Business Continuity Plan Disclosure

As required by recent securities industry regulations, we want to make you aware that we have developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.

Contacting Us – In the event of a business disruption Simmons & Company International will provide information to its employees and clients via call forwarding, an emergency hot line, e-mail, and/or other telecommunication services. If you cannot access us through those means, you may contact our clearing firm, Pershing LLC for trade-related transactions, cash disbursements, and security transfers despite the fact that Simmons & Company International may be experiencing a significant business disruption, unless the disruption is industry wide. Their contact information is as follows:

Pershing LLC
P.O. Box 2065
Jersey City, NJ 07303-2065
Fax: (201) 413-5368

Our clients may call Pershing at (201) 413-3635 for additional information on how to request funds. Should that telephone number be unavailable, an alternative telephone number is (213) 624-6100 extension 500.

Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.

Our business continuity plan addresses: data back up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.

Simmons & Company International maintains redundant offsite archival storage facilities in geographically separate areas. Our clearing firm, Pershing LLC, also backs up some of our records. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, 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 in less than four hours. Your orders and requests for funds and securities could be delayed during this period.

Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. Our plan addresses various disruptions and is intended to mitigate reasonable risk so as to permit the continuation of key business operations. We maintain a back-up facility at a site well away from our primary facility so that it would not be affected by a regional disruption. This facility is equipped to sustain critical operations until we can return to our regular facility or occupy a new one. The firm’s goal is to recover its critical business processes with minimal interruption, within minutes or hours after the significant business disruption, depending on the nature of the disruption. These recovery objectives may be affected by the availability of other financial market participants and critical infrastructures (e.g. exchanges, clearing systems, public utilities) and circumstances beyond our control. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.

Plan Updates - Simmons & Company International will review, test and update the plan, as necessary, and as conditions in our firm and the industry change. An updated summary disclosure will be promptly posted on our web site (www.simmonsco-intl.com). Clients may alternatively request a copy of the disclosure by writing to:

Simmons & Company International
Attention: Business Continuity Plan Administrator
700 Louisiana, Suite 5000
Houston, TX 77002