Tejas Securities Group, Inc.

Business Continuity Statement

April 2008

As you may know, Tejas Securities Group, Inc. (TSG) and Ridge Clearing (Ridge) have an agreement in which Ridge may provide trade execution, clearing, and other related services for your brokerage account. In connection with these services, TSG is required to communicate its position on business continuity practices.

At TSG, we recognize how heavily you rely on our systems and services. We also recognize that the unexpected can and does occur; from simple situations to major outages. TSG wants you to know that we have an extensive plan in place to help safeguard your assets (along with Ridge) and protect vital account information in the event of a business disruption.

TSG has pre-established contingency and disaster recovery plans. Components of these plans are tested periodically to ensure effectiveness. TSG considers contingency planning to be an iterative process, requiring ongoing review to assess various risks and appropriate responses. As a result, this plan may change as necessary. Please feel free to contact TSG at any time to receive the most recent version of our Business Continuity Statement.

TSG Continuity Planning Guidelines
TSG has developed plans that include the ability to recover from situations including, but not limited to, unplanned evacuations, power outages, major water leaks, fire, loss of water, severe weather, and any facilities failures that may cause business interruptions. Our plan is designed to account for business interruptions of various lengths and scope and require that TSG is able to recover critical functions according to their time criticality. Key features of TSGs corporate disaster recovery planning include annual reviews of the following:

- Identification of all mission critical systems (and system backup and recovery for such systems)
- A review of financial and operational risks
- Alternate communications between TSG and Ridge
- Employee safety strategies and communications
- System and telecommunications accessibility
- Alternate physical site location and preparedness

TSG Contingency Planning and Business Recovery
TSG mitigates risks to reduce potential issues and impact. In the event of an outage, TSG has tested plans to support recovery of its critical business functions. In addition to following the guidelines stated above, TSGs recovery plans also include the following:

- Designated Contingency Site In the event of a site outage, we have established an alternate site which should reduce downtime in your ability to contact TSG or Ridge.
- Notification to Clients Procedures for notifying our clients have been established with TSG and Ridge to follow in the event of an outage. Notification will include length of outage, instructions for contacting TSG and support information (e.g., where to send faxes, issues pertaining to data transmissions and communications).
- Regulatory Reporting TSGs business contingency plan is designed to ensure that, regardless of the length of an outage, TSGs ability to continue to meet regulatory requirements, as mandated by the Securities and Exchange Commission and FINRA, would not be impacted.
- Communications with Regulators TSG will communicate with its regulatory authorities regarding the nature and extent of any significant outage at our location, as required by applicable law and regulation.
- Access to Your Funds A site outage at TSG would not impact your ability to have access to your available funds, as TSGs continuity plan is designed to ensure sustained service. However, your ability to trade your available funds may be impacted by market events outside of TSGs control, such as when the market was closed following the September 11 tragedy. In the event that TSG suffers from an outage, or unforeseen occurrence, customers can call the Ridge Customer Service Line at 800-677-1858.

If you have any questions, please contact TSG at 800-846-6803.