BUSINESS BROKERAGE APPLICATION

Transcription

1 COMPLETE YOUR E*TRADE APPLICATION IN THREE EASY STEPS The Business Brokerage Application you requested begins on the following page To complete your application, simply: 1 SCROLL DOWN AND FILL OUT EACH FIELD BY TYPING IN THE APPROPRIATE INFORMATION If you d like to complete the application by hand, skip this step and move on to Step 2 2 ONCE YOU HAVE PROVIDED THE REQUESTED INFORMATION, REVIEW YOUR APPLICATION TO ENSURE IT IS COMPLETE AND PRINT IT BY CLICKING THE BUTTON ON THE TOP TOOLBAR 3 SIGN AND DATE YOUR APPLICATION, AND MAIL IT TO THE APPROPRIATE ADDRESS: By overnight mail: E*TRADE Securities LLC Harborside Financial Center 501 Plaza 2 34 Exchange Place Jersey City, NJ General Fax Number: From Outside the US: By regular mail: E*TRADE Securities LLC PO Box 484 Jersey City, NJ General Fax Number: From Outside the US: *te: Please include a Fax Cover Sheet when submitting documents by facsimile tarized, certified or original documents cannot be submitted by facsimile and should be mailed 1

2 If your application requires additional documents, please be sure to enclose them with your application Please refer to the chart below to determine if additional documents are required: Important note: If we are unable to verify your company, we will also need a copy of IRS Letter 147C which validates your company's Tax ID number You can obtain this letter by contacting the IRS's Business and Specialty Tax Line at IF You are applying for a Corporation Account You are applying for a Limited Liability Company Account You are applying for a Sole Proprietorship Account You are applying for a Partnership Account / Limited Partnership Account / Limited Liability Partnership Account You are applying for a n-profit/n-incorporated Organization REQUIRED DOCUMENTS One of the following documents: Certificate of Incorporation, most recent tax return, or annual report filed with the State Corporation Commission Section 9 of this application also must be notarized Articles of Organization LLC Agreement Section 9 of this application must be completed but notarization not required If using a Tax ID number, two of the following documents: o o o Business License Fictitious name registration Certificate of registration of trade name Section 9 of this application not required For cash accounts: Partnership Agreement or Fictitious name registration For Margin and/or Options accounts: Partnership Agreement (the Agreement must specify the ability to engage in Margin and/or Options trading) Original application is required Faxes not accepted Please te: If the account will have Margin or Options trading, either the Articles or Agreement must specify the ability to engage in such trading Section 9 of this application must be completed but notarization not required Section 9 of this application must be completed but notarization not required One of the following documents: 501(c)(3) IRS letter or IRS Form 990-N A board resolution detailing all current Officers, Members, Partners, and/ or the Owners of the Applicant One of the following documents: Articles of Incorporation, Articles of Organization If non-profit/non-incorporated organization, Charter, Constitution or other organizing documents Section 9 of this application also must be notarized Original application is required Faxes not accepted BAA-P62

3 The Emergency Economic Stabilization Act of 2008 included new tax reporting requirements affecting certain E*TRADE business accounts starting tax year 2012 The IRS also released an updated version of Form W-9 (Request for Taxpayer Identification Number and Certification) in January 2011 If your federal tax classification is an S Corporation your account is subject to IRS FORM 1099-B reporting for the sale of certain securities acquired on or after January 1 st 2012 If your federal tax classification is a C Corporation your account is not subject to IRS FORM 1099-B reporting If your federal tax classification is not a corporation then your account is subject to IRS FORM 1099 (eg, Form 1099-DIV,1099-INT, 1099-B) reporting E*TRADE Financial is required to track and to report adjusted cost basis information to their clients and to the Internal Revenue Service (IRS) For more information regarding the new IRS tax reporting changes < In accordance with Canada Revenue Agency (CRA) regulations E*TRADE is required to deduct a withholding tax rate of 25% on taxable dividend payments corresponding to specified Canadian security holdings In order to be eligible to participate in a reduced tax rate from the CRA on specified dividend income payments download one of the following Declaration of Eligibility For Benefits Under A Tax Treaty Forms (ie Form NR301, Form NR302, or Form NR303) that corresponds to the type of business account you are applying for at and return it to E*TRADE along with your account application for review and approval For more information regarding dividend withholding tax or CRA tax forms, please visit the Canada Revenue Agency website at E*TRADE does not provide tax or legal advice The tax information contained herein is provided for informational purposes only Please consult a tax advisor regarding your specific circumstances 3

4 IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you We may also ask to see your driver s license or other identifying documents 1 CHOOSE YOUR ACCOUNT TYPE AND APPROPRIATE FEDERAL TAX CLASSIFICATION Corporation Partnership Limited Partnership Limited Liability Partnership C Corporation C Corporation C Corporation C Corporation S Corporation S Corporation S Corporation S Corporation Partnership Partnership Partnership Sole Proprietorship Individual n-profit 501(c)(3) C Corporation Limited Liability Company Partnership n-incorporated Organization Other n-profit S Corporation Single-member LLC (SMLLC) 2 ENTER INFORMATION ABOUT THE BUSINESS (PLEASE PRINT) Official Name of the Entity Registration Address(cannot be a PObox) Mailing Address (if different from above, PO box may be used) Country Code Business Phone Tax ID Number or Social Security Number of Sole Proprietor If Single -member LLC (SMLLC) and using the sole members SSN, please review and acknowledge below: By checking this box, I confirm that the company designated in this section is a single member limited liability company that has no employees or excise tax obligations The Company uses as its taxpayer identification number my social security number since I am the sole member of the Company In addition, I hereby confirm that state law does not require that the Company have a federal employer identification number nor is such a number required for the Company to open any bank accounts Please utilize my social security number as the taxpayer identification number for the Company Industry in which the business operates Business Type If you selected "Other Industry" above, please specify Industry and Business Type 4

5 3 ENTER INFORMATION ABOUT AUTHORIZED PERSONS (PLEASE PRINT) PRIMARY AUTHORIZED PERSON CO-AUTHORIZED PERSON, IF APPLICABLE Name Mr Mrs Ms Dr Mr Mrs Ms Dr First Middle Initial Last First Middle Initial Last Name Jr Sr Esq Other Jr Sr Esq Other Title Title Home Street Address (cannot be a PO box) Home Street Address (cannot be a PO box) Mailing Address (if different from above, PO Box may be used) Mailing Address (if different from above, PO Box may be used) Country Code Best Daytime Phone Country Code Business Phone Country Code Best Daytime Phone Country Code Business Phone Address (required for account updates) Address (required for account updates) Social Security or Tax ID Number of Birth (mm/dd/yyyy) Social Security or Tax ID Number of Birth (mm/dd/yyyy) IF YOU ARE NOT A US RESIDENT, PLEASE PROVIDE THE FOLLOWING INFORMATION Passport Number Passport Country of Issuance Passport Number Passport Country of Issuance Country of Legal Residence (please attach Form W-8BEN) Country of Legal Residence (please attach Form W-8BEN) NOTE: If you are a non-us resident, please attach a photocopy of your passport or government-issued identification We cannot open your account without this documentation IF YOU ARE NOT A US CITIZEN, PLEASE PROVIDE THE FOLLOWING INFORMATION Country of Citizenship (please attach Form W-8BEN) Country of Citizenship (please attach Form W-8BEN) EMPLOYMENT STATUS Employment Status Employed Self-employed* Retired Student t Employed Employment Status Employed Self-employed* Retired Student t Employed Employer Specific Occupation Employer Specific Occupation Line of Business* (this box must be filled-in for self-employed persons) Line of Business* (this box must be filled-in for self-employed persons) Business Street Address Business Street Address Are you employed by a registered broker-dealer, a securities exchange, or the FINRA? Are you employed by a registered broker-dealer, a securities exchange, or the FINRA? (you must submit a compliance letter with this application) (you must submit a compliance letter with this application) Are you an officer, 10% shareholder or policymaker of a publicly held company? Are you an officer, 10% shareholder or policymaker of a publicly held company? (specify companies) (specify companies) Do you have accounts at other brokerage firms or mutual fund companies? Do you have accounts at other brokerage firms or mutual fund companies? Full Commission Discount (traditional) Full Commission Discount (traditional) 5

6 4 BENEFICIAL OWNERSHIP INFORMATION (PLEASE PRINT) A beneficial owner is someone who has a level of control over, or entitlement to, the funds or assets in an account that enables the individual directly or indirectly to control, manage or direct the account Is there one or more beneficial owners who controls, manages or directs 10% or more of the account? If YES, please provide the information requested below for each of the beneficial owners with 10% or more ownership CURRENT BENEFICIAL OWNER 1 Mr Mrs Name (first, middle initial, last) Ms Dr Entity/Company Name CURRENT BENEFICIAL OWNER 2 Mr Mrs Name (first, middle initial, last) Ms Dr Entity/Company Name of Birth (mm/dd/yyyy) Country of Citizenship of Birth (mm/dd/yyyy) Country of Citizenship US Federal ID SSN TIN Percentage of Ownership US Federal ID SSN TIN Percentage of Ownership Street Address Street Address City State (USA only) US Postal/Zip Code City State (USA only) US Postal/Zip Code Foreign Province/Region Name or Code Foreign Postal Code Foreign Province/Region Name or Code Foreign Postal Code Country Country IF THE BENEFICIAL OWNER IS NOT A US RESIDENT, PLEASE PROVIDE THE FOLLOWING INFORMATION Passport ID / Government ID Country of Issuance Government ID or Passport Passport ID / Government ID Country of Issuance Government ID or Passport Passport ID / Government ID Expiration Country of Legal Residence Passport ID / Government ID Expiration Country of Legal Residence CURRENT BENEFICIAL OWNER 3 Mr Mrs Name (first, middle initial, last) Ms Dr Entity/Company Name CURRENT BENEFICIAL OWNER 4 Mr Mrs Name (first, middle initial, last) Ms Dr Entity/Company Name of Birth (mm/dd/yyyy) Country of Citizenship of Birth (mm/dd/yyyy) Country of Citizenship US Federal ID SSN TIN Percentage of Ownership US Federal ID SSN TIN Percentage of Ownership Street Address Street Address City State (USA only) US Postal/Zip Code City State (USA only) US Postal/Zip Code Foreign Province/Region Name or Code Foreign Postal Code Foreign Province/Region Name or Code Foreign Postal Code Country Country 6

7 4 BENEFICIAL OWNERSHIP INFORMATION (Continued) CURRENT BENEFICIAL OWNER 3 CURRENT BENEFICIAL OWNER 4 IF THE BENEFICIAL OWNER IS NOT A US RESIDENT, PLEASE PROVIDE THE FOLLOWING INFORMATION Passport ID / Government ID Country of Issuance Government ID or Passport Passport ID / Government ID Country of Issuance Government ID or Passport Passport ID / Government ID Expiration Country of Legal Residence Passport ID / Government ID Expiration Country of Legal Residence 5 INFORMATION FOR FOREIGN FINANCIAL INSTITUTIONS IF YOU ARE NOT A BUSINESS ENTITY BASED IN THE UNITED STATES, PLEASE PROVIDE THE FOLLOWING INFORMATION The following questions are to determine if the entity is a foreign financial institution as defined by the US Bank Secrecy Act Geographic area(s) and/or countries in which the business operates: Is the business entity or the authorized persons licensed or registered or approved under any law in any jurisdiction which requires licensing, registration or approval in relation to the following businesses: a Dealing in securities: b Dealing in futures contracts: c Acting as an introducing or clearing broker: d Asset management: e Banking: Does the business entity import or export goods for commercial purposes? Does the business entity invest on behalf of or manage the investments of others? Does the entity do business in any manner with the Iranian government or any Iranian individuals or business entities? tice: Pursuant to US regulations issued under Section 311 of the USA PATRIOT Act, 31 CFR and , E*TRADE Financial Inc ( E*TRADE ) is reminding you that we are prohibited from establishing, maintaining, administering or managing a correspondent account for, or on behalf of, Commercial Bank of Syria or any of its subsidiaries (including Syrian Lebanese Commercial Bank), Banco Delta Asia or any of its subsidiaries (including, but not limited to, Delta Asia Credit Limited, and Delta Asia Insurance Limited), or any Burmese banking institution (collectively, the Specified Banks ) E*TRADE is also reminding you that you may not provide the Specified Banks with access to the correspondent account that you hold at our financial institution If we become aware that any of the Specified Banks is indirectly using the correspondent account you hold at E*TRADE, we will be required to take appropriate steps to prevent such access, including terminating your account 6 CREATE AN INVESTMENT PROFILE FOR THE ACCOUNT SECURITIES INDUSTRY REGULATIONS REQUIRE THAT WE COLLECT ALL OF THE FOLLOWING INFORMATION Overall Investment Objective for This Account (choose only one) Investment Experience Annual Income Approximate Net Worth (excluding primary residence) Approximate Liquid Net Worth (cash, stocks, etc) Capital preservation Minimize the potential for any loss of principal Income Provide current income rather than growth of principal Growth Increase investment value over time while accepting price fluctuations Speculation Assume the highest degree of risk for potentially higher returns What is the purpose and expected use of the account? (choose only one) Professional asset management Long term investment performance Investment account with transfers for expenses Other If Other (please specify) Excellent Good Limited ne $200,000+ $100,000 -$199,999 $50,000 -$99,999 $25,000 -$49,999 $15,000 -$24,999 $0 -$14,999 $1,000,000+ $500,000 -$999,999 $100,000 -$499,999 $50,000 -$99,999 $25,000 -$49,999 $0 -$24,999 $1,000,000+ $500,000 -$999,999 $200,000 -$499,999 $100,000 -$199,999 $50,000 -$99,999 $25,000 -$49,999 $15,000 -$24,999 $0 -$14,999 7

8 7 SELECT YOUR ACCOUNT FEATURES Earn Income on Your Uninvested Cash Select only one of the following choices for the uninvested cash in your account You may change your selection at any time For current rates and other information, go to wwwetradecom/rates Taxable Income Cash Balance Program E*TRADE Financial Extended Insurance Sweep Deposit Account (Offers daily interest and FDIC insurance up to $1,250,000) JP Morgan Liquid Assets Money Market Fund E*TRADE Class Shares* JPMorgan Liquid Assets Money Market Fund - Morgan Class (Limited Availability) Tax-Exempt Income* JPMorgan Municipal Money Market Fund - E*TRADE Class Shares (available only to applicants with a US address) JPMorgan California Municipal Money Market Fund - E*TRADE Class Shares (available in CA only) JPMorgan New York Municipal Money Market Fund - E*TRADE Class Shares (available only in CT, DC, FL, GA, NJ, NY, OH, PA and VA) JPMorgan Muni - Premier Class, JPMorgan CA Muni - Morgan Class & JPMorgan NY Muni - Morgan Class (Limited Availability) Cash Management Features E*TRADE Complete Platinum Visa Debit Card Free Check Writing <RXKDYHWKHRSWLRQWRKROGFDVKLQ\RXUDFFRXQW&DVK%DODQFH3URJUDPRUKDYH\RXU FDVKDXWRPDWLFDOO\WUDQVIHUUHGWRHLWKHUDPRQH\PDUNHWPXWXDOIXQGSURGXFWRUDQDFFRXQWDW DEDQNZKRVHGHSRVLWVDUHLQVXUHGE\WKH)',&FROOHFWLYHO\³6ZHHS3URJUDP Fordetailed informationofthegeneraltermsandconditionsoftheproductsavailablethroughthesweep Programgotowwwetradecom/sweepoptions The products available under the Sweep Program maychange at any time By signing this application, you are providing your written affirmativeconsenttohaveyourcashbalanceincludedinthesweepprogramwith theoptionselectedby you You also acknowledge that if no option is chosen, you will be deemed to haveselected the Cash Balance Program If you select the E*TRADE Financial Extended Insurance Sweep Deposit Account ( ESDA ), we will provide you a copy of the ESDA Program Customer Agreement which can also be found at wwwetradecom/esdaagreement as part of the Bank Sweep Account Agreements In the ESDA Program, your available cash balances will automatically sweep between the brokerage account and deposit accounts at participating depository institutions ( Program Banks ), with deposits at each Program Bank insured by the FDIC for up to $250,000 The total FDIC insurance coverage for cash in your ESDA account will be up to $1,250,000 per account ($2,500,000 for joint accounts) Any amount in excess of $1,250,000 ($2,500,000 for joint accounts) will not be covered by FDIC insurance You also should include other accounts you hold in the same title and capacity at any of the Program Banks in calculating FDIC insurance coverage limits, because coverage limits are set per customer across all accounts A list of Program Banks can be found at wwwetradecom/esda For more information regarding FDIC insurance coverage limits, please visit wwwfdicgov This sweep option is only available to the following persons: (i) customers with $10 million or more in E*TRADE Securities brokerage accounts; (ii) clients of investment advisers that have aggregate discretionary assets of $10 million or more in E*TRADE Securities brokerage accounts; and (iii) advisory clients of affiliated investment advisers Qualified customers should call us at ETRADE-1 upon account opening to sign up for this option *If you choose a money market fund, we will provide you the fund prospectus You can also see a prospectus online at wwwetradecom/prospectus E*TRADE Securities LLC receives compensation in connection with the purchase and holding of mutual fund shares by its customers For more information regarding these payments, please go to www etradecom/prospectus * Receive Your Account Documents Online For your convenience, account documents such as monthly statements and trade confirmations will be delivered to you electronically via a secure online file cabinet instead of by US mail We will notify you at the primary authorized person's address provided in section 3 whenever a new document is available This feature is provided automatically, unless declined below I would prefer to receive the following items by US mail: Monthly statements Trade confirmations Prospectuses Corporate report, proxies, and reorganization notices Tax documents will be sent to you by US mail unless you electronically consent to receiving them electronically Please go to wwwetradecom/edocs if you would like to receive your tax documents electronically You must provide your address in section 3 to receive electronic account documents You may change your delivery preferences at any time With respect to documents you elect to receive electronically, you agree to all the terms governing Electronic Delivery of Documents of the E*TRADE Securities Customer Agreement at www etradecom/custagree 8

9 8 FUND YOUR ACCOUNT Tell us how you ll make your initial deposit A $500 minimum is required for cash accounts ($2,000 for margin accounts) Check one or more of the following: I have enclosed a check for $ made payable to E*TRADE Clearing LLC My completed Account Transfer Form is attached I will transfer funds/securities from an existing account (For more information go to wwwetradecom/newtransfer) I plan to wire funds from another financial institution (For more information go to wwwetradecom/newtransfer) 9 PROVIDE A CERTIFICATE OF SECRETARY (REQUIRED FOR ALL ACCOUNTS EXCEPT SOLE PROPRIETORSHIPS; ONLY CORPORATIONS MUST NOTARIZE SECRETARY SIGNATURE) I, (name of secretary), the secretary of (name of business entity), an entity duly organized or already existing under the laws of (the state of entity, or country, if foreign entity) ("Company"), of hereby certify (1) that the person(s) whose signature(s) appear(s) in Section 10 is/are authorized to establish and maintain accounts with E*TRADE Securities on behalf of the Applicant and to bind the Applicant to the E*TRADE Securities Customer Agreement, pursuant to a duly adopted resolution of the board of directors; and (2) that the charter documents, agreements, and applicable laws governing the Applicant permit the establishment and maintenance of accounts, including the purchase, sale, or dealing in, through E*TRADE Securities as broker, securities, options (if allowed), and other assets, on margin (if allowed), or otherwise This certificate shall continue in force until revoked by the Company pursuant to a written notice addressed and delivered to E*TRADE Securities LLC at the address listed on the first page of the application Margin - By checking this box, the Applicant certifies that the Applicant is authorized to use margin either by (i) adoption of a specific resolution by the governing board of directors or managers documented in the minutes of the Applicant or (2) specific authority to use margin as provided in the charter documents, agreements or applicable governing law and documents of Applicant and Applicant authorizes the use of margin in this account in accordance with the Margin Agreement executed by duly authorized officers of Applicant Options - By checking this box, the Applicant certifies that the Applicant is authorized to use options either by (i) adoption of a specific resolution by the governing board of directors or managers documented in the minutes of the Applicant or (2) specific authority to use options as provided in the charter documents, agreements or applicable governing law and documents of Applicant and Applicant authorizes the use of options and other derivative securities in this account in accordance with the Option Agreement executed by duly authorized officers of Applicant NOTE: A MAJORITY OF THE OFFICERS, MEMBERS, PARTNERS, OR OWNERS MUST PROVIDE INFORMATION BELOW Signatures and details of any additional persons should be included on a second copy of this page The persons (officers, members, partners, or the owners of the Applicant) named below are duly elected officers, members, partners or owners of Applicant and have authorized the individuals whose signature(s) appear in Section 10 to act on behalf of the Applicant as authorized agents: Name Title SS# DOB Signature 2 Signature of Secretary tarization of Secretary's Signature (required only for corporations) State of, in the County of Subscribed and sworn before me by the above-named Secretary who is personally known to me or who has produced (type of identification) as identification, that the foregoing statements were true and accurate and made of his/her own free act and deed, on (date) 2 tary Public Signature tary-expiration Here tary-affix Stamp Here Print Name of tary Public 9

10 10 SIGN AND DATE YOUR APPLICATION I am of legal age to enter into this contract I acknowledge that I have received, read, and agree that the Applicant shall be bound by the terms and conditions as currently set forth in the E*TRADE Securities Customer Agreement and as amended from time to time The E*TRADE Securities Customer Agreement is available online at wwwetradecom/custagree or by calling I ACKNOWLEDGE THAT E*TRADE SECURITIES DOES NOT PROVIDE INVESTMENT, TAX, OR LEGAL ADVICE I understand that you will supply my name to issuers of any securities held in the account so that the Applicant might receive any important information regarding them, unless I notify you in writing not to do so I acknowledge I have been informed by E*TRADE Securities LLC, and that I understand, that securities products, such as stocks, bonds, options, mutual funds, and exchange-traded funds and other securities products and services offered by E*TRADE Securities are not insured by the FDIC, are not deposits or other obligations of, and are not guaranteed by either E*TRADE Bank, E*TRADE Savings Bank or any other bank, and are subject to investment risks, including the possible loss of the principal amount invested If you are exempt from backup withholding, enter in the Exemptions box, any code(s) that may apply to you Please see page 3 section, 'Exempt Payee Code' Exemptions (see instructions): Exempt payee code (if any): If you are exempt from backup withholding, enter in the Exemption Box, any code(s) that may apply to you See 'Exempt Payee Code' on page 3 of the instructions I UNDERSTAND THAT THIS ACCOUNT IS GOVERNED BY A PREDISPUTE ARBITRATION CLAUSE I acknowledge that I have received and read a copy of the E*TRADE SECURITIES CUSTOMER AGREEMENT which contains a pre-dispute Arbitration Agreement at Section 8 Under penalties of perjury, I certify that: 1 The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2 I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3 I am a US citizen or other US person (defined below), and 4 The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct Certification instructions You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return For real estate transactions, item 2 does not apply For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN Certification Instructions I am not a US individual or entity and have attached Form(s) W-8 to this application to claim foreign status or treaty benefits The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding 2 2 Signature of Primary Authorized Person Signature of Co-Authorized Person Printed Name and Title Printed Name and Title The E*TRADE Financial family of companies provides financial services that include trading, investing, and related banking products and services to retail investors Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC Accounts are carried by an affiliate, E*TRADE Clearing LLC, Member FINRA/SIPC E*TRADE Securities and E*TRADE Clearing are separate but affiliated companies 2014 E*TRADE Financial Corporation All rights reserved E*TRADE Financial is a registered trademark and the E*TRADE Financial logo is a trademark of E*TRADE Financial Corporation 10

11 11 MARGIN BORROWING AND OVERDRAFT PROTECTION AGREEMENT A margin account gives you the flexibility to borrow from E*TRADE Securities using the assets in your account as collateral Proceeds may be used to purchase additional securities, as overdraft protection, or for any other purpose Margin transactions involve additional risks, including the risk that you could lose more money than you deposit in your account For more information, including current margin interest rates and the FINRA Margin Disclosure Statement, visit wwwetradecom/margin See section 10 of the E*TRADE Securities Customer Agreement at wwwetradecom/custagree for more information about your responsibilities Please read and sign the Margin Disclosure Statement shown below if you wish to add Margin Borrowing and Overdraft Protection to this account Margin Disclosure Statement E*TRADE Securities LLC and its clearing broker, E*TRADE Clearing LLC, are furnishing this statement to you to provide some basic facts about purchasing securities on margin and to alert you to the risks involved with trading securities in a margin account Before trading stocks in a margin account, you should carefully review the margin agreement provided by us Contact E*TRADE Securities regarding any questions or concerns you may have with your margin account(s) When you purchase securities, you may pay for the securities in full or you may borrow part of the purchases price from your brokerage firm If you choose to borrow funds from your firm, you will open a margin account with the firm The securities purchased are the firm s collateral for the loan to you If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result the firm can take action, such as issue a margin call and/or sell securities in your account, to maintain the required equity in the account It is important that you fully understand the risks involved in trading securities on margin These risks include the following 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 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 be responsible for any shortfall 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 Most firms will attempt to notify their customers of margin calls, but they are not required to do so However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to the customer You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell to protect its interests The firm can increase its house maintenance margin requirements at any time and is not required to provide you with advance written notice These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call Your failure to satisfy the call may cause the firm to liquidate or sell securities in your account You are not entitled to an extension of time on a margin call Although an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to an extension I understand that my account, if approved, will be upgraded to a margin account I acknowledge that securities held in my margin account may be pledged, repledged, hypothecated, or rehypothecated for any amount due E*TRADE Clearing in my account(s) or for a greater amount which E*TRADE Clearing, at its sole discretion, may deem necessary I also acknowledge that my securities may be loaned to E*TRADE Clearing or loaned out to others and that E*TRADE Clearing may receive compensation in connection with lending my securities 2 2 Signature of Primary Authorized Person Signature of Co-Authorized Person Printed Name Printed Name For E*TRADE Securities Use Only I have received this application and believe the account is suitable for: Margin Cash Approval 11

12 OPTIONS TRADING APPLICATION OPTIONAL: Complete this form only if you would like to apply to add options trading capability to this account Visit wwwetradecom/options to learn more about the risks and rewards of options trading Options Activity Select only one box If no box is selected, you will be considered for Level One activity only Level One: Capital Preservation/ Income Covered Calls, including: Selling Covered Calls against stocks held long in your brokerage account Buy-writes(simultaneously buy a stock and write a covered call) Covered call roll-ups/roll-downs (buy one expiration sell another expirations) Level Two: Growth Level One, plus: Married puts Long calls Long puts Long straddles Long Strangles Cash-secured puts Level Three: Growth Level Two, plus: Equity debit spreads Equity credit spreads Index debit spreads Index credit spreads Equity calendar/diagonal spreads (long positions only) American-style Index Calendar/diagonal spreads (long only) (Level 3 accounts require you to sign the Margin Borrowing and Overdraft Protection form in Section 9) Level Four: Speculation Level Three, plus: Naked equity calls Naked index calls Naked index puts (Level 4 accounts require you to sign the Margin Borrowing and Overdraft Protection form) PRIMARY AUTHORIZED PERSON Marital Status Single Married Divorced Number of Dependents (including self) Other: Widowed CO-AUTHORIZED PERSON, IF APPLICABLE Marital Status Single Married Divorced Widowed Number of Dependents (including self) Other: Options Investment Knowledge Options Investment Knowledge ne Limited Good Excellent ne Limited Good Excellent Options Trading Experience Options Trading Experience ne Covered Calls Covered Puts Purchases ne Covered Calls Covered Puts Purchases Spreads Uncovered Calls Uncovered Puts Spreads Uncovered Calls Uncovered Puts ANY SECTION LEFT BLANK WILL BE ASSUMED TO BE ZERO OR NONE Years of Experience ANY SECTION LEFT BLANK WILL BE ASSUMED TO BE ZERO OR NONE Years of Experience Stocks: yrs Bonds: yrs Stocks: yrs Bonds: yrs Options: yrs Futures: yrs Options: yrs Futures: yrs Total Transactions per Year Stocks Bonds Options Futures Total Transactions per Year Stocks Bonds Options Futures Average Transaction Size $25,000+ $10,000-$24,999 0-$9,999 Average Transaction Size $25,000+ $10,000-$24,999 0-$9,999 12

13 OPTIONS TRADING APPLICATION Special Statement for Uncovered Options Writers There are special risks associated with uncovered options writing which expose the investor to potentially significant loss Therefore, this type of strategy may not be suitable for all customers approved for options transactions The potential loss of uncovered call writing is unlimited The writer of an uncovered call is in an extremely risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price As with writing uncovered calls, the risk of writing uncovered put options is substantial The writer of an uncovered put option bears a risk of loss if the value of the underlying instrument declines below the exercise price Such loss could be substantial if there is a significant decline in the value of the underlying instrument Uncovered options writing is thus suitable only for the knowledgeable investor who understands the risks, has the financial capacity and willingness to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements In this regard, if the value of the underlying instrument moves against an uncovered writer s options position, the investor s broker may request significant additional margin payments If an investor does not make such margin payments, the broker may liquidate stock or options positions in the investor s account with little or no prior notice in accordance with the investor s margin agreement For combination writing, where the investor writes both a put and a call on the same underlying instrument, the potential risk is unlimited If a secondary market in options were to become available, investors could not engage in closing transactions, and an options writer would remain obligated until expiration or assignment The writer of an American-style option is subject to being assigned an exercise at any time after he has written the option until the option expires By contrast, the writer of a European-style option is subject to exercise assignment only during the exercise period It is expected that you read the Characteristics and Risks of Standardized Options booklet, which we have provided to you and can be found at wwwetradecom/optionsagree In particular, please direct your attention to the chapter entitled Principal Risks of Options Positions This statement is not intended to enumerate all of the risk entailed in writing uncovered options I agree not to enter into any options transactions until I have received, read, and understood the disclosure document entitled Characteristics and Risks of Standardized Options, which can be found at wwwetradecom/optionsagree I am aware of the special risks and obligations of options trading I have read, understood, and agree to be bound by the E*TRADE Securities options trading terms and conditions outlined in section 10 of the E*TRADE Securities Customer Agreement which can be found at wwwetradecom/custagree I also agree that I am bound by it as it is currently in effect and as it is amended from time to time IMPORTANT: Section 10 of the Business Brokerage Application must also be signed in order for the account to be opened You cannot use this application to upgrade an existing account If you would like to add options trading capability to an existing account, please use the Margin/Option Account Upgrade Form, which can be found at wwwetradecom/forms 2 2 Signature of Primary Authorized Person Signature of Co-Authorized Person For E*TRADE Securities Use Only I have received this application and believe the account is suitable for: Approval Options Level One Options Level Two Options Level Three Options Level Four System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, and system performance The E*TRADE Financial family of companies provides financial services that include trading, investing and related banking products and services to retail investors Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC Accounts are carried by an affiliate, E*TRADE Clearing LLC, Member FINRA/SIPC E*TRADE Securities and E*TRADE Clearing are separate but affiliated companies 2014 E*TRADE Financial Corporation All rights reserved E*TRADE Financial is a registered trademark and the E*TRADE Financial logo is a trademark of E*TRADE Financial Corporation 13