Smart Execution, LLC hereafter referred to as “The Company”, have developed a policy to respond to a Significant Business Disruption ("SBD") by attempting to safeguard employees’ lives, firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of The Company’s books and records, and allowing customers to transact business. In the event that The Companies determine that they are unable to continue business, The Companies in coordination with their clearing firm(s), Wedbush Morgan Securities, Inc. will assure customers prompt access to their funds. The Companies have a documented corporate policy requiring the development and annual maintenance of a Business Continuity Plan (hereinafter a "BCP"). Pursuant to this policy, The Company's Compliance/Risk Management department has the full-time responsibility of coordinating the development, testing and maintenance of all the procedures outlined in the Company's written BCP. The Company's Compliance/ Risk Management department manages contracts with recovery services vendors and is responsible for management reporting on all aspects of continuity. A formal process that includes a continuous review of internal controls enforces the corporate policy on continuity. The Company's’ BCP addresses advance preparations and actions to be taken in response to disruptions of various magnitudes. The BCP addresses the potential impact of varying levels of disruptions on employees, equipment, computer and telecommunications systems, and office facilities. While it is impossible to anticipate every type of disruption that could effect The Company's business, the incidents that the BCP covers include, but are not limited to, Terrorist attacks, Tornado Thunderstorms, Fires, Gas Leaks or Explosions, Power Outages, Bomb Threats, Earthquakes, Telephone or Network Disruptions, Attack by Computer Virus, and Biological Attacks. The Companies and/or its vendors maintain back-up systems and power supplies that allow critical computer and telecommunications systems, as well as facility functions, to be maintained in the event of disruptions. For all SBDs described above, the BCP in place may permit The Companies to remain operational and service their customers. The duration of the disruption will depend on the nature and extent of the SBD. In the event of an SBD, where it is not possible to conduct business from The Company's office, a remote alternate site equipped with sufficient resources to support critical business operations has been identified. Telephone service would be rerouted to this site. The Company's network data is replicated routinely and stored at a location in a different geographical location from the company’s main office, enabling employees to access these systems from the remote site should the local systems become unavailable. Per The Company's BCP, the company is generally prepared to restore critical business functionality within a reasonable period of time given the nature of the particular SBD. The Companies review and update their BCP as necessary, at a minimum at least annually, to ensure The Companies account for operational, technology, business and regulatory changes. The Company's BCP is subject to change. A copy of the BCP is available upon request. For further information contact the Company's compliance department at 207.892.6600.