USA PATRIOT ACT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

ORDER EXECUTION INFORMATION

You can view our quarterly reports on order routing of equity and option orders by clicking here.
Upon written request, Wedbush Morgan Securities will provide the market center location to which your specific equity and/or option order was routed for execution, and/or a copy of our website information.

NASD PUBLIC DISCLOSURE HOTLINE

The National Association of Securities Dealers offers investors information and education through the NASD Public Disclosure Hotline at 800-289-9999 and NASD website at www.nasdr.com. Ask for the booklet "Investor Education and Protection".

PRIVACY STATEMENT

At Wedbush Morgan Securities, protection of your privacy has been a long-standing policy. We would like you to know what information we collect and how we use it. We collect certain "nonpublic personal information" through our new account form to determine how best to serve your investment needs and to determine your suitability for certain investments, and to satisfy the requirements of the regulatory agencies which govern the securities industry.

We may also collect nonpublic personal information about you from data we receive from non-affiliated third parties, including consumer and industry reporting agencies.

We do not disclose nonpublic personal information about you. Vendors, such as our data processor, are required to keep client information confidential and to use it only to provide services to Wedbush Morgan Securities.

We maintain physical and electronic safeguards to protect your nonpublic personal information. If you have any questions relating to our privacy policy, please contact your investment executive.

IMPORTANT DISCLOSURES FOR INVESTORS USING MARGIN

Wedbush Morgan Securities (WMS) is a registered broker-dealer and a member of the New York Stock Exchange ("NYSE"); consequently, WMS must adhere to NYSE margin rules and rules promulgated by the Securities & Exchange Commission ("SEC"). Margin represents the equity in your accounts. Account equity generally is the difference between the current market value of the securities in your account less the amount you owe. While it is not our practice to change our minimum margin requirements without prior notice, WMS can, at any given time and without advanced warning, increase the amount of equity a margin account must maintain.

The minimum equity requirements vary depending on different factors, such as liquidity and price stability of the collateral. If the equity in an account falls or is falling, WMS generally will issue a margin call for additional funds or collateral. In the event that you receive a margin call and are unable to meet it within the required timeframe, WMS will decide whether an extension of time can be granted. Failure to satisfy a demand for additional margin could result in the involuntary liquidation of collateral held in your account. The consequences of a forced liquidation may be a loss greater than the initial deposit you made into your margin account. In addition, if liquidation doesn't provide the funds necessary to meet the firm maintenance margin requirement, you must meet the deficiency. If your account holdings include SEC Rule 144 restricted or affiliate securities, such securities can be sold by WMS under the provisions of SEC Rule 144 and related SEC interpretations governing our rights as pledgee in the event of default.

Accordingly, we want to take this opportunity to help you better understand the liquidation provision of the Margin Agreement. This provision covers the liquidation rights WMS has over all assets held in your account as collateral for amounts due WMS for loans, short positions, losses, or other charges in your account.

Generally before liquidating assets held as collateral, it is our practice (but not our obligation) to attempt to give prior notification whenever additional funds are required in order to protect the loans or other amounts due us. However, prior notification is not always a viable option because of adverse conditions in the market. Consequently, we might take action to sell positions (or buy in short positions) in your accounts without any prior notification to you, or we might elect not to sell or buy in positions to avoid aggravating an unfavorable market situation. Frequently, concentrated positions or positions causing the margin call could be sold before the liquidation of other securities held in your accounts. WMS chooses which securities that serve as collateral for a margin account will be liquidated.

Please be aware that your margin agreement gives WMS unlimited discretion to take action to protect itself against losses. Involuntary liquidation of assets is a significant risk factor which you should seriously reconsider and reevaluate from time to time, because it might result in material losses to you or other unforeseen negative consequences. We suggest you monitor your accounts frequently and be alert to prevailing market conditions, especially respecting concentrated positions, so that you can take preventive action in avoiding involuntary liquidations.

While it is not our intention to discourage you from using margin for buying and selling securities or for borrowing to satisfy your other business and personal needs, we believe that it is in your self-interest to focus on the market risks associated with all margin loans in order for you to make an informed decision.

INTEREST ON CASH BALANCES IN SECURITIES ACCOUNTS

Wedbush Morgan Securities pays interest on free credit balances left on deposit with us for investment or reinvestment purposes, unless you advise us otherwise. The interest paid by us is a floating rate with periodic adjustments. Interest amounts of less than $2.50 per month will not be credited.

BUSINESS CONTINUITY PLAN INFORMATION

Wedbush Morgan Securities ("Wedbush Morgan") is committed to protecting the interests of clients at all times. Wedbush has developed a plan to provide for business continuity (Continuity Plan) in the event that business is disrupted. The Continuity Plan addresses all critical business processes, including providing clients with the ability to buy and/or sell and providing access to securities and funds.

The Continuity Plan addresses interruptions that are either localized or regional in scope, whether short or long term, regardless of the cause. The Continuity Plan is reviewed and tested annually and has been approved by senior management.

Wedbush Morgan maintains multiple sales offices that are geographically dispersed. In the event of a disruption that affects your local sales office, you will be able to contact other offices where our professionals will have access to your account information and can provide you the normal level of services. Contact information for each sales office is posted on the website under "Office Locations." You may also continue to view your account information and process your activity using ClientLink over the Internet.

Should a disruption occur at our headquarters in Los Angeles, California, some operational functions may be temporarily disrupted while staff relocate to predetermined alternative sites.

Wedbush Morgan has Information Technology services that are housed and operate concurrently in dual, geographically disperse sites. Either site is capable of supporting all critical functions should one site be disabled. Information is also backed up and stored at a third location at predetermined intervals. Any business disruption at Wedbush Morgan will not result in the loss of your account information, securities or money.

Your account information and transaction history are also stored at our data processing provider that has its own business continuity plan that is regularly tested. Your securities and funds are held at banks, custodians and other providers of services to the securities industry that each have their own successfully tested business continuity capabilities. These facilities are all located remotely from Wedbush Morgan's corporate data processing sites.

In the event that a disruption occurs that affects Wedbush Morgan, relevant information, including contact information, will be prominently displayed on the website.