Nominees for District Committee and District Nominating Committee

INFORMATIONAL

District Elections

Executive Summary

The purpose of this Special Notice to Members is to announce the nominees for the District Committees and the District Nominating Committees.¹ The individuals identified in this Special Notice (see Attachment A) have been nominated for three-year terms² on the District Committees or for one-year terms on the District Nominating Committees starting in January 2006. These nominees will be considered duly elected on October 12, 2005, unless an election is contested in accordance with the procedures summarized below.

We appreciate the interest shown by many of you in participating in the District Committees and thank everyone for their continuing support of the self-regulatory process. We look forward to your participation in the matters of the Districts during the coming year, as well as hope that those who were not selected this year may wish to revisit this process next year.

Contested Election Procedures

If an officer or director of, or individual who is registered with, an NASD member who meets the qualifications of Sections 8.2 or 8.9, as applicable, of the NASD Regulation By-Laws, has not been nominated by the District Nominating Committee as a candidate or alternate and wants to be considered for election to the District Committee or the District Nominating Committee, he or she must deliver a written notice to the District Director within 14 calendar days of the date of this Special Notice, or by October 11, 2005.

Please be advised that due to Hurricane Katrina, NASD's District 5 office in New Orleans is temporarily closed. Any individuals wishing to be considered for election to the District Committee or the District Nominating Committee for District 5 must deliver written notice by October 11, 2005 to:

Virginia F. M. Jans
District Director, District 6
12801 N. Central Expressway, Suite 1050
Dallas, TX 75243
(972) 701-8554

If an additional candidate or candidates come forward by October 11, 2005, the Corporate Secretary will provide each additional candidate with a list of members who are eligible to vote in the District. In order to be considered for nomination, within 30 calendar days of receipt of the list of members eligible to vote, an additional candidate must submit a petition to the District Nominating Committee with signatures from at least 10 percent of Executive Representatives of members eligible to vote in the District.

Additional information pertaining to the District Election Procedures can be found in Article VIII of the NASD Regulation By-Laws.

Questions/Further Information

Questions concerning this Special Notice may be directed to the District Director noted in Attachment A or to Barbara Z. Sweeney, Senior Vice President and Corporate Secretary, NASD, at (202) 728-8062 or via email at [email protected].

¹ In addition to nominating a slate of candidates for each of these committees, each District Nominating Committee may nominate one alternate candidate for each committee. The nomination of alternate candidates is permitted under recent amendments to Section 8.17 of the NASD Regulation By-Laws. Attachment A identifies each District Nominating Committee's slate of nominees, plus alternate candidates (if any).

² Some nominees are filling existing vacancies and therefore may serve less than a three-year term, as indicated on Attachment A.

ATTACHMENT A

¹ Mr. Montgomery has been appointed to serve the remaining year of the term of Richard M. Hurwitz, who has resigned from the District Committee.

² Mr. Johnson has been nominated to serve the remaining year of the term of Darryl W. Traweek, who has resigned from the District Committee. The District Committee appointed Sennett Kirk, III to fill this vacancy until Mr. Johnson's term commences in January 2006.

³ Ms. Buechner has been nominated to serve the remaining year of the term of Lora Rosenbaum, who has resigned from the District Committee.

⁴ Mr. Corrao has been nominated to serve the remaining two years of the term of Dorothy G. Sanders, who has resigned from the District Committee.

⁵ Mr. Holly has been nominated to serve the remaining year of the term of Barry M. Cash, who has resigned from the District Committee.

⁶Mr. O'Connor, who was nominated as an alternate candidate for the District Committee, replaces Howard Messias, who withdrew his nomination.