E*TRADE Financial, LLC PO Box 484 Jersey City, NJ 07303 <Month, DD, YYYY> <Name> <Street Address 1> <Street Address 2> <City, State, Zip, Country> Re: Updates for your E*TRADE account Dear <First Name> <Last Name>, We’re writing to provide you with updated information regarding your E*TRADE account. Please review these changes carefully and note that no action is required from you at this time. We are sharing to keep you updated about your account. Updates to the Customer Relationship Summary Although we recently sent you our E*TRADE Securities LLC and E*TRADE Capital Management, LLC Customer Relationship Summary (Relationship Summary), there are material changes to it, and we are required to notify you about them. Enclosed are the recent updates. Here’s a summary of what has changed: Customer Relationship Summary dated October 30, 2020 • E*TRADE is now part of Morgan Stanley, a leading global financial services firm providing a wide range of investment banking, securities, wealth management, and investment management services. This means that we have added references in the Relationship Summary about our affiliation and how to find out more about Morgan Stanley and its affiliates. • When you purchase Morgan Stanley proprietary products from us, we will earn more revenue from those products. Proprietary products are investments that are issued, sponsored, or managed by Morgan Stanley affiliates. Although E*TRADE Capital Management, LLC (ETCM) will not select these proprietary products for Advisory Accounts, unaffiliated and independent money managers (not part of ETCM or Morgan Stanley) in certain ETCM products can use proprietary products offered by Morgan Stanley affiliates. Advisors in the E*TRADE Advisor Network who are also unaffiliated and independent, can also select Morgan Stanley proprietary products. • In addition, the Relationship Summary notes that eligible customers may be referred over to Morgan Stanley affiliates for possible services now that E*TRADE is part of Morgan Stanley. Customer Relationship Summary dated December 4, 2020 • The E*TRADE Advisor Network was terminated effective December 4, 2020. Any references to the E*TRADE Advisor Network were removed. Update of Program Banks for the ESDA Program Please note, this notification applies to customers enrolled in the ESDA program only.To determine the current cash sweep option for your account, please refer to your account statement under “Cash and Cash Equivalents.” The following FDIC-insured participating banks (Program Banks) have been added to the Extended Sweep Deposit Program (ESDA): 1) AXOS Bank 2) Bank of Rhode Island 3) Brookline Bank 4) Dedham Savings Bank 5) Fidelity Bank 6) Flushing Bank 7) Origin Bank 8) Silvergate Bank 9) WebBank Funding for the above Program Banks will begin on or around January 31, 2021. For a complete list of Program Banks, visit etrade.com/programbanks. What this means for your account: • No action is required on your part, and the way you access cash in your brokerage account for spending or investing will remain unchanged. • FDIC insurance coverage for ESDA is still $250,000 per Program Bank and up to $1.25 million for individual accounts and $2.5 million for joint accounts.¹ • You may opt out of having funds swept to any Program Bank at any time. To do so, please call us at 800-ETRADE-1 (800-387-2331). • If you have questions about any of these changes or wish to change your uninvested cash option, please visit us.etrade.com/e/t/estation/esreqcsoption. Update for retirement account holders If you have a retirement account, please note that the Coronavirus Aid, Relief, and Economic Security (CARES) Act suspended required minimum distribution (RMD) rules. You are not required to take any RMD for 2020. The suspension also applies to required distributions from Beneficiary IRAs. As always, it is our pleasure to serve you. Sincerely, E*TRADE PLEASE READ THE IMPORTANT DISCLOSURES BELOW. The E*TRADE Financial family of companies provides financial services that include trading, investing and related banking products and services to retail customers. 1. In the ESDA Program, your available cash balances will automatically sweep between the brokerage account and deposit accounts at participating depository institutions, with deposits at each Program Bank insured by the FDIC for up to $250,000. The total FDIC insurance coverage for cash in your ESDA account will be up to $1,250,000 per account ($2,500,000 for joint accounts). Any amount in excess of $1,250,000 ($2,500,000 for joint accounts) will not be covered by FDIC insurance. You also should include other accounts you hold in the same title and capacity at any of the Program Banks in calculating FDIC insurance coverage limits, because coverage limits are set per customer across all accounts. The Relationship Summary is not an offer to sell or a solicitation of an offer to buy securities, products or services by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The products and services described in the Relationship Summary are not marketed to residents outside of the United States and may not be available to persons or entities in foreign jurisdictions where prohibited. Securities products and services offered by E*TRADE Securities LLC, Member FINRA/SIPC. © 2020 E*TRADE Financial, LLC, a business of Morgan Stanley. All rights reserved. 1120-CRSMSPC-P66651 E*TRADE SECURITIES LLC AND E*TRADE CAPITAL MANAGEMENT, LLC Relationship Summary, effective December 4, 2020 E*TRADE Securities LLC (ETS) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). ETS was founded in 1982 and conducted its first online trade in 1983. E*TRADE Capital Management, LLC (ETCM), an affiliate of ETS, is registered with the SEC as an investment adviser.1 ETCM began offering investment advisory services under its current name in 2008. ETS and ETCM provide online brokerage, investment advisory services, and related products and services primarily to retail investors. ETS and ETCM became indirect subsidiaries of Morgan Stanley, a leading global financial services firm providing a wide range of investment banking, securities, wealth management, and investment management services through the purchase of E*TRADE Financial Corporation in the fourth quarter of 2020. For more information, please refer to morganstanley. com/about-us-newsroom. The brokerage services offered by ETS, and the fees for those services, are different from the investment advisory services provided by ETCM, and it’s important for you to understand the differences. You should consider these differences when deciding what type or combination of services and accounts are right for you. We are required to share this summary to help you understand the different services ETS and ETCM provide, allowing you to make more informed decisions. Please do not hesitate to call us at 800-ETRADE-1 (800-387-2331) with any questions. Free and simple tools are available to research firms and financial professionals at investor.gov/crs, which also provides educational materials about broker-dealers, investment advisers, and investing. What investment services and advice can you provide me? E*TRADE Securities (ETS) E*TRADE Capital Management (ETCM) Description of ETS offers brokerage services to retail investors and ETCM offers discretionary investment advisory services. Services participants in equity compensation programs of Discretionary means that we or an unaffiliated money employers who are clients of E*TRADE Financial Corporate manager make trades for you based on your selected Services, Inc., an affiliate of ETS. Our primary business portfolio strategy without consulting you in advance of is helping customers with orders to buy and sell stocks, making trades. Depending on the program selected, your exchange-traded funds (ETFs), mutual funds, fixed income account may be invested in mutual funds, ETFs, stocks, investments, and other securities or investment strategies and/or fixed income securities. such as trading options and margin. To assist and educate customers, ETS also offers investor education, research, Some types of E*TRADE accounts are not eligible for all and financial tools, free of charge. ETS may also refer you ETCM offerings. Customers accessing Core Portfolios to Morgan Stanley affiliates providing a variety of services (available online or through mobile) do not receive advice and its educational tools can include Morgan Stanley about whether or not to open a Core Portfolios advisory branded products. account. We also will provide you with investment recommendations from time to time with regard to investment strategies, opening a brokerage or an advisory account, and certain fixed income trades, as described below. Any investment recommendation that we give you is valid at the time it is made and only for that day. Monitoring ETS does not provide agreed-upon monitoring for your On a daily basis, ETCM monitors your ETCM account account. As mentioned above, this means that ETS does activity, the investments in your ETCM accounts, and not monitor recommendations made to you after they how well your ETCM account aligns with your investment are made, and it does not check your asset allocation or strategy, but we do not try to time the market (i.e., make fluctuations in your investments on an ongoing basis. trades for you at the “perfect time”). Account rebalancing depends on the product and is based on how much the asset allocation moves away from your investment strategy and/or calendar rebalancing. ETCM monitors only ETCM accounts. Investment ETS has no authority to make investments in your account ETCM’s authority to act on your behalf is limited to Authority without your instruction. Accordingly, you make all managing your portfolio (onboarding, monitoring, investment decisions.