Common use of SIPC Coverage Clause in Contracts

SIPC Coverage. LEX and Apex are members of SIPC. Securi- ties accounts held at Apex, including your ac- count, are protected in accordance with SIPC, which currently protects the securities and cash balances in your Account up to $500,000, includ- ing $250,000 for claims for cash, subject to peri- odic adjustments for inflation, in accordance with the Securities and Investor Protection Act of 1970 (“SIPA”). In the event of a SIPC liquidation, your total claim (known as your “net equity” position) would equal the total of securities and cash posi- tions in your Account, less any indebtedness owed on the Account (for example, margin loans). Net equity positions are paid in a SIPC distribu- tion out of all customer securities and cash (known as “customer property”) recovered by the liquidating trustee, on a pro rata basis to all cus- tomers. Any net equity claims not paid through such distributions of customer property are pro- tected by the above dollar limits of SIPC coverage. Cash balances are included in a net equity claim only if they are on deposit in your account for the purpose of purchasing securities, or arise out of sales or conversions of securities. Cash de- posits that are not intended to be used to pur- chase securities, or that do not originate from se- curities in any of the circumstances described in the previous sentence, are ineligible for protec- tion as net equity claims. Nor do SIPC protections extend to any assets that are not considered secu- rities under the SIPA statute, including commod- ities and related contracts (including commodi- ties future and options), foreign currency, and unregistered investment contracts and joint ven- ture interests. You may obtain further information about SIPC protection, including the SIPC brochure, at SIPC’s website at ▇▇▇.▇▇▇▇.▇▇▇ or by calling SIPC at 202-371-8300. SIPC protection and coverage does not protect against fluctuations in the mar- ket value of your investments and any losses re- sulting therefrom or other claims against a bro- ker-dealer while it is still in business.