Customer accounts carried by Penson Financial Services are covered by the Securities Investor Protection Corporation (SIPC), up to a maximum of $500,000 including a $100,000 maximum claim on cash. In addition, Penson Financial has supplemental protection of $24,500,000 including $900,000 maximum claim on cash, purchased through the National Union Fire Insurance Company of Pittsburgh, PA (a member company of American International Group).

Customer accounts carried by Pershing LLC have account protection for your brokerage account assets. As a registered broker-dealer in the United States, Pershing LLC is a member of the Securities Investor Protection Corporation (SIPC®) that protects your assets up to $500,000, of which $100,000 can be in cash. Please note that money market mutual fund securities (registered with the SEC and sold by prospectus) are considered securities (not cash) by SIPC and are therefore covered up to the $500,000 limit.

Pershing LLC carries “Excess SIPC” (in excess of the SIPC limits discussed above) protection through a private insurance company, Customer Asset Protection Company (CAPCO), for the net equity of your securities positions and cash in your accounts in excess of the SIPC limits. Net equity refers to the value of your securities, plus cash, minus any amount that may be owed, such as a margin loan. CAPCO is a captive insurance company licensed by the State of Vermont. More information about CAPCO can be obtained at http://www.capcoexcess.com/.

Please note that SIPC and Excess SIPC protects against lost, stolen, or missing securities or cash in the event the broker-dealer holding your assets goes out of business. SIPC or Excess SIPC protection does not protect against market losses from the rise and fall of investments.

Customer securities accounts carried by Interactive Brokers are protected up to $30 million (including up to $1 million for cash). The market value of your stocks, options, warrants, debt, and cash -- denominated in all currencies -- is covered by this insurance. Futures, options on futures, and single stock futures are not covered, but available cash will be swept from your futures account to your securities account periodically to take advantage of insurance coverage as much as possible. As with all securities firms, this insurance provides protection against failure of a broker-dealer, not against loss of market value of securities.

This protection is provided by the Securities Investor Protection Corporation (SIPC) and Lloyd’s of London insurers. SIPC provides the first $500,000 per customer (including up to $100,000 for cash). For customers who have received the full SIPC protection, the Lloyd’s policy provides up to an additional $29.5 million (including $900,000 for cash), subject to an aggregate limit of $150 million.

For the purpose of determining a customer account, accounts with like names and titles (e.g. Individual/John Smith and Individual/John Smith) are combined, but accounts with different titles are not (e.g. Individual/John Smith and IRA/John Smith).

SIPC is a non-profit, membership corporation funded by broker-dealers that are members of SIPC. For more information about SIPC and answers to frequently asked questions (such as how SIPC works, what is protected, how to file a claim, etc.), please refer to the following websites:

http://www.sipc.org/

Securities Investor Protection Corporation

805 15th Street, N.W. - Suite 800

Washington, D.C. 20005-2215

Telephone: (202) 371-8300

Facsimile: (202) 371-6728

SIPC and supplemental coverage do not protect against market loss.

Lloyd’s of London is a world leader in the insurance industry.