Announcing Changes to RBC Insured Deposits

1 WM0318-001 Announcing Changes to RBC Insured Deposits

Dear Valued Client: Changes to the Program • If your Deposit Account balances reach the deposit limit for each Program Bank Set forth below is a summary of the changes RBC Capital Markets, LLC (“RBC CM”) is on your Priority List, additional available to the Program that will occur on or after the making important changes to RBC Insured cash balances in your Account will be Effective Date. Deposits (the “Program”). Through the automatically invested in shares of a Program, available cash balances in your • The manner in which the priority for the money market fund as specified in the securities account (“Account”) are deposited deposit of your available cash balances Terms and Conditions. into deposit accounts (“Deposit Accounts”) at is determined will change. Priority will • RBC CM has amended the Terms and one or more eligible depository institutions no longer be determined by whether Conditions to reflect the changes to the (“Program Banks”) whose deposits are a Program Bank has a “committed Program described in this letter and some insured by the Federal Deposit Insurance deposit balance” or by the Program’s additional operational changes. Corporation (“FDIC”). Two of the Program “nondiscretionary algorithm”. Banks are banks affiliated with RBC CM. • Instead, available cash balances will What is not Changing Through the Program, your funds are placed be deposited into Deposit Accounts • The interest rate on your Deposit Accounts in Deposit Accounts at each Program Bank at Program Banks based on a deposit will continue to be determined by interest up to the FDIC’s deposit insurance limit, sequence set forth on a Priority List rate segments. As described in the Terms which is currently $250,000 per depositor as applicable to your Account. The and Conditions, for most clients, your when aggregated with all other deposits preliminary Priority List of available eligibility for your interest rate segment held by a depositor in the same insurable Program Banks into which your funds may will be determined by your household capacity (e.g., individual, joint, IRA, etc.) at be deposited is enclosed. The preliminary assets or commissions and fees. Current a Program Bank. Currently, for most clients, and final Priority List will be available interest rate segments and interest rates the Program makes available more than 20 through your online Account access or by are available through your online Account Program Banks permitting you to be eligible contacting your Financial Advisor. access or by contacting your Financial for $5,000,000 or more of FDIC deposit Advisor. Please review the Terms and insurance coverage ($10,000,000 or more for Please consult the following for an Conditions and contact your Financial joint accounts) per depositor, per insurable account with: Advisor if you have any questions. capacity, subject to FDIC rules. Retirement accounts (e.g., IRAs, 401(k) plans and other RBC Wealth Management • For purposes of the Program, RBC CM will www.rbcwm-usa.com employee benefit plans) held by direct clients continue to link Accounts held by you in of RBC Wealth Management will have up to Introducing Brokers that Clear Transactions the same FDIC insurable capacity. Your $498,000 of potential FDIC deposit insurance through RBC Correspondent Services available cash balances will be allocated coverage. www.investor-connect.com to the Program Banks on your Priority List and, if necessary, the money market fund This letter describes the changes to the RBC Advisor Services as described in the Terms and Conditions. Program. The enclosed RBC Insured www.rbcadvisorconnect.com Deposits Terms and Conditions (“Terms and No action is Required • In connection with this change, some Conditions”) describe the Program in more Program Banks will cease to participate No action is required unless you would like detail and contain important information in the Program and new Program Banks to select a different available cash sweep about the operation of the Program and will be included in the Program. On or option for your Account. Please contact your possible conflicts of RBC CM in offering the after the Effective Date, your funds will be Financial Advisor for additional information. Program. You should review this letter and withdrawn and re-deposited into Deposit the enclosed Terms and Conditions carefully. Accounts at the Program Banks based Questions The changes will become effective on or after on the deposit sequence on your Priority If you have questions regarding these May 29, 2018 (the “Effective Date”). List. This could result in your funds being changes to the Program, please contact your deposited into new or different Program Financial Advisor. Banks. • You may not change the order of the Sincerely, Program Banks on your Priority List. RBC Capital Markets, LLC However, you may at any time designate a Program Bank as ineligible to receive your funds by contacting your Financial Advisor. You should review the Priority List carefully. 2

Preliminary Priority List

Home City State

RBC Bank, (Georgia) National Association 1 Atlanta GA

City National Bank 1 Los Angeles CA

Goldman Sachs Bank USA New York NY

Citibank, National Association Sioux Falls SD

Wells Fargo Bank, National Association Sioux Falls SD

Bank of China New York NY

American Express National Bank Salt Lake City UT

U.S. Bank National Association Minneapolis MN

Morgan Stanley Bank, National Association Salt Lake City UT

Morgan Stanley Private Bank, National Association New York NY

Manufacturers and Traders Trust Company Buffalo NY

BankUnited Miami Lakes FL

Mizuho Bank (USA) New York NY

Bank Hapoalim B.M. New York NY

Citizens Bank of Pennsylvania Philadelphia PA

Huntington National Bank Columbus OH

HSBC Bank USA McLean VA

Manufacturers Bank Los Angeles CA

East West Bank Pasadena CA

Israel Discount Bank of New York New York NY

Barclays Bank Delaware Wilmington DE

Umpqua Bank Roseburg OR

Customers Bank Phoenixville PA

United Community Bank Blairsville GA

United Bank Glastonbury CT

Candence Bank, N.A. Houston TX

EagleBank Bethesda MD

Western Alliance Bank Phoenix AZ

Bank of the Ozarks Little Rock AR

Simmons Bank Pine Bluff AR

1 RBC CM Affiliate Banks. Please review he enclosed Terms and Conditions for more information and conflicts. 2 There may be banks on this preliminary list that certain account types will not be eligible for deposit. Please see the enclosed Terms and Conditions for more information. RBC Insured Deposits Terms and Conditions

There are different versions of the Program Bank on your Priority List. For all Accounts I. SUMMARY that may be offered to different clients. The except Direct Accounts that are Retirement RBC Capital Markets, LLC (“RBC CM”) offers number of Program Banks on a Priority Accounts, the Program is intended to provide RBC Insured Deposits (the “Program”) to List, and whether the Priority List has the you with Total Program Coverage of up to automatically deposit, or “sweep”, available RBC Affiliate Banks, will be determined by $5,000,000 ($10 million for accounts held cash balances in your securities account at RBC the type of Account a client has established jointly by two or more persons) per depositor, CM (“Account”) into interest-bearing deposit and may be changed by RBC CM in its sole per insurable capacity depending on the accounts (“Deposit Accounts”) at participating discretion. The number of Program Banks on number of Program Banks on your Priority depository institutions (“Program Banks”), a Priority List will determine your available List. For Direct Accounts that are Retirement whose deposits are insured by the Federal Total Program Coverage. Accounts, the Program is intended to provide Deposit Insurance Corporation (“FDIC”). The you with Total Program Coverage of up to Direct Accounts that are Retirement Accounts Program Banks are set forth on a Priority List $498,000. Deposit Accounts that you hold will have available cash balances deposited described in Section II below. Two of the banks in your Account in the same insurable only into Deposit Accounts at the RBC on a Priority List may be RBC Bank Georgia, capacity (e.g., individual, joint, IRA, etc.) Affiliate Banks. Retirement Accounts include N.A. and City National Bank, affiliates of RBC will be aggregated for purposes of your Total (i) a plan described in section 401(a) or CM (the “RBC Affiliate Banks”). Program Coverage. section 403(a) of the Internal Revenue Code, FDIC insurance covers Deposit Account which is subject to the provisions of Title I of Any deposits, including certificates of balances at a Program Bank up to $250,000 the Employee Retirement Income Security deposit, that you maintain in the same per depositor in each recognized insurable Act of 1974, (ii) an individual retirement insurable capacity directly with a Program capacity (e.g., individual, joint, IRA, etc.), account (“IRA”) described in section 408(a) of Bank or through an intermediary (such as subject to FDIC rules for aggregate deposits. the Internal Revenue Code, (iii) an individual RBC CM or another broker), regardless of RBC CM has established a limit on the amount retirement annuity described in section the number of Accounts, will be aggregated of your available cash balances that will be 408(b) of the Internal Revenue Code, (iv) an with funds in your Deposit Accounts at the deposited into the Deposit Accounts at each Archer MSA described in section 220(d) of the Program Banks for purposes of the FDIC Program Bank reflecting the FDIC limit (the Internal Revenue Code, (v) a health savings deposit insurance limit. “Deposit Threshold”). The total amount of account described in section 223(d) of the FDIC insurance protects your Deposit FDIC insurance coverage available to you Internal Revenue Code, or (vi) a Coverdell Account balances in the event of the failure through the Program will be determined by the education savings account described in of any Program Bank. You are responsible number of Program Banks on your Priority List section 530 of the Internal Revenue Code. for monitoring the total amount of deposits and the amount of FDIC insurance coverage The only clients who are not eligible for the that you have with each Program Bank, available to you at each Program Bank (“Total Program are trustee directed (pooled) self- including an Excess Bank (described below), Program Coverage”). If your Deposit Account trusteed qualified plans. in order to determine the extent of FDIC balances reach the Deposit Threshold for each deposit insurance coverage available to you. Program Bank on your Priority List, additional RBC CM may in its discretion deem a person Please refer to Section VIII below for more available cash balances in your Account will to be ineligible for the Program if it becomes information on FDIC deposit insurance. be automatically invested in shares of a money aware that the person is prohibited by market fund as described in Section II.B. below. banking regulations from participating in the Your Deposit Accounts will not be protected Program. RBC CM may change the eligibility by Securities Investor Protection Corporation For purposes of these Terms and Conditions, requirements for the Program at any time in (SIPC). “we” or “our” refers to RBC CM or one of its discretion. In addition, RBC CM may grant its divisions, and “you” and “your” refer to exceptions to the eligibility requirements for D. Funds in Excess of the Total Program the client. If your Account is an Introducing the Program in its discretion. Your Financial Broker Account, as defined below, you may Coverage Advisor can provide you with additional be subject to a different or additional client information about eligibility for the Program. For all Accounts other than Direct Accounts account agreement between you and the that are Retirement Accounts, if your Deposit introducing broker. B. Interest Account balances in the Program Banks reach your Total Program Coverage, funds in A. Eligibility Your balances in the Deposit Accounts at excess of the Total Program Coverage will be the Program Banks will earn interest. The Except as set forth below or as otherwise automatically invested in shares of the RBC interest rate you earn on Deposit Account determined by RBC CM in its sole discretion, US Government Money Market Fund (the “US balances will, with certain exceptions, be the Program is available to the following clients: Government Fund”) unless you designate the determined by the interest rate segment US Government Fund as ineligible. The US (i) Clients opening Accounts directly with applicable to you by household assets or Government Fund is a money market fund RBC Wealth Management (“RBC WM”) commissions and fees as described in more managed by RBC Global Asset Management (“Direct Accounts”); detail in Section IV below. At any time, you (U.S.) Inc., an affiliate of RBC CM. may determine the current interest rate (ii) Clients with Accounts opened through available to you through your online Account For Direct Accounts that are Retirement brokers for which the RBC Correspondent access or by contacting your Financial Accounts, Deposit Account balances in excess Services division of RBC CM acts as Advisor. Please refer to Section X below for of the $498,000 Total Program Coverage will clearing broker (“Introducing Broker the website applicable to your Account. be automatically invested in shares of the Accounts”); and Federated Money Market Fund, which is not (iii) Clients with Accounts for which the RBC C. FDIC Deposit Insurance Coverage affiliated with RBC CM, unless you designate Advisor Services division of RBC CM the Federated Money Market Fund as Your balances in the Deposit Accounts at the provides custody and execution services ineligible. The US Government Fund and the Program Banks will be eligible for insurance to the client’s third party investment Federated Money Market Fund are collectively by the FDIC up to $250,000, subject to adviser (“Investment Advisor Accounts” referred to as the “Money Market Funds”. and, together with Introducing Broker aggregation with all other deposits held by Accounts, “Third Party Accounts”). you in the same insurable capacity (e.g., individual, joint, IRA, etc.) at each Program 4

Investments in the Money Market Funds are The Program Banks will appear on your RBC CM, as your agent, will open an MMDA not covered by FDIC insurance. However, Priority List in the order in which the Deposit and Transaction Account for you at the next shares of the Money Market Funds held in Accounts will be opened for you and your Program Bank on your Priority List and place your Account are covered by SIPC up to funds will be deposited. You should review your additional funds in that Program Bank. applicable limits. You may access the most the Priority List carefully. Unless your Account is a Standard Account recent US Government Fund prospectus or Standard Checking Account, in which by accessing www.rbcgam.com and the The Priority List will include a designated available cash balances under $1,000 in your most recent Federated Money Market Fund Excess Bank, which will accept your funds Account will be swept weekly, available cash prospectus by contacting your Financial without limit and without regard to the balances will be swept to Deposit Accounts Advisor. Please refer to Section IV.C. below FDIC insurance limit in the event that on a daily basis. for more information. you designate the Money Market Fund, as applicable, as ineligible to receive your funds. The current Deposit Threshold for each client If you elect to designate the Money Market at each Program Bank is $249,000 for Deposit Fund applicable to your Account as ineligible You may not change the order of the Program Accounts held individually and IRAs, and to receive your excess funds, available cash Banks on the Priority List. However, you $498,000 for Deposit Accounts held jointly by balances that exceed the Total Program may at any time designate a Program Bank two or more persons. All Deposit Accounts Coverage will be swept into a designated as ineligible to receive your funds. This will established for trust accounts will be treated by “Excess Bank”, which will accept funds result in your funds being deposited into RBC CM as individual accounts for purposes without limitation and without regard to the Deposit Accounts at the next Program Bank of applying the Deposit Threshold. If, as a FDIC insurance limit as described in Section on the Priority List. In addition, you may at result of credited interest on your Deposit II.C. below. any time instruct us to remove your funds Accounts at a Program Bank, your Deposit from a Program Bank, close your Deposit Account balances at that Program Bank exceed E. Additional Information Accounts with the Program Bank, and the Deposit Threshold, amounts over the designate the Program Bank as ineligible to Deposit Threshold will be withdrawn from You should review the entire Terms receive future deposits. Unless you direct us your Deposit Accounts at that Program Bank and Conditions carefully for additional to place your funds in a different investment, and deposited into Deposit Accounts at other information regarding the Program, including your funds from a closed Deposit Account available Program Banks up to the Deposit how the program works (Section II), fees paid will be deposited in Deposit Accounts at the Threshold at each Program Bank in the order to RBC CM (Section VII.C.), benefits that RBC first available Program Bank set forth on your of priority set forth on your Priority List. CM and the RBC CM Affiliate Banks receive Priority List, as amended by you. through the Program (Section VII.D.) and As your agent, RBC CM will generally deposit information about FDIC and SIPC coverage If you wish to designate a Program Bank available cash balances in your MMDA at each (Section VIII and Section IX). as ineligible to receive your funds, please Program Bank as set forth above. However, contact your Financial Advisor. You may we may make deposits into the Transaction II. HOW THE PROGRAM WORKS not designate all of the Program Banks on Account at a Program Bank as described below your Priority List as ineligible to receive your under “Withdrawal Procedures.” There may A. PRIORITY LIST funds. Designating a Program Bank on your a minimum amount to be maintained in the The identity and number of Program Banks on Priority List as ineligible to receive your funds Transaction Account at the Program Bank to your Priority List depend upon your type of will reduce the Total Program Coverage for satisfy debits in your Account, and funds may Account. your Deposit Accounts. be transferred from the MMDA at the Program Bank to the related Transaction Account to As described below under Section II.F., the • For Direct Accounts owned by individuals, maintain the minimum balance. Transfers Priority List may be changed. In general, trusts or custodians, the Program Banks from the MMDA to the Transaction Account you will receive prior notification of changes on your Priority List will include the RBC and withdrawals from the Transaction to the Priority List. However, under certain Affiliate Banks and additional unaffiliated Account and MMDA are discussed below limited circumstances prior notification will Program Banks to provide Total Program under “Withdrawal Procedures.” Coverage of up to $5,000,000. not be possible. Federal banking regulations limit the transfers • For Direct Accounts owned by For Additional disclosure on the participating from an MMDA to a total of six (6) during a Profit Entities, your Priority List will not Program Banks will be made as required. monthly statement cycle, which is generally include the RBC Affiliate Banks but will Program Bank participation, including that the 26th through the 25th of each month (the include unaffiliated Program Banks to of the RBC Affiliate Banks, will be subject to “Statement Cycle”). If the 26th or 25th falls on a provide Total Program Coverage of up to each Program Bank’s eligibility to participate holiday or weekend, then the Statement Cycle $5,000,000. in the Program. start or end will begin on the next business • For Direct Accounts that are Retirement B. ESTABLISHMENT OF, AND DEPOSITS INTO, day. At any point during a Statement Cycle in Accounts, the only Program Banks on your THE DEPOSIT ACCOUNTS which transfers from an MMDA at a Program Priority List will be the RBC Affiliate Banks Bank have reached the applicable limit, all to provide Total Program Coverage of up to Under the Program, when funds are first funds will be transferred from that MMDA to $498,000. available for deposit, RBC CM, as your agent, the linked Transaction Account at the Program • For Third Party Accounts, your Priority List will establish Deposit Accounts consisting Bank until the end of the Statement Cycle. will not include the RBC Affiliate Banks but of (1) a money market deposit account Deposits for the remainder of the Statement will include unaffiliated Program Banks to (“MMDA”) and (2) a linked transaction Cycle into this Program Bank will be made to provide Total Program Coverage of up to account, which includes either a negotiable the Transaction Account. At the beginning of $5,000,000. order of withdrawal account or a demand the next Statement Cycle, funds on deposit in deposit account (the negotiable order of the Transaction Account will be transferred Your Priority List of available Program Banks withdrawal account and demand deposit to the MMDA, minus any minimum amount into which your funds may be deposited is account are collectively referred to herein as to be maintained in the Transaction Account. available through your online Account access “Transaction Account”) at one or more of the The limits on MMDA transfers will not limit on the website you use to access your Account Program Banks on your then-current Priority the number of withdrawals you can make from information or by contacting your Financial List in the order set forth on the Priority List. funds on deposit at a Program Bank or the Advisor. For a list of the applicable website Once your funds in the Deposit Accounts at a amount of FDIC insurance coverage for which addresses, please see Section X below. Program Bank reach the Deposit Threshold, you are eligible. 5

In the event that you reach your Total funds are insufficient to satisfy the debit F. CHANGES TO THE PRIORITY LIST Program Coverage because you have in your Account, funds will be withdrawn RBC CM may change the number of Program deposits equal to the Deposit Threshold in from your Transaction Accounts at the Banks on the Priority List by adding Program Deposit Accounts at each of the available Program Banks on your Priority List Banks to, or deleting Program Banks from, Program Banks on your Priority List, beginning with the lowest priority Program the Priority List. One or more of the Program additional available cash balances in all Bank on the Priority List at which your Banks included on the Priority List may be Accounts except Direct Accounts that are funds have been deposited. If there are replaced with a Program Bank not previously Retirement Accounts will be invested in insufficient funds at that Program Bank, included on the Priority List and the order shares of the US Government Fund and funds will be withdrawn from each Program of Program Banks on the Priority List may available cash balances in Direct Accounts Bank in the sequence (lowest priority to change. In general, you will receive prior that are Retirement Accounts will be invested highest priority) until the debit is satisfied. notification of changes to the Priority in shares of the Federated Money Market If funds in the Transaction Account at a List via your online Account access or the Fund. If, as a result of credited interest Program Bank from which funds are being publicly available Priority List available on your Deposit Accounts, your Deposit withdrawn are insufficient to satisfy a debit, at www.rbcwm-usa.com. You will have an Account balances at all of the Program funds in the related MMDA at that Program opportunity to designate a Program Bank Banks on your Priority List exceed your Total Bank will be transferred to the Transaction as ineligible to receive your deposits before Program Coverage, amounts over your Total Account to satisfy the debit, plus funds to any funds are deposited into a new Program Program Coverage will be withdrawn and maintain any mincimum amount in the Bank or in a new sequence by contacting automatically invested in shares of the Money Transaction Account. your Financial Advisor. However, if a Program Market Fund applicable to your Account. Bank is unable to accept deposits for As required by federal banking regulations, regulatory or other reasons, RBC CM may not Investments in the Money Market Funds are the Program Banks reserve the right to be able to provide you with advance notice. not covered by FDIC insurance. However, require seven (7) days’ prior notice before RBC CM will provide you notice of such shares of the Money Market Funds held in your permitting a transfer of funds out of a changes as soon as practicable. Account are covered by SIPC up to applicable negotiable order of withdrawal account limits. You may access the most recent US or MMDA. While the Program Banks have In the event that the order of Program Banks Government Fund prospectus by accessing indicated that they have no present intention on the Priority List is changed, on the day www.rbcgam.com and the most recent of exercising their right to require such on which the revised Priority List is effective Federated Money Market Fund prospectus by notice, the Program Banks may exercise this your previously deposited funds will be contacting your Financial Advisor. right at any time in their sole discretion. reallocated among the Program Banks on the revised Priority List in accordance with the C. DESIGNATING THE MONEY MARKET FUNDS E. ACCOUNTS SUBJECT TO DEPOSIT deposit procedures described above under AS INELIGIBLE TO RECEIVE YOUR FUNDS AGGREGATION Section II.B., unless a given Program Bank You may at any time designate your Accounts held by you in the same insurable on the revised Priority List is temporarily applicable Money Market Fund as ineligible capacity (e.g., individual, joint, IRA, etc.) unable to accept deposits for regulatory or to receive your funds by contacting your for FDIC purposes will be linked by us for other reasons. In such case, that Program Financial Advisor. Please allow five business purposes of the Deposit Threshold at each Bank will not have funds reallocated to it in days to process your request. Program Bank so that the aggregate Deposit accordance with the deposit procedures set Account balances in the linked Accounts forth above. When the Program Bank that If you designate the Money Market Fund as do not exceed the Deposit Threshold at could not accept your funds is again able to ineligible to receive your funds and you do any Program Bank. You cannot request that accept your funds, available cash balances in not direct us to place your funds in a different Accounts be linked or request that Accounts your Account will be placed in that Program investment, available cash balances in excess that are linked cease to be linked. Bank in accordance with the standard deposit of the Total Program Coverage will remain in procedures. Other than as described above, the Program and be allocated to the Excess A withdrawal to satisfy a debit in one or more deposits and withdrawals of your funds made Bank listed on your Priority List without linked Accounts on any day will be satisfied after a change to the Priority List will occur limitation and without regard to the FDIC before a deposit of available cash balances as described above under Section II.B. and insurance limit in any of the other Accounts are allocated. Section II.D., respectively. As with any withdrawal, shares of a Money D. WITHDRAWAL PROCEDURES Market Fund held in that Account will be If a Program Bank on the Priority List is All withdrawals necessary to satisfy debits redeemed before withdrawing funds from temporarily unable to accept deposits, in your Account will be made by RBC CM any Deposit Accounts held by that Account. funds deposited in other Program Banks on as your agent. A debit in your Account may Withdrawals will be made on a last-in, the Priority List while it is unable to accept result for many reasons, including but not first-out basis based on that Accounts prior deposits will not be reallocated to it when it is limited to, the following examples: you make deposit history. Deposit Account balances able to accept deposits. This could result in a a securities purchase or, if your Account has and Money Market Fund shares held in one Program Bank on the Priority List temporarily such services, you write a check, withdraw Account will not be used to satisfy a debit in having a smaller deposit balance than funds or make purchases using your debit another linked Account. Program Banks in a lower priority position on card, or make payments pursuant to bill the Priority List. payment services. After all withdrawals are allocated, available cash balances for deposit in the remaining If a Program Bank at which you have Deposit For all Accounts, funds will be withdrawn from linked Accounts are allocated to the Program Accounts no longer makes the Deposit the Program in the following order: Banks on your Priority List beginning with Accounts available, you will be notified the Account that has the lowest numerical by RBC CM and given the opportunity to • If you have funds invested in a Money Account number (e.g., funds in Account establish a direct depository relationship Market Fund, shares in the Money Market 123 are deposited before funds in Account with the Program Bank, subject to its rules Fund will be redeemed to satisfy a debit in 124). Because deposits from linked Accounts with respect to establishing and maintaining your Account before funds are withdrawn are allocated on a “first come, first served” deposit accounts. If you choose not to from the Deposit Accounts. basis, Deposit Account balances may not be establish a direct depository relationship • If you do not have funds invested in a allocated equally between linked Accounts. with the Program Bank, your funds will be Money Market Fund, or your invested transferred to the next available Program 6

Bank on your Priority List. The consequences segment based on the higher of the (i) total New Client Accounts. All new Direct of maintaining a direct depository assets in Accounts held at RBC WM or (ii) total Accounts that select the Program will be relationship with a Program Bank are commissions and fees paid from the client’s automatically assigned to the Interest Rate discussed below in Section VII. Accounts to RBC WM over the previous 12 Segment 3. During the monthly review months, aggregated by household. Clients process outlined previously, any Accounts III. PROGRAM AMENDMENT AND NOTICES with greater total household assets or that are eligible for a higher interest rate commissions/fees may qualify for higher segment will be automatically changed to the RBC CM, at its discretion, may modify the rates than clients with lower total household eligible segment. terms, conditions and procedures of the assets or commissions/fees. Program, including, but not limited to, the • Direct Accounts that are Retirement methodology used to determine the interest In determining household values, RBC WM Accounts takes into consideration multiple pieces of rates on Deposit Accounts, changing the Direct Accounts that are Retirement client information, including street address, deposit or withdrawal procedures, or adding Accounts will earn an interest rate equal to tax ID, last name, telephone number, or removing Program Banks from the Program. Interest Rate Segment 1, as shown above. RBC CM will notify you of any such changes zip code and account type to determine that adversely affect you. All notices may be householding of Accounts. RBC WM reserves • Introducing Broker Accounts made by a letter, an entry on your RBC CM the right to modify how it determines a Clients with an Introducing Broker Account statement, an insert to your Account household and the right to amend the Account will be placed in an interest statement or by other means such as posting definition of eligible assets, commissions/ rate segment designated by RBC a change to the Priority List to the publicly fees. To find out the total commission/ Correspondent Services. Certain available website at www.rbcwm-usa.com. fees you have paid over the past 12 months contact your Financial Advisor. introducing brokers may utilize a separate interest rate schedule and if this IV. INTEREST ON THE DEPOSIT ACCOUNTS The following total household asset and twelve- is the case you will, if necessary, receive AND YIELDS ON THE MONEY MARKET FUNDS month trailing commission and fee levels will an additional disclosure document determine a client’s interest rate segment: that describes the separate interest A. INTEREST RATES ON THE DEPOSIT rate schedule. At any time, you may ACCOUNTS Interest Rate Segments: Total Household determine the rate of interest earned Deposit Account balances in the MMDA and Assets -or- 12-Month Trailing Commissions/ by your deposit balances in the Deposit Transaction Account at each Program Bank Fees (current as of March 01, 2018) Accounts by accessing your appropriate will earn the same rate of interest. Interest Account website. (See Section X below). rates on the Deposit Accounts are variable 1 $5,000,000 or more or $50,000 or more If you have any questions, contact your and subject to change without notice. 2 $1,000,000 – $4,999,999 or $10,000 – financial professional. Interest will accrue on Deposit Account $49,999 • Investment Advisor Accounts balances from the day funds are deposited 3 Under $999,999 or Under $10,000 into the Deposit Accounts at a Program Bank Clients with an Investment Advisor through the business day preceding the date Employees of RBC CM and its affiliates who Account will be placed in an interest of withdrawal from the Deposit Accounts hold Accounts at RBC CM are eligible for rate segment designated by RBC at the Program Bank. The interest accrual Interest Rate Segment 1 of the Program. Advisor Services. At any time, you may period is generally the 26th through the 25th determine the rate of interest earned of each month. Interest will not be subject to Existing Client Accounts. On a monthly by your deposit balances in the Deposit the Deposit Threshold until credited. basis, RBC WM will review a client’s total Accounts by accessing your appropriate household assets and trailing twelve-month Connect Website. (See Section X below). The interest rates you receive on your funds commissions and fees to determine if the If you have any questions, contact your in the Deposit Accounts may be higher or client is eligible for a higher interest rate financial professional. lower than the interest rates available on segment. If the client is eligible for a higher other deposit accounts offered by a Program interest rate segment, the interest rate C. YIELDS ON THE MONEY MARKET FUNDS Bank or on deposit accounts offered by segment will automatically be changed to The US Government Fund is a money other depository institutions or on any the eligible segment (for example, move market fund managed by RBC Global Asset money market funds. You should compare from Interest Rate Segment 3 to Interest Rate Management (U.S.) Inc., an affiliate of RBC the terms, interest rates, required minimum Segment 2). Capital Markets, LLC. The Federated Money amounts, and other features of the Deposit Market Fund is not affiliated with RBC CM. Accounts with other deposit accounts and On an annual basis, RBC WM may review a alternative cash sweep options. You may client’s total household assets and trailing Information regarding the current yield for obtain information with respect to the twelve-month commissions and fees to the US Government Fund is available at www. current Program interest rates and interest determine if the client is still eligible for his rbcgam.com, or by contacting your Financial rate segments by contacting your Financial current interest rate segment. If the client has Advisor. Information regarding the current Advisor or consulting your appropriate client experienced a reduction in household assets or yield for the Federated Money Market Fund is Website. RBC CM and the Program Banks commissions and fees, and is no longer eligible available by contacting your Financial Advisor. reserve the right to change the interest rates for his current interest rate segment, the Yields on the Money Market Funds may be and interest rate segments, which, from client’s interest rate segment may be changed less than the interest rates offered on the time to time, could result in there being no to the highest interest rate segment for which Deposit Accounts by the Program Banks on difference between the interest rates for the the client is eligible. If this is the case, the client your Priority List. different interest rate segments. will receive a 30-day advance written notice and will have the opportunity to increase his You may obtain a copy of US Government B. INTEREST RATE SEGMENTS assets at RBC WM in order to maintain his Fund’s prospectus from your Financial current interest rate segment. If the client is Advisor or online at www.rbcgam.com, and a • Direct Accounts unable to increase his assets, his interest rate copy of the Federated Money Market Fund’s The interest rates on the Deposit Accounts segment will be changed to the highest interest prospectus from your Financial Advisor. for Direct Accounts that are not Retirement rate segment for which he is eligible. Accounts will be available by segments. Clients qualify for a particular interest rate 7

that RBC CM will act only to clear trades B. RELATIONSHIP WITH THE PROGRAM BANKS V. INFORMATION ABOUT YOUR DEPOSIT introduced by your Financial Advisor and The Program Banks are not responsible for the ACCOUNTS to effect other back office functions for actions of RBC CM with respect to the Program your Financial Advisor. You understand You will not receive trade confirmations or otherwise. Your deposit in any Deposit that all representatives, employees and for transactions in your Deposit Accounts. Account constitutes a direct obligation of a other agents with whom you communicate Transactions in the Deposit Accounts will be Program Bank and is not directly or indirectly an concerning your Account(s) are agents of confirmed on your Account statement, which obligation of RBC CM. You can obtain publicly your financial professional, and are not RBC will also reflect the total of your opening and available financial information concerning CM representatives, employees or other closing Deposit Account balances, the dollar each Program Bank at www.ffiec.gov/nic or by agents. RBC CM has no responsibility to amount of interest earned, the interest rate, contacting the FDIC Public Information Center supervise or monitor the activities of your and the number of days for which interest by mail at L. William Seidman Center, Virginia Financial Advisor, and the Financial Advisor was earned. In addition, your Account Square, 3501 North Fairfax Drive, Arlington, is exclusively responsible for ensuring that statement will reflect the principal deposit Virginia 22226 or by phone at 703-562-2200. transactions in your Account(s) comply balance held at each Program Bank as of the RBC CM does not guarantee in any way the in all respects with applicable laws, rules end of the statement period. In addition, financial condition of the Program Banks or and regulations and are suitable for your you will not receive trade confirmations the accuracy of any publicly available financial investment goals and objectives. for automatic investments in a Money information concerning the Program Banks. Market Fund made through the Program. Your Account statement will reflect your VII INFORMATION ABOUT YOUR C. FEES TO RBC CM investments in a Money Market Fund made RELATIONSHIP WITH RBC CM AND THE Each Program Bank, except the RBC Affiliate through the Program. You will receive a PROGRAM BANKS Banks, will pay RBC CM a fee determined by prospectus for the US Government Fund or RBC CM equal to a percentage of the average Federated Money Market Fund following the A. RELATIONSHIP WITH RBC CM daily deposit balance in the Deposit Accounts at first purchase of such Money Market Fund RBC CM is acting as your exclusive agent and the Program Bank. The fee paid to RBC CM may shares made through the Program. custodian in depositing, withdrawing and be up to 3.50% annually on some of the Deposit Accounts. In the case of the RBC Affiliate Banks, Your Account statement will not show the transferring funds to and from the Deposit RBC CM will receive a fee per Account that movement of funds between the Transaction Accounts, and in investing your funds in will range from $10.00 to $100.00 annually. For Account and the related MMDA at a Program shares of a Money Market Fund. Your Deposit Direct Accounts that are Retirement Accounts, Bank or among Program Banks. You may Account ownership will be evidenced by a RBC Affiliate Banks will not pay RBC CM a per obtain information about your Deposit book entry on the records of the Program account fee. Accounts, including balances and the current Banks and by records maintained by RBC CM and its agents. No evidence of ownership, interest rates, by contacting your Financial The amount of fees received by RBC CM such as a passbook or certificate, will be Advisor or by accessing your Account online. will affect the interest rate you earn on your issued to you. You should retain your Account statements deposits. In its discretion, RBC CM may for your records. Unless you establish the Deposit Accounts reduce its fee and may vary the amount of the directly with a Program Bank as described reductions between clients. The fee may vary VI. THIRD PARTY ACCOUNTS below, all transactions with respect to your among Program Banks. Deposit Accounts must be directed by RBC CM RBC Correspondent Services acts as clearing In the case of the US Government Fund, RBC and all information concerning your Deposit broker for Introducing Broker Accounts. CM affiliate RBC Global Asset Management Accounts can only be obtained from RBC CM. RBC Advisor Services provides custody and (U.S.) Inc. will receive a management fee on Accordingly, you should direct all instructions execution services for Investment Advisor investments in the US Government Fund. related to sweep transactions to your Financial Accounts under a contractual arrangement Please see the US Government Fund prospectus Advisor. No Program Bank will accept any with the investment advisors. document at www.rbcgam.com for more instructions concerning your interest in a information. If your Account is a Third Party Account Deposit Account under the Program unless (i) RBC CM will not review or analyze your such instructions are transmitted by RBC D. CONFLICTS AND BENEFITS TO RBC CM AND RBC Account for the purpose of providing advice CM or an authorized agent on behalf of RBC AFFLIATE BANKS to you and RBC CM will not provide any CM. RBC CM may use agents to effect its RBC CM and the RBC Affiliate Banks receive advice regarding your Account, including responsibilities under the Program. financial benefits in connection with the the suitability of the Program (ii) RBC CM RBC CM may, in its sole discretion and Program. In addition to the fees RBC CM assumes no responsibility for trades made without notice, terminate your participation receives from the Program Banks, RBC CM in your Account, and (iii) RBC CM has no in the Program at any time. Similarly, you may receive other compensation from the responsibility or liability for any actions or may terminate your participation in the RBC Affiliate Banks that is reflected by internal omissions of your financial professional Program at any time by contacting your allocations made for reporting purposes. or its representatives, employees or other Financial Advisor. In either case, you may Through the Program, the RBC Affiliate Banks agents. Therefore, you must consult your establish a direct depository relationship will receive a stable source of deposits at a cost financial professional for advice and with the Program Banks by requesting to that may be less than other alternative funding recommendations concerning your Account have your Deposit Accounts established in sources available to them. The RBC Affiliate and you should discuss all your investment your name, subject to the Program Bank’s Banks intend to use deposits in the Deposit goals and objectives with your financial rules with respect to maintaining such Accounts to fund investments or other bank professional. SHOULD YOU HAVE ANY accounts. This will result in the separation assets. The profitability on such investments QUESTIONS CONCERNING ANY ASPECT of the Deposit Accounts from your Account. and assets is generally measured by the OF THE INFORMATION CONTAINED Your Deposit Account balances will no longer difference, or “spread,” between the interest rate HEREIN, YOUR ACCOUNT OR SECURITIES be reflected in your Account statement and paid on the Deposit Accounts, fees paid to RBC IN GENERAL, CONTACT YOUR FINANCIAL RBC CM will have no further responsibility CM, and other costs of maintaining the Deposit PROFESSIONAL IMMEDIATELY. concerning your Deposit Accounts. Accounts, and the interest rate and other By participating in the Program, clients income earned on those investments and assets of a Third Party Account understand funded by the funds in the Deposit Accounts. 8

institution pursuant to a merger or whether or not maintained by the same VIII. FDIC DEPOSIT INSURANCE COVERAGE consolidation, the Deposit Accounts will employer or employee organization. A. GENERAL INFORMATION continue to be insured separately, up to the FDIC insurance coverage limits, from any C. QUESTIONS ABOUT FDIC DEPOSIT Balances in the Deposit Accounts are insured deposits that you have established with the INSURANCE COVERAGE by the FDIC, an independent agency of the acquiror until the expiration of a six-month If you have questions about FDIC insurance U.S. Government, up to $250,000 for all period from the date of the acquisition. coverage, please contact your Financial deposits held in the same insurable capacity at Thereafter, the Deposit Accounts will be Advisor. You may wish to seek advice any one Program Bank. Examples of insurable aggregated with your existing deposits with from your own attorney concerning FDIC capacities include individual accounts, joint the acquiror held in the same capacity for insurance coverage of deposits held in more accounts, and IRAs. Your funds become purposes of FDIC insurance coverage. than one insurable capacity. You may also eligible for deposit insurance immediately obtain information by contacting the FDIC, upon placement into a Deposit Account at IMPORTANT: Certain transfers into the Deposit Insurance Outreach, Division of a Program Bank. Any deposits that you may Program will NOT be covered by FDIC Depositor and Consumer Protection, by maintain directly with a particular Program insurance until the following business day: letter (550 17th Street, N.W., Washington, D.C. Bank, or through any other intermediary, in the 20429), by phone (877- 275-3342 or 800- 925- same insurable capacity in which the Deposit 1. If you change your cash sweep option 4618 (TDD)), by visiting the FDIC website Accounts are maintained would be aggregated from a money market fund cash sweep at www.fdic.gov/deposit/index.html, or by with the Deposit Accounts for purposes of the option or RBC Cash Plus to the Program, e-mail using the FDIC’s On-line Customer $250,000 federal deposit insurance limit. the money market fund shares plus accrued dividends or deposit balances Assistance Form available on its website. You are responsible for monitoring the total plus accrued interest will be redeemed amount of deposits that you hold with any or withdrawn and the total proceeds IX. SIPC PROTECTION one Program Bank, directly or through an will be placed into your Account on the intermediary, including an Excess Bank, transaction date. However, the funds will In the event of the failure of a brokerage firm in order to determine the extent of deposit not be deposited in Deposit Accounts at or theft by a broker, SIPC helps customers insurance coverage available to you on your the Program Banks on your Priority List whose assets are held at the brokerage firm. deposits, including the Deposit Accounts. until the following business day with the Balances maintained in the Deposit Accounts RBC CM is not responsible for any insured result that the funds will be covered only at the Program Banks are not protected by or uninsured portion of the Deposit by SIPC until the funds are deposited in SIPC or any excess coverage purchased by Accounts or any other deposits. the Deposit Accounts. RBC CM. Clients may obtain information about SIPC and access a SIPC brochure, by In the event a Program Bank fails, the Deposit 2. If the Program is your cash sweep option contacting SIPC at 1-202-371-8300 or by Accounts at that Program Bank are insured, up and you transfer funds to your Account visiting www.sipc.org. to $250,000, for principal and interest accrued using a Letter of Authorization, those to the day the Program Bank is closed. funds will be placed into your Account on the transaction date. However, the funds X. ADDITIONAL INFORMATION Under certain circumstances, if you become will not be deposited in Deposit Accounts If you have any questions about your Account the owner of deposits at a Program Bank at the Program Banks on your Priority or the Program please contact your Financial because another depositor dies, beginning List until the following business day with Advisor or for additional information about six months after the death of the depositor the result that the funds will be covered the Program please refer to your online the FDIC will aggregate those deposits for only by SIPC until the funds are deposited Account access: purposes of the $250,000 federal deposit in the Deposit Accounts insurance limit with any other deposits that Please consult the following for an In both of the above cases, the amounts in you own in the same insurable capacity at the account with: Program Bank. Examples of deposit accounts the Program will begin accruing interest at that may be subject to this FDIC policy the appropriate Program interest rate on Direct Accounts include joint accounts, “payable on death” the transaction date (the date the funds are www.rbcwm-usa.com accounts and certain trust accounts. The deposited into your Account). Interest will accrue up to, but not including, the day on Introducing Broker Accounts FDIC provides the six-month “grace period” www.investor-connect.com to permit you to restructure your deposits which funds are withdrawn from the Deposit to obtain the maximum amount of deposit Accounts. Investment Advisor Accounts insurance for which you are eligible. www.rbcadvisorconnect.com B. AGGREGATION RULES APPLICABLE TO In the event that federal deposit insurance RETIREMENT ACCOUNTS If you would like more information about payments become necessary, payments of Under FDIC regulations, an individual’s the Money Market Funds, please review the principal plus unpaid and accrued interest interests in plans maintained by the same prospectus available online at www.rbcgam. will be made to you. There is no specific time employer or employee organization (e.g., com or contact your Financial Advisor. period during which the FDIC must make a union) that are holding deposits of the insurance payments available, and RBC CM same Program Bank will be insured for is under no obligation to credit your Account $250,000 in the aggregate. In addition, under with funds in advance of payments received FDIC regulations, an individual’s interest from the FDIC. Furthermore, you may be in the deposits of one Program Bank held required to provide certain documentation by (i) IRAs, (ii) deferred compensation to the FDIC and RBC CM before insurance plans for certain employees of state or local payments are made. For example, if you hold governments or tax-exempt organizations deposits as trustee for the benefit of trust (i.e., Section 457 Plans), (iii) self-directed participants, you may be required to furnish “Keogh Plans” of owner-employees described affidavits and provide indemnities regarding in Section 401(d) of the Internal Revenue an insurance payment. Code of 1986, as amended, and (iv) self- directed defined contribution plans, will be If your Deposit Accounts at a Program insured for up to $250,000 in the aggregate Bank are assumed by another depository