Schwab Bank High Yield Investor Checking® Account and Linked Schwab One® Brokerage Account Applications for Existing Schwab

Schwab Bank High Yield Investor Checking® Account and Linked Schwab One® Brokerage Account Applications for Existing Schwab Brokerage Account Holders Page 1 of 7 www.schwab.com | 1-800-435-4000

Use this form to convert your existing Schwab Brokerage account to a Schwab One Brokerage account with Charles Schwab & Co., Inc. (“Schwab”) and open a Schwab Bank High Yield Investor Checking account with Charles Schwab Bank (“Schwab Bank”). (Complete Sections 1, 2 and 4–9.) All account holders must be either U.S. citizens or U.S. resident aliens, and must also reside in the U.S. or one of its territories and provide a U.S. mailing address. For a Trust account, contact us for the appropriate form. Important Note About Power of Attorney (POA): If your existing account has a POA which you wish to retain, you will need to complete and sign a new Power of Attorney. Visit www.schwab.com/forms to download the form. Your High Yield Investor Checking account cannot be established until Schwab receives this paperwork.

1. Existing Account Number The registration of your Schwab One account and your linked High Yield Investor Checking account will be the same as the registration for your Schwab Brokerage account unless you choose to update your registration in Section 3. Only the following account registrations are eligible for High Yield Investor Checking: Individual, Joint Tenants With Right of Survivorship, Tenants in Common and Community Property.

Your Account Number

2. Existing Account Holder Information (Required) The information provided in this section will be used by Schwab to update your account information for your linked Schwab One Brokerage account. Any email subscriptions you may already have will not be changed. We respect your privacy. Schwab and Schwab Bank will use the information you provide to open and service your accounts, communicate with you, and provide information about products and services. Read about the privacy policy of Schwab at www.schwab.com/privacy and Schwab Bank at www.schwabbank.com/privacy. As required by federal law, Schwab and Schwab Bank will use the information provided to verify your identity. Existing Account Holder Name (First) (Middle) (Last)

Home/Legal Street Address (no P.O. boxes) City State Zip Code

Mailing Address (if different from above; P.O. boxes may be used) City State Zip Code

Home Telephone Number Business Telephone Number Cellular Telephone Number Email Address* (Required to update your account on the web.) ( ) ( ) ( ) Social Security/Tax ID Number Date of Birth (mm/dd/yyyy) Mother’s Maiden Name Are you known by any other name? Specify:

ID Number Place of Issuance Expiration Date (mm/dd/yyyy) ______Driver’s License State Military Country of Citizenship (Must list all.) Country of Legal Residence USA Other: ______Other: ______USA Other: ______Employment Status (Select only one.) Employer Name/Business Name Employed Self-Employed Retired Homemaker Student Not Employed Occupation (If you selected “Employed” or “Self-Employed,” select one option that best describes your occupation.) Business Owner/Self-Employed Financial Services/Banking Professional Military Consultant Executive/Senior Management Information Technology Professional Educator Other (specify): Medical Professional Other Professional Clerical/Administrative Services Legal Professional U.S. Government Employee (Federal/State/Local) Trade/Service (Labor/Manufacturing/Production) Accounting Professional Foreign Government Employee (Non-U.S.) Sales/Marketing Business Street Address City State Zip Code

*By providing your email address, you are consenting to receive email from Schwab and Schwab Bank. Information about opting out of certain email communications is provided at www.schwab.com/privacy.

Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products are offered by Charles Schwab & Co., Inc., member SIPC. Deposit and lending products and services are offered by Charles Schwab Bank, member FDIC and an Equal Housing Lender.

ST ©2017 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. ©2017 Charles Schwab Bank. All rights reserved. Member FDIC. Equal Housing Lender. CC1194115 (0717-7V5V) APP41806-13 (07/17) *APP41806-13=01* Page 2 of 7

2. Existing Account Holder Information (Required) (Continued) Schwab requires the following information to comply with securities industry regulations and to establish your Schwab One® Brokerage account: Are you affiliated with or employed by a stock exchange or member firm of an exchange or FINRA, or a municipal securities broker-dealer? No Yes (If “yes,” you must attach a letter from your employer approving the establishment of your account when submitting this application.) Are you a director, 10% shareholder or policy-making officer of a publicly held company? No Yes (If “yes,” enter company name ______and trading symbol ______.) Marital Status Number of Dependents Single Married Divorced Widowed

Existing Additional Account Holder (if applicable) Name (First) (Middle) (Last)

Home/Legal Street Address (no P.O. boxes) City State Zip Code

Mailing Address (if different from above; P.O. boxes may be used) City State Zip Code

Schwab requires the following information to comply with securities industry regulations and to establish your Schwab One Brokerage account: Are you affiliated with or employed by a stock exchange or member firm of an exchange or FINRA, or a municipal securities broker-dealer? No Yes (If “yes,” you must attach a letter from your employer approving the establishment of your account when submitting this application.) Are you a director, 10% shareholder or policy-making officer of a publicly held company? No Yes (If “yes,” enter company name ______and trading symbol ______.) Marital Status Number of Dependents Single Married Divorced Widowed

Investment Experience: None Limited Good Extensive Annual Income: Under $15,000 $15,000–$24,999 $25,000–$49,999 $50,000–$99,999 $100,000 or More Liquid Net Worth: Under $25,000 $25,000–$49,999 $50,000–$99,999 $100,000–$249,999 $250,000 or More Specify: ______*By providing your email address, you are consenting to receive email from Schwab and Schwab Bank. Information about opting out of certain email communications is provided at www.schwab.com/privacy.

3. Add an Additional Account Holder (If you want to add an additional account holder, complete this section and proceed to Section 4. Otherwise, skip to Section 4.) Account Registration (Select one.) Joint Tenants With Right of Survivorship—If one owner dies, his/her interest passes to the surviving owner(s). Tenants in Common—If one owner dies, his/her interest passes to his/her estate. Community Property—For married couples in AZ, CA, ID, LA, NM, NV, TX, WA and WI only. Laws vary by state. New/Additional Account Holder Name (First) (Middle) (Last)

Home/Legal Street Address (no P.O. boxes) City State Zip Code

Mailing Address (if different from above; P.O. boxes may be used) City State Zip Code

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

4. Required Information About the Account Overall Investment Objective of Account Capital Preservation Income Growth Speculation

Source of Funds (Select all that apply.) In this section, we’re collecting information about the categories (“sources”) of assets that will be held in your account. Please select all of the sources of the assets that will be deposited or held in your account, including the original sources of any assets that will be transferred into the account from another firm. Salary/Wages/Savings Investment Capital Gains Social Security Benefits Gifts Sale of Property or Business Gambling/Lottery Family/Relatives/Inheritance Other (please specify): ______

Purpose of Account (Select all that apply.) General Investing Investing for College Investing for Estate Planning Investing for Retirement Investing for Tax Planning Investment of Pooled Assets

Other (please specify): ______

5. Brokerage Features Margin A margin account allows you to borrow against your eligible securities. You can use a margin loan to purchase additional securities, to sell securities short, to obtain short-term financing or as a source of overdraft protection. To better understand the benefits and risks of margin, please refer to the Margin Borrowing at Schwab: Overview and Disclosure Statement and the Schwab One® Account Agreement. To learn more about margin, we encourage you to use the educational materials available at www.schwab.com/marginloans. Margin is automatically included unless you check this box. Do NOT add margin. Your Consent to Enroll in Schwab’s Cash Features Program The Cash Features Program is the service that we provide that permits the uninvested cash (the “Free Credit Balance”) in your brokerage account to earn income while you decide how those funds should be invested. The attached Cash Features Program General Terms and Conditions will inform you of the general terms and conditions of the products available through our Cash Features Program. By signing this Application, you consent to having the Free Credit Balance in your brokerage account included in the Cash Features Program. The current Cash Feature on your brokerage account will remain the same. You understand and agree that Schwab may (1) make changes to the terms and conditions of the Cash Features Program; (2) make changes to the terms and conditions of any Cash Feature; (3) change, add, or discontinue any Cash Feature; (4) change your investment from one Cash Feature to another if you become ineligible for your current Cash Feature or your current Cash Feature is discontinued; and (5) make any other changes to the Cash Features Program or Cash Feature as allowed by law. Schwab will notify you in writing of changes to the terms of the Cash Features, changes to the Cash Features we make available, or changes to the Cash Features Program prior to the effective date of the proposed change. Paperless Document Enrollment Here’s how paperless works: You will receive account statements, trade confirmations, shareholder materials, account agreements and related disclosures, and other regulatory documents, if available in paperless form, by email. For certain documents, including account statements, you will receive an email notification with a link to log on to our secure website to access your documents. For complete information, please see Important Information About Your Informed Consent to Receive Paperless Documents in the Appendix to this application. To opt for Paperless Documents, simply provide your email address in Section 2 (and Section 3, if necessary). The completion of your enrollment will depend on one of the following scenarios.

FOR CHARLES SCHWAB USE ONLY: Branch Office and DDA Number Account Number Customer ID Number Source Code

Approved By Print Name of Approver Date

5. Brokerage Features (Continued) Paperless Document Enrollment (Continued) Scenario 1: If you already have an account enrolled in Paperless Documents using the email address provided in Section 2 (and Section 3, if necessary), have logged on to Schwab.com in the past six months, and agree to the following, your paperless enrollment will be complete once your account is opened. • I have read and understood the Important Information About Your Informed Consent to Receive Paperless Documents in the Appendix to this application and consent to enrolling this account in Paperless Documents. • I understand that I will receive an email with my new account agreement and related disclosures. Or Scenario 2: If you do not have an existing account enrolled in Paperless Documents, are using a different email address, or have not logged on to Schwab.com in the past six months, we will send you an email after the account is opened. To complete enrollment, you will need to click the “I Consent” button in that email and/or follow the instructions to access Schwab.com. If you do not click the “I Consent” button, this account will not be enrolled in Paperless Documents and we will send your account agreement and related disclosures, as well as future regulatory documents, by postal mail. If you do not want to participate in Paperless Documents, please check the box below. No, do not enroll my account in Paperless Documents. Please send my regulatory documents via postal mail.

6. Authorization to Update Schwab Account By signing this application, I acknowledge that I declined the margin feature, I acknowledge that to the maximum extent provided by law, the have received and read a copy of the attached securities securing loans from Schwab may be securities products purchased or sold in a Application Agreement, which contains a lent to Schwab and lent by Schwab to others. I transaction with Schwab (i) are not insured by predispute arbitration provision. I acknowledge also acknowledge that if I trade “on margin,” I the FDIC; (ii) are not deposits or other obliga- that my signature signifies and constitutes my am borrowing money from Schwab, and that I tions of Charles Schwab and are not guaranteed agreement that this account and my relationship understand the requirements and risks by Schwab Bank; and (iii) are subject to with Schwab will be governed by the Application associated with margin borrowing as summa- investment risks, including possible loss of the Agreement and all incorporated agreements and rized in the Margin Disclosure Statement principal invested. disclosures, including, but not limited to, the included with this application. For purposes of this account application and the Schwab One® Account Agreement and the I also acknowledge that, while bank deposit attached Application Agreement, the terms “I,” Charles Schwab Pricing Guide, each as amended products available through Schwab—such as “me,” “my” and “Account Holder” refer to each from time to time (the “Agreement and certificates of deposit offered on Schwab CD person who signs this account application. The Disclosures”). I understand there are fees OneSource® and deposit products offered by terms “we,” “us,” “our” and “Schwab” refer to associated with establishing, maintaining, Charles Schwab Bank—are insured by the Charles Schwab & Co., Inc. The term “Schwab engaging in transactions in and transferring Federal Deposit Insurance Corporation (“FDIC”) Bank” refers to Charles Schwab Bank. assets out of this account. Unless I have

I certify, under penalty of perjury, that (1) the number shown on this Application is the correct Taxpayer Identification Number; (2) I am not subject to backup withholding due to a failure to report interest and dividend income; (3) I am a U.S. person (a U.S. citizen or U.S. resident alien); and (4) I am exempt from Foreign Account Tax Compliance Act (FATCA) reporting. I understand that if I have been notified by the IRS that I am subject to backup withholding as a result of dividend or interest underreporting and I have not received a notice from the IRS advising me that backup withholding is terminated, I must cross out item 2 above.

The Internal Revenue Service does not require your consent to any The Agreement with Schwab includes a predispute arbitration clause. provision of this document other than the certifications required to avoid You acknowledge receipt of the predispute arbitration clause contained backup withholding. in Section 15, pages 2 and 3, of the Application Agreement.

Signature(s) and Date(s) Required X Account Holder Signature Print Name Date X Additional Account Holder Signature Print Name Date

Please sign and date above in blue or black ink only. Your signature above will also serve as a signature card.

7. Required Information About the High Yield Investor Checking Account

Purpose of Account (Select all that apply.) General/Personal Expenses Educational Expenses General/Personal Savings Large Asset Purchase (Home, Car, etc.) Other (please specify): ______

8. High Yield Investor Checking Account Features Schwab Bank Bill Pay This online electronic bill payment feature is provided unless you check the box below. The feature is provided at no additional charge and will be activated after you fund your account. Do NOT add electronic bill payment. Overdraft Protection This feature automatically transfers funds from your linked Schwab One® Brokerage account, up to your Authorization Limit, including Available Margin Loan Value, to your High Yield Investor Checking account in order to provide you with coverage against insufficient funds. To discontinue this feature, please contact a Schwab representative after your account is open. Anticipated Activity On average, how many times per month do you anticipate making deposits, withdrawals, and/or transfers? (Select only one.) Less than 15 times per month 15 to 30 times per month 31 to 45 times per month More than 45 times per month

9. Fund Your Schwab Bank High Yield Investor Checking Account (Select one.) Schwab Bank Bill Pay will be activated, and checks will be sent, after you fund your High Yield Investor Checking account. A Visa® Platinum Debit Card will be sent upon account opening. Make a one-time electronic funds transfer (“ACH Transfer”) of $______(maximum $100,000) from your checking or savings account at another financial institution. Owners of the account at the other financial institution must match the owners of your High Yield Investor Checking account. Be sure to attach an original, preprinted, voided check or preprinted savings account deposit slip if you select this option. Make a one-time transfer of $______from your linked Schwab One Brokerage account. Make a check or money order payable to yourself, and mail it to Charles Schwab Bank at one of the following locations:

If you live in: Send standard mail to: Send overnight mail to: AK, AZ, CA, CO, HI, IA, ID, KS, MT, ND, NE, NM, NV, OK, OR, SD, Charles Schwab Bank Charles Schwab Bank TX, UT, WA, WY, Armed Forces America or Armed Forces Pacific P.O. Box 982600 1945 Northwestern Drive El Paso, TX 79998-2600 El Paso, TX 79912 AL, AR, CT, DC, DE, FL, GA, IL, IN, KY, LA, MA, MD, ME, MI, MN, Charles Schwab Bank Charles Schwab Bank MO, MS, NC, NH, NJ, NY, OH, PA, RI, SC, TN, VA, VI, VT, WI, WV, P.O. Box 628291 1958 Summit Park Drive, Suite 200 Armed Forces Europe, American Samoa, Guam, Marshall Islands, Orlando, FL 32862-8291 Orlando, FL 32810 Northern Mariana Islands or Puerto Rico

10. Schwab Bank High Yield Investor Checking® Account Terms These account terms are an agreement between Charles Schwab Bank (the “Bank”) and each account holder for a High Yield Investor Checking account. “I,” “me” and “my” refer to each account holder. All account holders are required to sign. By signing, I: (1) certify that I am of the age of majority in the (4) acknowledge that, unless I specifically stated commercially accepted method, to initially state in which I live, that I am legally otherwise, I will be enrolled in the Schwab fund my High Yield Investor Checking authorized to enter into this agreement and Bank Bill Pay service; account; I certify that the information that the personal information provided in this (5) agree to be subject to the terms and provided on the voided check or savings application, and during the application conditions of all documents associated with account deposit slip is correct and that I am process, is true and correct; my High Yield Investor Checking account upon authorized to transfer funds from the (2) acknowledge that the Bank will provide me account opening, and acknowledge that the specified account; I also understand that the with the following documents before account Bank advises me to read all the disclosure owners listed on the specified account that opening or before a service is provided: (a) documents prior to opening or using my will be debited must match the owners of my the Schwab Bank Deposit Account Agree- account; High Yield Investor Checking account; ment, which contains an arbitration provision (6) acknowledge that my High Yield Investor (8) authorize the Bank to inquire from any and the Terms and Conditions for the Checking account is linked with my broker- source, including a consumer reporting Schwab Bank Bill Pay service; (b) Schwab age account maintained at Charles Schwab agency, as to my identity (as required by Bank’s A Commitment to Your Privacy; (c) & Co., Inc., a registered broker-dealer, and I federal law), creditworthiness and ongoing Important Privacy Choice for Consumers, for authorize Charles Schwab & Co., Inc. to eligibility for the account and other informa- California residents only; and (d) the Schwab follow the instructions set forth in this tion at account opening, at any time Bank Deposit Account Pricing Guide; application, if applicable; throughout the life of the account, and (3) acknowledge that if the application is (7) authorize the Bank to initiate a one-time thereafter for debt collection or investigative approved, each account holder will receive debit entry (or credit entry in case of error) to purposes; and a Visa® Platinum Debit Card and the Visa the institution and account specified by my (9) understand if no activity occurs in the Debit Card Agreement once the account is attached voided check or savings account account within the time period specified by opened, which contains the terms and deposit slip, electronically or by other applicable state law, the account may be conditions that apply to this card; transferred to the appropriate state.

The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. Signature(s) and Date(s) Required X Account Holder Signature Print Name Date X Additional Account Holder Signature Print Name Date

All account holders must sign and date above in blue or black ink only.

These terms relate to your account and are part of the Schwab Bank Deposit Account Agreement between each account holder and Charles Schwab Bank (“Schwab Bank”). Please read and retain for your files.

High Yield Investor Checking Account Terms These account terms are an agreement between Charles Schwab Bank (the “Bank”) and each account holder for a High Yield Investor Checking account. “I,” “me” and “my” refer to each account holder. I: (1) certify that I am of the age of majority in the (4) acknowledge that, unless I specifically fund my High Yield Investor Checking state in which I live, that I am legally stated otherwise, I will be enrolled in the account; I certify that the information authorized to enter into this agreement and Schwab Bank Bill Pay service; provided on the voided check or savings that the personal information provided in this (5) agree to be subject to the terms and condi- account deposit slip is correct and that I am application, and during the application tions of all documents associated with my authorized to transfer funds from the process, is true and correct; High Yield Investor Checking account upon specified account; I also understand that the (2) acknowledge that the Bank will provide me account opening, and acknowledge that the owners listed on the specified account that with the following documents before account Bank advises me to read all the disclosure will be debited must match the owners of my opening or before a service is provided: (a) documents prior to opening or using my High Yield Investor Checking account; the Schwab Bank Deposit Account Agree- account; (8) authorize the Bank to inquire from any ment, which contains an arbitration provision (6) acknowledge that my High Yield Investor source, including a consumer reporting and the Terms and Conditions for the Checking account is linked with my broker- agency, as to my identity (as required by Schwab Bank Bill Pay service; (b) Schwab age account maintained at Charles Schwab federal law), creditworthiness and ongoing Bank’s A Commitment to Your Privacy; (c) & Co., Inc., a registered broker-dealer, and I eligibility for the account and other informa- Important Privacy Choice for Consumers, for authorize Charles Schwab & Co., Inc. to tion at account opening, at any time California residents only; and (d) the Schwab follow the instructions set forth in this throughout the life of the account, and Bank Deposit Account Pricing Guide; application, if applicable; thereafter for debt collection or investigative (3) acknowledge that if the application is (7) authorize the Bank to initiate a one-time purposes; and approved, each account holder will receive a debit entry (or credit entry in case of error) to (9) understand if no activity occurs in the Visa® Platinum Debit Card and the Visa Debit the institution and account specified by my account within the time period specified by Card Agreement once the account is opened, attached voided check or savings account applicable state law, the account may be which contains the terms and conditions that deposit slip, electronically or by other transferred to the appropriate state. apply to this card; commercially accepted method, to initially

This agreement relates to your account and is part of the Account Agreement between each account holder and Charles Schwab & Co., Inc. (“Schwab”). Please read and retain for your files.

Section 1: Scope of Agreement. Your agree- authorize Schwab to transfer assets between agree to pay or cause such funds to be paid ment with Schwab consists of the terms set your accounts when no written authorization is immediately to Schwab in order to satisfy your forth in this Application Agreement and the requested. indebtedness to Schwab. terms set forth in the Schwab One Account Section 5: Responsibility for Investment Section 8: Liquidations. Whenever it is Agreement, which incorporates the Charles Decisions. You agree that you and any agent necessary for our protection or to satisfy a Schwab Pricing Guide and a number of other under a power of attorney or Investment Advisor margin deficiency, debit or other obligation owed important disclosures. The Schwab One Account (if you have one) are solely responsible for us, we may (but are not required to) sell, assign Agreement is provided with this Application or at investment decisions in your Account, including and deliver all or any part of the property the opening of your Account. You agree to whether to buy or sell a particular security. securing your obligations, or close any or all contact Schwab if you do not receive the Unless required by law, or unless Schwab transactions in your Account. We may choose Schwab One Account Agreement. provides advice to you that is clearly identified which property to buy or sell, which transactions In addition, you may in the future receive from as an individualized recommendation for you, to close, and the sequence and timing of Schwab supplemental terms or disclosures that you understand that Schwab has no obligation liquidation. We may take such actions on pertain to certain account types, service to determine whether a particular transaction, whatever exchange or market and in whatever features and benefit packages. These supple- strategy or purchase or sale of a security is manner (including public auction or private sale) mental terms and disclosures, this Application suitable for you. Your obligation includes an that we choose in the exercise of our business Agreement and the Schwab One Account affirmative duty to monitor profits and stay judgment. You agree not to hold us liable for the Agreement are collectively referred to as the informed about your Account and your invest- choice of which property to buy or sell or of “Agreement and Disclosures.” You agree to read ments and respond to changes as you deem which transactions to close or for timing or the Agreement and Disclosures carefully and appropriate. manner of liquidation. retain copies for your records. Unless Schwab otherwise agrees with you in In certain circumstances we may, at our sole Section 2: Acceptance of Agreement and writing, Schwab does not have any discretionary discretion, liquidate your entire margin loan Disclosures. You agree that the Agreement and authority or obligation to review or make balance to satisfy a margin call. You agree not Disclosures govern all aspects of your relation- recommendations for the investment of to hold us liable for taking such action. ship with Schwab, including all transactions securities or cash in your Account. We may transfer property from any non-retirement between Schwab and you and all products and You acknowledge that Schwab does not provide brokerage account in which you have an interest services now or in the future offered through tax or legal advice. to any other brokerage accounts in which you Schwab. Schwab may rely on your use of Section 6: Payment of Indebtedness. You agree have an interest regardless of whether there are Schwab’s products and services as evidence of to make payment of any indebtedness related to other account holders on either account, if we your continued acceptance of the Agreement your Account, including, but not limited to, any determine that your obligations are not and Disclosures. such indebtedness that results from instruc- adequately secured or to satisfy a margin Section 3: Your Representations and Warranties. tions provided to Schwab by you, your agent or deficiency or other obligation. You agree to pay You represent and warrant that: (a) you are of any attorney-in-fact under a power of attorney or on demand any account deficiencies after legal age in the state in which you live and you Investment Advisor authorized to make liquidation, whether liquidation is complete or are authorized to enter into this Agreement; transactions in your Account. We may elect partial. (b) you have supplied accurate information in anytime, with or without notice, to make any All of the above may be done without demand your Account Application; (c) no one except the debit balance or other obligation related to your for margin or notice of purchase, sale, transfer Account Holders listed on the Account Applica- Account immediately due and payable. We may or cancellation to you. No demand for margin or tion (and if community property is held, the report any past-due account to a consumer and/ notice shall impose on Schwab any obligation to Account Holders’ spouses) has an interest in or securities credit reporting agency. We may make such demand or provide such notice to the Account; (d) no additional authorizations also refer your Account to a collection agency. you in the future. Any such notice or demand is from third parties are required for you to open Section 7: Granting a Lien on Your Accounts. hereby expressly waived, and no specific the Account and effect transactions therein; As security for the repayment of all present or demand or notice shall invalidate this waiver. (e) except as you have otherwise indicated on future indebtedness owed to us by each Account Section 9: Interest on Debit Balances. We your Account Application or in writing to us, Holder, each Account Holder grants to us a first, will charge and compound interest on your debit (i) you are not an employee of or affiliated with perfected and prior lien on, a continuing security balances (whether in a Margin or Cash Account) any securities exchange or member firm of any interest in, and right of set-off with respect to, according to our Disclosure of Credit Terms and exchange, the Financial Industry Regulatory all property that is, now or in the future, held, Policies. Authority (“FINRA”), or any securities firm, bank, carried or maintained for any purpose in or trust company, or insurance company; and Section 10: Borrowing Money and Using through Schwab, and, to the extent of such Margin. All margin transactions are subject to (ii) you are not a director, 10% beneficial Account Holder’s interest in or through, any shareholder, policy-making officer, or otherwise our Disclosure of Credit Terms and Policies and present or future account with us or our our Margin Disclosure Statement. You agree not an “affiliate” (as defined in Rule 144 under the affiliates in which the Account Holder has an Securities Act of 1933) of a publicly traded to enter an order for a margin transaction until interest. In the event of a breach or default by you have read and understood the Disclosure of company; and (f) this Application Agreement, as you under this Agreement, Schwab will have the amended from time to time, is a legal, valid and Credit Terms and Policies and the Margin rights and remedies available to a secured credi- Disclosure Statement. binding obligation, enforceable against you in tor under all applicable laws in addition to the accordance with its terms. Section 11: Loan Consent. You agree that rights and remedies provided in this Agreement. property held in your Margin Account, now or in Section 4: Account Handling. Schwab will If you owe money to Schwab as the result of automatically hold all your securities purchased, the future, may be borrowed (either separately activity in your Account and there are assets or together with the property of others) by us sales proceeds, dividends and interest. Schwab available in any non-retirement brokerage will also release your name, address and (acting as principal) or by others. You agree that account that you hold at Schwab which could Schwab may receive and retain certain benefits securities positions to companies in which we fully or partially satisfy the debt, you agree that hold securities for your Account upon request, (including, but not limited to, interest on upon Schwab’s written demand, you will execute collateral posted for such loans) to which you unless you notify us otherwise in writing. If you all documents necessary to effect a transfer maintain more than one account at Schwab, you will not be entitled. You acknowledge that, in from your non-retirement brokerage account and certain circumstances, such borrowings could

ST ©2017 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. CC1194115 (0717-7V5V) APP41806-13 (07/17) Page 2 of 3 limit your ability to exercise voting rights or determining whether funds are available for any person who has initiated in court a putative receive dividends, in whole or in part, with transfer from your Account to your High Yield class action; or who is a member of a putative respect to the property lent. You understand Investor Checking account at Schwab Bank. class who has not opted out of the class with that for property that is lent by Schwab, the Further, transfers of funds from your Account respect to any claims encompassed by the dividends paid on such property will go to the are subject to Schwab’s minimum deposit putative class action until: borrower. No compensation or other reimburse- requirements. You and your Account may not 1. the class certification is denied; ments will be due to you in connection with such have any restrictions preventing Schwab from 2. the class is decertified; or borrowings. However, if you are allocated a using funds in your Account to satisfy a transfer substitute payment in lieu of dividends, you 3. the customer is excluded from the class instruction from Schwab Bank. If your Account by the court. understand that such a payment may not be becomes subject to a restriction, your eligibility entitled to the same tax treatment as may have for this feature may be revoked and you Such forbearance to enforce an agreement to been applied to the receipt of a dividend. You understand that Schwab Bank may close your arbitrate shall not constitute a waiver of any agree that Schwab is not required to compen- High Yield Investor Checking account. rights under this Agreement except to the extent stated herein. sate you for any differential tax treatment Transfers to Schwab Bank may result in debits between dividends and payments in lieu of in your Account. You acknowledge that you are Section 15: Arbitration Agreement. Any dividends. Schwab may allocate payments in responsible for all debits (and interest on debits) controversy or claim arising out of or relating to lieu of dividends by any mechanism permitted by in your Account, as described in further detail in (i) this Agreement, any other agreement with law, including by using a lottery allocation the Agreement and Disclosures. Your account Schwab, an instruction or authorization provided system. remains an obligation solely of Schwab. to Schwab or the breach of any such agree- Section 12: Linking Your Account to a High Likewise, your High Yield Investor Checking ments, instructions, or authorizations; (ii) the Yield Investor Checking Account at Schwab account remains an obligation solely of Schwab Account, any other Schwab account or Services; Bank. If you link your Account to a High Yield Bank. (iii) transactions in the Account or any other Investor Checking account held at Schwab Bank, Schwab account; (iv) or in any way arising from Section 13: Verification.You authorize Schwab the relationship with Schwab, its parent, you authorize Schwab to accept and follow to inquire from any source, including a consumer instructions received from Schwab Bank to subsidiaries, affiliates, officers, directors, reporting agency, as to your identity (as required transfer funds from your Account to your High employees, agents or service providers (“Related by federal law), creditworthiness and ongoing Third Parties”), including any controversy over the Yield Investor Checking account as set forth in eligibility for the Account (and that of your your Schwab Bank High Yield Investor Checking® arbitrability of a dispute, will be settled by spouse, if you live in a community property arbitration. Account Application and Schwab Bank Deposit state) at account opening, at any time through- Account Agreement. The provisions of the out the life of the Account, and thereafter for This arbitration agreement will be binding upon Agreements and Disclosures relating to checks debt collection or investigative purposes. and inure to the benefit of the parties hereto and and debit cards will not apply to the services their respective representatives, attorneys-in-fact, received from Schwab Bank. Section 14: Required Arbitration Disclosures. heirs, successors, assigns and any other persons Regulatory authorities require that any brokerage You authorize Schwab to act as your agent in having or claiming to have a legal or beneficial agreement containing a predispute arbitration interest in the Account, including court-appointed processing those instructions from Schwab agreement must disclose that this agreement Bank. You understand and agree that Schwab trustees and receivers. This arbitration agree- contains a predispute arbitration clause. This ment will also inure to the benefit of third-party has sole discretion to accept or deny, in whole Agreement contains a predispute arbitration or in part, any such instruction. You also agree service providers that assist Schwab in providing clause. By signing an arbitration agreement, the Services (“Third-Party Service Providers”) and that Schwab is not responsible for any errors in parties agree as follows: calculations or damages resulting from errors in such Third-Party Service Providers are deemed calculations or delays in transfers. In no event • All parties to this Agreement are giving up the to be third-party beneficiaries of this arbitration will Schwab be liable for any special, indirect or right to sue each other in court, including the agreement. consequential damages, even if we have been right to a trial by jury, except as provided by the The parties agree that this arbitration agreement informed of the possibility of such damages. rules of the arbitration forum in which a claim will apply even if the application to open the is filed. You authorize Schwab to act upon your requests Account is denied and will survive the closure of for Real-Time Funds Transfers (as defined in the • Arbitration awards are generally final and your Account and/or the termination of services Schwab Bank Deposit Account Agreement) from binding; a party’s ability to have a court reverse rendered under this Agreement. Schwab Bank. The maximum amount you may or modify an arbitration award is very limited. Such arbitration will be conducted by, and transfer will be calculated in the same way that • The ability of the parties to obtain documents, according to the securities arbitration rules Schwab calculates the Authorization Limit for witness statements and other discovery is and regulations then in effect of, the Financial brokerage checkwriting privileges as set forth in generally more limited in arbitration than in Industry Regulatory Authority (FINRA) or any the Schwab One® Account Agreement. By court proceedings. national securities exchange that provides a requesting a Real-Time Funds Transfer, you • The arbitrators do not have to explain the forum for the arbitration of disputes, provided understand that you may create a margin loan in reason(s) for their award unless, in an eligible that Schwab is a member of such national your brokerage account that may be subject to case, a joint request for an explained decision securities exchange at the time the arbitration daily interest charges. has been submitted by all parties to the panel is initiated. Any party may initiate arbitration by In order for transfers to occur, both your High at least 20 days prior to the first scheduled filing a written claim with FINRA or such eligible Yield Investor Checking account and your hearing date. national securities exchange. If arbitration before Schwab One Brokerage account must be open • The panel of arbitrators will typically include FINRA or an eligible national securities exchange and active and linked with each other. Target a minority of arbitrators who were or are is unavailable or impossible for any reason, Balance Transfers will be limited to your Authoriza- affiliated with the securities industry. then such arbitration will be conducted by, and tion Limit (as described in the Schwab One • The rules of some arbitration forums may according to the rules and regulations then in Account Agreement), excluding your Available impose time limits for bringing a claim in effect of, the American Arbitration Association Margin Loan Value (as defined in theSchwab arbitration. In some cases, a claim that is (AAA). If arbitration before the AAA is unavail- One Account Agreement). Overdraft Transfers will ineligible for arbitration may be brought able or impossible for any reason, the parties be limited to your Authorization Limit. in court. agree to have a court of competent jurisdiction appoint three (3) arbitrators to resolve any and If you have a debit balance in your Account, • The rules of the arbitration forum in which the Target Balance Transfers will not be made to all disputes or controversies between or among claim is filed, and any amendments thereto, the parties. Each party shall bear its own initial your High Yield Investor Checking account. shall be incorporated into this Agreement. Pending securities trades (including the arbitration costs, which are determined by the Automatic Investment Plan [AIP]), pending debits No person shall bring a putative or certified rules and regulations of the arbitration forum. to your Account, and pending transfers of funds class action to arbitration, nor seek to enforce In the event of financial hardship, the arbitration from your Account may not be considered in any predispute arbitration agreement against forum may waive certain costs in accordance

ST ©2017 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. CC1194115 (0717-7V5V) APP41806-13 (07/17) Page 3 of 3 with such rules. At the conclusion of the hearing, the arbitration specifically provide for the agree to not contest the admissibility or the arbitrators will decide how to assess the formal designation of the place at which the enforceability of Schwab’s electronically stored costs of the arbitration among the parties. arbitration is to be held. copy of such documents in any proceeding Any award the arbitrator makes shall be final (2) Entering into this Agreement constitutes between you and Schwab. and binding, and judgment on it may be entered consent to submit to the personal jurisdiction Section 17: Float. You agree that Schwab may in any court having jurisdiction. This arbitration of the courts of the state of California, U.S.A., retain as compensation for services your agreement shall be enforced and interpreted to interpret or enforce any or all of these Account’s proportionate share of any interest exclusively in accordance with applicable federal arbitration provisions. Judgment on any earned on aggregate cash balances held in laws of the United States, including the Federal arbitration award may be entered in any Schwab’s bank account with respect to Arbitration Act. Any costs, fees or taxes involved court having jurisdiction, or application may (1) assets awaiting investment or (2) assets in enforcing the award shall be fully assessed be made to such court for judicial acceptance pending distribution from your Account. Such against and paid by the party resisting enforce- of the award and an order of enforcement, interest retained by Schwab shall generally be at ment of said award. as the case may be. money market rates. Schwab’s receipt of such For FINRA arbitrations, FINRA will appoint a (3) The exclusive language to be used by the compensation is further described in the single public arbitrator in customer cases parties and the arbitrators in the arbitration Agreement and Disclosures. decided by one arbitrator. In customer cases proceedings shall be English. Any party Section 18: Unclaimed Property. If no activity decided by three arbitrators, investors have the wishing an interpreter shall make all occurs in the Account within the time period option of choosing an arbitration panel with two arrangements directly with the interpreter specified by applicable state law, the Account public arbitrators and one non-public arbitrator and shall assume all costs of the service. may be transferred to the appropriate state. (Majority-Public Panel Rule) or a panel of all (4) If a party is a foreign government or state, Section 19: Information About SIPC. To obtain public arbitrators (Optional All-Public Panel Rule). state-owned or state-operated enterprise or information about Securities Investor Protection If the customer declines to elect a panel other instrumentality of a foreign government Corporation (SIPC), including an explanatory selection method in writing by the applicable or state, such party waives all rights of SIPC brochure, please contact SIPC at deadline, the Majority-Public Panel Rule for sovereign immunity and neither the Federal www.sipc.org or 1-202-371-8300. selecting arbitrators will apply. Act of State doctrine nor the doctrine of Section 20: Impartial Lottery for Securities All notices from one party to the other involving sovereign immunity shall apply insofar as any Subject to Partial Call or Partial Redemption. arbitration shall be considered to have been enforcement in courts located in the U.S.A. If Schwab holds securities for you in street name, fully given when so served, mailed by first-class, is concerned. in Schwab’s name, or in bearer form that are certified or registered mail, or otherwise given Section 16: Electronic Copies. The electroni- subject to partial call or partial redemption, then by other commercially accepted medium of cally stored copy of your (or your agent’s) in the case of a partial call or partial redemption written notification. signature, any written instructions or authoriza- Schwab will use an impartial lottery system to In addition to the above provisions, if a party tions, the Account Application and the Agree- select the securities to be called or redeemed to this Agreement is or becomes a non-U.S. ment and Disclosures is considered to be the from among accounts holding those securities. resident at the time of any controversy subject true, complete, valid, authentic and enforceable For a description of Schwab’s lottery system, to this arbitration agreement, such party record, admissible in judicial, administrative or please visit www.schwab.com/PartialCalls. If acknowledges and agrees to the following arbitration proceedings to the same extent as if you would like a printed description of Schwab’s additional provisions: the documents and records were originally lottery system mailed to you, please contact a (1) The rules of the organization administering generated and maintained in printed form. You Schwab representative at 1-800-435-4000.

This disclosure applies to your account if you elected to fund your Schwab One® account using Schwab MoneyLink® electronic funds transfer, or if you elected to fund your Schwab Bank High Yield Investor Checking® account using either a one-time electronic funds transfer from your checking or savings account at another ﬁ nancial institution or a one-time transfer from your Schwab One brokerage account. A complete Electronic Funds Transfer Disclosure statement applicable to each account will be provided to you with your account agreements after account opening. Unless otherwise noted, throughout this disclosure “we,” “us,” and “our” mean both Charles Schwab & Co., Inc. (“Schwab”) and Charles Schwab Bank (“Schwab Bank”).

Business Days. Schwab’s business days , applicable to your Schwab One Our Liability for Failure to Make Transfers. If we do not complete a brokerage account, are Monday through Friday, excluding U.S. stock transfer to or from your account on time or in the correct amount according exchange holidays and U.S. banking holidays. to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We are not liable, for instance, if: Schwab Bank’s business days, applicable to your High Yield Investor Checking account, are Monday through Friday, excluding Federal Reserve • Through no fault of ours, you do not have enough money in your Bank holidays. account to make the transfer. If a funds transfer is scheduled for a day other than a business day, we • In the case of your Schwab Bank High Yield Investor Checking will make it on the following business day. account, the transfer would exceed the funds available under your overdraft protection option, if any. Consumer’s Liability for Unauthorized Transfers. Tell us at once if you believe an unauthorized person has transferred or may transfer money • Your account is restricted (because of a court order or similar from your account without your permission. You can notify us by calling reason), and we are not permitted to make the transaction. or writing Customer Service: • Circumstances beyond our control (such as fi re or fl ood) prevent the For your Schwab One brokerage account: transfer, despite reasonable precautions that we have taken. Call: 1-800-421-4488 • Any Automated Clearing House network or other third-party communication system from which we require information to Write: Charles Schwab & Co., Inc. complete transactions was not working properly. Attn: IS Document Control P.O. Box 982600 There may be other exceptions permitted by law. El Paso, TX 79998 In Case of Errors or Questions About Your Electronic Funds Transfers. For your Schwab Bank High Yield Investor Checking account: If you think your statement is wrong or if you need more information about a transfer listed on the statement, call or write us as soon as you can: Call: 1-888-403-9000 For your Schwab One brokerage account: Write: Charles Schwab Bank P.O. Box 982605 Call: 1-800-421-4488 El Paso, TX 79998 Write: Charles Schwab & Co., Inc. Telephoning immediately is the best way of minimizing your possible losses. Attn: IS Document Control P.O. Box 982600 Losses could include the money in your account plus, in the case of El Paso, TX 79998 your Schwab Bank High Yield Investor Checking account, any advances or transfers from an overdraft source linked to your account. If unauthorized For your Schwab Bank High Yield Investor Checking account: activity occurs, you agree to cooperate during the investigation and to complete any report or affi davit we may request. Call: 1-888-403-9000 Also, if your statement shows transfers that you didn’t make or authorize, Write: Charles Schwab Bank tell us at once. If you do not tell us within 60 days after the statement was P.O. Box 982605 mailed to you, you may not get back any money you lost after the 60 days El Paso, TX 79998 if we can prove that we could have stopped someone from taking the Fax: 1-877-524-3067 money if you had told us in time. If a good reason kept you from telling us (such as a long trip or hospital stay), we will extend the time periods. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. Disclosure of Account Information. We may disclose your name and/or information about your account or your transactions to our agents and We need the following information: affi liates in order to facilitate your transfer requests. We may also • your name and account number disclose such information to third parties in certain circumstances, which may include: (a) to banks and other entities that are involved with • a description of the error or the transfer you are unsure about the products or services we offer or arrange on behalf of customers; • a clear explanation of why you believe it is an error or why you need (b) when it’s requested by a third party to complete a transaction; (c) to more information and verify the existence or condition of your account for a credit bureau or merchant; (d) to comply with a subpoena, court order or request from • the dollar amount of the suspected error. a government agency or law enforcement authority; (e) to evaluate your If you tell us orally, we may require that you send us your complaint or creditworthiness or our ability to collect any debt you owe us; or (f) if question in writing within 10 business days. you give us your permission. We will determine whether an error occurred within 10 business days after In addition, for your Schwab One brokerage account, Schwab may disclose we hear from you and will correct any error promptly. If we need more such information (a) to mutual funds that are involved with the products time, however, we may take up to 45 days to investigate your complaint or services we offer or arrange on behalf of customers and (b) pursuant to or question. If we decide to do this, we will credit your account within 10 Rule 14b-1 under the Securities and Exchange Act of 1934, to companies business days for the amount you think is in error, so that you will have the in which you hold securities, unless we receive your written objection. use of the money during the time it takes us to complete our investigation. Periodic Statements. Schwab will send you a monthly account statement If we ask you to put your complaint or question in writing and we do not for your Schwab One brokerage account unless there are no transfers in a receive it within 10 business days, we may not credit your account. particular month. In any case, you will get the statement at least quarterly. For errors involving new accounts, point-of-sale or foreign-initiated Schwab Bank will send you a monthly statement for your Schwab Bank transactions, we may take up to 90 days to investigate your complaint High Yield Investor Checking account unless there is no account activity or question. For new accounts, we may take up to 20 business days to other than the posting of interest. We will send you a statement at least credit your account for the amount you think is in error. quarterly, even if there is no activity in your account. We will tell you the results within three business days after completing All electronic funds transfers posted to your account during the month our investigation. If we decide that there was no error, we will send you a areST listed on your statement. written explanation. You may ask for copies of the documents that we used in our investigation. ST ©2015 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. / Charles Schwab Bank. Member FDIC. Equal Housing Lender. CC0012354 (0515-3677) REG55434-05 (05/15) 00142720

Job # CC0012354 Spellcheck: Yes Last Item # REG55434-05.indd Color Seps: No Round 6-5-2015 12:26 PM Page # 1 of 1 Fold Dummy: No 2 Modifi ed Studio Fiorenza, Mark Placed Graphics Inks Prev. Studio Jorgensen, Doreen Bleed None LOG-CSRtlPrf-BLK.eps (10.71%) Black Traffi c Mgr. Maribeth McLaren Trim 8.5” x 11” LOG-CSPrf-Bnk-55K.eps (10.8%) Art Director -- Live None TEAM Acct. Mgr. Maribeth McLaren Fonts Charles Modern (Condensed Regu- lar, Light, Regular, Bold; True Type) Graphics -- SETUP CONTENT Job Type PDF Only Mech Scale 100%

DETAILS Output Size None This page is intentionally blank. Margin Disclosure Statement www.schwab.com | 1-800-435-4000 (inside the U.S.) international.schwab.com | +1-415-667-8400 (outside the U.S.)

• This is important information regarding margin borrowing, if you have requested the margin feature on your brokerage account. • Please retain this document for your fi les. • When using margin, please keep these important rules and conditions in mind. • A complete list of terms and conditions pertaining to margin trading and short selling, including credit terms and policies, can be found in the Account Agreement. The Account Agreement will be provided to you after account opening or you can access it at any time on our website or by calling us. Please read this important document before opening a margin account. • For questions regarding margin borrowing, please contact us at the numbers listed above. When considering a margin loan, you should determine how the use Schwab may increase its “house” maintenance margin requirements of margin fi ts your own investment philosophy. It is important that you at any time and is not required to provide you with advance written fully understand the risks, rules, and requirements involved in trading notice. Changes in Schwab’s policy regarding “house” maintenance securities on margin. margin requirements often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the The following paragraphs highlight some of the critical aspects of call may cause Schwab to liquidate or sell securities in your account. margin trading: Schwab retains absolute discretion to determine whether, when and in Margin trading increases your level of market risk. Margin trading what amounts we will require additional collateral. For example, we may increases your buying power, allowing you to purchase a greater amount require additional collateral if an account contains only one security or of securities with your investing dollar. Therefore, your exposure to a large concentration of one or more securities; or low-priced, thinly market volatility increases—a declining market could result in even traded or volatile securities; or if some of your collateral is or becomes greater losses. A decline in the value of your securities that you restricted or non-negotiable or non-marginable. We may also consider purchase on margin may require you to provide additional funds to market conditions, your fi nancial resources, or other factors deemed by Schwab in order to avoid the forced sale of those securities or other us to be relevant given the circumstances at the time. securities in your account. You are not entitled to an extension of time on a margin call. While Your downside is not limited to the collateral value in your margin an extension of time to meet margin requirements may be available to account. When you buy securities on margin, you are borrowing money customers under certain conditions, a customer does not have a right from Schwab for part of your transactions. Securities and other assets to the extension. in your Schwab account(s) are pledged as collateral to secure this loan. These margin transactions are riskier and involve the possibility Some accounts that carry a margin loan balance and hold dividend- of greater loss than transactions where you are not borrowing money. paying securities may receive a “substitute income payment in lieu of If the securities in your account decline in value, so does the value of a dividend” (PIL). This payment may be taxable as ordinary income. the collateral supporting your loan. When the value of the collateral Taxable accounts that receive a PIL instead of a qualifi ed dividend may falls below the maintenance margin requirements, or Schwab’s higher also receive a supplemental credit from Schwab. This will be identifi ed “house” requirements, Schwab can move to protect its position. In on customer statements as a “Schwab substitute income credit.” order to cover margin defi ciencies, Schwab may issue you a margin However, when Schwab can identify that a dividend is nonqualifi ed, call—a request for additional cash—or sell securities from your account. we will not credit your account with this additional payment. If a sale does not cover the defi ciency, you will be responsible for • This credit is NOT “payment in lieu,” and is unrelated to any payment any shortfall. from either the security issuer or the borrower. Schwab may initiate the sale of any securities in your account, without • It is a discretionary credit from Schwab which may be discontinued contacting you, to meet a margin call. Schwab will attempt to involve in the future with or without notice.* you in the case of margin defi ciency; however, market conditions may require the fi rm to quickly sell any of your securities without your consent. • It may be subject to tax at your ordinary income tax rate. Please Because the securities are collateral for the margin loan, Schwab has the consult your tax advisor about your specifi c tax situation. right to decide which security to sell in order to protect its interests. Even • Because individual tax situations differ, Schwab cannot precisely if Schwab has contacted you and provided a specifi c date by which you calculate the additional tax costs a client might incur. Therefore, can meet a margin call, the fi rm can still take necessary steps to protect we do not intend, nor should clients expect, for this payment to be its fi nancial interests, including immediately selling the securities without an exact reimbursement of any excess tax cost. prior notice to you. *Please refer to the “Loan Consent” section of your Account Agreement Schwab’s “house” initial and maintenance margin requirements may which states that no compensation is due in connection with such loans exceed those established by the Federal Reserve Board and/or the and that Schwab “is not required to compensate you for any differential Financial Industry Regulatory Authority, Inc. Please call Schwab for tax treatment between dividends and payments in lieu of dividends.” current margin requirements.CLIENT COPY Schwab may change its initial margin requirements at any time and without prior notice. We may also impose anytime and without prior notice more stringent requirements on positions that in our sole discretion involve higher levels of risk; for example, higher limits may apply for thinly traded, speculative or volatile securities, or concentrated positions of securities.

The automatic investment of your free credit balance, including the frequency and the amount of each sweep, is governed by the terms and conditions set forth in the Cash Features Disclosure Statement and in the Account Agreement applicable to your account. The material in this document is intended for informational purposes only. If there is any conﬂ ict between the descriptions in this document and the terms of your Account Agreement, your Account Agreement will control.

How the Cash Schwab’s Cash Features Program is the service (described in the Cash Features Disclosure Features Program Statement) that we provide to automatically invest, or “sweep,” the Free Credit Balance in Works your account into a liquid investment to earn interest. The program permits you to earn income while you decide how those funds should be invested longer term. Available Cash The available cash features currently consist of: Feature • Interest payments by Schwab on the Free Credit Balance in your eligible account (the “Schwab One® Interest feature”); • Interest-bearing Deposit Accounts at our affi liated bank, Schwab Bank (the “Bank Sweep feature,” which consists of the “Schwab Bank Sweep feature” and the “Schwab Bank Sweep for Benefi t Plans feature”); and • For some accounts, one or more affi liated money market mutual funds (the “Money Fund Sweep feature”). Eligibility Eligibility for each cash feature is based on the registered ownership and the type of account. Not all account registrations and account types will be eligible for all cash features. Some account registrations and account types will be eligible for only one cash feature. Please see your Account Application and the Cash Features Disclosure Statement for more complete eligibility details. Duty to Monitor It is your responsibility to monitor your eligibility for the cash features and determine the best Eligibility for Cash cash feature available to you. Schwab is not responsible for contacting you if you are, or later Features become, eligible for other higher-yielding cash features. Interest Rates and The interest rates and yields for the different cash features vary over time. Current interest Yields rates and yields can be obtained by contacting your independent investment advisor or your Financial Consultant, or by calling us at 1-800-435-4000. If you already have an account, you can visit our website at www.schwab.com/cash. If your account is an Advisor Services account, please contact your advisor, visit www.schwab.com/SA_cash, or call Schwab Alliance at 1-800-515-2157. • The interest rate on the Schwab One Interest feature is set by Schwab. We may seek to pay as low a rate as possible consistent with our views of competitive necessities. With certain exceptions, the rate will be tiered based upon the overall Household Balance of your account(s). • The interest rate on the Schwab Bank Sweep feature is set by Schwab Bank, which may seek to pay as low a rate as possible consistent with its views of competitive necessities. With certain exceptions, the rate will be tiered based upon account type and the overall household value of your account(s) with Schwab and Schwab Bank. • The interest rate on the Schwab Bank Sweep for Benefi t Plans feature is set by Schwab Bank, which intends to pay interest consistent with reasonable rate provisions of applicable legal and regulatory authority. Interest rates do not vary by tiers and do not vary based on householding of assets.

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

Interest Rates and • Money market mutual funds offered through the Money Fund Sweep feature seek to achieve Yields the highest yield (less fees and expenses) consistent with prudence and their investment (Continued) objectives. Cash features are not intended to be long-term investments. If you desire to maintain cash balances for other than a short-term period and/or are seeking the highest yields currently available in the market, please contact your Schwab representative or visit www.schwab .com/cash for investment options that may be available outside of the Cash Features Program to help maximize your return potential consistent with your investment objectives and risk tolerance. If your account is an Advisor Services account, please contact your advisor, visit www.schwab.com/SA_cash, or call Schwab Alliance at 1-800-515-2157. Benefi ts to Schwab We may charge fees and receive certain benefi ts under the different cash features. A portion of these fees and benefi ts may be shared with your investment professional. Because of these fees and benefi ts, we have a fi nancial incentive to select the particular cash features included in the Cash Features Program. Differing Risks and The different cash features are subject to different risks and account protection: Account Protection • The Schwab One® Interest feature is not subject to market risk and value loss but is subject to the risk of Schwab’s failure. In the unlikely event that Schwab fails, cash is eligible for SIPC coverage up to a limit of $250,000 (including principal and interest) per client in each insurable capacity (e.g., individual or joint). Free Credit Balances held at Schwab are not insured or guaranteed by the FDIC. • The Bank Sweep feature, which includes the Schwab Bank Sweep feature and the Schwab Bank Sweep for Benefi t Plans feature, is not subject to market risk and value loss but is subject to the risk of Schwab Bank’s failure. In the unlikely event that Schwab Bank fails, deposits at Schwab Bank are eligible for FDIC insurance protection up to a limit of $250,000 (including principal and interest) per depositor in each insurable capacity (e.g., individual, joint, and plan participant). This limit includes any other deposits you may have at Schwab Bank outside of the Bank Sweep feature. You are responsible for monitoring your bank balances in the Bank Sweep feature and the balances in any of your other bank accounts at Schwab Bank to determine if these, in total, exceed FDIC insurance limits. Monies held in the Bank Sweep feature are not covered by SIPC. • Money market mutual funds in the Money Fund Sweep feature invest in high-quality, short- term securities and seek to maintain a stable value, but are subject to market risks and potential value loss. They are not bank accounts and are not subject to FDIC insurance protection. They are instead covered by SIPC, which protects against the custodial risk (and not a decline in market value) when a brokerage fi rm fails by replacing missing securities and cash up to a limit of $500,000, of which $250,000 may be cash. Shares held through the Money Fund Sweep feature are not considered cash, but are treated as securities for SIPC coverage.

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

ST ©2016 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. CC0478839 (0416-1424) REG91285-00 (04/16) 00118484 Important Information About Your Informed Consent to Receive Paperless Documents

The Purpose and Effect of Your Consent • Schwab Intelligent Portfolios™ clients: 1-855-694-5208. We are required to give you “in writing” certain records and disclosures • Institutional Intelligent Portfolios™ clients: 1-877-805-3399. about our relationship and transactions in your account. You are entitled To Withdraw Your Consent to receive those documents on paper. With your affi rmative consent, we can provide the documents to you electronically instead (“Paperless When you change your preference back to postal mail delivery, this Documents”). The information below will help you understand the cancels your enrollment in Paperless Documents and withdraws your conditions and requirements relating to the Schwab Paperless consent for the document categories you indicate. You can do this by Documents program. You can always fi nd the most up-to-date version logging in to schwab.com/paperless_services, or by calling or emailing of this important information at schwab.com/paperless_consent. Schwab or Schwab Bank using the contact information above. Allow 48 hours for processing. Your consent will remain effective for other Paperless Document categories include: tax forms, trade confi rmations, document categories for which you maintain a Paperless preference. account statements, and other account-related documents delivered after account opening, including account agreement amendments Important note for Schwab Advisor Services clients: Canceling or and program disclosures, fund prospectuses, shareholder materials, modifying your enrollment may make your account(s) ineligible for lower and investment advisory service disclosures. Each of these document commission rates, and the commissions you pay may increase. categories is described below. Paperless Documents specifi c to your Important note for Schwab Intelligent Portfolios and Institutional transactions and account will be available online after you log in for up Intelligent Portfolios clients: Intelligent Portfolios is an all-electronic to 10 years from the date of initial delivery. service. If in the future you request paper documents, withdraw your Depending on where you reside, the initial scope of your Paperless consent, or are unable to receive Paperless Documents, Schwab may Documents enrollment, and whether you have made modifi cations to your terminate your account. enrollment, not all of the document categories may apply to you. If you are Electronic Notifi cation When a Paperless Document Is Ready uncertain which documents are covered by your Paperless Documents enrollment, please check online at schwab.com/paperless_services or We deliver a Paperless Document to you by sending an email to let call or email Schwab or Schwab Bank using the contact information below. you know it is available. For some documents, the email itself will be the Paperless Document. For all other documents, the email will contain a For additional information about Schwab Bank account statements, see link to a website where you can access the document, usually after you the “Addendum” on the following page. log in. You indicate your consent by providing an email address and signing an account agreement, or by clicking or touching an “I consent” or Keeping Your Email Address Current, and Actions Schwab or other button indicating assent to, or acceptance of, the conditions and Schwab Bank Will Take If There Is a Problem requirements relating to the Schwab Paperless Documents program, Please note that after three consecutive months of unsuccessful and we record your consent. The method of consent may depend on electronic delivery attempts of your tax forms, trade confi rmations, whether you are opening an account or separately enrolling in Paperless account statements, or other account-related documents, your Documents for an existing account. If you do not provide consent, account(s) will revert back to postal mail delivery. This will cancel your Schwab or Schwab Bank will send you paper copies. Your consent will enrollment in Paperless Documents and will withdraw your consent to be effective until you cancel your enrollment in Paperless Documents or receive Paperless Documents. Schwab or Schwab Bank notifi es you that the program is discontinued. If you are a joint account holder, your consent binds the other holder on It is your responsibility to notify Schwab or Schwab Bank of any change your account. in your email address by logging in to the Schwab site and going to Service > MyProfi le > Email Addresses or using the contact information By providing consent, you confi rm that you have the ability to access above. In addition to the unenrollment process outlined above, if we Schwab on the web, and the ability to open, view, save, retain, and receive any indication either that the email notifi cation did not reach print PDF documents as described below. This demonstrates that you successfully or that there is a problem with your email address or you can receive the Paperless Documents we will deliver to you. You service, we will take the following actions: also confi rm that you have provided a valid email address as part of the account opening or Paperless Documents enrollment process. • Tax Forms—Send a letter by postal mail within two business days to The email address that you provide shall be used to send Paperless inform you that we were unable to deliver your tax form electronically. Documents for all of your enrolled accounts and categories. • Trade Confi rmations—Send a paper copy of trade confi rmation by Our Contact Information to Request Paper regular mail within 24 hours. Also send a letter by postal mail to inform you that we were unable to deliver your trade confi rmation to Documents or Ask Questions you electronically. After you provide your consent, you may still request paper documents. • Account Statements and Other Account-Related Documents—Send To access a document and print a copy, log in to your Schwab or a letter informing you that we were unable to deliver your statement Schwab Bank account, select the “Accounts” tab, and then select the electronically. “History & Statements” tab and click on “Statements & Reports.” To • Shareholder Materials—Send a paper copy of the shareholder request paper documents, ask questions, or report problems about materials via postal mail within 24 hours. We will send you a letter Paperless Documents, you may contact us as follows: informing you that we were unable to deliver your shareholder To contact us by email, log in to Schwab.com, click “Contact Us,” and materials electronically. The account will be unenrolled from the then click “Send a Secure Message.” Advisor Services clients, please Paperless Delivery program and we will begin to send you paper log in to schwaballiance.com. To contact us by phone: shareholder materials. • Investor Services clients: 1-800-435-4000. Hardware and Software Requirements ® • Schwab Bank High Yield Investor Checking (or other Schwab Bank) To receive Schwab’s Paperless Documents, you need access to a device clients: 1-888-403-9000. (a computer or a smartphone) with Internet service and an active email • Clients in the U.K.: 00 800 0826-5001. account and address, along with the following: • Clients in Switzerland: 0800 56-3711. • A current version of a common Internet browser, with JavaScript • Advisor Services clients: Contact your independent advisor or call enabled. 1-800-515-2157.

® ® • A current version of a program, such as Adobe Reader , that we also send you notifi cations about your account. Collectively, we call accurately reads and displays PDF documents. If you do not have these notices and documents “account-related documents.” When Adobe Acrobat installed on your computer, you can download the you consent to Paperless account statements, you also consent to free software at adobe.com. Paperless account-related documents. • An operating system on your device that supports the above. Investment Advisory Service Disclosures (A Sub-Category of • A printer that connects to your device if you wish to print and retain Account-Related Documents) records on paper. Your consent to account statements and other account-related documents includes investment advisory program disclosures, brochure • Electronic storage connected to your device if you wish to retain supplements with information about individual Schwab representatives, records in electronic form (if using your computer, just save and related materials such as periodic updates or annual summaries of documents to your local hard drive). any changes to those documents (“Form ADV Disclosures”), as Schwab If you use your smartphone, you must access the full Schwab website makes these available in the future. The investment advisory programs to view and print your documents. If you have questions relating to may include Schwab Private Client™, Schwab Managed Portfolios™, hardware and software requirements, please call or email Schwab using Schwab Managed Account Services™, the Schwab Advisor Network®, the contact information on the previous page. Schwab Intelligent Portfolios®, and other similar advisory services, and fee-based Financial Planning Services. In addition to Schwab’s and its Security and Privacy Information affi liates’ own Form ADV Disclosures, your consent also covers Form Unless expressly stated, email notifi cations for Paperless Documents ADV Disclosures from third-party investment advisors whose services are not encrypted. For security and confi dentiality, unencrypted emails you select through Schwab. Paperless Form ADV Disclosures may will not include your name, full account number, or any other personal accompany your account statements or be sent independently. If the third identifi er. Be aware, however, that some email addresses may use part party does not make its Form ADV Disclosures available electronically, or all of your name. If you use a work email address, your employer or you will instead receive the standard printed materials by postal mail. other employees may have access to your email. To help you identify Shareholder Materials (“Electronic Delivery”) your account, we may include some portion, but not all, of your account Shareholder materials include regulatory information such as number. Schwab or Schwab Bank may use a vendor to deliver Paperless prospectuses; prospectus supplements; quarterly, semi-annual, Documents. and annual reports; and proxy materials. You will receive an email Whether Schwab, Schwab Bank, or a vendor delivers the Paperless notifi cation with a web link to shareholder materials if you have Documents, Schwab’s privacy policy applies. a position in an equity or mutual fund as of the record date for a particular shareholder distribution and the materials are made Records and Disclosures Included in Schwab and Schwab Bank’s available electronically by the issuer or third party. If the issuer or third Paperless Documents Program party does not make shareholder materials available electronically, Tax Forms (“eTax Documents”) you will instead receive the standard printed materials by postal mail. A tax document provides important information you need to complete By providing your consent to receive electronic delivery of shareholder your tax returns. Much of the information we provide in tax documents material, you also consent to electronic householding. This means is also reported to the IRS. This includes any corrected tax documents that if you and someone else enroll in this Paperless service using the and accompanying notices. When your tax documents are ready, we same email address, we may send one email announcement to this will send an email notifi cation containing a web link to the document email address if each account holds securities of the same issuer. available after you log in. This avoids duplicate mailings of shareholder documents. If you no longer want electronic householding of your shareholder materials, Trade Confi rmations (“eConfi rms”) you must modify your Paperless Documents enrollment as described A trade confi rmation is an offi cial record of your securities transaction. above. Your shareholder materials may include electronic proxies. It includes the price, the number of shares, and the commission we You may elect to vote your proxy online at proxyvote.com by entering charge you, as well as disclosures required under federal law. If you the control number included in your email announcement and the last choose to receive Paperless trade confi rmations, the terms and four digits of your Social Security number or Taxpayer Identifi cation conditions of your transaction will appear in the email and on a web Number as your PIN. page you can link to from the email. Your consent to receive Paperless trade confi rmations also covers Paperless Delivery of prospectuses Addendum for Schwab Bank Paperless Statements or other regulatory information we provide to you at the time of your (“eStatements”) online trade. Your consent to receive Paperless trade confi rmations The above information regarding the purpose and effect of your also covers Paperless Delivery of Trade Confi rmation Reports if you consent; how to request paper or ask questions; how to withdraw elect this alternative as part of your Managed Account enrollment and consent; electronic notifi cation when your statement is ready; keeping Schwab makes this option available in the future. your email address current; hardware and software requirements; and Account Statements and Other Account-Related Documents security and privacy information are all applicable to Schwab Bank (“eStatements”) accounts. Paperless Documents include account statements and tax An account statement provides important information about your forms. Account statements for your Investor Checking account(s), account, including the price and quantity of securities you hold, the Investor Savings account(s), and Pledged Asset Line® account(s) provide transactions conducted, other activity in your account, and terms and important information about your accounts, including the account conditions governing your account. Account statements are sent at balance, the transactions conducted, other activity in your accounts, the end of each month in which you conducted activity in your account and other information, terms, and conditions governing your accounts. or at the end of each calendar quarter, regardless of any account With your Schwab Bank account statements, we often include activity. With your account statements, we often include accompanying accompanying account-related notices and other regulatory information account-related notices and other regulatory information including, but including disclosures such as annual notices and amendments to not limited to, Schwab’s Consolidated Statement of Financial Condition, your account agreements (collectively, “Account Statement Inserts”). pricing changes, privacy policy, annual notices and amendments to your By consenting to Paperless Delivery of account statements for your account agreements, and any other required regulatory documents Bank account(s), you also consent to Paperless Delivery of Account and disclosures. At account opening and from time to time thereafter, Statement Inserts.

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

Charles Schwab Bank and Charles Schwab & Co., Inc. are separate but afﬁ liated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products offered by Charles Schwab & Co., Inc. are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. Deposit and other lending products and services are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Charles Schwab Bank is not acting or registered as a securities broker-dealer or investment advisor.