you and our other limited partners. For a more detailed summary of these safe harbors, see the "Federal Income Tax Consequences – Partnership
Classification" section of this prospectus. If we determine that a purported transfer or assignment of a unit was effected on a secondary market, we have the right to refuse to recognize the proposed sale and to take any action we deem necessary or appropriate so that the proposed sale is not in fact recognized. Also, you must provide us with all information with regard to any transfer or assignment of your units (or any proposed transfer or assignment of your units) that we deem necessary to determine whether it occurred or will occur on a secondary market.
Redemption
  of Units
We are permitted by the partnership agreement to redeem your units on your request at any time. However, any redemption of units is in our general partner's sole discretion. For a more complete discussion of the redemption of units, you should read the "Redemption of Units" section of this prospectus.
Books
  and Records
We will maintain our books and records at our general partner's principal office. You will have the right to have a copy of a list of our limited partners (the "Participant List" described below) mailed to you for a reasonable copying charge. However, you must first certify that the list will not be:
•
reproduced and sold to another party;
•
used for any commercial purpose unrelated to your interest in partnership matters; or
•
used for an unlawful purpose.
The Participant List is an alphabetical list of the names, addresses, and business telephone numbers of our limited partners along with the number of units held by each of them. The Participant List is maintained as part of our books and records, and will be updated at least quarterly to reflect changes in the information it contains.
If we or our general partner neglect or refuse to exhibit, produce, or mail a copy of the Participant List as requested, our general partner will be liable to any limited partner requesting the list for the costs, including attorneys' fees, incurred by that limited partner for compelling the production of the Participant List, and for actual damages suffered by any limited partner by reason of such refusal or neglect. It is a defense that the actual purpose and reason for the request for inspection or for a copy of the Participant List is to secure the Participant List or other information for the purpose of selling the list or copies of the list, or using the list or other information for a commercial purpose other than in the interest of the applicant as a limited partner relative to our affairs. Thus, our general partner will require the limited partner requesting the Participant List to first
represent that the list is not being requested for a commercial purpose unrelated to the limited partner's interest in us. The remedies provided to our limited partners requesting copies of the Participant List are in addition to, and do not in any way limit, other remedies available to our limited partners under federal law or the laws of any state.
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In addition, you or your representative will have the right, on written request, subject to reasonable notice and at your own expense, to inspect and copy at our general partner's principal office any other partnership books and records that we maintain.
Meetings
  of Limited Partners
There will be no annual or other periodic meetings of the limited partners. However, a meeting of our limited partners must be called by our general partner following its receipt of written request(s), either in person or by registered mail, for a meeting on any matter on which our limited partners may vote from limited partners holding 10% or more of the then outstanding units. Every request by our limited partners for a meeting must state with reasonable specificity the purpose(s) for which the meeting is to be held and the text of any matter, resolution or action proposed to be voted on by our limited partners at the meeting. Within 10 days following the receipt of the request, our general partner will give notice to all limited partners of the meeting in the manner and for a time and place as specified in our partnership agreement. In addition, our general partner may, and if so requested by our limited
partners in the manner described above, must, submit the proposed matter, resolution or action for action by consent of our limited partners, in lieu of a meeting. Also, our general partner may call meetings of our limited partners at any time. However, in lieu of a meeting, any matter that could be voted on at a meeting of our limited partners may be submitted for action by consent of our limited partners.
Voting
  Rights of Limited Partners
Limited partners owning a majority of our units may take action on any of the following matters without our general partner's concurrence:
•
an amendment of the partnership agreement, subject to certain limitations discussed in "– Amendment by Limited Partners Without Our General Partner's Concurrence," below;
•
our dissolution;
•
the removal of our general partner and the election of one or more substitute general partners;
•
the sale of all or substantially all of our assets, except in connection with securitization financings or sales in the ordinary course of liquidating our investments after the reinvestment period; and
•
the cancellation of any contract for services to us with our general partner or its affiliates, subject to certain exceptions such as the Origination and Servicing Agreement, without penalty on 60 days notice.
Our general partner and its affiliates may not vote or consent on matters submitted to our limited partners regarding the removal of our general partner or regarding any transaction between us and our general partner or any of its affiliates. In determining the requisite percentage of units necessary to approve a matter on which our general partner or its affiliates may not vote or consent, any units owned by our general partner or its affiliates cannot be included in either the numerator or the denominator.
Limited partners who dissent from any matter approved by limited partners owning a majority of our units are bound by the vote and do not have a right to appraisal or automatic repurchase of their units.
Amendment
  by Limited Partners Without Our General Partner's Concurrence
Amendments of our partnership agreement by our limited partners without our general partner's concurrence may not allow our limited partners to take part in the control or management of our business, or contract away our general partner's fiduciary duties to our limited partners. In addition, any proposed amendment of the partnership agreement that would:
•
change how our partnership agreement can be amended, will require the consent of all of our limited partners;
•
alter the rights, powers, duties or obligations of our general partner, will require our general partner's consent; or
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•
adversely affect any partner's share of our cash distributions or allocations of income or loss, other than in connection with the sale of our units in this offering, will require the consent of each partner affected by the change.
Amendment
  by Our General Partner Without the Consent of the Limited Partners
Our general partner may, without the consent of you and our other limited partners, amend our partnership agreement for the benefit or protection of you and our other limited partners, including any one or more of the following:
•
adding to our general partner's duties or obligations, or surrendering any of its rights or powers;
•
curing any ambiguity in, or correcting or supplementing any provision of, our partnership agreement;
•
preserving our status as a limited partnership for federal income tax purposes;
•
deleting or adding any provision that the SEC or any other regulatory body or official requires to be deleted or added; or
•
changing our name or the location of our principal office.
Events Causing Dissolution
We will dissolve when any of the following events occurs:
•
withdrawal or removal of our general partner if a substitute general partner has not been admitted;
•
our dissolution is approved on a vote of limited partners owning a majority of our units;
•
the sale of all or substantially all of our assets other than in connection with a financing transaction, such as a securitization;
•
the expiration of our term; or
•
any other event which would cause us to dissolve under Delaware law.
Liquidation
When a dissolution event occurs, we will liquidate our investments and other assets and we will distribute the proceeds, after we pay our debts and expenses, to our partners in accordance with their percentage ownership in us. Our existence will terminate once we have paid all our debts and expenses and made final distributions to our partners. You are not guaranteed the return of, or a return on, your investment in us as a result of any of these distributions.
Roll-Up
  Transactions
We may enter into a "roll-up" transaction only on the vote or consent of limited partners owning a majority of our units and on satisfaction of certain other conditions described below. A "roll-up transaction" generally is a transaction involving the acquisition, merger, conversion or consolidation of us, as a partnership, with an entity created by, or surviving, the transaction (the "roll-up entity"), and the issuance of securities by the roll-up entity. The term "roll-up" does not cover specified transactions, including our conversion into a different legal form, if there will be no significant adverse change in unit voting rights, our term, the compensation we pay our general partner and its affiliates, our investment objectives or the federal income tax consequences of owning a unit.
In order for us to enter into a proposed roll-up transaction, the additional conditions set forth below must be met.
•
All of our assets must be appraised by a competent, independent expert, which our partnership agreement defines as a person with no material current or prior business or personal relationship with our general partner or its affiliates who is engaged to a substantial extent in the business of rendering appraisals and who is qualified to perform the work. If the appraisal will be included in a prospectus used to offer the securities of a roll-up entity, the appraisal must be filed with the SEC and the states as an exhibit to the registration statement for the offering. Our assets must be appraised on a consistent basis, and the appraisal must be based on an evaluation of all relevant information and indicate the value of our assets as of a date immediately prior to the announcement of the proposed roll-up transaction. The appraisal must assume an orderly liquidation of our assets over
a 12 month period. The terms of the engagement of the independent expert must clearly state that the engagement is for the benefit of us and our limited partners. A summary of the independent appraisal, indicating all material assumptions underlying the appraisal, must be included in a report to our limited partners in connection with the proposed roll-up transaction.
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•
The sponsor of the proposed roll-up transaction must offer to our limited partners who vote "no" on the proposal the option of either:
•
accepting the roll-up securities; or
•
one of the following:
•
remaining as limited partners in us on the same terms and conditions as existed previously; or
•
receiving cash equal to the limited partner's pro rata share of the appraised value of our net assets.
•
We may not participate in any proposed roll-up transaction that would result in our limited partners having voting rights that are less than those provided for under our partnership agreement. If the roll-up entity is a limited partnership, the voting rights of our limited partners must correspond to the voting rights provided for in our partnership agreement to the greatest extent possible.
•
We may not participate in any proposed roll-up transaction that includes provisions that would operate to materially impede or frustrate the accumulation of shares by any purchaser of the securities of the roll-up entity (except to the minimum extent necessary to preserve the tax status of the roll-up entity). We may not participate in any proposed roll-up transaction that would limit the ability of a limited partner to exercise the voting rights of that limited partner's securities of the roll-up entity on the basis of the number of our units held by that limited partner.
•
We may not participate in any proposed roll-up transaction in which our limited partners' rights of access to the records of the roll-up entity would be less than those provided for under our partnership agreement.
•
We may not participate in any proposed roll-up transaction in which any of the costs of the transaction would be borne by us if the roll-up transaction is not approved by our limited partners.
REDEMPTION
  OF UNITS
Redemption
  Price of Units
Your units are illiquid and can be redeemed by us only if the redemption provisions in our partnership agreement, which are summarized below, are met. If we do redeem your units, which is in our general partner's sole discretion, the redemption price for your units will depend on when you present your units for redemption. If you present your units for redemption:
•
during the offering period, the redemption price for one unit will equal the net asset value at that time of one unit as determined by our general partner;
•
during the five year portion of the reinvestment period after the final closing date of this offering, the redemption price for one unit will equal 100% of your unreturned investment for one unit, plus 4% for each full twelve-month period in which you were a limited partner, less the sum of:
•
100% of previous distributions made to you on account of one unit; and
•
100% of any previous allocations to you of investment tax credit amounts for one unit; or
•
during the liquidation period, the redemption price for one unit will equal the equity for one unit as set forth on our balance sheet in our most recent Form 10-Q filed before your redemption request, less 100% of any distributions made to you on account of one unit since the date of the balance sheet.
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The
  redemption price for your units is unlikely to reflect the fair market value
  of your units at the time of redemption, particularly during the liquidation
  period. You may realize a greater return by holding on to your units for the
  duration of our term.
Procedure
  for Redemption of Units
To redeem your units, you must send us a written request in a form satisfactory to us. The request must be signed by all of the owners of the units. We will consider redemption requests to have been made on the earlier of the date the request is personally delivered with receipt acknowledged; or mailed by certified mail, return receipt requested, postage prepaid, at our general partner's address set forth in this prospectus. Within 30 days after we receive your redemption request, we will accept or deny your redemption request.
Restrictions
  on Redemption of Units
We have no obligation to redeem your units, and will do so only in our general partner's sole discretion. Beginning when you are admitted as a limited partner and at any time thereafter, you may request that we redeem your units. In any calendar year, we will not redeem any units that, in the aggregate, together with all other transfers of units made to date during the calendar year, subject to certain exceptions, exceed 2% of our total capital or profits interests, or that we reasonably believe might exceed 2% of our total capital or profits interests, as of the last day of the calendar year. This limitation is required so that we will not be treated as a publicly traded partnership for tax purposes. If we believe that the 2% limitation may be reached before year-end, we may redeem only a portion, or none, of the units for which redemption is sought, and we may decide to allocate, at the date of request
or later in the year, redemption capacity based on the financial hardship of the limited partners requesting redemption.
In addition, we will not redeem units if, in our general partner' s sole discretion, we do not have sufficient cash on hand. We intend to reinvest a substantial portion of our revenues during the reinvestment period, which begins with the initial closing date in this offering and ends five years after the final closing date of this offering. Also, we will not be redeem units if the redemption would impair our capital or our operations, which our general partner will decide in its sole discretion. Cash used to redeem units will reduce our cash available for making investments, reinvestments and distributions to our remaining limited partners. If we receive requests to redeem more units than there are funds available to redeem, we expect to give priority:
•
first, to hardship redemptions (e.g., requests arising from death, major medical expense, family emergency, disability, a material loss of family income, etc.);
•
second, to provide liquidity for IRAs or qualified plans to meet required distributions; and
•
third, to all other redemption requests.
Consequences
  of Redemption of Units
If we redeem all of your units, then you will no longer be a limited partner and you will have no interest in us. However, a redemption of all of your units will not release you from liability to us to the extent of any distributions, including any return of or on your investment, made to you in violation of Delaware law. Also, any gain realized by you on the redemption of your units, if you held them as a capital asset and held them for more than one year, generally will be a capital gain, but your gain may be treated as ordinary income to the extent of your share of:
•
depreciation recapture on our equipment leased to others under operating leases;
•
our substantially appreciated inventory items; and
•
our unrealized receivables.
See the "Federal Income Tax Consequences – Sale or Other Disposition of Units" section of this prospectus.
You are urged to seek advice based on your particular circumstances from an independent tax advisor with respect to the tax consequences to you of a redemption of your units.
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REPORTS
  TO LIMITED PARTNERS
Tax
  Reports
By March 15 of each year, we will send you a statement of your share of our income, gains, losses, deductions and credits, if any, for the previous calendar year just ended to enable you to prepare your income tax returns.
Annual
  Reports
Within 120 days after the end of each year, we will send you an annual report that will include:
•
Our audited financial statements for the fiscal year, including a balance sheet and related statements of operations, cash flows and changes in partners' equity, accompanied by an auditor's report containing an opinion of our accountants.
•
A breakdown, by source, of distributions made during the year to you and to our general partner.
•
A status report with respect to each item of equipment that individually represents at least 10% of the aggregate purchase price of our investments at the end of the year, including information relevant to the condition and use of the equipment.
•
A detailed statement of:
•
the services rendered and compensation paid, and any amounts reimbursed, to our general partner and its affiliates; and
•
a summary of the terms and conditions of any contract with our general partner or its affiliates that was not filed as an exhibit to the registration statement of which this prospectus forms a part.
•
The allocation prepared by our general partner of the costs and expenses reimbursed by us to our general partner and its affiliates will be included within the scope of our annual audit by independent public accountants.
•
Until all amounts contributed to our capital by you and our other limited partners have been invested or committed to investment and reserves, used to pay permitted fees or returned to you and our other limited partners in accordance with our partnership agreement, information regarding investments made by us during the fiscal year.
Quarterly
  Reports
Within 60 days after the end of each of the first three quarters in each year, we will send you an interim report for the quarter that will include:
•
Either:
•
our unaudited financial statements for the quarter, including a balance sheet and related statements of operations, cash flows and changes in partners' equity; or
•
if our units are registered under Section 12(g) of the Securities Exchange Act of 1934, a copy of our Quarterly Report on Form 10-Q filed by us with the SEC.
•
A detailed statement of:
•
the services rendered and compensation paid, and any expenses reimbursed, to our general partner or its affiliates, and
•
a summary of the terms and conditions of any contract with our general partner or its affiliates that was not filed as an exhibit to the registration statement of which this prospectus forms a part.
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•
Until
        all amounts contributed to our capital by you and our other limited partners
        have been invested or committed to investment and reserves, used to pay
        permitted fees or returned to you and our other limited partners in accordance
        with our partnership agreement, information regarding investments made
        by us during the quarter.
Reports
  to State Securities Laws Administrators
Our general partner will submit to all state securities law administrators, including Arizona, California and Ohio, any information concerning us that the administrators require, including, but not limited to:
•
reports and statements required by our partnership agreement to be distributed to you and our other limited partners; and
•
reports required to be filed with the administrators under the applicable state securities laws, regulations or policies, which may include copies of our SEC filings under the Securities Exchange Act of 1934.
PLAN
  OF DISTRIBUTION
Commissions
Our units will be offered on a "best efforts" basis by Chadwick Securities, which is an affiliate of our general partner, acting as dealer-manager, and by other selected registered broker/dealers that are members of the NASD, acting as selling dealers. Chadwick Securities was formed for the purpose of serving as dealer-manager of partnerships sponsored by its affiliates and became an NASD member firm in 2005. This is the first offering in which Chadwick Securities has served as dealer-manager. As of the date of this prospectus, however, the president, other officers and other associated persons of Chadwick Securities have experience with a broker/dealer serving as the dealer-manager of limited partnership offerings. All of these associated of Chadwick Securities were previously associated with Anthem Securities, Inc. when Anthem Securities served as the dealer-manager of LEAF Financial's two
previous equipment leasing and financing programs, and has served as the dealer-manager of other limited partnership offerings sponsored by other indirect subsidiaries of Resource America or its former subsidiary, Atlas America, Inc.. In this regard, Atlas America was a subsidiary of Resource America until 2005, when Resource America completed a spin-off of Atlas America, Inc. and its subsidiaries, which included Anthem Securities.
The dealer-manager will manage and oversee the offering of our units as described above. Best efforts generally means that the dealer-manager and selling dealers will not guarantee that a certain number of units will be sold in this offering. Although the dealer-manager may participate in this offering on the same basis as the selling dealers, it does not anticipate that it will directly sell a material number of units. No selling dealers have been identified as of the date of this prospectus.
Units also may be sold by the officers and directors of our general partner in those states where they are licensed to sell our units or are exempt from such licensing requirements. All offers and sales of units by our general partner's officers and directors will be made under the SEC safe harbor from broker/dealer registration provided by SEC Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the "Act").
We will not pay referral or similar fees to any accountants, attorneys or other persons in connection with the distribution of our units. Subject to the exceptions described below, the dealer-manager will receive on each unit sold:
•
a 3% dealer-manager fee;
•
a 7% sales commission; and
•
an up to .5% reimbursement of the selling dealers' bona fide accountable due diligence expenses.
All of the sales commissions will be reallowed to the selling dealers except sales commissions payable for units sold directly by the dealer-manager, and all of the up to .5% reimbursement of the selling dealers' bona fide accountable due diligence expenses will be reallowed by the dealer-manager to the selling dealers. With respect to the up to .5% reimbursement of a selling dealer's bona fide accountable due diligence expenses, any bill presented by a selling dealer to Chadwick Securities for reimbursement of costs associated with the selling dealer's due diligence activities must be for actual costs, including overhead, incurred by the selling dealer and may not include a profit margin. It is the responsibility of our general partner and Chadwick Securities to ensure compliance with the above guideline. If the selling dealer provides Chadwick Securities an itemized bill for actual due
diligence expenses that is in excess of .5%, then the excess over .5% will not be included within the NASD's 10% underwriting compensation guideline, but instead will be included within the NASD's 4.5% organization and offering costs guideline under NASD Conduct Rule 2810.
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Out of its 3% dealer-manager fee, the dealer-manager may pay selling dealers a marketing fee for their assistance in marketing this offering and coordinating their sales efforts with those of the dealer-manager in an amount equal to up to 1% of the purchase price of each unit sold by them. The dealer-manager also will have the right, but not the obligation, to use a portion of its dealer-manager fee to provide the selling dealers with, or reimburse them for, permissible non-cash compensation under NASD Conduct Rule 2810, which includes the following:
•
an accountable reimbursement for certain expenses related to training and education meetings for associated persons of the selling dealers;
•
gifts that do not exceed $100 per person per year, and are not preconditioned on achievement of a sales target;
•
an occasional meal, a ticket to a sporting event or the theater, or comparable entertainment that is neither so frequent nor so extensive as to raise any question of propriety, and is not preconditioned on achievement of a sales target; and
•
contributions to a non-cash compensation arrangement between a selling dealer and its associated persons, provided that neither we, our general partner nor the dealer-manager may directly or indirectly participate in the selling dealer's organization of a permissible non-cash compensation arrangement.
The dealer-manager is responsible for ensuring that all non-cash compensation arrangements comply with NASD Conduct Rule 2810.
Our general partner also is using the services of wholesalers who are employed by it or its affiliates and are registered through Chadwick Securities. These individuals receive salaries and expense reimbursements in connection with this offering and also will receive commissions for subscriptions obtained through their efforts, which will be paid from the dealer-manager fee. The dealer-manager will retain the remainder of the dealer-manager fee that is not reallowed to the wholesalers, paid to the selling dealers as a marketing fee, or provided or reimbursed to the selling dealers as permissible non-cash compensation.
This offering will be made in compliance with NASD Conduct Rule 2810 and all compensation, including permissible non-cash compensation, paid to broker/dealers and wholesalers, regardless of the source, will be limited to 10% of our gross offering proceeds plus the up to .5% reimbursement for bona fide accountable due diligence expenses on each unit sold. Also, this offering will be made in compliance with NASD Conduct Rule 2810(b)(2)(C) and the broker/dealers and wholesalers will not execute a transaction for the purchase of units in a discretionary account without the prior written approval of the transaction by the customer. Finally, although not anticipated, if the dealer-manager assists in the transfer of units, then it will comply with NASD Conduct Rule 2810(b)(3)(D).
Subject to the following, you and our other investors will pay $100 per unit and generally will share in our income, losses, and cash distributions based on your respective number of units. However, the subscription price for:
•
our general partner, its officers, directors, and affiliates;
•
investors who buy units through the officers and directors of our general partner;
•
registered investment advisors, and clients of registered investment advisors who are paid a percentage of assets under management instead of a sales commission on the sale of our units; and
•
the dealer-manager, selling dealers and their registered representatives and principals;
will be reduced by an amount equal to the 7% sales commission, which will not be paid with respect to those sales. These investors who pay a reduced price for their units generally will share in our income, losses and cash distributions on the same basis as you and our other investors who pay $100 per unit. Although our general partner and its affiliates currently intend to buy not less than 10,000 units ($1 million) and may purchase up to approximately 5% of the total units sold in this offering, if greater, those units will not be applied towards the minimum offering proceeds required for us to begin operations.
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To help assure an orderly market for our units, our general partner, the dealer-manager and the selling dealers may use any and all methods as they deem appropriate to allocate units among interested investors if they anticipate that the demand for our units will exceed the available supply, provided that no changes to the dealer-manager's or the selling dealers' compensation may be made. These methods may include, but will not be limited to:
•
allocations of units to selling dealers for sale to potential limited partners;
•
priority acceptance of subscriptions from investors in previous partnerships sponsored by LEAF Financial, an affiliate of our general partner;
•
priority treatment for investors whose subscriptions were declined in previous partnerships sponsored by LEAF Financial, an affiliate of our general partner, because the number of units available was not sufficient to accommodate their subscriptions; or
•
any other method that may be approved by our general partner.
After we receive the minimum offering proceeds and the subscription checks have cleared the banking system, the dealer-manager fee, the sales commissions, and the up to .5% reimbursement for bona fide accountable due diligence expenses will be paid to the dealer-manager and the selling dealers approximately every week until this offering closes. However, before breaking escrow and the initial closing of this offering, our general partner may advance the up to .5% reimbursement for bona fide accountable due diligence expenses to the dealer-manager and the selling dealers for units sold by them. In this regard, the up to .5% reimbursement for bona fide accountable due diligence expenses will not be paid for units sold to:
•
our general partner, its officers, directors, and affiliates; or
•
investors who buy units through the officers and directors of our general partner.
Indemnification
The dealer-manager is an underwriter as that term is defined in the 1933 Act and the sales commissions and dealer-manager fees will be deemed underwriting compensation. Our general partner and the dealer-manager have agreed to indemnify each other, and it is anticipated that the dealer-manager and each selling dealer will agree to indemnify each other, against certain liabilities, including liabilities under the 1933 Act.
INVESTOR
  SUITABILITY
General
Our units are an illiquid asset and are not freely transferable. There is no public market in which to sell our units, and we do not expect a public market for the sale of our units to develop.
You should purchase our units only if you:
•
have adequate financial means;
•
do not need liquidity of your investment; and
•
are able to withstand the risks inherent in a long-term investment.
Our units are not an appropriate investment if you must rely on distributions from us as an important source of income. Thus, you must, at a minimum, meet the requirements described below in order to purchase our units.
We, or the selling dealers selling units on our behalf, must have reasonable grounds to believe, on the basis of information obtained from you, that an investment in our units is suitable and appropriate for you in light of your age, investment objectives, investment experience, income, financial needs and other investments, and that your net worth is sufficient to sustain the risks inherent in an investment in our units. We and the selling dealers will rely on what you tell us in your subscription agreement about your financial situation and investment objectives, and the selling dealers must maintain documents in their files disclosing the basis on which they made the suitability determination of an investment in us by the investors to whom they sold our units. Thus, it is important that you provide complete and accurate information on your subscription agreement.
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When evaluating your suitability for this investment using the standards listed below, keep in mind that net worth does not include the value of your home furnishings, personal automobiles and the equity in your home. Also, you must value the assets included in your net worth calculation at their fair market value. For fiduciary accounts, such as IRAs and HR-10, or Keogh, plans, and other benefit plans or trusts, these suitability standards must be met by the beneficiary, the IRA, plan or trust or the donor or grantor who directly or indirectly supplies the funds to purchase the units, if that donor or grantor is the fiduciary of the IRA, plan or trust. We will maintain your suitability records for a period of six years.
Basic
  Investor Suitability
You must meet our basic suitability requirements in order to purchase our units. In general, you must have either:
•
a net worth of at least $45,000, plus $45,000 of annual gross income; or
•
a net worth of at least $150,000.
Different
  Basic Investor Suitability for Residents of Certain States
Residents of Arizona, California, Iowa, Kansas, Massachusetts, Michigan, Missouri, Oregon, North Carolina and Tennessee must have either of the following in order to purchase our units:
•
a net worth of at least $60,000, plus $60,000 of annual gross income; or
•
a net worth of at least $225,000.
Residents of New Jersey must be accredited investors, as defined in SEC Regulation D, in order to purchase our units. In general, this means that you must meet one or more of the suitability standards set forth below.
•
you are a corporation, partnership, trust, or other entity with total assets in excess of $5 million, and you were not formed for the purpose of purchasing our units;
•
you have an individual "net worth" (the fair market value of your total assets, including home and personal property, minus your total liabilities), or joint net worth with your spouse, in excess of $1 million;
•
you had an annual income in excess of $200,000, or a joint annual income with your spouse in excess of $300,000, in each of the two most recent years and reasonably expect to have the same income level in the current year; or
•
you are an entity (including a corporation or partnership) in which all of the equity owners individually are accredited investors as described in either the second or third bullet point set forth above, in which case each equity owner must also complete a copy of the subscription agreement.
Residents of Ohio must have either of the following in order to purchase our units:
•
a net worth of at least $70,000, plus $70,000 of annual gross income; or
•
a net worth of at least $250,000.
Additional
  State Requirements
In addition to the suitability requirements set forth above, residents of the following states must satisfy the following requirements applicable to them.
•
California
Investors.
California has further limitations on transferring our units, as set forth in the following notice:
"IT
  IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST
  THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN
  CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT
  AS PERMITTED IN THE COMMISSIONER'S RULES."
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•
Iowa, Minnesota and Nebraska Investors
. You must purchase a minimum of 50 units, which is $5,000.
•
Iowa, Oklahoma, Nebraska or Pennsylvania Investors.
Your investment may not exceed 10% of your net worth.
•
Kansas Investors.
Under suitability guidelines of the Office of the Kansas Securities Commissioner, you are cautioned to carefully evaluate whether your investment in us and substantially similar investments should exceed 10% of your net worth.
•
Missouri or Ohio Investors.
Your investment in us may not exceed 10% of your liquid net worth.
•
Pennsylvania Investors.
Because the minimum closing amount is less than $12 million (10% of the maximum closing amount of $120 million) in this offering, you are cautioned to carefully evaluate our ability to fully accomplish our stated objectives and to inquire as to the current dollar volume of subscriptions for our units.
Who
  Should Invest
You should purchase our units only if you:
•
are prepared to hold your investment in us for at least 9 years, which includes:
•
the up to two-year period during which we may offer and sell our units,
•
the period ending five years from when we complete this offering, which is part of the reinvestment period; and
•
the following period of approximately two years, during which we intend to liquidate our assets;
•
have no need for your investment in us to be liquid, other than cash you may receive from our intended monthly distributions; and
•
are prepared to assume the substantial risks associated with an investment in us.
THE
  OFFERING
Terms
  of this Offering and the Offering Period
The minimum amount of offering proceeds that we must receive in order to break escrow and hold the initial closing in this offering is $2 million (20,000 units), and the maximum amount of offering proceeds that we can accept in this offering is $120 million, (1,200,000 units). The amount of our minimum required offering proceeds excludes units subscribed for by Iowa and Pennsylvania residents and units subscribed for by our general partner and its affiliates, as discussed in "– Escrow Arrangements," below.
Your minimum subscription amount is 50 units ($5,000). However, if you purchased units in Lease Equity Appreciation Fund I, L.P. or Lease Equity Appreciation Fund II, L.P., which are prior equipment leasing funds sponsored by LEAF Financial, an affiliate of our general partner, and elect on your subscription agreement to use your cash distributions from one or both of those funds to purchase our units, then you will have no minimum subscription amount.
Your subscription to purchase our units will be effective only when it is accepted by our general partner, which reserves the right to reject your subscription in whole or in part, without liability to you. The subscription agreement provided to you for execution must be accompanied by a copy of this prospectus. You have the right to cancel your subscription before it has been accepted by our general partner by giving written notice of your intent to cancel, in a form that is satisfactory to us and is signed by you and every other person who signed your subscription agreement as an investor, if any, to LEAF Asset Management, LLC, 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103. We will not complete a sale of units to you until at least five business days after the date you receive a final prospectus.
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This offering will end not later than two years from the date of this prospectus. Some states or jurisdictions may require renewal, requalification or other consents in order for us to continue this offering after the end of one year from the date of this prospectus. In addition, we may end this offering at any time. If we do not receive and accept subscriptions for a minimum of $2 million (20,000 units) before one year from the date of this prospectus, we will promptly return all of the subscription funds we have received together with any interest earned on them and without deduction for any fees.
Escrow
  Arrangements
Until we receive subscriptions for the minimum offering proceeds of $2 million (20,000 units) and admit the initial subscribers as limited partners the subscription funds will be held in an escrow account at Commerce Bank, National Association, Cherry Hill, New Jersey. Subscription funds held in the escrow account will be invested in interest-bearing savings or bank money market accounts so long as they are not mutual funds. Subscribers may not withdraw their subscription funds from the escrow account. On the earlier of the termination of this offering or the satisfaction of the escrow condition and the initial closing in this offering, any interest that accrues on the funds held in escrow will be distributed to the subscribers and allocated among them based on the amounts of their respective subscriptions and the number of days that those amounts were on deposit in the escrow account.
Subscriptions received from residents of Iowa and Pennsylvania will be placed in a separate escrow account and will not be counted toward satisfaction of our minimum offering proceeds of $2 million (20,000 units). Instead, the subscription funds of residents of Iowa and Pennsylvania will be released to us only when our total offering proceeds from all subscribers, including the escrowed Iowa and Pennsylvania subscriptions, are at least $6 million.
Offering proceeds will be transferred to us from escrow any time after we receive and accept the minimum offering proceeds of $2 million (20,000 units), other than subscriptions from Iowa and Pennsylvania residents and subscriptions from our general partner and its affiliates. Subject to the foregoing, subscribers whose subscription funds have been held in escrow will be admitted as limited partners in the initial closing in this offering within 15 days after we have received the minimum offering proceeds of $2 million and broken escrow. Subsequent subscriptions will be held in a separate interest-bearing subscription account pending our general partner's acceptance or rejection of the subscriptions. Our general partner will accept or reject subsequent subscriptions within 30 days after receipt. Investors whose subscriptions are accepted by our general partner will be admitted as limited partners promptly
after their subscriptions are accepted, but in any event no later than the last day of the month following the date the subscription was accepted. We will promptly return rejected subscription funds together with any interest earned and without deduction for any fees. If our general partner accepts your subscription on our behalf, either we or an agent of ours will give your prompt written confirmation of your admission as one of our limited partners.
After we break escrow, our offering proceeds from each closing will be kept in our partnership account and will not be commingled with the funds of any other person or entity. Our general partner will have fiduciary responsibility for the safekeeping and use of all of our funds and assets, whether or not in its immediate possession or control. Also, our general partner will not employ, nor permit any other person to employ, our funds or assets in any manner except for our exclusive benefit.
The escrow agent's sole role in this offering is that of escrow holder. As the escrow agent, it has not reviewed any of our offering materials and it makes no representations whatsoever as to the nature of this offering or the compliance of this offering with any applicable state or federal laws, rules or regulations. The escrow agent neither endorses, recommends nor guarantees the purchase, value, repayment or any other aspect of an investment in us. The escrow agent does not represent the interests of you or the other potential investors. Its duties are limited as expressly set forth in the escrow agreement. Interested persons may request a copy of the escrow agreement from our general partner.
HOW
  TO SUBSCRIBE
If you are investing in us as a natural person, and not as a business or investment entity, you must complete and personally sign the subscription agreement included in Appendix C to this prospectus and deliver it, together with a check for your subscription amount, to a registered representative of a selling dealer. Except as discussed below, your minimum investment amount is 50 units ($5,000). In the case of an IRA or qualified plan, both the owner and the plan fiduciary, if any, must sign the subscription agreement. In the case of donor trusts or other trusts in which the donor is the fiduciary, the donor must sign the subscription agreement in the donor's fiduciary capacity, e.g. trustee, or both the donor and the fiduciary must sign the subscription agreement. In the case of other fiduciary accounts in which the donor neither exercises control over the account nor is a fiduciary of the account, the plan fiduciary alone may

sign the subscription agreement.
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Also, if you previously invested in Lease Equity Appreciation Fund I, L.P. ("LEAF I") or Lease Equity Appreciation Fund II, L.P. ("LEAF II"), which are prior equipment leasing funds sponsored by LEAF Financial Corporation, an affiliate of our general partner, you may elect on your subscription agreement to purchase our units with the proceeds of your cash distributions from those funds during our offering period, to the extent units are then available for purchase. All units purchased by you with distributions, either from us or from LEAF I or LEAF II, will be purchased at the public offering price and on the same terms as our other units are being offered, including payment of the dealer-manager fee, sales commissions, the organization and offering expense allowance, and the bona fide accountable due diligence reimbursements, except that there is no minimum investment amount for units
purchased with cash distributions from LEAF I or LEAF II, or both.
Until we receive and accept offering proceeds of $2 million (20,000 units), excluding units subscribed for by our general partner and its affiliates, or $6 million (60,000 units) in the case of residents of Iowa and Pennsylvania, checks for the purchase of units should be made payable to "LEAF Equipment Leasing Income Fund III, L.P. Escrow Account," even if the selling dealer is a customer carrying broker/dealer. After the initial closing date in this offering, checks for the purchase of units should be made payable to "LEAF Equipment Leasing Income Fund III, L.P. Subscription Account."
Selling dealers must forward subscription checks to the dealer-manager promptly, but in no event later than noon of the next business day following their receipt. The dealer-manager must forward these subscription checks to the bank escrow agent promptly, but in no event later than noon of the next business day following their receipt by the dealer-manager. Our general partner will promptly review each subscription and either will accept or decline your subscription as a limited partner.
SUPPLEMENTAL
  SALES LITERATURE
In addition to this prospectus, our general partner intends to use the following sales material with the offering of our units:
•
a
          brochure entitled "LEAF Equipment Leasing Income Fund III, L.P.;
•
a
          slide show presentation and script entitled "LEAF Equipment Leasing
          Income Fund III, L.P.; and
•
possibly other supplementary materials.
We anticipate that the supplemental materials will include information relating to this offering and our general partner and its affiliates. Our supplemental materials may also include audio-visual materials and taped presentations highlighting and explaining various features of this offering. We may also respond to specific questions from the dealer-manager, the selling dealers and prospective investors. We may send business reply cards, introductory letters and seminar invitations to the dealer-manager and the selling dealers for customer use, and other materials relating to this offering may be made available to them for their internal use.
Except as described above, our general partner has not authorized the use of any other sales material and the offering of our units is made only by means of this prospectus. All sales materials authorized by us for use in this offering are subject to the following conditions:
•
they must be preceded or accompanied by this prospectus;
•
they are not complete;
•
they will not contain any material information that is not also set forth in this prospectus; and
•
they should not be considered a part of, or incorporated into, this prospectus or the registration statement of which this prospectus is a part.
In addition, supplementary materials, including prepared presentations for group meetings, must be submitted by us to the administrators of applicable state securities laws before they are used, and their use must either be preceded or accompanied by this prospectus. Also, all advertisements of, and oral or written invitations to, "seminars" or other group meetings at which our units are to be described, offered, or sold will clearly indicate the following:
•
that the purpose of the meeting is to offer our units for sale;
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•
the minimum purchase price of our units;
•
the suitability standards we will employ; and
•
the name of the selling dealer selling our units.
Also, no cash, merchandise, or other items of value may be offered as an inducement to you or any other prospective investor to attend the meeting. All written or prepared audiovisual presentations, including scripts prepared in advance for oral presentations to be made at the meetings, must be submitted to the state administrators within a prescribed review period. These provisions, however, will not apply to meetings consisting only of the registered representatives of the selling dealers.
You should rely only on the information contained in this prospectus in making your investment decision. No one is authorized to provide you with information that is different.
LEGAL
  MATTERS
Kunzman & Bollinger, Inc., 5100 N. Brookline, Suite 600, Oklahoma City, OK 73112, has issued its opinion to our general partner regarding the validity and due issuance of our units including assessibility, and its opinion on the material and any significant federal income tax issues to typical individual investors in us. However, the factual statements in this prospectus are our statements or those of our general partner, and counsel has not given any opinions with respect to any of the other tax or legal aspects of this offering except as expressly set forth above.
EXPERTS
The balance sheet of LEAF Equipment Leasing Income Fund III, L.P. as of
August 31, 2006 included in this prospectus and in the registration statement has been audited by Grant Thornton LLP, independent
registered public accounting firm, as indicated in their report with respect thereto, and are included herein in reliance upon the
authority of said firm as experts in accounting and auditing.
The balance sheet of LEAF Asset Management, LLC as of
August 31, 2006 included in this prospectus and in the registration statement has been audited by Grant Thornton LLP, independent
registered public accounting firm, as indicated in their report with respect thereto, and are included herein in reliance upon the authority of said firm as experts in accounting and auditing.
FORECASTS
The use of forecasts in this offering is prohibited. Any representations to the contrary and any predictions, written or oral, as to the amount or certainty of any present or future cash benefit or tax consequence that you may receive from the purchase of our units is not permitted.
WHERE
  YOU CAN FIND MORE INFORMATION
We have filed a registration statement on Form S-1 with the SEC regarding our units offered by this prospectus. As permitted by the SEC's rules and regulations, this prospectus, which is part of the registration statement, omits certain information about offering expenses, indemnification of officers and directors, exhibits, schedules and undertakings that are set forth in the registration statement. For further information about us and our units being offered by this prospectus, you may want to review the registration statement, including its schedules and the full text of any contracts, agreements or other documents filed as exhibits to the registration statement. The registration statement may be inspected and copied at the public reference room maintained by the SEC at100 F Street, N.E., Washington, D.C. 20549, and the regional offices of the SEC. Copies of these materials can also be obtained on
written request from the Public Reference Section of the SEC at100 F Street, N.E., Washington, D.C. 20549, at prescribed rates, or from the SEC's web site on the internet at
www.sec.gov
. You may obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330.
As a result of this offering, we will file periodic reports and other information with the SEC. These reports and other information may be inspected and copied at the public reference facilities at the SEC at 100 F. Street, N.E., Washington, D.C. 20549, at prescribed rates, or from the SEC's web site on the internet at
www.sec.gov
.
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INDEX TO FINANCIAL STATEMENTS
LEAF
          ASSET MANAGEMENT, LLC
Report
          of Independent Registered Public Accounting Firm
F-1
Balance
          Sheet as of August 31, 2006
F-2
Notes
          to Balance Sheet
F-3
LEAF
          EQUIPMENT LEASING INCOME FUND III, L.P.
Report
          of Independent Registered Public Accounting Firm
F-5
Balance
          Sheet as of August 31, 2006
F-6
Notes
          to Balance Sheet
F-7
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Report
of Independent Registered Public Accounting Firm
The Members
LEAF Asset Management, LLC
We have audited the accompanying balance sheet of LEAF Asset Management, LLC (a development stage enterprise) as of August 31, 2006. This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit.
We
    conducted our audit in accordance with the standards of the Public Company
    Accounting Oversight Board (United States). Those standards require that
    we plan and perform the audit to obtain reasonable assurance about whether
    the financial statements are free of material misstatement. The Company is
    not required to have, nor were we engaged to perform an audit of its internal
    control over financial reporting. Our audit included consideration of internal
    control over financial reporting as a basis for designing audit procedures
    that are appropriate in the circumstances, but not for the purpose of expressing
    an opinion on the effectiveness of the Company's internal control over financial
    reporting. Accordingly, we express no such opinion. An audit also includes
    examining, on a test basis, evidence supporting the amounts and disclosures
    in the financial statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating the overall
    financial statement presentation. We believe that our audit provides a reasonable
    basis for our opinion.
In
    our opinion, the financial statement referred to above presents fairly, in
    all material respects, the financial position of LEAF Asset Management, LLC
    (a
    development
    stage
    enterprise) as of August 31, 2006, in conformity with accounting principles
generally accepted in the United States of America.
/s/ Grant Thornton LLP
Philadelphia, PA
September
    18, 2006
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LEAF Asset Management, LLC
(a
  development stage enterprise)
Balance Sheet
August 31, 2006
ASSETS
Cash
$
1,000,000
Deferred offering
    cost
30,829
Investment in partnership
1,000
Total Assets
$
1,031,829
LIABILITIES AND MEMBERS EQUITY
Due to affiliate
$
31,829
Members
    equity
1,000,000
Total liabilities and members equity
$
1,031,829
The
accompanying notes are an integral part of this statement
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LEAF Asset Management, LLC
(a
  development stage enterprise)
NOTES TO BALANCE SHEET
1.
ORGANIZATION AND BUSINESS OPERATIONS
LEAF
    Asset Management, LLC (the "Company"), a Delaware Corporation, was formed on
    August 29, 2006. The Company's fiscal year ends on September 30. LEAF
    Asset Management, LLC, is an indirect wholly owned subsidiary of Resource
    America, Inc. ("RAI"). RAI is a publicly-traded company (NASDAQ:
    REXI) operating in the financial fund management, real estate, and equipment
    finance sectors.
The
    Company was formed to act as the sponsor and general partner of equipment
    leasing limited partnerships.
On
    August 31, 2006, the Company contributed $1,000 in exchange for a 1%
    general partnership interest in LEAF Equipment Leasing Income Fund III, L.P.
    (the "Fund").
    The limited partners will own a 99% limted partnership interest. The Fund
    will be managed by the Company. Cash distributions, if available will be
    made monthly. Distributions from the Fund, net income and net losses will
    be allocated
    1% to the Company, as general partner, and 99% to the limited partners.
The
    Fund will acquire leases and secured loans primarily from LEAF Financial
    Corporation, Inc., an affiliate of the Company. The primary objective of
    the Fund is to invest the net proceeds raised from the sale of limited partnership
    units in equipment and portfolios of equipment subject to existing equipment
    leases and secured loans in order to generate regular cash distributions
    to the limited partners over the life of the Fund.
The
    Company is considered to be a development stage enterprise and its sole activity
    through August 31, 2006 consisted of the organization and start-up of the
    Company. Accordingly, no statement of operations or statement of cash flows
    is presented.
2.
SIGNIFICANT
      ACCOUNTING POLICIES
Income
      Taxes
Federal
	      and state income tax laws provide that the income or losses of the
	      Company are reportable by the Members individual income tax returns.
	  Accordingly, no provision for such taxes has been made in the accompanying
      financial statements.
3.
TRANSACTIONS
            WITH AFFILIATES
The
    Fund intends to file a registration statement for the sale of its limited
    partnership units. The Company or its affiliates will receive fees to manage
the Fund's operation.
The
    Company and Chadwick Securities, Inc. ("Chadwick"), a wholly owned
    subsidiary of RAI, will receive an organization and offering allowance of
    3% of the offering proceeds raised. This amount includes reimbursement to
    Chadwick to use for the selling dealers' bona fide accountable due diligence
    expenses of up to 0.5% of the proceeds of each unit sold by them. These charges
    will be recorded by the Fund as offering costs related to the sale of limited
    partnership units on the Statements of Changes in Partners' Capital.
As
    of August 31, 2006 the Company incurred $30,829 of offering cost on behalf
of the Fund. These funds were advanced by an affiliate of the Company and will
    be repaid upon completion of the public offering of units.
The
    Company and Chadwick will receive an underwriting fee of up to 3% of the
    offering proceeds for obtaining and managing the group of selling broker-dealers
    who will sell the funds units in the offering. Chadwick will also receive
    sales commissions of 7% of the proceeds of each unit that they sell.
The
    Company will receive a fee for assisting the Fund in acquiring equipment
    for lease and portfolios of equipment subject to existing equipment leases
and secured loans equal to 2% of the Fund's purchase price.
The
    Company will receive a subordinated annual asset management fee equal to
    4% of gross rental payments for operating leases, as defined in the partnership
    agreement, or 2% of gross rental payments for full payout leases, or a fee,
    whichever is less. An operating lease is one in which the aggregate noncancellable
    rental payments during the initial term of the lease, on a net present value
    basis, are not sufficient to recover the purchase price of the equipment.
    A full payout lease is one in which the gross rental payments, on a net present
    value basis, are at least sufficient to recover the purchase price of the
equipment. During the Fund's five-year investment period, the management fee will be subordinated to the payment to the Fund's limited partners of a cumulative annual distribution of 8% of their capital contributions, as adjusted by distributions deemed to be a return of capital.
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LEAF
      Asset Management, LLC
(a
    development stage enterprise)
NOTES
      TO BALANCE SHEET
3.
TRANSACTIONS WITH AFFILIATES (continued)
The Company will receive a subordinated commission equal to one-half of a competitive commission, up to a maximum of 3% of the contract sales price, for arranging the sale of the Fund's equipment after the expiration of a lease. This commission is subordinated to the payment to the limited partners of a cumulative 8% annual return on their capital contributions, as adjusted by distributions deemed to be returns of capital.
The Company or its affiliates will be reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees.
The Company will receive a commission equal to the lesser of a competitive rate or 2% of gross rental payments derived from any re-lease of equipment, payable as the Fund receives rental payments from re-lease. The Fund will not, however, pay a re-lease commission if the re-lease is with the original lessee or its affiliates.
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Report
of Independent Registered Public Accounting Firm
The Partners
LEAF Equipment Leasing Income Fund III, L.P.
We have audited the accompanying balance sheet of LEAF Equipment Leasing Income Fund III, L.P. (a development stage enterprise) as of August 31, 2006. This financial statement is the responsibility of the Fund's management. Our responsibility is to express an opinion on this financial statement based on our audit.
We
    conducted our audit in accordance with the standards of the Public Company
    Accounting Oversight Board (United States). Those standards require that
    we plan and perform the audit to obtain reasonable assurance about whether
    the financial statements are free of material misstatement. The Partnership
    is not required to have, nor were we engaged to perform an audit of its internal
    control over financial reporting. Our audit included consideration of internal
    control over financial reporting as a basis for designing audit procedures
    that are appropriate in the circumstances, but not for the purpose of expressing
    an opinion on the effectiveness of the Partnership's internal control over
    financial reporting. Accordingly, we express no such opinion. An audit also
    includes examining, on a test basis, evidence supporting the amounts and
    disclosures
    in the financial statements, assessing the accounting principles used and
    significant estimates made by management, as well as evaluating the overall
    financial statement presentation. We believe that
    our audit provides
    a reasonable
    basis
for our opinion.
In
    our opinion, the financial statement referred to above presents fairly, in
    all material respects, the financial position of LEAF Equipment Leasing Income
    Fund III,
    L.P. (a
    development stage enterprise) as of August 31, 2006, in conformity with accounting
principles generally accepted in the United States of America.
/s/ Grant Thornton LLP
Philadelphia, PA
September
18, 2006
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LEAF Equipment Leasing Income Fund III, L.P.
(a development stage enterprise)
Balance Sheet
August 31, 2006
ASSETS
Cash
$
1,001
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital
General Partner
$
1,000
Limited Partner
1
$
1,001
The
accompanying notes are an integral part of this statement
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LEAF Equipment Leasing Income Fund III, L.P.
(a
  development stage enterprise)
NOTES TO BALANCE SHEET
1.
ORGANIZATION AND BUSINESS OPERATIONS
LEAF
    Equipment Leasing Income Fund III, L.P. (the "Fund"), a Delaware
    limited partnership, was formed on May 16, 2006 by its general partner,
    LEAF Asset Management, LLC (the "General Partner"). The Fund's
    fiscal year ends on December 31. LEAF Asset Management, LLC, a Delaware corporation,
    is an indirect wholly owned subsidiary of Resource America, Inc. ("RAI").
    RAI is a publicly-traded company (NASDAQ: REXI) operating in the financial
    fund management, real estate, and equipment finance sectors.
The
    General Partner and the initial limited partner capitalized the Fund on August
    31, 2006. Upon the consummation of a public offering, the initial limited
    partner will
    withdraw and its capital contribution will be refunded and its units will
    be retired. The General Partner contributed $1,000 to the Fund for a 1% partnership
    interest and the initial limited partner contributed $1 to the Fund for a
    99% partnership interest. The Fund will be managed by the General Partner.
The
    General Partner will own a 1% general partnership interest, and the limited
    partners will own a 99% limited partnership interest. Cash distributions
    will be made monthly. The distributions,  net income and net
    losses will be allocated 99% to the limited partners and 1% to the General
    Partner.
The
    Fund is considered to be a development stage enterprise and its sole activity
    through August 31, 2006 consisted of the organization and start-up of the
    Fund. Accordingly, no statement of operations or statement of cash flows
    is presented.
The
    Fund will acquire leases and securred loans primarily from LEAF Financial
    Corporation, Inc., an affiliate of the General Partner. The primary objective
    of the Fund is to invest the net proceeds raised from the sale of limited
    partnership units in equipment and portfolios of equipment subject to existing
    equipment leases and secured loans in order to generate regular cash distributions
    to the limited partners over the life of the Fund.
The
    Fund shall terminate on December 31, 2031, unless sooner disolved or terminated
    as provided for in the Partnership Agreement.
2.
SIGNIFICANT
              ACCOUNTING POLICIES
Income Taxes
Federal
    and state income tax laws provide that the income or losses of the Fund are
    reportable by the Partners on their individual income tax returns. Accordingly,
    no provision for such taxes has been made in the accompanying financial statements.
3.
TRANSACTIONS
          WITH AFFILIATES
The
    Fund intends to file a registration statement for the sale of its limited
    partnership units. The Fund will rely on the General Partner and its affilites
    to manage the funds operations and will pay the General Partner or its affiliates
    fees to manage the fund.
The
    General Partner and Chadwick Securities, Inc. ("Chadwick"), a wholly
    owned subsidiary of RAI, will receive an organization and offering allowance
    of 3% of the offering proceeds raised. This amount includes reimbursement
    to Chadwick to use for the selling dealers' bona fide accountable due
    diligence expenses of up to 0.5% of the proceeds of each unit sold by them.
    These charges will be recorded by the Fund as offering costs related to the
    sale of Partnership units on the Statements of Changes in Partners' Capital.
The
    General Partner and Chadwick will receive an underwriting fee of up to 3%
    of the offering proceeds for obtaining and managing the group of selling
    broker-dealers
    who will sell the units in the offering. Chadwick will also receive sales
    commissions of 7% of the proceeds of each unit that they sell.
The
    General Partner will receive a fee for assisting the Fund in acquiring equipment
    for lease, portfolios of equipment subject to existing equipment leases and
secured loans equal to 2% of the Fund's purchase price.
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LEAF Equipment Leasing Income Fund III, L.P.
(a
  development stage enterprise)
NOTES TO BALANCE SHEET
3.
TRANSACTIONS
      WITH AFFILIATES (continued)
The General Partner will receive a subordinated annual asset management fee equal to 4% of gross rental payments for operating leases, as defined in the partnership agreement, or 2% of gross rental payments for full payout leases, or a competetive fee, whichever is less. An operating lease is one in which the aggregate noncancellable rental payments during the initial term of the lease, on a net present value basis, are not sufficient to recover the purchase price of the equipment. A full payout lease is one in which the gross rental payments, on a net present value basis, are at least sufficient to recover the purchase price of the equipment. During the Fund's five-year investment period, the management fee will be subordinated to the payment to the Fund's limited partners of a cumulative annual distribution of 8% of their capital contributions, as adjusted by distributions deemed to be a return of capital.
The General Partner will receive a subordinated commission equal to one-half of a competitive commission, up to a maximum of 3% of the contract sales price, for arranging the sale of the Fund's equipment after the expiration of a lease. This commission is subordinated to the payment to the limited partners of a cumulative 8% annual return on their capital contributions, as adjusted by distributions deemed to be returns of capital.
The General Partner or its affiliates will be reimbursed by the Fund for certain costs of services and materials used by or for the Fund except those items covered by the above-mentioned fees.
The General Partner will receive a commission equal to the lesser of a competitive rate or 2% of gross rental payments derived from any re-lease of equipment, payable as the Fund receives rental payments from re-lease. The Fund will not, however, pay a re-lease commission if the re-lease is with the original lessee or its affiliates.
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APPENDIX A
AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP
OF
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
TABLE OF CONTENTS
I.
DEFINITIONS
1
1.1
Defined Terms
1
II.
FORMATION OF PARTNERSHIP
12
2.1
Formation of Partnership
12
III.
NAME
12
3.1
Name
12
IV.
PLACES OF BUSINESS
12
4.1
Principal Place of Business
12
4.2
Other Places of Business
12
V.
NAMES AND ADDRESSES OF PARTNERS
12
5.1
Names and Addresses of Partners
12
VI.
PURPOSES AND OBJECTIVES
12
6.1
Purposes
12
6.2
Investment Objectives
13
VII.
TERM
13
7.1
Term
13
VIII.
PARTNERS AND CAPITAL
13
8.1
General Partner
13
8.2
Original Limited Partner
13
8.3
Limited Partners and Maximum Offering
13
8.4
Subscription Documents and Suitability
13
8.5
Payment of Subscription Price of Units and Limited Partners' Right (Other Than Residents of Ohio) to Elect to Use Cash Distributions to Purchase Units
14
8.6
Minimum Subscription Amount
14
8.7
Subscription for Units by General Partner and its Affiliates
14
8.8
Partnership Closings
14
8.9
Acceptance of Units
14
8.10
Admission to Partnership as Limited Partners
14
8.11
Escrow Account and Subscription Account
14
8.12
Separate Escrow Account for Residents of Iowa and Pennsylvania
15
8.13
Partnership Capital
15
8.14
Capital Accounts
15
8.15
Limitations on Additional Capital Contributions
16
8.16
Loans by Partners
16
IX.
POWERS, RIGHTS AND DUTIES OF GENERAL PARTNER
17
9.1
Extent of Powers and Duties
17
9.2
Limitations on the Exercise of Powers of General Partner
20
9.3
Limitation on Liability of General Partner and its Affiliates; Indemnification
22
9.4
Compensation of General Partner and its Affiliates
23
9.5
Other Interests of the General Partner and its Affiliates
26
X.
POWERS AND LIABILITIES OF LIMITED PARTNERS
27
10.1
Absence of Control Over Partnership Business
27
10.2
Limited Liability
27
XI.
DISTRIBUTIONS AND ALLOCATIONS
27
11.1
Distribution of Distributable Cash
27
11.2
Allocations of Income and Loss
28
11.3
Distributions and Allocations Among the Limited Partners
30
11.4
Tax Allocations: Code Section 704(c); Revaluations
31
11.5
Return of Uninvested Capital Contribution
31
11.6
No Distributions in Kind
31
11.7
Partnership Entitled to Withhold
31
XII.
WITHDRAWAL OF GENERAL PARTNER
32
12.1
Voluntary Withdrawal
32
12.2
Involuntary Withdrawal
32
12.3
Consequences of Withdrawal
32
12.4
Liability of Withdrawn General Partner
33
12.5
Notice of Withdrawal; Admission of Substitute General Partner; Dissolution if No Substitute General Partner Approved
33
XIII.
TRANSFER OF UNITS
33
13.1
Withdrawal of a Limited Partner
33
13.2
Assignment
33
13.3
Substitution
34
13.4
Status of an Assigning Limited Partner
35
13.5
Limited Right of Presentment for Redemption of Units
35
XIV.
DISSOLUTION AND WINDING-UP
37
14.1
Events Causing Dissolution
37
14.2
Winding Up of the Partnership; Capital Contribution by the General Partner Upon Dissolution
37
14.3
Application
          of Liquidation Proceeds Upon Dissolution
38
14.4
No Recourse Against Other Partners
38
XV.
FISCAL MATTERS
38
15.1
Title to Property and Bank Accounts
38
15.2
Maintenance of and Access to Basic Partnership Documents
38
15.3
Financial Books and Accounting
40
15.4
Fiscal Year
40
15.5
Reports
40
15.6
Tax Returns and Tax Information
41
15.7
Accounting Decisions
42
A-i
15.8
Federal Tax Elections
42
15.9
Tax Matters Partner
42
XVI.
MEETINGS AND VOTING RIGHTS OF THE LIMITED PARTNERS
43
16.1
Meetings of the Limited Partners
43
16.2
Voting Rights of the Limited Partners
44
16.3
Limitations on Action by the Limited Partners
45
XVII.
AMENDMENTS
45
17.1
Amendments by the General Partner
45
XVIII.
POWER OF ATTORNEY
46
18.1
Appointment of Attorney-in-Fact
46
18.2
Amendments to Agreement and Certificate of Limited Partnership
46
18.3
Power Coupled With an Interest
46
XIX.
GENERAL PROVISIONS
47
19.1
Notices, Approvals and Consents
47
19.2
Further Assurances
47
19.3
Captions
47
19.4
Binding Effect
47
19.5
Severability
47
19.6
Integration
47
19.7
Applicable Law
47
19.8
Counterparts
48
19.9
Creditors
48
19.10
Successors and Assigns
48
19.11
Waiver of Action for Partition
48
A-2
AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP
OF
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
This Amended and Restated Agreement of Limited Partnership is made and entered into by and among LEAF Asset Management, LLC, a limited liability company organized and existing under the laws of the State of Delaware, as the General Partner, LEAF Financial Corporation, as the "Original Limited Partner," and such other persons who may be admitted to the Partnership from time to time as Limited Partners.
ARTICLE I - DEFINITIONS
1.1 Defined Terms.
Defined terms used in this Agreement shall have the meanings specified below. Certain additional defined terms are set forth elsewhere in this Agreement. Unless the context otherwise requires, the singular shall include the plural and the masculine gender shall include the feminine and neuter, and vice versa, and "Article" and "Section" references are references to the Articles and Sections of this Agreement.
(1)
"
Accountants
" means any firm of independent certified public accountants that may be engaged from time to time by the General Partner on behalf of the Partnership.
(2)
"
Acquisition Expenses
" means expenses (other than Acquisition Fees) incurred and paid to any Person which are attributable to the selection and acquisition of Investments, whether or not acquired, including, but not limited to:
(i)
legal fees and expenses;
(ii)
travel and communication expenses;
(iii)
costs of credit reports, appraisals and reference materials used to evaluate transactions;
(iv)
non-refundable option payments on Investments not acquired;
(v)
accounting fees and expenses;
(vi)
insurance costs;
(vii)
initial direct costs, as that term is defined under United States generally accepted accounting principles ("GAAP"), which includes any origination fees paid by LEAF Funding, Inc. to any Person, including its employees, with respect to acquiring and holding Investments on a temporary basis before they are purchased from LEAF Funding, Inc. by the Partnership; and
(viii)
miscellaneous other expenses, however designated.
(3)
"
Acquisition Fees
" means all fees and commissions paid by any party in connection with the initial purchase or funding of any Investment, including fees payable to finders and brokers that are not Affiliates of the General Partner. Also, included in the computation of such fees or commissions shall be any commission, selection fee, financing fee, non-recurring management fee, or any fee of a similar nature, however designated.
(4)
"
Adjusted Capital Account Deficit
" means with respect to any Capital Account as of the end of any taxable year, the amount by which the balance in the Capital Account is less than zero. For this purpose, a Partner's Capital Account balance shall be:
(i)
reduced for any items described in Treas. Reg. Section 1.704-1(b)(2)(ii)(d)(4), (5), and (6);
(ii)
increased for any amount the Partner is unconditionally obligated to contribute to the Partnership no later than the end of the taxable year in which his or her Units, or the General Partner's Partnership Interest, are liquidated (as defined in Treas. Reg. Section 1.704-1(b)(2)(ii)(g)) or, if later, within 90 days after the liquidation; and
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(iii)
increased for any amount the Partner is treated as being obligated to contribute to the Partnership pursuant to the penultimate sentences of Treas. Reg. Sections 1.704-2(g)(1) and 1.704-2(i)(5) (relating to Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain, respectively).
(5)
"
Adjusted Capital Contribution
" means, as to any Limited Partner, as determined from time to time, the Limited Partner's Capital Contribution reduced, but not below zero, by:
(i)
all distributions previously made to the Limited Partner by the Partnership which are deemed to reduce the Limited Partner's Capital Contribution under Section 11.3(d)(ii); and
(ii)
all payments previously made to the Limited Partner in Redemption of a portion or all of the Limited Partner's Units under Section 13.5.
(6)
"
Administrator
" means the official or agency administering the securities laws of a state or other political subdivision of the United States.
(7)
"
Affiliate
" means, with respect to any Person:
(i)
any other Person directly or indirectly controlling, controlled by or under common control with such Person;
(ii)
any other Person owning or controlling 10% or more of the outstanding voting securities of such Person;
(iii)
any officer, director or partner of such Person; and
(iv)
if such Person is an officer, director or partner, any other Person for which such Person acts in such capacity.
(8)
"
Affiliated Limited Partner
" means any of the following Persons who purchase Units and are admitted to the Partnership as Limited Partners:
(i)
the General Partner and any officer, director, employee or other Affiliate of the General Partner;
(ii)
the Dealer-Manager, the Selling Dealers and any registered representative or principal of the Dealer-Manager or a Selling Dealer;
(iii)
registered investment advisors and their clients; and
(iv)
investors who buy Units through the officers and directors of the General Partner.
(9)
"
Affiliated Program
" means any Program formed by the General Partner or any Affiliate of the General Partner or in which the General Partner or any of its Affiliates has an interest.
(10)
"
Agreement
" means this Amended and Restated Agreement of Limited Partnership, as it may hereafter be amended, supplemented or restated from time to time.
(11)
"Assessments"
means additional amounts of capital which may be mandatorily required of, or paid at the option of, a Limited Partner beyond his subscription commitment.
(12)
"
Assignee
" means any Person to whom any Unit or Partnership Interest, or part thereof, has been Assigned, in whole or in part, in a manner permitted by Section 13.2.
(13)
"
Assignment
" means, with respect to any Unit or Partnership Interest, or any part thereof, the sale, assignment, transfer, gift or other disposition of such Unit or Partnership Interest, whether voluntarily or by operation of law, except that in the case of a bona fide pledge or other hypothecation, no Assignment shall be deemed to have occurred unless and until the secured party has exercised his right of foreclosure with respect thereto.
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(14)
"
Book Value
" means, with respect to any Partnership property, the Partnership's adjusted basis for federal income tax purposes, adjusted from time to time to reflect the adjustments required or permitted by Treas. Reg. Section 1.704-1(b)(2)(iv)(d)-(g).
(15)
"
Capital Account
" means the capital account maintained for each Partner under Section 8.5.
(16)
"
Capital Contribution
" means:
(i)
as to the General Partner, its initial $1,000 contribution to the capital of the Partnership plus any additional amounts as may be contributed to the capital of the Partnership by the General Partner; and
(ii)
as to any Limited Partner, the gross amount of investment in the Partnership actually paid by the Limited Partner, i.e. either the Gross Unit Price or the Net Unit Price, without deduction for Front-End Fees (whether payable by the Partnership or not);
but excluding Distributable Cash reinvested in additional Investments under Section 9.1(b)(xxv) during the Reinvestment Period.
(17)
"Carried Interest"
means an interest taken in a Program by a Person, other than a promotional interest, for which full consideration has neither been paid nor is to be paid.
(18)
"
Cash Flow
" means the Partnership's Gross Revenues, without deduction for depreciation, but after deducting the Partnership's cash funds used to pay all other Partnership expenses, debt payments, capital improvements and replacements (other than cash funds withdrawn from Reserves).
(19)
"
Closing
" means the admission of Limited Partners to the Partnership in accordance with Section 8.3.
(20)
"
Closing Date
" means any date on which any Limited Partner is admitted to the Partnership, and includes the Initial Closing Date, any subsequent Closing Date and the Final Closing Date.
(21)
"
Code
" means the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent laws.
(22)
"
Commission
" means the Securities and Exchange Commission.
(23)
"
Consent
" means, as the context may require:
(i)
consent given by vote at a meeting called and held in accordance with the provisions of Section 16.1;
(ii)
the written consent without a meeting of any Person to do the act or thing for which the consent is solicited; or
(iii)
the act of granting the consent.
(24)
"
Controlling Person
" means, with respect to the General Partner or any Affiliate of the General Partner, any of the following Persons:
(i)
its chairmen, directors, presidents, or other executive or senior officers;
(ii)
any holder of a 5% or greater equity interest in the General Partner or its Affiliate; or
(iii)
any Person having the power to direct or cause the direction of the General Partner or its Affiliate, whether through the ownership of voting securities, by contract or otherwise.
(25)
"
Counsel
" means any law firm that may be engaged from time to time by the General Partner on behalf of the Partnership.
(26)
"
Cumulative Return
" means, as to any Limited Partner, an amount equal to an 8% annual (0.66667% monthly) cumulative return on the Limited Partner's Adjusted Capital Contribution (without reduction for any distribution
made or to be made to the Limited Partner on the date of calculation) calculated from a date not later than the last day of the calendar quarter in which the Capital Contribution of the Limited Partner as to which the Cumulative Return is being calculated was made.
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(27)
"
Dealer-Manager
" means Chadwick Securities, Inc., an Affiliate of the General Partner, the broker/dealer which will manage the offer and sale of the Units in all states in the Offering.
(28)
"
Dealer-Manager Agreement
" means the agreement entered into between the General Partner and the Dealer-Manager, substantially in the form of the Dealer-Manager Agreement filed as an exhibit to the Registration Statement, as amended and supplemented from time to time as permitted by its terms.
(29)
"
Dealer-Manager Fee
" means the fees payable to the Dealer-Manager in an amount equal to 3.0% of the Gross Unit Price per Unit sold, in the aggregate, in the Offering.
(30)
"
Delaware Act
" means the Delaware Revised Uniform Limited Partnership Act, as amended, and any successor thereto.
(31)
"
Distributable Cash
" or
"Cash Available for Distribution"
means Cash Flow plus any amounts released from Reserves by the General Partner, less amounts allocated to Reserves by the General Partner.
(32)
"
Due Diligence Expenses
" means fees and expenses actually incurred by the Dealer-Manager or the Selling Dealers for bona fide due diligence efforts expended in connection with the Offering, but not to exceed .5% of the Gross Unit Price per Unit sold in the Offering as described in the Prospectus.
(33)
"
Effective Date
" means the date the Registration Statement is declared effective by the Commission.
(34)
"
Equipment
" means any new, used or reconditioned equipment and related property acquired by the Partnership, or in which the Partnership has acquired a direct or indirect interest, and shall also be deemed to include such equipment and related property or other tangible and intangible personal property which at any time is subject to, or serves as the collateral for, a Lease or a Secured Loan.
(35)
"Equipment Management"
means personnel and services necessary to the leasing activities of the Partnership, including but not limited to, leasing and re-leasing of Partnership Equipment, arranging for necessary maintenance and repair of the Equipment, collecting revenues, paying operating expenses, determining that the Equipment is used in accordance with all operative contractual arrangements and providing clerical and bookkeeping services necessary to the operation of Partnership Equipment.
(36)
"
Escrow Account
" means an interest-bearing account established and maintained by the Partnership, the General Partner and the Dealer-Manager with the Escrow Agent in accordance with the terms of the Escrow Agreement for the purpose of holding, pending the distribution thereof in accordance with the terms of the Escrow Agreement and this Agreement, any subscription funds received from Persons who may be admitted to the Partnership as Limited Partners on the Initial Closing Date.
(37)
"
Escrow Agent
" means Commerce Bank, NA, or another United States banking institution with at least $50 million in assets, which shall be selected by the General Partner to serve in such capacity pursuant to the Escrow Agreement.
(38)
"
Escrow Agreement
" means the Escrow Agreement among the Partnership, the General Partner, the Dealer-Manager and the Escrow Agent, substantially in the form of the Escrow Agreement filed as an exhibit to the Registration Statement, as amended and supplemented from time to time as permitted by its terms.
(39)
"
Final Closing Date
" means the last Closing Date in the Offering on which a Limited Partner (other than a Substitute Limited Partner) is admitted to the Partnership, which shall be as soon as practicable following the Termination Date.
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(40)
"
Financing Transaction
" means:
(i)
any extension of credit or loan of money to the Partnership that is secured by a security interest in the Partnership's Equipment or other tangible or intangible personal property of the Partnership, any Lease of any such property or any Secured Loan;
(ii)
any notes issued in connection with a securitization of Equipment, Equipment Leases, Secured Loans, or receivables therefrom; or
(iii)
any transaction in which the Partnership's Equipment, Equipment Leases or Secured Loans are sold to a Person for purposes of securitization and with customary retained rights or interests.
(41)
"
Fiscal Period
" means any interim accounting period within a Fiscal Year established by the General Partner.
(42)
"
Fiscal Quarter
" means, for each Fiscal Year, the 3-calendar-month period which commences on the first day of such Fiscal Year and each additional 3-calendar-month period commencing on the first day of the first month following the end of the preceding such period within such Fiscal Year (or such shorter period ending on the last day of a Fiscal Year).
(43)
"
Fiscal Year
" means the Partnership's annual accounting period established pursuant to Section 15.4.
(44)
"
Front-End Fees
" means fees and expenses paid by any Person for any services rendered during the Partnership's organizational and offering or acquisition phases, including Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses, Organization and Offering Expense Allowances, Acquisition Fees and Acquisition Expenses (other than any Acquisition Fees or Acquisition Expenses paid by a manufacturer of equipment to any of its employees unless such Persons are Affiliates of the General Partner) and all other similar fees however designated.
(45)
"
Full Payout Lease
" means any lease under which the aggregate noncancellable rental payments due during the initial term of the lease, on a net present value basis, are at least sufficient to permit the Partnership to recover the entire Purchase Price of the Equipment subject to the lease.
(46)
"
General Partner
" means LEAF Asset Management, LLC, and its successors or permitted assigns, as general partner of the Partnership.
(47)
"
Gross Asset Value
" means, with respect to any asset of the Partnership, the asset's adjusted tax basis, except that:
(i)
the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset at the time of such contribution;
(ii)
the Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair market values at the time specified in Treas. Reg. Section 1.704-1(b)(2)(iv)(f)(5) if the Partnership so elects;
(iii)
the Gross Asset Value of any Partnership asset distributed to any Partner shall be the gross fair market value of such asset on the date of distribution;
(iv)
to the extent not otherwise reflected in the Partners' Capital Accounts, the Gross Asset Values of Partnership assets shall be increased (or decreased) to appropriately reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b); and
(v)
if on the date of contribution of an asset or a revaluation of an asset in accordance with clauses (ii) through (iv), above, the adjusted tax basis of such asset differs from its fair market value, the Gross Asset Value of such asset shall thereafter be adjusted by reference to the depreciation method described in Treas. Reg. Section 1.704-1(b)(2)(iv)(g)(3).
(48)
"
Gross Offering Proceeds
" means the gross amount of Capital Contributions, before deduction of Front-End Fees, of all Limited Partners admitted to the Partnership.
(49)
"
Gross Revenues
" means gross cash receipts of the Partnership from whatever source, excluding Capital Contributions.
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(50)
"
Gross Unit Price
" means $100.
(51)
"
Income
" or "
Loss
" means, for any Fiscal Year, the Partnership's taxable income or loss for such Fiscal Year, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:
(i)
any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Income or Losses shall be applied to increase such taxable income or reduce such loss;
(ii)
any expenditure of the Partnership described in Code Section 705(a)(2)(B), or treated as such pursuant to Treas. Reg. Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Income and Loss, shall be applied to reduce such taxable income or increase such loss;
(iii)
gain or loss resulting from a taxable disposition of any asset of the Partnership shall be computed by reference to the Gross Asset Value of such asset and the special depreciation calculations described in Treas. Reg. Section 1.704-1(b)(2)(iv)(g), notwithstanding that the adjusted tax basis of such asset may differ from its Gross Asset Value;
(iv)
in lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss for such Fiscal Year, there shall be taken into account depreciation, amortization or other cost recovery determined pursuant to the method described in Treas. Reg. Section 1.704-1(b)(2)(iv)(g)(3); and
(v)
any items which are specially allocated pursuant to Section 11.2(f) shall not be taken into account in computing Income or Loss.
(52)
"
Indebtedness
" means, with respect to any Person as of any date, all obligations of such Person (other than capital, surplus, deferred income taxes and, to the extent not constituting obligations, other deferred credits and reserves) that could be classified as liabilities (exclusive of accrued expenses and trade accounts payable incurred in respect of property purchased in the ordinary course of business which are not overdue or which are being contested in good faith by appropriate proceedings and are not so required to be classified on such balance sheet as debt) on a balance sheet of such Person that is prepared in accordance with generally accepted accounting principles as of such date.
(53)
"
Independent Expert
" means a Person with no material current or prior business or personal relationship with the General Partner or its Affiliates, who is engaged to a substantial extent in the business of rendering appraisals regarding the value of assets of the type held by the Partnership and who is qualified to perform the work.
(54)
"
Initial Closing Date
" means the first Closing Date for the Partnership on which Limited Partners with Units equal to, or greater than, the Minimum Offering are admitted to the Partnership.
(55)
"
Investment in Equipment
" means the aggregate amount of Capital Contributions actually paid or allocated to the purchase, manufacture or renovation of Equipment acquired by the Partnership, together with other cash payments such as interest, taxes and Reserves allocable thereto (to the extent that Reserves do not exceed 3% of Capital Contributions), but excluding Front-End Fees.
(56)
"
Investment Committee
" means a committee of the General Partner's officers and directors that shall do the following on behalf of the Partnership:
(i)
establish credit review policies and procedures;
(ii)
supervise the efforts of the General Partner's credit department;
(iii)
approve significant transactions and transactions which differ from the standards and procedures the Investment Committee has established; and
(iv)
pursuant to Section 9.5, resolve conflicts in allocating Investments among Programs.
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(57)
"
Investments
" means the Partnership's portfolio, from time to time, of Equipment, Leases and Secured Loans.
(58)
"
IRA
" means an Individual Retirement Account.
(59)
"
IRS
" means the Internal Revenue Service or any successor agency thereto.
(60)
"
Lease
" means any Full Payout Lease, any Operating Lease and any residual value interest therein.
(61)
"Leasing Fee"
means the total of all fees and commissions paid by any Person in connection with the initial lease of Equipment acquired by the Partnership or an Affiliated Program.
(62)
"
Lender
" means any Person that lends cash or cash equivalents to the Partnership, including any Person that acquires by purchase, assignment, or otherwise, an interest in:
(i)
the future amounts payable under any Lease or Secured Loan and in the related Equipment or other assets; or
(ii)
payments due under any Financing Transaction and in any property securing the Financing Transaction.
(63)
"
Lessee
" means a lessee under a Lease.
(64)
"
Limited Partner
" means:
(i)
any Person who owns at least a portion of a Unit and who has been admitted to the Partnership as a Limited Partner, including Affiliated Limited Partners; and
(ii)
any Person who becomes a Substitute Limited Partner in accordance with this Agreement;
including the General Partner and its Affiliates to the extent they purchase Units.
(65)
"
Liquidation Period
" means the period commencing on the first day following the end of the Reinvestment Period and continuing for the period deemed necessary by the General Partner for the orderly termination of the Partnership's operations and affairs and the liquidation or disposition of the Partnership's Investments.
(66)
"
Majority
" or "
Majority Interest
" means Limited Partners owning more than 50% of the aggregate outstanding Units from time to time.
(67)
"
Management Fees
" means, for any month, the following fees, one or all of which may be payable to the General Partner, in an amount equal to the lesser of the maximum fees set forth in clauses (i) through (iv) below, compared with, in each case, fees that are reasonable and competitive and would customarily be paid to non-affiliated third-parties rendering similar services in the same geographic location and for similar types of investments. The maximum permitted Management Fees for the services described in clauses (i) through (iv), below, are as follows:
(i)
an amount equal to 0.08335% (1% annually) of Gross Revenues on Operating Leases managed by third-parties under the General Partner's supervision;
(ii)
an amount equal to 0.33333% (4% annually) of Gross Revenues on Operating Leases managed by the General Partner or its Affiliates;
(iii)
an amount equal to 0.16667% (2% annually) of Gross Revenues on Full Payout Leases which contain  Net Lease Provisions; and/or
(iv)
an amount equal to 0.16667% (2% annually) of Gross Revenues on Secured Loans.
(68)
"
Maximum Offering
" means the receipt and acceptance by the Partnership of subscriptions for not more than 1,200,000 Units, excluding the 10 Units subscribed for by the Original Limited Partner, on or before the Final Closing Date.
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(69)
"
Minimum Offering
" means the receipt and acceptance by the Partnership of subscriptions for not less than 20,000 Units, excluding the 10 Units subscribed for by the Original Limited Partner and any Units subscribed for by the General Partner or its officers, directors, employees or other Affiliates.
(70)
"
NASD
" means the National Association of Securities Dealers, Inc.
(71)
"Net Disposition Proceeds"
means the proceeds realized by the Partnership from the sale, refinancing or other disposition of Partnership Equipment, including insurance proceeds or lessee indemnity payments arising from the loss or destruction of the Equipment, less all Partnership liabilities.
(72)
"
Net Lease Provisions"
means contractual arrangements under which the lessee assumes responsibility for, and bears the cost of, insurance, taxes, maintenance, repair and operation of the leased asset and where the non-cancellable rental payments under the lease are absolutely net to the lessor. Notwithstanding, a lease may be deemed to contain net lease provisions even if some minor costs or responsibilities remain with the lessor or if the lessor retains the option to require and pay for a higher standard of care or a greater level of maintenance or insurance than would be imposed on the lessee under the terms of the lease.
(73)
"
Net Offering Proceeds
" means the Gross Offering Proceeds minus the Dealer-Manager Fees, Sales Commissions, Due Diligence Expenses and the Organization and Offering Expense Allowance payable by the Partnership.
(74)
"
Net Unit Price
" means the Gross Unit Price less an amount equal to 7% of the Gross Unit Price (equivalent to the Sales Commission, which will not be paid on the sale) for each Unit or fraction thereof purchased by an Affiliated Limited Partner.
(75)
"
Net Worth
" means, for any Person subscribing for Units, the excess of total assets over total liabilities as determined by generally accepted accounting principles, but excluding home, home furnishings and automobiles. Provided, however, that with respect to the General Partner, "Net Worth" means the excess of total assets over total liabilities as determined by generally accepted accounting principles, except that if any of the assets have been depreciated, then the amount of depreciation relative to any particular asset may be added to the depreciated cost of the asset to compute total assets. The amount of depreciation may be added only to the extent that the amount resulting after adding depreciation does not exceed the fair market value of the asset.
(76)
"
Notice
" means a writing containing the information required by this Agreement to be communicated to any Person and delivered as follows:
(i)
personally delivered to such Person;
(ii)
sent by registered, certified or regular mail, postage prepaid to such Person at the last known address of such Person; or
(iii)
sent by facsimile, with receipt confirmed by telephone during normal business hours.
(77)
"
Offering
" means the offering of Units pursuant to the Prospectus.
(78)
"
Offering Period
" means the period from the Effective Date to the Termination Date of the Offering.
(79)
"
Operating Lease
" means a lease under which the aggregate noncancellable rental payments during the original term of the lease, on a net present value basis, are not sufficient to recover the entire Purchase Price of the Equipment subject to the lease.
(80)
"
Operations
" means all operations and activities of the Partnership except Sales.
(81)
"
Organization and Offering Expense Allowance
" means an amount equal to 3.0% of the Gross Offering Proceeds.
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(82)
"
Organization and Offering Expenses
" means:
(i)
all costs and expenses incurred in connection with, and in preparing the Partnership for, qualification under federal and state securities laws and the securities laws of any other jurisdiction in which Units may be offered or sold and subsequently offering and distributing the Units to the public (except Sales Commissions, Due Diligence Expenses, and Dealer-Manager Fees) including, without limitation:
(A)
printing costs;
(B)
registration and filing fees;
(C)
attorneys', accountants' and other professional fees; and
(ii)
the direct costs of salaries to, and expenses (including costs of travel) of, officers and directors of the General Partner or any Affiliate of the General Partner while engaged in organizing the Partnership and registering, offering and selling the Units.
(83)
"
Participant
" means the holder of a Unit or Partnership Interest.
(84)
"
Participant List
" means a list, in alphabetical order by name, setting forth the name, address and business or home telephone number of, and number of Units held by, each Limited Partner. The list shall be printed on white paper in a readily readable type size (in no event smaller than 10-point type) and shall be updated at least quarterly to reflect any changes in the information contained therein.
(85)
"
Partner
" means the General Partner (including any Substitute General Partner) and any Limited Partner or Affiliated Limited Partner (including the Original Limited Partner and any Substitute Limited Partner).
(86)
"
Partner Nonrecourse Debt
" means any Partnership nonrecourse liability for which any Partner bears the economic risk of loss within the meaning of Treas. Reg. Section 1.704-2(b)(4).
(87)
"
Partner Nonrecourse Debt Minimum Gain
" has the meaning specified in Treas. Reg. Section 1.704-2(i)(3), and such additional amount as shall be treated as Partner Nonrecourse Minimum Gain pursuant to Treas. Reg. Section 1.704-2(j)(1)(iii).
(88)
"
Partner Nonrecourse Deductions
" consist of those deductions and in those amounts specified in Treas. Reg. Sections 1.704-2(i)(2) and (j).
(89)
"
Partnership
" means LEAF Equipment Leasing Income Fund III, L.P.
(90)
"
Partnership Interest
" means the Units owned by a Limited Partner or the percentage interest in the Partnership held by the General Partner.
(91)
"
Partnership Loan
" means any loan made to the Partnership by the General Partner or any Affiliate of the General Partner in accordance with Section 9.2(c).
(92)
"
Partnership Minimum Gain
" has the meaning specified in Treas. Reg. Sections 1.704-2(b)(2) and (d) and such additional amount as shall be treated as Partnership Minimum Gain pursuant to Treas. Reg. Section 1.704- 2(j)(1)(iii).
(93)
"
Partnership Nonrecourse Deductions
" consist of those deductions and in those amounts specified in Treas. Reg. Sections 1.704-2(c) and (j).
(94)
"
Payout
" means the time when the aggregate amount of cash distributions (from whatever sources) to a Limited Partner equals the amount of the Limited Partner's Capital Contribution plus the Cumulative Return compounded daily (in this case only) from a date not later than the last day of the calendar quarter in which the Limited Partner was admitted to the Partnership as a Limited Partner.
(95)
"
Person
" means any natural person, partnership, trust, corporation, limited liability company, association or other legal entity.
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(96)
"
Program
" means a limited or general partnership, joint venture, unincorporated association or similar unincorporated organization formed and operated for the primary purpose of investment in, and the operation of, or gain from, an interest in equipment, equipment leases or related instruments.
(97)
"
Prospectus
" means the prospectus included as part of the Registration Statement, as supplemented or amended.
(98)
"
Purchase Price
" means, with respect to any Investment, the price paid by, or on behalf of, the Partnership for or in connection with the purchase, acquisition or funding of the Investment, including the amount of the related:
(i)
Acquisition Fees;
(ii)
Acquisition Expenses; and
(iii)
all liens and encumbrances on the Investment, but excluding points and prepaid interest.
"Purchase Price" also includes, with respect to options to acquire an Investment, the sum of the exercise price and the price paid to acquire the option.
(99)
"
Qualified Plan
" means a pension, profit-sharing or stock bonus plan, including Keogh Plans, meeting the requirements of Sections 401 et seq. of the Code, and its related trust.
(100)
"
Redemption
" means the purchase of a portion or all of any Limited Partner's Units by the Partnership under Section 13.5.
(101)
"
Registration Statement
" means the Registration Statement on Form S-1 filed by the Partnership with the Commission under the Securities Act in the form in which the Registration Statement is declared to be effective for the offer and sale of the Partnership's Units.
(102)
"
Reinvestment Period
" means the period beginning with the Initial Closing Date and ending five years after the Final Closing Date.
(103)
"
Re-Leasing Fee
" means, with respect to any Equipment, a fee payable to the General Partner for providing re-leasing services to the Partnership, not to exceed the lesser of:
(i)
the competitive rate for comparable services for similar equipment; or
(ii)
2% of gross rental revenues derived from the re-lease of the Equipment after the time that the re-lease of the Equipment has been consummated as a result of the efforts of the General Partner or its Affiliates.
(104)
"
Reserves
" means reserves established and maintained by the Partnership for working capital, contingent liabilities and the acquisition of Investments.
(105)
"
Roll-Up
" means any transaction involving the acquisition, merger, conversion or consolidation, either directly or indirectly, of the Partnership with, and the issuance of securities of, a Roll-Up Entity. The term does not include:
(i)
a transaction involving securities of the Partnership if they have been listed on a national securities exchange or traded through the NASDAQ Stock Market (National Market System) for at least 12 months; or
(ii)
a transaction involving only the conversion of the Partnership to corporate, trust or association form if, as a consequence of the transaction, there will be no significant adverse change in:
(A)
Limited Partners' voting rights;
(B)
the term of existence of the Partnership;
(C)
the compensation of the General Partner or its Affiliates from the Partnership;
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(D)
the Partnership's investment objectives; or
(E)
the income taxation of the Partnership or the Limited Partners.
(106)
"
Roll-Up Entity
" means any partnership, corporation, trust, or other entity that is created by, or surviving after, the successful completion of a proposed Roll-Up transaction.
(107)
"
Sale
" means the sale, exchange, involuntary conversion, foreclosure, condemnation, taking, casualty (other than a casualty followed by refurbishing or replacement), or other disposition of an Investment.
(108)
"
Sales Commissions
" means, with respect to any Unit, an amount equal to 7% of the Gross Unit Price per Unit sold in the Offering.
(109)
"
Secured Loan"
means a loan or other extension of credit provided by the Partnership to a third-party end user to finance the end user's purchase of Equipment, with that Equipment being used as collateral for the repayment of the loan.
(110)
"
Securities Act
" means the Securities Act of 1933, as amended.
(111)
"
Selling Dealer
" means each member broker/dealer firm of the NASD that has been selected by the Partnership or the Dealer-Manager to offer and sell Units in the Offering and has entered into a Selling Dealer Agreement.
(112)
"
Selling Dealer Agreement
" means each of the agreements entered into between the Partnership or the Dealer-Manager and any Selling Dealer with respect to the offer and sale of Units.
(113)
"Specified Equipment Program"
means a Program where, at the time a securities registration is ordered effective, at least 75% of the net proceeds from the sale of program interests are allocable to the purchase or renovation of identified equipment or one specified type of identified equipment. Reserves shall not be included in the 75%.
(114)
"
Subordinated Remarketing Fee
" means, with respect to any Investment, a fee in the amount equal to the lesser of:
(i)
3% of the contract sales price applicable to the Investment; or
(ii)
one-half of a brokerage fee that is reasonable, customary and competitive in light of the size, type and location of the Investment.
(115)
"
Subscription Account
" means the interest-bearing account established and maintained by the Partnership for the purpose of holding subscription funds received from Persons who may be admitted to the Partnership as Limited Partners on any Closing Date subsequent to the Initial Closing Date, pending the acceptance or rejection of their subscriptions by the General Partner.
(116)
"
Subscription Agreement
" means the subscription agreement substantially in the form filed as an exhibit to the Prospectus.
(117)
"
Substitute General Partner
" means any Assignee of or successor to the General Partner admitted to the Partnership in accordance with Section 12.5.
(118)
"
Substitute Limited Partner
" means any Assignee of Units who is admitted to the Partnership as a Limited Partner under Section 13.3.
(119)
"
Termination Date
" means the earliest of:
(i)
the date on which the Maximum Offering has been sold;
(ii)
two years after the Effective Date (subject to the renewal, requalification or consent of each Administrator requiring the renewal, requalification or consent of the Offering with respect to the extension of the Offering Period beyond one year following the Effective Date in the Administrator's jurisdiction); or
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(iii)
any earlier date after the Effective Date as may be determined by the General Partner in its sole discretion.
(120)
"
Treasury Regulation
" or
"Treas. Reg."
means final or temporary regulations issued by the United States Treasury Department pursuant to the Code.
(121)
"
Unit
" or
"Partnership Interest of a Limited Partner"
means a unit of Limited Partner interest in the Partnership held by any Limited Partner, including rights to profits, losses, income, gain, credits, deductions, cash distributions, returns of capital, voting rights and other attributes of the Units all as provided by, and subject to the terms and provisions of, this Agreement.
(122)
"
Unpaid Cumulative Return
" means, as to any Limited Partner, the unpaid amount of the Limited Partner's Cumulative Return calculated through the date as of which the Unpaid Cumulative Return is being calculated, reduced (but not below zero) by the aggregate distributions previously made to the Limited Partner by the Partnership that are deemed to be a reduction of the Limited Partner's Unpaid Cumulative Return under Section 11.3(d)(i).
ARTICLE II - FORMATION OF PARTNERSHIP
2.1 Formation of Partnership.
The General Partner and the Original Limited Partner have previously formed the Partnership as a limited partnership under the Delaware Act. The General Partner and the Original Limited Partner hereby amend and restate in its entirety the original Agreement of Limited Partnership of the Partnership and agree that this Amended and Restated Agreement of Limited Partnership shall govern the rights and liabilities of the Partners, except as otherwise expressly provided in this Agreement.
ARTICLE III - NAME
3.1 Name.
The business of the Partnership shall be conducted under the name "LEAF Equipment Leasing Income Fund III, L.P." or such other name as the General Partner shall hereafter designate in writing to the Limited Partners.
ARTICLE IV - PLACES OF BUSINESS
4.1 Principal Place of Business.
The principal office and place of business of the Partnership in Delaware shall be 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801. The General Partner may from time to time change the Partnership's principal place of business in Delaware and, in such event, the General Partner shall notify the Limited Partners of such change in writing no later than 60 days following the effective date of such change.
4.2 Other Places of Business.
The Partnership may maintain such other offices and places of business within or outside the State of Delaware as the General Partner deems advisable.
ARTICLE V - NAMES AND ADDRESSES OF PARTNERS
5.1 Names and Addresses of Partners.
The name and address of the General Partner shall be as set forth in Section 19.1, and the names and addresses of the Limited Partners shall be as set forth in their respective Subscription Agreements, as the same may be supplemented or amended from time to time. Any Partner may change his, her or its respective place of business or residence, as the case may be, by giving Notice of such change to the Partnership (and, in the case of the General Partner, by also giving Notice thereof to all of the Limited Partners), which Notice shall become effective upon receipt by the Partnership.
ARTICLE VI - PURPOSES AND OBJECTIVES
6.1 Purposes.
The purpose and business of the Partnership are to:
(i)
acquire, invest in, purchase, own, hold, lease, re-lease, finance, refinance, loan, borrow, manage, maintain, operate, improve, upgrade, modify, exchange, assign, encumber, create or receive security interests in, pledge, sell, transfer or otherwise dispose of, and in all respects otherwise deal in or with, Equipment, Equipment Leases and Secured Loans of all kinds; and
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(ii)
engage in any and all businesses and to do any and all things permitted to a limited partnership under the Delaware Act.
6.2 Investment Objectives.
The investment objectives of the Partnership in conducting its business shall be to:
(i)
preserve, protect and return the Capital Contributions of the Partners;
(ii)
generate regular distributions sufficient to provide the Cumulative Return to the Limited Partners;
(iii)
enter into additional Equipment Leases and Secured Loans during the Reinvestment Period by borrowing funds, including securitizations, using the Partnership's Equipment, Equipment Leases and Secured Loans (or interests therein) as collateral as described in the "Investment Objectives and Strategies – Borrowing" section of the Prospectus and reinvesting the Partnership's excess Distributable Cash after paying Partnership expenses, establishing appropriate Reserves and distributing the Cumulative Return to the Limited Partners; and
(iv)
provide additional cash distributions to the Partners after the Reinvestment Period until all of the Partnership's Investments have matured and terminated on their own terms or have been sold or otherwise disposed of.
ARTICLE VII - TERM
7.1 Term.
The term of the Partnership began with the filing of its Certificate of Limited Partnership with the Secretary of State of the State of Delaware on May 16, 2006 and will end at midnight on December 31, 2031, unless sooner dissolved or terminated as provided in Article XIV of this Agreement.
ARTICLE VIII - PARTNERS AND CAPITAL
8.1 General Partner.
The General Partner has contributed $1,000 in cash as its Capital Contribution to the Partnership as consideration for its Partnership Interest.
8.2 Original Limited Partner.
The Original Limited Partner has made a capital contribution of $1.00 to the Partnership as consideration for 10 Units purchased by it. By its execution of this Agreement, the Original Limited Partner agrees to withdraw as Original Limited Partner, and the parties agree to return its capital contribution, and retire its original 10 Units, and restore its original 10 Units to the Maximum Offering, on the Initial Closing Date when additional Limited Partners are admitted to the Partnership.
8.3 Limited Partners and Maximum Offering.
From and after the Initial Closing Date there shall be one class of Limited Partners, which includes Affiliated Limited Partners. The General Partner is hereby authorized to obtain capital for the Partnership through the offer and sale of up to 1,200,000 Units ($120 million) to the Limited Partners.
8.4 Subscription Documents and Suitability.
Any Person desiring to become a Limited Partner shall execute and deliver to the General Partner a Subscription Agreement and such other documents as the General Partner reasonably requests. These documents shall be in form and substance reasonably satisfactory to the General Partner. Among other things, each Person shall, subject to acceptance of his subscription by the General Partner, agree to be bound by all of the terms and provisions of this Agreement. Units shall be sold only to Persons:
(i)
who represent that they have either:
(A)
an annual gross income of at least $45,000 and a Net Worth of at least $45,000; or
(B)
a Net Worth of at least $150,000; or
(ii)
who satisfy the suitability standards applicable in the state or other jurisdiction of their residence or domicile as set forth in the Prospectus, if those standards are more stringent than the standards described in clause (i) above.
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8.5
Payment of Subscription Price of Units and Limited Partners'
  Right (Other Than Residents of Ohio) to Elect to Use Cash Distributions to Purchase
  Units.
At the time of subscribing each Limited Partner
  (other than an Affiliated Limited Partner) shall make a Capital Contribution,
  in cash, in an amount equal to the Gross Unit Price for each Unit, or portion
  of a Unit, purchased. At the time of subscribing each Affiliated Limited Partner
  shall make a Capital Contribution, in cash, in an amount equal to the Net Unit
  Price for each Unit, or portion of a Unit, purchased.
Notwithstanding the foregoing:
(i)
Each Limited Partner (except Ohio residents) may elect on his Subscription Agreement to have his Partnership distributions reinvested in additional Units during the Offering Period, to the extent that Units are available for purchase, on the same terms as the purchase of the Limited Partner's original Units, other than the minimum required number of Units. In particular, the purchase price of these additional Units shall be the same price the Limited Partner paid for his original Units, either the Gross Unit Price or the Net Unit Price.
(ii)
Each Limited Partner (except Ohio residents) who has previously invested in any Program sponsored by the General Partner or its Affiliates may elect on his Subscription Agreement to have his cash distributions from one or more of the Affiliated Programs invested in Units during the Offering Period, to the extent that Units are available for purchase, on the same terms as the Units are being offered to other prospective Limited Partners, except that the minimum number of Units required to be purchased by Limited Partners under Section 8.6, below, shall not apply to these Limited Partners. In particular, the purchase price of the Units shall either be the Gross Unit Price or the Net Unit Price as applicable to that subscriber.
8.6 Minimum Subscription Amount.
Subject to exceptions for certain classes of Limited Partners described in Section 8.5, above, each Limited Partner must purchase a minimum of 50 Units unless a greater minimum number of Units is required by the Administrator of the Limited Partner's state or other jurisdiction of residence.
8.7 Subscriptions for Units by General Partner and its Affiliates.
The General Partner and any Affiliate of the General Partner shall have the right to subscribe for Units for its own account for investment purposes only; provided that the aggregate number of Units purchased by the General Partner and its Affiliates collectively shall not exceed approximately 5% of all Units sold.
8.8 Partnership Closings.
No subscribers shall be admitted to the Partnership unless and until the Minimum Offering shall be achieved. Upon the determination by the General Partner that the Minimum Offering has been achieved, the General Partner shall set the Initial Closing Date. Following the Initial Closing Date, weekly Closings will be held. The General Partner shall notify each subscriber whose subscription has been accepted by the General Partner as promptly as practical of such subscriber's admission as a Limited Partner.
8.9 Acceptance of Units.
Subscriptions for Units shall promptly be accepted or rejected by the General Partner after their receipt by the Partnership (but in any event not later than 30 days thereafter) and a confirmation of acceptance sent by the General Partner. The General Partner shall have the unconditional right to refuse to admit any subscriber as a Limited Partner. Each subscriber has the right to cancel his or her subscription before it has been accepted by the General Partner by providing written notice to the General Partner, signed by each subscriber, of their intent to cancel, in a form satisfactory to the General Partner. The Partnership may not complete a sale of Units to any Limited Partner until at least five business days after the date the Limited Partner received a final Prospectus.
8.10 Admission to Partnership as Limited Partners.
Each Person whose subscription is accepted by the General Partner shall be admitted to the Partnership as a Limited Partner, and shall for all purposes of this Agreement become and be treated as a Limited Partner, not later than 15 days after the Initial Closing Date or, thereafter, the last day of the calendar month following the date the subscription was accepted by the Partnership. The amount of the Capital Contribution made by each Limited Partner shall be set forth on the Partnership's books and records, which shall be supplemented or amended from time to time promptly following each Closing Date to reflect the name, address and Capital Contribution of each Limited Partner admitted to the Partnership as a result of such Closing; provided that any failure so to attend to such books and records following any Closing Date
shall not in any way affect the admission of any Limited Partner to the Partnership for all purposes of this Agreement if such Limited Partner was admitted to the Partnership at such Closing.
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8.11 Escrow Account and Subscription Account.
The General Partner shall establish the Escrow Account and the Subscription Account. From the date hereof to, but not including, the Initial Closing Date, all subscription funds shall be deposited in the Escrow Account. From and after the Initial Closing Date, all subscription funds shall be held by the Partnership in the Subscription Account until the release thereof.
On the Initial Closing Date or any subsequent Closing Date, all Gross Offering Proceeds then held in the Escrow Account or any Subscription Account, as the case may be, with respect to Units purchased by any Person admitted to the Partnership as a result of such Closing, together with any interest earned thereon, shall be released to the Partnership. The Partnership shall pay such interest to the Limited Partners, as their interests may appear, within at least 60 days after the applicable Closing Date. Subscription funds deposited by any Person whose subscription is rejected by the General Partner shall be promptly returned to that Person, together with any interest earned thereon and without deduction for any fees. In no event shall any Gross Offering Proceeds be held in the Escrow Account or a Subscription Account beyond the Termination Date before either being released to the Partnership upon a Closing or,
if the Minimum Offering has not been achieved, returned to the subscriber with any interest earned thereon and without deduction for any fees.
8.12 Separate Escrow Account for Residents of Iowa and Pennsylvania.
Notwithstanding any provision to the contrary in this Agreement, subscription funds received from residents of Iowa and Pennsylvania shall be held in a separate Escrow Account by the Escrow Agent on the terms set forth in the Escrow Agreement, and shall not be used in computing the Minimum Offering. At such time as subscriptions for 60,000 Units ($6 million) have been received and accepted by the Partnership, including the subscription funds of Iowa and Pennsylvania residents whose subscriptions have been accepted by the General Partner, the subscription funds of the Iowa and Pennsylvania residents whose subscriptions have been accepted shall be released from the Escrow Account to the Partnership and those Iowa and Pennsylvania residents shall be admitted to the Partnership as Limited Partners.
8.13 Partnership Capital
8.13(a). No Interest Paid on Capital Contributions
. No Partner shall be paid interest on any Capital Contribution, except for interest earned on subscription funds deposited in the Escrow Account before the Initial Closing Date or any Subscription Account as provided in Section 8.11.
8.13(b). No Limited Partner Right to Withdraw
. In addition to the redemption of the Original Limited Partner's Units, the Partnership may Redeem Units presented by Limited Partners for Redemption pursuant to Section 13.5 in the General Partner's sole discretion. No Partner shall have the right to otherwise withdraw or receive any return of such Partner's Capital Contribution, except as specifically provided in this Agreement, and no Capital Contribution shall be returned by the Partnership to any Partner in the form of any property other than cash.
8.13(c). No Limited Partner Priority
. Except as otherwise specifically provided in this Agreement, no Limited Partner shall have priority over any other Limited Partner as to:
(i)
the return of such Limited Partner's Capital Contribution or Capital Account;
(ii)
such Limited Partner's share of Income and Losses; or
(iii)
such Limited Partner's share of Distributable Cash.
8.13(d). No General Partner Personal Liability for Repayment
. Neither the General Partner nor any Affiliate of the General Partner shall have any personal liability for the repayment of the Capital Contribution of any Limited Partner.
8.14 Capital Accounts
8.14(a). Separate Capital Account
. A separate Capital Account shall be established and maintained for the General Partner and for each Limited Partner.
8.14(b). General Partner's Initial Capital Account
. The Capital Account of the General Partner initially shall be $1,000.
8.14(c). Limited Partner's Initial Capital Account
. The Capital Account of each Limited Partner initially shall be such Limited Partner's Capital Contribution.
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8.14(d). Increases to Capital Account
. The Capital Account of each Partner shall be increased by:
(i)
the amount of any additional money contributed by such Partner to the Partnership;
(ii)
the fair market value of any property contributed by such Partner to the Partnership (net of liabilities secured by such contributed property that the Partnership is considered to assume under Code Section 752); and
(iii)
allocations to such Partner of Income (or items thereof), including but not limited to items of income and gain specially allocated pursuant to Section 11.2(f).
8.14(e). Decreases to Capital Account
. The Capital Account of each Partner shall be decreased by:
(i)
the amount of money distributed to or on behalf of such Partner by the Partnership;
(ii)
the fair market value of any property distributed to or on behalf of such Partner by the Partnership (net of liabilities secured by such distributed property that such Partner is considered to assume under Code Section 752); and
(iii)
allocations to such Partner of Partnership Losses (or items thereof), including but not limited to items of loss and deduction specially allocated pursuant to Section 11.2(f).
8.14(f). General Partner's Single Capital Account
. For purposes of this Agreement, a General Partner who also owns Units as a Limited Partner shall have a single Capital Account that reflects both its General Partner and Limited Partner interests in the Partnership, regardless of the time or manner in which such interests were acquired.
8.14(g). General Partner's Capital Account on Sales
. If the Partnership Interest of a General Partner or a Unit is sold or otherwise transferred, the Capital Account of the transferor with respect to the Partnership Interest or the Unit transferred shall carry over to the transferee in accordance with Treas. Reg. Section 1.704-1(b)(2)(iv)(l). However, if the transfer causes a termination of the Partnership under Code Section 708(b)(1)(B), the Capital Account that carries over to the transferee shall be adjusted in accordance with the constructive contribution and liquidation rules under Treas. Reg. Section 1.708-1.
8.14(h). Section 754 Election
. For any taxable year in which the Partnership has a Code Section 754 election in effect, the Capital Accounts shall be maintained in accordance with Treas. Reg. Section 1.704-1(b)(2)(iv)(m). The Partnership shall not be required to make any elections pursuant to Code Section 754.
8.14(i). Revaluation
. Upon the occurrence of the events specified in Treas. Reg. Section 1.704-1(b)(2)(iv)(f), the Partners' Capital Accounts shall be adjusted and thereafter maintained to reflect the revaluation of Partnership assets on the books of the Partnership in accordance with such Treasury Regulation and Treas. Reg. Sections 1.704-1(b)(2)(iv)(f) through (h).
8.14(j). Capital Accounts Maintained in Accordance with Treasury Regulations
. Notwithstanding anything herein to the contrary, the Partners' Capital Accounts shall at all times be maintained in the manner required by Treas. Reg. Section 1.704-1(b)(2)(iv), and any questions or ambiguities arising under this Agreement shall be resolved by reference to such Treasury Regulations. Further, such Treasury Regulations shall govern the maintenance of the Capital Accounts to the extent this Agreement does not provide for the treatment of a particular item. In the event Treas. Reg. Section 1.704-1(b)(2)(iv) does not provide for a particular item, such Capital Account adjustments shall be made in a manner that is consistent with the underlying economic arrangement of the Partners based, wherever practicable, on federal tax accounting principles.
8.15 Limitations on Additional Capital Contributions
8.15(a). Additional Capital Contributions of General Partner
. The General Partner shall not be required to make any Capital Contribution in addition to its initial $1,000 Capital Contribution except pursuant to and in accordance with Section 14.2(c)(ii) of this Agreement.
8.15(b). Additional Capital Contributions of Limited Partners
. No Limited Partner shall be required to make any Capital Contribution in addition to the Capital Contribution required under Section 8.3(c).
8.16
  Loans by Partners.
Except as provided otherwise in Section
  14.2(c)(ii), no loan by any Partner or any Affiliate of any Partner to the Partnership
  (including, without limitation, any Partnership Loan) shall constitute a Capital
  Contribution to the Partnership or increase the Capital Account balance of any
  Partner, but shall be treated, for all purposes, as Indebtedness of the Partnership
  payable or collectible only out of the assets of the Partnership in accordance
  with the terms and conditions upon which such loan was made.
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ARTICLE IX - POWERS, RIGHTS AND DUTIES OF GENERAL PARTNER
9.1 Extent of Powers and Duties
9.1(a). General.
Except as expressly limited by the provisions of this Agreement, the General Partner shall have complete and exclusive discretion to manage and control the affairs and business of the Partnership and may employ all powers necessary, convenient or appropriate to carry out the purposes, conduct the business and exercise the powers of the Partnership.
The General Partner shall have fiduciary responsibility for the safekeeping and use of all funds and assets of the Partnership, whether or not in the General Partner's immediate possession or control.
9.1(b). Powers and Duties.
Pursuant to the authority granted in this Section 9.1, and subject only to the limitations otherwise provided in this Agreement, the General Partner's powers and duties shall include, but not be limited to, the following:
(i)
to acquire, invest in, purchase, own, hold, lease, re-lease, finance, refinance, borrow, loan, manage, maintain, operate, improve, upgrade, modify, exchange, assign, encumber, create and receive security interests in, pledge, sell, transfer or otherwise dispose of, and in all respects otherwise deal in or with, Investments and other tangible or intangible property (including securities, debt instruments, contract rights, lease rights, equity interests and, to the extent permitted by Section 9.1(b)(xviii), joint ventures), and to contract with others to do the same on behalf of the Partnership;
(ii)
to select and supervise the activities of any Equipment management agents for the Partnership;
(iii)
to assure the proper application of revenues of the Partnership;
(iv)
to maintain proper books of account for the Partnership and to prepare reports of operations and tax returns required to be furnished to the Partners pursuant to this Agreement or to taxing bodies or other governmental agencies, including Administrators, in accordance with applicable laws and regulations;
(v)
to enter into the Dealer-Manager Agreement with the Dealer-Manager to select Selling Dealers to offer and sell Units;
(vi)
to invest any and all funds held by the Partnership;
(vii)
to designate depositories of the Partnership's funds, and establish the terms and conditions of such deposits and drawings thereon;
(viii)
to enter into Financing Transactions and otherwise to borrow money or procure extensions of credit for the Partnership (except that neither the Partnership nor the General Partner shall borrow money solely for the purpose of making Cash Distributions during the Reinvestment Period that the Partnership would otherwise be unable to make) and, in connection therewith, to execute, seal, acknowledge and deliver agreements, promissory notes, guarantees and other written documents evidencing Financing Transactions or constituting obligations or evidences of Indebtedness and to pledge, hypothecate, mortgage, assign, transfer or convey mortgages or security interests in Investments or any other assets of the Partnership as security therefor;
(ix)
to hold all or any portion of the Investments and other assets of the Partnership in the name of one or more trustees, nominees, or other entities or agents of or for the Partnership;
(x)
to acquire and enter into any contract which the General Partner deems necessary or appropriate for the protection of the Partnership and (subject to Sections 9.2(b), 9.2(c) and 9.2(g)) the General Partner, for the conservation of Partnership assets, or for any purpose convenient or beneficial to the Partnership;
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(xi)
to employ agents, employees, managers, accountants, attorneys, consultants and other persons in the operation and management of the business of the Partnership including, but not limited to, Affiliates of the General Partner, supervisory managing agents, management agents, and lease, loan or securities brokers, on such terms and for such compensation as the General Partner shall determine, provided, however, that, with respect to services provided by the General Partner or its Affiliates, compensation for such services shall be limited as specifically set forth in this Agreement;
(xii)
to cause the Partnership to make or revoke any of the elections referred to in Sections 108, 732, 754 and 1017 of the Code or any similar provisions enacted in lieu thereof;
(xiii)
to select as the accounting year for the Partnership the calendar year or such other fiscal year as may be permitted under the Code or approved by the IRS;
(xiv)
to determine the accounting method or methods to be used by the Partnership (the Partnership intends initially to use the accrual method of accounting in maintaining its books and records) in accordance with the Code;
(xv)
to require in all Partnership obligations to any Person other than a Limited Partner, as such, that the General Partner shall not have any personal liability thereon, but that the person or entity contracting with the Partnership must look solely to the Partnership and its assets for satisfaction;
(xvi)
to invest temporarily the Gross Offering Proceeds or Net Offering Proceeds in short term, highly liquid investments where there is appropriate safety of principal, before such funds are used to make or acquire Investments;
(xvii)
to execute or sign, individually or jointly, a check or certificate on behalf of the Partnership;
(xviii)
to cause the Partnership to invest in a joint venture to own one or more Investments with any one or more Affiliated Programs if the General Partner determines, in its sole discretion, that:
(A)
doing so would be in the best interest of the Partnership and the Affiliated Program;
(B)
the Partnership and the Affiliated Program would have substantially identical investment objectives;
(C)
there would be no duplicate fees;
(D)
the compensation of the sponsor of the Affiliated Program would be substantially identical to the compensation of the General Partner from the Partnership;
(E)
the Partnership would have the right of first refusal to purchase any Investment jointly owned with the Affiliated Program that the Affiliated Program wishes to sell;
(F)
the respective investments in the Investment by the Partnership and the Affiliated Program would be on substantially the same terms and conditions; and
(G)
the joint venture would be entered into either for the purpose of effecting appropriate diversification for the Partnership and the Affiliated Program, or for the purpose of relieving the General Partner or its Affiliates from a commitment entered into pursuant to Section 9.2(b);
(xix)
to pay, extend, renew, modify, adjust, submit to arbitration, prosecute, defend or compromise, upon such terms as it may determine and upon such evidence as it may deem sufficient, any obligation, suit, liability, cause of action or claim, including those relating to federal, state or local taxation, either in favor of or against the Partnership;
(xx)
to establish and maintain Reserves for such purposes and in such amounts, and to increase or reduce such amounts, as it deems appropriate from time to time, but initially the Partnership's Reserves shall not be less than an amount equal to 1% of the Gross Offering Proceeds;
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(xxi)
subject to Section 8.3, to do all things necessary or advisable, in its sole discretion, to effect the admission of the Limited Partners, including, but not limited to, registering the Units under the Securities Act and effecting the qualification of, or obtaining exemptions from the qualification of, the Units for sale with Administrators, and determining that the purchase of Units is a suitable and appropriate investment for each Limited Partner, based on information provided by each Limited Partner regarding his financial situation and investment objectives;
(xxii)
to enter into the Escrow Agreement on behalf of the Partnership and provide for such compensation to the Escrow Agent as the General Partner may deem reasonable under the circumstances, which compensation shall be deemed to be and shall constitute an Organization and Offering Expense payable by the General Partner;
(xxiii)
to cause the Partnership to Redeem, or elect not to Redeem, Units, in its sole discretion, on request therefor by a Limited Partner as provided in Section 13.5;
(xxiv)
to cause the Partnership to obtain and pay the premiums with respect to insurance policies covering such risks as the General Partner deems reasonably necessary to protect the interests of the Partnership; provided that the General Partner, its Affiliates and their respective employees and agents may be named as additional insured parties thereunder only if the cost of premiums payable by the Partnership is not increased thereby or if the additional cost, if any, is paid by the General Partner and its Affiliates; and provided further, that the Partnership shall not incur or assume the cost of any portion of any insurance which insures any party against any liability the indemnification of which is prohibited by Section 9.3(b);
(xxv)
during the Reinvestment Period, but subject to the limitations and requirements of Section 11.1(b), to reinvest all or a substantial portion of the Partnership's Distributable Cash in additional Investments;
(xxvi)
subject to Section 9.2(m), to enter into on behalf of the Partnership arrangements with itself or its Affiliates to provide services for the Partnership, if necessary, in addition to those provided for under this Agreement or the Origination and Servicing Agreement, which additional arrangements must meet the following criteria:
(A)
the compensation, price or fee charged for providing such services must be comparable and competitive with the compensation, price or fee of any other Person who is rendering comparable services or selling or leasing comparable goods and materials which could reasonably be made available to the Partnership;
(B)
the fees and other terms of the contract shall be fully disclosed; and
(C)
the General Partner or its Affiliate providing the services must be independently engaged in the business of providing those services to Persons other than Affiliates of the General Partner; and
(xxvii)
to take all such actions and execute all such documents and other instruments as the General Partner may deem necessary, convenient or advisable to accomplish or further the purposes or objectives of the Partnership or to protect and preserve Partnership assets.
9.1(c). Delegation of Powers
. Except as otherwise provided under this Agreement or by law, the General Partner may, in its sole discretion, delegate all or any of its duties under this Agreement to, and may elect, employ, contract or deal with, any Person, including any Affiliate of the General Partner.
9.1(d). Reliance by Third-Parties
. No Person dealing with the Partnership or its Investments or other assets, whether as assignee, lessee, purchaser, borrower, mortgagee, grantee or otherwise, shall be required to investigate the authority of the General Partner in selling, assigning, leasing, mortgaging, conveying or otherwise dealing with any Investments or other assets or any part thereof, nor shall any such assignee, lessee, purchaser, mortgagee, grantee or other Person entering into a contract with the Partnership be required to inquire as to whether the approval of the Partners for any such assignment, lease, sale, mortgage, transfer or other transaction has been first obtained. Any such Person shall be conclusively protected in relying upon a certificate of authority or of any other material fact signed by the General Partner, or in accepting any instrument signed by the
General Partner in the name and on behalf of the Partnership or the General Partner.
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9.2 Limitations on the Exercise of Powers of General Partner.
The General Partner shall have no power to take any action prohibited by this Agreement or by the Delaware Act. Furthermore, the General Partner shall be subject to the following in the administration of the Partnership's business and affairs:
9.2(a). Investment Company Status
. The General Partner shall use its best efforts to assure that the Partnership shall not be deemed to be an "investment company" within the meaning of the Investment Company Act of 1940, as amended.
9.2(b). Sales and Leases of Investments from or to the General Partner and its Affiliates
. The Partnership shall neither purchase nor lease Investments from, nor sell or lease Investments to, the General Partner, any Affiliate of the General Partner or any Affiliated Program (including any Investment in which the General Partner or any of its Affiliates has an interest) except as provided in this Section 9.2(b). Notwithstanding the foregoing, the Partnership may purchase Investments from the General Partner or any of its Affiliates (but not including an Affiliated Program) if:
(i)
the General Partner determines, in its sole discretion, that making the Investment is in the best interests of the Partnership;
(ii)
the Investment is purchased by the Partnership at a Purchase Price that does not exceed the sum of:
(A)
the cost to the General Partner or the Affiliate of acquiring and holding the Investment (as determined under United States generally accepted accounting principles and as adjusted for any income received, capital or investment returned and reasonable and necessary expenses paid or incurred while holding the Investment); plus
(B)
any compensation to which the General Partner and any Affiliate of the General Partner is entitled to under this Agreement;
(iii)
there is no difference in the interest terms of any Indebtedness secured by the Investment at the time it is acquired by the General Partner or such Affiliate and the time it is acquired by the Partnership;
(iv)
neither the General Partner nor any Affiliate of the General Partner receives any other benefit, other than compensation permitted by this Agreement, as a result of the Partnership purchasing the Investment; and
(v)
at the time of transfer thereof to the Partnership, the General Partner or such Affiliate had held such Investment on a temporary or interim basis (generally not longer than 6 months) for the purposes of:
(A)
facilitating the acquisition of such Investment by the Partnership;
(B)
borrowing money or obtaining financing for the Partnership; or
(C)
any other lawful purpose related to the business of the Partnership.
9.2(c). Loans to or from the General Partner and its Affiliates
. No loans may be made by the Partnership to the General Partner or any Affiliate of the General Partner. The General Partner or any Affiliate of the General Partner may loan or advance funds to the Partnership provided that:
(i)
any interest or other financing charges or fees payable by the Partnership in connection with the loan shall not exceed the lesser of the following:
(A)
the rate of interest and other amounts paid or payable by the General Partner or the Affiliate in connection with the loan (if the General Partner or the Affiliate borrowed money for the specific purpose of making the loan); or
(B)
the rate of interest and other amounts that would be charged to the Partnership (without reference to the General Partner's or the Affiliate's financial abilities or guarantees) by unrelated lending institutions on a comparable loan for the same purpose in the same geographic area (if neither the General Partner nor the Affiliate borrowed money to make the loan); and
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(ii)
all payments of principal and interest on the loan must be due and payable within 12 months after the date on which the loan is made.
If the General Partner or any Affiliate of the General Partner purchases an Investment in its own name and with its own funds in order to facilitate the ultimate purchase of the Investment by the Partnership, the General Partner or the Affiliate, as the case may be, shall be deemed to have made a loan to the Partnership in the amount of the Purchase Price and shall be entitled to receive interest on that amount in accordance with clause (i) above. However, any advances made by the General Partner or any Affiliate of the General Partner for the purpose of paying Organization and Offering Expenses shall not constitute a loan to the Partnership. Instead, those advances shall be reimbursed to the General Partner or the Affiliate (to the extent possible) from the Organization and Offering Expense Allowance without interest thereon in accordance with, and to the extent provided in, Section 9.4(e).
9.2(d). No Exchange of Partnership Units for Investments
. The Partnership shall not acquire any Investments in exchange for Units.
9.2(e). Roll-Ups
. Any proposal that the Partnership enter into a Roll-Up shall require the Consent of a Majority Interest. The Partnership shall not reimburse the sponsor of a proposed Roll-Up for the costs of its proxy contest, nor bear any other costs of the transaction if the Roll-Up is not approved by a Majority Interest. Any proposed Roll-Up shall also be subject to the following:
(i)
An Appraisal of all Partnership assets shall be obtained from a competent, Independent Expert. If the appraisal will be included in a prospectus used to offer the securities of a Roll-Up Entity, the appraisal shall be filed with the Commission and applicable Administrators as an exhibit to the registration statement for the offering. Partnership assets shall be appraised on a consistent basis. The appraisal shall be based on an evaluation of all relevant information, and shall indicate the value of the Partnership's assets as of a date immediately prior to the announcement of the proposed Roll-Up transaction. The appraisal shall assume an orderly liquidation of Partnership assets over a 12-month period. The terms of the engagement of the Independent Expert shall clearly state that the engagement is for the benefit of the Partnership and its Limited Partners. A summary of the
independent appraisal, indicating all material assumptions underlying the appraisal, shall be included in a report to the Limited Partners in connection with a proposed Roll-Up transaction.
(ii)
The Person sponsoring the Roll-Up transaction shall offer to Limited Partners who vote "no" on the proposal the choice of:
(A)
accepting the securities offered in the proposed Roll-Up transaction; or
(B)
one of the following:
(1)
remaining as Limited Partners, and preserving their Units in the Partnership on the same terms and conditions as existed previously; or
(2)
receiving cash in an amount equal to the Limited Partners' pro-rata share of the appraised value of the net assets of the Partnership.
(iii)
The Partnership shall not participate in any proposed Roll-Up transaction which would result in Limited Partners having voting rights which are less than those provided for under this Agreement. If the Roll-Up Entity is a limited partnership, the voting rights of Limited Partners shall correspond to the voting rights provided for in this Agreement to the greatest extent possible.
(iv)
The Partnership shall not participate in any proposed Roll-Up transaction which includes provisions which would operate to materially impede or frustrate the accumulation of shares by any purchaser of the securities of the Roll-Up Entity (except to the minimum extent necessary to preserve the tax status of the entity). The Partnership shall not participate in any proposed Roll-Up transaction which would limit the ability of a Limited Partner to exercise the voting rights of the securities of the Roll-Up Entity on the basis of the number of Units held by that Limited Partner.
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(v)
The Partnership shall not participate in any proposed Roll-Up transaction in which Limited Partners' rights of access to the records of the Roll-Up Entity will be less than those provided for under this Agreement.
9.2(f). No Exclusive Listings
. No exclusive listing for the sale of Investments, or of any other Partnership assets, shall be granted to the General Partner or any Affiliate of the General Partner.
9.2(g). Other Transactions Involving the General Partner and its Affiliates
. Except as specifically permitted by this Agreement, including but not limited to the Origination and Servicing Agreement, Section 9.1(b)(xxviii) and Subsection (m) below, the General Partner shall not enter into any agreements, contracts or arrangements on behalf of the Partnership with the General Partner, any Affiliate of the General Partner or any Affiliated Program.
Except as permitted by Section 9.4, neither the General Partner nor any Affiliate of the General Partner shall receive, directly or indirectly, a commission or fee in connection with the reinvestment of Distributable Cash in new Investments.
Neither the General Partner nor any of its Affiliates may receive any rebates or "give-ups," nor may the General Partner or any of its Affiliates participate in any reciprocal business arrangements that could have the effect of circumventing any of the provisions of this Agreement.
9.2(h). Payments to Investor Advisors
. Neither the General Partner nor any Affiliate of the General Partner shall, directly or indirectly, pay or award any commissions or other compensation to any Person engaged by a potential investor as an investment advisor as an inducement to such Person to advise the potential investor concerning the Units. Provided, however, this Section 9.2(h) shall not prohibit the payment to any such Person of the Dealer-Manager Fees, Sales Commissions, and Due Diligence Expenses in accordance with the terms of this Agreement and the Dealer-Manager Agreement.
9.2(i). Sale of All or Substantially All Assets; Dissolution
. During the Reinvestment Period, the General Partner may not dissolve the Partnership or sell or otherwise dispose of all or substantially all of the assets of the Partnership without the Consent of a Majority Interest, except that the General Partner may sell all or substantially all of the Partnership's assets as part of a Financing Transaction on behalf and for the benefit of the Partnership.
9.2(j). No Investments in or Underwriting of Interests of Other Programs
. The Partnership shall not invest in or underwrite the equity interests of any other Program; provided, however, that nothing herein shall preclude the Partnership from making investments in joint ventures to the extent and in the manner provided in Section 9.1(b)(xviii).
9.2(k). Use of Partnership's Assets
. The General Partner shall not employ, nor permit any other Person to employ, the Partnership's funds or assets in any manner except for the exclusive benefit of the Partnership. In addition, the Partnership shall not invest from time to time more than 30% of its funds and assets, including but not limited to Capital Contributions and the proceeds of Financing Transactions then available for investment, in Secured Loans.
9.2(l). Fiduciary Duty to Limited Partners
. Neither the General Partner nor any Affiliate shall permit a Limited Partner to contract away the fiduciary duty owed to the Limited Partner by the General Partner or its Affiliates under Delaware law and, to the extent applicable, common law.
9.2(m). Contracts for Goods and Services
. All services or goods for which the General Partner or any of its Affiliates is to receive compensation which are not otherwise described in this Agreement or the Origination and Servicing Agreement shall be embodied in a written contract which precisely describes the services to be rendered and all compensation to be paid. Other than contracts specifically authorized under this Agreement, including without limitation the Origination and Servicing Agreement, the contract may only be modified by a Majority vote of the Limited Partners, and the contract shall contain a clause allowing its termination without penalty by a Majority vote of the Limited Partners on 60 days' notice to the General Partner or its Affiliates, as the case may be.
9.3 Limitation on Liability of General Partner and its Affiliates; Indemnification
9.3(a). Limitation on General Partner's Liability
. Neither the General Partner nor any Affiliate of the General Partner shall have any liability to the Partnership or to any Partner for any loss suffered by the Partnership or the Limited Partners that arises out of any action or inaction of the General Partner or its Affiliates if:
(i)
the General Partner and its Affiliates determined in good faith that the course of conduct was in the best interest of the Partnership;
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(ii)
the General Partner and its Affiliates were acting on behalf of, or performing services for, the Partnership; and
(iii)
the course of conduct did not constitute negligence or misconduct of the General Partner or its Affiliates.
9.3(b). Indemnification of General Partner
. The General Partner and its Affiliates shall be indemnified by the Partnership against any losses, judgments, liabilities, expenses, and amounts paid in settlement of any claims sustained by them in connection with the Partnership, provided that:
(i)
the General Partner and its Affiliates determined in good faith that the course of conduct that caused the loss or liability was in the best interest of the Partnership;
(ii)
the General Partner and its Affiliates were acting on behalf of, or performing services for, the Partnership; and
(iii)
the course of conduct was not the result of negligence or misconduct of the General Partner or its Affiliates.
9.3(c). Securities Act Liability
. Notwithstanding the above, the General Partner and its Affiliates, including the Dealer-Manager, and any Person acting as a broker-dealer, including the Selling Dealers, shall not be indemnified by the Partnership for any losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws unless:
(i)
there has been a successful adjudication on the merits of each count involving securities law violations as to the particular indemnitee and a court of competent jurisdiction has approved indemnification of the litigation costs; or
(ii)
such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee and a court of competent jurisdiction has approved indemnification of the litigation costs; or
(iii)
a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee and a court of competent jurisdiction has found that indemnification of the settlement and related costs should be made.
In any claim for indemnification for federal or state securities law violations, the party seeking indemnification shall apprise the court of the position of the Commission and, if a position be taken by it, the Administrator in any jurisdiction in which Units have been sold, with respect to the issue of indemnification for securities law violations before seeking the court's approval for the indemnification.
9.3(d). Insurance
. Any amounts payable pursuant to this Section 9.3 shall be recoverable solely out of the assets of the Partnership and not from the Limited Partners. The Partnership shall not incur the cost of that portion of any insurance which insures any party against any liability the indemnification of which is herein prohibited; provided, however, that with respect to public liability insurance obtained by the Partnership in connection with any Investment or operations of the Partnership, the General Partner shall be permitted to add itself as an additional insured thereunder so long as and to the extent that the General Partner shall pay for the incremental premium costs resulting from its being added as an additional insured, if any.
For purposes of this Section 9.3, "public liability insurance" shall include insurance which would cover damage to property or personal injury to non-affiliated persons incurred during the performance of services related to the Partnership and its operations.
9.4 Compensation of General Partner and its Affiliates.
Neither the General Partner nor any of its Affiliates shall receive any compensation except in accordance with this Section 9.4, Section 9.1(b)(xxvii), Section 9.2(m), Section 14.2, and Section 15.9.
9.4(a). Allocations and Distributions
. The General Partner shall be entitled to receive the allocations and distributions provided in Article XI and Article XIV with respect to its Partnership Interest.
9.4(b). Dealer-Manager Fees
. Dealer-Manager Fees shall be paid by the Partnership to the Dealer-Manager for each Unit sold.
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9.4(c). Sales Commissions
. Sales Commissions shall be paid by the Partnership to the Dealer-Manager, all or a portion of which the Dealer-Manager may reallow to the Selling Dealers for the respective Units sold by each of them at the Gross Unit Price, but no Sales Commissions shall be payable by the Partnership for any Units sold by any Person to Affiliated Limited Partners at the Net Unit Price.
9.4(d). Due Diligence Expenses
. Due Diligence Expenses shall be paid by the Partnership to the Dealer-Manager, all of which the Dealer-Manager shall reallow to the Selling Dealers for the respective Due Diligence Expenses incurred by each of them; provided that no Due Diligence Expenses shall be payable by the Partnership to the Dealer-Manager for any Units sold to the General Partner and its Affiliates, or any Units sold through the officers and directors of the General Partner on behalf of the Partnership.
9,4(e). Organization and Offering Expense Allowance
. The Partnership shall pay, immediately following each Closing Date, the Organization and Offering Expense Allowance to the General Partner without deduction for Dealer-Manager Fees, Sales Commissions and Due Diligence Expenses payable by the Partnership. The General Partner shall bear any Organization and Offering Expenses incurred by the General Partner or its Affiliates (including, without limitation, the Dealer-Manager) in excess of the Organization and Offering Expense Allowance.
9.4(f). Acquisition Fees and Acquisition Expenses
. In connection with any Investment, the Partnership shall pay to the General Partner, for services rendered in connection with acquiring such Investment, an Acquisition Fee equal to the difference (to the extent greater than zero) between:
(i)
2% of the Purchase Price paid by the Partnership for any Investment (which Purchase Price shall be determined for purposes of this Section 9.04(f) only, by excluding the General Partner's Acquisition Fee as calculated under this Section 9.04(f), but including the General Partner's and its Affiliates' Acquisition Expenses related to the Investment and all other components of the Purchase Price as that term is defined in this Agreement); and
(ii)
the aggregate amount of Acquisition Fees paid by or on behalf of the Partnership to any other Person in connection with such Investment.
Provided, however, that:
(i)
no Acquisition Fees shall be paid by or on behalf of the Partnership to any finder or broker that is an Affiliate of the General Partner except to the extent permitted by this Section 9.4(f);
(ii)
Acquisition Fees shall include Acquisition Expenses, except that for purposes of this Section 9.4 fees payable to finders or brokers that are not Affiliates of the General Partner that are otherwise included within Acquisition Fees shall be treated as an expense of the Partnership payable as provided in Section 9.4(j) and shall not be treated as Acquisition Fees or Acquisition Expenses except for purposes of determining the Purchase Price of the Investment;
(iii)
the Partnership shall not pay any Acquisition Fees, fees payable to finders or brokers that are not Affiliates of the General Partner, or other Front-End Fees, or any part thereof, that would cause the Partnership's Investment in Equipment (including Equipment that at any time is subject to, or is the collateral for, Leases or Secured Loans) to be less than the greater of:
(A)
80% of the Partnership's Gross Offering Proceeds from the sale of Units, reduced by .0625% for each 1% of Indebtedness encumbering the Partnership's Investments; or
(B)
75% of the Partnership's Gross Offering Proceeds.
To calculate the percentage of Indebtedness encumbering the Partnership's Investments, the aggregate amount of such Indebtedness shall be divided by the aggregate Purchase Price (without deduction for Front-End Fees) paid for all Investments. The quotient so calculated shall be multiplied by .0625% to determine the percentage to be deducted from 80%. Where the Partnership purchases an Investment from the General Partner or one of its Affiliates pursuant to Section 9.2(b) for a Purchase Price that includes the amount of an Acquisition Fee, the Acquisition Fee shall be deemed paid under this Section 9.4(f) and there shall be no duplicate payment of the Acquisition Fee; and.
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(iv)
the General Partner and its Affiliates shall not receive reimbursement of their Acquisition Expenses from the Partnership other than indirectly through their receipt of the Purchase Price or the related Acquisition Fee of an Investment or as otherwise provided in Section 9.4(j).
9.4(g). Management Fees
. For management services rendered, the Partnership shall pay the Management Fees to the General Partner each month during the Reinvestment Period, but only after Distributable Cash in an amount sufficient to pay any accrued Unpaid Cumulative Return in that month has been either distributed or added to Reserves to be distributed later in that month.
To the extent that the Partnership's Distributable Cash in any month is insufficient to distribute any accrued Unpaid Cumulative Return in that month and pay the General Partner's Management Fees for that month, the payment of the Management Fees shall be deferred and paid to the General Partner, without interest, in the next following month in which the Partnership generates sufficient Distributable Cash to pay the Management Fees and distribute any accrued Unpaid Cumulative Return. Reserves established for distributing Unpaid Cumulative Returns as set forth in the first sentence of this Section 9.4(g) shall not be used for any other purpose.
9.4(h). Subordinated Remarketing Fees
. For services rendered in connection with the sale of any Investment, the Partnership shall pay the applicable Subordinated Remarketing Fee to the General Partner; provided that:
(i)
no Subordinated Remarketing Fee shall be paid before Payout; and
(ii)
the General Partner shall not be entitled to receive that portion of any Subordinated Remarketing Fee that would cause the total commissions paid to all Persons in connection with the sale of the Investment to exceed a fee for their services that is reasonable, customary and competitive in light of the size, type and location of the Investment. After Payout, any and all Subordinated Remarketing Fees previously earned by the General Partner shall be paid by the Partnership, without any interest, before any other distributions are made by the Partnership to the Partners.
9.4(i). Re-Leasing Fee
. For services rendered, the Partnership shall pay the applicable Re-Leasing Fee to the General Partner in connection with the re-lease of Equipment; provided that the following conditions are met:
(i)
the General Partner has maintained adequate staff to provide re-leasing services;
(ii)
the fee shall be paid as each rental payment is made over the term of the Lease;
(iii)
no fee shall be paid or reimbursed where the Equipment is re-leased to the previous lessee or its Affiliates;
(iv)
the General Partner or its Affiliates shall have rendered substantial re-leasing services in connection with the re-lease; and
(v)
the General Partner or its Affiliates have been paid Management Fees that month for rendering management services.
9.4(j). Partnership Expenses
.
(i)
Except as otherwise provided in this Section 9.4(j), Partnership expenses other than those reimbursed in accordance with subsections (b) through (i) of this Section 9.4 shall be billed directly to and paid by the Partnership.
(ii)
Subject to clause (iv), the General Partner and its Affiliates may be reimbursed for the actual cost of goods, materials and services used for or by the Partnership and obtained by it or them from non-Affiliates of the General Partner.
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(iii)
Subject to clause (iv), the General Partner and its Affiliates may be reimbursed for the administrative services reasonably necessary, convenient or advisable, in the sole discretion of the General Partner, to the prudent operation of the Partnership (including, without limitation, legal, accounting, remarketing and agency expenses) provided that such reimbursement shall not exceed the lesser of:
(A)
its or their actual cost; or
(B)
the amount the Partnership would be required to pay to non-Affiliates for comparable administrative services in the same geographic location; and
provided, further, that there shall be no reimbursement for such services if the General Partner or its Affiliates are entitled to compensation in the form of a separate fee pursuant to other provisions of this Section 9.4.
(iv)
The General Partner and its Affiliates shall not be reimbursed by the Partnership for amounts expended by them with respect to the following:
(A)
salaries, fringe benefits, travel expenses or other administrative items incurred by or allocated to any Controlling Person of the General Partner or its Affiliates; or
(B)
rent, depreciation, utilities, capital equipment or other administrative items.
9.5 Other Interests of the General Partner and its Affiliates
9.5(a). General Partner's Right to Pursue Other Activities.
The General Partner shall be required to devote only such time to the affairs of the Partnership as the General Partner, in its sole discretion, determines in good faith to be necessary for the business and operations of the Partnership. The General Partner and its Affiliates may engage in, or possess an interest in, business ventures (other than the Partnership) of every kind and description, independently or with others, including, but not limited to, serving as sponsor or general partner of other Programs and participating in the equipment leasing or financing business, whether or not those business ventures are competitive with the business or Investments of the Partnership; provided, however, that the General Partner and its Affiliates may not offer for sale interests in another Program before the Termination Date
of the Offering unless the other Programs have investment objectives that are different from the Partnership's or the other Programs are Specified Equipment Programs. The Partnership and the Limited Partners shall have no rights in or to the General Partner's and its Affiliates' independent ventures or the related income or profits resulting from them.
The General Partner and its Affiliates shall not be obligated to present any particular investment opportunity to the Partnership. The General Partner and its Affiliates shall have the right to invest in equipment, portfolios of equipment subject to existing equipment leases, equipment financing and in leasing and re-leasing opportunities, on its or their own behalf or on behalf of other Programs. The General Partner and its Affiliate shall have the right, subject only to the provisions of the immediately succeeding paragraph, to take for their own account (individually or otherwise), or to recommend to any Affiliated Program, any particular investment opportunity.
9.5(b). Resolving Conflicts.
Any conflicts in determining and allocating Investments between the General Partner and its Affiliated Programs, on the one hand, and the Partnership, on the other hand, will be resolved by the General Partner's Investment Committee, which will evaluate the suitability of all prospective Investments. If the Investments available from time to time to the Partnership and to other Affiliated Programs is less than the aggregate amount of the Investments then sought by them, the available Investment shall be allocated by the General Partner to an Affiliated Program (including the Partnership) after taking into consideration at least the following factors:
(i)
which Affiliated Program has been seeking Investments or reinvesting Cash Flow from its Investments for the longest period of time;
(ii)
whether the Affiliated Program has the cash required for the Investment;
(iii)
whether the amount of debt to be incurred with respect to the Investment is acceptable for the Affiliated Program;
(iv)
the effect the Investment would have on the Affiliated Program's cash flow;
(v)
whether the Investment would further diversify, or unduly concentrate, the Affiliated Program's Investments in a particular lessee, class or type of equipment, location, industry, etc.; and
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(vi)
whether the term of the Investment is within the term of the Affiliated Program.
In the event of a conflict between two or more Affiliated Programs (including the Partnership) that are seeking to re-lease or sell similar equipment contemporaneously (except to the extent that the re-lease or sale is to the lessee, or an Affiliate of the lessee, from the Affiliated Program), the first opportunity to re-lease or sell equipment generally shall be allocated to the Affiliated Program (including the Partnership) attempting to re-lease or sell equipment that was subject to the lease that expired first or, if two or more leases expired simultaneously, the lease that was the first to take effect; provided, however, that the General Partner may, in its sole discretion, provide opportunities to re-lease or sell equipment otherwise if the equipment is subject to remarketing commitments. Notwithstanding anything to the contrary provided in this Section 9.5, the General Partner may allocate an
opportunity in any other manner it determines, in its sole discretion if there are other circumstances, in the General Partner's judgment, under which withholding the opportunity from an Affiliated Program would be inequitable or not economically feasible for that particular Affiliated Program (including the Partnership).
If the financing available from time to time to two or more Affiliated Programs (including the Partnership) is less than the aggregate amount then sought by them, the available financing generally shall be allocated to the Affilliated Program that has been seeking financing for the longest period of time.
ARTICLE X - POWERS AND LIABILITIES OF LIMITED PARTNERS
10.1 Absence of Control Over Partnership Business.
The Limited Partners hereby consent to the exercise by the General Partner of the powers conferred on the General Partner by this Agreement. No Limited Partner shall have any of the following rights:
(i)
the right to participate in or have any control over the Partnership's business;
(ii)
the right or authority to act for, or to bind or otherwise obligate, the Partnership (except if the Limited Partner also is a General Partner, and then only in its capacity as a General Partner);
(iii)
the right to have the Partnership dissolved and liquidated, except as provided in Section 16.2(b) through the Consent or vote of the Majority Interest of the Limited Partners; or
(iv)
the right to have all or any part of the Limited Partner's Capital Contribution or Capital Account returned, except as provided in this Agreement.
10.2 Limited Liability.
The liability of each Limited Partner, in his capacity as a Limited Partner, shall be limited to the amount of the Limited Partner's Capital Contribution and pro rata share of any undistributed Income, Cash Flow and other assets of the Partnership. Except as may otherwise be required by law or by this Agreement, after a Limited Partner pays his entire Capital Contribution to the Partnership as set forth on his Subscription Agreement for the purchase of his Units, the Limited Partner shall not:
(i)
have any further obligations to the Partnership;
(ii)
be subject to any additional Assessment; or
(iii)
be required to make any additional Capital Contribution to, or to loan any funds to, the Partnership.
ARTICLE XI - DISTRIBUTIONS AND ALLOCATIONS
11.1 Distribution of Distributable Cash
11.1(a). Prior to the Admission of Limited Partners
. Prior to the admission to the Partnership of any Limited Partners, distributions of Distributable Cash shall be made 1% to the General Partner and 99% to the Original Limited Partner.
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11.1(b). After Admission to the Partnership
. Beginning with the admission to the Partnership of any Limited Partner on the Initial Closing Date, and continuing during the Reinvestment Period, provided that sufficient Distributable Cash is available, in the General Partner's sole discretion, the General Partner shall distribute Distributable Cash to the Partners in the following order of priority:
(i)
first, 1% to the General Partner and 99% to the Limited Partners in an amount that:
(A)
is equal to the Limited Partners' Unpaid Cumulative Return; and
(B)
includes an amount of Distributable Cash resulting from Sales and refinancings of the Partnership's Investments, if any, sufficient for the Limited Partners to pay their federal, state and local income taxes resulting from those Sales, assuming the Limited Partners are in a 30% tax bracket; and
(ii)
thereafter, to investment and reinvestment in Investments or, if the General Partner shall elect not to invest or reinvest such Distributable Cash, 1% to the General Partner and 99% to the Limited Partners.
11.1(c). Reinvestment Period
. During the Liquidation Period, no Distributable Cash shall be reinvested in additional Investments. All Distributable Cash shall be distributed 1% to the General Partner and 99% to the Limited Partners.
11.1(d). Liquidation Period
. Distributions of Distributable Cash shall be made to the Partners monthly. Subject to Section 11.1(b), the amount of each such monthly distribution shall be determined by the General Partner, in its sole discretion, based upon the amount of the Partnership's then available Distributable Cash and other funds of the Partnership and the General Partner's estimate of the Partnership's total Distributable Cash for such Fiscal Year.
11.2 Allocations of Income and Loss
11.2(a). Deductions for Each Fiscal Year
. The Income and Loss of the Partnership shall be determined for each Fiscal Year or Fiscal Period.
11.2(b). Proportionate Part
. Except as otherwise provided in this Agreement, whenever a proportionate part of the Partnership's Income or Loss is allocated to a Partner, every item of income, gain, loss or deduction entering into the computation of such Income or Loss, or arising from the transactions with respect to which such Income or Loss was realized, shall be allocated to such Partner in the same proportion.
11.2(c). Reinvestment Period
. Income for any Fiscal Period during the Reinvestment Period shall be allocated 1% to the General Partner and 99% to the Limited Partners.
11.2(d). Liquidation Period
. Income for any Fiscal Period during the Liquidation Period shall be allocated to the Partners as follows:
(i)
first, to the Partners in proportion to and to the extent of the deficit balances, if any, in their respective Capital Accounts; and
(ii)
thereafter, 1% to the General Partner and 99% to the Limited Partners.
11.2(e). Losses
. Losses for any Fiscal Period shall be allocated to the Partners as follows:
(i)
first, 1% to the General Partner and 99% to the Limited Partners until the Limited Partners have been allocated Losses equal to the excess, if any, of their aggregate Capital Account balances over their aggregate Adjusted Capital Contributions;
(ii)
next, to the Partners in proportion to and to the extent of their respective remaining positive Capital Account balances, if any; and
(iii)
thereafter, 1% to the General Partner and 99% to the Limited Partners;
provided, however, that if and to the extent that an allocation of Losses to any Limited Partner pursuant to this subsection (e) or subsection (f), below, would result in any Limited Partner having an Adjusted Capital Account Deficit, such Losses shall be allocated to all other Partners in accordance with this subsection (e) and, when no Limited Partner can be allocated any such Losses without violating the limitation contained in this proviso, such remaining Losses shall be allocated to the General Partner.
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11.2(f). Special Allocations
. The following special allocations shall, except as otherwise provided, be made prior to allocations in Sections 11.2(a) through (e) in the following order:
(i)
Minimum Gain Charge-Back
. Notwithstanding any other provision of this Article XI, if there is a net decrease in Partnership Minimum Gain or in any Partner Nonrecourse Debt Minimum Gain during any Fiscal Period, before any other allocation under this Article XI each Partner shall be specially allocated items of Partnership Income and gain for such Fiscal Period (and, if necessary, subsequent Fiscal Periods) in an amount and manner required by Treas. Reg. Sections 1.704-2(f) and 1.704-2(i)(4) or any successor provisions. The items to be so allocated shall be determined in accordance with Treas. Reg. Section 1.704-2(j)(2) or any successor provision.
(ii)
Partnership Nonrecourse Deductions
. Partnership Nonrecourse Deductions for any Fiscal Period shall be allocated 99% to the Limited Partners and 1% to the General Partner.
(iii)
Partner Nonrecourse Deductions
. Partner Nonrecourse Deductions for any Fiscal Period shall be allocated to the Partner who made or guaranteed or is otherwise liable with respect to the loan to which such Partner Nonrecourse Deductions are attributable in accordance with the principles of Treas. Reg. Section 1.704-2(i) or any successor provision.
(iv)
Qualified Income Offset
. If in any Fiscal Period, any Partner has an Adjusted Capital Account Deficit, whether resulting from an unexpected adjustment, allocation or distribution described in Treas. Reg. Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) or otherwise, such Partner shall be allocated items of Partnership Income (consisting of a pro rata portion of each item of Partnership Income for such Fiscal Period) sufficient to eliminate such Adjusted Capital Account Deficit as quickly as possible, to the extent required by such Treasury Regulation. It is the intention of the parties that this allocation provision constitute a "qualified income offset" within the meaning of Treas. Reg. Section 1.704-1(b)(2)(ii)(d).
(v)
Curative Allocations
. The special allocations provided for in Section 11.2(e) and in Sections 11.2(f)(i) through (iv) are intended to comply with Treas. Reg. Sections 1.704-1 and 1.704- 2. To the extent that any of those special allocations have been made, subsequent allocations of Income, Loss and items thereof ("curative allocations") shall be made as soon as possible and in a manner so as to cause, to the extent possible without violating the requirements of Treas. Reg. Sections 1.704-1 and 1.704-2, the Partners' Capital Account balances to be as nearly as possible in the same proportions in which they would have been had the special allocations not occurred. In making these curative allocations, due regard shall be given to the character of the Income and Loss and items thereof that were originally allocated under the provisions of
Section 11.2(e) and Sections 11.2(f)(i) through (iv) in order to put the Partners as nearly as possible in the positions in which they would have been had those special allocations not occurred.
11.2(g). Misallocated Items
. If the General Partner determines, after consultation with Counsel, that the allocation of any item of Income or Loss is not specified in this Article XI (an "unallocated item"), or that the allocation of any item of Income or Loss under this Article XI is clearly inconsistent with the Partners' economic interests in the Partnership determined by reference to this Agreement, the general principles of Treas. Reg. Section 1.704-1(b) and the factors set forth in Treas. Reg. Section 1.704-1(b)(3)(ii) (a "misallocated item"), then the General Partner may allocate the unallocated items, and reallocate the misallocated items, to reflect the Partners' economic interests in the Partnership.
11.2(h). Special Allocation of State, Local and Foreign Taxes
. Any state, local or foreign taxes imposed on the Partnership by reason of a Partner being a citizen, resident or national of a state, locality or foreign jurisdiction, including any item(s) of Income or Loss resulting therefrom, shall be specially allocated to that Partner.
11.2(i). Transactions with Partnership
. If the adjusted basis of any property contributed by a Partner to the Partnership exceeds the fair market value of the property at the time of the contribution (the "built-in loss"), then, except as provided otherwise by Treasury Regulations, the built-in loss shall be taken into account only in determining the amount of the tax items allocated to the contributing Partner. In determining the amount of tax items allocated to the other Partners, the basis of the contributed property shall be treated as being equal to its fair market value at the time of the contribution. Subject to the foregoing, if, and to the extent that, any Partner is deemed to recognize any item of Income or Loss as a result of any transaction between such Partner and the Partnership pursuant to Code Sections 482, 483, 1272-1274, 7872 or any similar provision of
the Code now or hereafter in effect, any corresponding Income or Loss or items thereof shall be allocated to the Partner who was charged with such item.
11.2(j). Fees and Commissions Paid to General Partner
. It is the intent of the Partnership that any amount paid or deemed paid to the General Partner as a fee or other payment described in Section 9.4 shall be treated as a "guaranteed payment" or a payment to a partner not acting in his capacity as a partner pursuant to Section 707(c) of the Code to the extent possible. If any such fee or payment is deemed to be a distribution to the General Partner, and not a guaranteed payment or a payment to a partner not acting in his capacity as a partner, the General Partner shall be allocated an amount of Partnership gross ordinary income equal to such payment.
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11.2(k). Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses, Acquisition Fees and Organization and Offering Expense Allowance
. Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses, Acquisition Fees and the Organization and Offering Expense Allowance shall be allocated 100% to the Limited Partners. Organization and Offering Expenses in excess of Sales Commissions, Dealer-Manager Fees, Due Diligence Expenses and the Organization and Offering Expense Allowance shall be allocated 100% to the General Partner.
11.2(l). Tax-Exempt Entities.
Notwithstanding any other provision of this Agreement, if it is determined that the tax-exempt use property rules of Section 168(h)(6) of the Code or the tax-exempt use loss rules of Section 470 of the Code apply to the Partnership, because one or more of the Partnership's Limited Partners are tax-exempt entities (including non-U.S. persons as defined by the Code) so that a portion of the Partnership's depreciation or cost recovery deductions or losses are reduced, suspended or otherwise adversely affected, the resulting depreciation adjustments and tax-exempt use losses shall be specially allocated 100% to the Limited Partners that are tax-exempt entities (including non-U.S. persons as defined by the Code) to be shared among them in proportion to their respective number of Units unless provided otherwise by this Agreement or the Code.
11.3 Distributions and Allocations Among the Limited Partners
11.3(a). In General.
Except to the extent otherwise provided in this Agreement, all distributions of Distributable Cash and all allocations of Income and Loss and items thereof for any Fiscal Year or Fiscal Period shall be distributed or allocated, as the case may be, among the Limited Partners in proportion to their respective numbers of Units. Each distribution of Distributable Cash shall be made to the Limited Partners (or their respective assignees) of record as of the last day of the month next preceding the date on which the distribution is made.
11.3(b). Initial Year of Admission
. All distributions of Distributable Cash and all allocations of Income and Loss or items thereof for any Fiscal Year in which any Limited Partners are admitted to the Partnership shall be allocated among the Limited Partners as follows:
(i)
first, the Operations and Sales of the Partnership shall be deemed to have occurred ratably over such Fiscal Year, irrespective of the actual results of Operations or Sales of the Partnership;
(ii)
second, all Income and Loss for such Fiscal Year shall be allocated among the Limited Partners in the ratio that the number of Units held by each Limited Partner multiplied by the number of days in such Fiscal Year that such Units were held by such Limited Partner bears to the sum of that calculation for all Limited Partners; and
(iii)
third, all monthly distributions of cash made to the Limited Partners under Section 11.1 shall be distributed among the Limited Partners in the ratio that the number of Units held by each Limited Partner multiplied by the number of days in the month preceding the month in which the distribution is made that the Units were held by the Limited Partner bears to the sum of that calculation for all Limited Partners. If the General Partner determines at any time that the sum of the monthly distributions made to any Limited Partner during or with respect to a Fiscal Year does not (or will not) properly reflect the Limited Partner's share of the total distributions made or to be made by the Partnership for the Fiscal Year, the General Partner shall, as soon as practicable, make a supplemental distribution to the Limited Partner, or withhold from a subsequent distribution that otherwise
would be payable to the Limited Partner, such amount as shall cause the total distributions to the Limited Partner for the Fiscal Year to be the proper amount.
11.3(c). Transfer
. In the event of a transfer of a Unit during a Fiscal Year in accordance with Article XIII, the transferor and transferee shall be allocated a ratable share of Income and Losses for the Fiscal Year based on the number of days in the Fiscal Year that each held the transferred Unit.
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11.3(d). Before Admission
. Each distribution made to a Limited Partner under Sections 11.1, 11.5 or 14.3, and any interest earned on a Limited Partner's subscription funds while held in an Escrow Account or Subscription Account before the admission of the Limited Partner to the Partnership and subsequently paid to the Limited Partner under Section 8.11, shall be applied as follows:
(i)
first, in reduction of the Limited Partner's Unpaid Cumulative Return, to the extent thereof, as determined immediately before the distribution; and
(ii)
thereafter, in reduction of the Limited Partner's Adjusted Capital Contribution, as determined immediately before the distribution.
11.4 Tax Allocations: Code Section 704(c); Revaluations.
11.4(a). Contribution of Property
. In accordance with Section 704(c) of the Code and the Treasury Regulations thereunder, Income, Loss and items thereof with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its initial Gross Asset Value.
11.4(b). Adjustments
. In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to clause (ii) of Section 1.1(47) and Section 8.14, subsequent allocations of Income, Loss, and items thereof with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in a manner consistent with the requirements of Proposed Treas. Reg. Section 1.704-3(a)(6) or the corresponding provision of any final or successor Treasury Regulations.
11.4(c). Elections
. Any elections or other decisions relating to the allocations required by subsections (a) and (b), above, shall be made in a manner that reasonably reflects the purpose and intention of this Agreement. Allocations under this subsection (c) are solely for purposes of federal, state, and local taxes and shall not affect, or in any way be taken into account in computing, any Partner's Capital Account or share of Income or Losses under any provision of this Agreement.
11.5 Return of Uninvested Capital Contribution.
If 100% of the Partnership's Net Offering Proceeds has not been used to make Investments, committed to Reserves (to the extent Reserves have been established and maintained for the acquisition of Investments) or used to pay permitted Front-End Fees within 24 months from the date of the Prospectus, the amount of such uninvested Net Offering Proceeds shall be promptly distributed by the Partnership to the Limited Partners, pro rata based upon their respective number of Units, as a return of capital, without interest. Funds shall be deemed to have been committed to investment and need not be returned to the Limited Partners to the extent written agreements in principle, commitment letters, letters of intent or understanding, option agreements or any similar contracts are executed and not terminated during the applicable 24-month
period described above, if such investments are ultimately consummated within a further period of 12 months. Funds deemed committed which are not actually so invested within such 12 month period will be promptly distributed, without interest, to the Limited Partners on a pro rata basis, as a return of capital, except that Investments using funds from Ohio investors must be completed within a three-month period or such funds must be returned.
11.6 No Distributions in Kind.
Distributions in kind shall not be permitted except upon dissolution and liquidation of the Partnership's assets and then only to a liquidating trust established for the purpose of liquidating the assets transferred to it and distributing the net cash proceeds of such liquidation in cash to the Partners in accordance with the provisions of this Agreement.
11.7 Partnership Entitled to Withhold.
The Partnership shall at all times be entitled to withhold or make payments to any governmental authority with respect to any federal, state, local or foreign tax liability of any Partner or former Partner arising as a result of such Partner's participation in the Partnership. Each such amount so withheld or paid shall be deemed to be a distribution for purposes of Article XI and Article XIV, as the case may be, to the extent such Partner is then entitled to a distribution. To the extent that the amount of such withholdings or payments made with respect to any Partner exceeds the amount to which such Partner is then entitled as a distribution, the excess shall be treated as a demand loan, bearing interest at a rate equal to 12% per annum simple interest from the date of such payment or withholding until such excess is repaid to the
Partnership either by deduction from any distributions subsequently payable to such Partner under this Agreement or earlier payment of such excess and interest by such Partner to the Partnership.
The excess withholdings or payments, together with interest thereon, shall, in any case, be payable not less than 30 days after demand therefor by the General Partner. However, the General Partner shall demand payment only if it determines that the Partner is not likely to be entitled to distributions within 12 months from the date of such withholding or payment by the Partnership in an amount sufficient to pay such excess and interest. If the payments referred to in this Section 11.7 are made on behalf of a Person who cannot be identified or located, the General Partner shall treat the payments as a distribution of Distributable Cash made 1% to the General Partner and 99% to the Limited Partners, provided that this deemed distribution shall not reduce the Limited Partners' Unpaid Cumulative Return or Adjusted Capital Contribution under Section 11.3(d). Also, the withholdings and payments referred to in
this Section 11.7 shall be made at the maximum applicable statutory rate under the applicable tax law unless the General Partner has received an opinion of Counsel, at the Partner's expense, or other evidence, satisfactory to the General Partner, to the effect that a lower rate is applicable or that no withholding or tax payment is required.
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ARTICLE XII - WITHDRAWAL OF GENERAL PARTNER
12.1 Voluntary Withdrawal.
The General Partner may not voluntarily withdraw as a General Partner from the Partnership unless:
(i)
the Limited Partners have received 60 days' advance written notice of the General Partner's intention to withdraw;
(ii)
the Partnership has received an opinion of Counsel to the Partnership to the effect that the withdrawal will not constitute a termination of the Partnership or otherwise materially adversely affect the status of the Partnership for federal income tax purposes; and
(iii)
a Substitute General Partner has been selected, and the Substitute General Partner has:
(A)
consented to its admission as General Partner;
(B)
received the written Consent of a Majority Interest to its admission as General Partner; and
(C)
a Net Worth sufficient, in the opinion of Counsel to the Partnership, for the Partnership to continue to be classified as a partnership for federal income tax purposes and to satisfy the Net Worth requirements for "sponsors" under applicable laws, rules, regulations and policies of Administrators.
12.2 Involuntary Withdrawal.
The General Partner shall be deemed to have involuntarily withdrawn as a General Partner from the Partnership upon the removal of the General Partner pursuant to the Consent of the Majority Interest or upon the occurrence of any other event that constitutes an event of withdrawal under the Delaware Act as then in effect. For purposes of this Section 12.2 and Article XVI, neither the General Partner nor any Affiliate of the General Partner may participate in any vote by the Limited Partners to involuntarily remove the General Partner.
12.3 Consequences of Withdrawal
12.3(a). Upon Withdrawal
. Upon withdrawal of the General Partner as such from the Partnership:
(i)
the Partnership shall pay to the withdrawn General Partner the fair market value of the Partnership Interest then held by the General Partner, calculated in the manner set forth in subsection (b), below, and payable as set forth in subsection (c), below; and
(ii)
an amount equal to the difference between any Management Fees and other fees accrued but not yet paid to the General Partner, plus all other amounts due and owing to the General Partner by the Partnership, minus any amounts due and owing by the General Partner to the Partnership, which shall be payable in cash within 30 days of the date of withdrawal, by the debtor party to the creditor party.
12.3(b). Determination of Fair Market Value
. For purposes of this Section 12.3, the fair market value of the withdrawn General Partner's Partnership Interest shall be determined, in good faith, by the withdrawn General Partner and the Partnership, or, if they cannot agree, by arbitration in accordance with the then current rules of the American Arbitration Association. The expense of arbitration shall be borne equally by the withdrawn General Partner and the Partnership.
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12.3(c). Method of Payment
. The method of payment to the General Partner upon withdrawal, whether voluntary or involuntary, must be fair and must protect the solvency and liquidity of the Partnership. When the withdrawal is voluntary, the method of payment will be presumed to be fair if it provides for a non-interest-bearing, unsecured promissory note of the Partnership, with principal payable, if at all, from distributions that the withdrawn General Partner otherwise would have received under the Partnership Agreement had the General Partner not withdrawn. When the withdrawal is involuntary, unless otherwise agreed by the withdrawn General Partner and the Partnership, the method of payment shall be a promissory note providing for repayments of principal thereunder in 60 equal monthly installments, together with accrued but unpaid interest, bearing interest on the outstanding
principal amount thereof at the lesser of:
(i)
the rate of interest (inclusive of any points or other loan charges) which the Partnership would be required to pay to an unrelated bank or commercial lending institution for an unsecured, 60 month loan of like amount; or
(ii)
the "Prime Rate" of interest published in the Money Rates section of the Wall Street Journal, plus 4%.
12.4 Liability of Withdrawn General Partner.
If the business of the Partnership is continued after withdrawal of the General Partner, the General Partner, or its estate, successors or legal representatives, shall remain liable for all obligations and liabilities incurred by it or by the Partnership while it was acting in the capacity of General Partner and for which it was liable as General Partner, but they shall be free of any obligation or liability incurred on account of or arising from the activities of the Partnership from and after the time such withdrawal became effective.
12.5 Notice of Withdrawal; Admission of Substitute General Partner; Dissolution if No Substitute General Partner Approved.
If the General Partner voluntarily withdraws from the Partnership, the General Partner, or its estate, successors or legal representatives, shall deliver to the Limited Partners a Notice that includes the effective date of its withdrawal. Within 90 days following a voluntary or involuntary withdrawal, a Majority Interest shall agree in writing to continue the business of the Partnership and to the appointment, effective as of the date of the withdrawn General Partner's withdrawal, of a Substitute General Partner. Such Substitute General Partner shall execute a counterpart of this Agreement. If such action is not taken within 90 days following the date of the General Partner's withdrawal, then the Partnership shall dissolve.
ARTICLE XIII - TRANSFER OF UNITS
13.1 Withdrawal of a Limited Partner.
A Limited Partner may withdraw from the Partnership only by Assigning or Redeeming all Units owned by the Limited Partner in accordance with this Article XIII. The withdrawal of a Limited Partner shall not dissolve or terminate the Partnership. If a Limited Partner withdraws because of death, legal incompetence, dissolution or other termination, the estate, legal representative or successor of the Limited Partner shall be deemed to be the Assignee of the Limited Partner's Units and may become a Substitute Limited Partner on compliance with the provisions of Section 13.3.
13.2 Assignment
13.2(a). Assignment by a Limited Partner
. Subject to the provisions of subsections (b) and (c), below, and Section 13.3, any Limited Partner may Assign all or any portion of his Units to an Assignee if:
(i)
the Limited Partner and the Assignee each execute a written Assignment, which:
(A)
sets forth the terms of the Assignment;
(B)
in the case of Assignments other than by operation of law, states the intention of the Limited Partner that the Assignee shall become a Substitute Limited Partner and, in all cases, evidences the acceptance by the Assignee of all of the terms and provisions of this Agreement; and
(C)
includes a representation by both the Limited Partner and the Assignee that the Assignment was made in accordance with all applicable laws and regulations (including, without limitation, the minimum investment and investor suitability requirements as may then be applicable under state securities laws); and
(ii)
the Assignee pays to the Partnership an aggregate amount, not exceeding $150, for expenses reasonably incurred by the Partnership in connection with the Assignment.
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13.2(b). General Partner Must Consent to the Withdrawal
. Notwithstanding the foregoing, unless the General Partner specifically Consents, no Units may be Assigned:
(i)
to a minor or incompetent (unless a guardian, custodian or conservator has been appointed to handle the affairs of that Person);
(ii)
to any Person if, in the opinion of Counsel, the Assignment would result in the termination of the Partnership's taxable year or its status as a partnership for federal income tax purposes, provided that the Partnership may permit the Assignment to become effective if and when, in the opinion of Counsel, the Assignment would no longer result in the termination of the Partnership's taxable year or its status as a partnership for federal income tax purposes;
(iii)
to any Person if the Assignment would affect the Partnership's existence or qualification as a limited partnership under the Delaware Act or the applicable laws of any other jurisdiction in which the Partnership is then conducting business;
(iv)
to any Person not permitted to be an Assignee under applicable law, including, without limitation, applicable federal and state securities laws;
(v)
if the Assignment would result in the transfer of less than 50 Units (unless the Assignment is all the Units owned by the Limited Partner);
(vi)
if the Assignment would result in the retention by the Limited Partner of a portion of his Units representing less than 50 Units;
(vii)
if, in the reasonable belief of the General Partner, the Assignment might violate applicable law; or
(viii)
if the effect of the Assignment would be to cause the "equity participation" in the Partnership by "benefit plan investors" (within the meaning of Department of Labor Reg. Section 2510.3-101(f)) and possibly other tax-exempt investors (as determined by the General Partner after consultation with Counsel) to equal or exceed 25% of the Partnership's total outstanding Units.
Any attempt to make any Assignment of Units in violation of this Section 13.2(b) shall be without force or effect.
13.2(c). Publicly Traded Partnership Prohibition
. So long as there are adverse federal income tax consequences from being treated as a "publicly traded partnership" for federal income tax purposes, the General Partner shall not permit any interest in a Unit to be Assigned (including Redemptions of Units under Section 13.5) on a "Secondary Market." For purposes of this Section 13.2(c), any Assignment which fails to meet one or more of the secondary market "safe-harbor" provisions of Treas. Reg. Section 1.7704-1 or any substitute safe-harbor provisions that subsequently may be established by Treasury Regulations or published notices, shall be treated as an Assignment on a Secondary Market under this Section 13.2(c).
If the General Partner determines, in its sole discretion, that an Assignment was or will be effected on a Secondary Market, the Partnership and the General Partner shall not recognize the Assignment and shall not admit the transferee as a Substitute Limited Partner, nor recognize any rights of the transferee in the Partnership, such as the right to receive distributions of Distributable Cash or any interest in Partnership capital or profits. Each Limited Partner agrees to provide to the General Partner all information with regard to any Assignment by the Limited Partner, whether proposed or purportedly completed, which the General Partner deems necessary in order to determine whether the Assignment by the Limited Partner occurred or will occur on a Secondary Market.
13.2(d). Effectiveness of Assignment
. Assignments made in accordance with this Section 13.2 shall be considered effective on the last day of the month on which all of the conditions of this Section 13.2 have been satisfied. Distributions to the Assignee shall begin the month following effectiveness of the Assignment.
13.3 Substitution
13.3(a). Condition on Substitution
. An Assignee of a Limited Partner shall be admitted to the Partnership as a Substitute Limited Partner only if:
(i)
the General Partner has reasonably determined that all of the conditions specified in Section 13.2 have been satisfied and that no adverse effect to the Partnership will result from the admission; and
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(ii)
the Assignee has executed a transfer agreement and the other forms, including a power of attorney to the effect required by Article XVIII, as the General Partner reasonably may require to determine compliance with this Article XIII.
13.3(b). Effect of Assignment Without Substitution
. An Assignee of Units who does not become a Substitute Limited Partner in accordance with this Section 13.3 and who desires to make a further Assignment of his Units shall be subject to all of the provisions of Sections 13.2, 13.3 and 13.4 to the same extent and in the same manner as a Limited Partner desiring to make an Assignment of his Units. Failure or refusal of the General Partner to admit an Assignee as a Substitute Limited Partner, if the Assignment otherwise complies with Section 13.2, and subsection (c) thereof in particular, shall not affect the right of the Assignee to receive Distributable Cash and the share of Income or Losses to which his predecessor in interest would have been entitled in accordance with Article XI and Article XIV.
13.3(c). Amendment of Records
. The Partnership shall amend its records at least once each calendar quarter to effect the substitution of Substitute Limited Partners.
13.4 Status of an Assigning Limited Partner.
If a Limited Partner Assigns all of his Units to an Assignee who becomes a Substitute Limited Partner, the assignor Limited Partner shall cease to be a Limited Partner in the Partnership and shall no longer have any of the rights or privileges of a Limited Partner.
13.5 Limited Right of Presentment for Redemption of Units
13.5(a). Limited Right to Redeem Units.
Subject to the limitations set forth below, beginning with the admission of a Limited Partner to the Partnership, each Limited Partner (other than the General Partner or its Affiliates if they own Units) may request that the Partnership Redeem, for cash, up to 100% of the Limited Partner's Units. This right of presentment shall be subject to the limitations set forth below.
(i)
The Partnership shall be under no obligation to Redeem any Units of any Limited Partner and shall do so only with the prior Consent of the General Partner, which is in the sole discretion of the General Partner. In this regard, the General Partner may take into consideration the time of year during which a Redemption request is made, and the effect making a Redemption would have on the Partnership's compliance with the 2% limitation described in clause (ii), below.
(ii)
The Partnership shall not, in any calendar year, Redeem Units that, in the aggregate along with all Units otherwise transferred in that calendar year, would exceed 2% of the total Units outstanding as of the last day of that year.
(iii)
No Reserves shall be established by the Partnership for the Redemption of Units. The availability of funds for the Redemption of any Unit shall be subject to the availability of sufficient Cash Flow. Furthermore, Units may be Redeemed only if the Redemption would not impair the capital or the Operations of the Partnership and would not result in the termination under the Code of the Partnership's taxable year or its federal income tax status as a partnership, all as determined in the sole discretion of the General Partner.
13.5(b). Applicable Redemption Price.
The Redemption price for a Limited Partner's Units (the "Applicable Redemption Price") will depend on when the Limited Partner presents his Units for Redemption and shall be determined as set forth below. If a Limited Partner presents his Units for Redemption:
(i)
during the Offering Period, the Redemption price for one Unit will equal the net asset value for one Unit at the time the Redemption request is received, as that value is determined by the General Partner in its sole discretion;
(ii)
during the Reinvestment Period, but after the Offering Period of the Offering, the Redemption price for one Unit will equal 100% of the Limited Partner's Adjusted Capital Contribution for one Unit, plus 4% for each full twelve-month period since the Limited Partner was admitted as a Limited Partner, less the sum of:
(A)
100% of previous distributions made to the Limited Partner on account of one Unit; and
(B)
100% of any previous allocations to the Limited Partner of investment tax credit amounts, if any, for one Unit; or
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(iii)
during the Liquidation Period, the Redemption price for one Unit will equal the equity for one Unit as set forth on the Partnership's balance sheet in its most recent Form 10-Q filed before the Redemption request, less 100% of any distributions made to the Limited Partner on account of one Unit since the date of the balance sheet.
13.5(c). Procedure for Presentment.
A Limited Partner desiring to have a portion or all of his Units Redeemed shall submit a written request to the General Partner on a form approved by the General Partner and duly signed by all owners on the books of the Partnership of the Units to be Redeemed. Redemption requests shall be deemed given on the earlier of the date they are:
(i)
personally delivered with receipt acknowledged; or
(ii)
mailed by certified mail, return receipt requested, postage prepaid, at the General Partner's address set forth in this Agreement.
Requests arising from death, major medical expense and family emergency related to disability or a material loss of family income, collectively "Hardship Redemptions," shall be treated as having been received at 12:01 A.M. EST on the day of receipt and all other Redemption requests shall be deemed received with the start of the business day during which received.
13.5(d). Priority of Redemption Requests.
If the General Partner receives requests for the Partnership to redeem more Units than there are funds sufficient to redeem, the General Partner shall use its reasonable efforts to honor requests for Redemptions of Units with the same request date first as to Hardship Redemptions, second so as to provide liquidity for IRAs or Qualified Plans to meet required distributions and finally as to all other Redemption requests.
13.5(e). Notice and Closing of Redemption of Units.
Within 30 days following the date on which the General Partner receives a written request from any Limited Partner to Redeem the Limited Partner's Units, the General Partner shall deliver a written notice to the Limited Partner (the "Notice"):
(i)
stating the number, if any, of the Units to be Redeemed; and
(ii)
if appropriate:
(A)
stating the date of the Redemption of the Units, which shall be a date within 30 days following the date of the Notice;
(B)
stating the Applicable Redemption Price with respect to the Units to be Redeemed; and
(C)
advising the Limited Partner that not less than 10 days before the Redemption date stated in the Notice (the "Delivery Date") that the Limited Partner must duly execute and deliver to the Partnership all transfer instruments and other documents requested by the Partnership to evidence the Redemption of the Units. In the General Partner's discretion, these transfer instruments and documents may be prepared by the Partnership and enclosed with the Notice.
On or before the Redemption date stated in the Notice, the Partnership shall pay the Applicable Redemption Price to the Limited Partner for each Unit Redeemed if:
(i)
all of the Limited Partner's transfer instruments and other documents requested by the Partnership are duly executed and returned to the Partnership no later than the Delivery Date stated in the Notice; and
(ii)
the transfer instruments and other documents are in good order and acceptable to the General Partner, in its sole discretion.
13.5(f). Effect of Redemption.
If all of the Units owned by a Limited Partner are Redeemed by the Partnership, then the Limited Partner shall cease to be a Limited Partner in the Partnership and shall no longer have any of the rights or privileges of a Limited Partner in the Partnership.
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ARTICLE XIV - DISSOLUTION AND WINDING-UP
14.1 Events Causing Dissolution.
The Partnership shall be dissolved on the happening of any of the following events (each a "Dissolution Event"):
14.1(a). Withdrawal of General Partner
. The withdrawal of the General Partner, whether voluntarily or involuntarily, unless a Substitute General Partner has been admitted to the Partnership in accordance with Section 12.5.
14.1(b). Voluntary Dissolution
. The voluntary dissolution of the Partnership either by:
(i)
the General Partner with the Consent of the Majority Interest; or
(ii)
the Consent of a Majority Interest without action by the General Partner.
14.1(c). Sale of All Assets
. The Sale of all or substantially all of the assets of the Partnership not constituting a Financing Transaction, but only with the vote or Consent of the Majority Interest.
14.1(d). Expiration of Term
. The expiration of the Partnership's term as set forth in Section 7.1.
14.1(e). Dissolution Under Delaware Act
. Any other event that causes the dissolution or winding-up of the Partnership under the Delaware Act.
14.2 Winding Up of the Partnership; Capital Contribution by the General Partner Upon Dissolution
14.2(a). Effectiveness of Dissolution
. Dissolution of the Partnership shall be effective on the day on which the Dissolution Event occurs, but the Partnership shall not terminate until a certificate of termination has been filed in accordance with the Delaware Act and the assets of the Partnership have been distributed as provided in Section 14.3. Notwithstanding the dissolution of the Partnership as provided above, its business and the affairs of the Partners, as such, shall continue to be governed by this Agreement until the Partnership is terminated.
14.2(b). Liquidation
. On dissolution of the Partnership, the General Partner (or any other Person effecting the winding-up) shall liquidate the assets of the Partnership and apply and distribute the proceeds as set forth in Section 14.3. Notwithstanding anything to the contrary contained in this Article XIV, if the General Partner (or any other Person effecting the winding-up) determines that an immediate sale of part or all of the Partnership assets would cause undue loss to the Partners, the General Partner (or any other Person effecting the winding-up), in order to avoid such loss, may, after having notified all of the Limited Partners, to the extent not then prohibited by law, defer liquidation of, and withhold from distribution for a reasonable time, any assets of the Partnership except those necessary to satisfy the Partnership's debts and obligations.
14.2(c). Procedures on Liquidation
. In connection with the dissolution of the Partnership:
(i)
all Income or Losses or items thereof, and all amounts required to be specially allocated for the period before final termination, shall be credited or charged, as the case may be, to the Partners in accordance with Article XI;
(ii)
if after all requirements of clause (i) of this subsection (c) have been accomplished, the General Partner has a deficit balance in its Capital Account, then within 30 days the General Partner shall contribute the amount of the deficit balance to the Partnership as a Capital Contribution.
For this purpose, any payments made by the General Partner as co-signatory or guarantor of any Indebtedness of the Partnership that has not yet been reimbursed to the General Partner by the Partnership at the time of dissolution of the Partnership, and any amounts due and unpaid to the General Partner with respect to any Partnership Loans at the time of dissolution, shall be deemed to be Capital Contributions by the General Partner to the Partnership and any obligation of the Partnership to reimburse or repay those amounts to the General Partner shall then cease;
(iii)
the proceeds from Sales and all other assets of the Partnership shall be applied and distributed in liquidation of the Partnership as provided in Section 14.3; and
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(iv)
the General Partner (or any other Person effecting the winding-up) shall file all certificates and other documents as may be required by the Delaware Act, the Code and any other applicable laws to terminate the Partnership.
14.2(d). Fees for Winding-Up
. Whether the winding-up of the Partnership is effected by the General Partner or any other Person (whether selected by the Majority Interest or as required by law), either the General Partner or the other Person, as the case may be, shall be compensated for its services in connection therewith in an amount not in excess of the amount customarily paid to non-affiliated third-parties rendering similar services in respect of similar entities in the same geographic location.
14.3 Application of Liquidation Proceeds Upon Dissolution.
Following the occurrence of any Dissolution Event, the proceeds of liquidation Sales and the other assets of the Partnership shall be applied as follows and in the following order of priority:
(i)
first, to the payment of creditors of the Partnership in order of priority as provided by law, except obligations to Partners or their Affiliates;
(ii)
next, to setting up any Reserve that the General Partner (or any other Person effecting the winding-up) determines is reasonably necessary for any contingent or unforeseen liability or obligation of the Partnership or the General Partner; the Reserve may, in the sole discretion of the General Partner (or the other Person effecting the winding-up) be deposited with an escrow agent selected by it to be held in escrow for the purpose of disbursing the Reserve in payment of any of the aforementioned contingencies, and at the expiration of such period as the General Partner (or the other Person effecting the winding-up) deems advisable, to distribute the remaining balance as provided in subsections (c) through (f), below;
(iii)
next, to the payment of all obligations to the Partners in proportion to, and to the extent of, advances made by them to the Partnership under the provisions of this Agreement;
(iv)
next, to the payment of all reimbursements to which the General Partner and its Affiliates may be entitled under this Agreement;
(v)
next, to the Partners in proportion to and to, the extent of, the positive balances of their Capital Accounts; and
(vi)
thereafter, 1% to the General Partner and 99% to the Limited Partners.
14.4 No Recourse Against Other Partners.
Each Limited Partner shall look solely to the assets of the Partnership for the return of, and any return on, the Limited Partner's Capital Contribution (whether before or after a Dissolution Event). If, after the complete payment and discharge of all debts, liabilities and other obligations of the Partnership, the assets of the Partnership are insufficient to provide the return of, or a return on, the Capital Contribution of any Limited Partner, the Limited Partner shall have no recourse against any other Limited Partner, the Partnership or the General Partner, except to the extent that the General Partner is obligated to make an additional Capital Contribution to the Partnership under Section 14.2.
ARTICLE XV - FISCAL MATTERS
15.1 Title to Property and Bank Accounts.
Unless trustees, nominees or other agents are used as permitted under this Agreement, all Investments and other assets of the Partnership shall be held in the name of the Partnership. The funds of the Partnership shall be deposited in the name of the Partnership in any bank account or accounts as are designated by the General Partner, and withdrawals therefrom shall be made on the signature of the General Partner or any Person or Persons as are designated in writing by the General Partner. The funds of the Partnership shall not be commingled with the funds of any other Person.
15.2 Maintenance of and Access to Basic Partnership Documents
15.2(a). Maintenance of Documents
. The General Partner shall maintain at the General Partner's principal office, on behalf of the Partnership, the following documents:
(i)
the Participant List;
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(ii)
a copy of the certificate of limited partnership and all amendments thereto, together with executed copies of any powers of attorney under which the certificate or any such amendment has been executed;
(iii)
copies of this Agreement and any amendments hereto;
(iv)
copies of the audited financial statements of the Partnership for the three most recently completed Fiscal Years, including, in each case, the balance sheet and related statements of operations, cash flows and changes in Partners' equity at or for such Fiscal Year, together with the report of the Partnership's independent auditors with respect thereto;
(v)
copies of the Partnership's federal, state and local income tax returns and reports, if any, for its three most recently completed Fiscal Years;
(vi)
records as required by applicable tax authorities including those specifically required to be maintained by "reportable transactions," if so required of the Partnership; and
(vii)
investor suitability records for Units sold for a period of six years.
15.2(b). Access to Records
. Each Limited Partner and his designated representative shall be given access to the records specified in Section 15.2(a)(i)-(vi) and any other records of the Partnership that relate to the business affairs and financial condition of the Partnership, and may inspect the same and make copies of the same during normal business hours, subject to the following:
(i)
a reasonable copying charge;
(ii)
providing reasonable advance written notice to the General Partner that states the date and time of the intended visit and identifies with reasonable specificity the documents that the Limited Partner or his representative will wish to examine or copy or both; and
(iii)
in the case of copying the Participant List, compliance with subsection (c), below.
15.2(c). Maintenance of Participant List
. The General Partner shall mail a copy of the Participant List to any Limited Partner or his representative within 10 days of the Partnership's receipt of the Limited Partner's written request therefor together with a check in payment of the reasonable copying charge permitted under subsection (b), above; provided that, in connection with any request for a copy of the Participant List, the Limited Partner shall provide the certification required in the penultimate sentence of subsection (d), below.
15.2(d). General Partner's Refusal to Provide Participant List
. If the General Partner refuses or neglects to:
(i)
permit a Limited Partner or his representative to examine the Participant List at the General Partner's principal office on behalf of the Partnership during normal business hours and with reasonable notice to the General Partner; or
(ii)
mail a copy of the Participant List to the Limited Partner or his representative as required by subsection (c);
the General Partner shall be liable to such Limited Partner who requested the Participant List for the costs, including reasonable attorneys' fees, incurred by such Limited Partner to compel production of the Participant List, and for the actual damages (if any) suffered by such Limited Partner by reason of such refusal or neglect. It shall be a defense that the requesting Limited Partner has failed or refused to provide the General Partner with the certification called for in the next sentence or that the actual purpose and reason for a request for inspection or a copy of the Participant List is to secure the Participant List or other information for the purpose of the sale, reproduction or other use thereof for a commercial purpose other than in the interest of the Limited Partner relative to the affairs of the Partnership. In connection with any such request, the General Partner will require the
Limited Partner requesting the Participant List to certify that the Participant List is not being requested for the purpose of the sale, reproduction or other use thereof for a commercial purpose unrelated to such Limited Partner's interest in the Partnership or for any unlawful purpose. The remedies provided under this Section 15.2(d) to Limited Partners requesting copies of the Participant List are in addition to, and shall not in any way limit, other remedies available to Limited Partners under federal law or the laws of any state.
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15.3 Financial Books and Accounting.
The General Partner shall keep, or cause to be kept, complete and accurate financial books and records with respect to the business and affairs of the Partnership. Except to the extent otherwise required by the accounting methods adopted by the Partnership for federal income tax purposes, such books and records shall be kept on an accrual basis and all financial statements of the Partnership shall be prepared for each Fiscal Year in accordance with generally accepted accounting principles as applied within the United States of America.
15.4 Fiscal Year.
Except as may otherwise be determined from time to time by the General Partner (in a manner which is consistent with the Code and the Treasury Regulations thereunder or as consented to by the IRS), the Fiscal Year of the Partnership for both federal income tax and financial reporting purposes shall end on December 31 of each year.
15.5 Reports
15.5(a). Quarterly Reports
. Within 60 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, the General Partner shall send to each Person who was a Limited Partner at any time during such Fiscal Quarter the following written materials:
(i)
a report containing the same financial information as is contained in the Partnership's quarterly report on Form 10-Q filed with the Commission under the Securities Exchange Act of 1934, as amended;
(ii)
a detailed statement identifying any services rendered or to be rendered to the Partnership by the General Partner or any of its Affiliates and the compensation received therefor and summarizing the terms and conditions of any contract which was not filed as an exhibit to the Registration Statement; provided that the requirement for such statement shall not be circumvented by lump-sum payments to non-Affiliates who then disburse the funds to, or for the benefit of, the General Partner or its Affiliates; and
(iii)
until all Capital Contributions have been invested or committed to investment in Investments and Reserves, used to pay permitted Front-End Fees or returned to the Limited Partners (as provided in Section 11.5), a special report concerning all Investments made during such Fiscal Quarter which shall include:
(A)
a description of the types of Investments made;
(B)
the total Purchase Price paid for each category of Investment;
(C)
the amounts of cash used to acquire such Investments;
(D)
the Acquisition Fees and Acquisition Expenses paid, identified by party, in connection therewith; and
(E)
the amount of Capital Contributions, if any, which remain unexpended and uncommitted to pending Investments as of the end of such Fiscal Quarter.
15.5(b). Annual Reports
. Within 120 days after the end of each Fiscal Year, the General Partner shall send to each Person who was a Limited Partner at any time during such Fiscal Year the following written materials:
(i)
financial statements for the Partnership for such Fiscal Year, including a balance sheet as of the end of such Fiscal Year and related statements of operations, cash flows and changes in Partners' equity, which shall be prepared in accordance with Section 15.3 and shall be accompanied by an auditor's report containing an opinion of the Accountants;
(ii)
an analysis prepared by the General Partner (which need not be audited, but shall be reviewed by the Accountants) of distributions made to the General Partner and the Limited Partners during such Fiscal Year, separately identifying the portion (if any) of such distributions from:
(A)
Cash Flow during such period;
(B)
Cash Flow from prior periods which had been held as Reserves;
(C)
Cash Flow and/or Distributable Cash from Sales and refinancings; and
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(D)
Capital Contributions originally used to establish a Reserve;
(iii)
a status report with respect to each Investment which individually represents at least 10% of the aggregate Purchase Price of the Partnership's Investments held at the end of such Fiscal Year, which report shall state:
(A)
the condition of the Equipment and each material item thereof and of any collateral securing any Investment to which such report applies;
(B)
how such Equipment or collateral was being used as of the end of such Fiscal Year (e.g., leased, serving as collateral for Secured Loans, operated directly by the Partnership, or held for lease, repair or Sale);
(C)
the projected or intended use of such Equipment or collateral during the next following Fiscal Year;
(D)
the remaining term of the Investment; and
(E)
such other information as may be relevant to the value or use of such Equipment or collateral as the General Partner, in good faith, deems appropriate;
(iv)
a breakdown of all fees and other compensation paid, and all costs and expenses reimbursed, to the General Partner or its Affiliates by the Partnership during such Fiscal Year identified (and properly allocated) as to type and amount:
(A)
in the case of any fees and other compensation, such breakdown shall provide the information required under Section 15.5(a)(ii); and
(B)
in the case of reimbursed costs and expenses, the General Partner shall also prepare an allocation of the total amount of all such items in accordance with this Agreement. Such cost and expense allocation shall be reviewed by the Accountants in connection with their audit of the financial statements of the Partnership for such Fiscal Year in accordance with the American Institute of Certified Public Accountants United States Auditing standards relating to special reports and such Accountants shall state that, in connection with the performance of such audit, such Accountants reviewed, at a minimum, the time records of, and the nature of the work performed by, individual employees of the General Partner or its Affiliates, the cost of whose services were reimbursed. The additional costs of the special review required by this clause will be itemized by the Accountants on
a Program by Program basis and shall be reimbursed to the General Partner by the Partnership only to the extent that such reimbursement, when added to the cost for administrative services rendered, does not exceed the amount the Partnership would be required to pay independent third-parties for comparable administrative services in the same geographic location; and
(v)
a special report containing the information required by Section 15.5(a)(iii).
15.5(c). Reports to State Securities Law Administrators
. The General Partner shall submit to all state securities law Administrators, including Arizona, California and Ohio, any information which such Administrator requires, including, but not limited to:
(i)
reports and statements required by this Agreement to be distributed to Limited Partners; or
(ii)
reports required to be filed with the Administrator by state securities laws, regulations or policies.
15.6 Tax Returns and Tax Information.
The General Partner shall:
(i)
prepare, or cause the Accountants to prepare, in accordance with applicable laws and regulations, the Partnership's tax returns (federal, state, local and foreign, if any) for each Fiscal Year within 75 days after the end of such Fiscal Year; and
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(ii)
deliver to each Partner by March 15 following each Fiscal Year a Schedule K-1 or other statement permitted under the Code or by the IRS setting forth such Partner's share of the Partnership's Income or Loss for such Fiscal Year.
15.7 Accounting Decisions.
All decisions as to accounting matters, except as specifically provided to the contrary in this Agreement, shall be made by the General Partner in accordance with the accounting methods adopted by the Partnership for federal income tax purposes or otherwise in accordance with generally accepted accounting principles. Such decisions must be acceptable to the Accountants, and the General Partner may rely upon the advice of the Accountants as to whether such decisions are in accordance with the methods adopted by the Partnership for federal income tax purposes or generally accepted accounting principles.
15.8 Federal Tax Elections.
The Partnership, in the sole discretion of the General Partner, may make elections for federal tax purposes as follows:
15.8(a). Elections Under Section 754 of the Code
. In case of a transfer of all or part of a General Partner's Partnership Interest or a Limited Partner's Units, the Partnership may timely elect under Section 754 of the Code (or corresponding provisions of future law), and under similar provisions of applicable state or local income tax laws, to adjust the basis of the assets of the Partnership. In that event, any basis adjustment attributable to the election shall be allocated solely to the transferee.
15.8(b). Other Elections
. All other elections, including but not limited to the adoption of accelerated depreciation and cost recovery methods, required or permitted to be made by the Partnership under the Code shall be made by the General Partner in such a manner as will, in the opinion of the General Partner (as advised by Counsel or the Accountants as the General Partner deems necessary), be most advantageous to the Limited Partners as a group. The Partnership shall, to the extent permitted by applicable law and regulations, elect to treat as an expense for federal income tax purposes all amounts incurred by it for state and local taxes, interest and other charges which may, in accordance with applicable law and regulations, be considered as expenses.
15.8(c). Agreement to be Bound by Elections
. The Partnership, the General Partner and each Limited Partner hereby agree to be legally bound by the provisions of this subsection (c) and further agree that, in the General Partner's sole discretion, the Partnership and all of its Partners may elect a safe harbor under which the fair market value of a Partnership Interest that is transferred in connection with the performance of services is treated as being equal to the liquidation value of that interest for transfers on or after the date final regulations providing the safe harbor are published in the Federal Register. If the General Partner determines that the Partnership and all of its Partners will elect the safe harbor, which determination may be made solely in the best interests of the General Partner, the Partnership, the General Partner and each Limited Partner further agree that:
(i)
the Partnership shall be authorized and directed to elect the safe harbor;
(ii)
the Partnership and each of its Partners (including any Person to whom a Partnership Interest is transferred in connection with the performances of services) shall comply with all requirements of the safe harbor with respect to all Partnership Interests transferred in connection with the performance of services while the election remains effective; and
(iii)
the General Partner, in its sole discretion, may cause the Partnership to terminate the safe harbor election, which determination may be made in the sole interests of the General Partner.
15.9 Tax Matters Partner
15.9(a). Designation of Tax Matters Partner.
The General Partner is hereby designated the Partnership's "Tax Matters Partner" under Section 6231(a)(7) of the Code, and may hereafter designate its successor as Tax Matters Partner, to manage administrative and judicial tax proceedings conducted at the Partnership level by the IRS with respect to Partnership matters. Any Partner, other than the Tax Matters Partner, shall have the right to participate in such administrative or judicial proceedings relating to the determination of Partnership items at the Partnership level to the extent provided by Section 6224 of the Code and at the Partner's own expense. The Limited Partners shall not act independently with respect to tax audits or tax litigation affecting the Partnership, and actions taken by the General Partner as Tax Matters Partner in connection with tax audits
shall be binding in all respects upon the Limited Partners, except as provided below.
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15.9(b). Duties of Tax Matters Partner.
The Tax Matters Partner shall have the following duties:
(i)
to the extent and in the manner required by applicable law and regulations, the Tax Matters Partner shall furnish the name, address, number of Units and taxpayer identification number of each Limited Partner to the Secretary of the Treasury or his delegate (the "Secretary"); and
(ii)
to the extent and in the manner required by applicable law and regulations, the Tax Matters Partner shall keep each Limited Partner informed of administrative and judicial proceedings for the adjustment at the Partnership level of any item required to be taken into account by a Limited Partner for income tax purposes (such judicial proceedings referred to hereinafter as "judicial review").
15.9(c). Indemnification of Tax Matters Partner
. Subject to Section 9.3, the Partnership shall indemnify and reimburse the Tax Matters Partner for all expenses, including legal and accounting fees, claims, liabilities, losses and damages incurred in connection with any administrative or judicial proceeding with respect to the tax liability of the Partners. The payment of all such expenses shall be made before any distributions are made from Distributable Cash. Neither the General Partner nor any Affiliate nor any other Person except the Partnership shall have any obligation to provide funds for such purpose. The taking of any action and the incurring of any expense by the Tax Matters Partner in connection with any such proceeding, except to the extent required by law, shall be in the sole discretion of the Tax Matters Partner. The provisions on limitations of liability of the General
Partner and indemnification set forth in Section 9.3 shall be fully applicable to the General Partner acting in its capacity as Tax Matters Partner.
15.9(d). Authority of Tax Matters Partner
. The Tax Matters Partner is hereby authorized, but not required:
(i)
to enter in to any settlement with the IRS with respect to any tax audit or judicial review, in which agreement the Tax Matters Partner may expressly state that such agreement shall bind the other Partners, except that such settlement agreement shall not bind any Partner who (within the time prescribed pursuant to Section 6224(c)(3) of the Code and regulations thereunder) files a statement with the IRS providing that the Tax Matters Partner shall not have the authority to enter into a settlement agreement on the behalf of such Partner;
(ii)
if a notice of a final administrative adjustment at the partnership level of any item required to be taken into account by a Partner for tax purposes (a "final adjustment") is mailed to the Tax Matters Partner, to seek judicial review of such final adjustment, including the filing of a petition for readjustment with the Tax Court, the District Court of the United States for the district in which the Partnership's principal place of business is located, the United States Court of Claims or any other appropriate forum;
(iii)
to intervene in any action brought by any other Partner for judicial review of a final adjustment;
(iv)
to file a request for an administrative adjustment with the IRS at any time and, if any part of such request is not allowed by the IRS, to file a petition for judicial review with respect to such request;
(v)
to enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item required to be taken in to account by a Partner for tax purposes, or an item affected by such item; and
(vi)
to take any other action on behalf of the Partners or the Partnership in connection with any administrative or judicial tax proceeding to the extent permitted by applicable law or regulations.
ARTICLE XVI - MEETINGS AND VOTING RIGHTS OF THE LIMITED PARTNERS
16.1 Meetings of the Limited Partners
16.1(a). Procedure for Limited Partner Meetings.
A meeting of the Limited Partners for any purpose(s) may be called by the General Partner. A meeting of the Limited Partners shall be called by the General Partner following its receipt of written request(s), either in person or by registered mail, for a meeting on any matter on which the Limited Partners may vote as set forth in this Article XVI from Limited Partners holding 10% or more of the then outstanding Units. Every such request for a meeting shall state with reasonable specificity the purpose(s) for which such meeting is to be held and the text of any matter, resolution or action proposed to be voted upon by the Limited Partners at such meeting. Within 10 days following the receipt of such a request, the General Partner shall give Notice to all Limited Partners of such meeting in the manner and for a time and place as
specified in subsection (b), below. In addition, the General Partner may, and if so requested by the Limited Partners in the manner described above, shall, submit the proposed matter, resolution or action for action by Consent of the Limited Partners, in lieu of a meeting.
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16.1(b). Delivery of Notice.
A Notice of any such meeting or action by written Consent shall be given to all Limited Partners either:
(i)
personally or by certified mail (if such meeting is being called, or Consent action is being solicited, by the General Partner upon the request of the Limited Partners); or
(ii)
by regular mail (if such meeting is being called, or Consent action is being solicited, by the General Partner).
A meeting called pursuant to such Notice shall be held, or Consent action taken, not less than 15 days nor more than 60 days after the date such Notice is distributed, subject to extension to the extent necessary to comply with applicable requirements of the Commission and Administrators. Such Notice shall be delivered or mailed to each Limited Partner at his record address, or at such other address as he may have furnished in writing to the General Partner as his address for receipt of Notices and, with respect to meetings, shall state the place, date and time of such meeting (which shall be the place, date and time specified in the request for such meeting or, if none, such other place, date and time as the General Partner shall determine to be reasonable and convenient to the Limited Partners) and, with respect both to meetings or solicitations of Consent actions, shall state the purpose(s) for which such
meeting is to be held or Consent action requested.
If any meeting of the Limited Partners is properly adjourned to another time or place, and if any announcement of the adjournment of time or place is made at the meeting, it shall not be necessary to give notice of the adjourned meeting. The presence in person or by proxy of a Majority Interest shall constitute a quorum at all meetings of the Limited Partners; provided, however, that, if there be no such quorum, holders of a majority of the Units so present or so represented may adjourn the meeting from time to time without further notice, until a quorum shall have been obtained. No Notice of any meeting of Limited Partners need be given to any Limited Partner who attends in person or is represented by proxy (except when a Limited Partner attends a meeting for the express purpose of objecting at the beginning of the meeting to the transaction of any business on the ground that the meeting is not lawfully
called or convened) or to any Limited Partner otherwise entitled to such Notice who has executed and filed with the records of the meeting, either before or after the time thereof, a written waiver of such Notice.
16.1(c). Record Date for Voting
. For the purpose of determining the Limited Partners entitled to vote on any matter submitted to the Limited Partners at any meeting of such Limited Partners, or to take action by Consent in lieu thereof, or any adjournment thereof, the General Partner or the Limited Partners requesting such meeting may fix, in advance, a date as the record date, which shall be a date not more than 60 days nor less than 10 days prior to any such meeting (or Consent action), for the purpose of any such determination.
16.1(d). Proxies
. Any Limited Partner may authorize any Person or Persons to act for such Limited Partner by proxy in respect of all matters as to which such Limited Partner is entitled to participate, including matters proposed for actions by Consent. Every proxy must be signed by a Limited Partner or his attorney-in- fact. No proxy shall be valid after the expiration of eleven months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Limited Partner executing it.
16.1(e). Procedure at Meeting
. At each meeting of the Limited Partners, the Limited Partners present or represented by proxy may adopt such rules for the conduct of such meeting as they shall deem appropriate, provided that such rules shall not be inconsistent with the provisions of this Agreement.
16.2 Voting Rights of the Limited Partners.
Subject to Section 16.3, the Limited Partners, acting by Consent of the Majority Interest or by vote of the Majority Interest at a meeting duly called for such purpose, may take the following actions without the concurrence of the General Partner:
(i)
amend this Agreement;
(ii)
dissolve the Partnership;
(iii)
remove the General Partner and elect one or more Substitute General Partners;
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(iv)
approve or disapprove of the Sale or series of Sales of all, or substantially all, of the assets of the Partnership, except for any Sale or series of Sales that is in connection with a Financing Transaction or in the ordinary course of liquidating the Partnership's Investments during the Liquidation Period; and
(v)
modify or terminate on 60 days' notice any contract or arrangement with the General Partner or any of its Affiliates to provide goods or services for the Partnership, other than contracts specifically authorized under this Agreement, including without limitation the Origination and Servicing Agreement, as provided for in Section 9.2(m).
The General Partner and its Affiliates may not vote or Consent on matters submitted to the Limited Partners regarding the removal of the General Partner or regarding any transaction between the Partnership and the General Partner or any of its Affiliates. In determining the requisite percentage of Units necessary to approve a matter on which the General Partner or its Affiliates may not vote or Consent, any Units owned by the General Partner or its Affiliates shall not be included in either the numerator or the denominator.
16.3 Limitations on Action by the Limited Partners.
This Agreement may not be amended by the Limited Partners to do the following:
16.3(a). No Authority to Manage
. Allow the Limited Partners to take part in the control or management of the Partnership's business or otherwise subject a Limited Partner to liability as a general partner under the Delaware Act or under the laws of any other jurisdiction in which the Partnership may be qualified or own an Investment.
16.3(b). Alter Rights
. Alter the rights, powers, duties or obligations of the General Partner without the Consent of the General Partner.
16.3(c). Contract Away Fiduciary Duty
. Contract away the fiduciary duty owed to any Limited Partner by the General Partner.
16.3(d). Alter Income or Loss
. Except in connection with the offer and sale of the Units as provided in this Agreement, alter the interest of any Partner in any item of Income or Loss or in distributions without the consent of each affected Partner.
16.3(e). Amend the Procedure to Amend the Agreement
. Without the consent of all of the Limited Partners, amend the provisions of this Agreement relating to how this Agreement may be amended.
ARTICLE XVII - AMENDMENTS
17.1 Amendments by the General Partner.
In addition to any amendments by the Limited Partners under Section 16.2, as limited by Section 16.3, this Agreement may be amended, at any time and from time to time, by the General Partner without the Consent of a Majority Interest:
17.1(a). Add to Representations
. To add to the representations, duties or obligations of the General Partner or to surrender any right or power granted to the General Partner in this Agreement;
17.1(b). Cure Ambiguity
. To cure any ambiguity in this Agreement, to correct or supplement any provision in this Agreement that may be inconsistent with any other provision in this Agreement, or to add any provision to this Agreement with respect to matters or questions arising under this Agreement that is not inconsistent with the other provisions of this Agreement;
17.1(c). Preserve the Status
. To preserve the status of the Partnership as a partnership for federal income tax purposes, or as a limited partnership under the Delaware Act or any comparable law of any other state in which the Partnership may be required to be qualified;
17.1(d). Regulatory Compliance
. To delete any provision of this Agreement, or add any provision to this Agreement, required to be so deleted or added by the staff of the Commission, by any other federal or state regulatory body or other agency (including, without limitation, any "blue sky" commission), or by any Administrator or similar such official;
17.1(e). ERISA Compliance
. To permit the Units to fall within any exemption from the definition of "plan assets" contained in Section 2510.3-101 of Title 29 of the Code of Federal Regulations or any successor regulation or law;
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17.1(f). Amendments to Allocations
. If the Partnership is advised by Counsel, the Accountants or the IRS that any allocation of Income, Loss or distribution provided for in this Agreement is unlikely to be respected for federal income tax purposes, to amend the allocation provisions of this Agreement, in accordance with that advice to the minimum extent necessary to comply with federal income tax requirements and still effect, as nearly as practicable, the original plan of allocations and distributions set forth in this Agreement; and
17.1(g). Change the Name
. To change the name of the Partnership or the location of its principal office.
ARTICLE XVIII - POWER OF ATTORNEY
18.1 Appointment of Attorney-in-Fact.
By subscribing for Units and being admitted as a Limited Partner of the Partnership under this Agreement, each Limited Partner makes, constitutes and appoints the General Partner, each authorized officer of the General Partner and each Person who thereafter becomes a Substitute General Partner during the term of the Partnership, with full power of substitution, the true and lawful attorney-in-fact of, and in the name, place and stead of, such Limited Partner, with the power from time to time to make, execute, sign, acknowledge, swear to, verify, deliver, record, file and publish:
(i)
this Agreement, the Partnership's certificate of limited partnership and any amendment of any thereof, including, without limitation, amendments reflecting the addition of any Person as a Partner or any admission or substitution of other Partners (or the Capital Contribution made by any such Person or by any Partner) and any other document, certificate or instrument required to be executed and delivered, at any time, in order to reflect the admission of any Partner (including, without limitation, any Substitute General Partner and any Substitute Limited Partner) to the Partnership;
(ii)
any other document, certificate or instrument required to reflect any action of the Partners duly taken in the manner provided for in this Agreement, whether or not such Limited Partner voted in favor of or otherwise Consented to such action;
(iii)
any other document, certificate or instrument that may be required by any regulatory body or other agency or the applicable laws of the United States, any state or any other jurisdiction in which the Partnership is doing or intends to do business or that the General Partner deems advisable;
(iv)
any certificate of dissolution or cancellation of the certificate of limited partnership that may be reasonably necessary to effect the termination of the Partnership; and
(v)
any instrument or documents required to continue or terminate the business of the Partnership under Section 12.5 and Article XIV; provided that no such attorney-in-fact shall take any action as attorney-in-fact for any Limited Partner if such action could in any way increase the liability of such Limited Partner beyond the liability expressly set forth in this Agreement or alter the rights of such Limited Partner under Article XI, unless (in either case) such Limited Partner has given a power of attorney to such attorney-in-fact expressly for such purpose.
18.2 Amendments to Agreement and Certificate of Limited Partnership.
If, under this Agreement, any action, adoption proposal, right, power or authority requires the Consent, vote, ratification or approval of fewer than all of the Limited Partners, then, on the satisfaction of that requirement, the Consent, vote, ratification or approval shall be deemed, and each Limited Partner hereby agrees that it shall constitute, that of all of the Limited Partners for all purposes, including unanimity requirements under the Delaware Act. Limited Partners who did not respond in connection with the proposed Consent, vote, ratification or approval shall be deemed to have abstained for all purposes under this Agreement.
18.3 Power Coupled With an Interest.
The grant of authority by each Limited Partner in Section 18.1:
(i)
is a special power of attorney coupled with an interest in favor of the attorney-in-fact and shall be irrevocable and shall survive the death, incapacity, insolvency, dissolution or termination of the Limited Partner;
(ii)
may be exercised for the Limited Partner by a signature of the attorney-in-fact or by listing or referring to the names of all of the Limited Partners, including that Limited Partner, and executing any instrument with a single signature of any one of the attorneys-in-fact acting as attorney-in- fact for all of them; and
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(iii)
shall survive the Assignment by any Limited Partner of all or any portion of the Limited Partner's Units, provided that, if any Assignee of all of a Limited Partner's Units has furnished to the General Partner a power of attorney complying with the provisions of Section 18.1 and the admission to the Partnership of the Assignee as a Substitute Limited Partner has been approved by the General Partner, this power of attorney shall survive the Assignment with respect to the assignor Limited Partner for the sole purpose of enabling the attorneys-in-fact to execute, acknowledge and file any instrument necessary to effect the Assignment and admission and shall thereafter terminate with respect to the assignor Limited Partner.
ARTICLE XIX - GENERAL PROVISIONS
19.1 Notices, Approvals and Consents.
All Notices, approvals, Consents or other communications under this Agreement shall be in writing and signed by the party giving the same and, except as otherwise specifically provided in this Agreement, shall be deemed to have been delivered when the same are deposited in the United States mail and sent by first class or certified mail, postage prepaid; hand delivered; sent by overnight courier; or sent by facsimile and confirmed by telephone during normal business hours.
In each case, delivery shall be made to the parties at the addresses set forth below or at any other addresses as the parties may designate by Notice to the Partnership as specified in Section 5.1:
(i)
If to the Partnership: LEAF Equipment Leasing Income Fund III, L.P., 110 S. Poplar Street, Suite 101, Wilmington, Delaware 19801, with a copy to c/o LEAF Asset Management, LLC, General Partner, 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103; Telephone Number: 800-819-5556 (the Partnership) and 215-569-1844 (the General Partner); Fax Number: 215-561-0844 (the Partnership) and 215-561-6249 (the General Partner).
(ii)
If to the General Partner: LEAF Asset Management, LLC, 1818 Market Street, 9th Floor, Philadelphia, Pennsylvania 19103; Telephone Number: 215-569-1844; Telecopier Number: 215-561-6249.
(iii)
If to any Limited Partner, at the address set forth in the Limited Partner's Subscription Agreement unless a different address has been provided to the Partnership under Section 5.1.
19.2 Further Assurances.
The Partners agree to execute, acknowledge and deliver all further instruments and do all further acts and things as may reasonably be necessary to carry out the intent and purpose of this Agreement.
19.3 Captions.
Captions contained in this Agreement are inserted only as a matter of convenience and do not define, limit, extend or describe the scope of this Agreement or the intent of any provision of this Agreement.
19.4 Binding Effect.
Except to the extent required under the Delaware Act and for fees, rights to reimbursement and other compensation provided as such, none of the provisions of this Agreement shall be for the benefit of, or be enforceable by, any creditor of the Partnership.
19.5 Severability.
If one or more of the provisions of this Agreement or any application thereof shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement and any other application thereof shall not be affected or impaired in any way thereby, and the remaining provisions shall be interpreted consistently with the omission of the invalid, illegal or unenforceable provision or applicable thereof.
19.6 Integration.
This Agreement constitutes the entire agreement among the parties pertaining to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements and understandings of the parties in connection with the subject matter of this Agreement that conflict with the express terms of this Agreement. No covenant, representation or condition not expressed in this Agreement shall affect, or be effective to interpret, change or restrict, the express provisions of this Agreement.
19.7 Applicable Law.
This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the State of Delaware, including, without limitation, the Delaware Act (except and solely to the extent that provisions of the laws of any other jurisdiction are stated to be applicable in any section of this Agreement), without giving effect to the conflict of laws provisions thereof.
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19.8 Counterparts.
This Agreement may be signed by each party to this Agreement on a separate counterpart (including, in the case of a Limited Partner, a separate Subscription Agreement or signature page executed by one or more such Partners), but all such counterparts, when taken together, shall constitute but one and the same instrument.
19.9 Creditors.
No creditor who makes a loan to the Partnership shall have or acquire at any time, as a result of making the loan, any direct or indirect interest in the profits, capital or property of the Partnership other than as a secured creditor.
19.10 Successors and Assigns.
Each and every covenant, term, provision and agreement contained in this Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective parties to this Agreement. In furtherance of, and not in limitation of, the foregoing, the General Partner may assign, as collateral security or otherwise, any items of compensation payable to it under the terms of this Agreement. Notwithstanding any such assignment, however, the General Partner, and not any such assignee, shall remain solely liable for its obligations under this Agreement.
19.11 Waiver of Action for Partition.
Each of the parties to this Agreement irrevocably waives during the term of the Partnership any right that he may have to maintain any action for partition with respect to the Partnership's Investments and other property and assets.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of this ___________ day of ____________________, 200_.
GENERAL PARTNER:
LEAF Asset Management, LLC
By:
Name:
Its:
ORIGINAL LIMITED PARTNER:
LIMITED PARTNERS:
By: LEAF Asset Management, LLC, as Attorney in Fact
By:
Name:
Its:
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Appendix
  B
PRIOR PERFORMANCE TABLES
The following Tables I, II and III, which are unaudited, provide certain information concerning Lease Equity Appreciation Fund I, L.P. ("LEAF I") and Lease Equity Appreciation Fund II, L.P. ("LEAF II"), previous public equipment leasing programs sponsored by LEAF Financial Corporation, an affiliate of our general partner, and a former subsidiary of LEAF Financial Corporation. In this regard, beginning in 2002 LEAF I was sponsored by LEAF Asset Management, Inc., a former subsidiary of LEAF Financial that was merged into LEAF Financial in June 2004.
Buying a unit in us will not give you any ownership interest in any of LEAF Financial's prior programs, and you should not assume that you will experience investment results or returns, if any, comparable to those of the investors in those prior programs sponsored by LEAF Financial. See the "Other Programs Managed by Our General Partner or Its Affiliates" section in the prospectus for a narrative discussion of the prior public equipment leasing and finance programs sponsored by LEAF Financial.
Additional information in the Form 10-K Annual Report and the Form 10-Q Quarterly Report filed with the SEC by LEAF I and LEAF II for each reporting period may be obtained without charge by contacting LEAF Financial Corporation, 1818 Market Street, 9
th
Floor, Philadelphia, Pennsylvania 19103, Attention: Corporate Secretary. The reports are also available on request at the SEC's website on the Internet at http://www.sec.gov.
TABLE I
Experience In Raising And Investing Funds
The following table sets forth certain information, as of June 30, 2006, concerning the experience of LEAF Financial Corporation, an affiliate of our general partner, in raising and investing limited partners' funds in previous equipment leasing programs.
LEAF I
LEAF II
Date offering closed
08/15/04
TBD
Dollar amount offered
$
50,000,000
$
60,000,000
Dollar amount raised
$
17,060,774
100.00
%
$
33,695,632
100
%
Less: Offering expenses
Sales commissions
$
1,284,700
7.53
%
$
2,262,673
6.72
%
Underwriting fees
$
320,727
1.88
%
$
978,598
2.90
%
Organization and offering expenses paid to general partner or its affiliates
$
511,688
3.00
%
$
1,179,335
3.50
%
Reserves
$
298,782
1.75
%
$
292,750
0.87
%
Offering proceeds available for investment
$
14,644,877
85.84
%
$
28,982,276
86.01
%
Debt proceeds
$
76,666,297
$
83,315,780
Total equipment acquired
$
154,898,516
$
107,235,444
Acquisition fees paid to general partner
$
2,990,285
$
2,223,284
Equipment acquisition cost as a percentage of amount raised:
Purchase price
907.92
%
318.25
%
Acquisition fees paid to general partner
17.53
%
6.60
%
Percent invested
85.84
%
86.01
%
Percent leverage
81.80
%
71.20
%
Date offering commenced
08/15/02
12/22/04
Maximum offering period (in months)
24
24
Actual offering period (in months)
24
TBD
Months to invest 90% of amount available for investment
14
9
Past performance is not necessarily indicative of future performance.
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TABLE II
Compensation to Our General Partner and Affiliates
Except as otherwise noted below, the following table sets forth certain information, as of June 30, 2006 concerning the compensation derived by their general partner, LEAF Financial, an affiliate of our general partner and  LEAF I's former general partner, LEAF Financial's former subsidiary, LEAF Asset Management, Inc. that was merged into LEAF Financial in 2004, from previous equipment leasing programs. Also, all amounts presented are cumulative from the beginning of the offering of each program to June 30, 2006.
LEAF I
LEAF II
Date offering commenced
8/15/02
12/22/04
Date offering closed
8/15/04
TBD
Dollar amount raised
$
17,060,774
$
33,695,632
The following information is as of June 30, 2006
Amounts paid to general partner and its affiliates from offering proceeds:
Underwriting commissions
$
320,727
$
978,598
Organization and offering expense reimbursements
$
511,688
$
1,179,335
Acquisition fees
$
2,990,285
$
2,223,283
Dollar amount of cash generated from operations before deducting payments/accruals to general partner and affiliates
$
9,267,956
$
6,944,116
Amounts paid or accrued to general partner and its affiliates from operations:
Acquisition fees
$
2,990,285
$
2,223,283
Management fees
$
1,831,964
$
461,929
Administrative expense reimbursements
$
1,900,729
$
630,719
Past performance is not necessarily indicative of future performance.
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TABLE III
Operating Results of Prior Public Programs – LEAF I
The following table summarizes the operating results of Lease Equity Appreciation Fund I, L.P., which was sponsored by LEAF Financial Corporation, an affiliate of our general partner, and by a former subsidiary of LEAF Financial that was merged into LEAF Financial in 2004. The program's records are maintained in accordance with Generally Accepted Accounting Principles ("GAAP") for financial statement purposes. No results are shown for 2002, because the program did not conduct any activities, other than holding an escrow account for subscription proceeds, until it achieved its minimum required offering proceeds in March, 2003.
6
          Months
Ended
06/30/06
2005
2004
2003
Revenues
Net gain (loss) on sales or remarketing of equipment
166,216
126,281
60,764
(10,206
)
Gross revenue
3,795,274
7,577,548
3,476,359
983,261
Less:
Interest expense
(2,158,429
)
(4,344,009
)
(1,873,986
)
(321,472
)
Depreciation expense
(355,773
)
(820,650
)
(342,865
)
(167,622
)
Management fees - general partner
(534,668
)
(840,403
)
(383,798
)
(73,095
)
Administrative expense reimbursement - general partner
(268,953
)
(554,611
)
(482,180
)
(594,985
)
General and administrative
(276,330
)
(475,828
)
(309,040
)
(207,166
)
Provision for (reversal of) bad debts (2)
(339,260
)
(1,352,191
)
(394,928
)
(5,000
)
Net (loss) income – GAAP
28,077
(683,863
)
(249,674
)
(396,285
)
Net (loss) income – GAAP – allocable to limited partners
27,796
(677,024
)
(247,178
)
(392,322
)
Taxable income (loss) from operations (1)(3)
11,118
(1,218,140
)
(2,162,550
)
(202,837
)
Cash provided by (used in) operating activities
2,165,346
(285,980
)
2,189,315
(734,969
)
Cash used in investing activities
(193,997
)
(29,050,817
)
(30,867,192
)
(24,713,077
)
Cash provided by financing activities
(1,392,195
)
30,231,648
29,958,363
26,477,439
Cash generated from operations, sales, and refinancing
579,154
894,851
1,280,486
1,029,393
Less:
Cash distributions to investors from operations, sales and refinancing
685,109
1,373,982
967,980
474,950
Cash distributions to general partner from operations, sales and refinancing
6,920
13,879
9,768
4,794
Cash generated from (used by) operations, sales and refinancing after cash distributions
(112,875
)
(493,010
)
302,738
549,649
Tax data and distributions per $1,000 limited partner investment
Federal income tax results:
Taxable income from operations (1)(3)
1
(71
)
(158
)
(33
)
Cash distributions to investors
40
80
71
78
Source (on GAAP basis)
Return of capital
40
80
71
78
Source (on cash basis)
Operations
—
—
—
—
Sales
—
—
—
—
Refinancing
—
—
—
—
Other
40
80
71
78
Weighted average number of limited partnership ($100) units outstanding
171,746
171,746
137,000
61,149
(1)
The difference between Net income – GAAP and Taxable income from operations is because of different methods of calculating depreciation and amortization, the use of the reserve method for providing for possible doubtful accounts under GAAP, and different methods of recognizing revenue on direct finance leases under GAAP that generally are similar to full payout leases as defined under LEAF I's partnership agreement.
(2)
The program records a provision for bad debts to provide for estimated credit losses in its portfolio. This policy is based on an analysis of the aging of the program's portfolio, a review of the non-performing receivables and leases, prior collection experience and historical loss experience.
(3)
Taxable income is not calculated on an interim basis, only at the end of a year.
Past performance is not necessarily indicative of future performance.
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TABLE III (Continued)
Operating Results of Prior Public Programs – LEAF II
The following table summarizes the operating results of Lease Equity Appreciation Fund II, L.P., which was sponsored by LEAF Financial Corporation, an affiliate of our general partner, and by a former subsidiary of LEAF Financial that was merged into LEAF Financial in 2004. The program's records are maintained in accordance with Generally Accepted Accounting Principles ("GAAP") for financial statement purposes. No results are shown for 2004, because the program did not conduct any activities, other than holding an escrow account for subscription proceeds, until it achieved its minimum required offering proceeds in April, 2005.
6
          Months
Ended
06/30/06
2005
Revenues
Net gain (loss) on sales or remarketing of equipment
36,797
(4,704
)
Gross revenue
3,908,633
1,198,352
Less:
Interest expense
(1,671,655
)
(583,833
)
Depreciation expense
(1,172,060
)
(247,080
)
Management fees - general partner
(321,928
)
(140,001
)
Administrative expense reimbursement - general partner
(290,793
)
(339,926
)
General and administrative
(231,206
)
(190,706
)
Provision for (reversal of) bad debts (2)
(282,903
)
(130,000
)
Net (loss) income – GAAP
(25,155
)
(437,898
)
Net (loss) income – GAAP – allocable to limited partners
(24,903
)
(433,520
)
Taxable income (loss) from operations (1)(3)
(9,960
)
(438,164
)
Cash provided by (used in) operating activities
2,344,007
(480,581
)
Cash used in investing activities
56,302,111
(42,344,345
)
Cash provided by financing activities
66,337,860
43,857,864
Cash generated from operations, sales, and refinancing
12,379,756
1,032,938
Less:
Cash distributions to investors from operations, sales and refinancing
694,831
328,953
Cash distributions to general partner from operations, sales and refinancing
7,018
3,327
Cash generated from (used by) operations, sales and refinancing after cash distributions
11,677,907
700,658
Tax data and distributions per $1,000 limited partner investment
Federal income tax results:
Taxable income from operations (1)(3)
(0
)
(86
)
Cash distributions to investors
33
64
Source (on GAAP basis)
Return of capital
33
64
Source (on cash basis)
Operations
—
—
Sales
—
—
Refinancing
—
—
Other
33
64
Weighted average number of limited partnership ($100) units outstanding
210,872
51,053
(1)
The difference
        between Net income – GAAP and Taxable income from operations is because
        of different methods of calculating depreciation and amortization, the
        use of the reserve method for providing for possible doubtful accounts
        under GAAP, and different methods of recognizing revenue on direct finance
        leases under GAAP that generally are similar to full payout leases as
        defined under LEAF I's partnership agreement.
(2)
The program records a provision for bad debts to provide for estimated credit losses in its portfolio. This policy is based on an analysis of the aging of the program's portfolio, a review of the non-performing receivables and leases, prior collection experience and historical loss experience.
(3)
Taxable income is not calculated on an interim basis, only at the end of a year
Past performance is not necessarily indicative of future performance.
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Appendix C
LEAF Equipment Leasing Income Fund III, L.P.
INSTRUCTIONS FOR COMPLETING THE SUBSCRIPTION AGREEMENT
Consult with your registered representative or financial planner regarding suitability requirements and subscriber representations.
1.
INVESTMENT
•
Each unit costs $100.
•
The minimum initial investment is 50 units ($5,000), except  as provided under "Distribution Reinvestment Elections," below.
2.
REGISTRATION
INFORMATION
•
Complete all of the information requested in sections 2(a) and 2(c). If you are not a United States citizen, please specify the country of which you are a citizen.
•
Complete section 2(b) only if this you are investing in us as an IRA, Qualified Plan, Keogh plan or trust.
3.
FORM OF OWNERSHIP
•
Mark only one box.
•
Consult your registered representative with any questions about designating the form of ownership.
4.
DISTRIBUTION
REINVESTMENT
ELECTIONS
•
You may elect in Section 1 to reinvest your distributions from us in additional units during our offering period on the same terms as your initial purchase of our units, subject to availability, except that there is no minimum amount of additional units you must purchase, unless you are a resident of Ohio.
•
If you previously invested in Lease Equity Appreciation Fund I, L.P. ("LEAF I") and/or Lease Equity Appreciation Fund II, L.P. ("LEAF II"), then you may elect in Section 1 to invest your distributions from one or both of those funds in our units during our offering period on the same terms as our units are sold to other investors, subject to availability, except that there is no minimum amount of our units that you are required to purchase. In addition, you must complete, date, sign and mail the original Letter of Direction and Authorization to LEAF Financial Corporation set forth on page C-10 of this Subscription Agreement to LEAF Financial Corporation with a copy of the letter provided to our general partner with your original Subscription Agreement.
5.
DIRECT DEPOSIT AND
ALTERNATIVE PAYEES
ELECTION
•
All subscribers except IRAs should complete this section to if you wish to have your distributions from us sent to an address different from that the address shown in section 2(a), and you should complete this section if you want direct deposit.
6.
SIGNATURES AND
INITIALS
•
All investors must sign and initial the various sections to the extent applicable to them as indicated in the form. The signature of an authorized partner, manager or officer is required for a partnership, limited liability company or corporation investor.
7.
SELLING DEALER
INFORMATION
•
The registered representative must complete and sign this section of the Subscription Agreement, or the subscription cannot be accepted.
8.
SUBSCRIPTION
CHECKS, MAILING
INSTRUCTIONS AND
CONFIRMATIONS
•
Checks should be made payable to
"LEAF Equipment Leasing Income Fund III,  L.P. Subscription Account,"
unless the escrow has not yet been terminated (as disclosed in a prospectus supplement to this prospectus), in which event checks should be made payable to
"LEAF Equipment Leasing Income Fund III, L.P. Escrow Account."
•
Wire transfer instructions are available on request.
Mailing:
•
IRAs, Qualified Plans and Keogh plan investors should: mail all of their subscription documents with their check and transfer instructions to their designated custodian.
•
All other investors should mail all their subscription documents with their check and transfer instructions to:
Chadwick Securities, Inc.
1845 Walnut Street, 10
th
Floor
Philadelphia, PA 19103
Telephone: (866) 323-0241
Fax: (215) 574-8176
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•
We will send you a confirmation letter for your records after your subscription to purchase units in us has been approved by our general partner.
•
Mail the white original and the pink copy of your signed Subscription Agreement as set forth above. Your registered representative should keep the yellow copy for his/her records. We will return the pink copy to you for your records after your subscription has been either accepted or rejected.
YOUR SUBSCRIPTION AGREEMENT WILL NOT BE PROCESSED BY US UNLESS IT IS FULLY COMPLETED AND ACCOMPANIED BY PAYMENT IN FULL, EXCEPT AS OTHERWISE PROVIDED IN THESE INSTRUCTIONS REGARDING UNITS PURCHASED WITH CASH DISTRIBUTIONS. ANY SUBSCRIPTION PAYMENT THAT IS DISHONORED WILL CAUSE THE SUBSCRIPTION AND ANY NOTICE OF ACCEPTANCE OF THE SUBSCRIPTION BY OUR GENERAL PARTNER TO BE VOID AS OF THE SUBSCRIPTION DATE AND SHALL OBLIGATE THE SUBSCRIBER TO PAY ALL COSTS AND CHARGES ASSOCIATED WITH THE DISHONORED PAYMENT.
If you have any questions about completing this Subscription Agreement, please call Chadwick Securities, Inc. Investor Services at (866) 323-0241.
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IMPORTANT INFORMATION FOR POTENTIAL SUBSCRIBER(S)
•
No offer to sell our units to you may be made except by means of this prospectus.
•
You should not rely on any oral statements made by any person, or on any written information other than this prospectus or supplements to this prospectus in deciding whether or not to purchase our units.
•
An investment in our units involves certain risks including, without limitation, the matters set forth in this prospectus under the captions "Risk Factors," "Conflicts of Interest," "Investment Objectives and Strategies," and "Federal Income Tax Consequences."
•
The representations you make in the "Investor Suitability Requirements and Subscriber Representations" section of this Subscription Agreement are not a waiver of any of your rights under the Delaware Revised Uniform Limited Partnership Act or applicable federal and state securities laws.
•
Our units are subject to substantial restrictions on transferability.
•
There will be no public market for our units.
•
It may not be possible for you to readily liquidate your units, if at all, even in the event of an emergency.
•
Any transfer of units is subject to our approval and must comply with the terms of Article XIII of the partnership agreement.
•
As described in the "Investor Suitability" section of this prospectus, some states impose more stringent suitability standards that must be met by prospective purchasers of units than our general requirements.
•
The State of California has additional restrictions on the transfer of our units, as summarized in the following legend:
"IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, EXCEPT AS PERMITTED IN THE COMMISSIONER'S RULES."
•
Under suitability guidelines of the Office of the Kansas Securities Commissioner, you are cautioned to carefully evaluate whether your investment in us and substantially similar investments should exceed 10% of your net worth.
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SUBSCRIPTION AGREEMENT
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
A Delaware Limited Partnership
GENERAL PARTNER USE ONLY
Date:
No. of Units:
Blue Sky State:
Officer Approval:
1.
Initial Investment:
(please complete the blanks and check the applicable box)
Initial Subscription Amount: $
___________
($5,000 minimum)
No. of Initial Units: __________________ (50 units minimum)
No. of Additional Units: __________
Check this box if you are using your cash distributions from us to purchase units in addition to your initial units, or if you are using your cash distributions from LEAF I and/or LEAF II to purchase units as set forth in section 4, below.
2.
Registration Information:
(please type or print clearly)
(a)
Subscriber Information
Name(s)
Tax I.D. No. or Social Security No.
Residential Street Address
City
State
Zip Code
Telephone No. (Day)
(Evening)
(b)
Trustee or Custodial Information (IRA's, Qualified Plans, other SEP, Keogh, Trustee, etc.) (if applicable)
Trustee/Custodian's Name(s)
Tax I.D. No.
Date
        Trust or Account Established
Grantor's
        Name(s)
(c)
Citizenship
        (check one)
U.S. Citizen
U.S. Resident Alien
Non-Resident Specify Country:
3.
Form of Ownership:
(check
          only one)
Individual Ownership
Spouses as Community Property
C Corporation
S Corporation
Profit Sharing Plan
IRA, SEP, Keogh
Joint Tenants
Tenants in Common
Limited Liability Company
Partnership
Trust
Custodial Account
Note to Corporations:
Please attach a copy of the corporate resolution to purchase units and articles of incorporation and by-laws, as amended
Note to Partnerships:
Please attach a copy of the current partnership agreement, as amended
Note to Trusts:
Please attach a copy of the instrument creating the trust, as amended
Note to Estates:
Please attach a copy of the will and current letters testamentary
Note to LLCs:
Please attach a copy of the limited liability company resolution to purchase units and articles of organization and operating agreement, as amended
4
.
Distributions Reinvestment Elections
Check if:
You want your distributions from us reinvested in additional units during the Offering Period, which will be on the same terms and subject to the same fees and commissions as your initial investment, except there is no minimum investment amount on your additional units and you represent that you are not a resident of Ohio.
You invested in Lease Equity Appreciation Fund I, L.P. ("LEAF I") and/or Lease Equity Appreciation Fund II, L.P. ("LEAF II"), you want your distributions invested in our units on the same terms, and subject to the same fees and commissions, as our units are offered and sold to other investors, except that there is no minimum amount of our units that you can purchase, and you represent that you are not a resident of Ohio. In addition, you must complete, date, sign and mail the original Letter of Direction and Authorization to LEAF Financial Corporation (set forth on page C-10 of this Subscription Agreement) and send the original of that letter to our general partner with your original Subscription Agreement.
5.
Direct Deposit and Alternative Payees Elections:
(Complete if Payee is different from Section 2(a) or 2(b) above, or if distributions are to be reinvested)
Check if:
You want direct deposits of your distributions or to split your distributions between one or more Payees. If you elect this alternative you must complete the Special Payment Instruction Form on page C-5 hereof. Split distributions are available only for direct deposit by ACH ("Automated Clearing House," a financial network run by the Federal Reserve to transfer funds electronically). Not available for IRAs or Keogh plans.
You want your distributions sent to the Payee and Address listed below. Complete the following section:
Payee Name
ABA No.
Account Type
Branch No.
Acct. No.
Account Holder
Street Address
City
State
Zip
Bank Routing No.
C-4
6.
Initials and Signatures:
The undersigned confirms that he/she/it:
•
Received the Prospectus and has read page C-2 of this Subscription Agreement. (Initial ________) (Initial _______)
•
Makes the representations contained on page C-4 of this Subscription Agreement. (Initial ________) (Initial _______)
•
Acknowledges that an investment in us is not liquid. (Initial ________) (Initial _______)
•
Declares that, to the best of his/her/its knowledge, all information in Sections 1-4 on this page C-3 is accurate and may be relied on by the General Partner. (Initial ________) (Initial _______)
•
Appoints the General Partner as his/her/its attorney-in-fact as described in Paragraph 2 on page C-4 hereof.
(Initial _______) (Initial _______)
•
If a Kansas resident, the investor has considered the 10% of net worth cautionary statement on this and similar investments as set forth on page C-2 hereof. (Initial ________) (Initial _______)
•
Meets the minimum income and net worth standards set forth in the prospectus. (Initial ________) (Initial _______)
•
Is purchasing the units for his/her/its own account. (Initial ________) (Initial _______)
Your Subscription cannot be
accepted without your initials
and signature(s)
Sign Here X
Sign Here X
Investor's Signature     Date
Authorized Signature           Date
(Custodian/Trustee/Officer/Partner)
Print Name
Print Name
Sign Here X
Sign Here X
Co-Investor's Signature     Date
Authorized Signature                     Date
(Custodian/Trustee/Officer/Partner)
Print Name
Print Name
7.
Selling Dealer Information:
(Please type or print clearly)
The registered representative who solicited your subscription must sign below and, by doing so, represents that he/she:
(i)
is duly licensed by, and in good standing with, the NASD and may lawfully offer our units in this offering the State(s) listed in Section 2(a);
(ii)
has reasonable grounds to believe, based on information obtained from the Subscriber concerning his/her/its investment objectives, other investments, financial situation and needs, and any other information about the Subscriber known by the registered representative, that the investment described in Section 1 or Section 4 of this Subscription Agreement is suitable in light of the Subscriber's income, net worth and other characteristics; and
(iii)
the registered representative has informed the Subscriber as to the risks of ownership and limited liquidity of our units, and delivered a current copy of the Prospectus to the Subscriber in connection with the offering of our units.
Broker/Dealer Firm Name
Supervisor
Telephone No.
Registered Representative Name
Rep. No.
Telephone No.
Representative's Street Address
City
State
Zip Code
Signature X
(Registered Representative)
The subscription cannot be completed without a signature.
8.
Investment Check and Subscription Agreement:
Mail the completed Subscription Agreement [pages C-4 and C-5], your Taxpayer Identification Certification [page C-8] and, if applicable, the Special Payment Instruction Form for Distributions [page C-9] and/or the Letter of Direction and Authorization to LEAF Financial Corporation [page C-10], with a check for your initial subscription amount as set forth in Section 1 of your Subscription Agreement [page C-4] made payable as instructed in Section 8 on page [C-1], to:
Chadwick Securities, Inc., 1845 Walnut Street, 10
th
Floor, Philadelphia, PA 19103
Telephone: (866) 323-0241         Fax: (215) 576-8176
Wiring instructions available on request
Acceptance of Subscription Agreement by
General Partner of LEAF Equipment Leasing
Income Fund III, L.P.
LEAF Asset Management, LLC, General Partner
By:
Authorized Signature
Date
C-5
INVESTOR SUITABILITY REQUIREMENTS AND SUBSCRIBER REPRESENTATIONS
1.
Subscription for Units.
•
I, by signing my name in Section 5 on page C-3, hereby:
(a)
subscribe for the number of units, and dollar subscription amount set forth in Section 1 on page C-3;
(b)
agree to become a limited partner of LEAF Equipment Leasing Income Fund III, L.P. on the acceptance of my subscription by the general partner; and
(c)
adopt and agree to be bound by each and every provision of LEAF Equipment Leasing Income Fund III, L.P.'s partnership agreement and my Subscription Agreement.
•
I am is tendering good funds with my Subscription Agreement in full payment for the units I have subscribed for (if I am required to do so under Sections 1 and 4 on page C-2) at the per unit subscription price applicable to me.
2.
Appointment of the General Partner as Subscriber's Attorney-in-Fact.
•
By signing my name in Section 6 on page C-3, (and effective on my admission as a limited partner of LEAF Equipment Leasing Income Fund III, L.P.), I hereby make, constitute and appoint the general partner, each authorized officer of the general partner and each person who may thereafter become a substitute general partner of LEAF Equipment Leasing Income Fund III, L.P. with full power of substitution, as the true and lawful attorney-in-fact of, in my name, place and stead to the full extent and for the purposes and duration, set forth in Article XVIII of the partnership agreement (all of the terms of which are hereby incorporated in this Subscription Agreement by this reference).
•
Such purposes include, without limitation, the power to make, execute, sign, acknowledge, swear to, verify, deliver, record, file and publish any of the following:
(a)
the partnership agreement, certificates of limited partnership and any amendment thereof, including amendments reflecting the admission or substitution of any general partner or limited partner (or their capital contributions) and any other document, certificate or instrument required to reflect the admission of any partner (including any substitute general partner and any substitute limited partner);
(b)
any other document, certificate or instrument required to reflect any action of the partners provided for in the partnership agreement (whether or not I voted in favor of or otherwise consented to the action);
(c)
any other document, certificate or instrument that may be required by any regulatory body or other agency or the applicable laws of the United States, any state or any other jurisdiction in which LEAF Equipment Leasing Income Fund III, L.P. is doing or intends to do business or that the general partner deems advisable;
(d)
any certificate of dissolution or cancellation of the certificate of limited partnership that may be reasonably necessary to effect the termination of LEAF Equipment Leasing Income Fund III, L.P.; and
(e)
any instrument or papers required to continue or terminate the business of LEAF Equipment Leasing Income Fund III, L.P. under Section 12.5 or Article XIV of the partnership agreement; provided that no such attorney-in-fact shall take any action as attorney-in-fact for me if the action could in any way increase my liability beyond the liability expressly set forth in the partnership agreement or alter my rights under Article XI of the partnership agreement, unless (in either case) I have given a power of attorney to the attorney-in-fact expressly for that purpose.
•
The foregoing appointment shall not in any way limit the authority of the general partner as my attorney-in-fact under Article XVIII of the partnership agreement. The power of attorney hereby granted is coupled with an interest, is irrevocable and shall survive my death, incapacity, insolvency, dissolution or termination or my delivery of any assignment of all or any portion of my units.
3.
General Subscriber Representations.
•
As a condition to my being admitted as a limited partner of LEAF Equipment Leasing Income Fund III, L.P., I represent and warrant to the general partner and LEAF Equipment Leasing Income Fund III, L.P. that I:
(a)
either:
(i)
have annual gross income of $45,000, plus a net worth of at least $45,000 (exclusive of my investment in LEAF Equipment Leasing Income Fund III, L.P., home furnishings, automobiles and equity in my home), or a net worth of at least $150,000 (determined in the same manner); or
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(ii)
meet any higher investor gross income and/or net worth standards applicable to residents of my State, as set forth in the "Investor Suitability" and "The Offering" sections of the prospectus;
(b)
if I am investing as an IRA, Qualified Plan, HR-10 (Keogh) plan or other benefit plan or trust, I have accurately been identified as such in Sections 2(b) and 3 on page C-3;
(c)
have been accurately identified in Section 2(c) on Page C-3 as either a U.S. Citizen or a non-U.S. Citizen; and
(d)
am not less than 21 years of age.
•
If I am investing in a fiduciary or representative capacity, the investment is being made for one or more persons, entities or trusts, all of which meet the applicable suitability requirements described above.
4.
Additional Fiduciary and Entity Representations.
•
If the person signing this Subscription Agreement is doing so on behalf of another person or entity who is the subscriber, including, without limitation, a corporation, a partnership, an IRA, a Qualified Plan, a Keogh plan, or a trust (other than a Qualified Plan or Keogh plan), the signatory, by signing his/her/its name in Section 5 of Page C-3, represents and warrants to the general partner and LEAF Equipment Leasing Income Fund III, L.P. that:
(a)
he or she is duly authorized to:
(i)
execute and deliver this Subscription Agreement;
(ii)
make the representations contained in this Subscription Agreement on behalf of the Subscriber; and
(iii)
bind the Subscriber by signing this Subscription Agreement; and
(b)
this investment is an authorized investment for the Subscriber under applicable documents and/or agreements (articles of incorporation or corporate bylaws or action, partnership agreement, trust indenture, etc.) and applicable law.
[THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK.]
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Taxpayer Identification Number Certification – You should check the first box below, unless you are a foreign investor or you are investing as a U.S. grantor trust.
Note: If there is a change in circumstances that makes any of the information provided by you in the certification below incorrect, then you are under a continuing obligation so long as you own units in LEAF Equipment Leasing Income Fund III, L.P. to notify the general partner and furnish the general partner a new certificate within thirty (30) days of the change.
o
Under penalties of perjury, you certify that:
(1)
the number provided in this Subscription Agreement is your correct "TIN" (
i.e.
, social security number or taxpayer identification number);
(2)
you are not subject to backup withholding because (a) you are exempt from backup withholding under §3406(g)(1) of the Internal Revenue Code and the related regulations, or (b) you have not been notified by the Internal Revenue Service (IRS) that you are subject to backup withholding as a result of failure to report all interest or dividends, or (c) the IRS has notified you that you are no longer subject to backup withholding; and
(3)
you are a U.S. person (which includes U.S. citizens, resident aliens, entities or associations formed in the U.S. or under U.S. law, and U.S. estates and trusts.)
(Note: You must cross out item (2) above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return.)
o
Foreign Partner. You are at least 21 years of age and you have provided LEAF Equipment Leasing Income Fund III, L.P. with the appropriate Form W-8 certification or, if a joint account, each joint account owner has provided LEAF Equipment Leasing Income Fund III, L.P. the appropriate Form W-8 certification, and if any one of the joint account owners has not established foreign status, that joint account owner has provided LEAF Equipment Leasing Income Fund III, L.P. with a certified TIN.
o
U.S. Grantor Trusts. Under penalties of perjury, I certify that:
(1)
the trust designated as the Subscriber on the Subscription Agreement is a United States grantor trust that the person(s) designated as the grantor(s) of the trust on the Subscription Agreement can amend or revoke while living;
(2)
under subpart E of subchapter J of the Internal Revenue Code (check only
one
of the boxes below):
o
(a)
100%
          of the trust is treated as owned by the grantor;
o
(b)
the
          trust is treated as owned in equal shares by the grantor and the grantor's
          spouse; or
o
(c)
____%
          of the trust is treated as owned by ________________________, and the
          remainder is treated as owned _____% by the grantor and _____% by the
          grantor's spouse); and
(3)
each grantor or other owner of any portion of the trust has provided LEAF Equipment Leasing Income Fund III, L.P. with the appropriate Form W-8 or Form W-9 certification.
Note: If you check the box in (2)(c), you must insert the information called for by the blanks.
The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding.
ON
  YOUR EXECUTION OF THIS SUBSCRIPTION AGREEMENT AND ITS ACCEPTANCE BY THE GENERAL
  PARTNER, THIS SUBSCRIPTION AGREEMENT (CONSISTING OF PAGES C-3 AND C-4) WILL
  BECOME A PART OF THE PARTNERSHIP AGREEMENT.
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SPECIAL PAYMENT INSTRUCTION FORM FOR DISTRIBUTIONS
LEAF Equipment Leasing Income Fund III, L.P.
1845 Walnut Street, 10
th
Floor, Philadelphia, PA 19103
Please return this form with your Subscription Agreement if you want your cash distributions to be directly deposited into an account and/or sent to more than one account, location or payee. IRAs may not use this form.
First Payee
Name of
Bank
          Name:
Account
           Holder
Bank Address:
Account No.
City
State
Zip
Account Type
Branch No.
Bank Routing Number
% to be Paid*
Second Payee
Name of
Bank Name:
Account Holder
Bank Address:
Account No.
City
State
Zip
Account Type
Branch No.
Bank Routing Number
% to be Paid*
Third Payee
Name of
Bank Name:
Account Holder
Bank Address:
Account No.
City
State
Zip
Account Type
Branch No.
Bank Routing Number
% to be Paid*
Fourth Payee
Name of
Bank Name:
Account Holder
Bank Address:
Account No.
City
State
Zip
Account Type
Branch No.
Bank Routing Number
% to be Paid*
Fifth Payee
Name of
Bank Name:
Account Holder
Bank Address:
Account No.
City
State
Zip
Account Type
Branch No.
Bank Routing Number
% to be Paid*
*
The total of all the "% to be Paid" boxes must equal
100%
.
Sign Here X
Sign Here X
Investor's Signature
Authorized Signature (Custodian/Trustee/Officer/Partner)
Print Name
Print Name
Sign Here X
Sign Here X
Co-Investor's Signature
Authorized Signature (Custodian/Trustee/Officer/Partner)
Print Name
Print Name
Date
Date
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Letter of Direction and Authorization to LEAF Financial Corporation
By this letter you are directed and authorized to use all of the distributions for my account(s) from the fund(s) checked below to purchase units in LEAF Equipment Leasing Income Fund III, L.P. ("LEAF III"), beginning with the first distribution from the fund(s) checked below after my Subscription Agreement to purchase units in LEAF III has been accepted, and including all subsequent distributions for my account(s) from the fund(s) checked below during the offering period of LEAF III, to the extent LEAF III has units available to sell.
I understand that if my Subscription Agreement to purchase units in LEAF III is accepted by LEAF Asset Management, LLC, acting as general partner on behalf of LEAF III, then on my payment of the subscription price for units in LEAF III pursuant to this letter and my Subscription Agreement, I will be promptly admitted to LEAF III as a limited partner as provided in LEAF III's partnership agreement with respect to those units in LEAF III.
I represent, warrant and confirm that I understand that:
•
I am subscribing for an indeterminate amount of units in LEAF III based primarily on the amount of my cash distributions from LEAF I or LEAF II, or both, as indicated by the fund(s) I have described below;
•
units in LEAF III purchased by me pursuant to this letter will be sold to me on the same terms as LEAF III's units are being offered and sold to other investors, except that there is no minimum amount of units that I must purchase, including the following terms:
•
my subscription price is $100 per unit, unless otherwise set forth on my Subscription Agreement to LEAF III; and
•
except as otherwise provided in the "Plan of Distribution" section of LEAF III's prospectus, which I have received a copy of and read, my purchase of units in LEAF III is subject to a 3% dealer-manager fee, a 7% sales commission, and a .5% reimbursement for bona fide due diligence expenses of the selling dealer selling the units to me.
My cash distributions from the fund(s) checked below are to be used to purchase units in LEAF III as described in this letter:
Lease Equity Appreciation Fund I, L.P. ("LEAF I")
Lease Equity Appreciation Fund II, L.P. ("LEAF II")
I understand that I can at any time stop you from using my distributions from either LEAF I, LEAF II or both, as indicated by the fund(s) I have checked above, to purchase units in LEAF III for my account only by giving written notice to you and only with respect to distributions for my account(s) that have not been made before your receipt of my written notice revoking, in whole or in part, the authorization and directions I have given you in this letter to use my distributions from LEAF I, LEAF II or both, as indicated above, to purchase units in LEAF III for my account.
Name
          of Investor:
(please
          print)
(For
          IRA accounts, the Custodian of the IRA must sign this letter.)
(investor's
          signature)
Date:
Investor's
          Social Security Number: ___ ___ ___ - ___ ___ - ___ ___ ___ ___
Name
          of Co-Investor:
(please
          print)
(co-investor's
          signature)
Date
Co-Investor's
          Social Security Number:
___ ___ ___ - ___ ___ - ___ ___ ___ ___
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No person is authorized to give any information or make any representation that is not contained in this prospectus. You must not rely on any unauthorized representations or information. This prospectus is an offer to sell only the units of limited partnership interest offered by this prospectus, and only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
Units of Limited Partnership Interest
$100.00 per unit
______________
PROSPECTUS
______________
_____________________, 2006
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
Set forth below are the expenses (other than underwriting discounts, commissions and expense allowances) expected to be paid by the registrant in connection with the issuance and distribution of the securities registered hereby. With the exception of the Securities and Exchange Commission's registration fee and the NASD's filing fee, the amounts set forth below are estimated.
Securities and Exchange Commission registration fee
$
12,840
State Blue Sky registration fees (excluding legal fees)
75,000
*
NASD filing fee
12,500
Printing and engraving expenses
148,200
*
Legal fees (including Blue Sky) and expenses
370,000
*
Accounting fees and expenses
75,000
*
Miscellaneous
2,906,460
*
Total
$
3,600,000
*
*
Estimated
Item 14. Indemnification of Directors and Officers
The section of the prospectus entitled "Conflicts of Interest and Fiduciary Responsibilities - Fiduciary Duty of Our General Partner - Indemnification" is incorporated herein by this reference.
As permitted by Section 18-1101 of the Delaware Limited Liability Company Act, the limited liability agreement of LEAF Asset Management, LLC provides that its officers and directors shall not be personally liable to the company or its members for monetary damages for breach of duties (including fiduciary duties) except for liability:
(i)
for any breach of their duty of loyalty;
(ii)
for acts or omissions not in good faith or that involve gross negligence, fraud or intentional misconduct, bad faith or a knowing violation of law;
(iii)
under Sections 18-607 and 18-804(c) of the Delaware Limited Liability Company Act, relating to prohibited distributions; or
(iv)
for any transaction from which the director or officer derives an improper personal benefit.
Resource America, the indirect corporate parent of LEAF Asset Management, LLC, maintains directors' and officers' liability insurance against any actual or alleged error, misstatement, misleading statement, act, omission, neglect or breach of duty by any director or officer of itself or any direct or indirect subsidiary, excluding certain matters including fraudulent, dishonest or criminal acts or self-dealing.
Item 15. Recent Sales of Unregistered Securities
None
II-1
Item 16. Exhibits and Financial Statements Schedules
(a) Exhibits:
1.1
Form of Dealer-Manager Agreement with Chadwick Securities, Inc., including its Exhibit "A" Form of Escrow Agreement and its Exhibit "B" Form of Selling Dealer Agreement
3.1
Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.
3.2
Amended Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.
3.3
Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P. (included as Appendix A to the prospectus)
4.1
Forms of letters sent to limited partners confirming their investment
5.1
Opinion of Kunzman & Bollinger, Inc. as to the legality of the units being registered
8.1
Opinion of Kunzman & Bollinger, Inc. relating to tax matters
10.1
Form of Origination and Servicing Agreement among LEAF Financial Corporation, LEAF Equipment Leasing Income Fund III, L.P. and LEAF Funding, Inc.
23.1
Consent of Grant Thornton LLP for LEAF Equipment Leasing Income Fund III, L.P.
23.2
Consent of Grant Thornton LLP for LEAF Asset Management, LLC
23.3
Consent of Kunzman & Bollinger, Inc. (contained in Exhibits 5.1 and 8.1)
24.1
Power of Attorney
99.1
Form of Subscription Agreement (included as Appendix C to the prospectus)
99.2
Form of Selling Dealer Agreement (included as Exhibit "B" to Exhibit 1.1)
99.3
Form of Escrow Agreement (included as Exhibit "A" to Exhibit 1.1)
(b) Financial Statement Schedules
All financial statement schedules are omitted because the information is not required, is not material or is otherwise included in the financial statements or related notes thereto.
Item 17. Undertakings
The undersigned registrant hereby undertakes:
(a)(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (
§ 230.424(b)
of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective registration statement.
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
Provided, however, That:
(A)
Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the registration statement is on Form S-8 (
§ 239.16b
of this chapter), and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 (
15 U.S.C. 78m
or
78o(d)
) that are incorporated by reference in the registration statement; and
(B)
Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 (
§ 239.13
of this chapter) or Form F-3 (
§ 239.33
of this chapter) and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) (
§ 230.424(b)
of this chapter) that is part of the registration statement.
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(C)
Provided further, however,
that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the registration statement is for an offering of asset-backed securities on Form S-1 (
§ 239.11
of this chapter) or Form S-3 (
§ 239.13
of this chapter), and the information required to be included in a post-effective amendment is provided pursuant to Item 1100(c) of Regulation AB (
§ 229.1100(c)
).
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4)
If the registrant is a foreign private issuer, to file a post-effective amendment to the registration statement to include any financial statements required by "Item 8.A. of Form 20-F (
17 CFR 249.220f)
" at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. Notwithstanding the foregoing, with respect to registration statements on Form F-3 (
§ 239.33
of this chapter), a post-effective amendment need not be filed to include financial statements and information required by Section 10(a)(3) of the Act or
§ 210.3-19
of this chapter if such financial statements and information are contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Form F-3.
(5)
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
(i)
If the registrant is relying on Rule 430B (
§ 230.430B
of this chapter):
(A)
Each prospectus filed by the registrant pursuant to Rule 424(b)(3) (
§ 230.424(b)(3)
of this chapter) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
(B)
Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) (
§ 230.424(b)(2)
,
(b)(5)
, or
(b)(7)
of this chapter) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) (
§ 230.415(a)(1)(i)
,
(vii)
, or
(x)
of this chapter) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the
first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
Provided, however
, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that
was part of the registration statement or made in any such document immediately prior to such effective date; or
(ii)
If
          the registrant is subject to Rule 430C (
§
          230.430C
of this chapter), each prospectus filed
          pursuant to Rule 424(b) as part of a registration statement relating
          to an offering, other than registration statements relying on Rule 430B
          or other than prospectuses filed in reliance on Rule 430A (
§
          230.430A
of this chapter), shall be deemed to
          be part of and included in the registration statement as of the date
          it is first used after effectiveness.
Provided,
          however
, that no statement made in a registration
          statement or prospectus that is part of the registration statement or
          made in a document incorporated or deemed incorporated by reference
          into the registration statement or prospectus that is part of the registration
          statement will, as to a purchaser with a time of contract of sale prior
          to such first use, supersede or modify any statement that was made in
          the registration statement or prospectus that was part of the registration
          statement or made in any such document immediately prior to such date
          of first use.
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(6)
That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant hereby undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (
§ 230.424
of this chapter);
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b)
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c)
The undersigned registrant hereby undertakes to supplement the prospectus, after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of such offering.
(d)
The undersigned registrant hereby undertakes (1) to use its best efforts to distribute prior to the opening of bids, to prospective bidders, underwriters, and dealers, a reasonable number of copies of a prospectus which at that time meets the requirements of section 10(a) of the Act, and relating to the securities offered at competitive bidding, as contained in the registration statement, together with any supplements thereto, and (2) to file an amendment to the registration statement reflecting the results of bidding, the terms of the reoffering and related matters to the extent required by the applicable form, not later than the first use, authorized by the issuer after the opening of bids, of a prospectus relating to the securities offered at competitive bidding, unless no further public offering of such securities by the issuer and no reoffering of such securities by the
purchasers is proposed to be made.
(e)
The undersigned registrant hereby undertakes to deliver or cause to be delivered with the prospectus, to each person to whom the prospectus is sent or given, the latest annual report to security holders that is incorporated by reference in the prospectus and furnished pursuant to and meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities Exchange Act of 1934; and, where interim financial information required to be presented by Article 3 of Regulation S-X are not set forth in the prospectus, to deliver, or cause to be delivered to each person to whom the prospectus is sent or given, the latest quarterly report that is specifically incorporated by reference in the prospectus to provide such interim financial information.
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(f)
The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreements certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.
(g)(1)
The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other Items of the applicable form.
(g)(2)
The undersigned registrant hereby undertakes that every prospectus (i) that is filed pursuant to paragraph (h) (1) immediately preceding, or (ii) that purports to meet the requirements of section 10(a)(3) of the Act and is used in connection with an offering of securities subject to Rule 415 (
§ 230.415
of this chapter), will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(h)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
(i)
The undersigned registrant hereby undertakes that:
(1)
For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.
(2)
For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(j)
The undersigned registrant hereby undertakes to file an application for the purpose of determining the eligibility of the trustee to act under subsection (a) of section 310 of the Trust Indenture Act ("Act") in accordance with the rules and regulations prescribed by the Commission under section 305(b)(2) of the Act.
(k)
The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 of a third party that is incorporated by reference in the registration statement in accordance with Item 1100(c)(1) of Regulation AB (
17 CFR 229.1100(c)(1)
) shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
The
  undersigned registrant hereby undertakes that, except as otherwise provided
  by Item 1105 of Regulation AB (
17 CFR 229.1105)
,
  information provided in response to that Item pursuant to Rule 312 of Regulation
  S-T (
17 CFR 232.312)
through
  the specified Internet address in the prospectus is deemed to be a part of the
  prospectus included in the registration statement.
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In
  addition, the undersigned registrant hereby undertakes to provide to any person
  without charge, upon request, a copy of the information provided in response
  to Item 1105 of Regulation AB pursuant to Rule 312 of Regulation S-T through
  the specified Internet address as of the date of the prospectus included in
  the registration statement if a subsequent update or change is made to the information.
The
  undersigned registrant undertakes to send to each limited partner at least on
  an annual basis a detailed statement of any transactions with the General Partner
  or its affiliates, and of fees, commissions, compensation and other benefits
  paid, or accrued to the General Partner or its affiliates for the fiscal year
  completed, showing the amount paid or accrued to each recipient and the services
  performed
The undersigned registrant undertakes to provide to the limited partners the financial statements required by Form 10-K for the first full fiscal year of operations of the partnership.
The undersigned registrant further undertakes to file a sticker supplement pursuant to Rule 424(c) under the Securities Act during the distribution period describing, in the aggregate, lease transactions not described in the prospectus or a prior supplement promptly after such transactions have been consummated if such transactions exceed 10% of the offering proceeds received as of that date by the registrant.
The undersigned registrant also undertakes to file, after the end of the distribution period, a current report on Form 8-K containing the financial statements and any additional information required by Rule 3-14 of Regulation S-X, to reflect each commitment (i.e., the signing of a binding purchase agreement) made after the end of the distribution period involving the use of 10% or more (on a cumulative basis) of the net proceeds of the offering and to provide the information contained in such report to the Limited Partners at least once each quarter after the distribution period of the offering has ended.
Note
Offers and sales of the interests may continue after the filing of a post-effective amendment containing information previously disclosed in sticker supplements to the prospectus, as long as the information disclosed in a current sticker supplement accompanying the prospectus is as complete as the information contained in the most recently filed post-effective amendment.
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SIGNATURES
Pursuant
    to the requirements of the Securities Act of 1933, as amended, the registrant
    has duly caused this Registration Statement on Form S-1 to be signed on its
    behalf by the undersigned, thereunto duly authorized, in Philadelphia, Pennsylvania
on October 2, 2006.
LEAF EQUIPMENT LEASING INCOME FUND III, L.P.
By:
LEAF Asset Management, LLC,
its General Partner
By:
/s/ Miles Herman
Miles Herman
President and Chief Operating Officer
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons on behalf of the registrant and in the capacities for the general partner and on the dates indicated below.
Signature
Title
Date
Crit S. DeMent
Chairman of Board of Directors and Chief Executive Officer
October
    2,
    2006
Miles Herman
President, Chief Operating Officer and Director
October
    2, 2006
Jonathan Z. Cohen
Director
October
    2, 2006
Steven J. Kessler
Director
October
    2, 2006
Robert K. Moskovitz
Chief Financial Officer (Chief Accounting Officer) and Treasurer
October
    2, 2006
David H. English
Executive Vice President – Chief Investment Officer
October
    2, 2006
Daniel G. Courtney
Senior Vice President – Investment Programs
October
    2, 2006
Darshan V. Patel
General Counsel and Secretary
October
    2, 2006
By:
/s/ Miles Herman
Miles Herman, individually and as attorney-in-fact for each person listed above pursuant to the power of attorney filed as part of the Registration Statement.
As
  filed with the Securities and Exchange Commission on October 2, 2006
Registration
  Number ____________
UNITED
  STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
EXHIBITS
TO
FORM
  S-1
REGISTRATION
  STATEMENT
Under
THE
  SECURITIES ACT OF 1933
LEAF
  EQUIPMENT LEASING INCOME FUND III, L.P.
(Exact name of Registrant as Specified in its Charter)
Crit DeMent, Chairman
LEAF Asset Management, LLC
1818 Market Street, 9th Floor, Philadelphia, PA 19103
(215) 569-1844
(Name, Address and Telephone Number of Agent for Service)
With a Copy to:
Wallace W. Kunzman, Jr., Esq.
Kunzman & Bollinger, Inc.
5100 N. Brookline
Suite 600
Oklahoma City, Oklahoma 73112
EXHIBIT INDEX
Exhibit No.
Description
1.1
Form of Dealer-Manager Agreement with Chadwick Securities, Inc.,
including its Exhibit "A" Form of Escrow Agreement and its Exhibit "B" Form of Selling Dealer Agreement
3.1
Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.
3.2
Amended Certificate of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P.
3.3
Amended and Restated Agreement of Limited Partnership of LEAF Equipment Leasing Income Fund III, L.P. (included as Appendix A to the prospectus)
4.1
Forms of letters sent to limited partners confirming their investment
5.1
Opinion of Kunzman & Bollinger, Inc. as to the legality of the units being registered
(2)
8.1
Opinion of Kunzman & Bollinger, Inc. relating to tax matters
10.1
Form of Origination and Servicing Agreement among LEAF Financial Corporation, LEAF Equipment Leasing Income Fund III, L.P. and LEAF Funding, Inc.
23.1
Consent of Grant Thornton LLP for LEAF Equipment Leasing Income Fund III, L.P.
23.2
Consent of Grant Thornton LLP for LEAF Asset Management, LLC
23.3
Consent of Kunzman & Bollinger, Inc. (contained in Exhibits 5.1 and 8.1)
24.1
Power of Attorney
99.1
Form of Subscription Agreement (included as Appendix C to the prospectus)
99.2
Form of Selling Dealer Agreement (included as Exhibit "B" to Exhibit 1.1)
99.3
Form of Escrow Agreement (included as Exhibit "A" to Exhibit 1.1)