YOUR RIGHTS

Disclosures to you. Under penalty of federal law your brokerage firm must tell you the following information at two different times-before you agree to buy or sell a penny stock, and after the trade, by written confirmation:

        ● ●     The bid and offer price quotes for penny stock, and the number of shares to which the quoted prices apply. The bid and offer

                 quotes are the wholesale prices at which the dealers trade among themselves. These prices give you an idea of the market value of the

                 stock. The dealer must tell you these price quotes if they appear on an automated quotation system approved by the SEC. If not, the

                 dealer must use its own quotes or trade prices. You should calculate the spread, the difference between the bid and offer quotes, to

                help decide if buying the stock is a good investment.

        A lack of quotes may mean that the market among dealers is not active. It thus may be difficult to resell the stock. You also should be aware that the actual price charged to you for the stock may differ from the price quoted to you for 100 shares. You should therefore determine, before you agree to a purchase, what the actual sales price (before the markup) will be for the exact number of shares you want to buy.

        ● ●     The brokerage firm's compensation for the trade. A markup is the amount a dealer adds to the wholesale offer price of the stock

                 and a markdown is the amount it subtracts from the wholesale bid price of the stock as compensation. A markup/markdown usually

                 serves the same role as a broker's commission on a trade. Most of the firms in the penny stock market will be dealers, not brokers.

        ● ●     The compensation received by the brokerage firm's salesperson for the trade. The brokerage firm must disclosure to you, as a total

                 sum, the cash compensation of your salesperson for the trade that is known at the time of the trade. The firm must describe in the written

                 confirmation the nature of any other compensation of your salesperson that is unknown at the time of the trade.

In addition to the items listed above, your brokerage firm must send to you:

        ● ●     Monthly account statement. In general your brokerage firm must send you a monthly statement that gives an estimate of the value

                of each penny stock in your account, if there is enough information to make an estimate. If the firm has not bought or sold any penny

                stocks for your account for six months, it can provide these statements every three months.

        ● ●     A written statement of your financial situation and investment goals. In general, unless you have had an account with your

                brokerage firm for more than one year, or you have previously bought three different penny stocks from that firm, your brokerage firm

               must send you a written statement for you to sign that accurately describes your financial situation, your investment experience, and your

               investment goals, and that contains a statement of why your firm decided that penny stocks are a suitable investment for you. The firm

               also must get your written consent to buy the penny stock.

Legal remedies. If penny stocks are sold to you in violation of your rights listed above, or other federal or state securities laws, you may be able to cancel your purchase and get your money back. If the stocks are sold in a fraudulent manner, you may be able to sue the persons and firms that caused the fraud for damages. If you have signed an arbitration agreement, however, you may have to pursue your claim through arbitration. You may wish to contact an attorney. The SEC is not authorized to represent individuals in private litigation.

However, to protect yourself and other investors, you should report any violations of your brokerage firm's duties listed above and other securities laws to the SEC, the NASD, or your state securities administrator at the telephone numbers on the first page of this document. These bodies have the power to stop fraudulent and abusive activity of salesperson and firms engaged in the securities business. Or you can write to the SEC at 450 Fifth St., NW., Washington, DC 20549; the NASD at 1735 K Street, NW., Washington, DC 20006; or NASAA at 555 New Jersey Avenue, NW., Suite 750, Washington, DC 20001. NASAA will give you the telephone number of your state's securities agency. If there is any disciplinary record of a person or a firm, the NASD, NASAA, or your state securities regulator will send you this information if you ask for it.