Prairie Brokerage Services
A division of George K. Baum & Company
Business Continuity Disclosure Statement

Prairie Brokerage Services/George K. Baum & Company (PBS), which is a division of George K. Baum & Company (GKB), is furnishing this document to you to provide information about our efforts to ensure that you are not significantly affected as a result of an emergency or significant business disruption.

Securities Industry regulations require each member firm to create and maintain a business continuity plan reasonably designed to meet its obligations to its clients and other counter-parties.  In accordance with these requirements, PBS, in conjunction with George K. Baum & Company, has designed a business continuity plan to address possible scenarios in efforts to minimize the impact to your account. PBS’s clearing firm, First Clearing, LLC, has also established a Business Continuity Plan that is an integral part of PBS’s plan.  See more on First Clearing, LLC’s plan below.

In keeping with the regulatory requirements, the business continuity plan for Prairie Brokerage Services/George K. Baum & Company is designed to address key areas of concern - including but not limited to the following:

• Data back-up and recovery
• All mission critical systems
• Financial and operational assessments
• Alternate means of communication between PBS and its customers
• Alternate means of communication between PBS and its employees
• Alternate physical locations of employees
• Critical business constituent, bank and counter-party impact
• Regulatory reporting
• Communications with regulators
• How Prairie Brokerage Services/George K. Baum & Company will ensure that customers have access to their funds and securities in the event Prairie Brokerage Services/George K. Baum & Company determines it is unable to continue its business.

Since events creating business disruptions may vary in nature and scope, Prairie Brokerage Services/George K. Baum & Company has anticipated scenarios in which the following are affected:

• Prairie Brokerage Services/George K. Baum & Company headquarters location
• A Prairie Brokerage Services/George K. Baum & Company branch location
• A city wide area
• A regional area

Our clearing firm, First Clearing, LLC, backs up our important records in a geographically separate area. . We have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments as soon as possible. A copy of the First Clearing, LLC Business Continuity Plan is attached to this document for your reference.

Regardless of the scope of potential disruption, Prairie Brokerage Services/George K. Baum & Company intends to continue to provide service to its clients as soon as possible.

George K. Baum & Company is fortunate to have a divided corporate presence in its headquarters’ area with two buildings located approximately twenty miles apart.  In the event where the headquarters building or business district is affected, the other building can be used to help restore operations.

In the unlikely event of a citywide or regional disruption, George K. Baum & Company has established a recovery site approximately 500 miles from its headquarters that can be used to restore time sensitive functions as soon as key employees are relocated to the facility.  Additionally, George K. Baum & Company would intend to take advantage of any available facilities at any of our offices that may be located in other geographical regions.  In the event that any such disruption occurs, we have developed alternative service arrangements, systems, locations and contingency plans to ensure that any service is quickly restored.

At a minimum, the Prairie Brokerage Services/George K. Baum & Company business continuity plan is reviewed, updated and tested on an annual basis.  Additionally, our primary internal and external application providers, along with our clearing firm, First Clearing, LLC, periodically conduct testing of their own back-up capabilities to ensure that, in the event of an emergency or significant business disruption, they will be able to provide us with the critical information and applications we need to continue or promptly resume our business.

If SIPC determines that we are unable to meet our obligations to our customers or if our liabilities exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a trustee to disburse our assets to customers.  We will assist SIPC and the trustee by providing our books and records identifying customer accounts subject to SIPC regulation

Making sure that any type of disruption does not unduly impact our clients is extremely important to us, and our business continuity plan is designed to allow us to continue to provide the quality service you have come to expect from Prairie Brokerage Services/George K. Baum & Company.

First Clearing LLC (FCC)
Business Continuity Disclosure Statement

Business Continuity

The following information concerns FCC’s efforts to ensure that impact to your business is minimized as in the event of an emergency or disaster.

Securities Industry regulations require each member firm to create and maintain a business continuity plan reasonably designed to meet its obligations to its clients or other counter-parties. In accordance with these requirements, FCC has designed a business continuity plan to address possible scenarios in efforts to minimize any service impact to our introducing firms or their clients.

In keeping with the regulatory requirements, the business continuity plan for FCC is designed to address key areas of concern - including but not limited to the following:

• Data back-up and recovery;
• Mission critical systems;
• Financial and operational assessments;
• Alternate means of communication between FCC and its customers;
• Alternate means of communication between FCC and its employees;
• Alternate physical locations of employees;
• Critical business constituent, bank and counter-party impact;
• Regulatory reporting;
• Communications with regulators; and
• How FCC will ensure that customers have access to their funds and securities in the event FCC determines it is unable to continue its business.

Since events creating business disruptions may vary in nature and scope, FCC has anticipated scenarios in which the following are affected:

• A primary FCC building at its headquarter location
• An FCC branch location
• A city wide area
• A regional area

Regardless of the scope of potential disruption, FCC intends to continue to provide service to its introducing firms and their clients.

In the event where the primary building or business district is affected, the firm is fortunate to have a divided corporate presence in the Richmond, VA area, with two primary buildings located approximately twenty miles apart. Both buildings are served by UPS systems and have 24-hour security services. Should one of the primary buildings be affected by a disruption, the other building can be used to help restore operations. In the unlikely event of a citywide or regional disruption, FCC has established a recovery site approximately 150 miles from its headquarters that can be used to restore time sensitive functions as soon as key employees are relocated to the facility. Additionally, as a subsidiary of a large financial institution, FCC would intend to take advantage of any available facilities of other affiliates that may be located in other geographical regions. In the event that any such disruption occurs, we have developed alternative service arrangements, systems, locations and contingency plans to ensure that any service is
quickly restored.

FCC has identified several computer applications with Mission Critical or High criticality ratings and has documented this within the business continuity plans. Our primary application provider, Thomson Beta Systems Inc. has conducted successful testing with FCC, generally two or three times per year since November 2000. Finally, through its parent company, FCC utilizes data centers, located outside of Virginia, which regularly perform disaster recovery testing.

At a minimum, the FCC business continuity plan is reviewed, updated and tested on an annual basis. Additionally, our primary internal and external application providers periodically conduct testing of their own back-up capabilities to ensure that, in the event of an emergency or significant business disruption, they will be able to provide us with the critical information and applications we need to continue or promptly resume our business. When testing our plan, we review the recovery time and resumption time period for all mission critical systems.

Making sure that any type of disruption does not unduly impact our introducing firms or their clients is extremely important to us, and our business continuity plan is designed to allow us to continue to provide the quality service you have come to expect from FCC.