Common use of Optional Dividends Clause in Contracts

Optional Dividends. At times certain issuers that pay dividends may offer shareholders an opportunity to elect to receive stock or cash, or a combination of both. This is known as an “Optional Dividend.” The issuer will assign a default if no instruction is received. For example, the default option could be cash, stock, or a combination of both. You have the opportunity up until the applicable deadline to make an election to receive the payment of their choice. Please be advised, if you do not make an election prior to the deadline, your account will be assigned a default election based on the dividend reinvestment program instructions you established with respect to your account. This default election will be utilized in lieu of the issuer’s default option being applied to your account. At our option, we may buy reinvestment shares through a program offered by the Depository Trust Company (“DTC”) that offers a share price discount of up to 5%. To find out which securities are currently available through the DTC, contact us. Note that the availability through this program of any given security may change without notice. Also note that DTC program transactions take longer to process: Although the transactions are effective as of the dividend payable date, they are generally not posted to your account until 10 to 15 days later. If you sell your dividend-generating shares before the posting date, the dividend will not be reinvested. To remove securities from the dividend reinvestment service, notify us in writing or during business hours. We must receive your notification by 9:00 p.m. Eastern Time one business day before the record date (or, if the record date is not a business day, then two business days before the record date). Note that dividend reinvestment does not assure a profit on your investments and does not protect against loss in declining markets. Precious metals are not covered by SIPC account protection, but are insured by the depository at market value if stored through NFS. When trading precious metals, note that because they can experience sudden and rapid price changes, they are risky as investments, and you cannot be guaranteed an advantageous price when you trade them. If you take delivery of precious metals, delivery charges and sales and use taxes will apply. Precious metals are not marginable.

Optional Dividends. At times certain issuers that pay dividends may offer shareholders an opportunity to elect to receive stock or cash, or a combination of both. This is known as an “Optional Dividend.” The issuer will assign a default if no instruction is received. For example, the default option could be cash, stock, or a combination of both. You have the opportunity up until the applicable deadline to make an election to receive the payment of their choice. Please be advised, if you do not make an election prior to the deadline, your account will be assigned a default election based on the dividend reinvestment program instructions you established with respect to your account. This default election will be utilized in lieu of the issuer’s default option being applied to your account. At our option, we may buy reinvestment shares through a program offered by the Depository Trust Company (“DTC”) that offers a share price discount of up to 5%. To find out which securities are currently available through the DTC, contact us. Note that the availability through this program of any given security may change without notice. Also note that DTC program transactions may take longer to process: . Although the transactions are effective as of the dividend payable date, they are generally not posted to your account Account until 10 to 15 days later. If you sell your dividend-generating shares before the posting date, the dividend will not be reinvested. To remove securities from the dividend reinvestment servicereinvestment, notify us in writing or during business hours. We must receive your notification by 9:00 p.m. Eastern Time one business day before the record date (date, or, if the record date is not a business day, then two business days before the record date). Note that dividend reinvestment does not assure a profit on your investments and does not protect against loss in declining markets. Precious metals are not covered by SIPC account protection, but are insured by the depository at market value if stored through NFS. When trading Note that precious metalsmetals are risky investments, note that because they and can experience sudden and rapid price changes, they are risky as investments, and you . Their price cannot be guaranteed an advantageous price when you trade themguaranteed. If you take delivery of precious metals, delivery charges and sales and use taxes will apply. Precious metals are not marginable.