Disclosures & Legal Information

Investment services and securities products offered through H&R Block Financial Advisors, Inc., member NYSE/SIPC a registered broker-dealer and subsidiary of H&R Block, Inc. Annuities and Life Insurance products are provided by various Insurance companies and are offered through H&R Block Financial Advisors Inc. Insurance products in the state of Massachusetts are offered through H&R Block Insurance Agency of Massachusetts Inc. Tax and mortgage services are offered through subsidiaries of H&R Block Services, Inc. H&R Block, Inc. and H&R Block Services, Inc. are not registered broker-dealers.

• Not a deposit
• Not FDIC insured
• Not insured by any federal government agency
• Not guaranteed by H&R Block Bank or any other bank
• May go down in value

Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours. Please ask us questions to make sure you understand your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. We are paid by both you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits, and our salespersons' compensation, may vary by product and over time. If you would like to discuss the differences between brokerage and advisory accounts, contact our Investor Center at 1-866-295-7912.

Trade executions, system availability and access to account services may be limited or unavailable due to market conditions, system performances or for other reasons. If this should occur, please contact your financial advisor or our Investor Center at 1-866-295-7912.

All transactions are final. The information disclosed to H&R Block Financial Advisors confirms and statements are deemed acknowledged by you and correct unless H&R Block Financial Advisors is notified in writing within 10 days of receipt. You may use this Service to receive additional copies of such information.

Business Continuity
H&R Block Financial Advisors has developed a business continuity plan covering its critical systems and locations in the event a disaster or system failure. Additionally, H&R Block Financial Advisors has received the business continuity plans from our critical service providers. The goal is to provide prompt recovery in the event of a disaster or systems failure.

Our business continuity plan provides for continued service in the event a branch office is unable to conduct business. In the event of a branch outage, you may contact 1-866-295-7912 to assist you with your questions and to continue providing you full financial services. Our critical computer hardware is redundant which allows for uninterrupted customer service in the event one machine was to fail. H&R Block Financial Advisors has taken precautions, which allow us to continue to run our computer systems in the event of a disruption of power. H&R Block Financial Advisors has an offsite location that we anticipate will be functional in 24 hours in the event of a disaster at our corporate headquarters. Daily tape backups of our back office systems occur nightly and are sent to an offsite location. We have contracted with an outside vendor to provide us with system recovery in the event of a disaster at H&R Block Financial Advisors corporate headquarters. In the event H&R Block Financial Advisors has a system failure with its trading systems, we have the capability to route orders to other firms to execute your orders. H&R Block Financial Advisors regularly reviews and tests its business continuity plans. These plans are subject to change. In the event of a change in our business continuity plans, we will promptly update the information on our website at www.hrblock.com. You may also request the current business continuity plan disclosure by writing:

H&R Block Financial Advisors
Investor Center
4400 Blue Parkway
Kansas City, MO 64130

Customer Limit Order Disclosure
H&R Block Financial Advisors reserves the right to decline to accept and may reject any limit orders in your account. H&R Block Financial Advisors reserves the right to negotiate terms and conditions on limit orders for institutional accounts and institution-sized limit orders. An institution-sized limit order is defined as a customer limit order for 10,000 shares or more, which totals $100,000 or more.

H&R Block Financial Advisors-FDIC Insured Deposits
If you select to have your free credit balances invested in the H&R Block Financial Advisors-FDIC Insured Deposits Account, your money will be automatically invested into an interest bearing FDIC-insured money market account. Each deposit is solely the obligation of the depositor's bank. H&R Block Financial Advisors and Reserve Management Corporation ("Reserve") act only as agents for you, the depositor. Reserve is paid a comprehensive fee not to exceed 2% of the gross interest paid by the bank per annum of the average daily net assets of the account. H&R Block Financial Advisors receives compensation from Reserve for providing administrative, clerical, recordkeeping and bookkeeping services. This amount is deducted prior to posting of interest to your H&R Block Financial Advisors account. The rate of interest you receive will fluctuate daily and is determined by H&R Block Financial Advisors based on current market conditions. For current rate information, please visit our web site at www.hrblock.com or call 1-800-HRBLOCK.

Handling of Call Notices
All securities held be H&R Block Financial Advisors for you are not registered in your name, are commingled with identical securities being held for other customers. In the event any securities so held are "called" by the issuer, we will determine the beneficial ownership thereof by lottery.

Investment Companies/Insurance Products
In addition to loads and 12b-1 fees, as disclosed in the prospectus, H&R Block Financial Advisors receives compensation from mutual fund companies and insurance providers ("providers") which is used toward the training of our financial advisors, customer seminars and for participation in various H&R Block Financial Advisors educational conferences. The amount of compensation paid to a financial advisor on a product offered by any of the providers is available upon written request.

Margin Customers
In return for your extension or maintenance of credit, you acknowledge that the securities in your margin account, together with all attendant rights of ownership, may be lent to you or lent out to others. In connection with such loans, H&R Block Financial Advisors may receive and retain certain benefits to which you will not be entitled. Securities purchased on margin are H&R Block Financial Advisors collateral for the loan to you. If supporting your loan, and, as a result, H&R Block Financial Advisors can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held at H&R Block Financial Advisors, in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks included the following:

• You can lose more funds than you deposit in the margin account.
• H&R Block Financial Advisors can force the sale of securities or other assets in your account(s).
• H&R Block Financial Advisors can sell your securities or other assets without contacting you.
• You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
• H&R Block Financial Advisors can increase the maintenance requirements at any time and is not required to provide you with advance written notice.
• You are not entitled to an extension of time on a margin call.

Margin Requirements
Margin Requirements may vary for stocks H&R Block Financial Advisors deems to be volatile. Maintenance levels may range as high as 100% for certain securities. Please consult the maintenance chart for specific margin requirements.

Mutual Fund Investing
Be sure to read a fund's prospectus before investing. Mutual funds involve risk. Generally, the higher your targeted return the greater the risk. In addition, the past performance of a fund is no indication of future results. Investment return and principal value will fluctuate and when redeemed, shares may be worth more or less than their original cost.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. Please read the prospectus carefully before investing. For this and other information, call or write to H&R Block Financial Advisors, Inc. for a free prospectus, or view online.

Performance quoted is past performance and is no guarantee of future results. Current performance may be lower or higher. Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

H&R Block Financial Advisors receives remuneration from those no-load funds for which it does not charge a transaction fee.

Order Flow
H&R Block Financial Advisors receives monetary remuneration for directing client orders to particular broker/dealers or market centers for execution. When such monetary benefits are received, they are considered compensation to H&R Block Financial Advisors. The source and amount of monetary compensation, if any, received in connection with your transaction will be disclosed upon written request. You acknowledge that all such compensation is considered by H&R Block Financial Advisors in determining commission rates and other client charges, and that you therefore receive a benefit from all such payments through low commission rates and fees.

Proxy Disclosure
H&R Block Financial Advisors has contracted with ADP Communications Services, Inc. ("ADP") to provide proxy services to you. You acknowledge and agree that if you do not vote your shares within the time frame described in any proxy, ADP may vote your shares in favor of all the recommendations of the management of the company.

Trade and Quotation Information
Fees and costs are estimates only. Quotation information is not offers to buy or sell any security and the information contained therein may become dated. Real-time quote information has been obtained from sources believed to be reliable, but H&R Block Financial Advisors makes no representation as to its accuracy or completeness and it should not be considered a guaranteed available price.

The market value of priced securities amount represents the estimated net total market value of the securities listed in your portfolio summary and for which the various quotation services were able to obtain appraisals on the date of the market close indicated above. Securities that are not actively traded may have no value or a stale price listed on this statement. Fixed income investments are typically traded in a negotiated market, so the value listed may not be representative of the actual value. Contact your advisor or the customer service center for a quote. Due to the nature of the data provided by the quotation service, H&R Block Financial Advisors cannot guarantee the accuracy of these prices.

Account data is provided for your information only and is not intended for trading purposes or as a guarantee of particular account equity for a future transaction. Keep in mind that account balances and other account information may not reflect your most recent account activity (e.g., open orders). Your actual buying power is subject, at the time of trade execution, to any costs and applicable brokerage fees and for commissions.

Other Links:
Statement of Financial Condition
Account Protection
Order Routing Statistics
Reserve Funds Yields
Additional Disclosures for HRBFA Research