Margin Rates

The current Broker Call Rate is 3.75% as of 5/01/2008. Regal's margin rates are 1/2 point above the current Broker Call Rate.

Minimum equity requirements to open a Regal Margin Account:

Cash/Stock	$2,000
Cash/Options/Stock	$2,000
Margin/Options/Stock	$2,000 in marginable securities or cash

Margin Guidelines

Additional requirements apply depending upon specific transactions and positions in your account. Trade stocks on margin with a market price as low as $3.00 per share. Margin maintenance ranges from 30% - 100% depending on the particular stocks in an account. Please note that not all stocks above $3 are automatically marginable.

Basic Minimum Equity Requirements

• Regular Margin - $2,000
• Short Sales - $2,000
• Spreads - $2,000
  - IRA - $2,000 in cash
• Naked Puts - $20,000
• Naked Calls - $100,000
• Naked Index - $500,000
• Equity and Index Spreads - $2,000
• Maintenance calls are due in three (3) business days under normal conditions.
• Stocks priced under $3.00 are not eligible for credit towards margin requirements and are not credited to buying power.
• If equity drops below house required minimum, or a call is issued for any other reason, you may be required to immediately sell securities or deposit additional funds promptly.
• Margin Maintenance is higher for concentrated accounts and may vary per security. At Regal, an account will be considered concentrated if the margin market value of any one position is greater then total margin account equity. In this instance an account will be coded, as "concentrated" and every margin position will be held at a minimum margin requirement of 10% greater than non-concentrated accounts.
• Our clearing firm, Penson Financial Services, Inc. may increase maintenance requirements from time-to-time because of overall firm concentration, or unusual market conditions. We further reserve the right to increase the requirements at our sole discretion.
• Covered Call Writing Requires a long stock position equal to the amount of exercisable calls.
• Debit Spreads - $2,000 minimum equity plus 100% of the debit amount upon initiating the transaction.
• Credit Spreads - $2,000 minimum equity plus 100% of the difference between the strike prices multiplied by the number of contracts.

At this time, we do not allow margin borrowing on cash secured short puts, short calls, naked or spread positions.

Long Stock Transactions

Equity Securities	Initial Requirements	Maintenance Requirements
$5.00 and above	50%	30%
$4.99 to $3.00	50%	50%
$2.99 and below	Not Allowed	100%

Short Stock Transactions

Equity Securities	Initial Requirements	Maintenance Requirements
Short sales below $3.00	Not Allowed	Greater of $2.50 a share or 100% of CMV
Short sales below $5.00	Same as maintenance.	Greater of $3.50 a share or 100% of CMV
Short sales $5.00 & above	50%	Greater of $5.00 a share or 35% of CMV†

^† Whichever is greater.

Option Transactions

Equity Securities	Initial Requirements	Maintenance Requirements
Naked Puts	20% of CMV minus out-of-money amount or 10% of strike price, whichever is greater	20% of CMV minus out-of-money plus premium, or 10% of strike price plus premium, whichever is greater
Naked Calls	20% of CMV minus out-of-money amount or 10% of CMV, whichever is greater	20% of CMV minus out-of-money amount plus premium or 10% of CMV plus premium, whichever is greater

Position limits are 2,000 contracts when going short and uncovered. The long position limits are determined by the exchange.

Margin Risks

Consider your risk before you trade:

• You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities in your account.
• The firm can force the sale of securities in your account. If the equity in your account falls below the maintenance margin requirements under the law-or the firm's higher "house" requirements-the firm can sell the securities in your account to cover the margin deficiency. You will also be responsible for any short fall in the account after such a sale.
• The firm can sell your securities without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities in their accounts to meet the call unless the firm has contacted them first. This is not the case. As a matter of good customer relations, most firms will attempt to notify their customers of margin calls, but they are not required to do so.
• You are not entitled to an extension of time on a margin call. While an extension of time to meet initial margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension. In addition, a customer does not have a right to an extension of time to meet a maintenance margin call.

It is important that investors take time to learn the risks involved in trading securities on margin. Customers should contact Regal regarding any concerns they may have with their margin accounts.