1 New Form or Updated Form Advisory Account Clearing Account Representative # BD Account # (HO Use Only) Clearing Firm Account # New Account Form/Application ACCOUNT REGISTRATION (*include additional paperwork as required) Type of account: Cash Margin* Option* Individual TOD* Non-Corporation* Qualified Plan* Type: Joint w/rights of Survivorship Trust* Corporation* IRA* Type: Tenants in Common* Estate* UGMA/UTMA 529 Plan Other (specify): Account Title: Name Legal Address (no P.O. Boxes) CUSTOMER/MINOR INFORMATION Date of Birth (MM/DD/YYYY) 3rd Party Mailing Address (if different) Social Security or Taxpayer I.D. Number Telephone (Check one): Daytime Evening Cell Marital Status: S M W D Number of Dependents U.S. Citizen Resident Alien Employment Status (Check one): Employed Self-Employed Not Employed Retired Full-time Student Other: Employer (or Former) Occupation (or Former) Job Title Number of Years Employed Employer Address Name JOINT/CUSTODIAN INFORMATION (if any) Date of Birth (MM/DD/YYYY) Legal Address (no P.O. Boxes) Mailing Address (if different) Social Security or Taxpayer I.D. Number Telephone (Check one): Daytime Evening Cell Marital Status: S M W D Number of Dependents U.S. Citizen Resident Alien Employment Status (Check one): Employed Self-Employed Not Employed Retired Full-time Student Other: Employer (or Former) Occupation (or Former) Job Title Number of Years Employed Employer Address ACCOUNT SETTLEMENT INSTRUCTIONS For Clearing Accounts Only (*include additional paperwork as required) Proceeds: Remit Proceeds Security Instructions: Send Dividends/Interest Income (Select One of the Five Options): Pay Hold & Sweep Proceeds Hold in Street Name If Pay, select Frequency: Wkly Mthly S-Mthly Qtrly Name of MM Fund: Reinvest MF Divs/Cash as Proceeds Reinvest MF & Stock Divs/Cash as Proceeds Reinvest Stock Divs/Cash Proceeds Hold all Divs/Cash as Proceeds TAX LOT DISPOSITION METHOD First In/First Out Intraday First In/First Out Low Cost/Long Term High Cost In/First Out Last In/First Out Low Cost/Short Term High Cost In/First Out Long Term Low Cost In/First Out Tax Sensitive High Cost In/First Out Short Term PAGE 1 OF 11 CUSTOMER COPY BRANCH FILE COPY OSJ COPY HOME OFFICE COPY
2 New Form or Updated Form Advisory Account Clearing Account Representative # BD Account # (HO Use Only) Clearing Firm Account # New Account Form/Application ACCOUNT REGISTRATION (*include additional paperwork as required) Type of account: Cash Margin* Option* Individual TOD* Non-Corporation* Qualified Plan* Type: Joint w/rights of Survivorship Trust* Corporation* IRA* Type: Tenants in Common* Estate* UGMA/UTMA 529 Plan Other (specify): Account Title: Name Legal Address (no P.O. Boxes) CUSTOMER/MINOR INFORMATION Date of Birth (MM/DD/YYYY) 3rd Party Mailing Address (if different) Social Security or Taxpayer I.D. Number Telephone (Check one): Daytime Evening Cell Marital Status: S M W D Number of Dependents U.S. Citizen Resident Alien Employment Status (Check one): Employed Self-Employed Not Employed Retired Full-time Student Other: Employer (or Former) Occupation (or Former) Job Title Number of Years Employed Employer Address Name JOINT/CUSTODIAN INFORMATION (if any) Date of Birth (MM/DD/YYYY) Legal Address (no P.O. Boxes) Mailing Address (if different) Social Security or Taxpayer I.D. Number Telephone (Check one): Daytime Evening Cell Marital Status: S M W D Number of Dependents U.S. Citizen Resident Alien Employment Status (Check one): Employed Self-Employed Not Employed Retired Full-time Student Other: Employer (or Former) Occupation (or Former) Job Title Number of Years Employed Employer Address ACCOUNT SETTLEMENT INSTRUCTIONS For Clearing Accounts Only (*include additional paperwork as required) Proceeds: Remit Proceeds Security Instructions: Send Dividends/Interest Income (Select One of the Five Options): Pay Hold & Sweep Proceeds Hold in Street Name If Pay, select Frequency: Wkly Mthly S-Mthly Qtrly Name of MM Fund: Reinvest MF Divs/Cash as Proceeds Reinvest MF & Stock Divs/Cash as Proceeds Reinvest Stock Divs/Cash Proceeds Hold all Divs/Cash as Proceeds TAX LOT DISPOSITION METHOD First In/First Out Intraday First In/First Out Low Cost/Long Term High Cost In/First Out Last In/First Out Low Cost/Short Term High Cost In/First Out Long Term Low Cost In/First Out Tax Sensitive High Cost In/First Out Short Term SUPPLEMENT TO PAGE 1 CUSTOMER COPY BRANCH FILE COPY OSJ COPY HOME OFFICE COPY
3 Customer #1 I am, or a member of my immediate family is, affiliated with or work(s) for a stock exchange, a member firm of an exchange or FINRA, a registered investment advisory firm or a registered investment company. Yes No AFFILIATIONS Customer #2 I am, or a member of my immediate family is, affiliated with or work(s) for a stock exchange, a member firm of an exchange or FINRA, a registered investment advisory firm or a registered investment company. Yes No Name & Address of Firm: Name of Affiliated Person: Name & Address of Firm: Name of Affiliated Person: VERIFICATION OF IDENTITY EXEMPTION STATUS If an individual, does this person currently have an active account (or are they an authorized person on such an account) with INVEST? Customer #1: Yes (Provide Account #: ) No Customer #2: Yes (Provide Account #: ) No If account number cannot be provided, or answer is No, please complete Verification of Individual Section. VERIFICATION OF INDIVIDUAL Verified (Must be in Person) Unable to Verify Customer #1: Driver s License Passport Resident Alien Card Military ID Card Other Government-Issued Photo ID (describe): Identification Number: State of Issuance: Country of Issuance: Date of Issuance: OR Check Here if Document does not Provide Date of Issuance Expiration Date: OR Check Here if Document does not Provide Expiration Date Customer #2: Driver s License Passport Resident Alien Card Military ID Card Other Government-Issued Photo ID (describe): Identification Number: State of Issuance: Country of Issuance: Date of Issuance: OR Check Here if Document does not Provide Date of Issuance Expiration Date: OR Check Here if Document does not Provide Expiration Date FINANCIAL INFORMATION Approximate Annual Income (from all sources) Estimated Liquid Net Worth Under $25,000 $200,000 - $399,999 Under $25,000 $200,000 - $499,999 $25,000 - $49,999 $400,000 - $999,999 $25,000 - $49,999 $500,000 - $999,999 $50,000 - $99,999 Over $1,000,000 $50,000 - $99,999 $1,000,000 - $2,499,999 $100,000 - $199,999 $100,000 - $199,999 Over $2,500,000 Federal/State Max. Tax Margin Less than 15% 15% - 27% 28% - 32% 33% and Above Estimated Net Worth (excluding value of primary residence) Under $25,000 $500,000 - $999,999 $25,000 - $49,999 $1,000,000 - $2,499,999 $50,000 - $99,999 $2,500,000 - $49,999,999 $100,000 - $199,999 Over $50,000,000 $200,000 - $499,999 INVESTMENTS To the extent available, please list the client s existing assets (including investment and life insurance holdings). Note: Each Category must be answered affirmatively. Marketable Securities (i.e., Mutual Funds, Stocks, Bonds): $ Variable Annuities: $ Life Insurance (Cash Value): $ Cash Equivalents: $ Fixed Annuities: $ Other: $ PAGE 2 OF 11 CUSTOMER COPY BRANCH FILE COPY OSJ COPY HOME OFFICE COPY
4 INVESTMENT OBJECTIVES Liquidity Needs for this Account When is the earliest you expect to need funds from this account? Under 3 years Primary Investment Objective (Rank Objectives 1 through 4; 1 = Highest) Tax Advantaged 3-5 years Income 6-10 years Growth years Speculation Over 20 years (See paragraph 18 Investment Objective and Risk Exposure Definitions) Risk Tolerance Time Horizon for this Account Years of Experience Low Moderate High Short (0-5 years) Intermediate (6-10 years) Long (Over 10 years) Bonds Stocks REITs VAs Mutual Funds Options Partnerships Other None The Investments in this Account will be (check one): Less than 1/3 of my financial portfolio Roughly 1/3 to 2/3 of my financial portfolio More than 2/3 of my financial portfolio I Plan to use this Account for the Following (check all that apply): Generate income for current or future expenses Partially fund my retirement Wholly fund my retirement Steadily accumulate wealth over the long term Preserve wealth and pass it on to my heirs Pay for education Market speculation Other: ACKNOWLEDGEMENTS What is the Initial Source of Funds? Institutional/Non-Institutional Account (Check one): A bank, savings and loan association, insurance company, or registered investment company. An investment adviser registered with either the Securities and Exchange Commission under Section 203 of the Investment Advisers Act of 1940 or with a state securities commission (or any agency or office performing like functions). Any other entity (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million. None of the above. Yes No Is the Representative s office located in a financial institution? Yes No Trading Authorization: Have you granted trading authorization to someone other than the account owners? (If yes, please submit proper documentation, including Verification of Identity.) Yes No Power of Attorney: Have you granted the Power of Attorney to someone other than the account owner? (If yes, please submit proper documentation, including Verification of Identity.) Yes No Is this account for a local or state government entity, board or commission? Yes Government entity means any state or political subdivision of a state, including, a. Any agency, authority, or instrumentality of the state or political subdivision; b. A pool of assets sponsored or established by the state or political subdivision or any agency, authority or instrumentality thereof, including, but not limited to, a defined benefit plan, as defined in Section 414(j) of the Internal Revenue Code or a state general fund; c. A plan or program of a government entity; and d. Officers, agents, or employees of the state or political subdivision or any agency, authority or instrumentality thereof, acting in their official capacity. No Is the account a 1) Private Banking account, or 2) Foreign Bank account, or 3) Is the account holder or anyone with an interest in the account a Politically Exposed Person? Private Banking Account Definition A private banking account is an account (or any combination of accounts) that requires a minimum aggregate deposit of $1,000,000, is established for one or more individuals, and is assigned to or administered or managed by, in whole or in part, an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account. Foreign Bank Account Definition A foreign bank is any bank organized under foreign law or an agency, branch or office of a bank located outside the U.S. Politically Exposed Person Definition A Politically Exposed Person includes a current or former senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned commercial enterprise; a corporation, business, or other entity formed by or for the benefit of any such individual; an immediate family member of such an individual; or any individual publicly known. PAGE 3 OF 11 CUSTOMER COPY BRANCH FILE COPY OSJ COPY HOME OFFICE COPY
6 To Broker-Dealer: 1. Nature of Services Provided. I understand that all information supplied by the undersigned will be subject to verification, and that the information on this application is correct. I understand that you have entered into an agreement with National Financial Services LLC ( NFS ), (a NYSE member firm), to execute and clear all brokerage transactions. NFS will provide margin loans if authorized. I understand that neither you nor NFS provide investment advice in connection with this account, nor do you give advice or offer any opinion with respect to the suitability of any security or order, except such as may be incidental to the provision of brokerage services hereunder. 2. Application Rules and Regulations. All transactions through you and NFS are subject to the constitution, rules, regulations, customs and usages of the exchange or market (and its clearing house, if any) where executed, as well as any applicable federal or state laws, rules and regulations. 3. Security Interest. All securities and other property now or hereafter held, carried or maintained by NFS for any of the accounts of the undersigned, now or hereafter opened, including accounts in which the undersigned may have an interest, shall be subject to a lien for the discharge of all indebtedness and other obligations of the undersigned to you and are held at NFS as security for the payment of any liability or indebtedness of the undersigned to you or NFS in any of the said accounts. You shall have the right to sell, assign or transfer securities and any other property so held by you from or to any other of the accounts of the undersigned whenever in your judgment you consider such a transfer necessary for your protection in enforcing your lien; you shall have the discretion to determine which securities and property are to be sold and which contracts are to be closed. No provision of this agreement concerning liens or security interests shall apply to the extent such application would be in conflict with any provisions of ERISA or the Internal Revenue Code relating to retirement accounts. 4. Payment Upon Demand. The undersigned shall at all times be liable for the payment upon demand of any debit balance or other obligations owing in any of the accounts of the undersigned, and the undersigned shall be liable to you for any deficiency remaining in any such accounts in the event of liquidation thereof, in whole or in part, by you or by the undersigned; and the undersigned shall make payment of such obligations and indebtedness upon demand. All transactions in any of my accounts are to be paid for or securities delivered no later than 2:00 p.m. Eastern Standard Time on the settlement date. I agree that if, after demand, I fail to pay the indebtedness, you may close my account and liquidate the assets in my account in the amount sufficient to pay my indebtedness. 5. Liability for Costs of Collection. The reasonable costs and expenses of collection of the debit balance or any unpaid deficiency in the account of the undersigned, including, but not limited to, attorney s fees, incurred and payable or paid by you, shall be reimbursed by the undersigned. 6. Presumption of Receipt of Communications. Communications may be sent to the undersigned at the address of the undersigned or at such other address as the undersigned may hereafter give you in writing, and all communications so sent, whether by mail, telegraph, messenger or otherwise, shall be deemed given to the undersigned personally, whether actually received or not. Reports of executions or orders and statements of my account shall be conclusive if not objected to in writing within five (5) days and ten (10) days respectively, after transmitted to me by mail or otherwise. 7. Affiliation Disclosure. I understand that INVEST Financial Corporation ( INVEST ) is an indirect wholly-owned subsidiary of Prudential plc (LSE: PRU; NYSE: PUK), a company incorporated in the United Kingdom ( UK ) and not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. I understand that INVEST Registered Representatives are not permitted to solicit the purchase or sale of INVEST s UK parent s securities and acknowledge that any such purchases or sales will be effected solely on an unsolicited basis. I understand that INVEST is affiliated with Jackson National Life Insurance Company ( Jackson ) and Jackson is the issuer of various life insurance and annuity products available for purchase through INVEST. I understand that INVEST is affiliated with Curian Capital LLC, a Registered Investment Adviser, and that INVEST may refer clients to Curian Capital LLC for advisory services and receive referral fees. 8. Extraordinary Events. You shall not be liable for loss caused directly or indirectly by war, natural disasters, government restrictions, exchange or market rulings or other conditions beyond your control, including, but CUSTOMER AGREEMENT CUSTOMER S COPY - KEEP FOR YOUR RECORDS - PAGE 5 OF 12 not limited to, extreme market volatility or trading volumes. 9. Purchase of Precious Metals. I understand and acknowledge the following in regard to the purchase of precious metals: a) The Securities Investor Protection Corporation ( SIPC ) does not provide protection for precious metals. However, if stored through NFS, they are insured by the depository at market value. b) Precious metals are not marginable. c) Precious metals investments can involve substantial risks as prices can change rapidly and abruptly. Therefore, any advantageous purchase or liquidation price cannot be guaranteed. d) If I take delivery of my metals, I am subject to delivery charges and applicable sales and use taxes. 10. Settlement Sweep. For securities sold or purchased through you and any resulting debit or credit balances, I hereby authorize you to automatically settle all transactions through the Money Market Fund designated on page 1 of this application. In the event that I carry a margin account with NFS, I further authorize you to transfer from my Money Market Fund, any sums necessary to maintain the required minimum equity in such margin accounts. My account statement details all activity in the Core Money Market Fund. This is provided in lieu of a confirmation that might otherwise be provided with respect to those transactions. 11. Credit Information. You may exchange credit information about me with others. You may request a credit report on me and, if I ask, you will tell me the name and address of the consumer reporting agency that furnished it. 12. Account Protection. Securities in accounts carried by National Financial Services LLC ( NFS ), a Fidelity Investments company, are protected in accordance with the Securities Investor Protection Corporation ( SIPC ) up to $500,000 (including cash claims limited to $250,000). For details or a brochure, please see or call (202) NFS has arranged for additional protection for cash and covered securities to supplement its SIPC coverage. This additional protection covers total account net equity in excess of the $500,000/$250,000 coverage provided by SIPC. Neither coverage protects against a decline in the market value of securities. 13. Joint Accounts. If this is a joint account, I refers to all account holders, and each of the account holders jointly and severally agrees that any account holder has authority on behalf of the joint account to: Buy, sell (including short sales) and otherwise deal in stocks, bonds, options, and other eligible securities or other investments on margin or otherwise; Receive demands, notices, confirmations, reports, statements of account and communications of every kind on behalf of the joint account; Receive money, securities and property of every kind and dispose of the same on behalf of the joint account; Make agreements relating to any of the foregoing matters and to terminate, modify or waive any of the provisions of the agreement on behalf of the joint account; and Deal with my broker-dealer as fully and completely as if he alone were interested in this account and without notice to other account participants. All obligations and liabilities arising under this account are joint and several and may be enforced by my broker-dealer or NFS against any and all account holders. My broker-dealer is authorized to follow the instructions of any joint account holder, without notice to any other account holder, in every respect, and to deliver any and all monies, securities or other property to any joint account holder upon the instructions of any joint account holder, or to any other person upon such instructions, even if such delivery or payment is to that joint account holder personally and not to the other(s). My broker-dealer will be under no obligation to inquire into the purpose or propriety of such delivery or payment and is not bound to inquire into the disposition or application of such delivery or payment. This authority remains in force until written notice to the contrary is addressed to my broker-dealer and delivered to its office. My broker-dealer, or NFS, in their sole discretion and for their sole protection, may terminate the account upon receipt of such notice and may require the written consent of all account holders prior to acting upon the instructions of any account holder. 14. Payment for Order Flow. INVEST transmits customer orders for execution to various dealers, based on a number of factors. These include: size of order, supply and liquidity of the bond market, and market conditions. INVEST receives remuneration, compensation or other consideration based upon the amount of sales generated for the training, education and related marketing promotion to the Registered Representatives of INVEST. The source and nature of compensation will be provided upon written request. 15. FundServ Disclosure. INVEST may place mutual fund trades through the FundServ mutual fund trading system. If we do, please note that
7 your order will be placed when the funds you are sending to pay for the trade are received in good order by our bank. Depending upon market conditions, this may result in a higher or lower cost per share for your trade. 16. New York Stock Exchange Rule 382 requires that your brokerdealer and NFS allocate between them certain functions regarding the administration of your brokerage account. The following is a summary of the allocation services performed by your broker-dealer and NFS. A more complete description is available upon request. Your broker-dealer is responsible for: (1) obtaining and verifying brokerage account information and documentation, (2) opening, approving and monitoring your brokerage account, (3) transmitting timely and accurate instructions to NFS with respect to your brokerage account, (4) determining the suitability of investment recommendations and advice, (5) operating and supervising your brokerage account and its own activities in compliance with applicable laws and regulations, including compliance with margin rules pertaining to your margin account (if applicable), and (6) maintaining the required books and records for services it performs. NFS shall perform the following tasks at the direction of your broker-dealer: (1) execute, clear and settle transactions processed through NFS by your broker-dealer, (2) prepare and send transaction confirmations and periodic statements of your brokerage account. Certain pricing and other information may be provided by your brokerdealer or obtained from third parties, which has not been verified by NFS, (3) act as custodian for funds and securities received by NFS on your behalf and maintain these assets in a brokerage account registered in your name, (4) follow the instructions of your brokerdealer with respect to transactions and the receipt and delivery of funds and securities for your brokerage account, and (5) extend margin credit for purchasing or carrying securities on margin. Your broker-dealer is responsible for ensuring that your brokerage account is in compliance with federal, industry and NFS margin rules, and for advising you of margin requirements. NFS shall maintain the required books and records for the services it performs. NFS address is 200 Seaport Boulevard, Z2P, Boston MA The account statements you receive from NFS are your official account statements. Please compare the transactions, positions and valuations contained in the NFS account statements with any statements or reports you may receive from INVEST or your Representative, and promptly report any discrepancies to the INVEST Compliance Department at (800) , option 1, then option This Agreement and its enforcement shall be governed by the laws of the State of Florida; shall cover individually and collectively all accounts which the undersigned may open or reopen with you, and shall inure to the benefit of your successors and assigns, whether by merger, consolidation or otherwise, and you may transfer the account of the undersigned to your successors and assigns, and this Agreement shall be binding upon heirs, executors, administrators, successors and assigns of the undersigned. To Customer: Customer Disclosures and Responsibilities 18. Investment Objective and Risk Exposure Definitions. Below are general guidelines to assist individual investors in selecting their Investment Objectives and Risk Exposure for their INVEST Financial Corporation account. The Investment Objectives and Risk Exposure combinations relate to the entire account taken as whole, not simply to individual holdings/transactions within the portfolio. The portfolio is viewed as the sum of the holdings but there may be securities within the account that do not meet the general guidelines set forth below and you may direct trades on a non-solicited basis that are not suitable for your designated Investment Objectives and Risk Exposure. In order to determine whether your total portfolio meets your Investment Objectives and Risk Exposure properly, your Representative needs information relative to your other investments you have owned or may currently own, including investment accounts, mutual funds, insurance products and bank investments. Please remember that all investments are subject to risks, ranging from inflation and rate change risks for fixed income investments, to default and market fluctuation risks. Please be sure that you understand these risks before you invest. Investment Objective/Risk Exposure Combinations. Clients assume certain risks when investing in any securities. An outline of some of the risks for each investment objective/risk exposure combination is set forth below. Generally, the investment styles and strategies we use to recommend stocks, bonds, and other securities depend on our ability to recommend securities that perform well over time. Our recommendations may not achieve your growth and/or income CUSTOMER S COPY - KEEP FOR YOUR RECORDS - PAGE 6 OF 12 expectations, and securities we select could decline in value. There can be no assurance that any of the investment objective/risk exposure combinations will achieve their stated goals, and clients could and do lose money. Tax Advantaged/Low: This account should generally be weighted in favor of investments providing tax advantages with an emphasis on safety of principal, including the use of guaranteed municipal investments, forgoing potentially higher yields and returns. Tax Advantaged/Moderate: This account should generally be weighted in favor of investments providing tax advantages with growth potential and the possibility of higher yields, with moderate risk to income production and principal, including non-insured or non-rated municipal investments. Tax Advantaged/High: This account should generally be weighted in favor of investments providing tax advantages with aggressive and speculative income producing bond, fixed income and/or equity investments with the acceptance of risk of possible loss of income production and principal. This account will invest in below investment grade or non-rated securities with an emphasis on the acceptance of higher risk for potentially higher yields and returns. Safety of principal is not a primary objective. Income/Low: This account should generally be weighted in favor of conservative income producing bond, fixed income, and/or equity investments with an emphasis on safety of principal, forgoing potentially higher yields and returns. Income/Moderate: This account should generally be weighted in favor of income producing bond, fixed income, and/or equity investments with growth potential and the possibility of higher yields, with moderate risk to income production and principal. Income/High: This account should generally be weighted in favor of aggressive and speculative income producing bond, fixed income and/or equity investments with the acceptance of risk of loss of income production and principal. This account may invest in below investment grade or non-rated securities with an emphasis on the acceptance of higher risk for potentially higher yields and returns. Safety of principal is not a primary objective, but rather the generation of income is the primary objective. Income with Growth/Low: This account should generally be weighted in favor of a blend of conservative income producing and equity investments with an emphasis on preservation of principal while forgoing potentially higher yields and returns. Income with Growth/Moderate: This account should generally be weighted in favor of a blend of income producing and equity investments with the acceptance of moderate risk to income production. This account seeks preservation of principal with an emphasis on both current income and potential capital growth. Income with Growth/High: This account should generally be weighted in favor of aggressive and speculative domestic and foreign income and equity investments with the acceptance of loss of income production and principal. This account places an emphasis on the acceptance of higher risk for potentially higher yields and/or returns. Growth/Low: This account should generally be weighted in product or product features which allow for some level of participation in the market, but with limited exposure to risk through principal protection, indices linked products, or similar features that mitigate investment risk. Growth/Moderate: This account should generally be weighted in favor of long-term growth of capital with the acceptance of moderate risk relative to principal and earnings. The account could be invested in up to 100% in equities with little or no emphasis on the generation of income. Growth/High: The primary objective of this account is capital appreciation through investments in domestic and foreign aggressive and speculative equity investments with an emphasis on the acceptance of higher risk for potentially higher yields and/or returns. Safety of principal is not an important objective and 100% of the account could be invested in aggressive and speculative securities at any time. Little to no emphasis is placed on generation of current income. Speculation/High: This account would generally be invested in speculative, non-investment grade, derivative, unrated, and/or high-risk investments, perhaps on a short-term basis. Emphasis is placed on maximum capital appreciation utilizing riskier investment strategies, understanding the potential for loss of principal, earnings, and income production. Safety of principal and income production are not objectives.
8 Bond and Bond Fund Disclosure. Bond investors should take note that investing in bonds or bond funds is subject to risks. Generally, investments offering potential higher returns are accompanied by a higher degree of risk. The market value of a bond or bond fund may fluctuate in response to the following: changing interest rates and credit risk assessments, inflation, currency fluctuations, economic, political or social events in the United States or abroad. Lower quality or longer maturity bonds may be subject to greater price fluctuations than higher quality or shorter maturity bonds. In the case of bond funds, customers should be aware that the return of principal is not guaranteed, due to the fluctuation in the net asset value of the fund that is caused by changes in the price of specific bonds held in the fund and due to the buying and selling of bonds within the fund by its investment adviser. Accuracy of Account Information. A copy of your New Account Agreement, including your account information, will be supplied to you by your Representative. It is your responsibility to review this document and ensure that the information contained on the form, including your Investment Objectives and Risk Exposure, is correct and updated as needed. If the information on the Agreement is not correct, including your Investment Objectives and Risk Exposure, please make the corrections on the form and supply a copy to INVEST or notify us via phone. Please also notify your Representative or INVEST of any changes to the information contained on the Agreement that take place after the account is opened. To update account information, please contact INVEST at (800) , option 1, then option PRE-DISPUTE ARBITRATION DISCLOSURES THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE. BY SIGNING AN ARBITRATION AGREEMENT, THE PARTIES, WHICH INCLUDE YOU AS THE CUSTOMER/CLIENT, AGREE AS FOLLOWS: (A) ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED. (B) ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED. (C) THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS. (D) THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD, UNLESS, IN AN ELIGIBLE CASE, A JOINT REQUEST FOR AN EXPLAINED DECISION HAS BEEN SUBMITTED BY ALL PARTIES TO THE PANEL AT LEAST 20 DAYS PRIOR TO THE FIRST SCHEDULED HEARING DATE. (E) THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY. (F) THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT. (G) THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT. 20. AGREEMENT TO ARBITRATE CONTROVERSIES FOR MYSELF AND ALL PARTIES CLAIMING THROUGH ME, I AGREE THAT ALL CONTROVERSIES WHICH MAY ARISE BETWEEN US CONCERNING ANY TRANSACTION(S), OR THE CONSTRUCTION, PERFORMANCE OR ANY BREACH OF THIS OR ANY OTHER AGREEMENT OR DUTY BETWEEN US, WHETHER ENTERED INTO PRIOR, OR SUBSEQUENT, TO THE DATE HEREOF, INCLUDING CLAIMS AGAINST ANY CLEARING FIRM, AFFILIATED OR UNAFFILIATED ENTITY SHALL BE DETERMINED BY ARBITRATION PURSUANT TO THE FEDERAL ARBITRATION ACT, BEFORE FINRA DISPUTE RESOLUTION, AND IN ACCORDANCE WITH ITS RULES. NO PERSON SHALL BRING A PUTATIVE OR CERTIFIED CLASS ACTION TO ARBITRATION, NOR SEEK TO ENFORCE ANY PRE- DISPUTE ARBITRATION AGREEMENT AGAINST ANY PERSON WHO HAS INITIATED IN COURT A PUTATIVE CLASS ACTION; OR WHO IS A MEMBER OF A PUTATIVE CLASS WHO HAS NOT OPTED OUT OF THE CLASS WITH RESPECT TO ANY CLAIMS ENCOMPASSED BY THE PUTATIVE CLASS ACTION UNTIL: I. THE CLASS CERTIFICATION IS DENIED; OR II. THE CLASS IS DECERTIFIED; OR III. THE CUSTOMER IS EXCLUDED FROM THE CLASS BY THE COURT. SUCH FORBEARANCE TO ENFORCE AN AGREEMENT TO ARBITRATE SHALL NOT CONSTITUTE A WAIVER OF ANY RIGHTS UNDER THIS AGREEMENT EXCEPT TO THE EXTENT STATED HEREIN. NEW ACCOUNT QUALIFICATIONS/DISCLOSURE STATEMENT Client: The following information and disclosures are provided for your benefit, protection and understanding so that you can make an informed investment decision. I. YOUR RELATIONSHIP TO INVEST FINANCIAL CORPORATION A. Acting through your Representative, you have appointed INVEST as your agent for the purpose of carrying out your directions with respect to the purchase or sale of securities; as such, INVEST is authorized to open or close brokerage accounts, place and withdraw orders and take such other steps as are reasonable to carry out your direction. B. An account will be deemed to have been opened by INVEST on your behalf upon the completion of the New Account Application and Customer Agreement and its acceptance by INVEST. C. INVEST will recognize only those transactions which are executed with its knowledge, control and consent and which are duly reflected on its books and records. D. INVEST shall have sole discretion to accept your securities orders. INVEST reserves the right to require a deposit before accepting or executing such orders. E. Important Notice for California Residents Pursuant to California state law (Part 3, Title 10 Chapter 7), National Financial Services LLC, as custodian of your assets, may be required to transfer your assets to the state of California in the event that no activity occurs within the statutorily defined time period. The state law defines the time period as 24 to 30 months where there is no activity within the account, or communication between the account owner and the financial institution. II. SERVICES OFFERED BY YOUR REPRESENTATIVE A. Your Representative has engaged INVEST solely to make offers to buy or sell securities and insurance products and your Representative has no express, implied or apparent authority to contract otherwise on behalf of INVEST. B. Your Representative will only be empowered to place an order for you or your authorized delegate based upon a review of your financial condition and objectives as shown on the New Account Application and Customer Agreement. Should you initiate an order with characteristics in a greater relative risk category than recorded on the New Account Application and Customer Agreement, such order will be deemed an amendment to your objectives for that transaction. C. Your Representative is licensed to sell securities and/or insurance products on a commission basis. However, in order to effect proper due diligence and suitability in determining whether or not such product sales are warranted, he/she may provide certain Financial Planning related services incidental to his/her role as your financial services professional. Such services typically involve advising you and your family regarding the management of your financial resources based upon an analysis of your needs. All recommendations, which are implemented in the form of securities or insurance purchases, will cause the Representative to be compensated. D. Separate, fee-based financial planning and investment advisory services may be offered by your Representative pursuant to the registration and disclosure requirements of the Investment Advisers Act of III. INVESTMENT RISK DISCLOSURE UNAUTHORIZED AND PROHIBITED ACTS You must take responsibility in preventing unauthorized acts within your control by adhering to all of the following: A. Please make payment payable to one of the following parties, as instructed by your Representative: A mutual fund, variable product sponsor, or insurance Carrier, as instructed in the prospectus or offering memorandum ( Offering Document ); a partnership s escrow agent or to the partnership as instructed in the Offering Document; or INVEST s Clearing Firm, National Financial Services LLC. No payments should be made payable to a Representative or entity not listed above. B. Please pay for all security purchases by utilizing a traceable instrument (e.g., certified check, personal check, etc.). DO NOT deliver cash or money orders to the Representative. CUSTOMER S COPY - KEEP FOR YOUR RECORDS - PAGE 7 OF 12