Information regarding changes to options exercises

From: TD AMERITRADE
Subject: Information regarding changes to options exercises

Date: 10/3/2006

Dear Valued Client,

Beginning October 2006, the Options Clearing Corporation (OCC) will
implement a change to reduce the automatic exercise threshold for
equity options. The current threshold of $0.25 will be set at $0.05
for expiring options that are automatically exercised by the OCC.
The threshold for index options will remain at $0.01.

This means that if you had an options position in company ABC and the
underlying stock closed at least 5 cents above or below the strike
price of your option (depending on if it is a call or put) on the Friday
before expiration, your contracts would automatically exercise. The
resulting stock position from the exercise would appear in your account
the following Monday.

This is an industry change and will only affect the way your options are
exercised at the time of expiration. To opt out of the automatic
exercise,
call a Client Services representative prior to expiration.

If you have questions, please e-mail us after you have logged on to your
account or call a Client Services representative.