Top Questions at FBRDirect

Cash Accounts Trading
Check Writing
Customer Service
Dividend Reinvestment Program
FBRStreamer
IPO Accounts Friends and Family
IPOs and Secondary Offerings
IRA Accounts
Login Problems
Margin Account Information
Opening an Account
Options Trading
Privacy and Security
Restricted Stock Requirements
Special Programs
Trading Commissions
Update Address, Phone, Email
Wire Instructions
Withdrawals

Top Questions at FBRDirect 1. How do I make deposits into my account? Please make your check payable National Financial Services LLC, and mail or overnight your check to: Standard: FBRDirect PO BOX 9491 Arlington, VA 22219 Overnight: FBRDirect 1001 Nineteenth Street North Arlington, VA 22209 If you would like to wire money into your account, please send it to: Bank Name: JP Morgan Chase ABA number: 021 000 021 Address: 270 Park Avenue New York, NY 10017 813.432.7017 Account Number: 066196-221 Account Name: National Financial Services LLC FCT: <Your Account Name and Account Number (LN5-XXXXXX)> 2.  How do I request a check from my FBRDirect account?      Please download a check request form, complete it, and either fax it to      us at (703) 875-1338 or mail it to us at:       Standard:       FBRDirect       PO BOX 9491       Arlington, VA 22219      Overnight:      FBRDirect      1001 Nineteenth Street North      Arlington, VA 22209 3. What is your customer service call center's hours of operation? If you have any questions, please call us at 1.888.200.4350, option #2 for Customer Service. Our hours of operation are Monday through Friday, 8:30 AM to 5:00 PM Eastern Standard Time.   4. How do I transfer my account to fbrdirect.com? Please download the Account Transfer Form located on our website Forms page http://www.fbrdirect.com/forms.asp. Fill out the form and mail it to: Standard: FBRDirect PO BOX 9491 Arlington, VA 22219 Overnight: FBRDirect 1001 Nineteenth Street North Arlington, VA 22209 FBRDirect will initiate the Transfer from your Broker/Dealer or mutual fund company.   5. Is my account insured against loss? Your account is carried by National Financial Services LLC (NFS), a Fidelity Investments Company, who is a member of the Securities Investment Protection Corporation (SIPC). Securities carried in a National Financial Services LLC (NFS), a Fidelity Investments Company, account for customers introduced through FBRDirect receive up to $500,000 in protection. Protection of uninvested free cash is limited to $100,000.   6. How much money must be in my account before I can place a Conditional Offer (C.O.)? FBRDirect requires accounts to maintain a 12-month average minimum balance of $10,000 to remain open. If your account is open and is not restricted then you may place a C.O.   7. How does the Offering Marketplace work? The Offering Marketplace is a random computer generated process for the allocation of IPO's and Secondary Offerings. I.  If you are an accountholder, you will receive email alerts about our IPO's and Secondary Offerings. If you're interested in an offering please visit the Offering Marketplace at www.fbrdirect.com to read the Prospectus & enter your Conditional Offer (C.O.). II. Once the Offering is declared effective and priced, you will be notified by email. You will have up to 1 hour to Cancel your C.O. III.  If you do not cancel your C.O., you will be entered into our computer-generated random selection process. Neither the time at which you place your C.O. nor the number of shares requested will have any effect on the selection process. IV.  You will then receive an e-mail alert stating that you either received 'X' amounts of shares, or you have not receive any shares. If you are allocated shares, your C.O. will become a binding contract. The allocated shares will appear in your online trading account before the security begins to trade in the secondary market. V.  Shares received in an offering must be paid in cash in full within 3 Business Days from the Trade Date (the date you bought the shares). Purchases cannot be made with margin.   8. Can I place a C.O. for $25,000 worth of shares and I have only $10,000 in my account? Yes, but FBRDirect reviews all accounts before the Offering Marketplace Allocation process begins to verify if enough cash is available to cover the number of shares in your C.O. After this Risk Assessment review we place all C.O.'s into the computer-generated random selection process.   9. How do I research stocks that I'm interested in? FBR award winning Research Team covers over 500 companies. Follow this link to view some of our Research http://www.fbrdirect.com/Research/. Also, find News headlines on your favorite stocks by entering the stock symbols into our quote request box located on the left navigational bar of the webpage. Along with News headlines you have at your fingertip interactive charts, SEC filings, and a Profile of companies.   10. Do you have Retirement Planning? We have information on retirement planning under our Investor Education Page on the left navigational bar.   11. Do you have Stock Screening? Yes, again click on your News Headlines after entering a search for a quote. This will take you to our Stock Screener page. Top of page

Cash Accounts Trading   Your account will be charged with a Good Faith Violation if you purchase a security in a cash account and sell that security prior to paying for the purchase with settled funds. Three (3) GFVs in any twelve (12) month rolling period will result in your account being restricted to “Funds in Advance” of trading for a period of 90 days. If an account trades through a 90-day restriction, any resulting loss in the account will be the responsibility of the client and your account may be coded for "no more business." A purchase will not be considered “paid for” if unsettled proceeds from a sale are being used. The purchase will only be considered paid for if the proceeds from the sale have settled. Here is an example of the new policy: Account is long ABC worth $10,000 but holds no cash Monday Customer Sells ABC for $10,000 Monday Customer Buys XYZ for $10,000 Tuesday Customer Sells XYZ for $10,000 These transactions would result in the account being charged a GFV. If the customer had sold XYZ on Thursday, which is settlement of the sale of ABC, then the purchase of XYZ would have been “fully paid” and no violations would have occurred. Top of page

Check Writing 1. Is there a fee for Check Writing? Check Writing is free for all accounts that meet the minimum account balance.   2. What is the penalty for writing checks below the $500 minimum? The checking privilege of your FBRDirect account may be revoked for writing checks below the $500 minimum.   3. Will the checking function have margin access? Yes. A check will first deduct money from your cash account and then begin borrowing on margin up until the margin limit is reached.   4. How do I request free checking if I have already opened a FBRDirect account? Please download the check writing application form located on our Account Forms page http://www.fbrdirect.com/forms.asp Once complete, the application can be mailed to: Standard: FBRDirect PO BOX 9491 Arlington, VA 22219 Overnight: FBRDirect 1001 Nineteenth Street North Arlington, VA 22209 Upon approval, you should expect your first 100 FBRDirect checks in 10 business days.   5. Will I earn interest on cash in my checking account? Cash in your account will earn interest depending on the return of the money market fund you have chosen.   6. Where do I report lost/stolen checks or check disputes? If you are calling to report a lost or stolen check, please call 1.888.200.4350 to place a stop payment order. 7. What is the minimum amount for writing checks? Checks must be written for amounts of $500 or more. Top of page

Customer Service 1. What are your customer service call center's hours of operation? Our hours of operation are 8:30 a.m. to 5:00 p.m. (EST) MON-FRI.   2. I am not receiving FBRDirect IPO and Research alerts even though my email is working. Is there anything I can do about this? Some Internet Service Providers (ISP) have introduced anti- "spamming" devices to help you filter out unwanted e-mails. Unfortunately, the systems seem to be filtering out many of our important e-mails including Offering and Research Alerts. We have identified solutions for Hotmail and Yahoo mail users that will enable you to receive our e-mails. If you are a Yahoomail or Hotmail user click here. If you think your ISP, other than Yahoomail and Hotmail, maintains an anti- "spamming" device, please contact your ISP for directions that will enable you to receive our e-mails. Top of page

Dividend Reinvestment Program 1. What is the Dividend Reinvestment Program? The Dividend Reinvestment Program allows FBRDirect customers to automatically reinvest dividends and capital gains over $2.00 in your account. Shares of preferred stocks, bulletin board stocks and limited partnership are not eligible for this program.   2. How does it work? Dividend reinvestment orders will be purchased at the opening price on the Payable Date. You must be the owner of the security prior to the Record Date.   3. How do I Sign up for the Dividend Reinvestment Program? There is no fee to participate. If you already have an FBRDirect account and would like to sign up for the Dividend Reinvestment Program please contact customer service at 1.888.200.4350 option 2. Top of page

FBRStreamer 1. What is FBRStreamer? This is a desktop and wireless streaming quote portfolio tool. A tool like this is not offered by any other broker on the street. If Qualified, customers will get this product FREE and it includes data that no other product currently has (vibrating/sound volume and price alerts, time and sales data, market indicies, market and portfolio based news, level II data, active gainers/losers) For qualifications please click here.   2. What are the "non-Professional" exchange agreements and how do those apply to me? If you are only using delayed quotes this does not apply to you. If you are using realtime quotes you must agree to the exchange agreements before you are given access. Agreeing to these terms is simply a requirement by the exchanges to ensure proper use of the quotes being delivered to you.   3. Professional Use a) Why do I have to agree to the exchange agreements? You must complete separate exchange agreements if you are using this product for "business use". This will also result in higher exchange fees that you will be responsible for. This only applies if you want real-time quotes. YOU DO NOT NEED TO COMPLETE EXCHANGE AGREEMENTS IF YOU ARE SATISFIED WITH 15min DELAYED QUOTES. b) What are the professional exchange fees? For a complete fee schedule visit click here c) How do I know if I am a "professional"? You are a "professional" if you meet any one of the following criteria for the entire term of your subscription. You are subscribing on behalf of a firm, corporation, partnership, trust or association. You use the information in connection with any trade or business activities and not for personal investment. You plan to furnish the information to any other person(s). You are employed by a bank or an insurance company or an affiliate of either to perform functions related to securities or commodity futures investment or trading activity. d) The agreement is between YOU and the Exchanges, NOT FBRDirect. The information provided on exchange agreements may be examined by the exchanges. Professionals who identify themselves as non-professionals risk liability for all uncollected professional exchange fees, may have their data rights revoked and are in violation of federal law. You assume all liability for declaring status as a professional or non-professional and will be held accountable for all applicable penalties and / or exchange fees. Any questions regarding this service should be directed to customerservice@fbr.com   4. How does the trend work? The trend meter is based on the difference of the last recorded sale. If the last recorded sale was higher than the previous it is green, no change = yellow, red = down. It is not based on the size of the order. The trend moves right to left. Top of page

IPO Accounts Friends and Family 1. Is there a minimum to open a Friends and Family account? There is no account opening minimum for Friends and Family participants. You only need to send payment for your total purchase (shares requested times price) by the settlement date.   2. What is the minimum Conditional Offer (CO) I can enter for this IPO? The minimum number of shares or CO to enter is determined by the company and is listed under Step 3. The minimums are usually 50 to 100 shares per participant.   3. When is my payment due? Payment is due by settlement date listed on Step 4. Checks must be made payable to National Financial Services LLC   4. What are acceptable payments? A personal check is the best form of payment. We cannot accept third party checks, company checks, money orders, starter checks, checks drawn on foreign banks, or travelers checks.   5. How does the Offering Marketplace work? The Offering Marketplace is a random computer generated process for the allocation of IPOs. I. Once the Offering is declared effective and priced, you will be notified by email. You will have approx. 1 hour to Cancel your C.O. II. If you do not cancel your C.O., you will be entered into our computer-generated random selection process. III. You will then receive an e-mail alert stating that you received 'X' amounts of shares. Your C.O. is now a binding contract. The allocated shares will appear in your online trading account before the security begins to trade in the secondary market. IV. Shares received in an offering must be paid in cash in full within 3 Business Days from the Trade Date (the date you bought the shares). Purchases cannot be made with margin.   6. What is your customer service call center's hours of operation? If you have any questions, please call us at 1.888.200.4350, option #4 for Customer Service. Our hours of operation are Monday through Friday, 8:30 AM to 5:00 PM Eastern Standard Time. Top of page

IPOs and Secondary Offerings 1. Where can I find a list of current and previous IPOs and Secondary Offerings? You can find a list of current and upcoming offerings at www.fbrdirect.com/OMHome/OMDefault.asp.   2. What is the difference between a Conditional Offer (C.O.) and an Indication of Interest? An indication of interest is merely an expression by an investor that he or she is inclined, after effectiveness and pricing, to accept a company’s and underwriter’s offer to sell the company’s securities. Unlike a C.O., the submission of an indication of interest involves no obligation or commitment of any kind on the part of the investor. After effectiveness and pricing, an investor must affirmatively accept the company’s and underwriter’s offer to sell. By contrast, a C.O. is an offer on the part of the investor to purchase a security offered by a company, subject to four conditions: 1. The registration statement for the offering is declared effective by the Securities and Exchange Commission (SEC), 2. the offering is priced within the expected price range, 3. the investor is allocated shares in the offering, and 4. the C.O. has not been withdrawn by the investor. A C.O. becomes a legally binding contract when it is accepted by FBRDirect. FBRDirect may accept a C.O. at any time after FBRDirect has provided notice to the investor of the offering price, number of shares allocated, and the opportunity to cancel the C.O. prior to FBRDirect's e-mail acceptance of the investor's C.O. (which is typically at least one hour after the issue is priced and declared effective.)   3. How do I acquire a prospectus for a public offering? A prospectus for current offerings or completed transactions, if available, can be viewed by first clicking on the Offering MarketplaceSM and then clicking on the offering pipeline menu button on the left-hand side of the page. Alternatively, you can obtain a prospectus by contacting our office at FBRDirect, Prospectus Department, 1001 Nineteenth Street North, Arlington, VA 22209 (phone: 703.312.9588).   4. How many shares does FBRDirect receive in an offering? FBRDirect has an exclusive agreement with its affiliate under which FBR & Co., Inc. allocates up to 20% of its allocation to FBRDirect for distribution to FBRDirect's customers. The role FBR & Co. plays in the offering will have direct bearing on the amount of shares it receives in a public offering, and consequently, the amount of shares FBRDirect receives from it to distribute to its customers. Typically, the lead manager underwriter will receive the most shares to distribute. The co-manager underwriters will receive a lesser amounts than the lead manager. The co-managers listed first will receive more shares than the co-manager listed last. The members of the underwriting syndicate who are not among the lead or co managers will receive the smallest amount of shares. In fact, members of the syndicate often receive no allocation at all. The role that FBR & Co will play in a particular offering will be listed on the tombstone for the offering on the Offering Marketplace and may also be listed in the prospectus if FBR & Co. is a lead manager or a co-manager.   5. Are there any financial restrictions for online investment in public offerings? To invest in a public offering, an online investor must open an account with an initial deposit of $10,000 cash or equivalent securities or $2,500 for an IRA. In addition, the account holder must maintain a minimum of $10,000 of equity in the account except for IRAs, which must maintain a $2,500 minimum.   6. Are there any holding periods for the stock I receive in an IPO? Am I penalized for flipping? There are no holding periods for the stock you receive in an IPO. FBRDirect customers are allowed to sell the fully paid for stock they receive in an IPO from their account at any time without incurring penalties. FBRDirect does not maintain a policy against flipping fully paid for securities.   7. Is the random selection process used for all shares distributed through FBRDirect? FBRDirect may occasionally, as a service to an issuer, act as a distribution agent for that issuer’s Friends & Family and Affinity Partner programs. The shares that are set aside for these programs are part of the issuer’s own allocation and as such are allocated at the issuer’s direction. Therefore, these shares do not necessarily go through the computer generated random selection process.   8. How does the Allocation Process work through Offering Marketplace? The Offering Marketplace employs a computer-generated random selection process to allocate shares in public offerings to the broadest group of account holders possible. FBRDirect does not give priority to conditional offers based on the share size of the conditional offer. For example, a conditional offer to purchase 1000 shares in a public offering is not favored in the Offering MarketPlace over another accountholder's conditional offer to purchase 100 shares in that offering. FBRDirect does not give priority to conditional offers based on the time they are received. For example, a conditional offer received in the Offering Marketplace at 9:01 am EST is not favored over another accountholder's conditional offer received in the offering marketplace at 9:15 am EST. FBRDirect may set either a minimum or a maximum number of shares that any eligible accountholder is allowed to receive in any particular offering. If the demand for shares in the offering exceed the amount FBRDirect has to allocate through the offering marketplace; allocations will typically be 100 shares to each account that receives allocations. As many conditional offers as possible will be filled at this minimum allocation before any account that placed conditional offers for a larger number receive additional shares. FBRDirect may set limits on the amount or the proportion of investments you can make in speculative securities including IPOs. FBRDirect reserves the right to allocate shares on any basis or to change the method of allocating shares at any time without prior notice.   9. Why can't I place a conditional offer for whatever price range I want in an IPO? The price range represents one of the essential elements of your conditional offer, which may ultimately become a binding contract if it is accepted by FBRDirect. Industry regulation requires that conditional offers be made only within an expected price range. In essence, an issuer is only proposing to sell securities at prices within the estimated price range. For example, ABC Co may offer securities in its IPO at a price between $10 and $12. An accountholder placing a conditional offer may only offer to buy the securities offered at specified price range. For these reasons, account holders placing conditional offers for IPOs must reconfirm their conditional offer with each change in the price range or if the final price is outside of the stated estimated price range. In the case of a secondary offering, the prospectus will include the closing price of the security on a referenced date. The price of the security will move during the time the prospectus is published and the offering is priced. Persons making a conditional offer may do so for whatever price range they desire because trading data about the security is available so that investors may make an informed decision about what they are willing to pay for the security.   10. Why do I need to keep checking the website and my email during the Offering Marketplace process? Changes to the terms of a deal can sometimes occur during the public offering process and account holders must reconfirm their conditional offer with each of these changes. On occasion, an amended prospectus will be prepared that contains material changes to the information provided in the preliminary prospectus. Another example involves pricing the issue. Issuers and their underwriters work together to price securities based on numerous factors like the trading price of comparable securities in an industry, the demand for the offering and whether the market is rising or falling. Issuers and underwriters will consider the price range in the days before an offering in relation to these factors and it is not uncommon for them to change the price range and ultimately price the offering outside of the expected price range in response to these factors. Industry regulations require investors to reconfirm their conditional offering for an IPO or Secondary Offering with each of these changes. FBRDirect is not allowed to take conditional offers outside the published estimated price range. While we try to keep the Offering Marketplace process as simple as possible, the nature of securities offerings requires investors to monitor their email and the site in the days before an offering is declared effective and priced. Top of page

IRA Accounts Please consult with your financial and/or tax advisor for information specific to your own circumstances. Decisions made regarding IRA accounts can result in tax consequences.   Traditional IRA 1. Who can contribute to a Traditional IRA and how much? A Traditional IRA can be opened by anyone with earned income from employment that is under the age of 70 ½. The maximum contribution for 2008 is $5,000 ($6000 if 50 yrs or older) or 100% of your earned income, whichever is less.   3. Is my spouse eligible for an IRA? Yes, a non-working spouse is eligible to open an IRA with the same maximum contribution limit for 2008 of $5,000 ($6000 if 50 yrs or older).   Rollover IRA 1. What is a Rollover IRA? A Rollover IRA is an Individual Retirement plan that protects the tax-deferred status of your account and which is designed to receive money from a 401(k) plan or other qualified plan.   2. I am leaving my job or have just retired. What can I do with my company retirement money? If you’re about to receive a payout from your employer’s retirement plan, you need to make an informed decision about placing your funds where taxes and penalties will not erode them. One place to consider placing your funds is in an IRA Rollover.   3. How much time do you have to place funds in a Rollover IRA once you take a distribution form a 401(k) or other qualified plan? You have 60 days to rollover funds into a Rollover IRA to avoid taxes and penalties.   Roth IRA 1. Who is eligible to contribute to a Roth IRA and how much? Unlike the Traditional IRA, there is no 70 ½ age limit on making contributions. You simply need to have earned income equal to the amount you contribute, up to a maximum of $5000 ($10,000 combined for spouses) per year. There are income thresholds that may reduce the amount you can contribute.   2. Can I invest in both a Traditional and Roth IRA? Yes, as long as the amount of your contributions does not exceed $5000. For example, if you were eligible to make a $2000 deductible contribution to a Traditional IRA, you can also make a $3000 non-deductible contribution to a Traditional or Roth IRA.   3. Do I have to convert my entire Traditional IRA to a Roth IRA? No, partial conversions are allowed, as are conversions from a number of different Traditional IRA’s. You may wish to make a partial conversion if you do not want to face the tax expense of a full conversion in one tax year.   4. Can I convert my SEP or SIMPLE IRA to a Roth IRA? Yes, SEP and SIMPLE IRAs can now be converted directly to a Roth IRA. In the case of the SIMPLE IRA, the 2-year holding period must be met before converting.   5. Are contributions to a Roth IRA ever deductible? No, contributions to Roth IRAs are never deductible.   Coverdell Education Savings Account (formerly Education IRA) 1. What is an Education Savings Account? An ESA is an investment tool created for the purpose of paying for “qualified education expenses”. Upon withdrawn for a “qualified education expense” the contributions and earnings are tax-free. See IRS Publication 970 for rules governing “qualified education expenses”.   2. How much can someone contribute to an Education Savings Account (ESA)? Each child can receive a total of $2,000 per year from all sources. As with the Roth IRA, there are income thresholds that may reduce the amount one can contribute.   3. Who can contribute to an Education Savings Account? Essentially “almost anyone”. The ESA does not require that the contributor be a family member as long as the individual has an adjusted gross income less than $110,000 ($220,000 in case of a joint return). Making it is possible for more than one person to contribute for the same child. Therefore, a coordinated effort should be encouraged to avoid excess.   4. Can the remaining funds in an ESA remain in the account, until the retirement age of 59 1/2 like other Individual Retirement accounts? No, the funds in a ESA for the child must be distributed by the time the child turns 30 years of age. Otherwise, all investment earnings are taxed as ordinary income and subject to a 10% tax penalty. You can also roll the funds to another family member who is eligible for the Educational IRA.  Contributions can be made to a beneficiary's ESA up to 18 years of age.   Self Employed Pension Plan (SEP) 1. What is a SEP IRA? SEP IRA plans are used by sole-proprietors or small business owners for additional retirement savings, much like a large company would have a 401(k) or another qualified plan.   2. If you have a SEP IRA can you also invest into another type of IRA? Yes, you can have a SEP IRA with a Traditional or Roth IRA.   3. Can employees contribute to the SEP IRA? No, SEP plans do not allow for employee deferrals. The employer has discretion whether or not to make contributions. They may contribute up to 15% of each employee’s total compensation.   4. How are SEP IRA distributions taxed? The SEP IRAs are taxed like Traditional IRAs at distribution, as ordinary income.   SIMPLE IRA 1. Who is eligible for a SIMPLE IRA? They are generally available to both for-profit and non-profit employers have no more than 100 employees and who do not provide benefits under another qualified retirement plan.   2. What are the contribution limits for SIMPLE IRA’s? Employees may defer up the $10,500 each year. Employers provide either a match of the employee’s compensation up to 3% or 2% on a non-elective contribution.   3. Can SIMPLE IRA contributions be tax-deductible? Yes, SIMPLE IRA contributions can be tax-deductible to employees. (See your tax advisor to determine the amount you will be eligible to deduct.)   4. Can you, as an employer, have another qualified retirement plan and a SIMPLE IRA? No, you will have to freeze participation in the other qualified retirement plan before you can begin participation in the SIMPLE IRA.   5. Can you rollover your SIMPLE IRA at any time? No, there is a 2-year lock out period from the time the account is opened before you will be able to rollover the SIMPLE into another Qualified Plan.   6. Can I contribute to another IRA if I am a participant in a SIMPLE plan? Yes, a contribution is still allowed. However, deductibility in a Traditional IRA may be effected. * Please consult with your financial and/or tax advisors for information specific to your own circumstances. Top of page

Login Problems 1. Why do I receive a message that says that I have "exceeded the amount of login attempts," and that I can't log in? For security purposes, FBRDirect permits a customer a maximum of three consecutive login attempts to our site. If you are using the incorrect password for your account, you will be denied access.   2. What do I do if I forget my password? Please call the Investor Services Center at 1.888.200.4350 and select option #2 for assistance.   3. Why can’t I log in to the site even though I am using correct Account Number and Password? If you are not able to log in to our site and you are using the correct Login ID and password, then we may be experiencing some technical difficulty. Please call the Investors Services Center at 1.888.200.4350 and select option #2 for assistance.   4. Which browsers can I use to access FBRDirect? Our site is best viewed with Microsoft Internet Explorer browsers listed at the bottom of this page.   5. Still Having Trouble? ... Contact Us If you are still not able to log in to our site, please call the Investors Services Center at 1.888.200.4350 and select option #2 for assistance. Top of page

Margin Account Information MARGIN INELIGIBLE ACCOUNTS Margin purchases may not be made for accounts held under the Uniform Gifts (or Transfers) to minors accounts UGMA/UTMA. Most accounts that are estate accounts (all parties deceased) are restricted from placing new margin transactions. Fiduciary accounts are also barred, unless there is specific authorization to engage in such trading. MARGIN ELIGIBLE SECURITIES Only certain securities may be purchased on margin. Securities that are marginable under Section 220.17 of Regulation T are defined as: Any "listed" securities, i.e., those traded on a national securities exchange, Any over the counter security designated as a National Market System (NMS) security, Securities traded over the counter and on the Federal Reserve List of Marginable OTC Stocks and List of Foreign Margin Stocks. NEW ISSUES AND MARGIN The SEC has ruled that credit cannot be extended by a member of the original selling group of brokers on a new issue until 30 days after the selling syndicate has closed. The purpose of this ruling is to prevent underwriting brokerage firms from being tempted to push more of a new issue that is selling poorly onto clients by placing them in a margin account. Thus, brokers cannot allow customers to buy or otherwise finance new issues on margin. The same rule applied to closed-end investment companies (commonly known as closed-end mutual funds--the ones usually traded on an exchange). Thirty days after the syndicate has closed, they are eligible for margin as long as they are either listed on a national exchange or listed on the Federal Reserve List of Marginable OTC Stocks. Mutual funds purchased directly from the fund itself are considered by the SEC to be a continuing new issue. As such, if they were otherwise qualified, a customer could borrow 50% against the securities once they have been held for 30 days. However, if the customer purchases the mutual fund shares somewhere other than the fund distributor (i.e.: from a broker) the shares are immediately eligible for margin and credit extension. Top of page

Opening an Account 1. Which account types can be opened online? Individual, joint and custodial account applications can be opened electronically. To request other account application information, please contact our customer service hotline at 1.888.200.4350 (option 2).   2. What is the minimum amount to open an online account? To open an online account, you must make an initial deposit of $10,000 cash or equivalent securities or $2,500 for IRA. In addition, you must maintain a minimum of $10,000 of equity in your account except for IRAs, which must maintain a $2,500 minimum.   3. What forms must be completed to set up an online account? To open an account online, you need to complete and sign the following documents: 1) an account application form . To initiate this process, your online account application form can be completed and submitted electronically. However, you also must print hard copies of these three forms and mail the completed, signed documents to FBRDirect, 1001 Nineteenth Street North, Arlington, VA 22209. We will notify you by mail as to the status of your account. If your account is approved, we will assign you an account number and Login ID.   4. What is the process for transferring an account to FBRDirect? To transfer an account to FBRDirect, you need to complete and sign the following documents: 1) an account transfer form, 2) an account application form and 3) the most recent statement from your current brokerage account. In addition, if the transfer is from an individual to a joint account (or vice versa), you must submit a letter of authorization from all relevant account parties.   5. How do I open a joint account? To open a joint account electronically, click on "Open an Account" and then select "Joint." To apply by mail, you can contact our customer service hotline at 1.888.200.4350 (option 2) and request a joint account application form. We offer three types of joint ownership: 1) joint tenants with rights of survivorship, 2) community property and 3) tenants in common. If you do not choose one of these, the account will be registered under joint tenants with rights of survivorship.   6. How do I open a custodial account? To open a custodial account electronically, you click on "Open an Account" and then select "Custodian." To apply by mail, you can contact our customer service hotline at 1.888.200.4350 (option 2) and request a custodian account application form.   7. If I'm unable to print the application forms, what is the alternative procedure for establishing an account? If printing problems occur, you can call our customer service hotline at 1.888.200.4350 (option 2) and we will mail the appropriate application forms to you.   8. How do I transfer my current account to an FBRDirect account? You may transfer your current account to an FBRDirect account as part of the account application process. If you have already completed the online account application, you can call our customer service hotline at 1.888.200.4350 (option 2) and we will mail an account transfer form to you or go to the forms page to download the form (ACAT).   9. After I mail my account transfer form to FBRDirect, how long does it take to transfer my account? The transfer of your account takes approximately 10 business days.   10. When setting up an account or depositing more money into my account, whose name do I write on the check? You make the check payable to National Financial Services LLC   11. When I transfer stock certificates from my current account to FBRDirect, who holds the securities? Our clearing agent, National Financial Services LLC (NFS), a Fidelity Investments Company, holds the stock certificates.   12. Where do I send payments for transactions or additional deposits for my existing FBRDirect account? To add money to your FBRDirect account please use the Deposit Slip.  Please mail your deposit  along with your deposit slip to: Standard: FBRDirect PO BOX 9491 Arlington, VA 22219 Overnight: FBRDirect 1001 Nineteenth Street North Arlington, VA 22209 Checks must be made payable to National Financial Services LLC and must include your FBRDirect account number (LN5-XXXXXX).   13. If you want to wire money to establish an account or add money to an existing account, where do you send it? This option is available for adding money to an existing account only - you cannot wire money to open an account. To add money to your account, you can send a wire transaction to our financial deposit institution with the following information: Bank Name: JP Morgan Chase ABA number: 021 000 021 Address: 270 Park Avenue New York, NY 10017 813.432.7017 Account Number: 066196-221 Account Name: National Financial Services LLC FCT: <Your Account Name and Account Number (LN5-XXXXXX)>   14. What is the holding period for checks? All checks have a 5-day holding period. Customers can transact trades during this time; however, they cannot withdraw funds.   15. What is the procedure to have money wired directly to my financial institution or to have a check mailed to me? You need to send a fax to 703-875-1338 and include your account number, amount requested, and your instructions and signature.   16. What are the interest rates on the cash balance in an account and/or on a margin account? This information fluctuates daily based on market conditions. To receive current information regarding these issues, please contact FBRDirect at 1.888.200.4350 (option 2).   17. What is the cost to register and ship securities to a third-party name? A $45 fee is charged for the shipment of securities to third-party names. However, there is no charge for shipment to the same name as listed on the account.   18. How do I deposit a stock certificate into my FBRDirect account? To deposit a certificate into your FBRDirect account you first need to sign over the certificate to National Financial Services LLC (NFS), a Fidelity Investments Company.   In order to do this write "National Financial Services LLC" where it asks for the assignee,  date and sign the certificate EXACTLY as your name appears on the front of the certificate.  If you have any questions about this please call our customer service hotline at 1.888.200.4350 and press option 2. Top of page

Options Trading 1. Can I trade options? Yes. Please visit our options page for more information.   2. What is the minimum balance needed to trade options? You must maintain a $20,000 balance and be approved by our options department to begin trading options. Please visit our options page for more information.   3. What type of Option Strategies do you currently support? We support covered calls, puts, and spread strategies. More information is available on our options page.   4. Can I trade options in my IRA account? Yes. You can do limited options strategies in your IRA account and must complete our Options Exception Letter for Purchasing Options in IRA Accounts. Top of page

Privacy and Security 1. About Security and Privacy FBRDirect employs a variety of techniques and technologies to ensure that our customer account security and privacy are maintained. The major security measures that we use are: Maximum Login Attempts, Encryption and Data Security, Unique Accounts/Passwords, and Timeouts. The securities in your account are protected through SIPC and private insurance coverage. Of course, both the customer and FBRDirect have a role in maintaining the security of an account and privacy of account information through the way we handle account information.   2. Maximum Login Attempts You may try up to four consecutive login attempts to log in to our site. If you are not able to log in to our site after four consecutive attempts, you must close and then reopen your browser before you can make another attempt to log in to our site. This measure limits the ability of others to guess passwords and attempt an unauthorized login to our site. Additionally, the login screen automatically clears all password information upon submission.   3. Encryption and Data Security FBRDirect uses a complex mathematical algorithm to transform customer data into a format unreadable to unauthorized parties. This industry standard practice is used to limit 3rd party eavesdropping, tampering, or forgery over the World Wide Web. FBRDirect uses Secure Socket Layering (SSL) with a 128-bit key encryption algorithm to encrypt information between our servers and a customer’s browser. This technology is supported by both Netscape Navigator 4.6 and above and Microsoft Internet Explorer 5.0 and above. Data servers are kept in a secure data center with locked cages and armed guards. The information is only accessible by authorized personnel.   4. Unique Accounts/Passwords FBRDirect provides customers with a unique Account number and Password combination to access the Secure Trading system or to view personal financial data. This allows FBRDirect to validate customers and monitor account activity.   5. Timeouts The secure areas of FBRDirect monitors customer activity from the time of initial login. If a customer is inactive for an extended period, FBRDirect will log the customer off. This procedure limits unauthorized activity on an open customer session.   6. Customer Account Protection Securities in FBRDirect accounts carried at National Financial Services LLC (NFS), a Fidelity Investments Company receive up to $500,000 in protection through the Securities Investor Protection Corporation (. Of that total, cash balances are covered up to $100,000. In addition, our clearing agent has obtained private insurance to provide additional coverage. However, neither SIPC nor private insurance protects you from declines in market value and other transaction related losses. SIPC)   7. The Customer's Role Your account security is dependent upon your protection of the Account number and Password. You are responsible for keeping these items confidential; if you believe that any one of these items has been compromised, please contact us so that we may take steps to protect your account. E-mail you send to FBRDirect through the Internet may not be secure. Therefore, you should not send FBRDirect e-mail that contains confidential information including account numbers, social security numbers and passwords. Additionally, it is important that you always Log Off from the FBRDirect secure areas to ensure secure exiting. 8. FBRDirect's Role FBRDirect supports each client's right to privacy on the Internet. FBRDirect employs security protections for electronic communications and restricts the use of personal and financial customer information received electronically. This is achieved by the means described above as well as the placement of such information on a secure Web site. While FBRDirect offers the opportunity to its Web site visitors to link to the Web pages of third parties, FBRDirect is not responsible for the privacy practices or the content of such Web sites. Information transmitted over the Internet may not be entirely secure. FBRDirect, its affiliates and agents disclaim all liability for any misuse of the information conveyed via electronic communication. FBRDirect collects only the information necessary to provide you with financial products and services and serve your financial needs. FBRDirect will not sell any customer information to anyone or disclose customer information to marketing companies. FBRDirect will only share or disclose customer information within the FBR family of related companies, to certain third parties we may contract with to perform services for us, at the accountholder’s direction and to fulfill our legal obligations. For more complete information including an accountholder’s right to opt-out of certain information sharing among the FBR family of related companies, please read our Privacy Policy. Top of page

Restricted Stock Requirements The table below can be used to determine paperwork to be submitted to FBRDirect:   Type of Transaction Required Holding Period Volume Limitations Filing of Form 144 with SEC Forms Required 144 Control Stock Sale None Greater of: 1% of outstanding shares, or Average weekly trading volume for previous four calendar weeks unless an OTC security, to which only the 1% rule applies Required. Form is valid for 90 days from filing date. Must be in mail to SEC when order is placed. Form 144 144 Control/Restricted Securities Seller's Certification 144/145 Control/Restricted Securities Questionnaire 144 Broker's Representation Letter 144 Restricted Stock Sale 1 year (If acquirer takes by purchase, the one-year period does not begin until the full purchase price or other consideration is paid by the acquirer) Same as above Same as above Form 144 144 Control/Restricted Securities Seller's Certification 144/145 Control/Restricted Securities Questionnaire 144 Broker's Representation Letter 144(k) Sale = Termination of certain restrictions on sales of restricted securities by persons other than affiliates (not available for affiliates) 2 years No limits Not required 144 Control/Restricted Securities Seller's Certification 144/145 Control/Restricted Securities Questionnaire 144 Broker's Representation Letter 145 Sale = Reclassification of securities, mergers, consolidations and acquisitions of assets (non-affiliate shareholders do not need forms) None Same as 144 during first year No limits after first year for non-affiliates Not required (unless affiliate of acquirer) 144 Control/Restricted Securities Seller's Certification Form 144 (affiliates/acquirer only) 144/145 Control/Restricted Securities Questionnaire 144 Broker's Representation Letter 701(g)(3) Sale = Exemption that is limited to benefit/compensation plan contracts After IPO 90 days after issuer becomes publicly traded company No limits after first year for non-affiliates* Not required (unless an affiliate) 701 Control/Restricted Securities Seller's Certification 144/145 Control/Restricted Securities Questionnaire Form 144 (affiliates/acquirer only) 144 Broker's Representation Letter Shelf Registration (S1, S-3 or S-8) Sale None Number of shares and selling shareholders are specified in prospectus Not required Copy of prospectus or date prospectus was filed Control or Restricted Loans None for Control 1 year for Restricted Securities Same as 144 Not required 2 Pledge Agreements Form 144 (signed) not dated 144/145 Control/Restricted Securities Questionnaire Top of page