Agreements and Disclosures

For more information Call ResourceLine, our interactive voice response telephone unit, 24 hours a day, 7 days a week at 800-762-1000, Option”0” in the U.S. Outside the U.S., call ResourceLine collect at 201-352-5257.

Information about how we charge for our services and a detailed explanation of fees for selected investments and services are available at .com/accountdisclosures.

This booklet contains disclosures required by federal law. Please keep this information for future reference. Intentionally Left Blank About Your UBS Account: General Terms and Conditions 1 5 3 19 41 49 55 63 69 70 71 73 79 81 83 85 87 15 23 27 31 ......

...... For more information Information about how we charge for our services and a detailed explanation of fees for selected investments and services are available at ubs.com/accountdisclosures......

...... UBS Agreement Disclosure Statement for Savings Incentive Match Plan for Employees (SIMPLE) Retirement Accounts Custodial Agreement for SIMPLE Retirement Accounts IRS Letter Appointing UBS Inc. as a Custodian of IRAs Bill Payment and Electronic Funds Transfer Service Disclosure Statement for Traditional or Roth Individual Retirement Accounts UBS MasterCard Agreement Custodial Agreement for Traditional or Roth Individual Retirement Accounts

Account Protection UBS Financial Services Business Continuity Plan UBS Dividend Reinvestment Program Disclosure Statement. Revenue Sharing Payment for Order Flow and Tax Forms for non-U.S. clients UBS Account Sweep Program UBS International Sweep Program Disclosure for International Resource Management Account Disclosure Statement Statement of Credit Practices Affiliated Business Arrangement Disclosure Statement Client Privacy Notice Agreements for UBS Services and Products Agreements and Disclosures for IRAs UBS Rewards Program Additional Disclosures Between Investment Advisory and Broker-Dealer Services General Terms and Conditions Fees and Charges Conducting Business at UBS: Understanding the Differences General Disclosures Agreements With UBS Information Information About Your Relationship With Us III. II. . I. Table Table of Contents Intentionally Left Blank

2 Conducting Business with UBS UBS with Business Conducting Account: UBS Your About Understanding the Differences Between Investment Advisory and Broker-Dealer Services

“You,” “your” and As a firm that provides services to applicable state laws. The standards for broker-dealers “yours” refer to you as clients in the U.S., UBS Financial Services Inc. is registered include the following: Client(s) of UBS. with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer and an investment adviser, offering both • As your broker-dealer, we have a duty to deal fairly “UBS,” “we,” “us,” “our” brokerage and investment advisory services. with you. Consistent with our duty of fairness, we are and “ours” refer to UBS obligated to make sure that the prices you receive when Financial Services Inc. Our clients work with their Financial Advisors to determine we execute transactions for you are reasonable and and unless we indicate the services that are most appropriate given their goals and fair in light of prevailing market conditions and that otherwise, its successor firms, subsidiaries, circumstances. Based on the services you request, we can the commissions and other fees we charge you are not correspondents and fulfill your wealth management needs in our capacity as a excessive. Affiliates, including its broker-dealer, as an investment adviser, or as both. Most of • We must have a reasonable basis for believing that any parent company, UBS our Financial Advisors are qualified and licensed to provide securities recommendations we make to you are suitable AG. both brokerage and advisory services depending on the and appropriate for you, given your individual financial services their clients need. circumstances, needs and goals. “Affiliates” refers to • We are permitted to trade with you for our own account UBS Financial Services In addition, some of our Financial Advisors hold educational (“principal trading”) or for an affiliate or another client Incorporated of Puerto Rico (which clears or professional credentials, such as the Certified Financial and may earn a profit on those trades. When we engage through UBS Financial ® Planner™ (CFP ) designation. Holding a professional in these trades, we disclose the capacity in which we Services Inc.), UBS designation typically indicates that the Financial Advisor acted on your confirmation, though we are not required USA, UBS Credit Corp., has completed certain courses or continuing education. to communicate this or obtain your consent in advance UBS Trust Company, However, a Financial Advisor’s professional designation or to inform you of the profit earned on the trades. N.A. and their insurance does not change UBS’s or the Financial Advisor’s obligation • When we act as your broker-dealer, we do not agency affiliates and to you in either the advisory or brokerage services offered enter into a fiduciary relationship with you. Absent subsidiaries and all other to you. special circumstances, we are not held to the same subsidiaries and affiliates. legal standards that apply when providing investment Examples of our advisory It is important to understand that brokerage and advisory services. Our legal obligations to disclose programs and services investment advisory services are separate and distinct detailed information to you about the nature and scope include our financial and each is governed by different laws and separate of our business, personnel, fees, conflicts between our planning services and contracts with you. While there are similarities and your interests and other matters are more our , Portfolio between the brokerage and advisory services we limited than when we are providing investment advisory Management Program provide, depending on the capacity in which we act, services to you. (PMP), Managed our contractual relationship and legal duties to you Accounts Consulting, Strategic Advisor are subject to a number of important differences. SELECTIONS, Strategic Our Services as an Investment Adviser and Wealth Portfolio, This document is intended to inform you about the Relationship With You and PACE programs. key distinctions between brokerage and investment An example of our advisory services and our respective duties and In our capacity as an investment adviser, we offer client brokerage accounts obligations. We encourage you to review it carefully a number of investment advisory programs, including is our Resource and discuss it with your Financial Advisor. comprehensive financial planning, discretionary account Management Account. management, non-discretionary investment advisory programs, and advice on the selection of investment Our Services as a Broker-Dealer and Relationship managers and mutual funds offered through our With You investment advisory programs. These services are offered in programs where fees are calculated as a percentage of As a full-service broker-dealer, our services are not assets in the account or a flat or annual fee. limited to taking customer orders and executing securities transactions. In this capacity, we provide a variety of services When we act as your investment adviser, we generally relating to investments in securities, including providing will enter into a written agreement with you expressly investment research, executing trades and providing custody acknowledging our investment advisory relationship services. In a brokerage account, you pay us a commission with you and describing our obligations to you. At the each time we execute a transaction in your account. We beginning of our advisory relationship, we will give you our also make recommendations to our brokerage clients about Form ADV brochure, which provides detailed information whether to buy, sell or hold securities. We consider this about the program(s) you select; the advisory services we to be part of our brokerage services and do not charge a provide; our fees, personnel, other business activities and separate fee for this advice. Our recommendations must financial industry affiliations; and conflicts between our be suitable for you, in light of your particular financial interests and your interests. circumstances, goals and tolerance for risk.

When we work with you in our capacity as broker-dealer, Our Fiduciary Responsibilities as an Investment we do not make investment decisions for you or manage Adviser your accounts on a discretionary basis. We will only buy or sell securities for brokerage clients based on specific As your investment adviser, we are considered to have directions from you. a fiduciary relationship with you under the Investment Advisers Act of 1940 and applicable state laws. Specifically, we are required to: Our Responsibilities to You as a Broker-Dealer • Disclose all material conflicts between our interests and When we act as your broker, we are subject to the your interests. Securities Exchange Act of 1934, the Securities Act of • Inform you if we or our affiliates receive additional 1933, the rules of self-regulatory organizations such as compensation from you or a third-party as a result of our the Financial Industry Regulatory Authority (FINRA) and relationship with you.

3 About Your UBS Account: Conducting Business with UBS with Business Conducting Account: UBS Your About

• Obtain your informed consent before engaging in • Act in what we reasonably believe to be your best transactions with you for our own account or that of interests, and in the event of a conflict of , place an affiliate or another client when we act in an advisory your interests before our own. capacity. • Treat you and our other advisory clients fairly and Our contractual agreements with you will specify whether equitably, without unfairly favoring one client to the we are acting as a “fiduciary” to a retirement plan account disadvantage of another. for purposes of the Employee Retirement Security Act of • Make investment decisions or recommendations that: 1974 or the Internal Revenue Code. – Are suitable and appropriate for you. – Are consistent with your investment objectives and goals. – Reflect any restrictions you have placed on us.

4 About Your UBS Account: General Terms and Conditions 5 “Accounts” refers to all accounts you open with us now or in the future. Throughout this Agree- and “your” “you,” ment, to refer you “yours” as a of UBS. Client(s) “UBS,” “we,” “us,” “our” to and refer “ours” UBS Inc. Services Financial we and, unless indicate otherwise, its successor subsidiaries, firms, and correspondents including affiliates, its limitation, without UBS company, parent AG. to refers “Affiliates” UBS Financial Services Incorporated of Puerto clears Rico (which UBS Financial through Services Inc.), UBS Bank USA, UBS Credit Corp., UBS Company, Trust N.A. and their insurance and affiliates agency subsidiaries, and all other subsidiaries and affiliates. to refers “UBS Entity” UBS Financial Services Inc. and each of these affiliates. your consult Please tax or legal advisor for the about information that is form of ownership appropriate for you. UBS and its employees do not give tax or legal advice. includes, “Property” but is to, not limited , securities, bonds, options, stocks, contracts, futures notes, commercial commodities, of certificates paper, and other deposit obligations, contracts, usually all property other and customarily dealt in and firms by brokerage that any property other in can any be of recorded your accounts with us. after we receivewritten notice from any Account Holder closing the Joint Account. Each of the Account Holders of the Joint Account agrees to indemnify and hold us, the Card Issuer and Check Provider harmless from and against any losses, causes of action, damages and expenses arising from, or as a result of, our following the instructions of any one of the Account Holders. Rights of Survivorship If you have a Joint Account with rights of survivorship and any of the Joint Account Holders dies, all assets in the Account pass to the survivor(s) on the same terms and conditions as previously held, without releasing the decedent’s estate from the liabilities. Property Distribution from a Joint Account Before we distribute any Property from a Joint Account, we, the Card Issuer and the Check Provider are entitled to recover any costs we may incur, including reasonable attorney’s fees, as a result of a among Account Holders relating to or arising from a Joint Account or the death of one or more Joint Account Holders. The estate of a Joint Account Holder who has died will be liable and any survivors or heirs shall continue to be liable, jointly and severally, to us, the Card Issuer and/ or the Check Provider for any debit balance or loss in the Joint Account as a result of transactions initiated before we receive notification of a death. The estate and survivors will also be liable for any losses incurred during the liquidation of a Joint Account or the adjustment of the interests of the surviving parties. The Joint Account Holders on behalf of themselves, their estates and heirs agree to indemnify and hold harmless UBS, the Card Issuer and the Check Provider from any liability for taxes owed or claims made by third parties in connection with a Joint Account. Custodian Accounts If you open an Account as custodian for a minor under the Uniform Transfer to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA) (an “UTMA/UGMA Account”), you authorize UBS to facilitate the transfer of the UTMA/ UGMA Account to the former minor at the termination of your custodianship under applicable state law, including accepting instructions from the former minor for the transfer UTMA/UGMA assets. Margin Accounts – Securities Lending If we lend your securities as described in the Margin Agreement, you may receive a “substitute payment” in lieu of a dividend. A substitute payment is a payment made to a securities lender such as UBS in lieu of a dividend while the securities are on loan. According to the Internal Revenue Service, a substitute payment is not a “qualified dividend” and is taxed as ordinary income. When possible, we will ensure that individuals and certain qualifying trusts and estates receive qualified dividends rather than substitute payments. If we are unable to do so, we will pay you additional compensation equal to the net, after-tax, difference between your assumed 35% U.S. federal income tax rate on ordinary income and the 15% reduced dividend rate under the 2003 Tax Law.

Communications we send to any Account Holder by mail or other means of communication will be binding on all Joint Account Holders. We may (i) demand payment on any debit balance or loss at any time, (ii) suspend all activity in the Joint Account pending instructions from a court of competent jurisdiction, or (iii) require that instructions for the Joint Account or the Property in it be delivered in writing and signed by all Account Holders. The individual authority of each Account Holder to act in connection with the Joint Account shall continue until a reasonable time Joint Accounts If you open an Account with more than one owner (a “Joint Account”), each Joint Account Holder agrees that any disputes that may arise between you and UBS are subject to the arbitration and governing law clauses in the Client Relationship Agreement. References to the particular form of joint ownership you selected for the Account are for your convenience and reflect the form in which deposits to the account are accepted and credited on our books. Each Joint Account Holder has full power and authority to make purchases and sales, including short sales and the use of margin, to withdraw any Property individually or jointly, or to give any instructions for the Joint Account. We, the Card Issuer and the Check Provider are authorized and directed to act on instructions received from any Account Holder and to accept payment and securities from any Account Holder for credit to a Joint Account. When you carry a Joint Account, you each agree to be jointly and severally liable for all activity in the Joint Account and any debit balance or losses in the Joint Account. At UBS, we want all clients to be well-informed investors. During the account opening process and throughout your relationship with UBS, you will be presented with important disclosures and documents that govern your relationship with us. It is important that you take the time to read and thoroughly understand this information. This section defines the “General Term and Conditions” that apply to you and your Accounts with us. Please contact your Financial Advisor if you have questions or require more information. Approval of your application for an account at UBS is subject to our receiving a signed Client Relationship Agreement from you. If any additional agreements are required for the additional services or features you request, we will provide the necessary forms and documents. After you sign and return the necessary forms, the signed agreements will supplement and become part of your overall agreement and apply to your Account(s). Client Representations By signing a UBS account agreement, you represent and warrant that you and any other individuals who sign on behalf of the named account holder have the authority to open the Account and effect all transactions and other investments for the Account. If you sign the Client Relationship Agreement on behalf of an entity or as a guardian, executor or trustee, you further represent that you have the authority to execute such an Agreement and that the entity is duly authorized to conduct business in the jurisdiction from which it transacts business. General General Terms and Conditions . ® Card ® failure to report Discrepancies within the sixty (60) day period described above. Unauthorized use of signature machines or stamps; Blanks or spaces in required check fields; Checks written in pencil; Entrusting checks to a wrong person; Writing checks payable to “cash”; Failing to report or discover wrongdoing, including your In any event, UBS will not honor claims of unauthorized signature(s) or alteration of checks beyond one (1) year after the statement reflecting the unauthorized signature or alteration was mailed or made available to you. These terms do not change your rights, including the time for making claims and giving notifications, under the . Stop Payments on Checks To place stop payments on checks, call ResourceLine unauthorized unauthorized or missing signature or alteration transactions are first reflected) was mailed or made available to you. If you do not satisfy all of these conditions, you will be liable for a loss to the extent provided by applicable law. It is important that you examine your statements carefully and promptly. You are required to notify UBS Financial Services Inc. of any claimed errors regarding checks reflected on the statement, or of anyunauthorized or missing signature on or alteration of such checks If you do Services not UBS notify Financial (“Discrepancies”). Inc. of any Discrepancies within sixty (60) days after your to was or mailed you, then made (1) available statement on and it all reflected willbechecks your statement deemed Inc. will not Services (2) UBS Financial correct; conclusively be for liable any paid or to checks charged the account or for any Discrepancies regarding checks shown on the and (3) you may statement; not a UBS assert against claim Financial Services Inc. with respect to the Discrepancies. If losses arising from a check occur from your negligence, you may be liable for that loss. Examples of negligence include: If you requested one or more debit cards for your eligible Accounts (each, a “Card”), you authorize us and the Card Issuer to process Card transactions on your behalf • • • • • • You agree to pay a charge for stop payment orders. Please refer to the Fees and Charges section of this booklet for information about stop payment fees. Stop payments on checks are valid for 180 calendar days from the date that the order is received by UBS. You must notify UBS Financial Services Inc. prior to the 180 calendar day expiration in order to renew the stop payment(s) for an additional 180 calendar days. Check Image Processing; Copies of Your Checks Financial institutions may use electronic images of paper checks. When you use our check writing features for eligible accounts, you authorize us and the Check Provider to treat a check image created from your original paper check in the same manner as the original paper check. If you deposit a check with us, we, or the financial institutions processing it, may convert it to a check image for collection. If that check image is returned unpaid, we may return a check image to you (or other copy of the check), not your original paper check. You may request a copy of paid checks from us. We may impose a fee to respond to these requests. The original paper check that you write and provide to a payee will not be provided to you after payment, and may be destroyed. UBS American Express . ® reasonably believes to be authorized, and Check Provider in writing that multiple signatures are required. bearing a drawer signature that the Check Provider bearing only one signature unless you instruct the You will have no liability for unauthorized or missing signature(s) on, nor the alteration of, your checks as long as (a) you have exercised reasonable care in safeguarding your checks from risk of loss or theft; (b) you have not reported two or more incidents of unauthorized use within the preceding twelve months; (c) your Account is in good standing; and (d) you notify UBS Financial Services Inc. within sixty (60) days after your statement (upon which the You also authorize the Check Provider to honor unsigned drafts presented by third parties that the Check Provider reasonably believes you have authorized and in accordance with the Client Relationship Agreement. You agree to pay a charge for checks returned for insufficient funds or for checks that are paid even though they exceed the Withdrawal Limit. We may charge for excessive check writing (e.g., over 100 checks per month). Please see the “Fees and Charges” section of this booklet for additional information. Please notify UBS Financial Services Inc. immediately if you discover the loss, theft or unauthorized use of your checks, and any unauthorized or missing signatures on or alterations of checks, by calling ResourceLine 1. 2. We reserve the right not to pay additional compensation to you if we determine you are ineligible for the federal income tax reduction on qualified dividends under the 2003 Tax Law. In certain circumstances, industry regulations may limit your ability to exercise voting rights of securities that have been lent or pledged to others. Therefore, you may receive proxy materials indicating voting rights for fewer shares than are in your Account, or you may not receive any proxy materials. We will determine which of your voting rights are limited via an impartial lottery allocation system. You agree to participate in the lottery allocation system and to be bound by its results. You also authorize us, in connection with margin and with securities loans made to you in connection with short sales, to retain certain benefits (including, but not limited to, interest on collateral posted for such loans) to which you will not be entitled. Check-Writing If you have requested the check-writing feature on one or more of your eligible Accounts, you may write checks or authorize drafts against your Account, which will be serviced by our Check Provider. You may use these checks or authorize these drafts only in conjunction with your Account and only to amounts within your Account’s “Withdrawal Limit” in the section titled “Withdrawals” below. Checks that exceed your Account’s Withdrawal Limit may be returned unpaid. By using your checks, you authorize us to reimburse the Check Provider in federal funds when your checks or drafts are presented. You also authorize us to debit your Account automatically on or after the day the checks or drafts are received by the Check Provider. You agree to have sufficient assets in your Account on the day you write a check or authorize a draft through the day your Account is debited to pay for the check or draft. You understand that your Account checks may be used in the same manner and are subject to the normal procedures, rules and regulations as checks drawn on an account maintained with the Check Provider. You authorize the Check Provider to honor checks: “Check Provider” is the provider and processor we have appointed to handle payment of your checks and drafts. We reserve the right to change check providers from time to time. UBS Financial Services Inc. and UBS Financial Services Incorporated of Puerto Rico are not and do not represent themselves as banks. Your Account is not a . You may call ResourceLine, our interactive voice response telephone unit 24 hours a day, 7 days a week, at 800-762-1000, Option “0,” in the U.S. Outside the U.S., call ResourceLine collect at 201-352-5257. For details on the “Check 21 Act,” visit www.fdic.gov and search for “check 21.”

About Your UBS Account: General Terms and Conditions 6 About Your UBS Account: General Terms and Conditions 7 “Card Issuer” means Barclays Bank Delaware, its successors and assigns, or the issuer of UBS Cards we appoint in our sole discretion. “Cardholder Agreement” refers to the “UBS American Express Cardholder Agreement” section included in this booklet. If you have questions about your UBS American Express card(s), call your Financial Advisor. The fees for the different program levels of the UBS Rewards Program are desctibed in the additional disclosures. “MasterCard Issuer” refers to First Data Corporation, the entity we have appointed to issue and administer the UBS MasterCard Program or the issuer of the UBS MasterCard we appoint in our sole discretion. Refer to the “UBS MasterCard Cardholder Agreement” for information concerning unauthorized use of the UBS MasterCard. “UBS Visa Issuer” means Barclays Bank Delaware, its successors and assigns, or the issuer of UBS Visa credit cards we appoint in our sole discretion. References to UBS Cards, Card Issuer, Checks and Check Provider apply only if you have requested those services. For more information on“Withdrawal Limit” see the paragraph titled “Withdrawals” below. “Automatic Payments” are transactions initiated by an external to process a withdrawal from a UBS account into an external account. For additional information on payments to UBS and our processors, see the “Security Interest” section of your Client Relationship Agreement. Security Interest granted to us in the Client Relationship Agreement. Deposits As a UBS client, you can make deposits by check, federal funds wire, direct deposit, or the Electronic Funds Transfer The CashConnect feature will apply automatically when you obtain a Credit Card and is subject to the terms of the Bill Payment and Electronic Funds Transfer Service Agreement, even if you do not enroll in the service. Transfers from your Account to pay Cash Advances are considered to be electronic funds transfers for purposes of this Service Agreement. If you have any questions regarding the CashConnect feature, please call UBS Client Services USA at 1-800-762- 1000. Automatic Repayment of Cash Advances through CashConnect The CashConnect feature on your Credit Card account will automatically repay Cash Advances obtained from ATMs and financial institutions (“CashConnect Cash Advances”) with available funds from your eligible brokerage account (UBS Account). You will not incur periodic rate finance charges on CashConnect Cash Advances, as long as there are sufficient available funds in your UBS Account to repay your CashConnect transaction in full when we first seek payment from your UBS Account. If sufficient funds are not available in your UBS Account to pay your CashConnect Cash Advances balance in full, the Variable APR on Cash Advances (as listed in the Account Summary Table in the UBS Visa Signature credit card Cardholder Agreement) will apply as of the original transaction date on any remaining balance. You will be charged the Variable APR on Cash Advances on your remaining CashConnect Cash Advance balance until it is repaid in full. Applicable ATM surcharge fees may apply. No other account balances are paid through the CashConnect feature. Limitations on Checks and Cards You agree that checks, Cards and Credit Cards (Cards and Credit Cards together are referred to as UBS Cards) issued in connection with your eligible Accounts cannot be used to purchase securities or any other products or services offered through UBS. You further understand and agree that we may request, and the Card Issuer and Check Provider may provide us with copies of checks, UBS Card transactions, bill payment and/or other drafts or other transactions processed from your Account(s). Payments to UBS and Our Processors You authorize us to pay all debts you incur to us, the Card Issuer or the Check Provider in connection with your Account(s) from the Withdrawal Limit in your Account(s). Debts include, but are not limited to, the amounts you owe us for securities purchases, account fees, drafts, fees for federal fund wire transfers, customary transaction and brokerage fees, as well as interest you may owe us as a result of margin calls and/or loans in any of your Accounts. Debts also include any Card transactions, automatic repayment of cash advances through CashConnect, Automatic Payments, Bill Payment Service transaction debits, electronic funds transfers, drafts or check charges, or any other means by which you authorize a third party to debit any of your Accounts. In the case of the Card Issuer or Check Provider, however, debts are limited to the amount of your Withdrawal Limit. This authorization is in addition to any other rights we may have, including the

® credit ® ® Credit Card If you apply for and receive a UBS Visa Signature CashConnect Feature for the UBS Visa Signature If you have requested one or more MasterCard(s) (each, a “Card”) with your eligible international Account, you authorize us and the MasterCard Issuer to process Card transactions on your behalf in the manner described below. Use of your Card(s) in connection with your Account will also be governed by the terms and conditions set forth in the UBS MasterCard Cardholder Agreement included in this booklet. You agree to comply with these terms and conditions. You understand that the MasterCard Issuer will allow Card transactions up to the “Withdrawal Limit” described within this document and that transactions with your Card are deducted automatically from your Account(s). You agree to have sufficient assets available in your Account to make payment in full for Card transactions as they become due under the UBS MasterCard Cardholder Agreement. You also understand that if sufficient assets are not available to cover Card transactions, the MasterCard Issuer may suspend and/or cancel your Card. By accepting a Card, you agree that you will not dispose of your assets in your eligible international Account or any other Account you may have with us if that would negatively affect your ability to pay for your Card transactions as they become due under the UBS MasterCard Cardholder Agreement. You understand and agree that we have the right to apply assets in any of your Accounts, or to pursue any of your other assets to pay debts incurred on your Card. UBS MasterCard with your Account will also be governed by the terms and conditions contained in the Cardholder Agreement. You agree to comply with these terms and conditions. You understand that the Card Issuer will allow Card transactions up to the “Withdrawal Limit” described below and that transactions with your Card are deducted automatically from your Account(s). You agree to have sufficient available assets in your Account to make payment in full for Card transactions as they become due under the Cardholder Agreement. You also understand that if sufficient assets are not available to cover Card transactions, the Card Issuer may suspend and/or cancel your Card. By accepting a Card, you agree that you will not dispose of your assets in your eligible Account or any other Account you may have with us, if that would negatively affect your ability to pay for your Card transactions as they become due under the Cardholder Agreement. You understand and agree that we have the right to apply assets in any of your Accounts, or to pursue any of your other assets to pay debts incurred on your Card. as described below. Use of your Card(s) in connection card (a “Credit Card”) from the issuer (“Visa Signature Credit Card Issuer”), you authorize us to transfer funds to the Visa Signature Credit Card Issuer from your Account to repay any cash advances that the Visa Signature Credit Card Issuer tells us you received through your Credit Card at ATMs or banks (Cash Advances). Transfers will be made each business day to repay Cash Advances obtained on the prior day as well as any outstanding balance remaining from earlier unpaid Cash Advances. Transfers will be made up to your Withdrawal Limit. You authorize the Visa Signature Credit Card Issuer and us to share information regarding Cash Advances in order to facilitate the CashConnect feature. The terms of Cash Advances, and the posting of CashConnect transfers to the Credit Card, are the responsibility of the Visa Signature Credit Card Issuer and not us.

authorized to effect such transactions, including without transfer, direct deposit, a UBS check (other than checks written by you or any other client), or a Foreign Collection Credit. check, traveler’s check or U.S. government check drawn on a Bank. from Designated Internal Account or an Authorized Outside Account. non-local check (as defined inFederal Reserve Board Regulation CC) or Limited Partnership Distribution (LPDI security number required). Any and all Account transactions effected by any person The same business day if by cash, federal funds wire One (1) business day later if by money order, certified One (1) business day later if by electronic funds transfer Three (3) business days later if by bank check, local and In general, we will increase your Account’s Withdrawal Limit when your Account is credited with dividends, interest or returns of capital, and on settlement date each time you sell securities or otherwise generate an uninvested cash balance in the Account. For accounts with margin, the Withdrawal Limit is increased when your Available Margin increases because the value of marginable securities held in the Account increases or your margin debt to us decreases. As a general rule, we value securities based on either closing prices on the previous business day for which prices were available, published bids or offers on that day, bids or offers from dealers in securities on that day or valuation information from other sources we deem reliable. We may adjust the value of securities to reflect the risks associated with liquidating them. All funds deposited into an Account open for fewer than 90 days will be encumbered for five business days except for the types of deposits described in items 1 and 3 above. You may redeem or withdraw, as applicable, Sweep Option holdings from your Account by wire, check, telephone or mail. There may be a fee for each outbound federal funds . We will redeem or withdraw, as applicable, Sweep Option holdings automatically to satisfy outstanding debits or charges. Availability of Funds Transferred into Your Account We reserve the right not to increase your Account’s Withdrawal Limit to reflect funds transferred into the Account from an Authorized Outside Account for up to five (5) business days after the date the transfer is completed. Such funds, however, will be available for the deposit into, or purchase of, Sweep Option vehicles within one (1) business day after the date the transfer is completed. We will increase the Account’s Withdrawal Limit to reflect funds transferred into it from a Designated Internal Account one business day after the date the transfer is completed. Your Liability You agree to indemnify us against any Losses, costs or expenses arising out of your obligations under your Agreement with us. “Losses” includes payments on claims or requests for compensation, damages, and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any action, claim or request for compensation). As a UBS client, you acknowledge and agree that you will be personally liable for any fees or other obligations owed to us. You agree to indemnify UBS, the Card Issuer, the Check Provider, the Sweep Funds and other sweep options as applicable, against any losses arising from: Similarly, Similarly, we increase your Account’s Withdrawal Limit after you place funds into it as follows: 1. 1. 2. 3. 4.

reflecting such a purchase is applied to the Account. other Sweep Option purchases), uncollected A Card purchase is debited, or a provisional debit You purchase a security (excluding money market and A check or draft drawn on the Account is paid An item deposited to the Account is returned A credit to the Account is reversed A fee is paid to us or to a third party A bill payment or electronic funds transfer is made An automatic payment is withdrawn from the Account A Card ATM transaction is made or A/C #101-WA-258641-000 F/C UBS-FINSVC [Title of account] A/C UBS-FINSVC [UBS account number] UBS AG ABA #026007993 UBS Financial Services Inc. • • • • • • • • • The wire must include your name and Account number as indicated above. If we receive funds in the Account by noon, Eastern time, on a business day, they will be swept into the Sweep Option on that business day provided that the cumulative balance in your Account is $1.00 or more. Federal funds received after that deadline will be swept into the Sweep Option at noon, Eastern time, on the next business day if the cumulative balance in your Account is $1.00 or more. However, funds credited to your Account will not be swept into the Sweep Option or increase your Account’s Withdrawal Limit until all debits and charges to your Account are satisfied. Withdrawals Your Account’s Withdrawal Limit is the amount of funds available for securities purchases, check writing, Card transactions, Bill Payments and Electronic Funds Transfers, and Automatic Payment transactions on any particular day. It is the combined total of any uninvested cash balances in your Account, plus balances held in Sweep Options and, if you have margin, the margin loan value of securities available in the Account (Available Margin). If, however, you use the Account as collateral for a liability, we will reduce your Withdrawal Limit by the amount we determine necessary to secure that liability. For example, if your Account is subject to a Credit Line Guarantee Agreement, or if you use it to repay an obligation or other amount you owe us, your Withdrawal Limit will be reduced by the amount that we determine necessary to secure such liability. We reduce the Withdrawal Limit each time you generate a debit or charge in the Account, for example, when:

Service. Service. Direct deposits are transactions initiated by an external financial institutionto processa deposit into a UBS account from an external account. Checks for deposit to your Account should be made payable to, or be endorsed to: UBS Financial Services Inc., or UBS Financial Services Inc. for the benefit of [Your Name] and/or [Title of Account]. Check deposit tickets may be delivered to your UBS office ormailed to the addresson your deposit tickets if they were provided with your Account. If we take a check or other item (as defined in the Uniform Commercial Code) in foreign for deposit or collection, you will bear all currency exchange rate risk. To deposit federal funds into your account, instruct your bank to wire the funds to: To order deposit tickets, call the Service Group at 800-762-1000 or use the reorder form in your deposit booklet. If you enroll in Online Services, you can order them online. Select “Cash Management” then “Checking Services.” A returned check deposit fee applies when a check deposited to your account is returned for insufficient funds. Business days are Monday through Friday. Bank holidays in the State of New York and New York Stock Exchange holidays are not business days. “Debits” are amounts due to us on settlement date for securities purchases and other debits and fees from the Account, including, without limitation, margin loans and fees. “Charges” are amounts due us or the Check Provider or Card Issuer for checks, bill payments and electronic funds transfers, Card transactions and Automatic Payments. “Designated Internal Account” and “Authorized Outside Account” are defined in the Bill Payment and Electronic Funds Transfer Service Agreement. Please refer to the UBS Deposit Account Sweep Program Disclosure Statement and the UBS International Deposit Account Sweep Program Disclosure in this booklet for information about the Sweep Options. “Sweep Option” refers to UBS Bank USA Deposit Account Sweep Program, the Sweep Funds, UBS International Deposit Account Sweep Program, the Puerto Rico Short Term Investment Fund or other applicable sweep investment options as we may make available from time to time for eligible accounts.

About Your UBS Account: General Terms and Conditions 8 About Your UBS Account: General Terms and Conditions 9 A “short” sale is the sale of a security that you do not own or a sale consummated by delivery of a security you borrow. If you designate a sale order as “long,” you represent that you own the security, and if we do not hold it for you at the time of the contract for sale, you agree to deliver it to us by the settlement date. “Sweep “Sweep Funds” refers to one or more of the RMA money market funds as described in the respective prospectuses for the UBS RMA Funds, UBS Cashfund or UBS Retirement . See the “Withdrawals” section in this document for more information. As your Available Margin will fluctuate with securities prices, your Account’s Withdrawal Limit will also fluctuate. Any margin loans extended in an Account will be subject to interest rate charges at the same rate that we charge for margin loans as a result of decreases in the value of marginable securities. You will not incur the cost of margin loans until all uninvested cash balances and Sweep Option holdings are fully used. Transferring Funds Electronically When you give UBS instructions to accept or transfer funds electronically to or from your Account to any bank or other entity, you agree to provide us with an accurate name and account number designating the account to receive such funds or from which such funds are to be sent. You acknowledge that neither we nor the bank or other receiving or transmitting entity is under any obligation to verify the identity of the beneficiary of the funds transfer and may rely exclusively on the name or account number you provide. You agree to indemnify and hold us harmless from and against any and all cost, expense, claims or liabilities arising from any inaccurate name or account number you may have provided. When we accept or transfer funds, neither we nor the bank or other receiving or transmitting entity is under any obligation to determine whether the name and number you provided refer to the same person or entity. Any transfer we make for your Accounts through the (ACH) system is governed by the Bill Payment and Electronic Funds Transfer Service Agreement in this booklet. Orders, Executions, Deliveries, Settlements and Authorizations You agree that we may act upon your or your authorized agent’s verbal instructions. In giving orders to sell, you will inform us which sales are “short” sales and which are “long” sales. In case of non-delivery of a security, you authorize us to purchase the security to cover your position and charge any loss, commissions and fees to your Account. You agree that if we do not receive payment for securities you have purchased, we may sell Property we hold in any of your Accounts at your risk and expense without prior demand or notice. You understand that we may trade securities in more than one marketplace. You may direct that an order to purchase or sell securities be executed on a specified exchange or market center and we may agree to your request. In all other cases, you understand that we will, in our sole discretion, and subject to applicable regulatory requirements, execute your order on the over-the-counter market in any location or on any exchange, including a foreign exchange where such security is traded, either on a principal or agency basis, without prior notice to you. You authorize us to execute trades through an electronic communication network, alternative trading system, or similar execution system or trading venue at our discretion. You acknowledge that UBS may have an ownership interest in one or more of such systems or venues, and you specifically authorize us to execute trades through any such system or venue. Principal Transactions; Client/Firm Relationship You understand that UBS or its affiliates may execute securities transactions in your Account acting as principal. Likewise, we may expressly direct our clearing affiliates to to the extent of any unpaid fees, as more fully described in the Fees and Charges section of this booklet. in the Account pending investment; liquidation of your Sweep Option holdings, if any; and obligations in your Account(s). Funds, Funds, other sweep options and any other money market fund and similar fund shares, deposits and withdrawals of funds from the UBS Bank USA Deposit Accounts, use of the check writing privileges (including unsigned drafts presented by third parties), security transactions, UBS Card transactions, Bill Payment and Electronic Funds Transfer Service transactions, and limitation limitation the redemption of any shares of Sweep From the proceeds of the sale of mutual fund holdings, From the withdrawal, or proceeds of a redemption or From Available Margin in the Account, if it has margin; From uninvested free credit cash balances, if any, held Any debits, charges, fees, tax withholding or other Order of Permitted Payments We will deduct any Permitted Payments from your Account within your Account’s Withdrawal Limit in the following order: Payment of Obligations You authorize us to pay for all obligations you incur from your Account. Obligations include the amounts you owe UBS for securities purchases, checks, fees, obligations for federal fund wires, offsets, customary transactional and brokerage fees, as well as interest you may owe us as a result of margin loans or otherwise. Obligations also include any UBS Card transactions, Automatic Repayment of cash advances through CashConnect, Automatic Payments, bill payments and electronic funds transfers or check charges and any other means by which you authorize us or a third party to debit your account. The obligations discussed here are collectively referred to as “Permitted Payments.” You will also be liable for the payment of any amounts advanced, any debit balances or other obligations in your Account(s), as well as for any deficiency remaining in your Account(s) in the event of liquidation by you or us. Additionally, you acknowledge that you are responsible for the accrued interest on those amounts at our then customary rate, if applicable, or otherwise the maximum rate allowable by law. You agree to indemnify us for the reasonable costs and expenses of collection (including attorney’s fees), for any unpaid losses, fees or other amounts you owe us or against which you have indemnified us. You agree to indemnify, defend and hold us harmless from all losses arising out of claims made or asserted by any person or entity (other than you) in any way relating to your Account(s). UBS, our officers, directors, employees and agents shall not be liable to you for any reason for consequential damages arising out of your Agreement with us and/or any services we provide to you. If it is determined that you owe either backup withholding tax or non-resident alien withholding tax under the Internal Revenue Code (collectively, U.S. Withholding Tax) for either a current or prior year, we retain the right to satisfy such U.S. Withholding Tax from the funds in your Accounts. You agree not to hold us liable for either the amount withdrawn from your Accounts to satisfy your withholding tax liability or for any claim, action or any other legal proceeding that may be brought against you by third parties if the exercise of our right results in insufficient funds in your Account to cover your obligations to such third parties. iv. ii. iii. i. 2.

Accounts that share the same name, address and Social second statement household, and each Account in ZIP code. Account in the first statement household matches the primary Social Security or Tax ID Number on an Account in the second statement household. Or, the primary Social Security or Tax ID Number on an Account in one statement household matches a secondary Social Security or Tax ID Number in the both statement households share the same nine-digit Security or Tax ID Number are automatically placed in the same statement household. Accounts that share only the same address will be placed in the same statement household with the express consent of all the Account holders. The primary Social Security or Tax ID Number on an • • • • to be loaned, the shares may be used in connection with short sales. Your fully paid-for securities will not be loaned without your express consent. Please speak with your Financial Advisor if you do not want to allow your fully paid-for securities to be used in connection with short sales. Restrictions on Trading You understand that we may, in our sole discretion, with or without prior notice, prohibit or restrict trading of securities or substitution of securities in your Account and refuse to enter into any transactions with you or accept any instructions from you. We are committed to compliance with all applicable laws, rules and regulations, including those related to combating money laundering. In our discretion, we may decline to effect transfers of Property to certain persons or countries. Transfer of Excess Funds; Exchange Rate Fluctuations We may transfer excess funds between any of your Accounts with us, including commodity Accounts (if any), for any reason that does not conflict with the Commodity Exchange Act or any other applicable law. If we effect any transactions for you that require a foreign currency, any profit or loss as a result of a fluctuation in theapplicable exchange rate will be credited or charged to your Account. Account Statements and Other Communications We will provide you with an Account statement at least quarterly that describes the activity in your Account, including any applicable cash management features such as UBS Rewards point activity, checking activity, payments and transfers and Card transactions, as well as a summary of your Credit Card activity from your credit card statement for informational purposes only. Statement Householding Rules and Marketing Relationship Assets For Accounts in the same “statement household” we may send some or all periodic statements to the same address in a single envelope. We determine the eligible accounts for statement householding by common address or common Taxpayer Identification Numbers as follows: • • • • We may group related Accounts into Marketing Relationships. The level of assets in a Marketing Relationship can affect, for example, annual service fees, interest rate tiering under the UBS Deposit Account Sweep Program and mutual fund breakpoints. We define a Marketing Relationship initially by combining the assets held in a statement household. In addition, accounts in one statement household can be combined in a Marketing Relationship with accounts in a second statement household if: regarding investments in your Account. “fiduciary” as such term is defined in Section 3(21) of ERISA or Section 4975(e)(3) of the Internal Revenue Code, or to act as an “investment adviser” as such term is defined in Section 1.1 of the Investment Advisers Act of 1940, and; You will make your own independent decisions We have no authority or responsibility to act as a Sub-Brokers and Custodians We are responsible only for reasonable care in the selection of the sub-brokers and sub-custodians we may employ. We may deal with market makers or members of any exchange known as specialists or odd-lot dealers. In the execution of your orders, they may act as sub-brokers for you and may also buy or sell Property for themselves as dealers for their own account. We may also hold securities as a Securities Intermediary in accordance with industry custom and practice and employ one or more Securities Intermediaries, including Securities Intermediaries outside the United States, with respect to any Property we hold for you. Principal, Interest and Dividend Payments UBS may credit your Account with principal and interest due on debt instruments on the payment dates and will be entitled to recover any such payments from you if they are not actually received from the trustee or paying agent. You acknowledge that interest will not be paid to you on credit balances in your Account unless we specifically agree to do so in writing. We are not required to remit interest or dividends to you on a daily basis. Impartial Lottery Allocation System; Call Features Debt securities may be subject to call or other redemption features. This means that they may be redeemed, in whole or in part, before maturity or before the first scheduled call dates. We may hold callable bonds or preferred stocks on your behalf in our street name, or in bearer form. In either case, you agree to participate in the impartial lottery allocation system of the called securities in accordance with the provisions and rules of the New York Stock Exchange and to be bound by those results. When the call is favorable, no allocation will be made to any account in which UBS, its officers, or employees have a beneficial interest until all of your other positions in those securities are satisfied on an impartial lottery basis. You understand that we may not receive timely notice of calls and may be required to allocate called securities on an “as of” basis. Redemption features, in addition to those disclosed on the trade confirmation, may exist for certain debt securities. The existence of special mandatory redemption features, such as sinking funds provisions, may not be disclosed on a trade confirmation. It is your obligation to review all prospectuses and offering statements you may receive, and to understand the risks of extraordinary calls or early redemptions, which may affect yield. Issuers may, from time to time, publish notices of offers to redeem debt securities within limited time, price and tender parameters. You agree that we are not obligated to notify you of such published calls, nor will we tender any securities on your behalf when you have failed to request the tender in a timely manner. Securities Lending Notices If you participate in our fully paid securities lending program and agree to allow your fully paid-for securities • enter into a principal transaction when we would ordinarily execute a transaction as principal. Unless otherwise agreed to in writing, you agree that: • For more information about householding rules, contact your Financial Advisor. Please note, if you hold Accounts in our UBS International division, the assets in these accounts are excluded from the eligible assets in a Marketing Relationship and cannot be combined with Accounts you may have at UBS Financial Services Inc. or UBS Financial Services Incorporated of Puerto Rico. Not all assets qualify as Marketing Relationship assets (for example restricted stock is ineligible). For more information, contact your Financial Advisor. A “Securities Intermediary” refers to a clearing corporation, or a person, including a bank or broker that in the ordinary course of business maintains securities accounts for others and is acting in that capacity, as such terms are interpreted under section 8-102(a) (14) of the Uniform Commercial Code, as in effect in the State of New York from time to time. Please refer to “Conducting Business with UBS: Understanding the Differences Between Investment Advisory and Broker-Dealer Services” for more information about our responsibilities as a broker-dealer and as an investment advisor. If you have questions, call your Financial Advisor.

About Your UBS Account: General Terms and Conditions 10 About Your UBS Account: General Terms and Conditions 11 If you finderrors, omissions or inconsistencies, please notify your Financial Advisor immediately. Formal notification should be made in writing to the Branch Manager of the office that maintains your account. Errors, omissions or inconsistencies regarding UBS Card transactions should be directed to the Card Issuer. If you have questions about the tax consequences of any of your holdings, please consult your tax advisor. UBS does not provide legal or tax advice. For the purposes of the section “Introduced accounts,” the term “UBS” refers to UBS Financial Services Inc. This section applies only to accounts opened with UBS Financial Services of Puerto Rico. Carefully review all your account statements and transaction confirmations as soon as you receive them to ensure they are accurate and consistent with your instructions and investment objectives. other Property, on margin or otherwise in your Account, and concerning the Account. Orders for the purchase or sale of such securities and Any other instructions from the introducing broker In no event shall UBS be liable for any acts or omissions of any introducing broker or its agents, contractors or employees. Clearing Relationship for Puerto Rico Residents If you are opening your securities account with UBS Financial Services Incorporated of Puerto Rico (UBS Puerto Rico), you acknowledge that UBS Puerto Rico has a clearing agreement with UBS Financial Services Inc. (UBS Financial Services). UBS Puerto Rico is a wholly owned subsidiary of UBS Financial Services. some circumstances withhold our discretionary vote on uninstructed shares, however, upon request from an issuer or other party in order to reach a quorum. If your Account contains securities issued by a non-U.S. issuer, you acknowledge that, to the extent we are acting solely as custodian of those securities, unless either you or the issuer have made other arrangements with us, we are not obligated to distribute issuer communications to you. Introduced Accounts If your Account was introduced to UBS Financial Services Inc. by another broker-dealer and UBS carries it only as a clearing broker, you agree that UBS is not responsible for the conduct of the introducing broker and that UBS’s only responsibilities to you relate to its execution, clearing and bookkeeping of transactions in your Account, and to any other services and responsibilities to which it agrees in writing. During the period that UBS acts as a clearing broker for an introducing broker-dealer, UBS’s rights and benefits shall extend to the introducing broker-dealer. UBS is authorized to accept the following instructions, without further inquiry or investigation, from the introducing broker: 1. 2. those executions. You agree that we may use such average price trades on the confirmations we issueto you. We will note on the confirmation if an average price is used. Actual prices, quantities of each execution and market of execution will be provided upon written request. Cost Basis Information In some circumstances, we may obtain cost basis information regarding your investments from your prior brokerage firm. We do not independently verifyor guarantee the accuracy of any cost basis information obtained from outside sources. If you decide to transfer assets from UBS to another brokerage firm, we may, for certain securities, be required by law to provide your cost basis information to them. Cost basis and realized gain/ loss information is displayed on your Account statement solely as a service to you, and may be adjusted. As such, you should not rely on this information for tax preparation purposes. Rely only on your year-end tax forms and order confirmations when you prepare your tax return. Proxy Materials and other Issuer Communications Except for Advisory accounts, ERISA Plans and Individual Retirement Accounts, if we forward proxy materials to you but do not receive voting instructions from you within the designated time frame, we will exercise our discretionary vote in proportion to the voting instructions we have received from our retail clients, where permitted by the rules of the New York Stock Exchange. We may in Use of Average Prices You acknowledge that the price of any security shown on a confirmation for a trade that was executed on more than one exchange, or in more than one market, or had multiple executions, may be the average price of the security for Accuracy of Communications You agree to review all communications carefully, including order confirmations and account statements as soon as you receive them to ensure they are accurate and consistent with your instructions and investment objectives. You must notify us in writing if you do not receive an order confirmation within ten (10) days of the date of a transaction. If your statements or other documents are not received in a timely manner or are inaccurate, you agree to notify the Branch Office Manager of your UBS Branch Office in writing within ten (10) days. Notification of errors or omissions regarding Card transactions should be directed to the Card Issuer as outlined in Cardholder Agreement. Unless indicated otherwise in this Agreements and Disclosures booklet, order confirmations and account statements will be considered accurate and in accordance with your instructions and investment objectives if you do not notify us of your objection to them within ten (10) days after we mail them to you. We cannot be responsible for any transaction that is not reflected on your account statement unless you object in writing to your UBS Branch Office Manager. You acknowledge that we rely on you to notify us of your objection to the confirmations of your transactions or entries on your statements, and if you do not, that we are not responsible for losses that could have been avoided if you had given us the prompt notice described above. In addition, if you are mistakenly credited with funds or securities, you must return them as soon as you discover the error or when we request them. You acknowledge and agree that we may, from time to time, monitor and/or electronically record conversations between you and our employees or agents for the purpose of quality assurance, employee training and our mutual protection. We may use any such recordings as evidence in arbitration or other proceeding. Written Notice We will send all communications to you at your address of record, or at another address that you give to us in writing, or, if you request, at an e-mail address that you provide. Except as applicable law may require, we consider all communications we send to you as having been given to you personally when sent, whether you actually receive them. If your signature is undated when you send us written instructions or other documents, we will treat it as signed on the date that we receive it. Our date stamp, whether electronically or manually recorded, will be considered the signature date. In certain circumstances, additional criteria may be applied to expand the Marketing Relationship which includes your Accounts or to define a statement household. We reserve the right, in our sole discretion, to grant exceptions to our householding and Marketing Relationships policies. If you have different Accounts that cannot be combined into a statement household or Marketing Relationship for any reason, if you would like to determine the household or Marketing Relationship status of your Accounts, or if you would like to add Accounts to your household or Marketing Relationship, please contact your Financial Advisor. persons who do not have a legitimate need to know, and otherwise remain in compliance with applicable law. Prohibit the communication of such information to Enable us to meet our obligations to our customers and You agree that these policies and procedures are necessary and appropriate, and you recognize that, in certain circumstances, our employees will have knowledge of certain confidential and material, non-public information which, if disclosed, might affect your decision to buy, sell or hold a security, and that they are prohibited from communicating such information to you. You also understand and agree that we have no responsibility or liability to you for failing to disclose such information to you as a result of following our policies and procedures designed to provide reasonable assurances that we are complying with the law. UBS Securities In your Account, you may purchase or hold securities issued by UBS AG, the parent company of UBS Financial Services Inc., or by another UBS Entity. UBS Financial Services Inc. has a control relationship (we are either controlled or under common control) with the issuer of such securities. Foreign Securities Foreign securities may be subject to withholding tax in certain foreign countries. The rate at which you are taxed may vary depending on your country of residence. We will debit your Account(s) for any foreign tax withholding Futures Futures Trading Commission, and the Board of Governors of the Federal Reserve System, and other governmental authorities and self-regulatory organizations. You acknowledge that we are subject to examination by various Federal and State regulators and self-regulatory organizations and that the books and records we maintain are subject to inspection and subpoena by these regulators and by Federal, State, and local law enforcement officials. You also acknowledge that these regulators, officials and the U.S. Courts may, pursuant to treaty or other arrangements, disclose such information to the officials or regulators of other countries. You agree that we may disclose information about your transactions and your Account(s) to such regulators and officials without notice to you. In addition, we may, in the context of a private dispute, be required by subpoena or other judicial process to disclose information or produce documentation about you and your Account(s) with us. You acknowledge and agree that we will, in our sole discretion, respond to subpoenas and judicial process as we deem appropriate. UBS Financial Services Inc. will maintain custody of securities and funds received based on your instructions for your Account in accordance with the requirements of applicable law, and we will exercise ordinary or reasonable care with respect to our custody obligations. We will be responsible for holding and safekeeping funds and securities only from the time they come in to the possession and control of UBS Financial Services Inc. Non-Disclosure of Confidential and Material, Non- public Information UBS provides a variety of services to its customers. To provide these services, our employees may come into possession of confidential and material, non-public information. Under applicable law, UBS employees are prohibited from improperly disclosing or using such information for their personal benefit or for the benefit of any other person, regardless of whether the other person is a UBS customer. We maintain and enforce written policies and procedures that: i. ii.

account. statements and, to the extent required by the applicable laws, rules and regulations, transmitting them to you and UBS Puerto Rico in a timely manner. to you, your orders and your account. brokerage account and having reasonable grounds for believing that any recommended transaction relating to your brokerage account is suitable for you based on the facts you disclosed, including your other security holdings and financial situation and needs. your account. Financial Services’s business. Financial Services’s credit requirements. and records of all transactions executed or cleared through UBS Financial Services. account, including receiving and delivering funds and securities. Financial Services’s right to reject or terminate your account). account. or securities received from you, and providing UBS Financial Services with information necessary to enable it to receive, hold, and deliver funds and securities with respect to your account. Maintaining custody of funds and securities in your Preparing confirmations and summary periodic Ongoing monitoring of your account activity. Using due diligence to learn the essential facts relative Providing you investment advice relating to your Verifying the validity of your account information. Accepting orders received by UBS Financial Services for Executing your transactions in the normal course of UBS Extending credit to you in accordance with UBS Maintaining stock records and other prescribed books Performing various cashiering functions for your Opening and approving your account (subject to UBS Accepting orders received by UBS Puerto Rico for your Promptly depositing with UBS Financial Services funds Joint Responsibilities of UBS Puerto Rico and Please direct any questions you may have about the functions allocated between UBS Puerto Rico and UBS Financial Services or any other correspondence to either your Financial Advisor or the UBS Puerto Rico Service Desk at (787) 250-2026. Rules and Regulations All transactions in your Account(s) are subject to the constitution, rules, regulations, custom and usage of the exchange or market and the clearing agency, if any, on which such transactions are executed. These transactions may also be subject to provisions, rules and regulations of the Securities and Exchange Commission, the Commodity UBS Financial Services UBS Puerto Rico and UBS Financial Services are jointly responsible for the following: Responsibilities of UBS Financial Services UBS Financial Services, and not UBS Puerto Rico, is responsible for the following: • • • • • • • • • • • • • • The clearing agreement between UBS Puerto Rico and UBS Financial Services allocates certain responsibilities with respect to your account exclusively to either UBS Puerto Rico or UBS Financial Services, and other responsibilities jointly to both UBS Puerto Rico and UBS Financial Services. Rule 382 of the New York Stock Exchange requires that we inform you of the allocation of responsibilities. The following is a description of the responsibilities allocated under the clearing agreement. Responsibilities of UBS Puerto Rico UBS Puerto Rico, and not UBS Financial Services, is responsible for the following:

About Your UBS Account: General Terms and Conditions 12 About Your UBS Account: General Terms and Conditions 13

Client Client Complaints If you have a complaint, contact the UBS Financial Services Inc. Client Relations Department at (201) 352-1699 or toll- free at (800) 354-9103, 8:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday. Or, you can write to UBS Financial Services Inc. Client Relations Department, P.O. Box 766, Union City, NJ 07087. Successors and Assigns The Agreement between you and us shall be binding upon you and your authorized agents, personal representatives, heirs, estate, executors, administrators, committee and/ or conservators, successors and assigns, and shall extend to the benefit of UBS and its successors and assigns.You may not assign or transfer any of your rights or obligations under the Agreement without our prior written consent. UBS may, however, assign the Agreement or any of our rights and powers under the Agreement. In the event of an assignment, the assignee shall have the same rights and remedies as if originally named in the Agreement. From the date of any assignment, we will have no further liability to you under the terms of the Agreement. Waiver Not Implied Our failure to insist, at any time, on strict compliance with any clause of the Agreement or with any of these terms and conditions shall not constitute or be considered a waiver by us of any of our rights or your obligations. Death of an Account Holder or Dissolution of an Entity This Agreement shall survive the death, disability, incompetence or dissolution of any Account Holder. Any order that you give will be binding upon you and your personal representative or authorized agent(s) until we receive notice of your death (for individuals), or dissolution (for entities). This notice will not affect our right to take any action that we could have taken otherwise. You understand that we must be notified immediately in the event of the death of an Account Holder, and that we may, before or after receiving notification of a death, take whatever actions we deem advisable to protect UBS against tax, liability, penalty or other losses. For example, we may require the survivors, heirs or the estate to provide certain legal documents, such as inheritance or estate tax waivers or federal transfer certificates. We may also retain a portion of your Account(s) and/or restrict transactions in your Account(s). Your estate and Account(s) will be jointly liable for all costs, including reasonable attorney’s fees and costs, we and/or the Card Issuer and the Check Provider may incur in connection with the disposition of your Account(s) and related assets and liabilities in this event. Unclaimed Property If we are unable to locate you and no activity occurs in your Account within the time period specified by State law, we may be required to turn over Property in your Account to your last known State of residence, or if none, to the State of Delaware. Termination of Account You understand that you or UBS may terminate any Account, account feature or service at any time for any reason. If either of us terminates an Account, you must promptly return any unused checks and Card(s) to us. UBS Research Two sources of UBS proprietary research are available through UBS Financial Services Inc. Reports from the first source, UBS Wealth Management Research, are designed primarily for use by individual investors and are produced by UBS Wealth Management Americas (the UBS business group that includes, among others, UBS Financial Services Inc.) and UBS Wealth Management & Swiss Bank. The second source is UBS Investment Research, and its reports are produced by UBS Investment Bank, whose primary business focus is institutional investors. The two sources may have different opinions and recommendations. The various research content provided does not take into account the unique investment objectives, financial situation or particular needs of any specific individual investor. Investment Policy Statements We are not responsible for ensuring that your investment policy statement and asset allocation choices comply with all specific legal, actuarial or other requirements that apply to you. That responsibility rests solely with you. We recommend that you consult with your legal and tax advisors regarding these matters. Insurance and Annuities We provide your name to any insurance or annuity provider that issues any insurance or annuity products to you. As a result, you will receive information regarding those products directly from the insurer. For insurance and annuity products, we send account record information and periodic updates, and request updated account record information from your insurance company. for your Account(s). We will not seek relief from foreign tax withholding at the source or to obtain a reduced rate of foreign tax withholding, even though you may be eligible under applicable treaties or the law of the relevant countries. It is your sole obligation to determine whether you are eligible for reduced tax withholding rates, to claim credits for foreign withholding tax on your tax returns and to prepare and file applications to reclaim taxes from the foreign taxing authority. When you buy or sell foreign securities, UBS will execute a currency conversion to or from U.S. dollars where necessary to complete the transaction. If your Account receives payments in a currency other than U.S. dollars (such as from the maturity or redemption of an instrument or payment of dividends or interest), UBS will convert your funds into U.S. dollars at the available spot market conversion rate. Where possible, if you give sufficient prior notice (at least two business days before the maturity or payable date), we will remit your non-U.S. dollar funds pursuant to your delivery instructions rather than converting to US dollars. UBS Financial Services and/or its affiliates will retain a fee for executing the currency conversion transaction. Even though you may instruct us not to share your beneficial ownership informationwith issuers of securities for proxy voting and other shareholder communications, if you buy, sell or hold certain foreign securities or funds administered by foreign entities, we may share information about you with the issuers of the securities or foreign government authorities and their agents to obtain reduced tax withholding rates, to comply with local law or to respond to other lawful requests. that is charged in connection with assets or transactions and Provider. any federal, state or local tax withholding obligations any outstanding debts to us, the Card Issuer, the Check We will apply the withheld amounts first to pay the tax obligations, second to pay ourselves, and third to pay the Card Issuer and the Check Provider, if applicable. If your Account is terminated and the amount in the Sweep Option is insufficient to pay any tax withholding obligations, you authorize us to make such tax withholding payments out of any of your other Accounts in our sole discretion. If such withholding is not implemented, you agree that signing the Client Relationship Agreement constitutes an election out of tax withholding to the maximum extent permitted by law. If you close your Account and do not provide transfer instructions or request a check for the Account balance from us within a reasonable time, you authorize us to make a charitable contribution of any Account balance up to $5.00 without prior notice to you. for the tax consequences of liquidating assets and/or distributing them to you. You further agree that we may withhold any amounts that we reasonably believe are necessary to pay: i. ii. and expense, including joint accounts. contracts; Account; issuing a check to you, delivering physical certificates or having securities registered in your name directly on the books of the applicable transfer agent or issuer; Sell the Property in any of your Accounts, at your risk Cancel any open orders and close any outstanding Buy any Property that may be held short in your Distribute the assets in your Account to you, whether by We cannot be held responsible for losses if we sell any of your Property, even if liquidation and/or distribution would cause taxable consequences to you, nor are we responsible • • • • Failure Failure to do so may result in a delay in complying with your instructions as to the disposition of the assets in your Account. You remain responsible for debits and charges whether they arose before or after the Account was terminated. You agree to pay us, the Card Issuer and the Check Provider promptly for all outstanding amounts. You agree to promptly provide us with transfer instructions for all of the Property in your Account. If you close your Account, you may reopen the Account within thirty (30) days of closing without signing a new Agreement. You acknowledge that you continue to be bound by the all of the terms and conditions in effect when you reopen your Account. Upon termination, you authorize us to take any of the following actions:

About Your UBS Account: General Terms and Conditions 14 Fees and Charges Charges and Fees Account: UBS Your About

Throughout the “Fees As a UBS client, it’s important that you understand the in the same Marketing Relationship as a billable account and Charges” section, fees and charges associated with your account and activity. described above. “UBS” refers to UBS If, at any time, you have a question about a fee or Financial Services charge in connection with your relationship with us, If you meet either of these criteria, we also waive the Inc., its successor please speak with your Financial Advisor or go to annual service fee for your first billable RMA, IRA-RMA or firms, subsidiaries, www.ubs.com/aboutourfees. BSA for Sole Proprietorships: correspondents and/ • Your eligible Marketing Relationship assets are or affiliates, including We will charge you the applicable annual service fee $1,000,000 or more at the end of any month in UBS Financial Services Incorporated of Puerto described below for your Accounts. The annual service fee the calendar year, up until the last business day in Rico, which clears and any other fees are subject to change at any time, and November. We calculate the value of your eligible through UBS Financial we may introduce new fees and charges or modify others Marketing Relationship assets at each calendar month- Services Inc. for additional features beyond the annual service fee. You end. authorize us to charge the annual service fee and all other • One or more accounts in your eligible Marketing “Direct Deposits” are fees you owe to your Account. The annual service fee Relationship has active and recurring Direct Deposits. transactions initiated applies whether you use any cash management services in (This means that you have Direct Deposits totaling at by an external financial your Account(s) or not. least $1,000 per month for the two month-period prior institution to process a deposit to a UBS to the annual billing date). Account from an external account. Billing of annual service fees If your Marketing Relationship does not include a billable RMA, IRA-RMA or BSA for Sole Proprietorships, each of Our process for You will pay an annual service fee for your first your IRAs is subject to annual fees determining the eligible billable Resource Management Account (RMA), IRA assets in a “Marketing RMA or Business Services Account BSA (BSA) for Sole We do not automatically waive the annual service fees for Relationship” is described Proprietorships. BSAs, other than Sole Proprietorships, even if they reside in the General Terms and Conditions in this within the same Marketing Relationship as the billable booklet. RMA, IRA-RMA or BSA for Sole Proprietorships. Automatic annual service fee waivers

We will automatically waive the annual service fees for any RMA, IRA-RMA, BSA for Sole Proprietorships, and IRA

Following are examples of annual fees for two Marketing Relationships at UBS.

Scenario 1 Scenario 2 We generally determine • Total asset in the Marketing Relationship: $500,000 • Total asset in the Marketing Relationship: $500,000 the billable RMA, IRA- • Married couple with a Joint RMA • Married couple, both of whom have an IRA RMA or BSA for Sole • One spouse has an individual RMA • The couple has a Coverdell Education Proprietorships in a • Each individual has an IRA for their child Marketing Relationship in the following order: • One spouse operates a Limited Liability Corporation • One spouse operates a Limited Liability Corporation (LLC) (LLC) 1. RMA Joint Account Account Type Fee Account Type Fee 2. RMA Individual Account, Joint Resource Management Account (RMA) $150 Business Services Account BSA for LLC $150 3. RMA Trust Account, 4. RMA Guardian Individual RMA N/C First Individual Retirement Account (IRA) $75 Account, 5. RMA Custodial First Individual Retirement Account (IRA) N/C Additional IRA $75 Account, Additional IRA N/C Coverdell Education Services Account $75 6. Business Services Account BSA (Sole Business Services Account BSA for LLC $150 Proprietorships only), 7. IRA-RMA Total annual account fee $300 Total annual account fees $375 If you use any of these accounts as collateral for Annual Fee Billing for Other Types of Accounts each account that is being billed and will be reflected on a loan by UBS Bank USA, we will consider it last in your December statement. If you do not have uninvested priority. Among common For all other types of accounts, such as International free credit balances, Sweep Option holdings or Available account and ownership Resource Management Account (IRMA), BSA (except for Margin, we treat the unpaid fees as a debit balance in types, the billable Sole Proprietorships) and Basic Investment Accounts, we your Account. If this debit balance for unpaid fees is not account is the one with charge an annual service fee for each Account, regardless satisfied, you understand and agree that, on the second the earliest account of the frequency of your account activity, the other Monday of March each year, UBS will sell a sufficient opening date. accounts in your Marketing Relationship or the level of number of shares of your account’s open-end regulated assets you hold. Please refer to the list of annual service investment company assets (“mutual funds”) to satisfy the “NAV” means the net asset value of a mutual fees for each account type below. debit balance, as described below: fund. • First we will sell shares from your largest position (by value based on the previous day’s NAV) that were Timing of the annual account fee billing subject to a front-end load or sales charge, continuing with successively smaller positions as necessary. We bill your annual service fees and maintenance fees, • Next, we will sell your largest position that could be if applicable, on the fourth business day in December subject to a back-end load, continuing with successively of each year. The fees are automatically deducted from smaller positions as necessary.

15 About Your UBS Account: Fees and Charges and Fees Account: UBS Your About For more information • Finally, we will sell your largest position in no-load below. You also agree that such compensation, together about our fees and other sources of revenue, funds, continuing with successively smaller positions as with all other fees and charges, is reasonable. Once cash please speak with your necessary. balances are credited to your Account(s), they are generally Financial Advisor or invested in the applicable sweep option on the next go to www.ubs.com/ We effect required transactions in a single day up to our business day. aboutourfees. systematic limits. If all required transactions cannot be completed in a single day, we will process transactions If you instruct us to transfer your Account or all the for all retirement accounts first, in the alphanumeric order positions in your account to another financial institution, of the account number, and then for all other account you will be subject to an Account Transfer Fee. If you close types, also in alphanumeric order. We will not sell shares your Account, whether by transferring, requesting a final of offshore funds or closed-end funds in this process. If check or by other means, before the annual service fee is the sale does not result in sufficient funds, the unpaid billed for that calendar year, we will debit your Account for debit balance will remain due. You may incur applicable the Annual Service Fee that you would have been charged. contingent deferred sales charges and transaction fees as a result of these sales. These sales may be a taxable event, We may charge your Marketing Relationship a Maintenance and UBS will not be liable for any tax consequences or for Fee (even if the annual service fees for your accounts have any losses or lost profits relating to these sales. been waived for that calendar year). The maintenance fee is charged if your Marketing Relationship does not meet We also charge commissions, markups and/or other fees a minimum of $25,000 in eligible assets. If this minimum and charges for execution of transactions to purchase and asset level is reached at the end of any month during the sell securities, options or other property through us and calendar year up until the last business day in November, our affiliates. These charges and fees may include, but then we will not charge you the Maintenance Fee for that are not limited to, transaction fees (rounded to the next year. You may be charged the Maintenance Fee if you penny on each sale transaction); subscription fees for U.S. instruct us to transfer your Account or all the positions in The UBS Base Loan Rate Government and Government agency issues; insurance your account to another financial institution or if you close and other applicable reference rates are premiums, and other charges associated with the custody, your Account, and your Marketing Relationship has not defined in the Statement handling and transfer of securities, funds and assets. You met the minimum $25,000 in eligible assets by time you of Credit Practices that agree to pay these charges, commissions and/or fees at transfer or close your Account. can be found in this our then prevailing rates. You also understand that such booklet. charges, commissions and/or fees may be imposed or You agree to pay a late charge if you purchase securities changed from time to time without notice to you, unless on a cash basis and fail to pay for them by the settlement required by rules or regulations, and you agree to be date. We may impose a late fee at the maximum rate of bound by the changes. We may waive the annual service interest set forth in the “Statement of Credit Practices,” if fee or other charges based on a variety of factors, including applicable, or otherwise at the maximum rate permissible the extent of our relationship with you. by law. The late charge will be imposed from the settlement date until the date of payment, without regard As a client, you understand that we will earn income, at to our right to sell the securities in accordance with your the prevailing market rates on overnight investments, on Client Relationship Agreement and applicable laws, rules deposits and credits to your Account(s), until the cash and regulations. balances are invested or swept into the UBS Deposit Account Sweep Program, a Sweep Fund or Other Sweep We charge interest on all amounts advanced and other Option. This does not apply if your account is an Individual balances due in accordance with our “Statement of Credit Retirement Account, ERISA Plan, 403(b)(7) Account, or Practices,” if applicable or otherwise at the maximum rate Coverdell Education Savings Account which UBS Financial permissible by law. Services Inc. has investment discretion over or has agreed to act as a “fiduciary” (as defined in Section 3(21) of Some of the more common fees and charges that may ERISA or Section 4975(e)(3) of the Internal Revenue Code). be associated with your Account are below. This is not an You agree that the overnight investment income will all-inclusive list. Note, however, that accounts that pay an be part of our compensation for services rendered with asset based advisory fee may be exempt from several of the respect to your Account, separate from and in addition charges listed below. to compensation described in the applicable fee schedule

Account Fee Notes and Definitions Your Financial Advisor Annual Service Fee can supply specific information regarding Resource Management Account (RMA) $150 fees and charges that may apply to your International Resource Management Account (IRMA) $175 Accounts. Individual Retirement Account (IRA) $75 IRA Resource Management Account (IRA RMA) $150 Coverdell Education Savings Account (CESA) $75 403(b)(7) Custodial Account $75 UBS Qualified Plan Prototype Document Fee $150 Qualified Plan Fee (for plans not using UBS prototype $50 documents) Business Services Account BSA $150 Business Services Account BSA Qualified Plans $150 Basic Investment Account $75 This account is no longer available.

16 About Your UBS Account: Fees and Charges and Fees Account: UBS Your About Account Fee Notes and Definitions Other Fees Maintenance Fee $95 We charge this fee if the total eligible assets in a Marketing Relationship do not reach a minimum of $25,000 (calculated at each calendar month- end) before the last business day in November. Account Transfer Fee $95 Processing and Handling Fee (per transaction) $5.25 Transaction Fee (per transaction) at a rate adjusted twice varies This fee, which is displayed on trade per year and rounded by UBS to the next penny confirmations, covers the transaction fees UBS is required to pay to self-regulatory organizations. Annual Physical Security Safekeeping (per security $75 This is a fee for storing stock certificates or other per Account) physical securities on your behalf. Restricted Legend Removal Fee (per security) $125 This fee covers costs associated with the legal transfer from restricted to common stock. Bounced Check Fee $15 This fee is charged if a check drawn on your account is returned for insufficient funds. Returned Check Deposit Fee (per check) $25 This fee is charged when a check deposited to your Account is returned for insufficient funds. Special Check Handling Fee $10 This fee is charged when we pay a check that exceeds your Withdrawal Limit. Bill Payment, Automatic Payment, or Electronic Funds $15 Transfer Returned-Item Fee (per item) Stop Bill Payment / Transfer Fee (per stop payment) $15 Federal Fund Wire Transfer Fee $25 This fee is charged for outgoing wire transfers. RMA, IRA, IRA RMA and Business Services Account BSA (Sole Proprietorships only) accounts residing within the same Marketing Relationship with a primary billable account receive a total of three free outgoing wire transfers per year. Check Stop Payment Fee (per check) $12 Check Stop Payment Fee (series of 3 or more) $25 Check Copy Fee (per item) $2.50 Overnight Delivery of Wallet Style Check-Order Fee $15

UBS Rewards Program Level Fees

Fee per Program Level Individual Accounts Joint Accounts Additional Card Card Sets Card Sets Rewards Included at No Rewards Included at No Program Fee Additional Cost Program Fee Additional Cost Select $ 0 4 $0 5 $50 Premier $350 1 $350 2 $175 Charter $1500 1 $1500 2 $1000

17 Intentionally Left Blank

18 Bill Payment and Electronic Funds Agreement Service Transfer Funds Electronic and Payment Bill Account: UBS Your About Transfer Service Agreement

“You,” “your” and Service Agreement your payments or transfers, and you agree to repay any “yours” refer to clients or insufficient funds on demand. of UBS. As a client of UBS, you may request to enroll in our Bill Payment and Electronic Funds Transfer Service – an efficient If an erroneous payment or transfer is made, you authorize “UBS,” “we,” “us,” “our” and convenient way to pay your bills and transfer funds to us to debit or credit your Account to correct it, provided and “ours” refer to UBS and from certain accounts as described below. the correction is made in accordance with applicable laws, Financial Services Inc. rules and regulations. and unless we indicate This Service Agreement constitutes the terms and otherwise, its successor firms, subsidiaries, conditions that govern the UBS Bill Payment and Electronic In addition, you authorize the banks or other financial correspondents and Funds Transfer Service, as well as other electronic funds institutions at which you maintain your Authorized affiliates, including its transfers, including transfers under the Cash Connect Outside Accounts to accept ACH credits or debits to those parent company, UBS service and other transfers made through the Automated accounts. Finally, by using our Bill Payment and Electronic AG. Clearing House (ACH) system. Funds Transfer Service, you authorize us to obtain information about your funds transfer transactions from “Accounts” refers to all All bill payments and electronic funds transfers are the other banks or financial institutions in order to provide accounts you open with subject to your Client Relationship Agreement. If there is the Bill Payment and Electronic Funds Transfer Service or to us now or in the future. a conflict between this Service Agreement and the Client resolve transfer posting problems. You may enroll in the Bill Relationship Agreement, this Service Agreement will Payment and Electronic control. By enrolling in our Bill Payment and Electronic Funds Transfer Service by Funds Transfer service, you agree that you may not use CashConnect Feature contacting your Financial the service to make any illegal payments or transfers, and Advisor. you agree that we may refuse to execute requested bill This service agreement also applies to electronic fund payments and electronic funds transfers in order to prevent transfers we make under the CashConnect feature to pay Note: Individual suspected fraud or illegal activity. cash advances you receive through your UBS Visa Signature Retirement Accounts (IRAs) and Basic credit card at ATMs or banks, even if you do not otherwise Investment Accounts enroll in the Bill Payment and Electronic Funds Transfer cannot process Electronic The UBS Bill Payment Service Service. Funds Transfers via ResourceLine. After we approve your enrollment in the UBS Bill Payment Service, you may initiate payments from your Account to Termination of Authorization “Payees” are the vendors payees within the U.S. When instructed, we will make and other persons, regular, periodic payments in fixed amounts to a particular Your authorization will remain in effect until we receive companies or entities you wish to receive payee or initiate one-time payments of a specified amount notification from you to terminate it. You may terminate funds through the UBS to a payee. We may send the funds electronically or by or modify your authorization at any time. Your termination Bill Payment Service. paper check to your intended payee. will become effective as soon as we have had a reasonable amount of time to act on it. We are not responsible for bill payments or electronic funds transfers that are not A “Designated Internal The UBS Electronic Funds Transfer Service paid after you terminate these services, and you remain Account” is any other responsible for any outstanding fees or obligations arising UBS account you have After we approve your enrollment in the UBS Electronic from your use of these services. designated to transfer funds to or from. Funds Transfer Service, you may initiate transfers of funds between your Account and “Designated Internal Accounts” We accept instructions to terminate your authorization by An “Authorized Outside or “Authorized Outside Accounts” at other financial telephone or in writing. If you notify us by telephone, we Account” at another institutions or banks within the U.S. You must be entitled may require you to send us written notification also. bank or financial to withdraw funds from any Designated Internal Account institution is one you from which you intend to transfer funds, and we must The CashConnect feature will be terminated automatically have designated as authenticate and accept any outside account to or from if your account is closed or suspended. a recipient or source which you intend to transfer funds before you can initiate of electronic funds transfers, and for which transfers. UBS may also terminate these services and close these account authorizations accounts at any time without prior notice. have been authenticated, completed and accepted. Authorization Maximum Transaction Amounts ResourceLine®, our By enrolling in the Bill Payment and Electronic Funds interactive voice Transfer Service you authorize us to initiate payments The maximum amount you may pay or transfer from response telephone unit, and transfers to and from your Account, your Designated your account is equal to your “Withdrawal Limit.” Your is available 24 hours a day, 7 days a week, Internal Accounts and your Authorized Outside Accounts. obligations are satisfied in the order described in the at (800) 762-1000, We accept instructions online, over the telephone, in “Order of Permitted Payments” section of this booklet. The option “0,” in the U.S. writing or other means. When you use UBS Online Services maximum amount you may transfer from an Authorized or, outside the U.S., by or ResourceLine, our telephone voice response system, Outside Account is determined by the bank or financial calling collect at (201) you may be required to provide your password or personal institution at which you maintain that account. We may 352-5257. identification number (“PIN”). Certain bill payments and change the maximum transaction amount or impose electronic funds transfers can only be requested through a minimum amount at any time without prior notice. If you have any Online Services or in writing. Transfers may be made only in U.S. dollars. questions regarding the CashConnect feature, please call UBS Client In addition, by enrolling in the service and through your Services USA at 1-800- continued use, you agree to maintain sufficient balances to Providing Payment or Transfer Instructions 762-1000. cover your bill payments and electronic funds transfers at all times. Likewise, you understand that we are not liable You may provide payment or transfer instructions via the for any overdraft or insufficient funds situation caused by Internet, over the telephone, in writing or by other means.

19 About Your UBS Account: Bill Payment and Electronic Funds Transfer Service Agreement Service Transfer Funds Electronic and Payment Bill Account: UBS Your About You may notify us by The Bill Payment and Electronic funds Transfer Service Canceling A Transaction calling (800) 762-1000, 24 hours a day, 7 days a is available 24 hours a day, 7 days a week (excluding week, or by writing to: maintenance periods) at www.ubs.com/onlineservices or You may cancel specific payment or transfer instructions by calling (800) 762-1000 to access ResourceLine®. With up to 6:00 p.m. Eastern time on the Process Date for that UBS Financial Services ResourceLine® you may use our interactive voice response transaction. We are not liable for cancellations we receive Inc., 1000 Harbor Blvd., system or speak to a live operator. Outside the U.S., you after 6:00 p.m. Eastern time on that business day. This 5th Floor, may call us collect at (201) 352-5257. Certain bill payments includes regular automatic payments, bill payments and Weehawken, NJ 07086 and electronic funds transfers can only be requested electronic funds transfers you have instructed us to make Attn: Bill Payment and through Online Services or in writing. We cannot accept in advance out of your Account. Process Dates for specific Electronic Funds Transfer Service payment or transfer instructions provided via e-mail. payments and transfers are available from Online Services or ResourceLine. Outside the U.S., call Instructions to transfer $100,000 or more must be provided us collect at (201) 352- to a live operator or executed via Online Services. The You may request a cancellation the same way you provide 5257. transaction limit via Online Services is $1,000,000. We payment or transfer instructions. If you make your request reserve the right to change or limit the frequency or dollar over the telephone, however, we may require you to Your Account’s amount of a payment or transfer at any time without prior confirm it in writing within 14 days after your call. If you “Withdrawal Limit” is notice. send your request through the mail, we must receive it the amount of funds available for securities in our offices at least three (3) business days before the purchases and other Process Date. transactions on any Process Date particular day. For If you ask us to stop a regular automatic payment, bill more information, see Your instructions to us must specify the date on which payment or electronic funds transfer that you have the “General Terms you want us to initiate a payment or transfer. That date is authorized in advance, and we do not do so, we will be and Conditions” in called the “Process Date.” If we receive your instructions liable for your losses or damages to the extent required by the Agreements and for a particular date after 6:00 p.m. Eastern time on that Federal law. We do not accept liability, however, for losses Disclosures booklet or call your Financial business day, or on a holiday or weekend, the first business or damages that might be incurred if we did not receive Advisor. day after receipt (or such later date you may specify) will be your request by 6:00 p.m. Eastern time on the Process designated as the Process Date. Date.

“Business Days” are The Process Date is not, however, the date on which the You may attempt to cancel a transaction that has been Monday through Friday. payment or transfer will actually be received and/or posted processed but not “cleared.” A cleared payment or transfer Bank holidays in New by your payee. is one that has been received and posted by the payee York State and New or outside financial institution. To attempt to cancel a York Stock Exchange holidays are not a transaction after its Process Date but before it has cleared, business day. Timing of Bill Payments call us at (800) 762-1000. We will not accept liability for losses or damages that might be incurred if we are unable See the section titled, We will debit your Account for a bill payment on the to stop the payment or transfer. We may also require you “Providing Payment or Process Date indicated in your instructions. If your payee to confirm your request in writing within 14 days of your Transfer Instructions” to can receive electronic payments, we will generally send call. We will charge a fee of $15.00 for each request to review ways to access your payments electronically. Otherwise, we will mail a cancel a payment or transfer after its Process Date. our systems. physical check to the payee’s address of record. Depending Notifying us by on whether the payment is sent electronically or by physical telephone is the best check, it may not be received by the payee until several Funds Transfer Initiated By Third Party; Electronic way to minimize your days after the Process Date. Check Conversion potential losses, if you You may authorize a third party to debit your accounts suspect your PIN or Accordingly, we recommend that all instructions specify a using an electronic funds transfer. In addition, you may password has been Process Date at least five (5) to seven (7) business days prior authorize a merchant, or other payee, to make a one-time lost or stolen, or if to the date the payment is due. If you follow the procedures payment from your account via an electronic funds transfer you find unauthorized described above and schedule your payments for a Process using information from your check. By enrolling in this transactions in your Account. Date at least five (5) to seven (7) business days prior to the service and through your continued use of it, you authorize due date of the bill, and we fail to process the payment on us to honor and pay these electronic funds transfers, and ResourceLine is available the scheduled Process Date, we will be responsible for up to debit your account for them any time after we receive 24 hours a day, 7 days $50.00 in late charges. In all other circumstances, you will them. We reserve the right, from time to time, to impose a week, at (800) 762- be responsible for all late charges and penalties. limitations on the number, frequency and dollar amount of 1000, option “0,” in the these types of electronic funds transfers and to return or U.S. or, outside the U.S., Except as provided here, we agree to initiate all payments refuse to pay such electronic funds transfers that exceed by calling collect at (201) in accordance your instructions. We are not liable for those limits. 352-5257. damages unless we breach our agreement. Likewise, we are not responsible for any delay by the receiver in posting or crediting a bill payment or electronic funds transfer, or Documentation for delays caused by incorrect payment instructions or for We display the transfers for your Account on your monthly other reasons beyond our control. statement as required by applicable regulations. If there are no transfers in a given month, we send an account We earn interest income on bill payments during the time statement at least quarterly. after the funds are debited from your Account and before the bill payment is processed. Unauthorized Use of Your Account; Lost or Stolen * If you find an Pin Or Password unauthorized or Timing Of Electronic Funds Transfers questionable Card Please notify us immediately if your Account statement transaction, notify the We debit your Account for an electronic funds transfer on shows any unauthorized automatic payments, or Card Issuer in accordance the Process Date indicated in your instructions. Transfers to unauthorized bill payments or electronic funds transfers, with the Cardholder a Designated Internal Account or to an Authorized Outside other than a UBS Card transaction.* You could lose Agreement. The Cardholder Agreement, Account will generally be sent on the same business day all the money in your Account if you fail to notify us of not this agreement your Account is debited. unauthorized transactions. governs your liability for unauthorized Card We initiate transfers to your Account from a Designated If you do not notify us within sixty (60) days after the transactions. Internal Account or an Authorized Outside Account on the statement on which an unauthorized transaction appears Process Date indicated in your transfer instructions. was mailed or made available to you, and if we can show

20 About Your UBS Account: Bill Payment and Electronic Funds Transfer Service Agreement Service Transfer Funds Electronic and Payment Bill Account: UBS Your About that fraudulent transactions could have been stopped if Our Liability For Failure To Make Bill Payments or You can also call your Financial Advisor or write you had notified us in a timely manner, you may not get Electronic Funds Transfer to us at: back any money you lost after the 60 days. If we do not complete a transfer to or from your account UBS Financial Services You must also notify us immediately by calling on time or in the correct amount, as described in this 1000 Harbor Blvd., ResourceLine® if you believe your PIN or password has agreement, we will be liable for your losses or damages 5th Floor been lost or stolen, or if there may be any unauthorized to the extent required by Federal law. However, there are Weehawken, NJ 07086 automatic payments, bill payments or electronic funds some exceptions for which we are not liable, including if: Attn: Bill Payment and transfers from your Account. i. Through no fault of ours, the payment or transfer Electronic Funds Transfer Service exceeds your Withdrawal Limit, You will have no liability for unauthorized automatic ii. The funds in your Account are subject to legal process The Cardholder payments, bill payments or electronic funds transfers from or other encumbrances restricting transfers, Agreements, not this your Account if: iii. Your Account has been retitled, closed or blocked for agreement, governs the i. You have exercised reasonable care in safeguarding security reasons, investigation of suspect your PIN or password from risk of loss or theft; iv. The Bill Payment or Electronic Funds Transfer Service Card transactions. ii. You have not reported two or more incidents of was not working properly and you were aware of the unauthorized use within the preceding twelve months; malfunction when you entered your instructions, and v. The bank or other financial institution where you iii. Your Account is in good standing. maintain an Authorized Outside Account mishandles or delays a payment or transfer we send it, In any event, if you notify us within two (2) business days vi. You have not provided us with the correct names or of discovering the loss or theft of your PIN or password account information for the accounts to or from which or any unauthorized automatic payments or unauthorized you wish to direct a payment or transfer, bill payments or electronic fund transfers, you can lose no vii. Circumstances beyond our control, such as fire, flood or more than $50.00. interference from an outside force, prevent or delay the transaction despite any reasonable precautions we may If you do NOT notify us within two (2) business days after have taken, or you discover the loss or theft of your PIN or password, viii. Any other exceptions stated in this agreement. or any unauthorized transactions, and we can show that we could have stopped the unauthorized use if you To the extent permitted by applicable law, we are not be had notified us in a timely manner, you could lose up to liable for any special, incidental, consequential or exemplary $500.00. damages, including, without limitation, lost profits arising in any way out of the use of these services, or for If a good reason, such as a long trip or hospital stay, misdirected payments or transfers due to your input errors. prevents you from notifying us, we will extend the above time periods reasonably. Confirming A Payment or Transfer

Questions or Errors on Your Account Statement To confirm whether a payment or transfer, including a If you think your account statement or receipt is incorrect, direct deposit, has been executed, log in to your Account need more information about any transactions on a via Online Services at www.ubs.com/onlineservices or call statement or receipt (except UBS Card transactions), or (800) 762-1000. have any other inquiries about your Account, please call ResourceLine® or write to us at the address above. Notice of Varying Amounts We will ask for the following information: i. Your name and account number If you intend to make regular preauthorized transfers of ii. A description of the error or the transfer you are varying amounts to the same person or entity, the person questioning, why you believe it is an error or why you you are going to pay is required to inform you at least 10 need more information days before each payment, of the amount and timing of iii. The dollar amount of the suspected error each payment.

If you provide this information over the phone, we may ask you to send your description, complaint or question to us Charges in writing within ten (10) business days of notifying us. Bill payments and electronic funds transfers are free of We will investigate the issue and advise you of our findings charge for all accounts other than a Business Services within ten (10) business days after we receive your letter. Account BSA (BSA). The first twenty (20) combined If an error has been made, it will be corrected promptly. payments and transfers per month from a BSA to In some cases, however, it may take up to 45 days to your Authorized Outside Accounts are free of charge. investigate an error or question. Thereafter, your Account will be charged $0.50 for each outgoing transaction. Transfers into a BSA and between If we need more time, we will credit your Account within a BSA and any Designated Internal Accounts are free of ten (10) business days for the amount of the error in charge. question. You may use that money during the time it takes us to complete the investigation. If we ask you to put your We may terminate the Bill Payment or Electronic Funds question or complaint in writing, but we do not receive Transfer Service or charge you for payments or transfers it within ten (10) business days, we are not obligated to from your Account to your Authorized Outside Accounts credit your Account. if we determine that such payments and transfers have become excessive. If this happens, we will notify you. Investigations involving new Accounts, point-of-sale errors or foreign transactions may take up to ninety (90) days to We may charge you a returned-item fee of $15.00 for complete. It may take us up to twenty (20) days to credit each bill payment and/or electronic funds transfer that is new Accounts for the amount you think is in error. returned due to insufficient or uncollected funds in any of your Authorized Outside Accounts. By enrolling in and We will tell you the results of our investigation within using these services, you agree to pay the above charges three (3) business days of completing it. If we decide there and authorize us to charge your Account, or any other was no error, we will send you a written explanation. You account you maintain with us, if there are insufficient funds may ask for copies of the documents that we used in the in your Account for such amounts. investigation.

21 About Your UBS Account: Bill Payment and Electronic Funds Transfer Service Agreement Service Transfer Funds Electronic and Payment Bill Account: UBS Your About The UBS Client Privacy Rejected And Returned Electronic Funds Transfers that your PIN or Password has been lost or stolen, that Notice is mailed to you annually. It is someone has attempted to use it without your consent, or also available on Transfers may be rejected and returned by your bank or that funds have been transferred or disbursed without your our website at other financial institution for the following reasons: permission, you must notify us immediately by calling (800) www.ubs.com/fsi. Click i. Insufficient or Uncollected Funds in your Authorized 762-1000. From outside the U.S., call (201) 352-5257 on “Privacy Statement” Outside Account: When you request a transfer from collect. Operators are available 24 hours a day, 7 days a at the bottom of the an Authorized Outside Account, you must ensure that week. You can also notify us by writing to: Home page. sufficient funds are available to complete the transfer. ii. Closed Authorized Outside Account: If the Authorized UBS Financial Services Inc. Outside Account from which you request a transfer is 1000 Harbor Blvd., 5th Floor closed when we attempt to complete the transfer, it Weehawken, NJ 07086 will be rejected and returned as incomplete. Attn: Bill Payment and Electronic Funds Transfer Services We will deduct a returned item fee from your Account or, if funds are insufficient, from any other account you hold with us for each transfer request we cannot complete from Your Privacy an account with insufficient or uncollected funds or from a closed account. At UBS, we are committed to safeguarding your personal information. For more information, please review the enclosed UBS Client Privacy Notice, which describes the Pin And Password Security personal information we collect and how we handle and protect it. By enrolling in this service and through continued use of it, you agree not to give or make your PIN or Password available to any unauthorized individuals. If you suspect

22 UBS American Express Agreement U Account: UBS Your About

® “Card Issuer” refers to UBS American Express Cardholder Agreement that you can make with your Card. Some network Barclays Bank Delaware, ATM machines may impose additional limits on cash the issuer and processor Cardholder Agreement withdrawals. of the UBS American bs This UBS American Express Cardholder Agreement Express Card or other Agreement Express American (“Cardholder Agreement”) governs the usage of, and Security issuer of that Card. your rights and responsibilities with respect to, any UBS You agree to take all reasonable precautions to prevent any American Express Card(s) (each, a “Card”) issued in other person from learning your PIN or otherwise gaining As used in this connection with your Account. The Card is issued by access to your account. You agree that if you give your Cardholder Agreement, “you” and “your” mean Barclays Bank Delaware (also referred to as the “Card Card to another person, you must get the Card back in the applicant and any Issuer”) in accordance with an agreement between Barclays order to terminate that person’s authority to use your Card. joint applicant(s) for the Bank Delaware and UBS and this Cardholder Agreement. UBS American Express Your Client Relationship Agreement and the terms, Debiting of Transaction From Your Account Card, and “we,” “us,” conditions and disclosures included in your New Account Your Card is not a credit card; it is an access device linked “our” and “ours” refer booklet also apply to your Card, but the terms of this to your Account. You are responsible for all transactions jointly to UBS Financial Cardholder Agreement control in the event of made by using your Card, and for satisfying all obligations Services Inc. and the any inconsistency. incurred in connection with its use. You authorize the Card Card Issuer. Issuer to notify UBS of all your Card transactions on a daily Throughout this This Cardholder Agreement also applies to the use of basis, and you authorize UBS to pay the Card Issuer on Cardholder Agreement, any Cards you request us to issue to any additional your behalf. UBS will deduct funds from your Account to “Card” and “Cards” refer cardholders, as well as to any person using any Card issued pay for your Card transactions. to the UBS American in connection with your Account with express, implied or Express Card(s) issued apparent authority to act on your behalf or on the behalf By signing your Client Relationship Agreement, you in connection with your of any other Cardholder. You agree that the Card Issuer authorize UBS, on notice from the Card Issuer, to deduct UBS Account, but not to may, but is not required to, act on instructions or respond from your Account the amount of cash withdrawals made the UBS Visa Signature credit card. to communications from those additional users. You are with the Card. You also authorize UBS, once each calendar responsible for the use of all Cards issued in connection month, to deduct from your Account the amount of For the purposes of this with your Account. purchases made with the Card that have been received by Cardholder Agreement, the Card Issuer but not yet deducted from your Account. “business days” are This Cardholder Agreement does NOT apply to other defined as Monday features of your Account, such as bill payments and UBS will pay amounts from your Account in the order through Friday. Any day electronic funds transfers, nor does it apply to the UBS Visa specified in the section entitled “Order of Permitted when banks in New York Signature credit card. Payments” in your New Account booklet. If your Account State are authorized or required to be closed is cancelled or transferred, you agree that UBS may deduct and/or any day which Account Access from your Account and pay the Card Issuer the amount of is a New York Stock You may use your Card to: both your cash withdrawals and purchases on a daily basis. Exchange holiday is •• Purchase goods and services wherever American not a business day. Express cards are accepted, and at retail locations that Cancellation participate in and display the network symbols shown on We or the Card Issuer may cancel or revoke your Card, Your Withdrawal Limit the back of your Card. and refuse to allow further transactions, at any time for is the combined total •• Get cash from your Account from ATMs across the any reason without notice or liability, whether or not you of any uninvested cash balances in your country and around the world that accept American are in default of any part of this Cardholder Agreement. Account, balances held Express cards. Cancellation of your Card will not affect your liability in Sweep Options and, for transactions and amounts not yet debited from your if you have margin, the You agree not to use your Card in any illegal transaction, Account. You agree to surrender and stop using your Available Margin. or to purchase, trade or carry securities. Card(s) immediately on the request of the Card Issuer, UBS or any bank or merchant acting on instructions Withdrawal Limit from us. Using your Card, you may get cash and make purchases up to your Withdrawal Limit. Note that your Withdrawal Limit Foreign Transactions may change throughout each day and from day to day. American Express converts transactions in foreign Please note, however, that if your Account is subject to a into U.S. dollars. Unless a particular rate is guarantee that secures the repayment of an obligation or required by applicable law, American Express uses a amount you owe UBS or any of our affiliates (for example, wholesale interbank rate selected on the business day pursuant to a Credit Line Guarantee Agreement), your prior to the day on which the transactions are processed Withdrawal Limit will be reduced on an ongoing basis by by American Express, increased by 2.5%. The currency the amount we, or our affiliates, determine in our, or their, conversion rate used on the conversion date may differ sole discretion is necessary to secure the liability. For a from the rate in effect on the date you used your Card. complete discussion of how we calculate your Withdrawal American Express assesses a currency conversion factor Limit, see the section entitled “Withdrawal Limit” in your of 2.5% to the converted amount (i.e., the U.S. dollar New Account booklet. amount) and aggregates it with the converted amount on your statement. UBS will notify the Card Issuer, on your behalf, of your Withdrawal Limit. You agree that neither you nor any In addition, the Card Issuer will charge UBS Select level person authorized by you will initiate transactions with your Cardholders a Foreign Country Transaction Fee of one- Card(s) that exceed your Withdrawal Limit. You also agree half of one percent (0.50%) of the U.S. dollar amount that, if you do exceed your Withdrawal Limit, the amount of the transaction if you use your Card or account to of all excess transactions will become immediately due and effect a transaction with a party located outside of the payable at our option. United States. This amount is in addition to the currency conversion factor assessed by American Express discussed For security reasons and in order to prevent fraud, we may in the previous paragraph. impose limits on the number and amount of transactions

23 About Your UBS Account: U Account: UBS Your About See the “Fees and UBS Premier and Charter level Cardholders will not be Your Liability For Unauthorized Transfer Charges” section of your New Account booklet for charged a Foreign Country Transaction Fee by the Card Notify the Card Issuer immediately if you suspect your Card information about other Issuer and will only be assessed the currency conversion or PIN has been lost or stolen, or if your statement shows fees applicable to your factor by American Express. transfers that you did not make. Telephoning is the best Account. way of keeping possible losses in your Account down. You Fees could lose all the money in your Account. To report a lost or stolen Other than those discussed in the Foreign Transactions Card or unauthorized section above, no fees are assessed in connection with the You will have no liability for unauthorized use of your Card transaction call (800) use or maintenance of your Card. or PIN if: 762-1000, or (201) 352-5257 collect from i. You have exercised reasonable care in safeguarding bs outside the U.S. UBS will reimburse you unlimited ATM fees imposed by your Card and PIN from risk of loss or theft; American Express Agreement Express American an ATM operator or network (to a maximum of $3.00 ii. You have not reported two or more incidents of You May also write the per transaction) as part of your participation in specific unauthorized use within the preceding twelve months; Card Issuer at: account-level programs: and UBS Card Services •• Select/Premier/Charter Level Clients receive unlimited iii. Your Card account is in good standing. P.O. Box 8801 ATM surcharge reimbursements per year. Wilmington, DE 19899 In any event, if you notify the Card Issuer within two (2) or Refunds business days of discovering any unauthorized use of You agree to accept a credit to your Card instead of a your Card or PIN, you can lose no more than $50.00 for UBS RMA Operations cash refund if you are entitled to a refund for any reason, unauthorized transfers. If you do NOT notify the Card 1000 Harbor Blvd. 5th including in connection with the purchase of goods or Issuer within two (2) business days after you discover the Floor Weehawken, NJ services with, or any error on, your Card. loss or theft of your Card or PIN, or any unauthorized 07086 transactions, and the Card Issuer can prove that it could Confidentiality have stopped the unauthorized use if you had notified it, Notifying the Card Issuer UBS or the Card Issuer will disclose information to third you could lose up to $500.00. by telephone is the best way to keep your parties about your Account, your Card or your transactions: possible losses down. If you do not notify the Card Issuer within 60 days after the You could lose all the •• When necessary to complete a transfer or transaction; statement showing unauthorized transfers was mailed to money in your Account. •• To verify the existence and condition of your Account you, you may not get back any money you lost after the 60 or Card for a third party, such as a credit bureau or days if the Card Issuer can prove that it could have stopped merchant; the unauthorized transfers if you had notified it in time. If •• To comply with government agency or court orders; a good reason (such as a long trip or a hospital stay) kept •• If you give your express permission; or you from notifying the Card Issuer, the Card Issuer may •• As described in the UBS or Card Issuer’s Privacy Policies reasonably extend the time periods.

You agree that UBS and the Card Issuer may share In Case of Errors or Questions About Your information with American Express for the purpose of Transactions administering your Card account. If you think your statement or a receipt is wrong, or if you need more information about a transaction listed on Documentation your statement or a receipt, call the Card Issuer at (800) You can get a receipt every time you use your Card at an 762-1000 or write the Card Issuer at UBS Card Services, ATM or point-of-sale terminal. Your monthly RMA Account P.O. Box 8801, Wilmington, DE 19899-8801, as soon Statement will show the transfers and transactions you as you can. make using your Card. If the error concerns an ATM transaction, you must contact The Card Issuer’s Liability To You the Card Issuer and not the financial institution or network If the Card Issuer does not complete a transfer to or from that operates the ATM. You must contact the Card Issuer your Account on time or in the correct amount according no later than 60 days after the FIRST statement on which to this Cardholder Agreement, the Card Issuer will be the error or problem appeared was sent to you. liable for your losses or damages to the extent required by Federal law. However, the Card Issuer will not be liable for When you contact the Card Issuer: your losses or damages if, for instance: •• Provide your name and Card number, •• Provide the dollar amount of the suspected error, •• Through no fault of the Card Issuer, the transfer exceeds •• Describe the error or the transaction you are questioning, your Withdrawal Limit, and explain as clearly as you can why you believe it is an •• The ATM where you are making the transfer does not error or why you need more information. have enough cash, •• The terminal or system was down, or not working If you inform the Card Issuer of the problem over the properly, and you knew it was not working properly phone, it may require you to send written confirmation of when you started the transfer, your complaint or question within ten (10) business days. •• Circumstances beyond the Card Issuer’s control (such as fire or flood) prevent the transfer, despite reasonable The Card Issuer will determine whether an error has precautions that the Card Issuer has taken, occurred within ten (10) business days after hearing from •• Through no fault of the Card Issuer, the balance of you and will correct any error promptly. If the Card Issuer your Account was attached, subject to legal process or needs more time to investigate your complaint or question, blocked in some way, or however, they may take up to forty-five (45) days to so. •• You were trying to defraud the Card Issuer. If the Card Issuer decides to do this, we will provisionally credit your Account within ten (10) business days for the There may be other exceptions stated in this Cardholder amount you think is in error. You will have use of the Agreement. funds during the time it takes the Card Issuer to complete their investigation. If the Card Issuer asks you to put your Contact In The Event Of Unauthorized Transfer complaint or question in writing and they do not receive it If you believe your Card or Personal Identification Number within ten (10) business days, they may decide not to credit (PIN) has been lost or stolen or that someone has used your Account. or may use your Card or PIN without your permission, call (800) 762-1000 or write: UBS RMA Operations, 1000 For errors involving new Accounts, point-of-sale or foreign- Harbor Blvd., 5th Floor, Weehawken, NJ 07086. initiated transactions, the Card Issuer may take up to ninety (90) days to investigate a problem or question. For

24 About Your UBS Account: U Account: UBS Your About new Accounts, the Card Issuer may take up to twenty (20) business days to credit your Account for the amount you think is in error.

The Card Issuer will inform you of the results within three (3) business days after completing its investigation. If the Card Issuer decides that there was no error, the Card Issuer will send you a written explanation. You may ask for copies of the documents that were used in the investigation.

Changes To This Agreement and Applicable Law bs

We reserve the right to change, modify, delete or add Agreement Express American (collectively, “Changes”) to this Cardholder Agreement and to apply any Changes to Cards that have been issued. We will provide you with a notice of all Changes as required by applicable law. The Card Issuer may, at any time and in its sole discretion, choose to not exercise a right without waiving that right.

This Cardholder Agreement and all aspects of the relationship between you and the Card Issuer with regard to the Card are governed by and construed in accordance with Federal law, and to the extent that state law applies, the laws of the State of Delaware.

25 Intentionally Left Blank

26 UBS MasterCard® Cardholder MasterCard UBS Account: UBS Your About Agreement

This cardholder agreement (the “Cardholder Agreement”) redeeming or withdrawing your Sweep Option holdings, is for your MasterCard account (“MasterCard Account”) if any and (iii) if you have a margin account, by making and the card(s) (“MasterCard”) and a margin loan within your Available Margin, if any. checks (“Checks”) issued to you in connection with your Notwithstanding the immediately preceding sentence, Account. As used in this Cardholder Agreement, “you” however, with respect to MasterCard purchases, UBS will and “your” mean the applicant and joint applicant(s) debit your Account once each calendar month in which for the MasterCard Account or any person using the such purchases are received by the Card Issuer unless MasterCard Account or related cards with the express your account is cancelled or transferred, in which case, ® or implied permission of any applicant. You understand your Account will be debited daily. You authorize the Agreement Cardholder that the use of the MasterCard Account is governed by, Card Issuer to notify UBS of all Check and MasterCard and that by using your MasterCard or Checks you agree transactions and authorize UBS to transfer funds from your to be bound by, the following terms and conditions: Account to pay the Card Issuer for such transactions. See Your Account is a central asset account that includes About Your UBS Account: General terms and Conditions a conventional RMA or Business Services Account BSA section for more information on payment of Check and brokerage account consisting of securities and uninvested MasterCard transactions from your account. cash balances, and which may also include a Security Credit Line (“Margin”) account with UBS and a Master Cancellation Card Account with the Card Issuer. The Card Issuer or UBS may cancel your MasterCard Account, refuse to allow further transactions or revoke your MasterCard Account MasterCard at any time whether or not you are in default You may use your MasterCard to purchase goods and of any part of this Cardholder Agreement. Cancellation of services from participating merchants and to obtain cash your MasterCard Account will not affect your liability to from participating financial institutions that display the the Card Issuer for Check or MasterCard transactions and “MasterCard” or “Cirrus” service logos. These MasterCard amounts not yet billed to your MasterCard Account. The transactions are subject to certain limitations and may not Card Issuer or UBS may cancel your MasterCard Account exceed your MasterCard Authorization Limit, as described at any time for any reason without notice or liability. You below. UBS1, on your behalf, will pay the Card Issuer any agree to surrender and discontinue use of the MasterCard outstanding balance in your MasterCard Account from your immediately upon the Card Issuer’s request or the request Account as more specifically described in this Cardholder of UBS or of any other bank or merchant that is acting Agreement. upon the Card Issuer’s instructions.

Card Authorization Limit Foreign Transactions The MasterCard authorization limit (“Card Authorization The Card Issuer or UBS will charge, and you will pay, Limit”) will be determined on a daily basis as follows: in U.S. dollars for all foreign transactions at the exchange UBS, on your behalf, will notify the Card Issuer of your rate in effect at the time the transaction is processed (not Account’s Withdrawal Limit. From your Withdrawal when the transaction is effected by Client), including Limit, the Card Issuer then subtracts (i) the amount of any special currency exchange charges. For MasterCard MasterCard transactions, and (ii) the amount of Checks, transactions, the exchange rate used at the time the which have been paid by the Card Issuer, but which have clearing transaction is processed by the Card Issuer or not yet been paid from your Account. The result is your MasterCard is either (i) a government mandated rate or Card Authorization Limit. Since your Card Authorization (ii) the wholesale rate in effect the day before the Limit depends upon your available Withdrawal Limit and processing date, increased by up to 1%. the status of your Check and MasterCard transactions, your Card Authorization Limit may change throughout Travel Accident Insurance Description of Coverage each day and from day to day. In no event shall you or Principal Sum: $500,000 any other person authorized by you permit charges to This is an accidental death and dismemberment only policy your MasterCard Account at any time to exceed your and does not pay benefits for loss from sickness. This Card Authorization Limit and you agree that, in such Description of Coverage is provided to eligible cardholders, event, the amount of such excess charges shall become and replaces any and all Descriptions of Coverage immediately due and payable at the option of UBS or Card previously issued to the insured with respect to insurance Issuer. UBS and the Card Issuer, on behalf of UBS, reserve described herein. the right to authorize or decline individual transactions based on the Card Authorization Limit, fraud or credit risks Eligibility and Period of Coverage presented by individual cardholder usage patterns, cash You are eligible for coverage on the date your MasterCard access restrictions to manage a secured or high credit risk is issued. This plan is effective March 1, 2006. You and account, or based upon card-holder-designated restrictions your dependents2 become covered automatically when on use. UBS furthermore reserves the right to establish, the entire Common Carrier fare is charged to your and to change from time to time, RMA or Business Services covered MasterCard account (“Covered Persons”). It is not Account BSA program level authorization parameters based necessary to notify UBS the Insurance Company (Virginia upon fraud risks, economic factors or any other conditions Surety Company, Inc.), or Cardholder Services (“Benefit that we may consider a risk to individual clients and/or Administrator”) when tickets are purchased. Coverage to UBS. ends when the policy is terminated or on the date your covered card terminates or ceases to be in good standing, Automatic Payment of Card/Check Transaction whichever occurs first. The Card Issuer will notify UBS of Check transactions, cash withdrawals and MasterCard purchases on a daily Benefits Subject to the terms and conditions, if a Covered basis after such transactions are received by the Card Person’s accidental bodily Injury occurs while on a Covered Issuer. Upon notification, UBS as your agent and on Trip and results in any of the following Losses within your behalf, will promptly pay the Card Issuer from one (1) year after the date of the accident, the Insurance your Account in the following order: (i) by debiting the Company will pay the following percentage of the Principal uninvested cash balances in your Account, if any; (ii) by Sum for accidental Loss of:

27 About Your UBS Account: UBS MasterCard UBS Account: UBS Your About Life ...... 100% underwritten by Virginia Surety Company, Inc. Please read Both hands or both feet ...... 100% this description carefully. All provisions of the plan are in Sight of both eyes ...... 100% the master policy, VTA00015, issued to the Visa U.S.A. One hand and one foot ...... 100% Trust, Chicago, IL which is effective 4/1/03. Any difference Speech and hearing ...... 100% between the policy and this description will be settled One hand or one foot and the sight of one eye...... 100% according to the provisions of the policy. One hand or one foot ...... 50% Sight of one eye ...... 50% Questions Regarding Travel Accident Insurance: Speech or hearing ...... 50% Answers to specific questions can be obtained by writing Thumb and index finger on the same hand...... 25% to the Benefit Administrator:

In no event will multiple obligate the Cardholder Services Insurance Company in excess of the stated benefit for any 550 Mamaroneck Avenue, Suite 309 one Loss sustained by a Covered Person as a result of any Harrison, NY 10528 one accident. The maximum amount payable for all Losses due to the same accident is the Principal Sum. Underwritten by: ®

Cardholder Agreement Cardholder Virginia Surety Company, Inc. Loss: means actual severance through or above the wrist 1000 N. Milwaukee Avenue or ankle joints with regard to hands and feet; entire Glenview, IL 60025 and irrevocable Loss of sight, speech, or hearing; actual severance through or above the metacarpophalangeal Additional Provisions for Travel Accident Insurance: Travel joints with regard to thumb and index fingers. The life Accident Insurance is provided under a master policy of benefit provides coverage in the event of a Covered insurance issued by Virginia Surety Company, Inc. (herein Person’s death. If a Covered Person’s body has not been referred to as “the Company”). We reserve the right to found within one (1) year of disappearance, stranding, change the benefits and features of all these programs. sinking, or wreckage of any Common Carrier in which the The terms and conditions contained in this Cardholder Covered Person was covered as a passenger, then it shall Agreement may be modified by subsequent endorsements. be presumed, subject to all other provisions and conditions Modifications to the terms and conditions may be provided of this coverage, the Covered Person suffered Loss of life. via additional Cardholder Agreement mailings, statement inserts, or statement messages. The program described in Injury: means bodily injury resulting directly and this Cardholder Agreement will not apply to cardholders independently of all other causes from an accident whose accounts have been suspended or canceled. which occurs while the Covered Person is covered under this policy. The Company, and/or UBS can cancel or non-renew the benefit, and if we do, we will notify you at least Covered Trip: means a trip (a) while the Covered Person thirty (30) days in advance. Such notices need not be is riding on a Common Carrier as a passenger and not as given if substantially similar replacement benefit takes a pilot, operator, or crew member; (b) charged to your effect without interruption and is provided by the same covered card; and (c) that begins and ends at the places insurer. Insurance benefits will still apply to Covered Trips designated on the ticket purchased for the trip. Covered commenced prior to the date of such cancellation or Trip will also include travel on a Common Carrier (excluding non-renewal, provided all other terms and conditions of aircraft), directly to, from, or at any Common Carrier coverage are met. Travel Accident Insurance does not apply terminal, which travel immediately precedes departure if your card privileges have been suspended or canceled. to or follows arrival at the destination designated on However, insurance benefits will still apply to Covered the ticket purchased for the Covered Trip. Trips commenced prior to the date that your account is suspended or canceled provided all other terms and Common Carrier: means any scheduled airline, land, or conditions of coverage are met. water conveyance licensed for transportation of passengers for hire. Common Carrier does not include a conveyance Coverage will be void if, at any time, the eligible cardholder operated for sport, recreation, and/or sightseeing activities has concealed or misrepresented any material fact or or for any travel in any aircraft device for aerial navigation circumstance concerning the benefit or the subject thereof except as expressly provided in the policy. of the eligible cardholder’s interest herein, or in the case of any fraud or false swearing by the Insured relating thereto. Exclusion: No payment will be made for any Loss that No person or entity other than the eligible cardholder shall occurs in connection with, or is the result of: (a) suicide, have any legal or equitable right, remedy, or claim for attempted suicide, or intentionally self-inflicted injury; insurance proceeds and/or damages under or arising out (b) any sickness or disease; (c) travel or flight on any of this coverage. kind of aircraft or Common Carrier except as a fare- paying passenger in an aircraft or on a Common Carrier No action at law or in equity shall be brought to recover operated by a regular schedule for passenger service over on this benefit prior to the expiration of sixty (60) days an established route; or (d) war or act of war, whether after proof of Loss has been furnished in accordance declared or undeclared. with the requirements of this Description of Coverage.

Beneficiary: Benefit of Loss of life is payable to your estate, The Company, at its expense, has the right to have you or to the beneficiary designated in writing by you. All other examined as often as reasonably necessary while a claim benefits are payable to you. is pending. The Company may also have an autopsy made unless prohibited by law. Notice of Claim: Written Notice of Claim, including your name and policy number VTA00015, should be mailed Other Provisions to the Benefit Administrator within twenty (20) days of a 1. The Card Issuer or UBS has no responsibility for the covered Loss or as soon as reasonably possible. The Benefit failure of any machine, merchant, financial institution Administrator will send the claimant forms for filing proof or other party to honor your MasterCard. of Loss. 2. If legal action is required by the Card Issuer, you will pay the costs, including attorneys’ fees to the extent The Cost: This travel insurance is purchased for you by UBS. permitted by state law. 3. Each MasterCard Account you have with the Card Issuer Description of Coverage: This description of coverage is separate from any others you have with the Card details material facts about a Travel Accident Insurance Issuer. Each MasterCard Account will be represented Policy which has been established for you and is by a different account number.

28 About Your UBS Account: UBS MasterCard UBS Account: UBS Your About Interpretation Disclosure of Account Information to Third Parties This Cardholder Agreement shall be governed by federal The Card Issuer will not disclose information about your law and the laws of the State of Ohio. If any provision MasterCard Account or the transactions you make, of this Cardholder Agreement is held to be invalid, such except (i) in accordance with the terms of this Cardholder invalidity will not affect the validity of the remaining Agreement; (ii) as necessary to complete transactions; provisions. (iii) to verify the existence and condition of your Account or Card Account upon request of a third party, such as a Additional Terms and Conditions Regarding credit bureau or merchant; (iv) to comply with government MasterCard Electronic Funds Transfers agency or court orders; (v) in accordance with your written Some of your Card transactions may be MasterCard permission; and (vi) in connection with any authorization Electronic Fund Transfers (“MasterCard EFT”), which are messages transmitted in point-of-sale transactions. described below. You understand that these additional terms and conditions specifically apply only to MasterCard Foreign Transactions and Card Issuer Fees, Charges EFT transactions in addition to other terms and conditions and Payments of this Cardholder Agreement except to the extent such Client is charged in U.S. dollars for all foreign transactions terms are inconsistent. (e.g., purchases, cash advances, ATM (hereafter defined) ®

withdrawals, etc.) at the exchange rate in effect at the time Agreement Cardholder MasterCard EFT Transactions the transaction is processed (not when the transaction is A MasterCard EFT is any transfer of funds by the use effected by Client), including any special currency exchange of your MasterCard(s) through an electronic terminal, charges mentioned below. If UBS takes an item in foreign telephone or other electronic means as may be made currency for deposit or collection, Client will bear all available by the Card Issuer for the purpose of authorizing currency exchange rate risk. For MasterCard transactions, a debit or credit to your Account. the exchange rate used at the time the clearing transaction is processed by the Card Issuer or MasterCard is either: Limitations of Transfers (1) the government mandated rate; or (2) the wholesale You may use your MasterCard to make purchases up rate in effect the day before the processing date. to the amount of your Card Authorization Limit. You may use your MasterCard at automatic teller machines Fees (“ATMs”) that display either the “MasterCard” or “Cirrus” The Card Issuer may assess fees from time to time in service logo to obtain cash with a minimum withdrawal accordance with its published schedules, including, but amount of $20. In addition to your Card Authorization not limited to, a returned check fee of $15 for any check Limit, certain ATMs may impose other limitations on the or any other instrument capable of payment on Client’s frequency and dollar amounts of your withdrawals. MasterCard which is presented and not paid. Additionally, a special currency exchange fee referenced above of up to Business Days 1% is assessed for foreign transactions. Though UBS does The Card Issuer’s business days are Monday through Friday not charge a fee for ATM withdrawals, the bank except for certain legal holidays when the Card Issuer’s or institution processing the ATM transaction may do so. offices are closed. UBS’s business days are Monday through Subsequently, those imposed fees will be passed on by Friday except for bank holidays and New York Stock the Card Issuer. Exchange holidays. Other Important Information MasterCard EFT Charges To report a lost or stolen card from outside the U.S. please There may be special charges for MasterCard EFT call 402-397-6032; from within the U.S. please call 877- transactions that are provided for in this Cardholder 813-5357. Clients will receive a “Guide to Benefits” with Agreement. the delivery of their MasterCard. The “Guide” is provided by MasterCard and contains information about travel Your Right to Receive Documentation or Notice insurance, retail protection services and additional phone of Transactions number information for cardholders. You will receive a receipt at the time you make a MasterCard EFT at the point of sale or electronic terminal that accepts your MasterCard each time you make a transaction.

Liability for Failure to Complete Transactions If the Card Issuer does not complete a transaction from your MasterCard Account on time or in a correct amount, according to this Cardholder Agreement, the Card Issuer will be liable for your losses or damages. However, there are some exceptions. For instance, the Card Issuer will not be liable if (i) through no fault of its own, you do not have enough available assets in your Account; (ii) if circumstances beyond the Card Issuer’s control (such as fire or flood) prevent the transaction, despite reasonable precautions that the Card Issuer has taken; and (iii) there may be other exceptions to the Card Issuer’s liability.

29 Intentionally Left Blank

30 Disclosure Statement for Traditional or Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About Roth Individual Retirement Accounts

A. General Introduction may do so only by mailing or delivering a written notice of revocation to UBS Financial Services Inc. at the address Choosing your IRA. The Internal Revenue Code permits which appears at the end of this Disclosure Statement. If individuals to establish various types of individual you mail your notice, the notice will be considered given retirement accounts, including a “traditional IRA” on the date that it is postmarked if it is mailed by U.S. and a “Roth IRA” (which are collectively referred to in mail (or if sent by certified or registered mail, the date of this Disclosure Statement as “IRAs”), to save for their certification or registration), first class postage prepaid and retirement on a tax advantaged basis. The type of IRA is properly addressed to, and in due course is received by, you are establishing depends upon whether you designate UBS Financial Services Inc. this IRA as a traditional IRA or Roth IRA in the Adoption Agreement. The tax rules applicable to your IRA will differ If you have any questions as to your right to revoke this depending on your . IRA, please call 1-877-827-4005, Option 1, Sub-Option 2 during normal business hours. Disclosure Statement. This Disclosure Statement, which UBS Financial Services Inc. is required to provide to you In the event that you decide to revoke your IRA and do so under Internal Revenue Service (“IRS”) regulations, contains within such seven-day period, you are entitled to a return only a general description of the requirements and features of the entire amount of the consideration originally paid of traditional IRAs and Roth IRAs and a summary of the by you into your IRA, without adjustment for such items material terms of the Custodial Agreement. A complete as brokerage commissions or fees, administrative expenses copy of the UBS Financial Services Inc. Custodial Agreement or fluctuations in market value. for traditional or Roth Individual Retirement Accounts referred to in this Disclosure Statement is provided to you with this Disclosure Statement, along with a copy C. Eligibility and Contributions of the Client Relationship Agreement. That Custodial Agreement and the Client Relationship Agreement are Traditional IRA legal agreements between you and UBS Financial Services Establishing a Traditional IRA. If you are under age 70½ Inc. and set forth your rights, as well as your obligations. by year-end and have (or if you file a joint tax return, your You should carefully review those agreements. spouse has) taxable compensation for the year, you may establish a traditional IRA, regardless of whether you are Before deciding to establish a traditional IRA or Roth IRA, you an active participant in an employer’s tax-qualified should carefully review all applicable commissions, fees and retirement plan. other charges with your Financial Advisor. You may obtain further information regarding a traditional IRA or Roth IRA Generally, “compensation” (for purposes of both the from any District Office of the Internal Revenue Service. traditional IRA and the Roth IRA contribution limits) includes all of the amounts you receive for providing Legal Requirements. By law, an IRA is a trust or personal services, including wages, salaries, tips, custodial account created by a written document in the professional fees, bonuses, commissions and other such United States for the exclusive benefit of yourself and amounts earned for personal services, and certain earned your beneficiaries, and which meets all of the following income from self-employment (including certain partnership requirements: (i) the trustee or custodian must be a income where personal services are a material income- bank, a federally insured , a savings and loan producing factor). Also, any taxable alimony and separate association or other person, such as UBS Financial Services maintenance payments received under a decree of divorce Inc., that has been approved by the IRS to act as a trustee or separate maintenance are treated as compensation. or custodian for IRAs; (ii) contributions, except for rollover “Compensation” also includes any differential wage contributions, must be in cash; (iii) contributions for any payments you receive from your employer while performing year cannot exceed the Contribution Limit plus the Catch- active duty military service in the “uniformed services” up Limit, if applicable, as defined below; (iv) you must (e.g., Army, Navy, Marine Corps, Air Force, Coast Guard, have a non-forfeitable right to the amounts in the IRA at National Guard and Public Health commissioned corps) for all times; (v) assets in your IRA cannot be commingled or a period of more than 30 days. In addition, for members combined with other property, except in a common trust of the U.S. armed forces serving in a combat zone, untaxed fund or common investment fund; (vi) funds in an IRA combat pay is considered compensation. Pension and cannot be used to buy a life insurance policy; and (vii) for annuity income, and payments of deferred compensation, a traditional IRA, distributions must start by April 1st of the are not “compensation” for this purpose. year following the year you attain age 70½. Maximum Contributions to a Traditional IRA. This traditional IRA or Roth IRA has received an opinion The maximum amount you can contribute to all of your letter from the IRS that this traditional IRA or Roth IRA traditional IRAs for any year is equal to the Contribution satisfies the applicable requirements for IRAs under Limit or 100% of your compensation, if less. The Sections 408 and 408A of the Internal Revenue Code. The “Contribution Limit” is $5,000 for 2009. For years after IRS approval is a determination only as to the form of the 2009, the $5,000 Contribution Limit may be increased for IRA and does not represent a determination of the merits inflation. In addition, if you will be age 50 by the end of of such IRA. the year, you can make an additional contribution equal to the “Catch-up Limit” of $1,000 each year.

B. Revocation of this IRA Additional Contributions. For calendar year 2009, if you meet the criteria described below, you may make additional If you receive this Disclosure Statement at the time you are traditional or Roth IRA contributions of up to $3,000. In first establishing your traditional IRA or Roth IRA, you may order to make these additional contributions: revoke the IRA at any time within seven (7) days after the •• you must have been a participant in a 401(k) plan under date on which you receive this Disclosure Statement. If you which your employer matched at least 50% of your wish to revoke this IRA within the above time limit, you contributions with stock of the employer;

31 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About •• in a taxable year before the year of your additional Phaseout Range contribution your employer (or a controlling corporation) must have been a debtor in a bankruptcy case, and your Tax Year Married Filing Jointly Single or Head of employer or any other person must have been subject to or Qualified Widow(er) Household an indictment or conviction resulting from the business 2009 and $89,000 - $109,000 $55,000 - $65,000 transactions related to the bankruptcy; and thereafter •• you must have been a participant in the 401(k) plan on the date six months before the bankruptcy case was filed. For tax years after 2009, the amounts above may be UBS Financial Services Inc. reserves the right to request a increased for inflation. certification and/or proof from you regarding your eligibility to make these additional contributions as necessary to carry If you are married and file a joint return with your spouse out its tax reporting and other obligations. and your spouse is an active participant in an employer’s retirement plan but you are not, your ability to make Repayment of Qualified Reservist Distributions. If deductible traditional IRA contributions will not be affected, you received a “qualified reservist distribution,” as defined unless you and your spouse’s combined AGI falls within below in the section titled “Early Distribution Penalty or above a phaseout range of between $166,000 and Tax,” you may, at any time during the two-year period $176,000 (as increased after 2009 for inflation). Thus, beginning on the day after the end of your active duty if you and your spouse’s combined AGI is above the period, make one or more contributions to your IRA in an phaseout range, your traditional IRA contributions will aggregate amount not to exceed your qualified reservist not be deductible, and if you and your spouse’s combined distribution. The dollar limitations that otherwise apply to AGI is within the phaseout range, your traditional IRA IRA contributions do not apply to any contribution up to contributions will be partially deductible. the amount of your qualified reservist distributions. No deduction is allowed for these contributions. If you are married but file a separate return and you or your spouse is an active participant in an employer’s Repayment of Certain Qualified Assistance retirement plan, your deductible traditional IRA Distributions. You have three years from the date you contributions are phased out as your AGI increases received any of the following types of distributions to from $0 to $10,000. contribute up to the amount of such distribution to your IRA: (1) a “qualified hurricane distribution,” as defined in There is a special rule which provides that if your AGI is Internal Revenue Service Publication 4492, (2) a “qualified within (but not over) the phaseout range, you are entitled recovery assistance distribution,” as defined in Internal to a minimum deductible traditional IRA contribution Revenue Service Publication 4492-A or (3) a “qualified of $200. There is another special rule under which, for disaster recovery assistance distribution,” as defined purposes of applying the phaseout rule, you are treated in Internal Revenue Service Publication 4492-B. The as being single for a year, if you are married but you did amounts so contributed are treated as qualified rollover not live with your spouse at any time during that year. contributions. You cannot contribute to your IRA any of the above qualified distributions you receive as a beneficiary Non-Deductible Contributions to a Traditional IRA. (other than a surviving spouse), any distributions that are Although your income tax deduction for traditional IRA required minimum distributions or any periodic distributions contributions may be reduced or eliminated because your (generally, distributions for a period of 10 years or more, AGI is within or above the phaseout range, you may still for your life or life expectancy or for the joint lives or joint make non-deductible contributions to a traditional IRA of life expectancies of you and your beneficiary). up to the Contribution Limit plus the Catch-up Limit, if applicable, or 100% of your compensation, whichever is Deductible Contributions to a Traditional IRA. If you less (in the case of a traditional and Spousal IRA, defined are married and neither you nor your spouse is an active below, the lesser of the sum of the Contribution Limit participant for any part of the year in an employer’s plus Catch-up Limit, if applicable, for each spouse or retirement plan, you (and your spouse) may deduct the the combined taxable compensation for both spouses). entire amount contributed to a traditional IRA. Similarly, if The difference between the maximum amount you can you are single and not an active participant for any part of contribute to all traditional IRAs and the amount of your the year in an employer’s retirement plan, you may deduct deductible contributions, if any, to traditional IRAs is the the entire amount contributed. The IRS Form W-2, Wage maximum amount of the non-deductible contribution you and Tax Statement, that you receive at the end of the year can make to a traditional IRA. from your employer will indicate whether you are an active participant in your employer’s retirement plan. (If you are Simplified Employee Pension (SEP) Contributions uncertain, ask your employer or the plan administrator.) A traditional IRA may be established as part of a SEP arrangement (referred to as a SEP IRA) that allows your If you are an active participant in an employer’s retirement employer to make contributions to the employer’s own plan, you may be entitled to only a partial deduction or no SEP IRA and those of the employer’s employees. The SEP deduction at all, depending on your income and Federal rules permit an employer to contribute up to 25% of income tax filing status. Your deduction begins to decrease your compensation or $49,000 (as increased after 2009 when your AGI rises above a certain amount and is for inflation), whichever is less, to your traditional IRA, eliminated altogether when it reaches a higher amount (the even if you are age 70½ or older. If your employer has AGI range over which your deduction decreases is referred adopted a SEP arrangement, your employer will give you to as the “phaseout range”). “AGI” for this purpose is further information about this arrangement. Also, you your adjusted gross income calculated taking into account may contribute to your SEP IRA, in addition to amounts any taxable Social Security benefits but without regard to contributed by your employer, up to the limits described your deductible IRA contributions, student loan interest above. deduction, tuition and fees deduction, the foreign earned income exclusion, the foreign housing exclusion or deduction and certain other exclusions and expenses. Roth IRA Maximum Contributions to a Roth IRA. The maximum In general, if your AGI is below the phaseout range amount which you may contribute to all of your Roth IRAs provided below, traditional IRA contributions will be fully in any taxable year is the lesser of: (i) the Contribution deductible; if your AGI is within the phaseout range, Limit plus the Catch-up Limit, if applicable, reduced by traditional IRA contributions will be partially deductible; and the amount of all contributions (other than employer if your AGI is above the phaseout range, traditional IRA contributions under a SEP or SIMPLE) made for the tax year contributions will not be deductible. to all other IRAs (other than Roth IRAs) maintained for your

32 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About benefit; or (ii) the compensation includible in your gross Making Contributions income, reduced by the amount of all contributions (other All contributions (other than rollovers) to your IRA must be than employer contributions under a SEP or SIMPLE) made in cash. You cannot contribute property which you already for the tax year to all other IRAs (other than Roth IRAs) own or which you have an option to buy to your IRA. maintained for your benefit. The maximum amount you may contribute to a Roth IRA for any tax year also depends All contributions must be made to your IRA by the due upon the amount of your modified AGI and your tax return date (not including any extensions) for filing your Federal filing status. (Your modified AGI for Roth IRA purposes is income tax return for the year, which for most taxpayers your AGI for traditional IRA purposes, except that it does is usually April 15th. If you are making a contribution to not include any income resulting from the conversion your IRA in respect of a prior year, you must inform UBS of a traditional IRA to a Roth IRA.) However, unlike a Financial Services Inc. of that fact. traditional IRA, an individual who has attained age 70½ is permitted to contribute to a Roth IRA, and you may make a You may make a contribution to your traditional or Roth contribution to a Roth IRA even if you or your spouse is an IRA by directing that all or a portion of your federal income active participant in an employer’s retirement plan. tax refund be directly deposited into your account by completing Internal Revenue Service Form 8888. If you are married filing a joint income tax return, and you and your spouse have modified AGI for the tax year in Excess Contributions excess of $176,000 (as adjusted after 2009 for inflation), If you contribute amounts to either your traditional IRA or you may not make any contribution to a Roth IRA for your Roth IRA over the maximum amount you are allowed that year, and your maximum contribution is subject to to contribute, that excess amount will be considered an reduction if your modified AGI exceeds $166,000 (as excess contribution. An excess contribution is subject to a adjusted after 2009 for inflation). Similarly, if you are non-deductible excise tax of 6% for each year the excess a qualifying widow(er) and have modified AGI for the contribution remains in the IRA. tax year in excess of $176,000 (as adjusted after 2009 for inflation), you may not make any contribution to a Excess contributions may be corrected without being Roth IRA for that year, and your maximum contribution subject to the 6% penalty tax if the excess contribution is subject to reduction if your modified AGI exceeds and any earnings attributable to the excess contribution are $166,000 (as adjusted after 2009 for inflation). Married withdrawn before the due date (plus extensions) for filing individuals filing separate returns cannot make any your Federal income tax return for the tax year for which contribution to a Roth IRA for the tax year if their modified the excess contribution was made. Also, no deduction AGI for that year exceeds $10,000 and is reduced for should be taken for the excess contribution (in the case modified AGI below $10,000. Single taxpayers and heads of a contribution to a traditional IRA). The earnings of household cannot make any contribution to a Roth IRA attributable to the excess contributions are included in for the tax year if their modified AGI for that year exceeds your taxable income for the tax year in which the excess $120,000 (as adjusted after 2009 for inflation), and contribution was made, and, if you are under age 59½, such taxpayer’s maximum contribution will be reduced if these earnings are subject to a 10% early distribution modified AGI exceeds $105,000 (as adjusted after 2009 for penalty tax. If the excess contributions are withdrawn after inflation). Like the special rule for deductible traditional IRA the due date for filing your Federal income tax return for contributions, if your modified AGI is within the phaseout the year for which the contribution was made, the excess range, you may make a minimum Roth IRA contribution of contributions will be subject to the 6% penalty tax. $200. Also, you are treated as being single, for a tax year, if you are married but did not live with your spouse at any After filing your Federal income tax return, you may correct time during that year. an excess contribution by withdrawing only the dollar amount of the excess contribution (leaving the earnings in Spousal IRA the IRA). In the case of a Roth IRA, the withdrawal is not If you and your spouse file a joint income tax return and taxable. In the case of a traditional IRA, this withdrawal your spouse is under age 70½ before year-end (even if of the excess contribution will not be includible in income you are over age 70½), you can set up and contribute to (or subject to any 10% early distribution penalty tax) if: a traditional IRA or a Roth IRA for your spouse, whether (i) your aggregate regular contributions to all IRAs do or not your spouse has compensation. This arrangement not exceed the Contribution Limit plus the Catch-up is sometimes called a Spousal IRA. You cannot set up one Limit, if applicable, and (ii) in the case of a traditional IRA that you and your spouse own jointly, so you and your IRA contribution, you took no deduction for the excess spouse must use separate IRAs. To establish a Spousal IRA, amount or you file an amended return (Form 1040X) which a separate Account Agreement and Adoption Agreement removes the excess deduction. Otherwise, in the case of a must be executed by your spouse. Also, you cannot roll traditional IRA, any excess contribution withdrawn will be over assets from your IRA to your spouse’s IRA. included in your income in the year withdrawn and may be subject to the 10% early distribution penalty tax. The total combined contributions you can make to your IRA and a Spousal IRA is the smaller of (x) $10,000 (as adjusted Finally, excess contributions to a traditional IRA, while after 2009 for inflation), plus the amount of any Catch-up not deductible in the year in which they were made, may Contribution for you and/or your spouse if you and/or your be deducted in a subsequent year to the extent that you spouse is age 50 or older by the end of the year, or (y) the contribute less than the maximum allowable amount combined compensation for you and your spouse for the during that year. This method allows you to avoid an actual year. In most cases, you can divide your IRA contributions withdrawal and, as the prior excess contribution is reduced between your IRA and the Spousal IRA in any way you or eliminated, the 6% tax will be correspondingly reduced choose, as long as you do not contribute more than the or eliminated for subsequent tax years. Contribution Limit plus the Catch-up Limit, if applicable, to either your IRA or your spouse’s Spousal IRA. For calendar year 2009, under the rules explained above, an D. Transfers and Rollovers additional $3,000 may be contributed by each spouse who participated in a 401(k) plan that went into bankruptcy in Transfers to and from Traditional IRAs an earlier year. A transfer of funds to or from your IRA with one trustee or custodian to an IRA with another trustee or custodian Generally, if one spouse has compensation of less than the is not a rollover. It is a tax-free transfer and is not affected Contribution Limit plus the Catch-up Limit, if applicable, for by the one-year waiting period between rollovers discussed the year, a Spousal IRA is more advantageous. below. You may transfer your traditional IRA to UBS Financial Services Inc. by instructing the trustee/custodian of your present traditional IRA to transfer all (or a portion)

33 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About of the traditional IRA balance to UBS Financial Services Inc. Services Inc., but its assets may not be rolled over into your or by executing a Transfer Form that you can obtain from own IRA (unless you are the spouse of the deceased). your Financial Advisor. A transfer incident to divorce is another type of tax-free transfer. If you roll over any part of a distribution from one traditional IRA to another, then you cannot, within a one- If you instead request a withdrawal of an existing IRA that is year period starting on the date on which you receive issued to you rather than to a successor trustee or custodian, that distribution, roll over any part of a later distribution the amount ultimately deposited into the IRA will be from one of those two IRAs to the other, or to any third considered a rollover subject to the rules discussed below. traditional IRA. A rollover of a distribution from an eligible retirement plan to an IRA does not affect your ability to Rollovers to and from Traditional IRAs roll over a distribution from one IRA to another IRA in Generally, rollovers, which are tax-free movements of the same one-year period. money or property, are permitted between two traditional IRAs and between a qualified employer plan, a 403(b) tax- However, if you roll over your distribution from an eligible sheltered annuity or custodial account or a government- retirement plan to a traditional IRA and later roll over such sponsored 457 deferred compensation plan (collectively, amount to another eligible retirement plan, the special these plans are referred to here as “eligible retirement capital gain and averaging treatment available to plan plans”) and a traditional IRA. Subject to applicable participants born before 1936 will not be available (unless restrictions, rollovers from an eligible retirement plan a “conduit” traditional IRA was established and the assets directly to a Roth IRA are also permitted. Distributions of were segregated in this IRA). You are strongly advised to non-deductible contributions from your traditional IRA may consult your personal tax or legal advisors before effecting be rolled over into another traditional IRA, but not to an a rollover or transfer from an eligible retirement plan to a eligible retirement plan. On the other hand, distributions of traditional IRA. after-tax amounts from an eligible retirement plan generally may be rolled over into a traditional IRA or another eligible Distributions from a SIMPLE IRA cannot be rolled over to retirement plan of the same type, as long as certain a traditional IRA until two years have elapsed since you requirements are met by the recipient eligible plan. first participated in your employer’s SIMPLE plan. Salary reduction contributions to a SEP may be rolled over to a You may roll over tax-free all or part of a distribution to traditional IRA after certain tests applicable to the SEP you of cash or property from a traditional IRA or an eligible have been met. retirement plan, as long as you roll over the distribution within 60 days after the day you receive the distribution Rollover of Exxon Valdez Settlement Income. If you (assuming the other rollover requirements are met). are a “qualified taxpayer” and you received “qualified Distributions of property from an eligible retirement plan settlement income,” you may contribute all or a part of the may be sold and the proceeds rolled over tax-free, but the amount received to a traditional IRA. You are a “qualified same property as is distributed from an IRA, and not the taxpayer” if you are (1) a plaintiff in the civil action In re proceeds, must be rolled over to another IRA. Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. Alaska) or (2) the beneficiary of the estate of a plaintiff When you are receiving a distribution from an eligible who acquired the right to receive “qualified settlement retirement plan, the plan administrator will inform you in income” and are also the spouse or immediate relative advance how to complete a direct rollover from the eligible of that plaintiff. “Qualified settlement income” is retirement plan to your traditional IRA. Generally, that generally interest and punitive damage awards which are eligible retirement plan will permit you to instruct otherwise includable in income and which are received in the plan administrator to roll over the distribution directly connection with the civil action In re Exxon Valdez, No. to the traditional IRA. Alternatively, the plan administrator 89-095-CV (HRH) (Consolidated) (D. Alaska) (whether will issue you a check which you can have made payable pre- or post-judgment and whether related to a settlement to UBS Financial Services Inc. (for your benefit), and direct or judgment). The amount contributed cannot exceed you to deliver that check to UBS Financial Services Inc. $100,000 (reduced by the amount of qualified settlement A distribution from an eligible retirement plan which is income contributed to an eligible retirement plan in prior payable to you may still be rolled over within 60 days, tax years) or the amount of qualified settlement income but the plan administrator generally is required to withhold received during the tax year, whichever is less. Such a 20% of the distribution as income tax. In that case, you contribution to your traditional IRA for the year can be may roll over the entire amount of the distribution you made until the due date for filing your return, excluding were eligible to receive, using other monies to replace extensions. Qualified settlement income that you contribute the 20% of the distribution withheld as income tax, or to a traditional IRA will be treated as having been rolled you can roll over only the 80% of the distribution that over in a direct trustee-to-trustee transfer within 60 days you actually received and pay income taxes on the 20% of the distribution. The amount contributed is not included of the distribution withheld. in your income at the time of the contribution and the one-year waiting period between rollovers does not apply. Generally, you cannot roll over a distribution from an eligible retirement plan if it is part of a series of periodic Roth IRA Rollovers and Transfers payments made over your or over your beneficiary’s lifetime The same rules that permit transfers or rollovers of assets or over a period of ten years or more or any distribution from one traditional IRA to another traditional IRA apply made to you on account of hardship. Also, the amount to permit transfers or rollovers from one Roth IRA or of any distribution that is equal to the required minimum designated Roth account in an eligible retirement plan distribution for the year from an eligible retirement plan to a Roth IRA. or an IRA cannot be rolled over. (The plan administrator of your eligible retirement plan should be able to tell you A transfer of funds from your Roth IRA with one trustee or what portion of your distribution can be rolled over to a custodian to a Roth IRA with another trustee or custodian traditional IRA.) If you (a spouse or former spouse) receive is not a rollover. It is a tax-free transfer and is not affected a distribution from an eligible retirement plan that results by the one-year waiting period between IRA rollovers from a qualified domestic relations order, you may be able discussed above. You may transfer your Roth IRA to UBS to roll over all or part of the distribution into a traditional Financial Services Inc. by instructing the trustee/custodian IRA. You may (in a direct rollover) roll over amounts of your present Roth IRA to transfer all (or a portion) of payable to you as a beneficiary under an eligible retirement the Roth IRA account balance to UBS Financial Services Inc. plan even if you are not the surviving spouse of the or by executing a transfer form. participant in the eligible retirement plan. However, the IRA will be treated as an “inherited IRA.” An inherited IRA may Rollover of Military Death Gratuity and SGLI be transferred from another custodian to UBS Financial Payments. If you received a military death gratuity or

34 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About Servicemembers’ Group Life Insurance (“SGLI”) payment You are allowed to convert amounts from a traditional IRA with respect to a death from injury that occurred after or any eligible retirement plan to a Roth IRA even if you October 6, 2001, you can contribute (roll over) all or part are the beneficiary of the IRA owner or plan participant, of the amount received to your Roth IRA. The contribution under the rules described above, modified as follows. Prior will be treated as a qualified rollover contribution and must to 2010, your modified AGI and filing status are used to be made before the end of the one-year period beginning determine if the conversion is permitted. If you are the on the date on which the amount is received or by June surviving spouse of the IRA owner or plan participant, you 17, 2009, whichever is later. The amount that you can roll may elect either to treat the Roth IRA as your own or to over to your Roth IRA can not exceed the total amount maintain the Roth IRA in the name of the deceased IRA of the death gratuity and SGLI payments received, less owner or plan participant with you as the beneficiary. If the amount of the gratuity and SGLI payments that were you are a nonspouse beneficiary, the conversion must be contributed to a Coverdell education savings account made by direct rollover, and you cannot elect to treat the or another Roth IRA. The amount contributed to your Roth IRA as your own. Roth IRA is treated as part of your cost basis (investment in the contract) in the Roth IRA that is not taxable If you are a participant or the beneficiary (spousal or when distributed. The death gratuity or SGLI payments nonspousal) of a participant in an eligible retirement plan, contributed to a Roth IRA are disregarded for purposes of and you elect to have a distribution from the plan paid as the 1-year waiting period between rollovers. a direct rollover to a Roth IRA, the distribution will not be subject to the Internal Revenue Code’s 20% mandatory Rollover of Exxon Valdez Settlement Income. If you withholding. However, even if a direct rollover is elected, are a “qualified taxpayer” and you received “qualified you and the plan administrator may enter into a voluntary settlement income,” you may contribute all or a part of withholding agreement. the amount received to a Roth IRA. The terms “qualified taxpayer” and “qualified settlement income” have the If you are a participant in a qualified employer 401(k) same meanings with respect to a Roth IRA as they do plan, the plan may allow you to make Roth contributions with respect to a traditional IRA. In addition, the rules for under a “qualified Roth contribution program,” pursuant contributing qualified settlement income to a Roth IRA are to Section 402A of the Internal Revenue Code. The the same as the rules for contributing it to a traditional IRA, Roth contributions, and any earnings thereon, will be except that qualified settlement income that is contributed held in a designated Roth account established for you to a Roth IRA will be (1) included in your taxable income under the 401(k) plan. You may roll over to a Roth IRA for the year the qualified settlement income was received all or a portion of any distribution you receive from and (2) treated as part of your cost basis (investment in your designated Roth account. The rollover may be the contract) in the Roth IRA that is not taxable when accomplished by instructing the plan administrator of distributed. the 401(k) plan to make a direct rollover of the desired amount from the designated Roth account to the Roth IRA. Rollover of Amounts Received in Airline Bankruptcy Alternatively, the plan administrator will issue you a check Payments. If you are entitled to an “airline payment” in the desired amount which you can have made payable as defined in Internal Revenue Service Publication 590, to UBS Financial Services Inc. (for your benefit), and direct you may contribute all or any portion of it to a Roth IRA. you to deliver that check to UBS Financial Services Inc. Also, The contribution must be made within 180 days from the if the distribution from the designated Roth account is paid date you received the payment, or before June 23, 2009, directly to you, you may roll over the desired amount to whichever is later. The amount will be treated as a qualified the Roth IRA within 60 days after the day you receive the rollover contribution and the modified AGI limits that distribution. When the distribution is paid directly to you, generally apply to Roth IRA rollovers will not apply to airline the plan administrator generally is required to withhold payments. The rollover contribution is included in income 20% of the taxable portion of the distribution as income to the extent it would be included in income if it were tax, and you must use other monies to replace the amount not part of the rollover contribution. Also, any reduction withheld, if you wish to roll over that amount. Any rollover in the airline payment amount due to employment taxes of a distribution from a designated Roth account is not is disregarded when determining the amount you can counted in applying the “one rollover per year” rule. contribute to your Roth IRA. If you are a participant in a qualified employer plan, and Conversions to a Roth IRA have been making contributions to a deemed Roth IRA You may be able to convert (roll over) amounts from a under that plan pursuant to Section 408(q) of the Internal traditional IRA or any eligible retirement plan to a Roth IRA Revenue Code (as opposed to a designated Roth account if for the year in which the amount is to be so converted: under Section 402A of the Internal Revenue Code), then 1. you are not a married individual filing a separate Federal you may roll over to a Roth IRA all or a portion of any income tax return; and distribution you receive from that deemed Roth IRA. The 2. your modified AGI does not exceed $100,000. rollover must be completed within 60 days after the day you receive the distribution. No tax withholding is required A conversion from a traditional IRA or any eligible on the distribution. The rollover of the distribution is retirement plan to a Roth IRA is like, and subject to the counted in applying the “one rollover per year” rule. same rules (for example, the rollover must be completed within 60 days and required minimum distributions cannot Whether a distribution from a designated Roth account be converted) as, a rollover from one traditional IRA to or a deemed Roth IRA under a qualified employer plan another traditional IRA (except that the one-year waiting is taxable or tax-free is determined under rules which period does not apply). Also, an inherited traditional IRA are similar to the tax rules discussed below for Roth IRA may not be converted. However, unlike a rollover from one distributions. Generally, to the extent that the distribution traditional IRA to another traditional IRA, the amount rolled is taxable, the tax can be deferred by rolling over the over from your traditional IRA or any eligible retirement distribution to a Roth IRA. plan to your Roth IRA will be subject to income tax (except for any non-deductible contributions rolled over from Recharacterization of IRA Contributions the traditional IRA and after-tax contributions rolled over If you make a contribution to one type of IRA for a from an eligible retirement plan), although the 10% early taxable year, you may recharacterize all or any part of distribution penalty tax will not apply to the amount which that contribution as a contribution to a different type of is subject to income tax. You can also convert an amount IRA (assuming you were eligible to make a contribution in your SIMPLE IRA to a Roth IRA but only after the 2-year of that amount to that type of IRA). To recharacterize a period beginning on the date you first participated in your contribution, you must transfer that contribution (or the employer’s SIMPLE Plan. part you want to recharacterize) plus the earnings allocable to that contribution from the one type of IRA to the other.

35 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About Neither tax-free transfers to an IRA nor excess contributions to the 10% early distribution penalty tax exist if the from prior years may be recharacterized. That transfer distribution is made on account of: (i) unreimbursed must be made by the due date (including extensions) for medical expenses in excess of 7.5% of your adjusted filing your income tax return for the taxable year. If you gross income; (ii) health insurance premiums (but only if have timely filed your tax return, you have an automatic you have been unemployed and collecting unemployment 6-month extension to recharacterize a contribution compensation under a Federal or state program); (iii) or a conversion. qualified higher education expenses; (iv) a first-time home purchase ($10,000 lifetime maximum); (v) death; If you have converted an amount from a traditional IRA (vi) disability, (vii) a series of substantially equal periodic to a Roth IRA, you can use this rule to recharacterize the payments based upon the life expectancy (or joint life amount converted (along with the net income attributable expectancy) of you and your beneficiary; (viii) a timely to that amount) back to a traditional IRA. You can also withdrawal of excess contributions; or (ix) an IRS levy. use a recharacterization to avoid a “failed conversion” In addition, the 10% early distribution penalty tax does from a traditional IRA to a Roth IRA (for example, because not apply to a “qualified reservist distribution.” A qualified your modified AGI exceeded $100,000 for the year) by reservist distribution includes a distribution from an IRA re-transferring the amount originally converted back which is made (x) to a military reservist who was ordered to a traditional IRA. In that event, no amount will be or called to active duty for a period in excess of 179 days or includible in your gross income by reason of the original for an indefinite period , and (y)during the period between transfer from the traditional IRA to the Roth IRA. If you the date of the call to duty and the close of the active are recharacterizing a contribution you originally made duty period (as long as the order or call to active duty is to a traditional IRA as made to a Roth IRA, no deduction after September 11, 2001). The 10% early distribution is allowed with respect to the amount transferred from penalty tax also does not apply to a “qualified disaster the traditional IRA. You cannot recharacterize employer recovery assistance distribution,” as defined in Internal contributions under a SEP or SIMPLE to another IRA. Also, Revenue Service Publication 4492-B, made before January if you converted a traditional IRA to a Roth IRA and then 1, 2010. The 10% early distribution penalty tax is based recharacterized that conversion, you may not reconvert upon the amount of your distribution which is includible in that amount during the same tax year or during the your income for tax purposes, and so distributions of non- 30-day period following the recharacterization, if later. deductible contributions, rolled over after-tax contributions or distributions rolled over tax-free to another IRA are not If you want to recharacterize a contribution between subject to the 10% early distribution penalty tax. IRAs, the IRS Regulations require you to provide an irrevocable written notice to the custodian of your IRAs Withdrawal of Economic Stimulus Payments of your election to recharacterize a contribution, and if If you received an economic stimulus payment in 2008 UBS Financial Services Inc. is the custodian of both your that was directly deposited to your traditional IRA, you IRAs, you should contact your Financial Advisor who can can withdraw all or a portion of such payment tax free. The provide you with the requisite form of notice. Also, a amount withdrawn is not included in your income and is recharacterization is not a rollover, so it is not subject to not subject to additional tax or penalty (including the 10% withholding nor is it subject to the rule limiting rollovers early distribution penalty tax). To qualify for this special to once every year. treatment, the withdrawal must be made by the due date for filing your 2008 tax return, including extensions.

E. Taxation of IRA Distributions Roth IRA Distributions If you receive a distribution from your Roth IRA that Traditional IRA Distributions constitutes a “qualified distribution,” none of the amount If you never made any non-deductible contributions or distributed will be included in your income or subject rolled over any after-tax contributions to an employer’s to any 10% early distribution penalty tax. A “qualified qualified plan to a traditional IRA, all amounts distributed distribution” is any distribution that is made after satisfying to you from a traditional IRA will be includible in your a five-year holding period and that is: (i) made on or after gross income in the tax year that you receive them. These the date you attain age 59½; (ii) made to a beneficiary amounts are taxable at ordinary income rates, and neither after your death; (iii) attributable to your being totally and the special lump-sum distribution provisions nor capital permanently disabled; or (iv) made to a qualified first-time gains treatment is available. home buyer ($10,000 lifetime maximum). The five-year holding period begins with the first year for which (not If you have made any non-deductible contributions or necessarily the year in which) a regular contribution or a rolled over any after-tax contributions from an employer’s rollover contribution (including a rollover contribution from qualified plan to any of your traditional IRAs, a portion a designated Roth account under a qualified employer plan) of the subsequent distributions out of any traditional IRA was made to any of your Roth IRAs (including a deemed (whether or not it is the traditional IRA to which you made Roth IRA under a qualified employer plan) ,or the first year the non-deductible contribution or rolled over the after-tax in which an amount was converted to any of your Roth contributions) will be treated as non-taxable, based upon IRAs, and ends on the last day of the fifth year. In addition, the ratio of the sum of the unrecovered non-deductible if you received a distribution that constitutes a “qualified contributions and the after-tax contributions rolled over to disaster recovery assistance distribution,” as defined in the total value at the end of the year of all the traditional Internal Revenue Service Publication 4492-B, before January IRAs owned by you plus any current year distributions. 1, 2010, none of the amount distributed will be subject to the 10% early penalty tax. Individuals age 70½ and older are eligible to make tax- free distributions (up to $100,000 per year) to certain If the distribution is not a qualified distribution and includes tax-exempt charities in 2009 if a charitable contribution any of the earnings in your Roth IRA, those distributed deduction would be otherwise available. If you think earnings will be subject to income tax at the ordinary rates this special distribution provision may be applicable to a (unless you transferred those earnings to another Roth IRA distribution from your IRA, you should consult with your under circumstances such that it qualified as a rollover) and personal tax advisor or attorney. may be subject to the 10% early distribution penalty tax. For this purpose, amounts distributed to you from your Early Distribution Penalty Tax Roth IRA are treated as coming first from any unrecovered Since the purpose of a traditional IRA is to accumulate annual contributions to the Roth IRA (including a deemed funds for retirement, if you are under age 59½ and receive Roth IRA under a qualified employer plan), next from any a distribution from your traditional IRA, the amount amounts transferred or rolled over from another Roth IRA, distributed would be considered an “early distribution” then from any amounts rolled over (converted) from a subject to a 10% early distribution penalty tax. Exceptions traditional IRA, and finally from earnings. Distributions to

36 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About you of annual contributions and amounts so transferred traditional IRA owners and beneficiaries of a deceased or rolled over (converted) are not subject to income tax traditional or Roth IRA owner are not required to take a when you receive them. For these purposes, when an distribution for 2009. If you are a beneficiary receiving amount is rolled over from a designated Roth account distributions over the 5-year period described above, you under a qualified employer plan, the nontaxable portion can waive the distribution for 2009, which effectively of such amount is treated as being part of your annual permits you to take distributions over a 6-year period rather contributions, and the taxable portion of such amount is than a 5-year period. If you received a distribution in 2009 treated as being part of your earnings. that would otherwise be a required minimum distribution, you can roll over that amount into another IRA or eligible If, within the five-year period starting with the year in retirement plan within 60 days of the distribution. In which you converted any amount from a traditional IRA addition, the distribution is not subject to the 20% to a Roth IRA, you take a distribution from that Roth IRA income tax withholding requirement described above. of an amount attributable to the portion of the converted amount from the traditional IRA that you included in Naming a Beneficiary income, you generally must pay the 10% early distribution Your “beneficiary” means the person or persons penalty tax on that distribution. designated as such by you during your lifetime on a form acceptable to, and accepted by, UBS Financial Services Inc. The designation may name persons, estates, F. Required Minimum Distributions trusts or entities to take upon the contingency of survival, and you do not need to obtain the consent of any other Required Minimum Distributions before Death person to your designation of your beneficiaries. (However, If your IRA is a traditional IRA, you must begin, and are if you reside in a community property State and your responsible for, taking a minimum distribution from your spouse is not designated your primary beneficiary as to traditional IRA for the year you attain age 70½ and for at least 50% of your IRA assets, your spouse’s consent each year thereafter that you live (including the year in to your beneficiary designation may be necessary for that which your death occurs). The first minimum distribution designation to be effective.) If your beneficiary designation must be taken by the April 1st following the calendar fails to dispose of all of the assets in your IRA as of the year in which you attain age 70½, although you may time a distribution is to commence after your death, take more than this minimum amount. The amount to be effective if your death occurs after December 31, 2003, distributed each year from your traditional IRA may not be your beneficiary will be your surviving spouse, and if less than the quotient obtained by dividing the value of you do not have a surviving spouse, your beneficiary will your traditional IRA as of the preceding December 31st by be your estate. The last form accepted by UBS Financial the distribution period in the IRS’s Uniform Lifetime Table, Services Inc. before your death will be controlling, whether using your age as of your birthday in that year. If your sole or not it disposes of all of the assets in your IRA, and will Designated Beneficiary (as defined below) is your spouse operate to revoke all such forms previously filed by you. and your spouse is more than ten years younger than you, the distribution period is determined under the IRS’s Joint Designated Beneficiary. A “Designated Beneficiary” and Last Survivor Table, using your age and your spouse’s is any individual who is designated by you as a beneficiary age in that year. Required minimum distributions may not (as described above) who remains as a beneficiary as of be rolled over to another IRA or to an eligible retirement the September 30th of the calendar year following the plan. If the required minimum distribution for any year is calendar year of your death. In some cases, as permitted not distributed, you will be subject to a penalty tax equal to by the IRS Regulations, the individual beneficiary of a trust 50% of the amount that should have been distributed to that is designated by you as a beneficiary can qualify as you but that remained in your IRA. a “Designated Beneficiary” for purposes of determining the required period for distributions from your IRA. If a If your IRA is a Roth IRA, you are not required to take any beneficiary other than an individual or a qualifying trust is minimum distribution from your Roth IRA during your named as your beneficiary, you will be treated as having lifetime. no “Designated Beneficiary” for purposes of determining the required period for distributions from your IRA. Required Minimum Distributions after Death If your IRA is a traditional IRA and your death occurs after Surviving Spouse. If your surviving spouse is the sole you had attained age 70½, the amount in your traditional Designated Beneficiary of your IRA, your spouse may e IRA is required to be distributed to your beneficiary over lect to treat this IRA as if it were the spouse’s own IRA by the longer of either your remaining life expectancy or the redesignating the IRA (in accordance with the procedures remaining life expectancy of your Designated Beneficiary. established by UBS Financial Services Inc.) as an IRA in his If your beneficiary is not a Designated Beneficiary, your or her own name (rather than as a beneficiary IRA). Your traditional IRA is required to be distributed over your surviving spouse will also be deemed to make this election remaining life expectancy. by either contributing any amount to the IRA or by failing to cause a required minimum distribution to be made If your IRA is a traditional IRA and your death occurs within the time period required. before you had attained age 70½ or you have a Roth IRA (and regardless of your age), your IRA is required to Successor Beneficiary. The beneficiaries that you be distributed to your beneficiary: (i) if your Designated originally designate after your death may name a person Beneficiary is other than your surviving spouse, over the or persons (referred to as a successor beneficiary) who remaining life expectancy of your Designated Beneficiary would be entitled to receive any assets remaining in the IRA or by the end of the calendar year containing the fifth upon the death of that original beneficiary. Your original anniversary of your death, if so elected; (ii) if your sole beneficiary must designate any successor beneficiaries on a Designated Beneficiary is your surviving spouse, over the form acceptable to, and accepted by, UBS Financial Services remaining life expectancy of your spouse (beginning by the Inc. If your original beneficiary’s designation fails to dispose end of the calendar year following the year of your death of all of the assets remaining in the IRA, those remaining or by the end of the year you would have attained age 70½ assets will be paid to your beneficiary’s surviving spouse, if later) or by the end of the calendar year containing the then your beneficiary’s estate (for beneficiaries dying fifth anniversary of your death, if so elected; and (iii) if you after December 31, 2003). The designation of a successor do not have a Designated Beneficiary, by the end of the beneficiary will not change the amount of any required calendar year containing the fifth anniversary of your death. minimum distribution, which must still be calculated with respect to your original beneficiary. Waiver of 2009 Required Minimum Distributions For the 2009 calendar year, the requirement to take a After Rollover by Nonspouse Beneficiary minimum distribution has been waived. In other words, As discussed above, if you are a nonspouse beneficiary of

37 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About an account in an eligible retirement plan and you roll over and procedures then in effect. However, UBS Financial a distribution from that account into an IRA, the IRA will Services Inc. may condition its approval upon allowing be treated as an inherited IRA. The minimum distribution a particular investment to be acquired for, or held in, requirements of the Internal Revenue Code pertaining to your IRA upon the receipt of a written agreement from distributions in the event that the plan participant dies you containing such terms as UBS Financial Services Inc. before or after his or her required beginning date and deems appropriate. Furthermore, UBS Financial Services pertaining to the minimum distribution requirements that Inc. reserves the right to revoke its decision to allow any would apply to you as the beneficiary under the eligible particular investment to be held in your IRA upon notice to retirement plan apply to the inherited IRA. Thus, if the plan you. UBS Financial Services Inc. will have no liability to you participant had died before his or her required beginning if it revokes its decision, and you will be required within 30 date under the plan and the 5-year distribution rule in the days thereafter to instruct UBS Financial Services Inc. to sell, Internal Revenue Code had applied to you under the plan, transfer or distribute the particular investment. If you fail to then the 5-year distribution rule applies to the inherited give any such instructions, UBS Financial Services Inc. may IRA, so that all assets of the IRA must be distributed by distribute the investment to you. the end of the 5th calendar year following the year of the plan participant’s death (subject to the waiver of any As the income from, and gain or loss on, each investment required minimum distributions for the 2009 calendar you select for your IRA will affect the value of the IRA, year, as described above). If the life expectancy distribution the growth in value of your IRA cannot be guaranteed or rule in the Internal Revenue Code had applied to you projected. under the plan (or if you had elected to use this rule to determine how much you could roll over to an IRA), then Sweep Fund. You may select a sweep fund (from those the required minimum distribution from the IRA must be available to your IRA) into which uninvested cash balances determined using the same distribution period as would in your IRA will automatically be invested. If you fail to have been used under the plan if the amount you had elect a sweep option, UBS Financial Services Inc. may rolled over to the IRA had remained in the plan. Similarly, automatically sweep uninvested cash balances into a sweep if the plan participant had died on or after his or her option consistent with the other agreements between you required beginning date, the required minimum distribution and UBS Financial Services Inc. then in effect. under the IRA for any year after the year of death must be determined using the same distribution period as would Collectibles. You may not invest any part of your IRA have been used under the plan if the amount you had in “collectibles,” which include artworks, rugs, antiques, rolled over to the IRA had, instead, remained in the plan. metals, gems, stamps, alcoholic beverages or , with the exception for certain gold, silver and platinum coins, Requesting Distributions any coins issued under the laws of any State and certain UBS Financial Services Inc. will not make any distribution, gold, silver, platinum or palladium bullion if such bullion including any required minimum distribution, to you is in the physical possession of UBS Financial Services Inc. or your beneficiary unless you or your beneficiary, as If you invest any part of your IRA in a collectible, the cost applicable, requests that distribution in accordance with of that investment is treated as a distribution from the IRA. UBS Financial Services Inc.’s procedures. Your beneficiary must furnish UBS Financial Services Inc. with such Prohibited Transactions. The tax exempt status of your instruments and documents as UBS Financial Services IRA will be revoked if you engage in any “prohibited Inc. requests to establish the beneficiary’s right to assets transaction” described in Section 4975 of the Internal in your IRA, as well as (in a manner acceptable to UBS Revenue Code with a “disqualified person,” which is Financial Services Inc.) any elections desired, including an defined as including yourself, your beneficiary, certain election to establish separate accounts with respect to the members of your family and entities (corporations, IRA. UBS Financial Services Inc. has no duty, obligation or partnerships, trusts or estates) in which you or they have responsibility to remind you or your beneficiary as to these a substantial interest. Generally, a prohibited transaction distribution obligations, nor does UBS Financial Services Inc. involving an IRA is any act or transaction involving self- have any duty to calculate the amount that must actually dealing. Some examples of prohibited transactions are: be distributed from the IRA at any time. As a result, UBS 1. Selling or leasing of any property between your IRA Financial Services Inc. will not be liable to you or your and a disqualified person. beneficiary for any tax or penalty imposed for failing to 2. Transferring any property to/from a disqualified person receive any required minimum distribution. to/from your IRA. 3. Using your IRA or any of its assets to benefit a disqualified person, such as the purchase of a vacation G. Investment of Contributions home for yourself. 4. A disqualified person borrowing any money from your Investments. Unless you enter into a separate written IRA or using your IRA as security for a loan contractual arrangement with UBS Financial Services Inc. to a disqualified person. providing otherwise, you control the investment and reinvestment of the assets in your IRA. Your directions as If you engage in a prohibited transaction with your IRA, the to the investment of your account are transmitted directly entire fair market value of your IRA as of the January 1st in by you (or a person properly authorized by you) to your which such prohibited transaction takes place is treated as Financial Advisor, who acts as your agent in carrying distributed to you. That entire amount is included in your out these investment instructions. However, the Internal income for income tax purposes and may also be subject Revenue Code provides that you may not invest any part to the 10% early distribution penalty tax if you have not of your IRA in life insurance. yet attained age 59½.

Assets of your IRA (including annuity or insurance contracts In addition, if you use all or any part of your interest in held in the IRA) will be held by UBS Financial Services Inc. your IRA as security for a loan to yourself, the portion of in its name for your benefit. your IRA used as security for the loan will be treated as distributed to you and taxed as ordinary income in the year All contributions to your IRA can be invested and reinvested in which the money is borrowed. If you are under age 59½ in marketable securities that are traded by, or obtainable the amount treated as distributed will also be subject to through, UBS Financial Services Inc. either on a recognized the 10% early distribution penalty tax. exchange, such as the New York or American Stock Exchange, or “over-the-counter” or in shares of open-end Your Investment Responsibilities. As you control regulated investment companies. Also, you may invest and direct the investment of the assets in your IRA, you your IRA in other investments UBS Financial Services Inc. are responsible for determining the legal consequences in its sole discretion agrees to hold pursuant to its policies (including the income tax and 10% early distribution

38 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About penalty tax consequences) of any investment in your IRA. transactions involving your IRA, you should obtain and rely For example, it is your responsibility to determine whether upon the advice of your personal tax advisor or attorney. any investment or transaction in or involving your IRA will result in a prohibited transaction or whether an investment Neither UBS Financial Services Inc. nor its affiliates will constitutes a collectible. have any liability to you or to your beneficiary for any income taxes, penalty taxes or other damages which may result from you or your beneficiary’s failure to H. Fees and Expenses of the IRA follow these technical rules, or failing to advise you (or advising you incorrectly) as to the tax treatment of any Amount of Fees. Generally, all of the fees applicable transaction involving your IRA. Furthermore, neither UBS to your IRA are described in detail in the accompanying Financial Services Inc. nor any of its affiliates assumes any documentation. These fees may be changed upon 30 days’ responsibility for the deductibility of any contributions to notice to you. your traditional IRA or the taxation of distributions of any amounts from your traditional IRA or Roth IRA. To the Paying Fees. The Annual Maintenance Fee is charged for extent that any such tax, penalty or damages are incurred, any calendar year (or portion thereof) during which you they will be charged against your IRA as an expense. have an IRA with UBS Financial Services Inc. You may pay this fee directly or have it deducted from your IRA. The fee If UBS Financial Services Inc. terminates your IRA and/ will be charged and deducted automatically from your IRA or distributes assets in your IRA and you do not elect not account annually and the amounts charged will be shown to have the required tax withheld from such distribution, on your statement. then you must instruct UBS Financial Services Inc. as to which assets should be sold to permit the withholding of A transfer/termination fee is also charged when all or all taxes required to be withheld. If you do not timely give substantially all of the assets in your IRA are transferred UBS Financial Services Inc. such instructions, you direct UBS to a successor custodian or trustee or distributed to you. Financial Services Inc. to liquidate whole or fractional shares However, the termination fees are not charged when the of the largest mutual fund asset by value held in the IRA to termination of the IRA is attendant to the payment of pay any taxes due and further liquidations, if required, will a total distribution after you reach age 59½, are totally be done using the next largest mutual fund position. disabled or die. Form 1099R. UBS Financial Services Inc. will report all Fees which are deducted from your IRA will be paid from distributions to the IRS on Form 1099R. This report will the cash, money market shares and/or other sweep option include a description of the distribution (e.g., early, normal, in your IRA. If the cash, money market sweep fund and/ etc.). For reporting purposes, a direct transfer of assets or other sweep fund in your IRA are not sufficient to pay to a successor custodian or trustee is not considered a the fees, UBS Financial Services Inc. will sell mutual funds distribution. Whenever you request a distribution, you are in your account necessary to pay the fees on the second required to indicate the reason for that distribution on the Monday in March each year. UBS Financial Services Inc. will request form, as well as any exceptions which may apply not exercise discretion in selecting which mutual funds but to the 10% early distribution penalty tax. will start with the largest positions that are not subject to a back end sales charge and continuing with successively Form 5498. UBS Financial Services Inc. will report to smaller positions. If necessary, UBS will next sell the largest the IRS on Form 5498 the amount of any contribution, positions that could be subject to a back end sales load rollovers, conversions or recharacterizations made to an continuing with successively smaller positions as necessary IRA during a calendar year, as well as the tax year for and lastly, will sell the largest position in no-load funds, which the contribution is made. continuing with successively smaller positions as necessary. Tax Forms You Must File. You must file Form 5329 with Expenses. UBS Financial Services Inc. may also charge your the IRS for each tax year during which the contribution IRA for any of its reasonable out-of-pocket costs and an limits are exceeded, an early distribution subject to the appropriate administrative expense arising from unforeseen 10% early distribution penalty tax occurs, or less than the situations (such as taxes or penalties imposed upon your required minimum amount is distributed from your IRA. If IRA or legal expenses incurred in defending claims against, you make a non-deductible contribution to your traditional or to resolve the claims of competing beneficiaries for, IRA, you must file Form 8606 with your income tax return. your IRA), as well as for expenses incurred due to the If you fail to file Form 8606, a $50 penalty per failure may maintenance of certain investments (for example, for the be imposed. storage of Eagle coins or the holding of bullion). In most cases, however, UBS Financial Services Inc. will inform you Withholding. Federal income tax will be withheld from before those expenses are to be incurred. the distributions you receive from a traditional IRA or Roth IRA unless you elect not to have income tax withheld. In You will incur normal commissions and fees on purchases addition, if you reside in a State that requires State income and sales of securities consistent with the accompanying tax to be withheld, distributions from your traditional agreements to this account. IRA or Roth IRA may also be subject to State income tax withholding, absent any permitted election. Generally, Also, you may incur various fees and costs in connection Federal income tax on non-periodic distributions is withheld with your IRA, such as legal fees when UBS Financial at a flat 10% rate. If IRA distributions are payable outside Services Inc. requires you to furnish it with a legal opinion the United States, however, special withholding rules will as to certain actions you wish to take or instructions you apply. Your election not to have any income tax withheld wish to give. will not affect your liability for income tax on the taxable amount of any distribution.

I. Tax Matters Unrelated Business Taxable Income. The income earned in your IRA is generally exempt from Federal income taxes Complexity of Tax Rules. The Internal Revenue Code and will not be taxed until distributed to you unless you and the IRS Regulations contain numerous complex and make an investment that results in “unrelated business technical rules relating to IRAs, including rules as to the taxable income.” Unrelated business taxable income deductibility of contributions to an IRA, early distributions, can result, for example, from an investment in a limited required minimum distributions, rollovers, prohibited partnership interest in a partnership that is debt-financed transactions and the removal of excess contributions. UBS or that actively conducts a trade or business or as a result Financial Services Inc. strongly recommends that if you of investing in a mutual fund that has REMIC residual have any questions as to the tax treatment of any specific interests as assets.

39 About Your UBS Account: Disclosure Statement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Statement Disclosure Account: UBS Your About If your IRA derives unrelated business taxable income which J. Termination of the IRA for any year exceeds $1,000, then unrelated business income tax will be due. You may terminate this IRA at any time by sending a written notice of such termination, which must be signed Tax Returns for Your IRA. If the investments in your IRA by you and must include the UBS Financial Services Inc. generate $1,000 or more of unrelated business taxable account number of your IRA, to: income for any year, a tax return, Form 990-T, Exempt Organization Business Income Tax Return, must be filed. Retirement Services – Manager If a Form 990-T is required to be filed, then an employer UBS Financial Services Inc. identification number (EIN) must be obtained from the IRS 1200 Harbor Blvd. (applications for an EIN are made by filing Form SS-4 with Weehawken, NJ 07086-6791 the IRS) for your IRA. This unrelated business income tax is an expense of your IRA and should be paid from your IRA. The termination of your IRA will not terminate any of your obligations under the Custodial Agreement or the Client In certain other circumstances, it may be advantageous Relationship Agreement, including your obligation for to file a tax return or a tax claim in order to recover a tax the payment of fees. Your IRA will also terminate upon attributable to an investment by your IRA. For example, if the date when all of the assets in your IRA have been certain capital gains taxes are paid by a mutual fund, or a distributed or transferred. If you transfer your IRA tax is withheld on a dividend from a foreign stock, a refund to another custodian and that custodian fails or refuses to of that tax may be obtainable by filing an appropriate accept any asset in your IRA (such as non-traded stocks or claim. You are responsible for determining whenever partnership interests), then UBS Financial Services Inc. will the filing of a tax return or tax claim as a result of an distribute those assets directly to you, and you may investment in your IRA is required or advantageous, and be liable for income and penalty taxes on that distribution. it is your responsibility to have the tax return or tax claim prepared at your expense (other than a return for a refund UBS Financial Services Inc., may resign as the custodian with respect to an investment in a regulated investment of your IRA upon 30 days’ prior written notice to you. If company or real estate investment trust). For example, if UBS Financial Services Inc. appoints a successor custodian one or more investments in your IRA generate over $1,000 upon its resignation, you will be treated as accepting the of unrelated business taxable income for any year, you are successor custodian’s appointment unless you notify UBS required to arrange for the preparation of IRS Form 990-T Financial Services Inc. within 30 days of being notified of (as well as any required State or local tax returns). Any tax, UBS Financial Services Inc.’s resignation that you reject the penalties or interest that may be assessed against your IRA appointment of that successor. If UBS Financial Services or UBS Financial Services Inc. in its capacity as custodian Inc. does not appoint a successor custodian or you reject of your IRA as a result of your failure to timely file any tax the successor appointed by UBS Financial Services Inc., return will be charged as an expense of your IRA. then you must appoint a successor custodian for your IRA within that 30-day period. If you fail to appoint a successor Also, if any tax return or tax claim relating to your IRA custodian within such 30-day period, UBS Financial Services requires the signature of UBS Financial Services Inc. as Inc. may distribute the balance in your IRA to you, and custodian of your IRA, you should arrange to have the you may be liable for income and penalty taxes on that original and one copy of the required return or claim distribution. See Section I “Tax Matters” for additional tax delivered to your Financial Advisor at least two weeks withholding information. before the date that tax return or tax claim is due, accompanied by a stamped envelope addressed to the If you remove UBS Financial Services Inc. as custodian of taxing authority to which you wish the return or claim your IRA or transfer your IRA for any reason, UBS Financial mailed. However, UBS Financial Services Inc. will not be Services Inc. may deduct and withhold from the amount reviewing any tax return or tax claim to determine whether being distributed or transferred any unpaid fees and it is complete or correct. If any tax is to be paid with any administrative expenses, as well as the fees attributable tax return, you should also provide your Financial Advisor to any transfer or distribution. with instructions regarding such payment. Any refunds of tax obtained as a result of the filing of any tax refund claim will be credited to your IRA when received by UBS Financial Services Inc.

Saver’s Tax Credit. Eligible individuals may receive a “Saver’s Tax Credit” for contributions to a traditional IRA or Roth IRA. The credit (which is in addition to any tax deduction) is limited to a percentage (between 50% and 10% depending on your modified adjusted gross income and filing status) of your IRA contribution up to a maximum of $2,000 for each taxable year ($4,000 for joint filers), and may not exceed $1,000 for a year ($2,000 for joint filers). This IRA contribution amount is reduced by certain IRA distributions made during the year. The credit is based upon your modified adjusted gross income, and, for 2009, is available for joint filers with modified adjusted gross income less than or equal to$55,500, for heads of household with income less than or equal to $41,625 and for all other filers with income less than or equal to$27,750. These income limits are adjusted after 2009 for inflation. The credit is available only to individuals age 18 and older who are not students and who are not individuals for whom a dependency exemption is allowed to another taxpayer. You may direct that any federal income tax refund attributable to the Saver’s Tax Credit be directly deposited into your IRA.

40 Custodial Agreement for Traditional or Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About Roth Individual Retirement Accounts

The Client named in the Adoption Agreement desires to requirements and limitations set forth below in this establish or continue an individual retirement plan (an Article II, a Client may make Regular Contributions, “IRA”), as defined in Section 7701 (a)(37) of the Internal Qualified Rollover Contributions and Direct Transfers Revenue Code of 1986, as amended (the “Code”), and the to this Roth IRA. The Client assumes all responsibility Client has designated this IRA in the Adoption Agreement for determining, and represents to the Custodian, as either a traditional IRA described in Section 408(a) of that (a) any such contribution or transfer complies the Code (a “traditional IRA”) or as a Roth IRA described in with all of the requirements, and does not exceed Section 408A(b) of the Code (a “Roth IRA”). any of the limitations, set forth in Sections 2.2, 2.3, 2.4 and 2.5 below, and (b) if the Client makes any UBS Financial Services Inc, as custodian (the “Custodian”), contribution to the Roth IRA that is intended to be has given the Client the Disclosure Statement as required a Qualified Rollover Contribution, such amount is a under Section 408(i) of the Code. The Client acknowledges “Qualified Rollover Contribution,” as such term is having received and read the Disclosure Statement and all defined in Section 2.7(f). of the documents referred to in the Disclosure Statement. 2.2 The maximum amount of Regular Contributions The Client and the Custodian, by execution of the made on behalf of the Client to this Roth IRA, Adoption Agreement made a part hereof, agree as follows: when aggregated with the Regular Contributions made on behalf of the Client to all other Roth ARTICLE I – Traditional IRA Contribution Limit IRAs maintained for the Client’s benefit, for any 1.1 If the Client has designated this IRA as a Traditional taxable year shall not exceed the lesser of (x) the IRA in the Adoption Agreement, then unless the Applicable Amount or (y) the Client’s Compensation contribution is a rollover contribution, as described for such year. However, such maximum amount for in Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), any taxable year shall be reduced (but not below 403(b)(10), 408(d)(3) or 457(e)(16) of the Code (“ $0) by the greater of the following amounts: (a) Rollover Contribution”), or an employer contribution the amount which bears the same ratio to such made in accordance with the terms of a Simplified maximum amount as (i) the excess of (I) the Client’s Employee Pension, as described in Section 408(k) of Modified AGI for such year over (II) the Clients the Code (“SEP Contribution”), (i) contributions to Applicable Dollar Amount for such year bears to this Traditional IRA may only be made by a Client (ii) $15,000, or $10,000 if the Client is married who has not attained age 70½ by the end of the or (b) the amount of Regular Contributions made taxable year for which the contribution is made and on behalf of the Client for that year to all IRAs (ii) total cash contributions on behalf of the Client maintained for the Client other than Roth IRAs. are limited to: The amount computed in (a) is rounded down to the next multiple of $10, and shall not reduce the (a) $3,000 for any taxable year beginning in 2002 maximum amount of Regular Contributions below through 2004; $200, unless it reduces such amount to zero. (b) $4,000 for any taxable year beginning in 2005 through 2007; and Contributions to a SIMPLE IRA, a Coverdell education (c) $5,000 for any taxable year beginning in 2008 savings account (that is, an account described in and years thereafter. Section 530 of the Code) or a SEP (that is, simplified employer pension described in Section 408(k) of the After 2008, the limit will be adjusted by the Code) are not taken into account in determining the Secretary of the Treasury for cost-of-living increases amount in (b). under Section 219(b)(5)(C) of the Code. Such adjustments will be in multiples of $500. 2.3 The Client may not make a Qualified Rollover Contribution or a Direct Transfer of any amount to To the extent permitted by the Code, the Client this Roth IRA from an IRA which is not a Roth IRA may make contributions to this Traditional IRA that or from a plan account that is not a designated are fully-deductible, partially-deductible or non- Roth account if, for the taxable year in which such deductible for Federal income tax purposes. amount is distributed or transferred from such non-Roth IRA or account that is not a designated 1.2 In the case of a Client who is age 50 or older by the Roth account, (a) the Client is a married individual end of the taxable year, the annual cash contribution and files a separate federal income tax return, (b) limit in Section 1.1 is increased by: the Client is a married individual and together the Client and the Client’s spouse have Modified AGI (a) $500 for any taxable year beginning in 2002 in excess of $100,000 or (c) the Client is not a through 2005; and married individual and has Modified AGI in excess (b) $1,000 for any taxable year beginning in 2006 of $100,000. For taxable years beginning after and years thereafter. 2009, the limits in this Section 2.3 do not apply to Qualified Rollover Contributions. 1.3 Except in the case of a Rollover Contribution or SEP Contribution, the Custodian will not knowingly 2.4 A Regular Contribution to an IRA which is not a accept contributions to the Traditional IRA from or Roth IRA may be recharacterized and transferred on behalf of the Client exceeding the sum of the to this Roth IRA, pursuant to Section 408A(d)(6) of dollar limitations described in Sections 1.1 and 1.2 the Code and the Treasury regulations thereunder for such year, nor shall the Custodian knowingly including Treasury Regulation Section 1.408A-5, accept any contribution other than in cash. as a Regular Contribution subject to the limits in Section 2.2 above for the taxable year for which ARTICLE II – Roth IRA Contribution Limit such Regular Contribution was made to such non- 2.1 If the Client has designated this IRA as a Roth IRA Roth IRA. in the Adoption Agreement, then subject to the

41 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About 2.5 The Custodian will not knowingly accept any Regular (d) “Direct Transfer” shall mean a transfer from the Contribution to the Roth IRA from or on behalf of trustee or custodian of one IRA directly to the the Client in excess of the Applicable Amount, nor trustee or custodian of another IRA. A Direct shall the Custodian knowingly accept any Regular Transfer shall not be treated as a Qualified Contribution other than in cash. Rollover Contribution or a Regular Contribution. (e) “Modified AGI,” for any taxable year, shall mean 2.6 For purposes of applying this Article II (and the adjusted gross income as determined under definition of “Applicable Dollar Amount” in Section Section 219(g)(3) of the Code, except that such 2.7(a)), a Client shall not be treated as married for term shall not include (a) any amount included a taxable year if the Client and his or her spouse in federal adjusted gross income under Section have lived apart at all times during that taxable year, 408A(d)(3) of the Code as a result of a Qualified and file separate federal income tax returns for that Rollover Contribution or a Direct Transfer to taxable year. a Roth IRA from an eligible retirement plan other than a Roth IRA, or (b) for any taxable 2.7 The following definitions shall apply for purposes of year beginning after December 31, 2004, for this Article II: purposes of Section 2.3, any amount included in gross income for federal income tax purposes (a) “Applicable Amount,” shall mean (a) if the by reason of a distribution required to be made Client is under age 50 at the end of the year, from an IRA under Section 408(a)(6) or (b)(3) of $3,000 for any taxable year beginning in 2002 the Code. through 2004, $4,000 for any taxable year (f) “Qualified Rollover Contribution” shall mean beginning in 2005 through 2007 and $5,000 for a rollover contribution of a distribution from any taxable year beginning in 2008 and years an IRA that meets the requirements of Section thereafter, and (b) if the Client is age 50 or older 408(d)(3) of the Code, and for any taxable year at the end of the year, $3,500 for any taxable after December 31, 2005, shall also include year beginning in 2002 through 2004, $4,500 a rollover contribution from a designated for any taxable year beginning in 2005, $5,000 Roth account described in Section 402A of for any taxable year beginning in 2006 through the Code; and for any taxable year beginning 2007 and $6,000 for any taxable year beginning after December 31, 2007, shall also include in 2008 and years thereafter. After 2008, the a rollover from an eligible retirement plan limits described in (a) and (b) will be adjusted by described in Section 402(c)(8)(B) of the Code. the Secretary of the Treasury for cost-of-living Notwithstanding the foregoing, the one-rollover- increases under Section 219(b)(5)(C) of the per-year rule of Section 408(d)(3)(B) shall not Code. Such adjustments will be in multiples of apply if the Qualified Rollover Contribution is $500. from an IRA other than a Roth IRA. (b) “Applicable Dollar Amount” shall mean, for any (g) “Regular Contribution” shall mean a taxable year, (a) $150,000 if the Client is married contribution other than a Qualified Rollover and files a joint federal income tax return for Contribution that does not exceed the lesser that year, (b) zero if the Client is married and of the Applicable Amount or the Client’s files a separate federal income tax return for Compensation. that year, or (c) $95,000 otherwise. (c) “Compensation” shall mean wages, salaries, ARTICLE III – Exclusive Benefit and Nonforfeitable professional fees, and any other amounts Interest derived from or received for personal services 3.1 The IRA is established for the exclusive benefit actually rendered (including, but not limited to, of the Client or his or her Beneficiaries. commissions paid to salesmen, compensation for services on the basis of a percentage of 3.2 The Client’s interest in the balance in the IRA is profits, commissions on insurance premiums, nonforfeitable at all times. tips, and bonuses). Compensation includes “earned income,” as defined in Section 401(c) ARTICLE IV – Investments (2) of the Code, reduced by any deduction taken 4.1 Unless otherwise agreed to in writing, the Client by the Client for contributions made to a self- shall direct the investments in the IRA. Such employed retirement plan, and determined by investments may be made in: applying Section 401(c)(2) of the Code as if the (a) marketable securities that are traded by, or term “trade or business” used in Section 1402 obtainable through, the Custodian either “over- of the Code included service described in Section the-counter” or on a recognized exchange; 401(c)(6) of the Code. “Compensation” also (b) shares of open-ended regulated investment includes any amount includible in the Client’s companies; gross income for federal income tax purposes (c) and other investments the Custodian in its sole under Section 71 of the Code with respect to discretion agrees to hold pursuant to its policies a divorce or separation instrument described in and procedures then in effect. Section 71(b)(2)(A) of the Code. Compensation does not include (a) amounts not included in The Custodian may condition its decision to allow an the Client’s gross income for federal income tax investment to be held in the IRA upon the receipt of purposes, (b) amounts derived from or received an agreement from the Client containing such terms, as earnings or profits from property (including, conditions and representations and warranties as the but not limited to, interest and dividends), or (c) Custodian shall determine. The Custodian’s decision amounts received as a pension or annuity or as to permit the holding of any investment in the IRA deferred compensation. If, for any taxable year shall not constitute approval of the investment the Client is married and files a joint federal merits of the investment nor a judgment as to the income tax return, and the Compensation of the prudence or advisability of the investment. Client’s spouse is greater than the Client’s own Compensation, then the Client’s Compensation The Custodian reserves the absolute right to revoke for such year shall be increased by the excess of its decision to permit the holding in the IRA of any (i) the Compensation of the Client’s spouse for investment at any time and for any reason, and such year over (ii) the aggregate amount, for the Custodian shall have no liability for any loss, such year, of such spouse’s regular contributions damage or expense suffered or incurred by the to all Roth lRAs and deductible contributions to Client by reason of the revocation of the Custodian’s all IRAs which are not Roth IRAs. decision. If the Custodian notifies the Client that

42 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About it revokes its decision, then within thirty (30) days such limitations and will not constitute a prohibited after such notice is given the Client shall instruct transaction. The Custodian shall have no liability to the Custodian as to the liquidation, distribution, the Client for any tax, penalty, loss or liability as a transfer or other disposition of the investment to result of failure to comply with such rules. which the revocation of the Custodian’s decision applies. If the Client fails to provide the Custodian ARTICLE V – Contributions with instructions within such thirty-day period, the 5.1 The Custodian may accept contributions from or on Client shall be deemed to have elected to receive an behalf of the Client, and unless otherwise specified in-kind distribution of such investment. by the Client, the Custodian shall assume that all contributions received are attributable to the taxable 4.2 No part of the assets in the IRA may be invested year in which they are received by the Custodian. in life insurance contracts, nor may the assets in the IRA be commingled with other property except 5.2 If this IRA is a Traditional IRA and the Client elects in a common trust fund or common investment to transfer any contributions for a taxable year from fund (within the meaning of Section 408(a)(5) this Traditional IRA to a Roth IRA (in accordance with of the Code). Section 408A(d)(3)(D) of the Code), the Client shall notify the Custodian of such fact and shall specify 4.3 No part of the assets in the IRA may be invested in the amount of any earnings allocable thereto. collectibles (within the meaning of Section 408(m) of the Code). 5.3 No contributions to this IRA will be accepted under a SIMPLE IRA plan established by any employer 4.4 The Client may select a sweep option (from those pursuant to Section 408(p) of the Code. Also, available to the IRA) into which uninvested cash no transfer or rollover of funds attributable to balances in the IRA will be invested and reinvested. contributions made by a particular employer under If a Client fails to elect a sweep option, the its SIMPLE IRA plan will be knowingly accepted from Custodian may automatically sweep uninvested a SIMPLE IRA, that is, an IRA used in conjunction cash balances into a sweep option consistent with with a SIMPLE IRA plan, prior to the expiration of the the other agreements then in effect between the 2-year period beginning on the date the Client first Client and Custodian. participated in that employer’s SIMPLE IRA plan.

4.5 All investments in the IRA shall be made or directed 5.4 If during a taxable year the Client contributes an by the Client in such amounts and at such times amount that exceeds the amount which may be as the Client (or a person authorized by the Client) contributed by the Client for such year, then the shall instruct and shall be made through the Client shall notify the Custodian in writing that an facilities of the Custodian. The Custodian shall not excess contribution has been made, stating the have any duty to question the Client’s investment reason therefor, the taxable year of the Client to instructions or to render any advice to the Client which the excess relates and the amount of the regarding the value of any investment or to make excess (together with earnings attributable thereto recommendations regarding the advisability of if necessary), and the Custodian shall distribute to investing in, holding or selling any investment, the Client in an amount of cash, or property with a unless otherwise agreed to in writing by the fair market value at the time of distribution, equal to Custodian. Not having any discretionary authority the sum of such excess and the earnings attributable over the investment of the assets in the IRA or any thereto if required. Any excess contributions that responsibility for rendering any investment advice arise and that do not exceed the maximum amount with respect to the assets in the IRA, the Client which may be contributed under Section 219 of the agrees that the Custodian shall not be liable for Code may be treated by the Client as a contribution any loss which may result from the investment in the then current or a succeeding taxable year of any asset in the IRA. instead of being so distributed; provided, however, that in such event, the Client may still be liable for 4.6 The Custodian shall effect all investment directions taxes and penalties between the year in which the hereunder and execute any purchases and sales of excess contribution was actually made and the year investments for, and on behalf of, the IRA. in which such amount is subsequently treated as having been contributed. Any contribution made The Custodian shall maintain records of any by a Beneficiary other than a surviving spouse to transactions effected by it. The brokerage account the IRA will be an excess contribution. maintained in connection herewith shall be in the name of the Custodian for the benefit of the Client. ARTICLE VI – Distributions All assets of the IRA (including annuity or insurance 6.1 Notwithstanding any provision of this IRA to the contracts held in the IRA) shall be registered in contrary, the Client acknowledges that he or she the name of the Custodian or of a nominee (and is required to ensure that the distribution of his or the same nominee may be used with respect to her interest in this IRA is made in accordance with assets of other investors whether or not held under the requirements under Section 408(a)(6) of the agreements similar to this one or in any fiduciary Code and the Treasury Regulations thereunder, capacity whatsoever); provided however, that the the provisions of which are herein incorporated Custodian may hold any security in bearer form by reference. If distributions are made from an or by or through a central clearing corporation annuity contract purchased from an insurance maintained by institutions active in the national company, distributions thereunder must satisfy the securities markets. requirements of Temporary Treasury Regulation Section 1.401 (a)(9)-6T Q&A 4, rather than 4.7 The Client shall have the sole responsibility to paragraphs (b), (c) and (d) below and Sections determine whether the acquisition, holding or 6.2, 6.3, 6.4 and 6.5, as applicable. disposition of any asset in the IRA (a) complies with the limitations applicable to investments by individual 6.2 (a) If this IRA is designated as a Traditional IRA retirement accounts, including, without limiting the in the Adoption Agreement, then the Client generality of the foregoing, the limitations contained acknowledges that the Client is responsible for in Sections 4.2 and 4.3 hereof, or (b) is a “prohibited ensuring that the entire interest in all individual transaction” under Section 4975 of the Code. retirement accounts (including this Traditional The Client warrants that any investment or other IRA) (other than a Roth IRA) must begin to be instructions given to the Custodian will comply with distributed by the April 1st following the end of

43 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About the calendar year in which the Client attains age spouse as the sole Designated Beneficiary, 70½ (the “Required Beginning Date”) over the such spouse’s remaining life expectancy for life of the Client or the lives of the Client and a year is the number in the Single Life Table his or her Designated Beneficiary. For purposes corresponding to such spouse’s age in the year. of this Section 6.2, all of the Client’s IRAs, In all other cases, remaining life expectancy for including this IRA, shall be treated as a single a year is the number in the Single Life Table IRA and the required minimum distributions corresponding to the Beneficiary’s or Client’s calculated for this IRA may be withdrawn from age in the year specified in paragraph (a), (b) or another IRA of the Client in accordance with (c) and reduced by 1 for each subsequent year. Treasury Regulation Section 1.408-8 Q&A 9, as determined by the Client. 6.4 If this IRA is designated as a Roth IRA in the (b) The amount to be distributed each year, Adoption Agreement, no amount is required to be beginning with the calendar year in which the distributed prior to the death of the Client. If this Client attains age 70½ and continuing through IRA is designated as a Roth IRA in the Adoption the year of death, shall not be less than the Agreement and the Client dies or if this IRA is quotient obtained by dividing the value of the designated as a Traditional IRA in the Adoption IRA (as determined under Section 6.5) as of the Agreement and the Client dies before the Required end of the preceding year by the distribution Beginning Date, his or her entire interest in this IRA period in the Uniform Lifetime Table in Treasury is required to be distributed at least as rapidly as Regulation Section 1.401(a)(9)-9 Q&A 2, using follows: the Client’s age as of his or her birthday in the year. However, if the Client’s sole Designated (a) If the Designated Beneficiary is someone other Beneficiary is his or her surviving spouse and than the Client’s surviving spouse, the entire such spouse is more than 10 years younger interest is required to be distributed, starting than the Client, then the distribution period is by the end of the calendar year following the determined under the Joint and Last Survivor calendar year of the Client’s death, over the Table in Treasury Regulation Section 1.401(a) remaining life expectancy of the Designated (9)-9 Q&A 3, using the ages of the Client’s Beneficiary, with such life expectancy and spouse’s birthdays in the year. determined using the age of the Designated (c) The required minimum distribution for the year Beneficiary as of his or her birthday in the year the individual attains age 70½ can be made following the year of the Client’s death, or, if as late as April 1st of the following year. The elected, in accordance with paragraph (c) below. required minimum distribution for any other (b) If the Clients sole Designated Beneficiary is the year must be made by the end of such year. Client’s surviving spouse, the entire interest is required to be distributed, starting by the end of 6.3 If this IRA is designated as a Traditional IRA in the the calendar year following the calendar year of Adoption Agreement and the Client dies on or after the Client’s death (or by the end of the calendar the Required Beginning Date, then the remaining year in which the Client would have attained portion of his or her interest in this IRA is required to age 70½, if later), over such spouse’s life, or, if be distributed at least as rapidly as follows: elected, in accordance with paragraph (c) below. If the surviving spouse dies before distributions (a) If the Designated Beneficiary is someone are required to begin, the remaining interest other than the Client’s surviving spouse, the is required to be distributed, starting by remaining interest is required to be distributed the end of the calendar year following the over the remaining life expectancy of the calendar year of the spouse’s death, over the Designated Beneficiary, with such life expectancy spouse’s Designated Beneficiary’s remaining life determined using the Beneficiary’s age as of his expectancy determined using such Designated or her birthday in the year following the year of Beneficiary’s age as of his or her birthday in the the Client’s death, or over the period described year following the death of the spouse, or, if in paragraph (c) below if longer. elected, will be distributed in accordance with (b) If the Clients sole Designated Beneficiary is the paragraph (c) below. If the surviving spouse dies Client’s surviving spouse, the remaining interest after distributions are required to begin, any is required to be distributed over such spouse’s remaining interest is required to be distributed life or over the period described in paragraph over the spouse’s remaining life expectancy (c) below if longer. Any interest remaining after determined using the spouse’s age as of his or such spouse’s death is required to be distributed her birthday in the year of the spouse’s death. over such spouse’s remaining life expectancy (c) If there is no Designated Beneficiary, or if determined using the spouse’s age as of his or applicable by operation of paragraph (a) or her birthday in the year of the spouse’s death, (b) above, the entire interest is required to be or, if the distributions are being made over the distributed by the end of the calendar year period described in paragraph (c) below, over containing the fifth anniversary of the Client’s such period. death (or of the spouse’s death in the case (c) If there is no Designated Beneficiary, or if of the surviving spouse’s death before applicable by operation of paragraph (a) or distributions are required to begin under (b) above, the remaining interest is required paragraph (b) above). to be distributed over the Client’s remaining (d) The amount to be distributed each year under life expectancy determined in the year of the paragraph (a) or (b) is the quotient obtained Client’s death. by dividing the value of the IRA, as of the end (d) The amount required to be distributed each year of the preceding year, by the remaining life under paragraph (a), (b) or (c), beginning with expectancy specified in such paragraph. Life the calendar year following the calendar year expectancy is determined using the Single Life of the Client’s death, is the quotient obtained Table in Treasury Regulation Section 1.401 (a) by dividing the value of the IRA as of the end (9)-9 Q&A-1. If distributions are being made of the preceding year by the remaining life to a surviving spouse as the sole Designated expectancy specified in such paragraph. Life Beneficiary, such spouse’s remaining life expectancy is determined using the Single Life expectancy for a year is the number in the Single Table in Treasury Regulation Section 1.401 (a) Life Table corresponding to such spouse’s age (9)-9 Q&A-1. in the year. In all other cases, remaining life (e) If distributions are being made to a surviving expectancy for a year is the number in the Single

44 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About Life Table corresponding to the Beneficiary’s age of survival. However, if the designation does not in the year specified in paragraph (a) or (b) and effectively dispose of the entire IRA as of the time reduced by 1 for each subsequent year such distribution is to commence, then (effective for clients dying after December 31, 2003) as to 6.5 The “value” of the IRA includes the amount of any the IRA (or any part not effectively disposed of) outstanding rollover, transfer, and recharacterization the term “Beneficiary” shall mean the Client’s under Treasury Regulation Section 1.408-8 Q&As 7 surviving spouse, then the Client’s estate. The form and 8. last accepted by the Custodian before the Client’s death shall be controlling, whether or not it fully 6.6 A Client’s surviving spouse who is the sole disposes of the entire IRA, and shall revoke all such Designated Beneficiary of this IRA may elect to treat prior designations. The Beneficiary designated by the this IRA as his or her own IRA by redesignating this Client, following the death of the Client may name IRA (in accordance with the procedures established a person or persons entitled to receive any assets by the Custodian) as an IRA in the name of such remaining in the IRA upon the death of the original surviving spouse (rather than as a Beneficiary of Beneficiary (the “Successor Beneficiary”) who shall the Client). A surviving spouse of a deceased Client be designated by the original Beneficiary in a form will also be deemed to make that election by either acceptable to, and accepted by, the Custodian. If no contributing any amount to the IRA or by failing Successor Beneficiary is designated for any of the to cause the distribution to the surviving spouse as assets remaining in the IRA upon the death of the Beneficiary of the amount required to be distributed original Beneficiary, effective for Beneficiaries dying pursuant to this Article VI following the death of after December 31, 2003, such remaining assets the Client within the time period required therein. shall be paid to the surviving spouse, then the estate A surviving spouse who makes that election will of (or other appropriate legal representative of, or thereafter be deemed to be the Client hereunder. successor to) the original Beneficiary. Provisions of this Agreement applicable to the Beneficiary 6.7 The Beneficiary must notify the Custodian (in a shall include, where appropriate, the Successor manner acceptable to the Custodian) of any election Beneficiary. desired to be made by the Beneficiary hereunder, including an election to establish separate 6.10 The term “Designated Beneficiary” means a accounts with respect to this IRA. The Custodian Beneficiary who constitutes a designated beneficiary shall have no duty, obligation or responsibility or beneficiaries as determined in accordance with to notify the Beneficiary as to the Beneficiary’s the rules in Treasury Regulation Section 1.401(a) obligations hereunder, nor shall the Custodian (9)-4. have any obligation or responsibility to determine the amount that must be distributed from the IRA ARTICLE VII – Custodial Agreement at any time. The Custodian shall not be liable for 7.1 The Client delegates to the Custodian the right to any tax or penalty imposed upon the Beneficiary if amend this Agreement, whether prospectively or the Beneficiary fails to receive any distribution, or retroactively, provided that no amendment which the requisite minimum distribution from his or her is intended to take effect retroactively and which account. For purposes of Sections 6.3 and 6.4, a materially and adversely affects the Client shall Beneficiary may aggregate IRAs for purposes of the be effective until the expiration of the thirty day required minimum distribution rules in accordance period referred to in the succeeding sentence. The with Treasury Regulation Section 1.408-8 Q&A 9. Custodian shall give notice to the Client of each such amendment by mail, by including a notice in 6.8 Regardless of any other provision of this Agreement materials regularly distributed to IRA Clients, or by (or any other instruction received, such as a electronic media, and the Client shall be deemed beneficiary designation), the Custodian shall not to have consented thereto unless, within thirty (30) be required to make any distribution from this IRA days after such notice is given, the Client either: (i) until being so directed on a form provided by, and directs the Custodian to make a total distribution of delivered to, the Custodian for that purpose. The all of the assets then in the IRA, or (ii) removes the Custodian shall have no duty or responsibility to Custodian and appoints a successor in accordance initiate the making, to calculate the amount of, or with Article XI hereof. The Custodian shall have see to the application of any distribution from the the right to deduct from the amount distributed or IRA. In addition to receiving proper instructions transferred any unpaid fees or expenses, including from the Client relating to the distribution and without limiting the generality of the foregoing, being advised of the reason for the distribution, the annual maintenance fee and any termination the Custodian may condition any distribution (or or transfer fees (whether or not occasioned by the any assignment of the IRA) upon the Custodian’s Client’s refusal to consent to any amendment). receipt of any and all applications, certificates, tax waivers, signature guarantees and other documents 7.2 In the event that action is required to be taken by (including proof of any legal representative’s the Client to certify its adoption of, or consent to, authority) deemed necessary or advisable by the an amendment to the IRA, the Client agrees to Custodian, in the Custodian’s sole judgment. The take such action in a timely manner, and upon the Custodian shall have no liability for any loss, tax request of the Custodian, to confirm or certify its or penalty incurred by the Client by reason of the timely action to the Custodian. Custodian’s failure to comply with any instruction for distribution or to establish separate accounts 7.3 If at any time there is no balance in this IRA with the until the Custodian has received all information and Custodian, then this IRA shall be deemed terminated documents which it, in its sole judgment, requires. as of the first date there is no balance in the IRA. The Client acknowledges that the Custodian shall not be liable for any tax or penalty imposed upon 7.4 The Client and the Custodian agree that the the Client if the Client fails to receive any minimum Custodian has the absolute right to amend, revise distribution from the IRA. or substitute fee schedules identified or referred to in the Disclosure Statement, and no amendment, 6.9 The term “Beneficiary” means the person or revision or substitution of a fee schedule shall be persons designated as such by the Client in a form deemed an amendment of this Agreement. acceptable to, and accepted by, the Custodian. The designation may name persons, estates, ARTICLE VIII – Administration of the IRA trusts or entities to take upon the contingency 8.1 The Custodian shall be responsible only for carrying

45 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About out the responsibilities specifically set forth herein 9.2 The Custodian agrees to prepare and furnish annual and no others. In performing the responsibilities set calendar-year reports relating to the status of the forth herein, the Client agrees that the Custodian IRA, including any contributions to, and distributions shall not be liable to the Client for any loss, liability, from (including information concerning required cost or expense incurred by the Client as a result of minimum distributions), the IRA as required by the any act of commission or omission by the Custodian Code and the Commissioner of Internal Revenue. in performing the responsibilities set forth herein, 9.3 Client shall prepare and submit (or if such return except as a result of gross negligence or willful or report requires the signature of the Custodian, misconduct by the Custodian. In its discretion, the shall submit such return or report to the Custodian Custodian may delegate to one or more agents the at least 10 days in advance of the due date thereof responsibility to carry out any of its responsibilities, and accompanied by a stamped addressed envelope) may compensate such agents for expenses attendant any other return or report required or advisable to those responsibilities, and the Client agrees that under the Code by reason of any investment in the the Custodian shall not be liable for any act or IRA, including, without limiting the generality of the omission of any agent (whether or not constituting foregoing, any return or report required as a result gross negligence or willful misconduct) to whom it of: (i) realizing any gross income from any unrelated has delegated any such responsibility. trade or business or unrelated debt financed income; (ii) the occurrence of a windfall profits tax; or (iii) any 8.2 The parties do not intend that the Custodian shall other return or report necessary to obtain any credit have any discretionary authority or control or or refund of tax previously paid. otherwise assume any fiduciary duties and none shall be implied. The Custodian shall not be ARTICLE X – IRA Fees and Expenses; Tax Withholding liable for (nor assume any responsibility for) the 10.1 The Custodian, for its service as the Custodian of deductibility of any contribution or the propriety the IRA, shall receive the various fees identified of any contributions under this Agreement, or the or referred to in the Disclosure Statement, which purpose or propriety of any distribution ordered in fees the Custodian reserves the absolute right to accordance with Article VI, which matters are the revise at any time or from time to time, subject sole responsibility of Client. only to the notice period provided in the Disclosure Statement. Further, the Custodian shall receive 8.3 The Custodian shall deliver, or cause to be delivered, such additional fees or compensation for additional to the Client all annuity policies, prospectuses, or extraordinary services either deemed by the annual reports, proxies and proxy soliciting materials Custodian to be necessary to conserve the assets of actually received by the Custodian involving assets the IRA or requested by the Client, plus, in either in the IRA. The Custodian shall not have any case, reimbursement for all out-of-pocket expenses responsibility to vote any shares of stock or take any incurred in connection therewith. other action, grant any consents or waivers, exercise any conversion privileges or otherwise take any 10.2 The Custodian shall also receive such fees and action permitted to be taken with respect to compensation for effecting or executing securities any asset in the IRA, unless otherwise agreed transactions on behalf of the IRA and for such to in writing. other broker-dealer services in connection therewith as requested by the Client, all of which shall be 8.4 The Custodian may conclusively rely upon, and charged to the IRA. shall be protected in acting upon, any written, oral or electronic order from the Client or any notice, 10.3 Any income, gift, estate, unrelated business or request, consent, certificate or other instrument or inheritance taxes and other taxes of any kind paper believed by it to be genuine and to have been whatsoever, including transfer taxes incurred in properly executed, so long as it acts in good faith connection with the investment or reinvestment of in taking or omitting to take any action in reliance the assets of the IRA, that may be levied or assessed thereon. If any such directions are not received in respect of such assets, as well as any interest as required or, if received, are unclear in the sole thereon and penalties with respect thereto, shall be opinion of the Custodian, the Custodian may delay charged to the IRA. complying with such instructions, without liability for any loss caused by any delay, pending receipt of 10.4 Any fees and other administrative expenses such instructions or clarification as the Custodian chargeable to the IRA may be paid directly by the considers appropriate. Client (to the extent the payment of such amount is not required to be treated as a contribution) or may In the event the Custodian receives any conflicting be paid from the IRA if the Client so instructs. In the claims to some or all of the assets in the IRA event of a failure by the Client to pay such amounts (including any claim inconsistent with the then when due, the Client hereby authorizes and directs designation of Beneficiaries), the Custodian may, at the Custodian to deduct such amounts from the its discretion and without liability to any person by IRA, first from any uninvested cash and then by reason of taking any permitted action, (i) hold some liquidating any shares of a money market sweep or all of the assets in the IRA until it receives evidence fund, if held in the IRA, and if insufficient, any satisfactory to the Custodian that ownership has other sweep fund held in the IRA. been resolved, or (ii) deposit some or all of the assets in the IRA into the registry or custody of any court of If any fees or other administrative expenses remain competent jurisdiction together with any such legal unpaid, then notwithstanding any other provision of pleadings as the Custodian may deem appropriate the agreements with the Custodian governing the (charging the IRA for any costs or expenses, including Client’s accounts, the Custodian will, on the second attorney’s fees and disbursements, incurred in Monday in March each year, sell whole or fractional connection therewith). shares of open-end regulated investment company assets (“mutual funds”) held in the IRA sufficient Article IX – Reports and Tax Filings to pay such amounts. The Custodian will sell shares 9.1 The Client agrees to promptly provide to the first from the largest position (by value based on the Custodian such information at such time and in previous day’s NAV) subject to a front-end load or such manner as may be necessary or helpful for the sales charge, continuing with successively smaller Custodian to prepare or file any reports pursuant positions as necessary. Next, the Custodian will to Section 408(i) of the Code and the Treasury sell the largest position that could be subject to a Regulations thereunder. back-end load, continuing with successively smaller

46 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About positions as necessary. Finally, the Custodian will If the Custodian resigns without appointing a sell the largest position in no-load funds, continuing successor, or if the Client rejects a successor with successively smaller positions as necessary. The appointed by the Custodian, the Client shall appoint Custodian will effect required transactions in a singe a successor custodian within thirty (30) days of day up to the systematic limits, and if all required the Custodian’s resignation. Failure to appoint a transactions cannot be completed in a single day, successor custodian in the required time shall result the Custodian will process transactions for all in the termination of the IRA and distribution of the retirement accounts first, in the alphanumeric order assets in the IRA. of the account number. The Custodian will not sell shares of offshore funds or closed-end funds in this Notwithstanding the transfer of the assets of the IRA process. If the sale does not result in sufficient funds, to a successor custodian or the distribution of the the unpaid debit balance will remain due. You may assets of the IRA upon termination of the IRA, the incur applicable contingent deferred sales charges Client (and the IRA) shall remain liable for payment and transaction fees as a result of these sales. The in full of all of the fees and other administrative Custodian shall not be liable to the Client for any charges and any expenses then due and payable or losses or lost profits relating to these sales. which become due and payable as a result of, upon or following any transfer or distribution of the assets 10.5 If the Custodian has terminated the IRA and elected of the IRA described in Article X. to distribute all or any part of the assets in the IRA as provided herein and the Client does not elect 11.2 To qualify, a successor custodian shall be a bank, not to have the required tax withheld from such insured credit union, or other person satisfactory to distribution, then the Custodian may give notice to the Secretary of the Treasury pursuant to Section the Client (a “Withholding Tax Notice”) requesting 1.408-2(e) of the Income Tax Regulations. The the Client to instruct the Custodian as to which Client represents and warrants that any successor assets should be sold to permit the withholding of custodian appointed by the Client is qualified to all taxes required to be withheld with respect to act as a custodian of this IRA. Upon receipt by the each distribution. If the Client has not furnished Custodian of notice (whether written or electronic) instructions to the Custodian within ten (10) days of the appointment by the Client of a successor after such Withholding Tax Notice, the Custodian custodian, the Custodian shall transfer and pay shall follow the procedures in Section 10.4 over to such successor the assets of the IRA. regarding sales of all of the shares of open-ended Notwithstanding the foregoing, the Custodian is regulated investment companies in the IRA as if the authorized to reserve such sum of money or other Withholding Tax were a fee or other administrative property as it may deem advisable for payment of all expense under Section 10.4 due on the date the its fees, compensation, costs, and expenses, or for Withholding Tax Notice was given. payment of any other liabilities actually or potentially constituting a charge on or against the assets of the 10.6 The Client shall indemnify the Custodian and hold IRA or on or against the Custodian. Any balance of the Custodian harmless from and against any and such reserve remaining after the payment of all such all loss, liability, cost or expense (including attorneys’ items is to be paid over to the successor custodian. fees and disbursements): (i) incurred by or asserted against the Custodian by reason of the Custodian 11.3 The Custodian shall not be liable for the acts or serving as Custodian of this IRA, except those which omissions of any successor custodian, even if such arise due solely to the Custodian’s gross negligence successor custodian has been appointed by the or willful misconduct; (ii) with respect to the Custodian. acquisition, holding or disposition of any investment, or (iii) the making or failing to make any distribution. ARTICLE XII – Termination of the IRA The Custodian shall not be obligated or expected to 12.1 The Custodian may terminate the IRA if within commence or defend any legal action or proceeding thirty (30) days after the resignation or removal of in connection with the IRA unless agreed upon the Custodian, no custodian has been appointed by the Custodian and the Client, and unless the as successor custodian or the successor custodian Custodian is fully indemnified to its satisfaction for appointed by the Client fails or refuses to accept any so doing. asset in the IRA transferred by the Custodian to such successor custodian. To effectuate the termination ARTICLE XI – Resignation or Removal of the Custodian of the IRA, the Custodian shall distribute any assets 11.1 Upon thirty (30) days’ prior notice to the Custodian remaining in the IRA in a lump-sum in cash or in (or such shorter period as is accepted by the kind to the Client, subject to the Custodian’s right to Custodian), the Client may remove the Custodian as reserve funds as provided in Section 11.2 and to sell the custodian of this IRA. The Client’s notice to the assets to satisfy any tax withholding obligations of Custodian must identify the successor custodian. the Client as provided in Section 10.5.

The Custodian may resign at any time upon thirty 12.2 The termination of the IRA shall not terminate the (30) days’ notice to the Client. The Custodian shall Client’s obligations, representations or agreements resign and substitute another custodian if the nor the Custodian’s rights or remedies, including Custodian receives notice from the Commissioner the Client’s obligation in Section 10.5 hereof of Internal Revenue that such substitution is to indemnify the Custodian. The Custodian’s required because it has failed to comply with the obligations under this Agreement shall terminate requirements of Section 1.408-2(e) of the Income upon termination of this IRA, and upon delivery Tax Regulations. Except as required above, upon or distribution of any assets in the IRA to, or upon its resignation, the Custodian may, but shall not be order of, the Client, the Custodian shall be relieved required to, appoint a qualifying successor custodian. from all further liability under this Agreement with If the Custodian upon its resignation appoints a respect to the assets so delivered or distributed. successor and the Custodian does not receive from the Client within thirty (30) days of its resignation 12.3 This IRA may be revoked at any time within seven (7) written notice from the Client that the Client rejects days after the date on which the Client received the the designated successor, then the Client will be initial Disclosure Statement (including the Disclosure deemed to have ratified, confirmed and accepted Statement in connection with a predecessor the Custodian’s appointed successor. individual retirement arrangement); an IRA which is established more than seven (7) days after the date of the receipt of the initial Disclosure Statement may

47 About Your UBS Account: Custodial Agreement for Traditional or Roth Individual Retirement Accounts Retirement Individual Roth or Traditional for Agreement Custodial Account: UBS Your About not be revoked. A Client who wishes to revoke 13.5 This Agreement shall be construed and administered the IRA in accordance with the foregoing may in accordance with the laws of the State of New do so by mailing or delivering a written revocation York, without regard to the choice of law principles or a revocation by electronic media if permitted thereof. by applicable law, to the Custodian at the address which appears at the end of the Disclosure 13.6 This Agreement is intended to qualify as an Statement. Mailed notice will be deemed given on individual retirement plan as defined in Section 7701 the date that it is postmarked (or, if sent by certified (a)(37) of the Code and, if this IRA is designated or registered mail, on the date of certification or as a Traditional IRA in the Adoption Agreement, to registration), or if given by electronic media, the entitle the Client to the retirement savings deduction electronic postmark. In the event that the Client provided under Section 219 of the Code if the decides to revoke the IRA and does so within such Client is eligible. If any provisions of this Agreement seven-day period, the Client is entitled to a return are subject to more than one interpretation or of the entire amount of the consideration paid by any term used herein is subject to more than one the Client into the IRA, without adjustment for construction, such ambiguity shall be resolved in such items as brokerage commissions and favor of that interpretation or construction which is fees, administrative expenses or fluctuations in consistent with that intent. market value. 13.7 The Code and the Treasury Regulations thereunder ARTICLE XIII – Miscellaneous contain numerous complex and technical rules 13.1 “UBS Financial Services Inc.,” shall mean UBS relating to individual retirement accounts, including, Financial Services Inc., a Delaware corporation, and but not limited to, rules as to the deductibility of any successor corporation by merger, consolidation contributions to an individual retirement account, or liquidation, as well as any other entity to which early distributions, required minimum distributions, UBS Financial Services Inc. has transferred all or a rollovers, prohibited transactions and the removal of substantial portion of its retail brokerage business. excess contributions. The Custodian has advised the Client that if the Client has any questions as to the 13.2 If UBS Financial Services Inc. is a party to any other treatment of any transaction involving the Client’s agreement with the Client, nothing contained herein IRA under the Code and the Treasury Regulations, shall be construed to diminish, reduce or eliminate the application of any State or local income tax laws, any rights which UBS Financial Services Inc. may or the effect of any other tax, estate, inheritance have under this Agreement nor shall anything in or property laws, the Client should obtain and rely this Agreement be construed to diminish, reduce upon the advice of the Client’s personal tax advisor or eliminate any obligations of the Client under or attorney. any such other agreement. To the extent not inconsistent herewith, all of the terms and provisions The Client agrees that the Custodian has no of UBS Financial Services Inc.’s Client Relationship responsibility or obligation to advise the Client as to Agreement and New Account Booklet (and any the tax treatment of any transaction or to caution successors to such documents) are incorporated the Client as to any adverse consequences of any herein by reference. transaction involving the IRA. The Client agrees that the Custodian will not be liable to the Client for any 13.3 Any notice to the Client pursuant to this Agreement income taxes, penalties or other damages of any shall be deemed given upon mailing to the Client kind which may result from the Client’s failure to (by any class of mail) at the last address of the follow these technical rules, or any claim of a failure Client appearing on the records of the Custodian of the Custodian to advise the Client (or of having or upon the date of transfer by electronic means to advised the Client incorrectly) as to the tax treatment the Client if such electronic transfer is permitted by of any transaction involving the Client’s IRA. applicable law. Any notice given by the Custodian may be given separately, may be included with any brokerage account statement mailed or sent (either by hard copy or by electronic media, if permitted by applicable law) to the Client or may be included in any announcement in any periodic communication to Clients of the Custodian.

13.4 Client shall not have the right or power to anticipate any part of the IRA or to sell, assign, transfer, pledge or hypothecate any part thereof. The IRA shall not be liable for the debts of the Client or subject to any seizure, attachment, execution or other legal process in respect thereof, except as provided by law. At no time shall it be possible for any part of the income or assets of the IRA to be used for, or diverted to, purposes other than for the exclusive benefit of the Client.

48 Disclosure Statement for SIMPLE Accounts Retirement SIMPLE for Statement Disclosure Account: UBS Your About Retirement Accounts

A. General Introduction times; (iv) assets in a SIMPLE IRA cannot be commingled or combined with other property, except in a common trust SIMPLES. Certain small employers may establish a savings fund or common investment fund; (v) funds in a SIMPLE incentive match plan for employees, called a SIMPLE Plan, IRA cannot be used to buy a life insurance policy; and (vi) in accordance with Section 408(p) of the Internal Revenue distributions from a SIMPLE IRA must start by April 1st of Code. If you are eligible to participate in your employer’s the year following the year you attain age 70½ SIMPLE Plan, your employer is required to notify you and provide you with a summary description of the SIMPLE This SIMPLE IRA has received an opinion letter from the IRS Plan and your right to make or change salary reduction that this SIMPLE IRA satisfies the applicable requirements contribution elections. You may elect to make salary for IRAs under Section 408(p)(I) of the Internal Revenue reduction contributions pursuant to the SIMPLE Plan Code. The IRS approval is a determination only as to and your employer will contribute either matching the form of the SIMPLE IRA and does not represent a or nonelective contributions on your behalf. determination of the merits of such SIMPLE IRA.

All contributions under a SIMPLE Plan can only be made to a type of individual retirement account, referred to as B. Revocation of this SIMPLE IRA a SIMPLE IRA, and cannot be made to any other type of IRA. Generally, a SIMPLE IRA is subject to the same rules If you receive this Disclosure Statement at the time you as govern Traditional IRAs, except that only contributions are first establishing your SIMPLE IRA, you may revoke the under a SIMPLE Plan can be made to the SIMPLE IRA and SIMPLE IRA at any time within seven (7) days after the date only amounts from a SIMPLE IRA can be rolled over to on which you receive this Disclosure Statement. If you wish another SIMPLE IRA. to revoke this SIMPLE IRA within the above time limit, you may do so only by mailing or delivering a written notice Establishing a SIMPLE IRA. You may establish a SIMPLE of revocation to UBS Financial Services Inc. at the address IRA with UBS Financial Services Inc. to receive and hold which appears at the end of this Disclosure Statement. contributions made on your behalf under your employer’s If you mail your notice, the notice will be considered given SIMPLE Plan by executing a SIMPLE IRA Application and on the date that it is postmarked if it is mailed by U.S. Adoption Agreement. mail (or if sent by certified or registered mail, the date of certification or registration), first class postage prepaid and You may also establish a SIMPLE IRA with UBS Financial is properly addressed to, and in due course is received by, Services Inc. by instructing the trustee/custodian of your UBS Financial Services Inc. present SIMPLE IRA to transfer all (or a portion) of the SIMPLE IRA balance to UBS Financial Services Inc. by If you have any questions as to your right to revoke this executing an Account Transfer Form that you can obtain SIMPLE IRA, please call 1-877-827-4005, Option 1, Sub- from your Financial Advisor. Option 2 during normal business hours.

Disclosure Statement. This Disclosure Statement, which In the event that you decide to revoke your SIMPLE IRA and UBS Financial Services Inc. is required to provide to you do so within such seven-day period, you are entitled to a under Internal Revenue Service (“ IRS”) regulations, return of the entire amount of the consideration originally contains only a general description of the requirements paid by you into your SIMPLE IRA, without adjustment and features of SIMPLE IRAs and a summary of the material for such items as brokerage commissions or fees, terms of the Custodial Agreement. A complete copy of administrative expenses or fluctuations in market value. the UBS Financial Services Inc. Custodial Agreement for SIMPLE Individual Retirement Accounts referred to in this Disclosure Statement is provided to you with this Disclosure C. Contributions to SIMPLE IRAs Statement, along with a copy of the Client Relationship Agreement. That Custodial Agreement and the Client The only contributions which are permitted to be made Relationship Agreement are legal agreements between to a SIMPLE IRA are those made under a SIMPLE Plan, you and UBS Financial Services Inc. and set forth your which consist of salary reductions contributions and either rights, as well as your obligations. You should carefully required employer matching or non-elective contributions review those agreements. as provided in the SIMPLE Plan. Salary reduction contributions are the amounts of your compensation that Before deciding to establish your SIMPLE IRA with UBS you elect to have contributed by your employer to your Financial Services Inc., you should carefully review all SIMPLE IRA rather than having such amounts paid directly applicable commissions, fees and other charges with to you in cash. You make your election by executing a your Financial Advisor. You may obtain further information salary reduction agreement furnished by your employer. regarding a SIMPLE IRA from any District Office of the Your employer must contribute these salary reduction Internal Revenue Service. contributions on your behalf to your SIMPLE IRA by the close of the 30-day period following the last day of the Legal Requirements. By law, a SIMPLE IRA is a trust or month with respect to which the contributions are made. custodial account created by a written document in the United States for the exclusive benefit of yourself and your beneficiaries, and which meets all of the following D. Transfers and Rollovers requirements: (i) the trustee or custodian must be a bank, a federally insured credit union, a savings and loan A transfer of funds to or from your SIMPLE IRA with one association or other person, such as UBS Financial Services trustee or custodian to a SIMPLE IRA with another trustee Inc., that has been approved by the IRS to act as a trustee or custodian is not a rollover. It is a tax-free transfer and or custodian for IRAs; (ii) contributions, except for rollover is not affected by the one-year waiting period between contributions from another SIMPLE IRA, can only be made rollovers discussed below. You may transfer your SIMPLE in cash and under a SIMPLE Plan; (iii) the entire amount IRA to UBS Financial Services Inc. by instructing the trustee/ in a SIMPLE IRA is fully vested, i.e., non-forfeitable, at all custodian of your present SIMPLE IRA to transfer all (or

49 About Your UBS Account: Disclosure Statement for SIMPLE Retirement Accounts Retirement SIMPLE for Statement Disclosure Account: UBS Your About a portion) of the SIMPLE IRA balance to UBS Financial the amount of your distribution which is includible in your Services Inc. or by executing a Transfer Form that you income for tax purposes. can obtain from your Financial Advisor. A transfer incident to divorce is another type of tax-free transfer. If you instead request a withdrawal of an existing SIMPLE IRA F. Required Minimum Distributions that is issued to you rather than to a successor trustee or custodian, the amount ultimately deposited into the Required Minimum Distributions before Death SIMPLE IRA will be considered a rollover subject to the rules You must begin, and are responsible for, taking a minimum discussed below. Rollovers, which are tax-free movements distribution from your SIMPLE IRA for the year you attain of money or property, are permitted to a SIMPLE IRA only age 70½ and for each year thereafter that you live (including from another SIMPLE IRA. the year in which your death occurs). The first minimum distribution must be taken by the April 1st following the The amount in your SIMPLE IRA can be rolled over tax-free calendar year in which you attain age 70½, although you to traditional IRA, a qualified employer plan, a 403(b) tax- may take more than this minimum amount. The amount sheltered annuity or custodial account or a government- to be distributed each year from your SIMPLE IRA may not sponsored 457 deferred compensation plan (collectively, be less than the quotient obtained by dividing the value these plans are referred to here as “eligible retirement of your SIMPLE IRA as of the preceding December 31st by plans”), but only after a 2-year period has expired since the distribution period in the IRS’s Uniform Lifetime Table, you first participated in the SIMPLE Plan of your employer using your age as of your birthday in that year. If your sole (measured from the first date your employer deposited Designated Beneficiary (as defined below) is your spouse contributions into your SIMPLE IRA). If you rollover an and your spouse is more than ten years younger than you, amount in your SIMPLE IRA (other than to another SIMPLE the distribution period is determined under the IRS’s Joint IRA) before the end of that 2-year period, the rollover is and Last Survivor Table, using your age and your spouse’s treated as a taxable distribution and not a tax-free rollover. age in that year. If the required minimum distribution for any year is not distributed, you will be subject to a penalty To rollover tax-free all or part of a distribution to you of tax equal to 50% of the amount that should have been cash or property from a SIMPLE IRA, you must roll over the distributed to you but that remained in your SIMPLE IRA. For distribution within 60 days after the day you receive the the 2009 calendar year, the requirement to take a minimum distribution. If property is distributed from a SIMPLE IRA, distribution has been waived. that property, and not the proceeds from its sale, must be rolled over. Generally, you cannot roll over the amount Required Minimum Distributions after Death of any distribution that is equal to the required minimum If your death occurs after you had attained age 70½ the distribution for the year from a SIMPLE IRA. amount in your SIMPLE IRA is required to be distributed to your beneficiary over the longer of either your remaining Finally, if you roll over any part of a distribution from a life expectancy or the remaining life expectancy of your SIMPLE IRA, then you cannot, within a one-year period Designated Beneficiary. If your beneficiary is not starting on the date on which you receive that distribution, a Designated Beneficiary, your SIMPLE IRA is required roll over any part of another distribution from that SIMPLE to be distributed over your remaining life expectancy. IRA. However, a transfer of funds in your SIMPLE IRA directly from one trustee or custodian to another is not If your death occurs before you had attained age 70½, a rollover but a tax-free transfer. your SIMPLE IRA is required to be distributed to your beneficiary: (i) if your Designated Beneficiary is other than your E. Taxation of Simple IRA Distributions surviving spouse, over the remaining life expectancy of your Designated Beneficiary or by the end of the calendar SIMPLE IRA Distributions. All amounts distributed to year containing the fifth anniversary of your death, if so you from a SIMPLE IRA will be includible in your gross elected; (ii) if your sole Designated Beneficiary is your income in the tax year that you receive them. These surviving spouse, over the remaining life expectancy of amounts are taxable at ordinary income rates, and neither your spouse (beginning by the end of the calendar year the special lump-sum distribution provisions nor capital following the year of your death or by the end of the gains treatment is available. year you would have attained age 70½ , if later) or by the end of the calendar year containing the fifth anniversary Early Distribution Penalty Tax. Since the purpose of a of your death, if so elected; and (iii) if you do not have a SIMPLE IRA is to accumulate funds for retirement, if you Designated Beneficiary, by the end of the calendar year are under age 59½ and receive a distribution from your containing the fifth anniversary of your death. SIMPLE IRA, the amount distributed would be considered an “early distribution” subject to a 10% early distribution Naming a Beneficiary penalty tax. However, if the early distribution occurs during Your “beneficiary” means the person or persons the 2-year period following the date on which you first designated as such by you during your lifetime on a form participated in your employer’s SIMPLE Plan (measured acceptable to, and accepted by, UBS Financial Services from the first date your employer deposited contributions Inc. The designation may name persons, estates, trusts or into your SIMPLE IRA), the penalty tax is increased from entities to take upon the contingency of survival, and you 10% to 25%. Exceptions to the 10% (or 25%) early do not need to obtain the consent of any other person to distribution penalty tax exist if the distribution is made on your designation of your beneficiaries. (However, if you account of: (i) unreimbursed medical expenses in excess reside in a community property State and your spouse of 7.5% of your adjusted gross income; (ii) health insurance is not designated your primary beneficiary as to at least premiums (but only if you have been unemployed and 50% of your SIMPLE IRA assets, your spouses consent to collecting unemployment compensation under a Federal or your beneficiary designation may be necessary for that state program); (iii) qualified higher education expenses; (iv) designation to be effective.) If your beneficiary designation a first-time home purchase ($10,000 lifetime maximum); fails to dispose of all of the assets in your SIMPLE IRA as (v) death; (vi) disability, (vii) a series of substantially equal of the time a distribution is to commence after your death, periodic payments based upon the life expectancy (or effective if your death occurs after December 31, 2003, joint life expectancy) of you and your beneficiary; (viii) a your beneficiary will be your surviving spouse, and if you timely withdrawal of excess contributions; or (ix) an IRS do not have surviving spouse, your beneficiary will be your levy. The 10% (or 25%) early distribution penalty tax also estate. The last form accepted by UBS Financial Services does not apply to a “qualified disaster recovery assistance Inc. before your death is to commence will be controlling, distribution,” as defined in Internal Revenue Service whether or not it disposes of all of the assets in your Publication 4492-B, made before January 1, 2010. The SIMPLE IRA, and will operate to revoke all such forms 10% (or 25%) early distribution penalty tax is based upon previously filed by you.

50 About Your UBS Account: Disclosure Statement for SIMPLE Retirement Accounts Retirement SIMPLE for Statement Disclosure Account: UBS Your About Designated Beneficiary. A “Designated Beneficiary” is Assets of your SIMPLE IRA (including annuity or insurance any individual who is designated by you as a beneficiary contracts held in the SIMPLE IRA) will be held by UBS (as described above) who remains as a beneficiary as of Financial Services Inc. in its name for your benefit. the September 30th of the calendar year following the calendar year of your death. In some cases, as permitted All contributions to your SIMPLE IRA can be invested and by the IRS Regulations, the individual beneficiary of a trust reinvested in marketable securities that are traded by, or that is designated by you as a beneficiary can qualify as a obtainable through, UBS Financial Services Inc. either on a “Designated Beneficiary” for purposes of determining the recognized exchange, such as the New York or American required period for distributions from your SIMPLE IRA. If a Stock Exchange, or over-the-counter or in shares of open- beneficiary other than an individual or a qualifying trust is end regulated investment companies. Also, you may named as your beneficiary, you will be treated as having no invest your SIMPLE IRA in other investments UBS Financial “Designated Beneficiary” for purposes of determining the Services Inc. in its sole discretion agrees to hold pursuant required period for distributions from your SIMPLE IRA. to its policies and procedures then in effect. However UBS Financial Services Inc. may condition its approval Surviving Spouse. If your surviving spouse is the sole upon allowing a particular investment to be acquired Designated Beneficiary of your SIMPLE IRA, your spouse for, or held in, your SIMPLE IRA upon the receipt of a may elect to treat this SIMPLE IRA as if it were the spouse’s written agreement from you containing such terms as UBS own IRA by redesignating the SIMPLE IRA (in accordance Financial Services Inc. deems appropriate. Furthermore, with the procedures established by UBS Financial Services UBS Financial Services Inc. reserves the right to revoke Inc.) as an IRA in his or her own name (rather than as its decision to allow any particular investment to be held a beneficiary IRA). Your surviving spouse will also be in your SIMPLE IRA upon notice to you. UBS Financial deemed to make this election by failing to cause a required Services Inc. will have no liability to you if it revokes its minimum distribution to be made within the time period decision, and you will be required within 30 days thereafter required. to instruct UBS Financial Services Inc. to sell, transfer or distribute the particular investment. If you fail to give any Successor Beneficiary. The beneficiaries that you such instructions, UBS Financial Services Inc. may distribute originally designate after your death may name a person the investment to you. or persons (referred to as a successor beneficiary) who would be entitled to receive any assets remaining in the As the income from, and gain or loss on, each investment SIMPLE IRA upon the death of that original beneficiary. you select for your SIMPLE IRA will affect the value of the Your original beneficiary must designate any successor SIMPLE IRA, the growth in value of your SIMPLE IRA cannot beneficiaries on a form acceptable to, and accepted by, be guaranteed or projected. UBS Financial Services Inc. If your original beneficiary’s designation fails to dispose of all of the assets remaining Sweep Fund. You may select a sweep fund (from those in the SIMPLE IRA, those remaining assets will be paid to available to your SIMPLE IRA) into which uninvested cash your beneficiary’s surviving spouse, then your beneficiary’s balances in your SIMPLE IRA will automatically be invested. estate (for beneficiaries dying after December31, 2003). If you fail to elect a sweep option, UBS Financial Services The designation of a successor beneficiary will not change Inc. may automatically sweep uninvested cash balances the amount of any required minimum distribution, which into a sweep option consistent with the other agreements must still be calculated with respect to your original between you and UBS Financial Services Inc. then in effect. beneficiary. Collectibles. You may not invest any part of your SIMPLE Requesting Distributions IRA in “collectibles,” which include artworks, rugs, UBS Financial Services Inc. will not make any distribution, antiques, metals, gems, stamps, alcoholic beverages including any required minimum distribution, to you or coins, with the exception of certain gold, silver and or your beneficiary unless you or your beneficiary, as platinum coins, any coins issued under the laws of any applicable, requests that distribution in accordance with State and certain gold, silver, platinum or palladium bullion UBS Financial Services Inc.’s procedures. Your beneficiary if such bullion is in the physical possession of UBS Financial must furnish UBS Financial Services Inc. with such Services Inc. If you invest any part of your SIMPLE IRA in instruments and documents as UBS Financial Services Inc. a collectible, the cost of that investment is treated as a requests to establish the beneficiary’s right to assets in distribution from the SIMPLE IRA. your SIMPLE IRA, as well as (in a manner acceptable to UBS Financial Services Inc.) any elections desired, including Prohibited Transactions. The tax exempt status of an election to establish separate accounts with respect your SIMPLE IRA will be revoked if you engage in any to the SIMPLE IRA. UBS Financial Services Inc. has no “prohibited transaction” described in Section 4975 of duty, obligation or responsibility to remind you or your the Internal Revenue Code with a “disqualified person,” beneficiary as to these distribution obligations, nor does which is defined as including yourself, your beneficiary, UBS Financial Services Inc. have any duty to calculate the certain members of your family and entities (corporations, amount that must actually be distributed from the SIMPLE partnerships, trusts or estates) in which you or they have IRA at any time. As a result, UBS Financial Services Inc. a substantial interest. Generally, a prohibited transaction will not be liable to you or your beneficiary for any tax involving a SIMPLE IRA is any act or transaction involving or penalty imposed for failing to receive any required self-dealing. Some examples of prohibited transactions are: minimum distribution. 1. Selling or leasing of any property between your SIMPLE IRA and a disqualified person. 2. Transferring any property to/from a disqualified person G. Investment of Contributions to/from your SIMPLE IRA. 3. Using your SIMPLE IRA or any of its assets to benefit a Investments. Unless you enter into a separate written disqualified person, such as the purchase of a vacation contractual arrangement with UBS Financial Services home for yourself. Inc. providing otherwise, you control the investment 4. A disqualified person borrowing any money from your and reinvestment of the assets in your SIMPLE IRA. Your SIMPLE IRA or using your SIMPLE IRA as security for a directions as to the investment of your account are loan to a disqualified person. transmitted directly by you (or a person properly authorized by you) to your Financial Advisor, who acts as your agent If you engage in a prohibited transaction with your SIMPLE in carrying out these investment instructions. However, the IRA, the entire fair market value of your SIMPLE IRA as Internal Revenue Code provides that you may not invest of the January 1st of the calendar year in which such any part of your SIMPLE IRA in life insurance. prohibited transaction takes place is treated as distributed to you. That entire amount is included in your income for

51 About Your UBS Account: Disclosure Statement for SIMPLE Retirement Accounts Retirement SIMPLE for Statement Disclosure Account: UBS Your About income tax purposes and may also be subject to the 10% You will incur normal commissions and fees on purchases (or 25%) early distribution penalty tax if you have not yet and sales of securities consistent with the accompanying attained age 59½. agreements to this account.

In addition, if you use all or any part of your interest in Also, you may incur various fees and costs in connection your SIMPLE IRA as security for a loan to yourself, the with your SIMPLE IRA, such as legal fees when UBS portion of your SIMPLE IRA used as security for the loan Financial Services Inc. requires you to furnish it with a will be treated as distributed to you and taxed as ordinary legal opinion as to certain actions you wish to take or income in the year in which the money is borrowed. If instructions you wish to give. you are under age 59½, the amount treated as distributed will also be subject to the 10% (or 25%) early distribution penalty tax. I. Tax Matters

Your Investment Responsibilities. As you control and Complexity of Tax Rules. The Internal Revenue Code direct the investment of the assets in your SIMPLE IRA, and the IRS Regulations contain numerous complex and you are responsible for determining the legal consequences technical rules relating to IRAs, including rules as to early (including the income tax and 10% (or 25%) early distributions, required minimum distributions, rollovers and distribution penalty tax consequences) of any investment prohibited transactions. UBS Financial Services Inc. strongly in your SIMPLE IRA. For example, it is your responsibility recommends that if you have any questions as to the tax to determine whether any investment or transaction in treatment of any specific transactions involving your SIMPLE or involving your SIMPLE IRA will result in a prohibited IRA, you should obtain and rely upon the advice of your transaction or whether an investment constitutes a personal tax advisor or attorney. collectible. Neither UBS Financial Services Inc. nor its affiliates will have any liability to you or to your beneficiary for any H. Fees and Expenses of the IRA income taxes, penalty taxes or other damages which may result from you or your beneficiary’s failure to Amount of Fees. Generally, all of the fees applicable follow these technical rules, or failing to advise you (or to your SIMPLE IRA are described in detail in the advising you incorrectly) as to the tax treatment of any accompanying documentation. These fees may be changed transaction involving your SIMPLE IRA. Furthermore, upon 30 days’ notice to you. neither UBS Financial Services Inc. nor its affiliates assumes any responsibility for the taxation of distributions of any Paying Fees. The Annual Maintenance Fee is charged for amounts from your SIMPLE IRA. To the extent that any any calendar year (or portion thereof) during which you such tax, penalty or damages are incurred, they will be have a SIMPLE IRA with UBS Financial Services Inc. You may charged against your SIMPLE IRA as an expense. pay this fee directly or have it deducted from your IRA. The fee will be charged and deducted automatically from your Form 1099R. UBS Financial Services Inc. will report all SIMPLE IRA account annually and the amounts charged will distributions to the IRS on Form 1099R. This report will be shown on your brokerage statement. include a description of the distribution (e.g., early, normal, etc.). For reporting purposes, a direct transfer of assets A transfer/termination fee is also charged when all to a successor custodian or trustee is not considered a or substantially all of the assets in your SIMPLE IRA distribution. Whenever you request a distribution, you are are transferred to a successor custodian or trustee or required to indicate the reason for that distribution on the distributed to you. However, the termination fees are request form, as well as any exceptions which may apply not charged when the termination of the SIMPLE IRA to the 10% (or 25%) early distribution penalty tax. is attendant to the payment of a total distribution after you reach age 59½ are totally disabled or die. Form 5498. UBS Financial Services Inc. will report to the IRS on Form 5498 the amount of any contribution or Fees which are deducted from your SIMPLE IRA will be paid rollovers made to a SIMPLE IRA during a calendar year, from the cash, money market shares and/or other sweep as well as the tax year for which the contribution is made. option in your SIMPLE IRA. If the cash, money market sweep fund and/or other sweep fund in your SIMPLE IRA Tax Forms You Must File. You must file Form 5329 with are not sufficient to pay the fees, UBS Financial Services the IRS for each tax year during which the contribution Inc. will sell mutual funds in your account necessary to limits are exceeded, an early distribution subject to the pay the fees on the second Monday in March each year. 10% early distribution penalty tax occurs, or less than UBS Financial Services Inc. will not exercise discretion the required minimum amount is distributed from your in selecting which mutual funds but will start with the SIMPLE IRA. largest positions that are not subject to a back end sales charge and continuing with successively smaller positions. Withholding. Federal income tax will be withheld from If necessary, UBS will next sell the largest positions that the distributions you receive from a SIMPLE IRA unless could be subject to a back end sales load continuing with you elect not to have income tax withheld. In addition, successively smaller positions as necessary and lastly, will if you reside in a State that requires State income tax sell the largest position in no-load funds, continuing with to be withheld, distributions from your SIMPLE IRA may successively smaller positions as necessary. also be subject to State income tax withholding, absent any permitted election. Generally, Federal income tax on Expenses. UBS Financial Services Inc. may also charge non-periodic distributions is withheld at a flat 10% rate. your SIMPLE IRA for any of its reasonable out-of-pocket If SIMPLE IRA distributions are payable outside the United costs and an appropriate administrative expense arising States, however, special withholding rules will apply Your from unforeseen situations (such as taxes or penalties election not to have any income tax withheld will not effect imposed upon your SIMPLE IRA or legal expenses incurred your liability for income tax on the taxable amount of any in defending claims against, or to resolve the claims of distribution. competing beneficiaries for, your SIMPLE IRA), as well as for expenses incurred due to the maintenance of certain If UBS Financial Services Inc. terminates your IRA and/ investments (for example, for the storage of Eagle coins or distributes assets in your IRA and you do not elect not or the holding of bullion). In most cases, however, UBS to have the required tax withheld from such distribution, Financial Services Inc. will inform you before those then you must instruct UBS as to which assets should be expenses are to be incurred. sold to permit the withholding of all taxes required to be withheld. If you do not timely give UBS Financial Services

52 About Your UBS Account: Disclosure Statement for SIMPLE Retirement Accounts Retirement SIMPLE for Statement Disclosure Account: UBS Your About Inc. such instructions, you direct UBS Financial Services Inc. Saver’s Tax Credit. Eligible individuals may receive a to liquidate whole or fractional shares of the largest mutual Saver’s Tax Credit for contributions to a SIMPLE IRA. fund asset by value held in the IRA to pay any taxes due The credit (which is in addition to any tax deduction) and further liquidations, if required, will be done using the is limited to a percentage (between 50% and 10% next largest mutual fund position. depending on your income and filing status) of your SIMPLE IRA contribution up to a maximum of $2,000 Unrelated Business Taxable Income. The income earned for each taxable year ($4,000 for joint filers), and may in your SIMPLE IRA is generally exempt from Federal not exceed $1,000 for year ($2,000 for joint filers). This income taxes and will not be taxed until distributed to you SIMPLE IRA contribution amount is reduced by certain unless you make an investment that results in “unrelated SIMPLE IRA distributions made during the year. The credit business taxable income.” Unrelated business taxable is based upon your income, and is available for joint filers income can result, for example, from an investment in a with income less than or equal to $55,500, for heads of limited partnership interest in a partnership that is debt- household with income less than or equal to $41,625 financed or that actively conducts a trade or business or and for all other filers with income less than or equal to as a result of investing in a mutual fund that has REM IC $27,750. The credit is available only to individuals age residual interests as assets. 18 and older who are not students and who are not individuals for whom a dependency exemption is allowed If your SIMPLE IRA derives unrelated business taxable to another taxpayer. income which for any year exceeds $1,000, then unrelated business income tax will be due. J. Termination of SIMPLE IRA Tax Returns for Your SIMPLE IRA. If the investments in your SIMPLE IRA generate $1,000 or more of unrelated You may terminate this SIMPLE IRA at any time by sending business taxable income for any year, a tax return, Form a written notice of such termination, which must be signed 990-T, Exempt Organization Business Income Tax Return, by you and must include the UBS Financial Services Inc. must be filed. If a Form 990-T is required to be filed, then account number of your SIMPLE IRA, to: an employer identification number (EIN) must be obtained from the IRS (applications for an EIN are made by filing Retirement Services – Manager Form SS-4 with the IRS) for your SIMPLE IRA. This unrelated UBS Financial Services Inc. business income tax is an expense of your SIMPLE IRA and 1200 Harbor Blvd. should be paid from your SIMPLE IRA. Weehawken, NJ 07086-6791

In certain other circumstances, it may be advantageous The termination of your SIMPLE IRA will not terminate to file a tax return or a tax claim in order to recover a tax any of your obligations under the Custodial Agreement attributable to an investment by your SIMPLE IRA. For or the Client Relationship Agreement, including your example, if certain capital gains taxes are paid by a mutual obligation for the payment of fees. Your SIMPLE IRA will fund, or a tax is withheld on a dividend from a foreign also terminate upon the date when all of the assets in your stock, a refund of that tax may be obtainable by filing an SIMPLE IRA have been distributed or transferred. If you appropriate claim. You are responsible for determining transfer your SIMPLE IRA to another custodian and that whenever the filing of a tax return or tax claim as a custodian fails or refuses to accept any asset in your SIMPLE result of an investment in your SIMPLE IRA is required or IRA (such as non-traded stocks or partnership interests), advantageous, and it is your responsibility to have the tax then UBS Financial Services Inc. will distribute those assets return or tax claim prepared at your expense (other than directly to you, and you may be liable for income and a return for a refund with respect to an investment in a penalty taxes on that distribution. regulated investment company or real estate investment trust). For example, if one or more investments in your UBS Financial Services Inc. may resign as the custodian of SIMPLE IRA generate over $1,000 of unrelated business your SIMPLE IRA upon 30 days’ prior written notice to you. taxable income for any year, you are required to arrange If UBS Financial Services Inc. appoints a successor custodian for the preparation of IRS Form 990-T (as well as any upon its resignation, you will be treated as accepting the required State or local tax returns). Any tax, penalties or successor custodian’s appointment unless you notify UBS interest that may be assessed against your SIMPLE IRA or Financial Services Inc. within 30-days of being notified of UBS Financial Services Inc. in its capacity as custodian of UBS Financial Services Inc.’s resignation that you reject the your SIMPLE IRA as a result of your failure to timely file appointment of that successor. If UBS Financial Services any tax return will be charged as an expense of your Inc. does not appoint a successor custodian or you reject SIMPLE IRA. the successor appointed by UBS Financial Services Inc., then you must appoint a successor custodian for your Also, if any tax return or tax claim relating to your SIMPLE SIMPLE IRA within that 30-day period. If you fail to appoint IRA requires the signature of UBS Financial Services Inc. a successor custodian within such 30-day period, UBS as custodian of your SIMPLE IRA you should arrange to Financial Services Inc. may distribute the balance in your have the original and one copy of the required return SIMPLE IRA to you, and you may be liable for income or claim delivered to your Financial Advisor at least two and penalty taxes on that distribution. See Section I weeks before the date that tax return or tax claim is due, “Tax Matters” for additional tax withholding information. accompanied by a stamped envelope addressed to the taxing authority to which you wish the return or claim If you remove UBS Financial Services Inc. as custodian mailed. However, UBS Financial Services Inc. will not be of your SIMPLE IRA or transfer your SIMPLE IRA for any reviewing any tax return or tax claim to determine whether reason, UBS Financial Services Inc. may deduct and it is complete or correct. If any tax is to be paid with any withhold from the amount being distributed or transferred tax return, you should also provide your Financial Advisor any unpaid fees and administrative expenses, as well as the with instructions regarding such payment. Any refunds of fees attributable to any transfer or distribution. tax obtained as a result of the filing of any tax refund claim will be credited to your SIMPLE IRA when received by UBS Financial Services Inc.

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54 Custodial Agreement for SIMPLE Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About Retirement Accounts

The Client named in the Adoption Agreement desires revocation of the Custodian decision applies. If the to establish or continue a SIMPLE retirement account (a Client fails to provide the Custodian with instructions “SIMPLE IRA”), as defined in Section 408(p) of the Internal within such thirty-day period, the Client shall be Revenue Code of 1986, as amended (the “Code”), and deemed to have elected to receive an in-kind the Client has designated this SIMPLE IRA in the Adoption distribution of such investment. Agreement as a SIMPLE IRA. 3.2 No part of the assets in the SIMPLE IRA may be UBS Financial Services Inc., as custodian (the “Custodian”), invested in life insurance contracts, nor may the has given the Client the Disclosure Statement as required assets in the SIMPLE IRA be commingled with other under Section 408(i) of the Code. The Client acknowledges property except in a common trust fund or common having received and read the Disclosure Statement and all investment fund (within the meaning of Section of the documents referred to in the Disclosure Statement. 408(a)(5) of the Code).

The Client and the Custodian, by execution of the 3.3 No part of the assets in the SIMPLE IRA may be Adoption Agreement made a part hereof, agree as follows: invested in collectibles (within the meaning of Section 408(m) of the Code). ARTICLE I – Contribution Limit 1.1 Except in the case of a rollover or a transfer of assets 3.4 The Client may select a sweep option (from those from another SIMPLE IRA of the Client, the only available to the SIMPLE IRA) into which uninvested contributions to this SIMPLE IRA which are allowed cash balances in the SIMPLE IRA will be invested and are cash contributions under a qualified salary reinvested. If a Client fails to elect a sweep option, reduction arrangement as described in Section 4O8(p) the Custodian may automatically sweep uninvested (2) of the Code. cash balances into a sweep option consistent with the other agreements then in effect between the Client and Custodian. ARTICLE II – Exclusive Benefit and Nonforfeitable Interest 3.5 All investments in the SIMPLE IRA shall be made or 2.1 The SIMPLE IRA is established for the exclusive directed by the Client in such amounts and at such benefit of the Client or his or her Beneficiaries. times as the Client (or a person authorized by the Client) shall instruct and shall be made through the 2.2 The Client’s interest in the balance in the facilities of the Custodian. The Custodian shall not SIMPLE IRA is nonforfeitable at all times. have any duty to question the Client’s investment instructions or to render any advice to the Client ARTICLE III – Investments regarding the value of any investment or to make 3.1 Unless agreed to in a separate written contractual recommendations regarding the advisability of arrangement with UBS Financial Services Inc. investing in, holding or selling any investment, unless providing otherwise, the Client shall direct the otherwise agreed to in writing by the Custodian. investments in the SIMPLE IRA. Such investments Not having any discretionary authority over the may be made in: investment of the assets in the SIMPLE IRA or any responsibility for rendering any investment advice (a) marketable securities that are traded by, or with respect to the assets in the SIMPLE IRA, the obtainable through, the Custodian either “over- Client agrees that the Custodian shall not be liable the-counter” or on a recognized exchange; for any loss which may result from the investment (b) shares of open-ended regulated investment of any asset in the SIMPLE IRA. companies; (c) and other investments the Custodian in its sole 3.6 The Custodian shall effect all investment directions discretion agrees to hold pursuant to its policies hereunder and execute any purchases and sales of and procedures then in effect investments for, and on behalf of, the SIMPLE IRA.

The Custodian may condition its decision to allow The Custodian shall maintain records of any an investment to be held in the SIMPLE IRA upon the transactions effected by it. The brokerage account receipt of an agreement from the Client containing maintained in connection herewith shall be in the such terms, conditions and representations and name of the Custodian for the benefit of the Client. warranties as the Custodian shall determine. The All assets of the SIMPLE IRA (including annuity or Custodian’s decision to permit the holding of any insurance contracts held in the SIMPLE IRA) shall investment in the SIMPLE IRA shall not constitute be registered in the name of the Custodian or of a approval of the investment merits of the investment nominee (and the same nominee may be used with nor a judgment as to the prudence or advisability respect to assets of other investors whether or not of the investment. held under agreements similar to this one or in any fiduciary capacity whatsoever); provided however, The Custodian reserves the absolute right to revoke that the Custodian may hold any security in bearer its decision to permit the holding in the SIMPLE IRA form or by or through a central clearing corporation of any investment at any time and for any reason, maintained by institutions active in the national and the Custodian shall have no liability for any securities markets. loss, damage or expense suffered or incurred by the Client by reason of the revocation of the Custodian’s 3.7 The Client shall have the sole responsibility to decision. If the Custodian notifies the Client that determine whether the acquisition, holding it revokes its decision, then within thirty (30) days or disposition of any asset in the SIMPLE IRA after such notice is given the Client shall instruct the (a) complies with the limitations applicable to Custodian as to the liquidation, distribution, transfer investments by individual retirement accounts, or other disposition of the investment to which the including, without limiting the generality of the

55 About Your UBS Account: Custodial Agreement for SIMPLE Retirement Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About foregoing, the limitations contained in Sections 3.2 (a) If the Designated Beneficiary is someone and 3.3 hereof, or (b) is a “prohibited transaction” other than the Client’s surviving spouse, the under Section 4975 of the Code. The Client warrants remaining interest is required to be distributed that any investment or other instructions given to over the remaining life expectancy of the the Custodian will comply with such limitations and Designated Beneficiary, with such life expectancy will not constitute a prohibited transaction. The determined using the Beneficiary’s age as of his Custodian shall have no liability to the Client for any or her birthday in the year following the year of tax, penalty, loss or liability as a result of failure to the Client’s death, or over the period described comply with such rules. in paragraph (c) below if longer. (b) If the Client’s sole Designated Beneficiary is the ARTICLE IV – Contributions Client’s surviving spouse, the remaining interest 4.1 The Custodian may accept contributions from or on is required to be distributed over such spouse’s behalf of the Client, and unless otherwise specified life or over the period described in paragraph by the Client, the Custodian shall assume that all (c) below if longer Any interest remaining after contributions received are attributable to the taxable such spouse’s death is required to be distributed year in which they are received by the Custodian. over such spouse’s remaining life expectancy determined using the spouse’s age as of his or ARTICLE V – Distributions her birthday in the year of the spouse’s death, 5.1(a) Notwithstanding any provision of this SIMPLE or, if the distributions are being made over the IRA to the contrary, the Client acknowledges period described in paragraph (c) below, over that he or she is required to ensure that the such period. distribution of his or her interest in the SIMPLE (c) If there is no Designated Beneficiary, or if IRA is made in accordance with the requirements applicable by operation of paragraph (a) or under Section 408(a)(6) of the Code and the (b) above, the remaining interest is required Treasury Regulations thereunder, the provisions to be distributed over the Client’s remaining of which are herein incorporated by reference. life expectancy determined in the year of the If distributions are made from an annuity Client’s death. contract purchased from an insurance company, (d) The amount required to be distributed each year distributions thereunder must satisfy the under paragraph (a), (b) or (c), beginning with requirements of Temporary Treasury Regulation the calendar year following the calendar year Section 1.401 (a)(9)-6T Q&A 4, rather than of the Client’s death, is the quotient obtained paragraphs (b), (c) and (d) below and Sections by dividing the value of the SIMPLE IRA as of 5.2, 5.3, 5.4 and 5.5, as applicable. the end of the preceding year by the remaining (b) Client acknowledges that the Client is life expectancy specified in such paragraph. Life responsible for ensuring that the entire interest expectancy is determined using the Single Life in all individual retirement accounts (including Table in Treasury Regulation Section 1.401 (a) this SIMPLE IRA) (other than an IRA established (9)-9 Q&A-1. under Section 408A of the Code) must begin to (e) If distributions are being made to a surviving be distributed by the April 1st following the end spouse as the sole Designated Beneficiary, of the calendar year in which the Client attains such spouse’s remaining life expectancy for age 70½ (the “Required Beginning Date”) over a year is the number in the Single Life Table the life of the Client or the lives of the Client corresponding to such spouse’s age in the year. and his or her Designated Beneficiary. For In all other cases, remaining life expectancy for purposes of this section 5.1, all of the Client’s a year is the number n the Single Life Table IRAs, including this SIMPLE IRA, shall be treated corresponding to the Beneficiary’s or Client’s as a single IRA and the required minimum age in the year specified in paragraph (a), (b) or distributions calculated for this SIMPLE IRA may (c) and reduced by 1 for each subsequent year. be withdrawn from another IRA of the Client in accordance with Treasury Regulation Section 5.3 If the Client dies before the Required Beginning 1.408-8 Q&A 9, as determined by the Client. Date, his or her entire interest is required to be (c) The amount to be distributed each year, distributed at least as rapidly as follows: beginning with the calendar year in which the Client attains age 70½ and continuing through (a) If the Designated Beneficiary is someone other the year of death, shall not be less than the than the Client’s surviving spouse, the entire quotient obtained by dividing the value of the interest is required to be distributed, starting SIMPLE IRA (as determined under Section 5.4) by the end of the calendar year following the as of the end of the preceding year by the calendar year of the Client’s death, over the distribution period in the Uniform Lifetime Table remaining life expectancy of the Designated in Treasury Regulation Section 1 .401(a)(9)-9 Beneficiary, with such life expectancy Q&A 2, using the Client’s age as of his or her determined using the age of the Beneficiary birthday in the year. However, if the Client’s as of his or her birthday in the year following sole Designated Beneficiary is his or her surviving the year of the Client’s death, or, if elected, in spouse and such spouse is more than 10 years accordance with paragraph (c) below. younger than the Client, then the distribution (b) If the Client’s sole Designated Beneficiary is the period is determined under the Joint and Last Client’s surviving spouse, the entire interest is Survivor Table in Treasury Regulation Section required to be distributed, starting by the end of 1.401 (a)(9)-9 Q&A 3, using the ages of the the calendar year following the calendar year of Clients and spouse’s birthdays in the year the Client’s death (or by the end of the calendar (d) The required minimum distribution for the year year in which the Client would have attained the individual attains age 70½ can be made age 70½, if later), over such spouse’s life, or, if as late as April 1st of the following year. The elected, in accordance with paragraph (c) below. required minimum distribution for any other If the surviving spouse dies before distributions year must be made by the end of such year. are required to begin, the remaining interest is required to be distributed, starting by 5.2 If the Client dies on or after the Required Beginning the end of the calendar year following the Date, the remaining portion of his or her interest in calendar year of the spouse’s death, over the this SIMPLE IRA is required to be distributed at least spouse’s Designated Beneficiary’s remaining life as rapidly as follows: expectancy determined using such Designated Beneficiary’s age as of his or her birthday in

56 About Your UBS Account: Custodial Agreement for SIMPLE Retirement Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About the year following the death of the spouse, not be required to make any distribution from or, if elected, is required to be distributed in this SIMPLE IRA unless the Client or the Client’s accordance with paragraph (c) below. If the beneficiary, as applicable, requests that distribution surviving spouse dies after distributions are in accordance with UBS Financial Services Inc.’s required to begin, any remaining interest is procedures. The Custodian shall have no duty or required to be distributed over the spouse’s responsibility to initiate the making, to calculate remaining life expectancy determined using the amount of, or see to the application of any the spouse’s age as of his or her birthday in distribution from the SIMPLE IRA. In addition to the year of the spouse’s death. receiving proper instructions from the Client relating (c) If there is no Designated Beneficiary, or if to the distribution and being advised of the reason applicable by operation of paragraph (a) or for the distribution, the Custodian may condition (b) above, the entire interest is required to be any distribution (or any assignment of the SIMPLE distributed by the end of the calendar year IRA) upon the Custodian’s receipt of any and all containing the fifth anniversary of the Client’s applications, certificates, tax waivers, signature death (or of the spouse’s death in the case of guarantees and other documents (including proof the surviving spouse’s death before distributions of any legal representative’s authority) deemed are required to begin under paragraph (b) necessary or advisable by the Custodian, in the above). Custodian’s sole judgment. The Custodian shall (d) The amount to be distributed each year under have no liability for any loss, tax or penalty incurred paragraph (a) or (b) is the quotient obtained by by the Client by reason of the Custodian’s failure dividing the value of the SIMPLE IRA as of the to comply with any instruction for distribution or to end of the preceding year by the remaining life establish separate accounts until the Custodian has expectancy specified in such paragraph. Life received all information and documents which it, in expectancy is determined using the Single Life its sole judgment, requires. The Client acknowledges Table in Treasury Regulation Section 1.401 (a) that the Custodian shall not be liable for any tax (9)-9 Q&A-1. If distributions are being made or penalty imposed upon the Client if the Client to a surviving spouse as the sole Designated fails to receive any minimum distribution from the Beneficiary, such spouse’s remaining life SIMPLE IRA. expectancy for a year is the number in the Single Life Table corresponding to such spouse’s age 5.8 The term “Beneficiary” means the person or in the year. In all other cases, remaining life persons designated as such by the Client in a form expectancy for a year is the number in the Single acceptable to, and accepted by, the Custodian. Life Table corresponding to the Beneficiary age The designation may name persons, estates, trusts in the year specified in paragraph (a) or (b) and or entities to take upon the contingency of survival. reduced by 1 for each subsequent year. However, if the designation does not effectively dispose of the entire SIMPLE IRA as of the time 5.4 The “value” of the SIMPLE IRA includes the such distribution is to commence, then (effective amount of any outstanding rollover, transfer and for clients dying after December 31, 2003) as to recharacterization under Treasury Regulation Section the SIMPLE IRA (or any part not effectively disposed 1.408-8 Q&As 7 and 8. of) the term “Beneficiary” shall mean the Client’s surviving spouse, then the Client’s estate. The 5.5 A Client’s surviving spouse who is the sole form last accepted by the Custodian before the Designated Beneficiary of this SIMPLE IRA may elect Client’s death shall be controlling, whether or not to treat this SIMPLE IRA as his or her own SIMPLE it fully disposes of the entire SIMPLE IRA, and shall IRA by redesignating this SIMPLE IRA (in accordance revoke all such prior designations. The Beneficiary with the procedures established by the Custodian) designated by the Client, following the death of the as a SIMPLE IRA in the name of such surviving Client, may name a person or persons entitled to spouse (rather than as a Beneficiary of the Client). receive any assets remaining in the SIMPLE IRA upon A surviving spouse of a deceased Client will also be the death of the original Beneficiary (the “Successor deemed to make that election by failing to cause the Beneficiary”) who shall be designated by the original distribution to the surviving spouse as Beneficiary of Beneficiary in a form acceptable to, and accepted the amount required to be distributed pursuant to by, the Custodian. If no successor Beneficiary this Article V following the death of the Client within is designated for any of the assets remaining in the time period required. A surviving spouse who the SIMPLE IRA upon the death of the original makes that election will thereafter be deemed to be Beneficiary, effective for beneficiaries dying after the Client hereunder. December 31, 2003, such remaining assets shall be paid to the surviving spouse, then to the estate 5.6 The Beneficiary must notify the Custodian (in a of (or other appropriate legal representative of, or manner acceptable to the Custodian) of any election successor to) the original Beneficiary. Provisions desired to be made by the Beneficiary hereunder, of this Agreement applicable to the Beneficiary including an election to establish separate accounts shall include, where appropriate, the Successor with respect to this SIMPLE IRA. The Custodian Beneficiary. shall have no duty, obligation or responsibility to notify the Beneficiary as to the Beneficiary’s 5.9 The term “Designated Beneficiary” means a obligations hereunder, nor shall the Custodian have Beneficiary who constitutes a designated beneficiary any obligation or responsibility to determine the or beneficiaries as determined in accordance with amount that must be distributed from the SIMPLE the rules in Treasury Regulation Section 1.401 (a) IRA at any time. The Custodian shall not be liable (9)-4. for any tax or penalty imposed upon the Beneficiary if the Beneficiary fails to receive any distribution, or 5.10 If during a taxable year the Client contributes an the requisite minimum distribution from his or her amount that exceeds the amount which may be account. For purposes of Sections 5.2 and 5.3, a contributed by the Client for such year, then the Beneficiary may aggregate IRAs for purposes of the Client shall notify the Custodian in writing that an required minimum distribution rules in accordance excess contribution has been made, stating the with Treasury Regulation Section 1.408-8 Q&A 9. reason therefore, the taxable year of the Client to which the excess relates and the amount of the 5.7 Regardless of any other provision of this Agreement excess (together with earnings attributable thereto (or any other instruction received, such as a if necessary), and the Custodian shall distribute to beneficiary designation), the Custodian shall the Client in an amount of cash, or property with a

57 About Your UBS Account: Custodial Agreement for SIMPLE Retirement Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About fair market value at the time of distribution, equal to forth herein, the Client agrees that the Custodian the sum of such excess and the earnings attributable shall not be liable to the Client for any loss, liability, thereto if required. Any excess contributions that cost or expense incurred by the Client as a result of arise and that do not exceed the maximum amount any act of commission or omission by the Custodian which may be contributed under Section 219 of the in performing the responsibilities set forth herein, Code may be treated by the Client as a contribution except as a result of gross negligence or willful in the then current or a succeeding taxable year misconduct by the Custodian. In its discretion, the instead of being so distributed; provided, however, Custodian may delegate to one or more agents the that in such event the Client may still be liable for responsibility to carry out any of its responsibilities, taxes and penalties between the year in which the may compensate such agents for expenses attendant excess contribution was actually made and the year to those responsibilities, and the Client agrees that in which such amount is subsequently treated as the Custodian shall not be liable for any act or having been contributed. omission of any agent (whether or not constituting gross negligence or willful misconduct) to whom it 5.11 Prior to the expiration of the two-year period has delegated any such responsibility. beginning on the date the Client first participated in any SIMPLE IRA plan maintained by the Client’s 7.2 The parties do not intend that the Custodian shall employer, any rollover or transfer by the Client have any discretionary authority or control or of funds from this SIMPLE IRA must be made to otherwise assume any fiduciary duties and none shall another SIMPLE IRA of the Client. Any distribution of be implied. The Custodian shall not be liable for (nor funds to the Client during this two-year period may assume any responsibility for) the deductibility of any be subject to a twenty-five percent (25%) additional contribution or the propriety of any contributions tax if the Client does not roll over the amount under this Agreement, or the purpose or propriety of of the distribution into a SIMPLE IRA. After the any distribution ordered in accordance with Article expiration of this two-year period, the Client may V, which matters are the sole responsibility of Client. roll over or transfer funds to any IRA of the Client that is qualified under Sections 408(a), (b) or (p) 7.3 The Custodian shall deliver, or cause to be delivered, of the Code, or to another eligible retirement plan to the Client all annuity policies, prospectuses, described in Section 402(c)(8)(B) of the Code. annual reports, proxies and proxy soliciting materials actually received by the Custodian involving assets ARTICLE VI – Custodial Agreement in the SIMPLE IRA. The Custodian shall not have any 6.1 The Client delegates to the Custodian the right to responsibility to vote any shares of stock or take amend this Agreement, whether prospectively or any other action, grant any consents or waivers, retroactively, provided that no amendment which exercise any conversion privileges or otherwise take is intended to take effect retroactively and which any action permitted to be taken with respect to any materially and adversely affects the Client shall asset in the SIMPLE IRA, unless otherwise agreed to be effective until the expiration of the thirty day in writing. period referred to in the succeeding sentence. The Custodian shall give notice to the Client of each 7.4 The Custodian may conclusively rely upon, and such amendment by mail, by including a notice in shall be protected in acting upon, any written, oral materials regularly distributed to IRA Clients, or by or electronic order from the Client or any notice, electronic media, and the Client shall be deemed request, consent, certificate or other instrument to have consented thereto unless, within thirty (30) or paper believed by it to be genuine and to have days after such notice is given, the Client either: (i) been properly executed, so long as it acts in good directs the Custodian to make a total distribution faith in taking or omitting to take any action in of all of the assets then in the SIMPLE IRA, or (ii) reliance thereon. If any such directions are not removes the Custodian and appoints a successor received as required or, if received, are unclear in in accordance with Article X hereof. The Custodian the sole opinion of the Custodian, the Custodian shall have the right to deduct from the amount may delay complying with such instructions, without distributed or transferred any unpaid fees or liability for any loss caused by any delay, pending expenses, including without limiting the generality receipt of such instructions or clarification as the of the foregoing, the annual maintenance fee and Custodian considers appropriate. In the event the any termination or transfer fees (whether or not Custodian receives any conflicting claims to some occasioned by the Client’s refusal to consent to or all of the assets in the SIMPLE IRA (including any amendment). any claim inconsistent with the then designation of Beneficiaries), the Custodian may, at its discretion 6.2 In the event that action is required to be taken by and without liability to any person by reason of the Client to certify its adoption of, or consent to, an taking any permitted action, (i) hold some or all of amendment to the SIMPLE IRA, the Client agrees to the assets in the SIMPLE IRA until it receives evidence take such action in a timely manner, and upon the satisfactory to the Custodian that ownership has request of the Custodian, to confirm or certify its been resolved, or (ii) deposit some or all of the assets timely action to the Custodian. in the SIMPLE IRA into the registry or custody of any court of competent jurisdiction together with 6.3 If at any time there is no balance in this SIMPLE IRA any such legal pleadings as the Custodian may with the Custodian, then this SIMPLE IRA shall be deem appropriate (charging the SIMPLE IRA for deemed terminated as of the first date there is no any costs or expenses, including attorney’s fees and balance in the SIMPLE IRA. disbursements, incurred in connection therewith).

6.4 The Client and the Custodian agree that the ARTICLE VIII – Reports and Tax Filings Custodian has the absolute right to amend, revise 8.1 The Client agrees to promptly provide to the or substitute fee schedules identified or referred to Custodian such information at such time and in in the Disclosure Statement, and no amendment, such manner as may be necessary or helpful for the revision or substitution of a fee schedule shall be Custodian to prepare or file any reports pursuant deemed an amendment of this Agreement. to Section 408(i) of the Code and the Treasury Regulations thereunder. ARTICLE VII – Administration of the SIMPLE IRA 7.1 The Custodian shall be responsible only for carrying 8.2 The Custodian agrees to prepare and furnish annual out the responsibilities specifically set forth herein calendar- year reports relating to the status of the and no others. In performing the responsibilities set SIMPLE IRA, including any contributions to, and

58 About Your UBS Account: Custodial Agreement for SIMPLE Retirement Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About distributions from (including information concerning to pay such amounts. The Custodian will sell shares required minimum distributions), the SIMPLE IRA first from the largest position (by value based on the as required by the Code and the Commissioner of previous day’s NAV) subject to a front-end load or Internal Revenue. If contributions made on behalf sales charge, continuing with successively smaller of the Client pursuant to a SIMPLE plan established positions as necessary. Next, the Custodian will by the Client’s employer under Section 408(p) of sell the largest position that could be subject to a the Code are received directly by the Custodian back-end load, continuing with successively smaller from the employer for any year, the Custodian will positions as necessary. Finally, the Custodian will provide the employer with the summary description sell the largest position in no-load funds, continuing required by Section 408(I)(2)(B) of the Code. with successively smaller positions as necessary. The Custodian will effect required transactions in a single 8.3 Client shall prepare and submit (or if such return or day up to the systematic limits, and if all required report requires the signature of the Custodian, shall transactions cannot be completed in a single day, submit such return or report to the Custodian at the Custodian will process transactions for all least 10 days in advance of the due date thereof and retirement accounts first, in the alphanumeric order accompanied by a stamped addressed envelope) any of the account number. The Custodian will not sell other return or report required or advisable under shares of offshore funds or closed-end funds in this the Code by reason of any investment in the SIMPLE process. If the sale does not result in sufficient funds, IRA, including, without limiting the generality of the the unpaid debit balance will remain due. You may foregoing, any return or report required as a result incur applicable contingent deferred sales charges of (i) realizing any gross income from any unrelated and transaction fees as a result of these sales. The trade or business or unrelated debt financed income; Custodian shall not be liable to the Client for any (ii) the occurrence of a windfall profits tax; or (iii) any losses or lost profits relating to these sales. other return or report necessary to obtain any credit or refund of tax previously paid. 9.5 The Client shall indemnify the Custodian and hold the Custodian harmless from and against any and ARTICLE IX – SIMPLE IRA Fees and Expenses; Tax all loss, liability, cost or expense (including attorneys’ Withholding fees and disbursements): (i) incurred by or asserted 9.1 The Custodian, for its service as the Custodian of the against the Custodian by reason of the Custodian SIMPLE IRA, shall receive the various fees identified serving as Custodian of this SIMPLE IRA, except or referred to in the Disclosure Statement, which those which arise due solely to the Custodian’s gross fees the Custodian reserves the absolute right to negligence or willful misconduct; (ii) with respect revise at any time or from time to time, subject to the acquisition, holding or disposition of any only to the notice period provided in the Disclosure investment, or (iii) the making or failing to make any Statement. Further, the Custodian shall receive distribution. The Custodian shall not be obligated or such additional fees or compensation for additional expected to commence or defend any legal action or extraordinary services either deemed by the or proceeding in connection with the SIMPLE IRA Custodian to be necessary to conserve the assets unless agreed upon by the Custodian and the Client, of the SIMPLE IRA or requested by the Client, plus, and unless the Custodian is fully indemnified to its in either case, reimbursement for all out-of-pocket satisfaction for so doing. expenses incurred in connection therewith. 9.6 In the event that the Custodian has agreed in 9.2 The Custodian shall also receive such fees and writing to, and is acting as a “designated financial compensation for effecting or executing securities institution” (within the meaning of Section 4O8(p) transactions on behalf of the SIMPLE IRA and for (7) of the Code) under the terms of a SIMPLE Plan such other broker-dealer services in connection established by the Client’s employer under Section therewith as requested by the Client, all of which 408 (p) of the Code, then in that event the Client shall be charged to the SIMPLE IRA. will be permitted to transfer his or her balance without cost or penalty (within the meaning of 9.3 Any income, gift, estate, unrelated business or Section 4O8(p)(7) of the Code) to another individual inheritance taxes and other taxes of any kind retirement account of the Client that is qualified whatsoever, including transfer taxes incurred in under Section 408(a), (b), or (p) of the Code, or to connection with the investment or reinvestment another eligible retirement plan described in Section of the assets of the SIMPLE IRA, that may be levied 402(c)(8)(B) of the Code. or assessed in respect of such assets, as well as any interest thereon and penalties with respect thereto, 9.7 If the Custodian has terminated the SIMPLE IRA and shall be charged to the SIMPLE IRA. elected to distribute all or any part of the assets in the SIMPLE IRA as provided herein and the Client 9.4 Any fees and other administrative expenses does not elect not to have the required tax withheld chargeable to the SIMPLE IRA may be paid directly from such distribution, then the Custodian may give by the Client (to the extent the payment of notice to the Client (a “Withholding Tax Notice”) such amount is not required to be treated as a requesting the Client to instruct the Custodian contribution) or may be paid from the SIMPLE IRA as to which assets should be sold to permit the if, the Client so instructs . In the event of a failure withholding of all taxes required to be withheld by the Client to pay such amounts when due, the with respect to each distribution. If the Client has Client hereby authorizes and directs the Custodian not furnished instructions to the Custodian within to deduct such amounts from the SIMPLE IRA, first ten (10) days after such Withholding Tax Notice, the from any uninvested cash, and then by liquidating Custodian shall follow the procedures in Section 9.4 any shares of a money market sweep fund, if held regarding sales of all of the shares of open-ended in the SIMPLE IRA, and if insufficient, and any other regulated investment companies in the SIMPLE sweep fund held in the SIMPLE IRA. IRA as if the Withholding Tax were a fee or other administrative expense under Section 9.4 due on If any fees or other administrative expenses remain the date the Withholding Tax Notice was given. unpaid, then notwithstanding any other provision of the agreements with the Custodian governing the ARTICLE X – Resignation or Removal of the Custodian Client’s accounts, the Custodian will, on the second 10.1 Upon thirty (30) days’ prior notice to the Custodian Monday in March each year, sell whole or fractional (or such shorter period as is accepted by the shares of open-end regulated investment company Custodian), the Client may remove the Custodian assets (“mutual funds”) held in the IRA sufficient as the custodian of this SIMPLE IRA. The Client’s

59 About Your UBS Account: Custodial Agreement for SIMPLE Retirement Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About notice to the Custodian must identify the successor IRA in a lump-sum in cash or in kind to the Client, custodian. subject to the Custodian’s right to reserve funds as provided in Section 10.2. The Custodian may resign at any time upon thirty (30) days’ notice to the Client. The Custodian shall 11.2 The termination of the SIMPLE IRA shall not resign and substitute another custodian if the terminate the Client’s obligations, representations Custodian receives notice from the Commissioner or agreements nor the Custodian’s rights or of Internal Revenue that such substitution is remedies, including the Client’s obligation in required because it has failed to comply with the Section 9.5 hereof to indemnify the Custodian. requirements of Section 1.408-2(e) of the Income The Custodian obligations under this Agreement Tax Regulations. Except as required above, upon shall terminate upon termination of this SIMPLE IRA, its resignation, the Custodian may, but shall not be and upon delivery or distribution of any assets in required to, appoint a qualifying successor custodian. the SIMPLE IRA to, or upon order of, the Client, the If the Custodian upon its resignation appoints a Custodian shall be relieved from all further liability successor and the Custodian does not receive from under this Agreement with respect to the assets so the Client within thirty (30) days of its resignation delivered or distributed. written notice from the Client that the Client rejects the designated successor, then the Client will be 11.3 This SIMPLE IRA may be revoked at any time within deemed to have ratified, confirmed and accepted seven (7) days after the date on which the Client the Custodian’s appointed successor. received the initial Disclosure Statement (including the Disclosure Statement in connection with a If the Custodian resigns without appointing a predecessor individual retirement arrangement); a successor, or if the Client rejects a successor SIMPLE IRA which is established more than seven appointed by the Custodian, the Client shall appoint (7) days after the date of the receipt of the initial a successor custodian within thirty (30) days of Disclosure Statement may not be revoked. A Client the Custodian’s resignation. Failure to appoint who wishes to revoke the SIMPLE IRA in accordance a successor custodian in the required time shall with the foregoing may do so by mailing or result in the termination of this SIMPLE IRA and delivering a written revocation, or a revocation by distribution of the assets in the SIMPLE IRA. electronic media if permitted by applicable law, to the Custodian at the address which appears at the Notwithstanding the transfer of the assets of end of the Disclosure Statement. Mailed notice will the SIMPLE IRA to a successor custodian or the be deemed given on the date that it is postmarked distribution of the assets of the SIMPLE IRA upon (or, if sent by certified or registered mail, on the termination of the SIMPLE IRA, the Client (and the date of certification or registration), or if given by SIMPLE IRA) shall remain liable for payment in full electronic media, the electronic postmark. In the of all of the fees and other administrative charges event that the Client decides to revoke the SIMPLE and any expenses then due and payable or which IRA and does so within such seven-day period, the become due and payable as a result of, upon or Client is entitled to a return of the entire amount of following any transfer or distribution of the assets the consideration paid by the Client into the SIMPLE of the SIMPLE IRA described in Article IX. IRA, without adjustment for such items as brokerage commissions and fees, administrative expenses or 10.2 To qualify, a successor custodian shall be a bank, fluctuations in market value. insured credit union, or other person satisfactory to the Secretary of the Treasury pursuant to Section ARTICLE XII – Miscellaneous 1.408-2(e) of the Income Tax Regulations. The 12.1 “UBS Financial Services Inc.” shall mean UBS Client represents and warrants that any successor Financial Services Inc., a Delaware corporation, and custodian appointed by the Client is qualified to any successor corporation by merger, consolidation act as a custodian of this SIMPLE IRA. Upon receipt or liquidation, as well as any other entity to which by the Custodian of notice (whether written or UBS Financial Services Inc. has transferred all or a electronic) of the appointment by the Client of a substantial portion of its retail brokerage business. successor custodian, the Custodian shall transfer and pay over to such successor the assets of the SIMPLE 12.2 If UBS Financial Services Inc. is a party to any other IRA. Notwithstanding the foregoing, the Custodian agreement with the Client, nothing contained herein is authorized to reserve such sum of money or other shall be construed to diminish, reduce or eliminate property as it may deem advisable for payment of all any rights which UBS Financial Services Inc. may its fees, compensation, costs, and expenses, or for have under this Agreement nor shall anything in payment of any other liabilities actually or potentially this Agreement be construed to diminish, reduce constituting a charge on or against the assets of or eliminate any obligations of the Client under the SIMPLE IRA or on or against the Custodian. Any any such other agreement. To the extent not balance of such reserve remaining after the payment inconsistent herewith, all of the terms and provisions of all such items is to be paid over to the successor of UBS Financial Services Inc.’s Client Relationship custodian. Agreement and New Account Booklet (and any successors to such documents) are incorporated 10.3 The Custodian shall not be liable for the acts or herein by reference. omissions of any successor custodian, even if such successor custodian has been appointed by the 12.3 Any notice to the Client pursuant to this Agreement Custodian. shall be deemed given upon mailing to the Client (by any class of mail) at the last address of the ARTICLE XI – Termination of the SIMPLE IRA Client appearing on the records of the Custodian 11.1 The Custodian may terminate the SIMPLE IRA if or upon the date of transfer by electronic means to within thirty (30) days after the resignation or the Client if such electronic transfer is permitted by removal of the Custodian, no custodian has been applicable law. Any notice given by the Custodian appointed as successor custodian or the successor may be given separately, may be included with any custodian appointed by the Client fails or refuses to brokerage account statement mailed or sent (either accept any asset in the SIMPLE IRA transferred by the by hard copy or by electronic media, if permitted by Custodian to such successor custodian. To effectuate applicable law) to the Client or may be included in the termination of the SIMPLE IRA, the Custodian any announcement in any periodic communication shall distribute any assets remaining in the SIMPLE to Clients of the Custodian.

60 About Your UBS Account: Custodial Agreement for SIMPLE Retirement Accounts Retirement SIMPLE for Agreement Custodial Account: UBS Your About 12.4 Client shall not have the right or power to anticipate The Custodian has advised the Client that if the any part of the SIMPLE IRA or to sell, assign, transfer, Client has any questions as to the treatment of pledge or hypothecate any part thereof. The SIMPLE any transaction involving the Client’s SIMPLE IRA IRA shall not be liable for the debts of the Client under the Code and the Treasury Regulations, the or subject to any seizure, attachment, execution application of any State or local income tax laws, or other legal process in respect thereof, except as or the effect of any other tax, estate, inheritance provided by law. At no time shall it be possible for or property laws, the Client should obtain and rely any part of the income or assets of the SIMPLE IRA upon the advice of the Client’s personal tax advisor to be used for, or diverted to, purposes other than or attorney. for the exclusive benefit of the Client. The Client agrees that the Custodian has no 12.5 This Agreement shall be construed and administered responsibility or obligation to advise the Client as in accordance with the laws of the State of New to the tax treatment of any transaction or to caution York, without regard to the choice-of law principles the Client as to any adverse consequences of any thereof. transaction involving the SIMPLE IRA. The Client agrees that the Custodian will not be liable to the 12.6 This Agreement is intended to qualify as a “simple Client for any income taxes, penalties or other retirement account” as defined in Section 408(p) damages of any kind which may result from the of the Code. If any provisions of this Agreement Clients failure to follow these technical rules, or any are subject to more than one interpretation or claim of a failure of the Custodian to advise the any term used herein is subject to more than one Client (or of having advised the Client incorrectly) construction, such ambiguity shall be resolved in as to the tax treatment of any transaction involving favor of that interpretation or construction which the Client’s SIMPLE IRA. is consistent with that intent.

12.7 The Code and the Treasury Regulations thereunder contain numerous complex and technical rules relating to individual retirement accounts, including, but not limited to, rules as to early distributions, required minimum distributions, rollovers, prohibited transactions and the removal of excess contributions.

61 Intentionally Left Blank

62 A About Your UBS Account: Disclosure Statements and Custodial Agreements for Retirement Accounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your About otYu B con:Dslsr ttmnsadCsoilAreet o eieetAccounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your bout

As Required by Treasury Regulation 1.408-2(e)(7)(iii), UBS Financial Services Inc. is hereby furnishing you a copy of its written notice of approval to act as a custodian of IRAs

63 63 A About Your UBS Account: Disclosure Statements and Custodial Agreements for Retirement Accounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your About otYu B con:Dslsr ttmnsadCsoilAreet o eieetAccounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your bout

64 64 A About Your UBS Account: Disclosure Statements and Custodial Agreements for Retirement Accounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your About otYu B con:Dslsr ttmnsadCsoilAreet o eieetAccounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your bout

65 65 A About Your UBS Account: Disclosure Statements and Custodial Agreements for Retirement Accounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your About otYu B con:Dslsr ttmnsadCsoilAreet o eieetAccounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your bout

66 66 A About Your UBS Account: Disclosure Statements and Custodial Agreements for Retirement Accounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your About otYu B con:Dslsr ttmnsadCsoilAreet o eieetAccounts Retirement for Agreements Custodial and Statements Disclosure Account: UBS Your bout

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68 Additional Disclosures Disclosures Additional Account: UBS Your About

The UBS Rewards UBS Rewards Program accounts held in a particular capacity. A full copy of the Program is offered policy wording is available by asking your Financial Advisor. in connection with If you choose to participate in our UBS Rewards Program, the UBS American you can obtain the complete terms and conditions online at Neither the SIPC protection nor the supplemental Express Card and the www.ubs.com or by calling 800-762-1000 and requesting protection apply to: UBS Visa Signature them. (a) Certain financial assets controlled by (and included in credit card, and is a your account value) but held away from UBS Financial proprietary offering of The UBS Rewards Program is part of the UBS Card Services. For example certain: UBS Financial Services Inc. It is separate from Program, which is an optional feature of eligible UBS (i) Cash at UBS Bank USA (please refer to the UBS and independent of all Accounts. The UBS Card Program is a dual-card program Deposit Account Sweep Disclosure Statement) other rewards or points and features the UBS American Express® Card, which is (ii) Insurance products including variable annuities, and programs (including, linked to Accounts with cash management features and (iii) Shares of mutual funds where shares are registered without limitation, both the UBS Visa Signature® credit card, both issued by the directly in the name of the account holder on the Membership Rewards, Card Issuer. Both cards earn points in the UBS Rewards books and records of the issuer or transfer agent; offered by American Program that can be used for merchandise, travel and gift (b) Certain investment contracts or investment interests Express, and any other certificates. (e.g., limited partnerships and private placements) that Visa rewards program). are not registered under the Securities Act of 1933; and “Card Issuer” means If you are enrolled in the UBS Card Program, you are (c) Commodities contracts (such as foreign exchange and Barclays Bank Delaware, automatically enrolled in the UBS Rewards Program at no precious metal contracts), including futures contracts its successors and additional cost. “Points” are the measure used to value and commodity option contracts. assigns, or the issuer of rewards for redemption. You are eligible to earn Points as UBS Cards we appoint in long as your account is open and in good standing. The SIPC protection and the supplemental protection do our sole discretion. not apply to these assets even if they otherwise appear on If you have enrolled in either a Premier or Charter level your statements. The SIPC protection and the supplemental Your UBS American Express Card(s) will be of the UBS Rewards Program you will be charged the protection do not protect against changes in the market mailed to you under applicable Program Level Fee annually. It will be billed to value of your investments (whether as a result of market separate cover after your Account based on the level you select. Please refer to movement, issuer bankruptcy or otherwise). your Account has been the UBS Rewards Program terms and conditions for more approved. information about the benefits of the levels of the UBS Ask your Financial Advisor for more information about Rewards Program. SIPC. To obtain more information, including the SIPC For purposes of the brochure, you may also contact SIPC directly visit the SIPC section “Account Points are subject to the terms and conditions of the UBS website at www.sipc.org or calling (202) 371-8300. Protection,” all references to UBS Rewards Program, which will be sent to you with your Financial Services refer cards. These terms and conditions, including rules for UBS Financial Services is not a bank and does not represent to UBS Financial Services participation, Point issuance, redemption levels for awards itself as a bank; your account is not a bank account. Unless Inc. and UBS Financial and award offerings, may be changed, added, deleted or otherwise disclosed, securities and other investments held Services Incorporated of substituted at any time. The UBS Rewards Program may be through UBS Financial Services ARE NOT FDIC INSURED, Puerto Rico. terminated as described in the UBS Rewards Program terms ARE NOT BANK GUARANTEED, AND MAY LOSE VALUE. and conditions. Please read them carefully. Your Financial Advisor can work with you on titling your accounts in a UBS Financial Services Business Continuity Plan way that helps maximize Account Protection your SIPC protection and Because of the global nature of our business, UBS is subject makes sense for you. Securities Investor Protection Corporation to a wide range of threats that could significantly disrupt As a UBS client, your account(s) are covered by certain our various businesses around the world at any time. As a The levels of protections that would go into effect in the unlikely result, we have precautionary and reasonable measures in supplemental SIPC event that UBS Financial Services Inc. fails financially. place that comprehensively manage the risk and protect insurance are subject UBS Financial Services Inc. and UBS Financial Services client information, assets, business information and internal to change. Please go to www.ubs.com/ Incorporated of Puerto Rico are members of the Securities processes from events that we can neither predict nor accountdisclosures or Investor Protection Corporation (SIPC). SIPC provides control. refer to the back of your protection for your account(s) at UBS Financial Services for account statement for up to $500,000, including $250,000 for free cash balances. Our precautionary and reasonable measures, which we additional information. call the “UBS Business Continuity Program,” provide The SIPC asset protection limits apply to all of your reasonable assurance of our ability to respond to significant accounts that you hold in a particular capacity. For disruptions. The Program includes risk and impact analysis, example, if you have two individual accounts at UBS recovery strategies and requirements, crisis management Financial Services where you are the sole account holder contingency plans, along with business and technology and a third account where you are a joint account recovery plans. holder, the two accounts are protected under SIPC up to a combined $500,000 (not $500,000 each). Your joint UBS’s Business Continuity Program conforms to the account would be protected under SIPC separately for requirements of various regulatory agencies, including the $500,000. Financial Industry Regulatory Authority (FINRA) and the Securities & Exchange Commission (SEC). In addition, the UBS Financial Services, together with certain affiliates, has program is subject to and has been reviewed by various also purchased supplemental protection. The maximum regulatory authorities. amount payable to all clients collectively under the supplemental policy is $500 million as of December 10, We have built our program in a way that should permit us 2009; we will notify you if the amount of supplemental to recover and resume operations within predefined time coverage changes. Subject to the policy conditions and frames following a major incident such as power outages, limitations, cash at UBS Financial Services is further natural disasters, pandemics or other situations. protected up to $1.9 million in the aggregate for all your

69 About Your UBS Account: Additional Disclosures Additional Account: UBS Your About Our Program’s Priorities We purchase dividend reinvestment shares on your behalf by one of two methods: In designing the program, we seek to achieve the following •• Through the UBS Dividend Reinvestment Program in goals. open market transactions or from our inventory, or •• Through the DTC Dividend Reinvestment Program. • Protect client assets, maintain the integrity of their personal information and ensure they have prompt Reinvestment Methods access to funds and securities • Ensure the welfare and safety of our staff For purchases made on the open market or from • Provide governance to ensure effective decisions, our inventory, we aggregate all dividends from your communications and guidance designated, eligible securities and purchase enough shares • Resume critical business processes and essential activity to complete those transactions for you. These reinvestment in a timely and effective manner transactions will be completed on the dividend payable date. You may receive an average price per share of the To accomplish this, we have established the following reinvestment purchase for each eligible security, if the protocols. shares are purchased in multiple transactions on multiple exchanges or through similar methods. • Information technology backup and recovery procedures • Crisis management teams to effectively provide For reinvestments made through DTC, we send the funds command and control to be reinvested to DTC, which purchases whole shares on • Specific communication and escalation procedures your behalf, consistent with its standard program and each • Alternate office locations and remote access company’s particular dividend reinvestment plan. • Regular testing, both internal and external, to validate the effectiveness of the plans The sale of shares to generate cash to pay residual balances may involve a small difference, positive or negative, We also have instituted a comprehensive Pandemic between the dividend reinvestment price supplied by the Preparedness program. Globally, our planning considers company and the market price at which the fractional guidance suggested by international agencies, government shares are sold. Generally, because of processing time, and non-government regulatory bodies such as the World reinvestments made through DTC may take 10 to 15 Health Organization. business days after the dividend payment date. The price per share you receive may be an average price in While UBS Financial Services continually assesses, updates, accordance with the terms of the company’s plan. and tests its Business Continuity Plans, no contingency plan can eliminate all risk of service disruption. Our ability Although we try to ensure that reinvestment will be to resume critical functions is also dependent upon the completed within the targeted time frames, extraordinary Business Continuity Plans established by third parties, market conditions or other circumstances could cause the including exchanges, vendors and financial service industry reinvestment process to be delayed or suspended. utilities. Monitoring Transactions

UBS Dividend Reinvestment Program Your Financial Advisor will have information about Disclosure Statement your dividend payments and subsequent reinvestment transactions the day after we purchase your shares. At that You can reinvest the Through the UBS Dividend Reinvestment Program, you time, you may call your Financial Advisor to request the dividends you receive can reinvest the dividends you receive for eligible common information. Transactions will be reflected on your account from eligible securities and preferred stocks, closed-end funds, real estate statement, along with any necessary information about in your Account through the UBS investment trusts and master limited partnerships listed on each dividend reinvestment transaction. We do not provide Dividend Reinvestment several major stock exchanges or quoted on the National individual trade confirmations for dividend reinvestment Program. To enroll in the Association of Securities Dealers Automated Quotation transactions, as we do for other transactions. program or to change Service (Nasdaq). UBS also offers dividend reinvestment for dividend reinvestment certain unit investment trusts, which permits you to invest If the dividends paid to you are ordinarily subject to instructions, call your those dividends in shares of designated UBS Global Asset taxation, they will continue to be taxable regardless of Financial Advisor. Management (US) Inc. mutual funds. (Prospectuses for whether they are credited to the Account in cash or these funds are available from your Financial Advisor.) reinvested. We recommend that you consult a qualified tax The Depository Trust Company or DTC is a advisor to review any questions about participating in the member of the U.S. We can also reinvest dividends from certain other securities Dividend Reinvestment Program. Federal Reserve System; for you through the Depository Trust Company (DTC), in a limited-purpose trust some instances, at a discount. We currently do not charge company under New commissions or fees for you to purchase securities through Revenue Sharing York State banking this program. Eligible securities must be held in “street law; and a registered name” (which means UBS Financial Services Inc. holds In addition to sales loads, 12b-1 fees and processing fees, clearing agency with the them for your benefit and for your account) in order to UBS receives other compensation from certain distributors Securities and Exchange Commission. participate in this program. Contact your Financial Advisor or advisors of mutual funds that we sell. These separate to enroll in dividend reinvestment, either for all eligible compensation amounts (commonly referred to as “revenue securities or for specific securities, or to change or cancel sharing”) are based on two components (i) the amount of your enrollment. Your enrollment and any changes will sales by UBS of a particular mutual fund family to our clients become effective within a reasonable time after we receive (excluding sales through wrap-fee programs), and your instructions. (ii) the asset value of a particular mutual fund family’s shares held by our clients at UBS. We require these payments to be We credit cash dividends you receive from eligible securities made directly from the distributor or advisor, and not from (less any required withholding) to your Account on the date the mutual funds or indirectly through mutual fund portfolio they are paid. We debit reinvestable dividends from eligible trading commissions, because revenue sharing payments are securities in your Account on the date received and use intended to compensate us for ancillary services related to them to purchase additional shares of the same security. sales of mutual fund shares. Revenue sharing compensation will not be rebated or credited to you. As we cannot purchase fractional shares, a specific number of whole shares plus a cash credit for any residual balance Updated and current information on these from the dividend payment will be credited to your arrangements is available on our website, Account at the end of the reinvestment process. at www.ubs.com/mutualfundrevenuesharing.

70 About Your UBS Account: Additional Disclosures Additional Account: UBS Your About Payment For Order Flow Tax Forms for non-U.S. clients If income earned in your accounts is effectively Order flow refers to the process by which your orders are connected with a U.S. executed. Seeking to execute a client’s order at the best In General trade or business, available price, a brokerage firm may execute the order as then you may have to principal, or may route the order to an affiliated or non- To adhere to appropriate regulations, certain UBS clients complete a Form W-8ECI affiliated broker-dealer or exchange specialist for execution. must complete an appropriate U.S. tax form and return it instead of a Form The Securities and Exchange Commission requires all to us. For most non-U.S. clients, the appropriate form is W-8BEN. brokerage firms, including UBS, to inform their clients as to the Form W-8BEN, which is available from your Financial whether they receive payment for order flow. Advisor. For other clients, the appropriate form may be a Please consult a qualified tax advisor as to whether Form W-8IMY or a Form W-8EXP. Form W-8IMY and Form Form W-8ECI is the We do not receive any payments for order flow W-8EXP and corresponding instructions for completing appropriate form for from any broker or dealer, national securities exchange, them are available from your Financial Advisor. your particular situation. registered securities association or exchange member to Following are descriptions of these forms and summaries You do not need which we route our client orders for execution. of instructions on how to complete them. Please review to provide a Tax the official instructions that accompany the forms and/ Identification Number or consult a qualified tax advisor to help determine (TIN) unless you want which form you should complete and for more detailed to claim the benefits of an international tax information and instructions. Neither UBS nor its Financial treaty on certain types Advisors provide tax or legal advice. of income. Examples of income include dividends from stock that is not actively traded and dividends from an Who should complete unregistered mutual Form this form Purposes Summary of Instructions fund. Refer to the official instructions for Form The beneficial owner of the • Represents that you are • Part I: Provide your name, how to obtain a TIN, if W-8BEN income earned in an account, a foreign person and the address and whether you necessary. when the income is not effectively beneficial owner of the income are an individual or entity. connected with the conduct of a earned in an account. This You generally do not need A “complex trust” is a U.S. trade or business. may avoid U.S. withholding tax to provide a taxpayer trust that is neither a on portfolio interest income. identification number (TIN). “grantor trust” nor a If the Account is owned by a • Claims the benefits of a tax If you have more than one “simple trust.” Each of the other trust types is “complex trust” or an estate. treaty between the U.S. and account, you should provide all discussed below. your country of residence. account numbers on this form. • Avoids U.S. information • Part II to claim the benefit of a A TIN is necessary reporting and backup tax treaty. only if you are a withholding on certain types • Part IV: Provide your signature “qualified” intermediary, of income including broker (or that of an individual a “withholding” trust proceeds, short-term original authorized to sign) in. or a “withholding” issue discount, bank deposit • If an account is owned jointly, partnership. interest, and foreign source each joint owner should If the person for whom interest, dividends, rents and complete a separate W-8BEN. you are an intermediary royalties. is a U.S. citizen, the citizen should complete Form If you are not the beneficial • Represents that you are a • Part I, provide the name, a Form W-9 -- not a W-8IMY owner of the income earned in foreign person and that you characterization for tax Form W-8BEN. an account, and if the Account are an intermediary receiving purposes and address of the is owned by a “grantor trust”, income on behalf of the Account. Generally, you need These are the “simple trust”, partnership, beneficial owner. not provide a TIN. If you have requirements if you agent, custodian or nominee with more than one account, you are a “nonqualified” respect to such income. should provide all account intermediary. Most numbers on this form. intermediaries are “nonqualified” • Check off Parts II, III, V intermediaries. or VI depending on the characterization of the To become a “qualified” Account for tax purposes. intermediary, the • Part VII: Provide a signature. intermediary must enter into an agreement with the U.S. Internal Revenue Service (“IRS”). A “qualified intermediary” generally would be permitted to provide less detailed information to us than a “nonqualified intermediary.”

71 About Your UBS Account: Additional Disclosures Additional Account: UBS Your About In general, a “grantor Additional Forms and Information If You are part of a Partnership—Each partner should trust” is a trust in which a grantor or settlor Characterization for tax purpose—When you use complete a Form W-8BEN and submit it to you. You retains certain interests a Form W-8IMY, you generally should provide us with should provide UBS with a statement that sets forth how or over which he or she additional information depending on the account’s the income earned in an account is allocated among retains certain powers characterization for tax purposes. Following is a summary such partners. You should also provide UBS with certain which cause him or of the additional information that may be required, as information about the nature of such partners by sending her to be treated as well as various characterizations that you may use for us the Forms W-8BEN (or other appropriate forms) that the owner of the trust tax purposes. Form W-8IMY is complex. We recommend you received from such partners or by including such property for U.S. income that you seek advice from a qualified tax advisor when information on the statement that sets forth the allocation tax purposes. completing this form. of income among such partners. In general, a “simple trust” in any taxable year If you are an agent, custodian or nominee is a trust that (i) requires (“intermediary”)—Have each person for whom you are Special Risks to You and Your Heirs all of its income to be an intermediary complete a Form W-8BEN or other The heirs of non-resident foreigners who die holding distributed currently; (ii) appropriate form and submit it to you. You should provide investments in the U.S. may be subject to substantial U.S. makes no distributions us with a statement that sets forth how the income earned estate taxes. Whether or not U.S. estate taxes will be out of corpus in such in an account is allocated among such persons. You should imposed depends on: year and (iii) does not provide for any amounts also provide us with certain information about the nature (i) Whether the assets in which he or she invested are to be paid to or set side of such persons, either by sending us the Form W-8BEN or deemed to have U.S. situs, which is described below for charity. other appropriate form (W-9, W-IMY, W-8EXP) that you (ii) The total value of his or her investments, and received from such persons or by including this information (iii) The provisions of the tax treaty (if any) between the If the grantor or on the statement that sets forth the allocation of income U.S. and his or her country of domicile, among other beneficiary is a U.S. among such persons. things. person, then he or she should complete a Form If the Account is owned by a “Grantor Trust” or “Simple Note that whether or not certain assets will be deemed to W-9 instead of a Form W-8BEN. Trust”—Have each grantor of the Grantor Trust and each have a U.S. situs is complicated and in many cases counter income beneficiary of the Simple Trust complete a Form intuitive. Generally, cash and debt obligations held as These are the W-8BEN and submit it to you. You should provide us with investments and not in connection with a U.S. trade or requirements for “non- a statement that describes how the income earned in an business are usually not considered to have a U.S. situs for withholding” trusts. account is allocated among such grantors and beneficiaries. U.S. estate tax purposes. On the other hand, stock of U.S. Most trusts are “non- You should also provide us with certain information about corporations will generally be deemed to have a U.S. situs. withholding” trusts. To the nature of such grantors and beneficiaries, either by become a “withholding” sending us the Forms W-8BEN (or other appropriate forms) If U.S. estate taxes do apply, the distribution of a trust, the trust must enter into an agreement that you received from such grantors and beneficiaries or foreigner’s assets to his or her heirs may be delayed with the U.S. Internal by including such information on the statement that sets significantly. Neither UBS nor its Financial Advisors provides Revenue Service (“IRS”). forth the allocation of income among such grantors and tax or legal advice. For a more complete explanation of the beneficiaries. U.S. estate tax system and appropriate tax planning, we If the partner is a U.S. recommend that you consult a qualified tax advisor. citizen, then the partner should complete a Form W-9 instead of a Form W-8BEN.

These are the requirements if you are a “non-withholding” partnership. Most trusts are “non-withholding” partnerships. To become a “withholding” partnership, the partnership must enter into an agreement with the U.S. Internal Revenue Service (“IRS”).

Even if a tax treaty applies and reduces the amount of U.S. estate tax, a foreigner’s executor will be required to file a U.S. estate tax return to claim the treaty benefits.

72 UBS Deposit Account Sweep Program Program Sweep Account Deposit Account: UBS Your About

We refer to funds on Summary Bank sets different interest rates for different “tiers” of deposit in the Deposit UBS clients. These interest tiers are based upon the total Accounts as “Deposited Under the UBS Deposit Account Sweep Program (the amount of eligible assets by Marketing Relationship that a Funds.” “Program”), free cash balances in eligible securities client holds with the Bank and UBS. accounts at UBS Financial Services Inc. and UBS Financial Throughout this Services Incorporated of Puerto Rico (collectively “UBS”) Clients with higher total eligible Marketing Relationship disclosure statement, are automatically deposited into interest bearing deposit assets will generally receive higher interest rates on “Program” refers to the accounts (the “Deposit Accounts”) at UBS Bank USA Deposited Funds than clients with lower total eligible UBS Deposit Account Sweep Program (Member FDIC) (the “Bank”). Marketing Relationship assets. Based on a historical described here. comparison of interest rates paid by the Bank and yields on alternative cash sweep options, clients with The “Bank” is UBS Bank FDIC Deposit Insurance, No SIPC Protection and Cap total eligible Marketing Relationship assets of less USA Election than $500,000 should expect to receive interest rates on their Deposited Funds which are substantially Deposited Funds will be eligible for federal deposit lower than the prevailing rate of return of alternative insurance from the Federal Deposit Insurance Corporation cash sweep options for their UBS accounts. Interest (the “FDIC”) up to $250,000 per depositor (including rates paid on the Deposited Funds may change daily. principal and accrued interest) for each insurable capacity Information regarding current interest rates on the Deposit (for example, individual, joint, etc.). Accounts and available alternative sweep options is available on line at www.ubs.com/sweepyields or by calling For example, deposits held by one individual will have an your Financial Advisor. For more detailed information on the FDIC insurance limit of $250,000, and a joint account items covered in this summary section, see “Interest Rates” owned by two individuals will have an FDIC insurance limit and “Alternatives to the Deposit Account Sweep Program”. of $500,000, in accordance with FDIC rules. For deposit insurance purposes, deposit accounts (including certificates of deposit issued by the Bank) that you may establish in the Financial Benefits to UBS Financial Services Inc. and same insurable capacity directly with the Bank or through Conflicts of Interest an intermediary, such as UBS, will be aggregated with the Deposit Accounts you establish through the Program in the UBS Financial Services Inc. receives an annual fee of up to same insurable capacity. The extent of, and limitations on, $25 from the Bank for each UBS securities account that federal deposit insurance are discussed in the section titled sweeps into a Deposit Account at the Bank. In addition, “FDIC Deposit Insurance.” Neither UBS, the Bank nor their UBS Financial Services Inc. and certain of its affiliates affiliates will monitor the amount of your Deposited Funds provide operational, investment advisory, sales and to determine whether those amounts exceed your FDIC marketing, loan servicing, technology and other support insurance limits. You are responsible for monitoring the services to the Bank, and receive compensation for those total amount of your funds on deposit with the Bank services. Like other depository institutions, the profitability in order to determine the extent of deposit insurance of the Bank is determined in large part by the difference coverage available to you on those deposits, between the interest paid and other costs incurred by it on including deposits in the Deposit Accounts. its deposits, and the interest or other income earned by the Bank on its loans, investments and other assets. Like other Unlike your UBS securities account, the Deposit Accounts depository institutions, the Bank improves its profitability are not protected by the Securities Investor Protection to the extent that it can lower the interest rates and fees Corporation (“SIPC”). SIPC provides protection for your paid on its deposits, including the Deposit Accounts. The securities account(s) at UBS for up to $500,000 per Bank has no obligation to pay interest based upon the customer, including a maximum of $250,000 for free Bank’s profitability or the income earned on Bank loans, cash balances at UBS in the unlikely event that UBS fails investments or other assets. For more detailed information financially. The SIPC insurance limits apply to all accounts on the items covered in this summary section, see “Your that you hold in a particular capacity. For more information Relationship With UBS and UBS Bank USA” and “Benefits on SIPC coverage please contact your Financial Advisor. to UBS and its Affiliates.”

You may elect to place a limit or “cap” on the amount of cash that will be swept into the Deposit Accounts. The limit Your Alternatives you may elect is $100,000 or more for an individual UBS account, and $200,000 or more for a joint UBS account. If If you are eligible to participate in the Program but do not you have multiple accounts in the same insurable capacity wish to have your available cash deposited with the Bank (for purposes of the FDIC insurance rules) at UBS, or if you through the Program, you may elect at any time to have hold other deposits (including certificates of deposit) at the your available cash automatically swept without limit into Bank, you may exceed the applicable FDIC insurance limits a tax-exempt UBS Money Market Fund or, for Puerto Rico even if you have placed a limit on the amount of cash that residents only, into the Puerto Rico Short Term Investment will be swept from those accounts into Deposit Accounts. Fund, Inc. Please note that clients with Basic Investment Accounts, IRAs and IRA-RMAs are not eligible to select a For more detailed information on the items covered in this tax-exempt sweep fund. summary section, see “Introduction”, “How the Program Works”, and “FDIC Deposit Insurance”. UBS also offers a number of investment products that you may wish to consider as alternatives to maintaining cash If you have questions deposits at the Bank through the Program. Your investment about interest rates Interest Rates objectives, liquidity needs and risk tolerance should be paid on your Deposit considered in reviewing these alternatives. Some of these Accounts or rates of Interest rates paid on your Deposited Funds are determined alternatives may pay an interest rate or dividend that is return on other sweep by the Bank in its discretion based upon a variety of higher than the rate you receive on the Deposit Accounts. options, call your factors, including economic and business conditions. The While deposits in the Deposit Accounts, certificates of Financial Advisor.

73 About Your UBS Account: Deposit Account Sweep Program Sweep Account Deposit Account: UBS Your About Your “Deposit Accounts” deposit and any other available deposit products offered CAP Election are interest-bearing FDIC-insured transaction by FDIC-insured depository institutions are covered by FDIC and money market insurance up to the applicable FDIC insurance limits, other You may place a limit, or “cap” on the amount of cash deposit accounts opened investment alternatives, such as money market mutual balances that will be swept into the Deposit Accounts by for you at the Bank. funds, are not FDIC-insured, are not guaranteed by a bank, contacting your Financial Advisor. The cap may be set at and may lose value. For more detailed information on the $100,000 or more for individual accounts and at $200,000 items covered in this summary section, see “Alternatives to or more for joint accounts (in each case, on a per-account “Free cash balances” the Deposit Account Sweep Program”. basis). If you choose a cap, amounts in excess of the cap include immediately will be swept into the UBS money market or other fund available funds not required to pay debits or that you select from those offered by UBS for this purpose charges to your Account. Introduction (the Sweep Funds”) without limit. For accounts that exceed the cap amount at the time the cap is elected, UBS will “Business days” are Resource Management Accounts (RMAs), IRA-RMAs, rebalance your Deposit Account to the cap level on the Monday through Friday. Business Services Account BSAs (BSAs), Coverdell Education following business day. Please be aware that the monthly Bank holidays in the Savings Accounts, and Individual Retirement Accounts interest accrued on the Deposit Accounts, will be credited State of New York of Eligible Participants are automatically enrolled in the on the fifth business day of each month (as of the fourth and New York Stock Program unless you have selected one of the other sweep business day of each month) and will not be subject to the Exchange holidays are not business days. options available. The other options are discussed in the cap. In this case, UBS will rebalance your Deposit Account section titled “Alternatives to the Deposit Account Sweep to the cap level on the day following the interest posting. “Sweep Funds” include; Program” below. During the intervening time, your Deposit Accounts may • UBS RMA Money exceed your cap level. Following the establishment of your Market Funds The Program will make the Deposit Accounts (a transaction cap, your election of a cap and your cap level will appear • UBS Retirement account (TA) and a money market deposit account (MMDA)) on your UBS periodic account statement. Money Fund and available to you at the Bank. Each business day, as long as • Puerto Rico Short all debits and charges to your Account have been satisfied, Prospectuses for the available Sweep Funds are Term Investment Fund, Inc. the free cash balances in your Account will automatically enclosed with this booklet; are available online at be transferred (“swept”) to your Deposit Accounts at the www.ubs.com/sweepyields, or may be obtained by These are fully described Bank, where they will be covered by FDIC insurance within contacting your Financial Advisor. An investment in a in the prospectuses applicable limits (see the “FDIC Deposit Insurance” section money market fund is not insured or guaranteed by the found with this booklet. below). We will sweep free cash balances of $1.00 or more FDIC or any other government agency. Although each from RMAs, or balances of $.01 or more from IRAs, into money market fund seeks to preserve the value of your For more information, your Deposit Accounts at the Bank without limit. investment at $1.00 per share, it is possible to lose money contact your Financial by investing in the money market funds. Money Market Advisor. By signing your UBS Client Relationship Agreement, you funds are sold by prospectus. Investors should consider Consider your investment authorize us to sweep funds to and from your Accounts the investment objectives, charges, and expenses and risk objectives, liquidity into Deposit Accounts at the Bank or into the other sweep factors carefully before investing. The prospectus contains needs and risk tolerance options you have chosen. this and other information. Please read it carefully before when you review any you invest. alternatives to the As required by federal banking regulations, the Bank Program. Some of reserves the right to require seven days prior notice before Please note that you will be responsible for them may carry a rate permitting a transfer of funds out of the Deposit Accounts. monitoring the total amount of deposits that you of return that is higher than that of the Deposit The Bank has no intention of exercising this right at the have with the Bank in order to determine the extent Accounts, but are not present time. of deposit insurance coverage available to you. FDIC-insured, are not Neither UBS nor UBS AG will be responsible for any guaranteed by a bank, insured or uninsured portion of the Deposit Accounts. and may lose value. Eligibility Please be aware that because UBS’s offer of a “cap” is on a per-account basis, if you have multiple accounts For more information, The Program is available only to individuals, trusts (as at UBS held in the same insurable capacity that sweep contact your Financial long as all beneficiaries of the trust accounts are natural into the Bank, or if you hold other deposits at the Advisor. persons or nonprofit organizations), sole proprietors and Bank (including CDs), you may exceed the applicable governmental entities (each an “Eligible Participant”). FDIC insurance limits even though you have elected Custodial accounts are eligible for the Program if each to cap the amount of cash balances that will be swept beneficiary is an Eligible Participant. Note, however, that into the Deposit Accounts. In this case, once cash in an Eligible Participant will be considered by UBS (at its your accounts exceeds the applicable FDIC insurance discretion) to be a non-Eligible Participant if UBS becomes limit (including) principal and accrued interest), then aware that the entity is prohibited as a matter of law from your aggregate funds on deposit with the Bank will holding funds at the Bank. exceed FDIC insurance coverage limits. Although deposits placed at the Bank in connection with the Other entities organized or operated to make a profit, such Program will be covered by FDIC insurance as, and to as corporations, partnerships, limited liability companies, the extent, described below, interests in the Sweep associations, business trusts or other organizations are Funds are not bank accounts and are not protected by not eligible for the Program. In addition, the Program is the FDIC. Balances in the Sweep Funds are covered by not currently available to certain specified types of clients SIPC and excess SIPC insurance obtained by UBS for including: your benefit. For more information on SIPC coverage, •• Nonprofit organizations, including organizations described please contact your Financial Advisor. in sections 501(c)(3) through (13) and (19) of the Internal Revenue Code of 1986, as amended (the “Code”), •• Estates, Alternatives to the Deposit Account Sweep Program •• Those enrolled in Investment Solutions programs (other than PACE and Employee Self-Directed Accounts), If you are eligible to participate in the Program but do not •• Private Wealth Solutions Clients, wish to have the free cash balances in your Account(s) •• Those who are not residents of the United States or deposited with the Bank through the Program, you •• Retirement plans qualified under Section 401(a) (other may elect to have your available free cash balances than IRAs established under the Code) or Section 403(b) automatically swept into a tax-exempt Sweep Fund. The (7) of the Code or under any other employee retirement following tax-exempt Sweep Funds are currently available or welfare plan subject to the Employee Retirement for free cash balances from an RMA: Income Security Act of 1974, as amended (“ERISA”). •• UBS RMA Tax-Free Fund Inc. Please ask your Financial Advisor for additional details •• UBS RMA California Municipal Money Fund concerning eligibility. •• UBS RMA New Jersey Municipal Money Fund

74 About Your UBS Account: Deposit Account Sweep Program Sweep Account Deposit Account: UBS Your About •• UBS RMA New York Municipal Money Fund Withdrawal Procedures •• The Puerto Rico Short Term Investment Fund, Inc. As your agent, UBS Financial Services Inc. will make the State-specific municipal funds are intended for residents necessary withdrawals from your Deposit Account to satisfy of those states only. The Puerto Rico Short Term debits or charges in your Account. Debits are amounts due Investment Fund, Inc. is offered exclusively to Puerto Rico to UBS on settlement date for securities purchases as well residents as defined in the Fund’s prospectus. The Fund as other debits and fees from your Account, including, is not a money market fund registered under the U.S. without limitation, margin loans and fees. Charges Investment Company Act of 1940, does not comply with are amounts due to UBS for checks, bill payments and rules applicable to U.S. registered funds and presents a electronic funds transfers, UBS American Express Card higher degree of risk than those funds. The Fund is sold purchases and cash withdrawals. No debits or charges, by prospectus only, is NOT FDIC-INSURED, NOT BANK including, without limitation, charges resulting from GUARANTEED, AND MAY LOSE VALUE. check writing, will be drawn directly against your Deposit Account. You may elect a tax-exempt Sweep Fund when you open your Account or by contacting your Financial Advisor at any As required by federal banking regulations, the Bank time. Please note that Basic Investment Accounts, IRAs, and reserves the right to require seven days prior notice before IRA RMAs are not eligible to select a tax-exempt Sweep permitting a transfer of funds out of the Deposit Accounts. Fund. The Bank has no intention of exercising this right at the present time. UBS also offers a number of investment products that you may wish to consider as alternatives to maintaining cash Subject to the terms set forth in the section titled deposits at the Bank through the Program. Consider your “Withdrawals,” under the General Terms and Conditions investment objectives, liquidity needs and risk tolerance of this Agreements and Disclosures booklet, the funds when you review these alternatives. Some of these necessary to satisfy the debits or charges in your Account alternatives may pay an interest rate or dividend that is will be obtained in the following order: higher than the rate you receive on the Deposit Accounts. •• First from available cash balances in your Account While deposits in the Deposit Accounts, certificates of •• Then by liquidating any Taxable Fund holdings you may deposit and any other available deposit products offered have. by FDIC-insured depository institutions are covered by –– If you own shares in more than one Taxable Fund, FDIC insurance up to applicable limits, other investment shares of your current Taxable Fund will be sold first. alternatives, such as money market mutual funds, are not –– Shares in any other Taxable Funds will be sold, if FDIC-insured, are not guaranteed by a bank, and may lose necessary, in the following order: value. –– first, UBS RMA Money Market Portfolio; –– second, UBS RMA U.S. Government Portfolio; –– third, UBS Cashfund Inc.; and How the Program Works –– fourth, UBS Retirement Money Fund.

Deposit Procedures •• If funds from these sources are insufficient, withdrawals When cash balances in your UBS securities account are will be made from your TA maintained through the first available to be swept to the Bank (as described in the Program. Important Information About Your New Account booklet), •• If funds in your TA are insufficient, funds in your MMDA “TA” means a UBS, acting as your agent, will open a TA and an MMDA will be transferred to your TA to satisfy the debit or transaction account. on your behalf at the Bank. Acting as your agent, UBS charge. will deposit available cash balances into your MMDA at •• If funds are still insufficient, withdrawals will be made “MMDA” means a the Bank (so long as all debits and charges to your UBS from your Tax-Exempt Sweep Funds. If you should own money market deposit securities account are satisfied). Periodically, UBS will shares in more than one Tax-Exempt Sweep Fund, shares account. transfer funds from your MMDA to your TA as necessary of your current Tax-Exempt Sweep Fund will be sold first. to satisfy debits received in your UBS securities account Shares in any other Tax-Exempt Sweep Funds will be “Taxable Funds” include the UBS RMA Money (for example, for securities purchases, checking and debit sold, if necessary, in the following order: Market Portfolio, card activity, etc.). Transfers from the MMDA to the TA –– first, UBS RMA Tax-Free Fund Inc.; the UBS RMA U.S. and withdrawals from the TA are discussed below under –– second, UBS RMA California Municipal Money Fund, Government Portfolio, “Withdrawal Procedures.” UBS RMA New Jersey Municipal Money Fund, UBS the UBS Cashfund Inc. RMA New York Municipal Money Fund and Puerto and the UBS Retirement Contact your Financial Advisor if, at any time, you would Rico Short Term Investment Fund, Inc., as applicable. Money Fund. like to withdraw your funds from the Bank, close your –– Finally, to the extent possible, the debit or charge Account with the Bank and designate the Bank as ineligible will be satisfied out of your Account’s available “Tax-Exempt Sweep Funds” include the UBS to receive future deposits, or if eligible, choose a tax- margin, if your Account has margin. RMA Tax-Free Fund Inc., exempt Sweep Fund. the UBS RMA California To reduce the number of transfers between your MMDA Municipal Money Fund, Additional depository institutions may be added to the and TA, UBS Financial Services Inc. may, at some time in the UBS RMA New Jersey Program in the future. We will notify you in advance of any the future, elect to maintain a threshold balance in your TA Municipal Money Fund, such addition and give you the opportunity to designate based upon the amount of debit activity in your Account. the UBS RMA New York a new depository institution as ineligible to receive your You will earn the same rate of interest and receive the Municipal Money Fund deposits before any funds are deposited into a new same level of FDIC insurance coverage regardless of the and Puerto Rico Short Term Investment Fund, depository institution. allocation of your funds between your MMDA and TA. Inc. If the Bank no longer makes the Deposit Accounts available Federal banking regulations generally limit the transfers through the Program, you will be notified by UBS and from an MMDA to a total of six (6) during a monthly subject to the policies of the Bank, given an opportunity statement cycle. At any point during a month in which to establish a direct depository relationship with the Bank transfers from your MMDA have reached the applicable outside of the Program. The consequences of maintaining limit, all funds will be transferred from your MMDA to the a direct depository relationship with the Bank are discussed related TA until the end of the month. At the beginning below under “Your Relationship with UBS and UBS Bank of the next month, funds on deposit in your TA will be USA.” transferred to your MMDA, less any threshold balance we elect to maintain. The limit on MMDA transfers will not limit the number of withdrawals you can make from funds on deposit at the Bank.

75 About Your UBS Account: Deposit Account Sweep Program Sweep Account Deposit Account: UBS Your About If you have questions The order in which your debits and charges are satisfied Accounts with monthly statements that are sent to the about interest rates paid on your Deposit will be applied regardless of any prevailing yield differential same address in a single envelope (known as a statement Accounts or rates of between the relevant sweep options (for example, your household) or common Taxpayer Identification Numbers. return on other sweep Sweep Fund and your Deposit Account). As a result, it is Please note, if you hold Accounts in our UBS International options, call your possible that a higher-yielding sweep option will be debited division, the assets in these accounts are excluded from the Financial Advisor. before a lower-yielding sweep option. eligible assets in a Marketing Relationship and cannot be combined with Accounts you may have at UBS Financial For more information Services Inc. or UBS Financial Services Incorporated of about householding Interest Rates Puerto Rico. rules, contact your Financial Advisor. As discussed above, the Bank will pay the same rate of •• Accounts that share the same name, address and Social Not all assets qualify as interest on your TA and MMDA. Interest rates will be Security or Tax ID Number are automatically placed in Marketing Relationship established periodically based on prevailing business and the same statement household. assets (for example economic conditions, as well as the nature and scope of •• Accounts that share only the same address will be placed restricted stock is your relationship with us. in the same statement household with the express ineligible). For more consent of all of the Account holders. information, contact The Bank sets different interest rates for different “tiers” •• Accounts in one statement household can be combined your Financial Advisor. of Bank clients. The Bank’s interest rates are tiered based with Accounts in a second statement household if: With UBS Online Services upon the total amount of eligible assets by Marketing –– The primary Social Security or Tax ID Number on an you can view your UBS Relationship that a client holds with the Bank and UBS. Account in the first statement household matches Account information and Generally, clients in higher eligible asset tiers will receive the primary Social Security or Tax ID Number on an monitor balances in your higher interest rates than those in lower eligible asset tiers. Account in the second statement household. Deposit Accounts at the The Bank’s eligible asset tiers are: –– Or, the primary Social Security or Tax Number on Bank online at any time. an Account in one statement household matches a To enroll, contact your Interest Rate Tiers secondary Social Security or Tax ID Number in the Financial Advisor. UBS Online Services is free of $10 million and more second statement household, and each Account in charge for all Accounts. $2 million to $9,999,999 both statement households share the same nine- $1 million to $1,999,999 digit ZIP code. $500,000 to $999,999 $250,000 to $499,999 In certain circumstances, additional householding criteria less than $250,000 may be applied. We reserve the right, in our sole discretion, to grant exceptions to our householding policy. If you The Bank reserves the right to change its eligible asset tiers have different Accounts that cannot be combined into a at any time without notice. statement household for any reason, if you would like to determine the household status of your Accounts, or if you Depending upon the amount of eligible assets you would like to add Accounts to your household, contact hold with UBS on a Marketing Relationship basis, your Financial Advisor. interest rates paid on your Deposit Accounts may exceed, meet or be lower than the prevailing rate of Treating Accounts as part of a single household relationship return of the Sweep Funds. does not result in the commingling of any assets held in the Accounts. For more information please contact your The interest rate will be set by the Bank each business Financial Advisor. day and will apply to balances in the Deposit Accounts for that day and on any successive non-business days. The The Value of Your Eligible Marketing Relationship Assets interest rate applicable to the Deposit Accounts will be made available on the next business day following the day The value of your eligible Marketing Relationship assets will when the interest rate is set. Interest will accrue on Deposit be calculated at each calendar month-end. This valuation Account balances from the day funds are deposited at will then be used to set your interest rate tier level for the Bank through the business day preceding the date of the interest period beginning on the fifth business day withdrawal from the Bank. Interest on account balances of the immediately following month. If you establish a will be accrued daily, rounded up or down each day to new Account that is not part of an existing Marketing the nearest $0.01. As a result, balances in the Deposit Relationship, in most cases your Account will be placed Accounts that earn daily total interest of less than in the asset tier of $500,000 to $999,999 until the value half a cent will not accrue any interest. Interest will of your eligible Marketing Relationship assets is calculated be compounded daily and credited on the fifth business at the end of the following calendar month. However, day of each month (as of the fourth business day of each if you have a pre-existing relationship with UBS, your month). Please note that due to year-end processes, in account will be placed in the asset tier applicable to the addition to the regular crediting of interest in January of amount of eligible assets actually held in your account as each year, interest will also be credited on the first business of the prior calendar month-end. Based on a historical day of January (as of the last business day in December). comparison of interest rates paid by the Bank and Information regarding current interest rates on the Deposit yields on alternative cash sweep options, marketing Accounts is available online at www.ubs.com/sweepyields, relationships with less than $500,000 in total eligible through UBS‘s Online Services or by calling your Financial assets at UBS and the Bank can be expected to Advisor. receive interest rates that are substantially lower than the prevailing rate of return of the Sweep The rates of return paid with respect to the Deposit Funds. Interest rates paid on Deposit Accounts may Accounts may be higher or lower than the rates of return change daily. available to depositors making deposits directly with the Bank or other depository institutions in comparable accounts. You should compare the terms, rates of return, Viewing Information About Your Deposit Accounts required minimum amounts, charges and other features of the Program with other accounts and alternative All activity in your Deposit Accounts, including the initial investments. deposit, opening and closing balances and any interest earned for the period, will appear on your periodic Account Marketing Relationship Assets and Householding Rules statement.

We determine the eligible assets in a Marketing Relationship by combining the assets held in eligible

76 About Your UBS Account: Deposit Account Sweep Program Sweep Account Deposit Account: UBS Your About Your Relationship With UBS And UBS Bank USA Accounts, once cash in those Accounts exceeds $250,000 “FDIC” refers to the Federal Deposit or $500,000 (as applicable) in the aggregate, then your Insurance Corporation. Under the Program, UBS Financial Services Inc. acts as your funds on deposit with the Bank will exceed FDIC insurance agent in establishing your Deposit Accounts at the Bank, coverage limits. and depositing funds into them and withdrawing funds from them. No , certificate or other evidence You are responsible for monitoring the total amount of ownership will be issued to you. Your ownership of of deposits that you have with the Bank in order to the deposited funds will be evidenced by a book entry determine the extent of deposit insurance coverage on the Account records of the Bank and by the records available to you. UBS Financial Services Inc. maintains as your custodian. As discussed above, your periodic Account statement will None of UBS or UBS AG will be responsible for any insured reflect the balances in your Deposit Accounts at the Bank. or uninsured portion of the Deposit Accounts. In the You should retain the statements for your records. unlikely event that federal deposit insurance payments become necessary, payments of principal plus unpaid and UBS Financial Services Inc. may, in its sole discretion accrued interest will be made to you. There is no specific and without notice, terminate your participation in time period during which the FDIC must make insurance the Program at any time. If this occurs, you may deal payments available. You may be required to provide directly with the Bank subject to its rules with respect documentation to the FDIC and UBS before insurance to maintaining Deposit Accounts. Similarly, if you payments are made. For example, if you hold deposits terminate your participation in the Program, you may as trustee for the benefit of trust participants, you may establish a direct relationship with the Bank, subject be required to furnish affidavits and provide indemnities to the policies of the Bank, by requesting to have the regarding an insurance payment. Deposit Accounts established in your name. This will result in the separation of the Deposit Accounts from Under certain circumstances, if you become the owner your UBS securities Account. of deposits at the Bank because another depositor dies, beginning six months after the death of the depositor, UBS Financial Services Inc. receives an annual fee from the the FDIC will aggregate those deposits to calculate the Bank of up to $25 for each UBS securities account that maximum insurance amount with any other deposit that sweeps into a Deposit Account at the Bank. UBS reserves you own in the same insurable capacity at the Bank. the right to increase, decrease or waive all of part of this Examples of accounts that may be subject to this FDIC fee. We will notify you in advance of any increase. Other policy include joint accounts, “payable on death” accounts than applicable fees and charges imposed by UBS on your and certain trust accounts. The FDIC provides the six-month securities accounts (such as for returned checks or stop- “” to permit you to restructure your deposits payments), which are described in the “Fees and Charges” to obtain the maximum amount of deposit insurance section of the Agreements and Disclosures booklet, there for which you are eligible. If deposits in your Deposit will be no charge, fee or commission imposed on your Accounts or other deposits at the Bank are assumed by securities account with respect to the Program. another depository institution as a result of a merger or consolidation, such deposits will continue to be separately insured from deposits that you might have established Benefits to UBS and its Affiliates with the acquirer until the expiration of a six-month period from the date of the acquisition. Thereafter, any assumed Each of UBS, UBS Securities LLC and UBS AG provide deposits will be aggregated with your existing deposits operational and other services to the Bank and receive with the acquirer held in the same insurable capacity for compensation for those services. The Bank uses the cash purposes of federal deposit insurance. Any deposit opened balances in the Deposit Accounts to fund new lending and at the depository institution after the acquisition will be investment activity. The Bank will seek to make a profit by aggregated with deposits established with the acquirer for achieving a positive “spread,” or difference between (a) purposes of federal deposit insurance as well. the sum of the amount of interest that it pays for deposits and (b) the sum of the amount of interest that it charges The application of the maximum insurance amount is for loans and the return on investments made with any illustrated by several common factual situations discussed deposits that it does not need to fund loans. below.

Individual Accounts. Funds owned by an individual and FDIC Deposit Insurance held in an account in the name of an agent or nominee of such individual (such as the Deposit Accounts held General Information through UBS) or held by a custodian (for example, under The Deposit Accounts are insured by the FDIC, an the Uniform Gifts to Minors Act or the Uniform Transfers independent agency of the U.S. government, to a to Minors Act) are not treated as owned by the agent, maximum amount equal to $250,000 per depositor nominee or custodian, but are added to other deposits (including principal and interest) when aggregated with all of that individual held in the same insurable capacity other deposits held by you in the same insurable capacity (including funds held in a sole proprietorship) and are at the Bank. Your funds become eligible for deposit insured up to $250,000 in the aggregate. insurance immediately upon placement in a Deposit Account. Generally, any accounts or deposits (including Joint Accounts. An individual’s interest in funds held under CDs issued by the Bank) that you maintain directly with any form of joint ownership valid under applicable state the Bank, or through an intermediary (such as UBS) in law may be insured up to $250,000 in the aggregate, the same insurable capacity in which the deposits in the separately and in addition to the $250,000 allowed on Deposit Accounts are maintained, will be aggregated with other deposits individually owned by any of the co-owners the deposits in your Deposit Accounts, for purposes of of such accounts (referred to here as a “Joint Account”). calculating the maximum insurance amount. In the unlikely For example, a Joint Account owned by two persons would event that the Bank should fail, the Deposit Accounts be eligible for insurance coverage of up to $500,000 are insured, up to the maximum insurance amount, for ($250,000 for each person), subject to aggregation with principal and interest accrued to the day the Bank is closed. each owner’s interests in other Joint Accounts at the bank. Interest is determined for insurance purposes in accordance Joint Accounts will be insured separately from individually with federal law and regulations. owned accounts only if each of the co-owners is an individual person, has signed a UBS Account agreement Note that if you hold multiple Accounts with UBS in and has a right of withdrawal on the same basis as the the same insurable capacity that sweep to the Deposit other co-owners.

77 About Your UBS Account: Deposit Account Sweep Program Sweep Account Deposit Account: UBS Your About Revocable Trust Accounts Individual Retirement Accounts. Funds held in an IRA, including traditional, Roth, SEP and SIMPLE IRAs are insured Deposits of any one depository institution held in a up to $250,000 in the aggregate. Funds held in an IRA will “revocable trust” are generally insured up to $250,000 per be aggregated with funds held in some other retirement beneficiary if the beneficiary is a natural person, charity plans in which the owner of the IRA has an interest. Under or other non-profit organization. There are two types of FDIC regulations an individual’s interest in deposits at the revocable trusts recognized by the FDIC: Informal and Bank held by (i) IRAs, (ii) deferred compensation plans formal. for certain employees of state or local governments or tax-exempt organizations (i.e., Section 457 Plans), (iii) self- Informal revocable trusts include accounts in which directed “Keogh Plans” of owner-employees described the owner shows an intent that, at his or her death, the in section 401(d) of the Internal Revenue Code of 1986, funds shall belong to one or more specified beneficiaries. as amended, and (iv) self-directed defined contribution These trusts may be referred to as a “Totten trust” account, plans, will be insured for up to $250,000 in the aggregate “payable upon death” account or a “transfer on death” whether or not maintained by the same employer or account. Each beneficiary must be included in UBS’s employee organization. Thus, the owner of an IRA will only account records. be entitled to insurance up to $250,000 for interests in retirement plans and accounts holding funds at the Bank Formal revocable trusts are written trust arrangements that are subject to aggregation. in which the owner retains ownership and control of the assets and designation of beneficiaries during his or her lifetime. The trusts may be referred to as “living” or Questions about FDIC Deposit Insurance Coverage “family” trusts. The beneficiaries of a formal revocable trust do not need to be included in UBS’s account records. If you have questions about basic FDIC insurance coverage, please contact your Financial Advisor. You may wish to Under FDIC rules, if a revocable trust has five or fewer seek advice from your own attorney concerning FDIC beneficiaries, FDIC coverage will be up to $250,000 per insurance coverage of deposits held in more than one beneficiary, multiplied by the number of beneficiaries, insurable capacity. You may also obtain information by regardless of the proportional interests of each beneficiary contacting the FDIC, Office of Compliance and Consumer in the revocable trust. If the trust has six or more Affairs: beneficiaries, the funds will be insured for the greater of •• By mail: 550 17th Street, N.W., Washington, D.C. 20429 $1,250,000 or the aggregate amount of all beneficiaries’ •• by phone: 877-275-3342 or 800-925-4618 (TDD) proportional interest, limited to $250,000 per beneficiary. •• by e-mail: [email protected] or •• online: www.fdic.gov. Deposits in all revocable trusts of the same owner – informal and formal – at the same depository institution will be aggregated for insurance purposes. A revocable SIPC Protection trust established by two owners where the owners are the sole beneficiaries will be treated as a Joint Account under UBS Financial Services Inc., UBS Financial Services applicable rules and will be aggregated with other Joint Incorporated of Puerto Rico and UBS International Inc. are Accounts. members of the Securities Investor Protection Corporation (“SIPC”), which provides protection for your securities Irrevocable Trust Accounts. Funds held in an account Account(s) with us up to $500,000, including $250,000 for established pursuant to an irrevocable trust agreement free cash balances in the unlikely event that the Firm fails created by the same grantor (as determined under financially. SIPC asset protection limits apply, in aggregate, applicable state law) will be insured for up to $250,000 to all Accounts that you hold in a particular legal capacity. per beneficiary provided that the beneficiary’s interest in The Sweep Funds and other Sweep options are not bank the account is non-contingent (in other words, capable deposits and are not protected by the FDIC. However, of determination without evaluation of contingencies). balances in the Sweep Funds and other Sweep options are According to the FDIC, Coverdell Education Savings covered by the SIPC and the supplemental insurance we Accounts should be treated as irrevocable trust accounts have obtained for your benefit. For more information, see for deposit insurance purposes. The deposit insurance the Additional Disclosures section of this booklet. of each beneficiary’s interest is separate from the coverage provided for other accounts maintained by the beneficiary, the grantor, the trustee or other beneficiaries. A beneficiary’s interest in funds held in irrevocable trust accounts created by the same grantor at the same institution will be aggregated and insured up to $250,000.

Medical Savings Accounts. Funds held in a Medical Savings Account, sometimes referred to as an Archer Medical Savings Account, will be eligible for deposit insurance as either an individual account, a revocable trust account or an employee benefit plan. You may wish to consult with your attorney or the FDIC to determine the available coverage.

78 UBS International Deposit Account Program Sweep Account Deposit International Account: UBS Your About Sweep Program Disclosure

We refer to the deposit As a client of UBS, we want you to be aware of the to satisfy debits or charges in your securities account accounts individually as UBS International Deposit Account Sweep Program (the in accordance with the general terms and conditions the New York Deposit Program) and how it operates. governing your securities account. No debits or charges, Account and Cayman including charges resulting from check writing or other Deposit Account and If you choose to participate in this program, free cash withdrawals of funds from your securities account, will be collectively as the balances in eligible securities accounts at UBS Financial drawn directly against a Deposit Account. Deposit Accounts. We Services Inc. (UBS Financial Services) are automatically refer to funds on deposit deposited into a account at the New York in the Deposit Accounts as Deposited Funds. Branch of UBS AG (the New York Branch), from which No FDIC Deposit Insurance, No SIPC Protection funds are then swept and re-deposited each business day into an overnight deposit account at the Cayman Islands Deposited Funds are not eligible for federal deposit branch of UBS AG (the Cayman Branch). insurance from the Federal Deposit Insurance Corporation (the FDIC). And unlike securities held in your securities account, the Deposited Funds are not protected by the How the Program Works; Sovereign Risk; Securities Investor Protection Corporation (SIPC). Withdrawals

When cash balances greater than $1.00 in your securities Interest Rates account are first available for withdrawal (as described in the other disclosure materials for your account), UBS Interest rates paid on your Deposited Funds at the Cayman Financial Services deposits your available cash balances into Branch are determined by UBS AG based on a variety the New York Deposit Account as long as all debits and of factors, including economic and business conditions. charges to your securities account have been satisfied. If Interest rates paid on the Deposited Funds at the Cayman you contact your Financial Advisor by the time specified Branch may change daily. Information regarding current by UBS Financial Services (currently noon in New York city, interest rates on the Deposit Accounts is available by calling but subject to change), you may withdraw your funds in your Financial Advisor. You may also visit our website at the New York Deposit Account that same business day. www.ubs.com/fsi and click on “Account Sweep Yields” At any time, you may also contact your Financial Advisor at the bottom of the page See “How the Program Works; to designate the New York Branch as ineligible to receive Sovereign Risk; Withdrawals” above. future deposits from you. As mandated by applicable federal laws, no interest is paid At the close of each business day of the New York on the Deposited Funds held in the New York Deposit Branch, UBS transfers all of your funds in the New York Account. Deposit Account to the Cayman Deposit Account. Upon this transfer, the balance is credited to the Cayman Deposit Account on the books of the Cayman Branch. Financial Benefits to UBS Financial Services This means that the cash balance that swept from the New York Deposit Account becomes payable only at the UBS Financial Services receives a fee from UBS AG in Cayman Branch, and not at the New York Branch, and connection with the Program. The fee is an amount equal, is temporarily exposed to the sovereign risk of the on an annualized basis, of up to 0.5% of the Deposited Cayman Islands. Funds. In addition, UBS Financial Services and certain of its affiliates provide operational, sales and marketing, loan Funds deposited overnight at the Cayman Branch are servicing, technology and other support services to UBS subject solely to Cayman Islands law and may be affected AG, and receive compensation for those services. by local events outside of UBS’s control. There is no guarantee by or other obligation of the New York Branch Like other banks, the profitability of UBS AG is determined to repay your deposit balance while it is on the books in large part by the difference between the interest or of the Cayman Branch. While deposited at the Cayman other income it earns on loans, investments, other assets Branch, your funds are not protected by any U.S. laws or and investment management activity and the interest it regulations that would apply if the funds were held in a pays and other costs incurred on its deposits. As a result, deposit account at a U.S. branch of UBS AG. UBS AG improves its profitability when market conditions and other factors permit it to lower the interest rates and At the beginning of the next business day, UBS returns the fees it pays on its deposits, including the Deposit Accounts. amount that had been transferred to the Cayman Branch UBS AG has no obligation to pay interest based upon to the New York Deposit Account, and your balance UBS AG’s profitability or the income it earns on loans, becomes payable at the New York Branch. All interest investments or other assets. earned on your Deposited Funds from the previous day at the Cayman Branch is transferred from the Cayman Branch and deposited into the New York Deposit Account. Interest Your Alternatives is credited monthly to your UBS Financial Services account statement. The transfers of principal each business day You may withdraw from the Deposit Account Program at between the New York Deposit Account and the Cayman any time. As there is no alternative sweep program, cash Deposit Account do not appear on your UBS Financial balances in your securities account will then be held at UBS Services statement. Financial Services as free cash balances. Free cash balances are obligations of UBS Financial Services and do not pay We will notify you if UBS AG discontinues the Program, or earn interest or dividends. Free cash balances are not and you may be given an opportunity to establish a direct segregated from other funds and may be used by the Firm depository relationship with the New York Branch. in the ordinary course of its business.

As your agent, UBS Financial Services will make the UBS Financial Services offers a number of investment necessary withdrawals from the New York Deposit Account products that you may wish to consider as alternatives to

79 About Your UBS Account: International Deposit Account Sweep Program Sweep Account Deposit International Account: UBS Your About the Program. It is important to consider your investment from them. No passbook, certificate or other evidence objectives, liquidity needs and risk tolerance when of ownership will be issued to you. Your ownership of reviewing these alternatives. Some of these alternatives the Deposited Funds will be evidenced by a book entry may pay an interest rate or dividend that is higher than the on the account records of UBS Financial Services and rate you receive on the Deposited Funds. Please contact by the records UBS Financial Services maintains as your your Financial Advisor for additional information. custodian. As described above, your periodic account statement will reflect your cash balances at UBS Financial Services and your amounts on deposit under the Program. Your Relationship With UBS Financial Services and We recommend that you retain the statements for your UBS AG records.

Under the Program, UBS Financial Services acts as your agent in establishing the Deposit Accounts at UBS AG, depositing funds into them and withdrawing funds

80 Loan Disclosure Statement Statement Disclosure Loan Account: UBS Your About

UBS Financial Services Inc. is furnishing this document to We can force the sale of securities or other assets in you to provide some basic facts about purchasing securities your pledged account(s). If the equity in your account on margin, using leverage as a liquidity source or as part falls below the maintenance margin or loan collateral of your investment strategy or otherwise borrowing funds requirements or UBS Financial Services Inc.’s or an affiliate’s secured by your securities accounts, and to alert you to the higher “house” requirements, we can sell the securities or risks involved with trading securities in a margin account. other assets in any of your account(s) held at UBS Financial Before trading stocks in a margin account or otherwise Services Inc. or its affiliates to cover the margin or loan borrowing funds from UBS Financial Services Inc. or one of collateral deficiency. You also will be responsible for any its affiliates (for example, UBS Bank USA) and using your deficiency or shortfall in the account after such a sale. securities accounts as collateral, you should carefully review the margin or loan agreement and this loan disclosure We can sell your securities or other assets without statement. You may also speak to your Financial Advisor contacting you. Some investors mistakenly believe that regarding any questions or concerns you may have with we must contact them for a margin call to be valid, and your margin accounts or loan agreement. that we cannot liquidate securities or other assets in their account(s) to meet the call unless we have contacted them When you purchase securities, you may pay for the first. This is not the case. We will attempt to notify you of securities in full or you may borrow part of the purchase margin calls, but we are not required to do so. However, price from UBS Financial Services Inc. If you choose to even if we have contacted you and provided a specific borrow funds from UBS Financial Services Inc. or one date by which you can meet a margin call, we can still take of its affiliates, whether to purchase securities or for necessary steps to protect our financial interests, including other purposes, you will open a securities account with immediately selling the securities without notice to you. UBS Financial Services Inc. The securities in that account (together with the other securities and assets held in your You are not entitled to choose which securities UBS Financial Services Inc. accounts) are UBS Financial or other assets in your account(s) are liquidated or Services Inc.’s or its affiliates’ collateral for their loan to sold to meet a margin call. Because the securities are you. If the securities in your account decline in value, so collateral for the margin or other loan, we have the does the value of the collateral supporting your loan, and, right to decide which security to sell in order to protect as a result, UBS Financial Services Inc. (or, if applicable, an our own interests. affiliate) can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held We can increase our “house” maintenance margin or with UBS Financial Services Inc., in order to maintain the loan collateral requirements at any time and we are required equity in the account. not required to provide you advance written notice. These changes in our policy often take effect immediately It is important that you fully understand the risks involved and may result in the issuance of a maintenance margin in trading securities on margin, using leverage as a liquidity call. Your failure to satisfy the call may cause us to liquidate source or as part of your investment strategy, or otherwise or sell securities in your account(s). pledging your securities in order to obtain credit. These risks apply whether your loan is made by UBS Financial You are not entitled to an extension of time on a Services Inc. or one of its affiliates (for example, UBS Bank margin call. While an extension of time to meet margin USA), and include the following: requirements may be available to you under certain conditions, you do not have a right to the extension. You can lose more funds than you deposit in the margin or pledged account. A decline in the value of securities that are purchased on margin or pledged as collateral for a loan may require you to provide additional funds to us to avoid the forced sale of the securities or other securities or assets in your account(s).

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82 UBS Statement of Credit Practices Practices Credit of Statement UBS Account: UBS Your About

This section describes the interest charges and other Change of Rate Without Prior Notice For purposes of this matters relating to how we extend or maintain credit in “Statement of Credit your account. This document is intended to describe all Your stated interest rate is subject to change without Practices,” except as possible types of credit we offer to clients. As a result, notice during each period based on fluctuations in your noted below, “UBS,” some information may not apply to your particular daily net loan (debit) balance and the Base Loan Rate. “we,” “our” and “ours” situation. Whenever the Base Loan Rate changes or your daily net refer only to UBS loan (debit) balance crosses one of the balance thresholds Financial Services Inc. Understanding our credit practices in relation to your listed in the table above, we will adjust your interest rate “You,” “your” and account is an important part of being an informed investor. accordingly. “yours” refer to you as If you have any questions about credit and your account, client(s) and recipient(s) please contact your Financial Advisor. If we increase your stated interest rate for any other of credit from UBS reason, we will notify you in writing at least 30 days in Financial Services Inc. advance of the change. Applicability of Interest Charge

We will charge you interest on any credit we extend Computation of Interest Charge to you. We calculate your daily debit or credit balance as follows: •• We take the balances in your Account at the close of Interest Rate the previous day (or the opening balance on a new Account), Unless we inform you that a specific UBS lending product •• We add the credits, and charges differently, we will charge you interest based on •• We subtract the debits that occurred during the day. the UBS Base Loan Rate (“Base Loan Rate”). As we use The UBS Base Loan Rate is an internally computed regularly published lending rates to establish our Base If the result is negative, it becomes the daily net loan rate established Loan Rate, it tends to follow the rise or fall of rates in the (or debit) balance, which forms the basis for interest periodically based on general financial environment. calculations. Any proceeds received from the sale of our cost of funds and securities (less transaction costs) that are not sold long or our assessment of the If you would like to know what the prevailing Base Loan are not in good deliverable form will be deducted from the rates being charged in Rate is or determine the exact amount due on your credit balance in your account for purposes of calculating the financial markets. Account, contact your Financial Advisor or the Branch your net loan (debit) balance. We disregard any short The UBS Base Loan Rate Office Manager of the branch office servicing your market value resulting from a short sale because this value is subject to change from time to time Account. is used to collateralize stock borrowed to make delivery without notice in our against a short sale. sole discretion. The rates Our agreements with you for the extension of credit are used in our computation governed by the laws of the State of New York, where Although we compute the interest on your net loan (debit) include, but are not we maintain our principal place of business. The interest balance daily, the interest accrued on your account will be limited to, the prime charge for each interest period is due and payable at the calculated only once a month, at the end of each interest rate, discount rate, close of that period. Interest charges not paid at the close period. The applicable interest periods are listed below: broker call rate, Federal of the interest period will be added to the opening debit Funds rate and LIBOR. balance in your Account for the next period. February through From the 22nd of each month to the As of October 11, 2010, November 21st of the following month the UBS Base Loan Rate Unless a specific UBS lending product provides otherwise, is 6.375%. we calculate the interest rate you are charged by adding December November 22 to December 31 or subtracting a sliding scale percentage rate, determined by the level of your daily net loan (debit) balance to or January January 1 to January 21 from the prevailing Base Loan Rate. We may, in our sole Prime Brokerage From the 1st calendar day of each discretion, adjust the rate assigned to certain Accounts as Accounts Only month through the last calendar day of warranted by our overall business relationship with you. each month Our standard sliding scale percentage rates follow: Please review the “Loan Summary” section of your Your “daily loan balance” Net Loan (Debit) Spread Over/Under statement to see the interest charge for the current interest is the amount of money Balance Base Loan Rate period as well as the average net loan (debit) balance and you owe UBS on any Under $25,000 3.500% the average loan interest rate applicable to such period. given day. We may also You can approximate the interest charges based on a 360- refer to it as your “daily debit balance.” $25,000 to $49,999 3.125% day year by using the following formula: $50,000 to $74,999 2.750% Your “net loan (debit) Average Net Average Loan Loan (Debit) balance” is your daily $75,000 to $99,999 2.125% Loan (Debit) X Interest Rate X Days in debit balance minus the Balance Interest Period credit balance for any $100,000 to $249,999 1.125% given day. 360 $250,000 to $499,999 0.750% $500,000 to $999,999 0.375% Marking to The Market

$1 million to $4,999,999 0.000% If you sell a security short and its market value increases $5 million to $9,999,999 -0.875% above your selling price, the debit balance in your Account will increase. We will charge you interest on the increase. More than $10 million -1.250% Conversely, any decrease in market value will cause the credit balance in your Account to increase, and we will

83 About Your UBS Account: UBS Statement of Credit Practices Credit of Statement UBS Account: UBS Your About Please carefully review reduce your interest charges accordingly. This practice We may require you to deposit additional collateral the information about Margin below. If you of determining the change in current market value is as security for your obligations to us whenever we wish to opt out of commonly referred to as “marking to the market” and is determine it is needed and in accordance with the rules Margin, call your UBS done on a daily basis. and regulations of the Federal Reserve Board, the New Financial Advisor. York Stock Exchange and our internal policies. We will request additional margin or collateral when the equity in We present this OTHER CHARGES an Account falls below our margin requirements. If you explanation to help fail to promptly meet a margin call, or under certain other you understand how Separate interest charges may be made in your Account in circumstances, we may sell the pledged securities and other your interest charges are computed so that connection with: securities and assets held in your Account(s) to meet the you can verify the •• Prepayments – payments to you of the proceeds of a margin call or otherwise satisfy the deficiency. charges shown on your security sale before the regular settlement date statement. If you have •• “When issued” transactions - when the market price of As a general business practice, we will attempt to notify any questions, call your the “when issued” security changes from the contract you before we sell your securities and other assets to meet Financial Advisor. price by an amount that exceeds the cash deposit, we a margin call. We will generally provide you with 48 to 72 may charge interest on such difference hours to satisfy such a call. However, we are not required According to the •• Late payments – payments for securities purchased that to notify you or have your authorization to liquidate terms of your Client Relationship Agreement, we receive after the settlement date. securities and other assets held in your Account(s). the securities and other assets you hold (either Although we do not limit the factors that may require individually or jointly LIENS, MARGIN CALLS AND ADDITIONAL COLLATERAL additional margin or collateral, some of them include with others) at UBS, market fluctuation, a highly concentrated portfolio or including UBS Financial As security for the discharge of your obligations to us, your overall credit standing. You can meet a margin call Services Incorporated we have a security interest in, and a general lien on, all by delivering additional marginable securities or cash. of Puerto Rico, at any securities or other assets that we hold or may hold at any Generally, only equity securities registered on a national successor firms, at our correspondents and/or time or carry for you in any of your Accounts (individually securities exchange or NASDAQ are marginable. For more our affiliates, including or jointly with others). This includes those assets that may information on our right to demand additional collateral, without, its parent be deposited with us for safekeeping or other purposes. as well as other rights, obligations and risk factors involved company, UBS AG, will This security interest and general lien covers all obligations in using your securities Account(s) as collateral for any of be used to collateralize to us, however they arise and irrespective of the number of our lending programs, please carefully review the “Loan your obligations to Accounts you have with us. Disclosure Statement” in this booklet. us and any successor, correspondent or affiliate. Consequently, the terms “UBS,” “we,” Table 1: Effective Annual Interest Rates “our,” “ours,” “us” and “UBS Financial Services Stated Effective Stated Effective Stated Effective Stated Effective Inc.” used in the “Liens, Interest Annual Interest Annual Interest Annual Interest Annual Margin Calls and Rate Rate Rate Rate Rate Rate Rate Rate Additional Collateral” section of this Statement 4.00% 4.07% 8.25% 8.57% 12.50% 13.24% 16.75% 18.10% of Credit Practices refers to UBS Financial Services 4.25% 4.33% 8.50% 8.84% 12.75% 13.52% 17.00% 18.39% Inc. its successors, 4.50% 4.59% 8.75% 9.11% 13.00% 13.80% 17.25% 18.68% correspondents and affiliates collectively. 4.75% 4.85% 9.00% 9.38% 13.25% 14.08% 17.50% 18.97%

In general, the equity in 5.00% 5.12% 9.25% 9.65% 13.50% 14.37% 17.75% 19.27% an account is the excess market value of the 5.25% 5.38% 9.50% 9.92% 13.75% 14.65% 18.00% 19.56% securities in it over the 5.50% 5.64% 9.75% 10.20% 14.00% 14.93% 18.25% 19.85% loan or debit balance. 5.75% 5.90% 10.00% 10.47% 14.25% 15.22% 18.50% 20.15% See Table 1 for the effective annual interest 6.00% 6.17% 10.25% 10.74% 14.50% 15.50% 18.75% 20.45% rate on stated interest rates for 365 days. 6.25% 6.43% 10.50% 11.02% 14.75% 15.79% 19.00% 20.74% 6.50% 6.70% 10.75% 11.29% 15.00% 16.07% 19.25% 21.04% 6.75% 6.96% 11.00% 11.57% 15.25% 16.36% 19.50% 21.34% 7.00% 7.23% 11.25% 11.85% 15.50% 16.65% 19.75% 21.64% 7.25% 7.50% 11.50% 12.12% 15.75% 16.94% 20.00% 21.94% 7.50% 7.76% 11.75% 12.40% 16.00% 17.23% 7.75% 8.03% 12.00% 12.68% 16.25% 17.51% 8.00% 8.30% 12.25% 12.96% 16.50% 17.80% *Based on 365-day year compounded monthly.

84 Affiliated Business Arrangement Arrangement Business Affiliated Account: UBS Your About

This is to give you notice that UBS Financial Services Inc. has a business relationship with UBS Mortgage. Because of this relationship, a referral to UBS Mortgage may provide UBS Financial Services Inc. a financial or other benefit. UBS Mortgage provides mortgage origination services for UBS Financial Services Inc. clients. UBS Mortgage is a trade name for UBS AG, Tampa Branch or, in certain states for certain products, UBS Bank USA. UBS Financial Services Inc. is a wholly-owned subsidiary of UBS AG and an affiliate of UBS Bank USA.

Set forth below is the estimated charge or range of charges by UBS Mortgage for the settlement services listed. There may also be other fees/charges relating to services provided by third party settlement providers, which will be disclosed to you in connection with your loan application. You are NOT required to use UBS Mortgage as a condition for settlement of your loan on the subject property.

THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

Fee Type Charge Origination charge* $350 - $550 Charge (points) for interest 0% to 3% of the loan rate chosen** amount

If you have any questions regarding this notice, please contact your UBS Financial Advisor.

* Under federal law, the “origination charge” disclosed on your Good Faith Estimate and HUD-1 Settlement Statement includes the total of all charges by all loan originators (lenders and brokers) for origination services performed for or on behalf of a lender, regardless of how the fees may be named for state law or other purposes.

** The charge for the interest rate chosen includes any discount points as well as fees paid to lock-in the interest rate. Because the number of discount points you pay varies inversely with a market interest rate, efforts to “buy down” the rate of the loan (i.e., to get a lower rate) may necessitate the payment of points that exceed those shown here.

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86 UBS Client Privacy Notice Rev. July 2011

WHAT DOES UBS Wealth Management Americas–US (UBS-WMA–US) FACTS DO WITH YOUR PERSONAL INFORMATION?

Why? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What? The types of personal information we collect and share depend on the product or service you have with us. This information can include: ƒ Social Security number and income ƒ account balances and assets ƒ credit history and transaction history

How? All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons UBS-WMA–US chooses to share; and whether you can limit this sharing.

Does UBS-WMA–US Reasons we can share your personal information Can you limit this sharing? share?

For our everyday business purposes– such as to process your transactions, maintain Yes No your account(s), respond to court orders and legal investigations, or report to credit bureaus

For our marketing purposes– Yes No to offer our products and services to you

For joint marketing with other financial companies Yes No

For our affiliates' everyday business purposes– Yes No information about your transactions and experiences

For our affiliates' everyday business purposes– Yes Yes information about your creditworthiness

For our affiliates to market to you Yes Yes

For nonaffiliates to market to you No We don't share

For marketing limited-purpose employee stock benefit plan accounts we administer– No We don't share to offer our products and services to you

For householding purposes– consolidating into the same envelope some or all account statements and playbacks of account opening Yes Yes information for different individuals with the same address

To limit ƒ Call your Financial Advisor at the telephone number listed on your account statement, or

our sharing ƒ Call 1-877-697-9499–our menu will prompt you through your choices

Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you may contact us at any time to limit our sharing.

Questions? Call your Financial Advisor or 1-877-697-9499

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Who we are

Who is providing this notice? WMA–US entities as detailed in the UBS-WMA–US legal entities section below.

What we do

How does UBS-WMA–US protect To protect your personal information from unauthorized access and use, we use

my personal information? security measures that comply with federal law. These measures include computer

safeguards and secured files and buildings.

How does UBS-WMA–US collect We collect your personal information, for example, when you my personal information? ƒ open an account or apply for a loan

ƒ give us your income information or provide account information ƒ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can't I limit all sharing? Federal law gives you the right to limit only

ƒ sharing for affiliates' everyday business purposes–information about your creditworthiness ƒ affiliates from using your information to market to you ƒ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

What happens when I limit the sharing for an account I hold Your choices will apply to everyone on your account–unless you tell us otherwise. jointly with someone else?

Definitions

Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies. ƒ Our affiliates include companies with a UBS name and partnerships and other investment vehicles such as those listed in the UBS-WMA–US legal entities section below.

Nonaffiliates Companies not related by common ownership or control. They can be financial and nonfinancial companies. ƒ UBS-WMA–US does not share with nonaffiliates so they can market to you.

Joint marketing A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ƒ Our joint marketing partners include categories of companies such as insurance companies.

Other important information

State law:

CA and VT residents: Under CA and VT state law, we do not household CA and VT residents unless they contact us to household, as described on page 87.

VT residents only: Under VT state law, we will automatically treat VT residents as though they have limited the sharing of information with affiliates for business or marketing purposes unless they contact us, as described on page 87.

UBS-WMA–US legal entities

UBS Financial Services Inc., UBS Financial Services Inc. of Puerto Rico, UBS Trust Company of Puerto Rico, UBS Bank USA, UBS Credit Corp., UBS Trust Company, N.A., and their collective insurance agency affiliates and subsidiaries, all partnerships and other investment vehicles (both registered and unregistered funds) managed or administered by UBS Financial Services Inc.'s Alternative Investment Group1, all funds (both registered and unregistered) advised by UBS Alternative and Quantitative Investment LLC and UBS O'Connor LLC and Ltd. and distributed through UBS Financial Services Inc., and SMA Relationship Trust-Series A, M, T, S and G distributed through UBS Financial Services Inc. and advised by UBS Global Asset Management (Americas) Inc.

1Includes all partnerships and funds utilizing the UBS name, as well as Capitol Street Associates, Chadbourne Road Associates, PW Champlain Associates, L.P., Fitchburg Associates, Franklin Street Associates, Ltd., Fremont Avenue Associates, Geneva Drive Associates, Hamilton Associates Limited Partnership, McCullough Avenue Associates Limited Partnership, Midtown Associates Limited Partnership, Mid-Continent Associates, Northwestern Associates Limited Partnership, Palmetto Center Associates Limited Partnership, Spring Mountain Road Associates, Main Street Associates and Trumbull Associates Limited Partnership.

88 Intentionally Left Blank ©2010 UBS Financial Services Inc. All Rights Reserved. Member SIPC.

MasterCard, Platinum MasterCard and MasterCard Business Card are registered trademarks and service marks of MasterCard International Incorporated.

UBS Financial Services Inc. www.ubs.com/financialservicesinc CN-100428-0452 - R049

UBS Financial Services Inc. is a subsidiary of UBS AG. Agreements and Disclosures Addendum

We have updated certain account agreements and fees, as well as the terms and conditions for services you receive from UBS. The changes For more information are outlined in this Addendum. Although they may not directly affect Call ResourceLine, our interactive voice your relationship with us today, we are required to notify you when we response telephone unit, 24 hours a day, make changes to them. 7 days a week at 800-762-1000, option “0” in the U.S. Outside the U.S., call Highlights ResourceLine collect at 201-352-5257.

• Changes to certain fees and charges Information about how we charge for our services and a detailed explanation of fees • Revised Electronic Delivery Agreement for selected investments and services are available at ubs.com/accountdisclosures. • Clarify how we group, or “household,” statements and other documents to reduce the number of separate communications we send to you

• Addition to Bill Payment and Electronic Funds Transfer Service Agreement

• New cardmember agreement and terms and conditions for card

• New cardmember terms and conditions for Visa Signature credit card

• Changes to the rewards program for the UBS American Express Card, effective August 26, 2011

Why this is important The language in this Addendum modifies and supersedes any corresponding language in the Firm’s Agreements and Disclosures, Client Relationship Agreement and any other new account disclosures you received previously from UBS.

We provide updated versions of the Agreements and Disclosures and other new account disclosures only if there are material changes to the information they contain. Please keep this Addendum for your reference as it contains information that may pertain to services you elect to receive in the future. Fees and Charges

UBS periodically reviews its account terms and conditions, as well as account and transaction fees. The information below describes changes to account fees, terms and conditions. As with certain other fees, accounts that pay an asset-based advisory fee may be exempt from these fees.

Other Fees Type Fee Notes and Description Voluntary Corporate Actions Fee $30 This fee is charged when account owners decide how they would like their assets to be handled when corporations take certain actions, such as voluntary tender offers. American Depositary Receipts (ADR)/Global Varies If you own these types of securities, this fee may be charged by the third-party Depositary Receipts (GDR) Service Fee that holds the underlying assets and manages all registration and recordkeeping for the securities. UBS does not retain any portion of this fee. Support Services and Processing Fee $75 This fee applies to purchases or sales of no-load mutual funds and institutional mutual fund share classes in brokerage accounts, regardless of the amount of the transaction.

and information about other corporate actions. Shareholder communications also includes all account documents related to Householding Method for Statements and Investment Advisory accounts, including Form ADV disclosure brochures, manager profiles, asset allocations, performance reports Other Documents and other disclosures, reports and notices related to advisory accounts. • Quarterly performance reports. As a convenience to you, we may consolidate some or all account • Corporate Employee Financial Services plan advices. statements with the same address in the same envelope. This practice • Tax reporting documents, including 1099s and other tax documents is known as “householding.” Accounts may be added to or excluded that are available now or become available in the future. from householding as clients move to or from the address to which the • Agreements and disclosures relating to the accounts, features and householded account statements are sent. The individual selected to services we offer. receive the householded account statements may also change over time. By enrolling in e-Delivery of any communications described above, you Where owners of joint accounts live at different addresses, the agree that we may also deliver similar firm documents electronically that statements will be sent to at least one of the account owner’s may be available now or in the future. When available, confirmations addresses, and may be householded with any other householded of your personal and account information may be included with account statements sent to that same address. related documents that are delivered electronically through UBS Online Services or any other secure method. Please note: These confirmations Any member of your household has the authority to elect the method are sent periodically and to confirm certain changes to your account by which such statements are delivered for clients at the same mailing information. These confirmations may be viewable by other members of address (paper copies delivered by regular mail or through various your household through UBS Online Services or other secure methods. electronic delivery methods). Likewise, any member of your household Contact your Financial Advisor if you prefer to receive private, paper who is enrolled in UBS Online Services can have access to view all versions of confirmations of personal and account information instead accounts in the household. of electronic versions.

Periodically we are required by industry regulators to send If you enroll in e-Delivery for any of the communications described records of certain personal and financial information to our above, the following terms and conditions will apply to all of the UBS clients. Because we deliver these records with your account statements, accounts (current and future) in your UBS statement household. other members of your household may have access to these records • A valid e-mail address is required for our e-Delivery services and you unless you instruct us to send them to you separately. are responsible for notifying UBS when your e-mail address changes; you may update your e-mail address online through UBS Online If you do not want your statements to be bundled by household, please Services or by calling your Financial Advisor. contact your Financial Advisor and ask to receive individual account • Access to UBS Online Services is required for e-Delivery of documents statements mailed in separate envelopes or delivered separately via that contain any personal information; we may, however, deliver such electronic means. documents by other secure means in the future. • Enrollment in e-Delivery is effective immediately and may be cancelled Electronic Delivery Agreement at any time, either by changing your elections online or by contacting your Financial Advisor; we confirm cancellations and other changes to Effective immediately, previous versions of our electronic delivery your delivery preferences by e-mail or regular mail whether they were agreement are replaced with the version that appears below. initiated by you or UBS. • Enrollment for any e-Delivery services for any of your accounts will UBS offers certain communications through electronic delivery. automatically apply to any accounts that you open in the future at Categories of communications you may enroll in for e-Delivery include: UBS, subject to certain system limitations. • Statements for your UBS accounts, which include your UBS Visa • You may request paper copies of any document we are required to Signature® credit card statement from the Card Issuer; notices deliver to you at any time for no additional charge by contacting your delivered on or with statements such as our annual Client Privacy Financial Advisor. Notice; and messages about transactions and payments. • We notify you by e-mail when a new document is available; to • Trade confirmations and notices regarding account activity. protect your information, the electronic message generally includes • Shareholder communications, including annual and other shareholder a link to a secure UBS website where the document can be viewed reports, preliminary and final prospectuses, proxy materials and downloaded.

2 • If your e-mail address fails, we will mail paper copies of documents The CashConnect feature will apply automatically when you obtain or a paper notice that a document is available with instructions on a Credit Card and is subject to the terms of the Bill Payment and how to access it. Electronic Funds Transfer Service Agreement, even if you do not enroll • By enrolling in e-Delivery, you confirm that you have access to in the service. Transfers from your Account to pay Cash Advances are a printer or other device to print or save documents you may wish considered to be electronic funds transfers for purposes of this Service to retain. Agreement. • We do not charge for e-Delivery, but your Internet access provider may have separate charges. If you have any questions regarding the CashConnect feature, or if you prefer not to have this feature, please call UBS Client Services USA at 800-762-1000. Bill Payment and Electronic Funds Transfer Service Agreement General Terms and Conditions

The language below is a supplement to the terms and conditions that The language below has been added to the firms General Terms and are outlined in the Bill Payment and Electronic Funds Transfer Service Conditions and the Agreements for UBS Services and Products, which Agreement, which is part of our Agreements and Disclosures booklet are part of UBS’s Agreements and Disclosures booklet. and the Important Information About Your Account Upgrade booklet. The description of our Pay Credit Card Feature below is part of the UBS Visa® authorization that you provide when you enroll in our Bill Payment and If you requested one or more debit cards for your eligible Accounts Electronic Fund Transfer Service. This language applies only to credit (each, a “Card”), you authorize us and the Card Issuer to process Card cards issued by UBS Bank USA. transactions on your behalf as described below. Use of your Card(s) in connection with your Account will also be governed by the terms Pay Credit Card Feature and conditions contained in the Cardholder Agreement. You agree to The UBS Bill Payment Service also allows you to pay your UBS Visa comply with these terms and conditions. Signature® credit card on UBS Online Services using a feature called Pay Credit Card. You can make one-time-only payments or set up regular You understand that the Card Issuer will allow Card transactions up monthly payments. For regular monthly payments, you will have the to the “Withdrawal Limit” described below and that transactions with option to pay i) the Statement Balance or ii) the Minimum Payment your Card are deducted automatically from your Account(s) at the end Due or iii) a fixed payment amount that you select. If your Minimum of the month. You agree to have sufficient available assets in your Payment Due for any month is greater than the fixed payment amount Account to make payment in full for Card transactions as they become you selected, you authorize us to deduct that Minimum Payment Due. due under the Cardholder Agreement. You also understand that if Likewise, if your Statement Balance for any month is less than the sufficient assets are not available to cover Card transactions, the Card fixed payment amount you selected, you authorize us to deduct that Issuer may suspend and/or cancel your Card. Statement Balance. By accepting a Card, you agree that you will not dispose of your assets You can schedule regular monthly payments between the 10th and in your eligible Account or any other Account you may have with 20th of every month. You can schedule one-time-only payments any us, if that would negatively affect your ability to pay for your Card day during the month. If we receive your request to make an online transactions as they become due under the Cardholder Agreement. payment by 6:00 p.m. Eastern time, the UBS Visa Signature credit You understand and agree that we have the right to apply assets in card issuer will credit your payment as of that day. If we receive your any of your Accounts, or to pursue any of your other assets to pay request to make an online payment after 6:00 p.m. Eastern time, the debts incurred on your Card. UBS Visa Signature credit card issuer will credit your payment as of the next business day. Please note: any payment made by 6:00 p.m. Eastern time on a weekend or holiday will be applied as of the day you make it; however, your available credit will not be increased until the UBS Visa Debit Card Cardholder next business day. Agreement You are responsible for ensuring that there are sufficient funds in your account for each payment you authorize. If any payment is rejected Cardholder Agreement for insufficient funds, both we and the UBS Visa Signature credit card This UBS Visa Debit card Cardholder Agreement (Cardholder issuer may charge you applicable fees. Except as expressly provided Agreement) governs the usage of, and your rights and responsibilities in this Pay Credit Card Feature section, the terms of the Service with respect to, any UBS Visa Debit card(s) (each, a Card) issued in Agreement apply to your use of the Pay Credit Card Feature. connection with your Account. The Card is issued by UBS Bank USA (also referred to as the Card Issuer) in accordance with an agreement CashConnect Feature for the UBS Visa Signature Credit Card between UBS Bank USA and UBS Financial Services Inc. (also referred If you apply for and receive a UBS Visa Signature credit card (a Credit to as UBS) and this Cardholder Agreement. Your Client Relationship Card) from the issuer (Visa Signature Credit Card Issuer), you authorize Agreement and the terms, conditions and disclosures included in your us to transfer funds to the Visa Signature Credit Card Issuer from Agreements and Disclosures booklet and other new account disclosures your Account to repay any cash advances that the Visa Signature also apply to your Card, but the terms of this Cardholder Agreement Credit Card Issuer tells us you received through your Credit Card at control in the event of any inconsistency. ATMs or financial institutions (Cash Advances). Transfers will be made each business day to repay Cash Advances obtained on the prior day. This Cardholder Agreement also applies to the use of any Cards Transfers will be made up to your Withdrawal Limit. You authorize the you request us to issue to any additional cardholders, as well as to Visa Signature Credit Card Issuer and us to share information regarding any person using any Card issued in connection with your Account Cash Advances in order to facilitate the CashConnect feature. The with express, implied or apparent authority to act on your behalf terms of Cash Advances, and the posting of CashConnect transfers to or on the behalf of any other Cardholder. You agree that the Card the Credit Card, are the responsibility of the Visa Signature Credit Card Issuer may, but is not required to, act on instructions or respond to Issuer and not us. communications from those additional users. You are responsible for the use of all Cards issued in connection with your Account. 3 This Cardholder Agreement does not apply to other features of your may deduct from your Account and pay the Card Issuer the amount of Account, such as bill payments and electronic funds transfers, nor does both your cash withdrawals and purchases on a daily basis. it apply to the UBS Visa Signature credit card. Cancellation Account Access We or the Card Issuer may cancel or revoke your Card, and refuse You may use your Card to: to allow further transactions, at any time for any reason without • Purchase goods and services wherever Visa debit cards are accepted, notice or liability, whether or not you are in default of any part of and at retail locations that participate in and display the network this Cardholder Agreement. Cancellation of your Card will not affect symbols shown on the back of your Card. your liability for transactions and amounts not yet debited from • Get cash from your Account from ATMs across the country and your Account. You agree to surrender and stop using your Card(s) around the world that accept cards with marks shown on the front immediately on the request of the Card Issuer, UBS or any bank or or back of your Cards. merchant acting on instructions from us.

You agree not to use your Card in any illegal transaction, or to Foreign Transactions purchase, trade or carry securities. The Card Issuer and Visa (or their affiliates) will convert transactions in foreign currencies into U.S. dollars. Visa will use its currency conversion Withdrawal Limit procedures that are current at the time of the transaction. Currently, Using your Card, you may get cash and make purchases up to your Visa selects a rate from the range of rates available in the wholesale Withdrawal Limit. Note that your Withdrawal Limit may change currency markets for the applicable central processing date, which rate throughout each day and from day to day. Please note, however, that may vary from the rate Visa itself receives or the government-mandated if your Account is subject to a guarantee that secures the repayment rate in effect for the applicable central processing date. The currency of an obligation or amount you owe UBS or any of our affiliates conversion rate used on the conversion date may differ from the rate in (for example, pursuant to a Credit Line Guarantee Agreement), your effect on the date you used your Card. Withdrawal Limit will be reduced on an ongoing basis by the amount we, or our affiliates, determine in our, or their, sole discretion is In addition, the Card Issuer will charge UBS Cardholders a Foreign necessary to secure the liability. For a complete discussion of how we Country Transaction Fee of (3%) of the U.S. dollar amount of the calculate your Withdrawal Limit, see the section entitled “Withdrawal transaction if you use your Card or account to effect a transaction with Limit” in your Agreements and Disclosures booklet or other new a party located outside of the United States account disclosures. Fees UBS will notify the Card Issuer, on your behalf, of your Withdrawal Except as discussed in the Foreign Transactions section above, no fees Limit. You agree that neither you nor any person authorized by you are assessed in connection with the use or maintenance of your Card. will initiate transactions with your Card(s) that exceed your Withdrawal Limit. You also agree that, if you do exceed your Withdrawal Limit, the When you use an ATM, you may be charged a fee by the ATM amount of all excess transactions will become immediately due and operator or any network used, and you may be charged a fee for a payable at our option. balance inquiry even if you do not complete a fund transfer. UBS will reimburse you unlimited ATM fees imposed by an ATM operator or For security reasons and in order to prevent fraud, we may impose network (to a maximum of $3.00 per transaction). limits on the number and amount of transactions that you can make with your Card. Some network ATM machines may impose additional Refunds limits on cash withdrawals. You agree to accept a credit to your Card instead of a cash refund if you are entitled to a refund for any reason, including in connection Security with the purchase of goods or services with, or any error on, your You agree to take all reasonable precautions to prevent any other Card. person from learning your PIN or otherwise gaining access to your account. You agree that if you give your Card to another person, you Confidentiality must get the Card back in order to terminate that person’s authority to UBS or the Card Issuer will disclose information to third parties about use your Card. your Account, your Card or your transactions: • When necessary to complete a transfer or transaction; Debiting of Transaction From Your Account • To verify the existence and condition of your Account or Card for a Your Card is not a credit card; it is an access device linked to your third party, such as a credit bureau or merchant; Account. You are responsible for all transactions made by using your • To comply with government agency or court orders; Card, and for satisfying all obligations incurred in connection with • If you give your express permission; or its use. You authorize the Card Issuer to notify UBS of all your Card • As described in the UBS Privacy Policy. transactions on a daily basis, and you authorize UBS to pay the Card Issuer on your behalf. UBS will deduct funds from your Account to pay You agree that UBS and the Card Issuer may share information with for your Card transactions. any network that may process your Card transactions, for the purpose of administering your Card account. By signing your Client Relationship Agreement, you authorize UBS, on notice from the Card Issuer, to deduct from your Account the amount Documentation of cash withdrawals made with the Card. You also authorize UBS, You can get a receipt every time you use your Card at an ATM or once each calendar month, to deduct from your Account the amount point-of-sale terminal. Your monthly Resource Management Account of purchases made with the Card that have been received by the Card (RMA) account statement will show the transfers and transactions you Issuer but not yet deducted from your Account. make using your Card.

UBS will pay amounts from your Account in the order specified in the The Card Issuer’s Liability To You section entitled “Order of Permitted Payments” in your New Account If the Card Issuer does not complete a transfer to or from your booklet. If your Account is cancelled or transferred, you agree that UBS Account on time or in the correct amount according to this Cardholder

4 Agreement, the Card Issuer will be liable for your losses or damages to • Tell the Card Issuer your name and Card number; the extent required by Federal law. However, the Card Issuer will not • Describe the error or the transaction you are unsure about, and be liable for your losses or damages if, for instance: explain as clearly as you can why you believe it is an error or why • Through no fault of the Card Issuer, the transfer exceeds your you need more information; Withdrawal Limit; • Tell the Card Issuer the dollar amount of the suspected error. • The ATM where you are making the transfer does not have enough cash; If you tell the Card Issuer verbally, it may require that you submit your • The terminal or system was down, or not working properly, and you complaint or question in writing within ten (10) business days. knew it was not working properly when you started the transfer; • Circumstances beyond the Card Issuer’s control (such as fire or The Card Issuer will determine whether an error has occurred within flood) prevent the transfer, despite reasonable precautions that the ten (10) business days after hearing from you and will correct any Card Issuer has taken; error promptly. If the Card Issuer needs more time to investigate your • Through no fault of the Card Issuer, the balance of your Account complaint or question, however, it may take up to forty-five (45) days was attached, subject to legal process or blocked in some way; or to do so. If the Card Issuer decides to do this, we will credit your • You were trying to defraud the Card Issuer. Account within ten (10) business days for the amount you think is in error, so that you will have use of the funds during the time it takes There may be other exceptions stated in this Cardholder Agreement. the Card Issuer to complete their investigation. If the Card Issuer asks you to put your complaint or question in writing and it does not Contact In The Event Of Unauthorized Transfer receive it within ten (10) business days, we may decide not to credit If you believe your Card or Personal Identification Number (PIN) has your Account. been lost or stolen or that someone has used or may use your Card or PIN without your permission, call 800-762-1000 or write: UBS For errors involving new Accounts, point-of-sale or foreign-initiated Bank USA–Card Operations Division, 1000 Harbor Blvd., 5th Floor, transactions, the Card Issuer may take up to ninety (90) days to Weehawken, NJ 07086. investigate your complaint or question. For new Accounts, the Card Issuer may take up to twenty (20) business days to credit your Account Your Liability For Unauthorized Transfer for the amount you think is in error. Tell Card Issuer at once if you believe your Card or PIN has been lost or stolen, or if your statement shows transfers that you did not make. The Card Issuer will tell you the results within three (3) business days Telephoning is the best way of reducing possible losses. You could lose after completing its investigation. If the Card Issuer decides that there all the money in your Account. was no error, the Card Issuer will send you a written explanation. You may ask for copies of the documents that were used in the You will have no liability for unauthorized use of your Card or PIN if: investigation. i. You have exercised reasonable care in safeguarding your Card and PIN from risk of loss or theft; Changes To This Agreement and Applicable Law ii. You have not reported two or more incidents of unauthorized use We reserve the right to change, modify, delete or add (collectively, within the preceding twelve months; and Changes) to this Cardholder Agreement and to apply any Changes to iii. Your Card account is in good standing. Cards that have been issued. We will provide you with a notice of all Changes as required by applicable law. The Card Issuer may, at any In any event, if you tell the Card Issuer within two (2) business days time and in its sole discretion, choose to not exercise a right without after you learn of the loss or theft of your Card or PIN, you can lose waiving that right. no more than $50.00 if someone used your Card or PIN without your permission. If you do not tell the Card Issuer within two (2) business This Cardholder Agreement and all aspects of the relationship between days after you learn of the loss or theft of your Card or PIN, and the you and the Card Issuer with regard to the Card are governed by and Card Issuer can prove that it could have stopped someone from using construed in accordance with Federal law, and to the extent that state your Card or PIN without your permission if you had told it, you could law applies, the laws of the State of Utah. lose as much as $500.00. Preauthorized Payments Also, if your statement shows transfers that you did not make, If you have told the Card Issuer in advance to make regular payments including those made by Card or PIN, tell the Card Issuer at once. If from your Account using your Card, you can stop any of those you do not tell the Card Issuer within 60 days after the statement was payments. Here’s how: Call the Card Issuer at 800-762-1000, or write mailed to you, you may not get back any money you lost after the 60 to the Card Issuer at UBS Bank USA—Card Operations Division,1000 days if the Card Issuer can prove that it could have stopped someone Harbor Boulevard, 8th Floor, Weehawken, NJ 07086, in time for the from taking the money if you had told it in time. If a good reason Card Issuer to receive your request three (3) business days or more (such as a long trip or a hospital stay) kept you from notifying the Card before the payment is scheduled to be made. If you call, the Card Issuer, the Card Issuer will extend the time periods. Issuer may also require you to put your request in writing and deliver it to the Card Issuer within 14 days after you call. In Case Of Errors Or Questions About Your Transactions Call the Card Issuer at 800-762-1000 or write the Card Issuer at UBS If these regular payments vary in amount, the payee will tell you ten (10) Bank USA—Card Operations Division, 1000 Harbor Boulevard, 8th days before each payment, when it will be made and how much it will Floor, Weehawken, NJ 07086, as soon as you can, if you think your be. You may choose instead to get this notice only when the payments statement or a receipt is wrong, or if you need more information about differ by more than a certain amount from the previous payment, or a transaction listed on your statement or a receipt. when the amount would fall outside certain limits that you set.

If the error concerns an ATM transaction, you must contact the Card If you order the Card Issuer to stop one of these payments three Issuer and not the financial institution or network that operates the (3) business days or more before the transfer is scheduled, and the ATM. You must contact the Card Issuer no later than 60 days after the Card Issuer does not do so, the Card Issuer will be liable for your first statement on which the error or problem appeared was sent losses and damages. to you.

5 UBS Visa Signature Credit Card Terms and Conditions

Account Summary Table

Card Program Level UBS Preferred Visa Signature credit card UBS Visa Signature credit card

Annual Percentage Rate (APR) 13.24% for Purchases This APR will vary with the market based on the Prime Rate.

APR for Balance Transfers 9.99% introductory APR for six billing cycles

After that, your APR will be 13.24%. This APR will vary with the market based on the Prime Rate.

APR for Cash Advances 21.99%

This APR will vary with the market based on the Prime Rate.

Penalty APR and When it Applies 27.24%

This APR may be applied to your account if you: 1. Make a late payment; or 2. Make a payment that is returned.

This APR will vary with the market based on the Prime Rate.

How Long Will the Penalty APR Apply? If your APRs are increased for any of these reasons, the Penalty APR may apply to your balances indefinitely.

Paying Interest Your due date is at least 23 days after the close of each billing cycle. We will not charge you interest on purchases if you pay your entire balance by the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date.

For Credit Card Tips from the To learn more about factors to consider when applying for or using a credit card, visit the website Federal Reserve Board of the Federal Reserve Board at http://www.federalreserve.gov/creditcard.

See next page for more important information about your account.

6 Account Summary Table continued

Fees

Card Program Level UBS Preferred Visa Signature credit card UBS Visa Signature credit card

Annual Fee $495 $0

Transaction Fees:

• Balance Transfer Either $10 or 3% of the amount of each transfer, whichever is greater (maximum fee: $250)

• Cash Advance Either $10 or 3% of the amount of each cash advance, whichever is greater.

Foreign Transaction $0 3% of each transaction in U.S dollars.

Penalty Fees:

• Late Payment Up to $35

• Over-the-Credit-Line $0

• Returned Payment Up to $35

How We Will Calculate Your Balance: We use a method called “daily balance (including new purchases).”

Loss of Introductory APR: We may end your Introductory APR and apply the Penalty APR if you make a late payment.

Billing Error Rights: Information about your rights to dispute transactions and how to exercise those rights is included in the account opening disclosures.

See next page for more important information about your account.

7 Terms and Conditions date of birth, social security number, and other information that will Terms and Conditions Authorization: I understand that the use allow us to identify you. We may also ask to see copies of identifying of any credit card account opened or any card issued in connection documents. with this offer will constitute my acceptance of and will be subject to the terms and conditions of these Terms and Conditions and Notice to Married Wisconsin Residents: No provision of any marital the Cardmember Agreement that will be sent to me. I agree to be property agreement, unilateral statement under Section 766.59 of responsible for all charges incurred according to the Cardmember the Wisconsin statutes, or court order under Section 766.70 adversely Agreement. I understand that after my account is opened, the terms affects the interest of the Bank, unless the Bank, prior to the time of my account are subject to change as provided in the Cardmember the credit is granted or an open-end credit plan is entered into, is Agreement. furnished a copy of the Agreement, Statement or Decree, or has actual knowledge of the adverse provision. If I am a married Wisconsin About Your Application and This Offer: Credit cards are issued resident, credit extended under this account will be incurred in by UBS Bank USA (referred to as Bank, or “we,” “us,” and “our”). the interest of my marriage or family. Depending on our review of your application and your credit history, or if the income you report is insufficient based on your current Balance Transfers. Here’s How it Works: To request a balance obligations, we may be unable to open an account for you. You also transfer please enter the 15 or 16 digit account number from the understand that if your application is approved for an account, the APR MasterCard®, Visa®, American Express®, or Discover® Card account that and the type of account that you receive may be determined based on you want us to process a balance transfer to. Upon approval of your your creditworthiness. Please review the materials provided with your application we will provide you with your Cardmember Agreement Cardmember Agreement for more details. Omission of any information and to the extent permitted by your credit line we will process the requested on this application may result in a denial of credit. This offer requested balance transfer payment to the credit card account(s) which is available only to applicants who are permanent residents of the 50 you have requested. If the total amount you request exceeds the United States, the District of Columbia and U.S. Territories. assigned credit line on this account, we may either decline the request or send a partial payment to your creditor(s) in the order you provided Changes to Account and Benefits Terms: We reserve the right them to us. The amount of available credit on this account will be to change the APR and other account terms in accordance with the reduced by the amount of the balance transfer and the related balance Cardmember Agreement, Utah law and the Federal Truth in Lending transfer fees. We reserve the right to decline to process any requested Act. We also reserve the right to change the benefits and features balance transfer. We will not process a request to transfer a balance associated with the card or the account. from any other account you may have with us. Balance transfers incur interest from the transaction date and they do not have the same About Your Credit Report, Your Credit Performance, and your dispute rights as transactions conducted with a credit card. Credit Information: You agree that we have the right to obtain a current credit report in connection with our review of your application A balance transfer may take up to four weeks to post to your other and, subsequently, in connection with a requested charge to any credit card accounts. Continue to pay each creditor until the balance account with us, the renewal, review or collection of your account, or transfer appears on the other account as a credit. If you would like to a change in your credit line; and that we have the right to report to complete a balance transfer from another account that is not a Visa, others our experience with you without disclosing your credit eligibility MasterCard, American Express, or , please call the phone information. Upon your request, we will tell you the name and number on the back of your new credit card once you are approved. address of each consumer reporting agency from which we obtained a consumer report about you. After your account is opened, we will Introductory APR for Balance Transfers is available on all Balance periodically review your credit performance. Transfers made during the first six billing cycles after account opening. The introductory APR will be applied to each eligible Balance Transfer If you are a client of UBS Financial Services Inc. (UBS FSI), you further for the first six billing cycles after the date of the Balance Transfer. agree that UBS FSI may share credit eligibility and other related information with the Bank in connection with our review of your Automatic Re-payment of Cash Advances through CashConnect: application. The CashConnect feature on your UBS credit card account will automatically repay new Cash Advances obtained from ATMs and How the Variable APRs on Your Account will be Determined: The financial institutions (CashConnect Cash Advances), each night, with APRs on your account will be determined each billing cycle by adding available funds from your UBS Resource Management Account® a margin to the Prime Rate (which will be the highest rate published in (RMA®) or your UBS Business Services Account BSA® (either referred to the Money Rates column of The Wall Street Journal on the last business as UBS Account). You will incur no interest charges on CashConnect day of each month). See your Cardmember Agreement for more detail. Cash Advances, as long as there are sufficient available funds in your The APRs noted above are current as of 06/23/11 using a Prime Rate of UBS Account to repay your CashConnect Cash Advance transaction in 3.25%. To find out what may have changed please call 800-762-1000. full when we first seek payment from your UBS Account. If sufficient available funds are not available in your UBS Account to pay off your Important Information About Procedures for Opening a New CashConnect Cash Advances balance in full, then the Variable APR Account: To help the government fight the funding of terrorism on Cash Advances (as listed in the Account Summary Table) will apply and money laundering activities, Federal law requires all financial as of the original transaction date on any remaining balance. You will institutions to obtain, verify, and record information that identifies be charged the Variable APR on Cash Advances on your remaining each person who opens an account. What this means to you: When CashConnect Cash Advance balance until it is repaid in full. Applicable you apply for an account, we will ask for your name, street address, ATM surcharge fees may apply. No other account balances are paid

8 through the CashConnect feature. The CashConnect feature only applies if you have a UBS Account. If you have a UBS Account and choose not to participate in the CashConnect feature, please contact UBS Financial Services Inc. at 800-762-1000.

What is considered a Cash Advance The purchase of a money order, travelers’ check, foreign currency, lottery ticket, gambling chip, or wire transfer is a cash advance.

The Cash Advance Transaction Fee applies, and is equal to $10 or 3% of the amount of each transaction, whichever is greater.

Authorized Card Manager Authorized Card Manager means the person you designate to manage your Account, make decisions about your Account, and obtain information about your Account.

Rewards If your RMA, Business Services Account BSA, Card(s) or enrollment in the Program is cancelled, you will be allowed not less than 90 days following the effective date of account and/or cards services termination to redeem outstanding Points for gift cards or merchandise or to transfer the points to an open UBS card account. The Bank reserves the right to close your UBS credit card account without notice in the event your RMA or Business Services Account BSA is closed for any reason. In the event we close your UBS credit card account, you will have not less than 90 days to redeem your Points for gift cards or merchandise.

About Us and This Credit Card Program This credit card program is issued and administered by UBS Bank USA, located in Salt Lake City, Utah. Any credit card account opened in response to this application shall be governed by federal law and, to the extent state law applies, the laws of the State of Utah. Visa is a registered trademark of Visa USA, Inc. and is used by us pursuant to a license.

The information contained in these disclosures is accurate as of 06/23/11 and may change after this date.

9 Account Summary Table (For Residents of Iowa and Puerto Rico Only)

Interest Rates and Interest Changes

Card Program Level UBS Preferred Visa Signature credit card UBS Visa Signature credit card

Annual Percentage Rate 13.24% (APR) for Purchases This APR will vary with the market based on the Prime Rate.

APR for Balance Transfers 9.99% introductory APR for six billing cycles

After that, your APR will be 13.24%. This APR will vary with the market based on the Prime Rate.

APR for Cash Advances 21.99%

This APR will vary with the market based on the Prime Rate.

Penalty APR and When 27.24% it Applies This APR may be applied to your account if you: 3. Make a late payment; or 4. Make a payment that is returned.

This APR will vary with the market based on the Prime Rate.

How Long Will the Penalty APR Apply? If your APRs are increased for any of these reasons, the Penalty APR may apply to your balances indefinitely.

Paying Interest Your due date is at least 23 days after the close of each billing cycle. We will not charge you interest on purchases if you pay your entire balance by the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date.

For Credit Card Tips To learn more about factors to consider when applying for or using a credit card, visit the website of the from the Federal Federal Reserve Board at http://www.federalreserve.gov/creditcard. Reserve Board

Fees

Card Program Level UBS Preferred Visa Signature credit card UBS Visa Signature credit card

Annual Fee $495 $0

Transaction Fees:

• Balance Transfer Either $2 or 2% of the amount of each transfer, whichever is greater (maximum fee: $10)

• Cash Advance Either $2 or 2% of the amount of each cash advance, whichever is greater (maximum fee: $10)

Foreign Transaction 0%

Penalty Fees:

• Late Payment Up to $15

• Over-the-Credit-Line $0

• Returned Payment Up to $15

How we will calculate your balance: We use a method called “average daily balance (including new purchases).”

Loss of introductory APR: We may end your Introductory APR and apply the Penalty APR if you make a late payment.

Billing error rights: Information on your rights to dispute transactions and how to exercise those rights is included in the account opening disclosures.

See next page for more important information about your account.

10 Terms and Conditions application we will provide you with your Cardmember Agreement and Terms and conditions authorization: I understand that the use to the extent permitted by your credit line we will process the requested of any credit card account opened or any card issued in connection balance transfer payment to the credit card account(s) which you with this offer will constitute my acceptance of and will be subject have requested. If the total amount you request exceeds the assigned to the terms and conditions of these Terms and Conditions and credit line on this account, we may either decline the request or send the Cardmember Agreement that will be sent to me. I agree to be a partial payment to your creditor(s) in the order you provided them responsible for all charges incurred according to the Cardmember to us. The amount of available credit on this account will be reduced Agreement. I understand that after my account is opened, the terms by the amount of the balance transfer and the related balance transfer of my account are subject to change as provided in the Cardmember fees. We reserve the right to decline to process any requested balance Agreement. transfer. We will not process a request to transfer a balance from any other account you may have with us. Balance transfers incur interest About your application and this offer: Credit cards are issued by from the transaction date and they do not have the same dispute rights UBS Bank USA (referred to as “Bank,” or “we,” “us,” and “our”). as transactions conducted with a credit card. Depending on our review of your application and your credit history, or if the income you report is insufficient based on your current A balance transfer may take up to four weeks to post to your other obligations, we may be unable to open an account for you. You also credit card accounts. Continue to pay each creditor until the balance understand that if your application is approved for an account, the APR transfer appears on the other account as a credit. If you would like to and the type of account that you receive may be determined based on complete a balance transfer from another account that is not a Visa, your creditworthiness. Please review the materials provided with your MasterCard, American Express, or Discover card, please call the phone Cardmember Agreement for more details. Omission of any information number on the back of your new credit card once you are approved. requested on this application may result in a denial of credit. This offer is available only to applicants who are permanent residents of the 50 Introductory APR for Balance Transfers is available on all Balance United States, the District of Columbia and U.S. Territories. Transfers made during the first six billing cycles after account opening. The introductory APR will be applied to each eligible Balance Transfer Changes to account and benefits terms: We reserve the right to for the first six billing cycles after the date of the Balance Transfer. change the APR and other account terms in accordance with the Cardmember Agreement, Utah law and the Federal Truth in Lending Automatic re-payment of Cash Advances through CashConnect: Act. We also reserve the right to change the benefits and features The CashConnect feature on your UBS credit card account will associated with the card or the account. automatically repay new Cash Advances obtained from ATMs and financial institutions (CashConnect Cash Advances), each night, with About your credit report, your credit performance, and your available funds from your UBS Resource Management Account® (RMA®) credit information: You agree that we have the right to obtain a or your UBS Business Services Account BSA® (either referred to as UBS current credit report in connection with our review of your application Account). You will incur no interest charges on CashConnect Cash and, subsequently, in connection with a requested charge to any Advances, as long as there are sufficient available funds in your UBS account with us, the renewal, review or collection of your account, Account to repay your CashConnect Cash Advance transaction in or a change in your credit line; and that we have the right to report full when we first seek payment from your UBS Account. If sufficient to others our experience with you without disclosing your credit available funds are not available in your UBS Account to pay off your eligibility information. Upon your request, we will tell you the name and CashConnect Cash Advances balance in full, then the Variable APR address of each consumer reporting agency from which we obtained on Cash Advances (as listed in the Account Summary Table) will apply a consumer report about you. After your account is opened, we will as of the original transaction date on any remaining balance. You will periodically review your credit performance. be charged the variable APR on Cash Advances on your remaining CashConnect Cash Advance balance until it is repaid in full. Applicable If you are a client of UBS Financial Services Inc. (UBS FSI), you further ATM surcharge fees may apply. No other account balances are paid agree that UBS FSI may share credit eligibility and other related through the CashConnect feature. The CashConnect feature only information with the Bank in connection with our review of your applies if you have a UBS Account. If you have a UBS Account and application. choose not to participate in the CashConnect feature, please contact UBS Financial Services Inc. at 800-762-1000. How the variable APRs on your account will be determined: The APRs on your account will be determined each billing cycle by adding What is considered a Cash Advance a margin to the Prime Rate (which will be the highest rate published in The purchase of a money order, travelers’ check, foreign currency, the Money Rates column of The Wall Street Journal on the last business lottery ticket, gambling chip, or wire transfer is a cash advance. day of each month). See your Cardmember Agreement for more detail. The APRs noted above are current as of 06/23/11 using a Prime Rate of The Cash Advance Transaction Fee applies, and is equal to $2 or 2% 3.25%. To find out what may have changed please call 800-762-1000. of the amount of each transaction, whichever is greater (maximum fee: $10). Important information about procedures for opening a new account: To help the government fight the funding of terrorism and Authorized Card Manager money laundering activities, Federal law requires all financial institutions Authorized Card Manager means the person you designate to manage to obtain, verify, and record information that identifies each person your Account, make decisions about your Account, and obtain who opens an account. What this means to you: When you apply for information about your Account. an account, we will ask for your name, street address, date of birth, social security number, and other information that will allow us to Rewards identify you. We may also ask to see copies of identifying documents. If your Resource Management Account, Business Services Account BSA, Card(s) or enrollment in the Program is cancelled, you will be allowed Balance transfers. Here›s how it works: To request a balance not less than 90 days following the effective date of account and/or transfer please enter the 15 or 16 digit account number from the cards services termination to redeem outstanding Points for gift cards or MasterCard®, Visa®, American Express®, or Discover® Card account that merchandise or to transfer the points to an open UBS card account. The you want us to process a balance transfer to. Upon approval of your Bank reserves the right to close your UBS credit card account without

11 notice in the event your RMA or Business Services Account BSA is closed for any reason. In the event we close your UBS credit card Additional Disclosures account, you will have not less than 90 days to redeem your Points for Rewards Program gift cards or merchandise. Effective August 26, 2011, UBS will make changes to its rewards program for the UBS American Express® Card. About us and this credit card program: This credit card program is issued and administered by UBS Bank USA, located in Salt Lake City, This Addendum sets forth changes to the UBS Rewards Program terms Utah. Any credit card account opened in response to this application and conditions that are included in the documents we provide to shall be governed by federal law and, to the extent state law applies, you when you open a UBS account. The changes affect only the UBS the laws of the State of Utah. Visa is a registered trademark of Visa American Express Card; they do not affect existing UBS credit cards. USA, Inc. and is used by us pursuant to a license. August 26, 2011 is the last date that you will earn My Choice Rewards The information contained in these disclosures is accurate as of points for purchases made using your UBS American Express Card. 06/23/11 and may change after this date. Your purchases must post to your account by August 26, 2011 to be eligible to earn points. In most cases, purchases will post on the same day as the purchase. However, there may be a delay of several days or longer, particularly for online purchases or purchases outside of the U.S.

If you only have a UBS American Express Card, January 31, 2012 is the last date you can redeem your points. After January 31, 2012, your points will expire.

You can continue to earn My Choice Rewards points by opening and using a UBS Visa Signature® credit card. Plus, the points you have already earned will not expire so long as the credit card account associated with your UBS account is open and in good standing.

Visa Signature is a registered service mark of Visa International. UBS Visa Signature credit cards are issued and administered by UBS Bank USA with permission from Visa U.S.A. Incorporated.

©2011 UBS Financial Services Inc. All rights reserved. Member SIPC.

UBS Financial Services Inc. ubs.com/fs 110325-2860-016

UBS Financial Services Inc. is a subsidiary of UBS AG.