A. GENERAL INFORMATION NBC Securities, Inc. (“NBCS”) is an Alabama corporation which provides an array of financial and investment services to Clients. NBCS is registered as a broker-dealer, member FINRA and SIPC, and is a registered investment advisor. The terms “We”, “Our”, “Us”, “NBCS”, “NBCS FA” and “FA” refer to NBC Securities, Inc. B. INVESTMENT ADVISORY SERVICES OFFERED BY NBCS NBCS offers financial and investment advisory services, including investment management, financial planning and general investment account services (“Advisory Services”) to Clients under an investment advisory relationship. Upon the initiation of an investment advisory relationship with a Client, NBCS will review a Client's financial circumstances, prior investment experience, investment goals and objectives, investment restrictions, if any, risk tolerances, a risk profile, and gather other Client information using the NBCS Client Profile (“Client Profile”). The firm also includes in its review, consideration as to the suitability and appropriateness of a fee-based investment account for a particular Client. The Client Profile information is maintained by NBCS and updated Client information is either provided by a Client or obtained by the NBCS affiliated financial advisor (“NBCS FA” or “FA”) or NBCS on a periodic basis. NBCS provides Advisory Services to Clients through several investment advisory programs (“IA Program”) as a program sponsor: (1) Professional Asset Management Consulting Program (“ProAM Program”); (2) Advisors' Portfolio Services Program (“APS Program”); and NBCS also offers IA programs sponsored by RBC Capital Markets LLC (“RBC”), and other third-party sponsors. Third-party IA Programs include RBC Consulting Services (formerly Resource II), RBC Total Strategy, RBC Advisor and Envestnet. IA Programs available through NBCS may be added or deleted by NBCS from time to time. Under an IA program, a specified fee (“Advisory Fee”) is charged for Advisory Services. The Advisory Fee usually includes the cost associated with the execution of investment transactions; however, exceptions may apply (See Item 5 for additional details). The IA Programs offered by NBCS may include the Advisory Services of NBCS, RBC, a third-party independent sub-advisor, and or an affiliated/proprietary sub-advisor. The sponsor or provider of the IA Program and any associated sub-advisors will provide a copy of their disclosure documents (ADV Part 2A) which will further describe the associated program, account services, account investment minimums, fees, and risks of investment. These additional disclosure documents are available to a Client from the NBCS FA. NBCS considers the Advisory Services provided in an IA Program as giving continuous advice to a client or making investments for a client based on the individual needs of the Client and based on the information provided by the Client in the Client Profile. Clients participating in an IA Program may contact their NBCS FA at their convenience. The IA Programs are available to individuals, ERISA-qualified accounts, trusts and estates, business accounts, and other suitable investors. ProAM Program The ProAM Program is a fee-based IA Program sponsored by NBCS that gives an NBCS affiliated financial advisor NBCS FA the ability to provide professional account management from a group of participating investment managers (a “ProAM Manager” or “Investment Manager”) who meet NBCS’ eligibility requirements for participation. NBCS performs periodic due diligence reviews on the ProAM Managers participating in the ProAM Program. In the ProAM Program, an NBCS FA will assist the Client in identifying a ProAM Manager based on the Client's investment objectives, risk tolerance, and risk profile as provided in the Client Profile and taking into consideration the investment style and philosophy, strategies, and objectives of a ProAM Manager. Upon the selection of a ProAM Manager, an investment account (“ProAM Account”) will be opened for the Client and the assets within the ProAM Account will be managed by the ProAM Manager. The selected ProAM Manager has discretionary trading authority for the ProAM Account. NBCS may recommend the services of multiple ProAM Managers to a Client. NBCS may provide a client with periodic performance reports for the Account. NBCS may recommend a change in a ProAM Manager to a Client based on ProAM Manager’ performance data or other criteria or based upon a change in a Client’s investment objectives, risk tolerance, risk profile or financial circumstances. The transfer of a Client’s Account to a different ProAM Manager is at the Client's discretion. NBCS does not have discretionary trading authority for a ProAM Account unless NBCS Asset Management is appointed by the Client as ProAM Manager. NBCS Asset Management is a division of NBCS. See Items 5 and 10, below for additional details. Using a third-party money manager, investment manager, or professional money manager does not guarantee a profit or protect against market loss. APS Program The APS Program is a fee-based IA Program sponsored by NBCS in which a client may receive Advisory Services and investment advice from an FA for investing in various asset classes. This may be accomplished through no-load mutual funds, Advisor Class Mutual Fund Shares, equities and fixed-income securities, and other eligible securities. In the APS Program, an NBCS FA will provide a Client with Advisory Services in an investment account (“APS Account”) based on the Client's investment objectives, risk tolerance, and risk profile as provided in the Client Profile. In a “Standard APS Account”, the Client pays an asset-based fee for Advisory Services in addition to a transaction processing fee. The amount of the transaction fees is disclosed in the Client Profile. See Item 5, below. Within the APS Program, a participating Client has the choice to select a fee option for the APS Account defined as “APS- Plus Account”. In an APS-Plus Account, the Client pays an asset-based fee for Advisory Services and receives a limited annual trade allotment with no transaction fee. The annual trade allotment is determined based on the account value. If the number of actual trades exceeds the annual trade allotment, then the Client will pay a transaction fee for each trade over the annual allotted amount. The amount of the annual trade allotments and the amount of transaction fees, if applicable, are disclosed in the Client Profile. See Item 5, below for additional details. In an APS Account, a client may designate discretionary or non-discretionary trading authority to the NBCS FA. Discretionary trading authority must be specifically granted by the Client on the Client Profile. Client understands that the APS Account is not for day trading or other high frequency trading activity, including frequent option trading, and NBCS may, without limiting any other rights or remedies, restrict or terminate the APS Account if it determines that Client is engaging in such activity. NBCS may also elect to terminate an APS Account at any time if it determines the client’s transaction history is no longer suited for a fee-based investment advisory account. In addition, NBCS may restrict or terminate the APS Account if the Client purchases or transfers into the account ineligible securities without the prior consent of NBCS. NBCS reserves the right, in its sole discretion, to adjust the annual APS Program fee for changes in security type, trading activity, or Account size at any time without notice. Envestnet Program Envestnet is an investment management firm founded in 1999 that provides investment management and investment advisory services through independent investment advisors (“Advisor(s)”) for use with Advisors’ clients (each a “Client”). Envestnet also serves institutional clients such as pension or profit-sharing plans, trusts, estates, and corporations and provides advisory and research services directly to Advisors. As of December 31, 2016, Envestnet Asset Management, Inc. had $93 billion in assets under management and $223 billion in assets under administration. Utilizing the Envestnet platform tools, the Advisor will allocate the Client’s assets among the different options in the Program and determine the suitability of the asset allocation and investment options for each Client, based on the Client’s needs and objectives, investment time horizon, risk tolerance, and any other pertinent factors. Envestnet uses several proprietary analytical tools and commercially available optimization software applications in developing its asset allocation strategies. Among the factors considered in designing these strategies are historical rates of risk and return for various asset classes, correlation across asset classes, and risk premiums. For all Programs, the Client directly owns the underlying securities, mutual funds or Exchange Traded Funds (“ETFs”) in each of the Program’s investment strategies. Mutual funds, ETFs, closed-end funds, unit investment trusts and real estate investment trusts exchange traded funds are collectively referred to throughout this document generally as a “Fund” or “Funds." For more information about the operation of the Envestnet Program, please see the Envestnet Program Agreement, Terms and Conditions and Disclosure Document Form ADV, Part 2A. RBC Consulting Services (formerly Resource II) The RBC Consulting Services (formerly Resource II) Program (“Consulting Services (formerly Resource II)”) is a fee-based IA Program sponsored by RBC and made available to NBCS as an introducing broker to RBC. In the Consulting Services (formerly Resource II) Program, the Client will sign a Consulting Services (formerly Resource II) Program Agreement with RBC and the NBCS, in addition to the NBCS Client Agreement. In Consulting Services (formerly Resource II), RBC makes available Investment Managers or Model Providers who meet RBC’s eligibility requirements for participation. The client does not sign a separate agreement with the Investment Manager or Model Provider. Within Consulting Services (formerly Resource II), a Client Account is managed by one or more participating professional investment managers (a “Consulting Services (formerly Resource II) Manager” or “Investment Manager”). An NBCS FA will consult with the Client in identifying and selecting a Consulting Services (formerly Resource II) Manager whose investment philosophy and objectives may be compatible with the Client’s Risk Profile. NBCS may recommend the services of multiple Consulting Services (formerly Resource II) Managers to a Client. A Consulting Services (formerly Resource II) Manager has discretionary trading authority over the Account. NBCS does not have discretionary trading authority over an Account within Consulting Services (formerly Resource II). Alternatively, through Consulting Services (formerly Resource II), RBC offers model portfolios, managed by RBC acting as an overlay manager. As the overlay manager, RBC manages the Account under model portfolios provided by RBC or another model portfolio provider (“Model Provider”). See the RII Program Agreement for more information about the overlay manager. The NBCS FA may provide the Client with information on model portfolios representing different investment styles and strategies that may be compatible with the Client’s Risk Profile. In the Program Agreement, the Client will select Model Provider. The Model Provider selects securities by delivering a model portfolio (“Model Portfolio”) to RBC. In RBC’s capacity as the overlay manager, RBC will implement the Model Portfolio in the Account, subject to any written Investment Guidelines submitted by the Client that are accepted by RBC. In certain instances, consistent with best execution obligations, RBC, as overlay manager, may choose to delegate trading responsibilities to the Model Provider and the Model Portfolio from RBC. This generally will result in additional transaction costs to the Client. This delegation of trades only applies to Model Portfolio changes. All maintenance trades will continue to be executed by RBC as overlay manager. Under this arrangement the Model Provider will be responsible for best execution. Where RBC does not act as the overlay manager, the Investment Manager you select will implement the investment decisions for the Account. NBCS may recommend a change in a Consulting Services (formerly Resource II) Manager to a Client based on Consulting Services (formerly Resource II) Manager’ performance data or other criteria or based upon a change in a Client’s investment objectives, risk tolerance, risk profile or financial circumstances. The transfer of a Client’s Consulting Services (formerly Resource II) Account to a different Consulting Services (formerly Resource II) Manager is at the Client's discretion. For more information about the operation of the Consulting Services (formerly Resource II) Program, please see the Consulting Services (formerly Resource II) Program Agreement, Terms and Conditions and Disclosure Document Form ADV, Part 2A. RBC Total Strategy The RBC Total Strategy Account Program (“TSA Program”) is a fee-based IA Program sponsored by RBC and made available to NBCS as an introducing-broker to RBC. In the TSA Program, Client will sign a TSA Program Agreement with RBC and the NBCS, in addition to the NBCS Client Agreement. In the TSA Program, an “Overlay Manager” will manage the Account on a discretionary basis according to a Client’s Investment Guidelines. NBCS does not provide any discretionary management services under the TSA Program. The management of the Account may include tax overlay management services. Account assets may be invested in mutual funds, exchange traded products (“ETPs”), including exchange traded funds (ETFs), and exchange traded notes (ETNs) and or in accordance with one or more model portfolios (each, a “Model Portfolio”) provided by one or more investment managers (each, a “Model Portfolio Provider”) pursuant to a model portfolio agreement between RBC and the Model Portfolio Provider. RBC’s advisory services in connection with Client’s participation in the TSA Program are limited to selecting and monitoring the Overlay Manager and Model Portfolio Providers and in acting as Model Portfolio Provider. NBCS’ advisory services in connection with Client’s participation in the TSA Program are limited to assisting Client in identifying an appropriate investment strategy designed to reflect Client’s investment needs and objectives, as set forth in the Investment Guidelines, and in recommending mutual funds, ETPs and or Model Portfolios to be used in implementing the Client investment strategy. Client’s investment strategy will include a written investment allocation (“Allocation”) — that is, an assignment of a percentage of the overall value of the Account to mutual funds, ETPs and or Model Portfolios. Client may subsequently modify the Allocation by notifying the NBCS FA of the changes. Any such changes will be effective only upon confirmation by RBC and the Overlay Manager. The Overlay Manager provides investment advisory services to Client pursuant to the investment advisory agreement between the Overlay Manager and RBC (“Overlay Manager Agreement”), the TSA Client Agreement and, if applicable, the Tax Overlay Management Services Enrollment Form and in accordance with Client’s Investment Guidelines. If Client’s Account is invested only in mutual funds or ETPs and is not invested in a strategy provided by a Model Portfolio Provider, Client has sole discretion to accept or reject an investment strategy or any specific recommendation to purchase or redeem mutual fund or ETP shares; the Overlay Manager has limited discretionary authority with respect to the Account and will execute only transactions directed by Client, in accordance with the rebalancing frequency elected by Client and to manage cash flows. If Client’s Account has an investment strategy utilizing Model Portfolio(s), the Overlay Manager will effect the securities transactions required to conform to revisions to Model Portfolio as soon as practicable after they are received from the Model Portfolio Provider, in accordance with any Client-specific mandates such as security restrictions or tax overlay management services. Client understands and acknowledges that delays may occur between the communication of Model Portfolio Provider’s revisions to the Model Portfolio and the execution of securities transactions for the Account. Client may choose between two rebalancing frequencies (quarterly or annually). The Overlay Manager will rebalance the Account at the time period selected by Client in the Client Agreement if the allocation to any investment at the time of rebalancing deviates from the Allocation by five percent (5%) or more. Client authorizes and directs the Overlay Manager to effect the trades necessary to rebalance the Account until all investments are within two percent (2%) of the Allocation. Alternatively, Client may elect not to have the Account rebalanced systematically, rather the Account will only be rebalanced upon Client request. Tax overlay management services are available as an option for Accounts utilizing model portfolios. If tax overlay management services are elected, the portion of the fee paid by Client as the management fee on the Account will increase. The Overlay Manager will develop a tax strategy for the Account based on the information and instructions provided by Client in the Tax Overlay Management Services Enrollment Form. Tax overlay management services in an investment account offer benefits and limitations, as described further in the TSA Program Agreement. The tax strategy developed for the Client by the Overlay Manager is provided solely in connection with Client’s Account and the Overlay Manager does not provide general tax planning services For more information about the operation of the TSA Program, please see the RBC Total Strategy Account Program Agreement, Terms and Conditions and Disclosure Document, Form ADV, Part 2A. RBC Advisor The RBC Advisor Program is a fee-based IA Program sponsored by RBC and made available to NBCS as an introducing-broker to RBC. RBC Advisor is a customized investment advisory program through which a client may receive non-discretionary advice from an NBCS FA to invest in eligible securities in various asset classes. This may be accomplished through no-load mutual funds, load-waived mutual funds, equities and fixed income securities and

other eligible securities. In the RBC Advisor Program, an NBCS FA will provide a Client with Advisory Services in an investment account (“Advisor Account”) based on the Client's Investment Guidelines as provided in the Client Profile. Under the RBC Advisor Program, Client has sole discretion whether to use margin, accept or reject an investment strategy or any specific recommendation to purchase, sell or redeem securities. NBCS’s responsibility in connection with Client’s participation in the RBC Advisor Program is to consult with Client, based on the Investment Guidelines, as to which investment strategy would be compatible with Client’s investment objectives and needs and as to which investments would be compatible with the strategy selected by Client. NBCS and RBC have no discretionary authority concerning the Advisor Account and will execute only transactions directed by the Client. Client understands that the Advisor Account is not for day trading or other frequent trading activity, including frequent option trading, and NBCS or RBC may, without limiting any other rights or remedies, restrict or terminate the Advisor Account if it determines that Client is engaging in such activity. In addition, NBCS or RBC may restrict or terminate the account if the Client purchases for or transfers into the account ineligible securities without the prior consent of RBC. The client is solely responsible for the use of trading privileges in the Advisor Account. Losses resulting from Client- initiated or Client-directed transactions, including, without limitation, losses resulting from the frequency of trading, are solely the Client’s responsibility. In an Advisor Account, the Client pays an asset-based fee for both Advisory Services and transaction processing. NBCS and RBC reserve the right, in its sole discretion, to adjust the annual Program fee for changes in security type, trading activity, or Account size at any time without notice. For more information about the operation of the RBC Advisor Program, please see the RBC Advisor Program Agreement, Terms and Conditions, and Disclosure Document Form ADV, Part 2A. RBC Unified Portfolio RBC Unified Portfolio is a unified managed account “UMA” program through which your account is professionally managed by RBC CM as Overlay Manager or a third-party Overlay Manager, Envestnet. The Overlay Manager manages the account through investments in mutual funds, ETPs, and/or following one or more model portfolios provided by Model Providers or RBC CM, all in a single account. Your Financial Advisor may provide you with information on mutual funds, ETPs, and/or model portfolios representing different investment styles and strategies that may be compatible with your Risk Profile. The management of your account may include tax overlay management services and/or personal conviction overlay screens. If you elect either or both additional services, your account will be managed by Envestnet, otherwise, RBC CM will act as Overlay Manager. Recommendation of Investment Strategy - Based on our understanding of your Risk Profile (and any additional written Investment Guidelines established by you), your Financial Advisor will recommend an appropriate investment strategy for you. If the strategy includes an asset allocation, it will also include an investment allocation—that is, an assignment of a percentage of the overall value of the asset class to one or more mutual funds, ETPs, or model portfolios. You select from the eligible investments and specify the investments in which account assets are to be invested and the allocation among those investments. Your investment allocation may subsequently be modified by you by notifying Correspondent Firm, which will in turn notify RBC CM, of the changes. Any such changes will be effective only upon confirmation by RBC CM and the Overlay Manager. However, if your investment allocation includes a mutual fund share class RBC CM deems to be ineligible for the Program, RBC CM may update the allocation to include the equivalent, eligible share class of the same mutual fund without notification to you. The Overlay Manager will affect the securities transactions required to conform to revisions in the model portfolios as soon as practicable after they are received, subject to any written client-specific Investment Guidelines such as security restrictions, personal conviction overlay screens or tax overlay management services; however, delays may occur between the communication of model revisions and the execution of securities transactions for the account. The Overlay Manager intends to manage an account so that the estimated investment performance does not substantially deviate from the model portfolio(s), provided client-specific Investment Guidelines make it practicable to do so. Rebalancing of Assets You may choose between two rebalancing frequencies (quarterly or annually) to bring an account back to its targeted investment allocation. The Overlay Manager will rebalance the account either quarterly or annually, as selected, affecting the trades necessary to rebalance the account as closely as practicable to your target investment allocation. The initial rebalance date will be based on the account start date. Your account may be rebalanced at any time deemed appropriate by the Overlay Manager due to other factors that include but are not limited to, contributions, withdrawals, model portfolio changes, etc. Any unscheduled rebalance of your account will reset the next rebalance date to the next quarter or a year, as applicable. If you have elected to receive tax overlay management services (described below), Envestnet will evaluate the trade-off between rebalancing the account and the tax consequences of any client constraints or tax mandates. If your account is not tax-exempt, the sale, redemption, or exchange of investments may result in taxable gains or losses. RBC CM will not be liable for any tax consequences or mutual fund redemption fees (see the fund’s prospectus) because of rebalancing. Alternatively, you may elect not to have the account rebalanced, in which case the account will only be rebalanced upon your request. In addition, if the Overlay Manager deems a rebalance is necessary to implement the allocation and investments selected, they may rebalance your account at its discretion. In general, any contributions and withdrawals of assets to or from your account will be applied to the target investment allocation. Tax Overlay Management Services Tax overlay management services are available as an option for accounts utilizing model portfolios. These services are provided by Envestnet for an additional fee (“Tax Management Fee”). Envestnet will develop a tax strategy for your account based on the information and instructions provided by you in the Tax Overlay Management Services Enrollment Form. Tax overlay management services in an investment account offer benefits and limitations, as described below. The tax strategy developed for you by Envestnet is provided solely in connection with your account and Envestnet does not provide general tax planning services. If you do elect the tax overlay management services option, please consider the following:
• Tax overlay management services are limited in scope and are not designed to eliminate taxes in the account.
• If you select tax overlay management services for the account, the information provided may result in Envestnet making substantial deviations from the investment allocation on a more than temporary basis.
• Envestnet intends to manage the account so that the estimated investment performance does not substantially deviate from the model portfolio(s), provided client-specific mandates make it practicable to do so.
• When providing tax overlay management services to the account, short-term gains are avoided where possible, but long-term gains are not limited. Limits can be set by you in the Tax Overlay Management Services Enrollment Form.
• If you subsequently disable tax overlay management after enrolling in the tax overlay management service, Envestnet will begin managing the account as if it is not tax managed which may result in the recognition of significant gains.
• You should only complete the Tax Overlay Management Services Enrollment Form after consulting with a tax advisor. Any tax loss carryover specified for the current calendar year may be taken into consideration by Envestnet in managing the account. You should update this information annually. On an ongoing basis, any losses taken into the account may be taken into consideration in managing the account. If you recognize gains outside the account that result in the use of the specified losses, you must notify Correspondent Firm, which will in turn notify RBC CM, and RBC CM will in turn notify Envestnet, so that the loss carryover amount may be reduced accordingly. Mandates or the use of limits to restrict the amount of gains realized or your total tax bill may severely restrict trading in the account and could result in substantial deviations from the investment allocation. Mandates and limits should only be imposed on the account after you have consulted with your tax advisor. Amounts specified will be used annually until you specify otherwise. For more information on Tax Overlay Management Services, please refer to Envestnet’s ADV. Personal Conviction Overlay Screens Clients may restrict their accounts from investing in certain securities or industries. These services are provided by Envestnet for an additional fee (“Personal Conviction Overlay Screen Fee”). Envestnet relies on third-party providers for data of the industry classification and socially responsible classifications of individual securities, and Envestnet and RBC CM make no guarantee as to the accuracy of such third parties’ classification. Changes may occur that affect the industry classification of a firm and Envestnet will make reasonable efforts to implement those changes in a timely manner. In general, Envestnet may implement restrictions by taking one or more of the following actions: increasing the relative proportions of other securities to replace the restricted securities; increasing cash in the account; and selecting alternate securities. Many of the personal conviction overlay screens have both a Best in Class and Strict restriction. Best in Class restrictions are designed for investors aiming to achieve alignment between their values and their need to ensure the prudent management of their investments while Strict restrictions are designed for investors who want to integrate more stringent environmental/social criteria into their investments by further evaluating sources of revenue and employing tighter revenue thresholds. They seek to minimize exposure to companies with specific products, services, and operations that do not meet the personal convictions criteria set by the client. Financial Planning NBCS may provide financial planning services (“FP Services”) to customers for a fee. NBCS FAs may provide a client with one or more of the following FP Services: (i) assistance in the development of an investment plan; (ii) wealth accumulation strategies; (iii) wealth protection strategies; (iv) converting wealth to income (i.e. retirement income planning); (v) wealth transfer (i.e. charitable planning, gifting strategies, business succession etc.); (vi) advanced planning strategies as requested by the client. FP Services are available to individual and corporate clients. Where provided to a corporate client, the FP Services are provided at the individual level to employees of the corporate client. An NBCS FA will work closely with the Client to analyze and define the Client's financial objectives and needs. Using applicable documents provided by the Client which may include tax returns, financial statements, wills, trust documents, estimated social security statements, insurance summaries, account statements and other relevant documents, the NBCS FA will typically prepare a written executive summary and financial plan (“FP Services Plan”) which addresses the Client's financial objectives and needs. For the FP Services the Client will pay a fee (“FP Services Fee”) that is a negotiated flat fee or a percentage of assets under management or a combination of both. The amount of any negotiated FP Services Fee is based upon the nature and complexity of the Client's situation, needs, and other relevant factors, such as the level of services provided by the NBCS FA, and are discussed and agreed upon before performing the FP Services. Depending upon the total assets involved, strategies required, and complexity of the overall plan structure, the FP Services Fee may typically range from a minimum of $100 to a maximum of $10,000. Some clients may pay a higher or lower FP Services Fee. Advisory fees are not charged for insurance analysis. In all cases, the FP Services Fee is negotiated and agreed upon with the Client before the delivery of any financial plan. The FP Services Fee expressly does not cover any fees due to any trustee, custodian, investment manager, or sponsor concerning any account, any brokerage commissions concerning transactions, or any other fees, costs, or expenses for the implementation of the FP Services Plan. The Client may choose to implement all or a portion of the FP Services Plan with NBCS but is not obligated to do so. Should the Client choose to implement any or all any investment strategies recommended as part of the FP Services with NBCS, one or more Accounts would need to be established and would be subject to separate fees or commissions associated with that specific investment program as disclosed within the Client agreement. Other Considerations for IA Program Accounts Cash Balances: In the first quarter of 2017, the RBC Bank Deposit Program cash sweep option was renamed RBC Insured Deposits. Both names may be used to refer to this cash sweep option. For most accounts, RBC Insured Deposit is the only cash sweep option available to a customer of NBCS. Cash custodied at RBC will be automatically invested or deposited the next business day (as applicable). This automatic process is referred to as a “Cash Sweep Option.” The client should review the RBC Customer Agreement for details regarding RBCs’ automatic cash investment process and the Credit Interest Program. The Credit Interest Program and the RBC Insured Deposits (formerly, RBC Bank Deposit Program) are described in more detail in the RBC Disclosure Document. NBC Securities is paid by RBC a portion of the spread between interest earned by RBC in the Insured Deposit Program and the rate paid to the account holder. This interest-sharing compensation creates a conflict of interest for NBC Securities to recommend you maintain cash balances as we make more money when you do. Margin Certain Program accounts may be eligible for margin or other types of securities-based lending as part of RBC CM’s brokerage services. The extension of credit may be obtained through an affiliated or unaffiliated loan program, such as RBC Express Credit (margin) and RBC Premier Line of Credit (pledge) (collectively referred to as “Lending Programs”). Before enrollment in such Lending Programs, you should carefully review that Lending Program’s disclosure document and understand the risks associated with leveraging your Account. You must carefully consider:
• whether or not you can afford, and want, to assume the additional risks that losses in your account may be significantly greater than if you decide not to invest with borrowed funds (i.e., not to use leverage). You may lose more than your original investment.  you will pay RBC CM and NBCS interest on the outstanding loan balance; thus, the use of leverage will increase your costs of investing.
• leveraging your account may increase your risks and make your investment objectives more difficult to realize, depending upon the return achieved through the use of margin.
• since the advice fee is calculated as a percentage of assets under management, the use of margin to purchase securities in a Program account generally will increase the amount (but not the percentage of) the fee that you pay. This will result in additional compensation to RBC CM and/or NBCS.
• RBC CM or, a third-party lender in the case of a pledged account, can force the sale of Program assets to satisfy margin and pledge requirements without notice to you.
• neither RBC CM nor NBCS will act as an investment advisor to you for the liquidations of securities held in the Program account to meet collateral requirements.
• these liquidations will be executed in our capacity as broker-dealer and creditor and may, as permitted by law, result in executions on a principal basis in your Account;
• under these circumstances, NBCS cannot guarantee a favorable price on the sale of Program assets or that the liquidations align with your investment strategy; and
• the costs associated with Lending Programs are not included in the Program Fee and will result in additional compensation to RBC CM and NBCS. Risks You are advised and should understand that:
• certain securities in your account may be a complex product. Complex products may be used by investment managers, model portfolio providers, NBCS Financial Advisors or selected by you and may present additional risk due to the intricacy of these products and the possibility that the product will not perform as anticipated. For further information on complex products, please consult your Financial Advisor.
• past performance of selected investments is no guarantee of future results.
• market conditions, interest rates, and other investment-related risks may cause losses in your account.
• the risk parameters or comparative index selections provided for an account are guidelines only — the selected risk parameters may be exceeded, and index comparisons may outperform an account.
• benchmarks are selected by your Financial Advisor or the investment manager, if applicable, and are intended to be an accurate comparison of the performance of your account. However, your account performance may not correspond directly to the selected benchmark, which may be more or less volatile than your actual portfolio.
• all trading in your account is at your risk.
• certain securities and mutual fund share classes may be deemed ineligible for the Programs. If you have a systematic buy or sell transaction established for a security or mutual fund share class deemed ineligible for the program selected, the transaction may be rejected resulting in your trade(s) not being fulfilled; and
• the value of the assets in your account is subject to a variety of factors, such as the liquidity and volatility of the securities markets.