COMBINED CUSTOMER ACCOUNT AGREEMENT AUTHORIZATION TO EARN INTEREST ON FUNDS
AWAITING INVESTMENT This is to confirm my intention to reinvest cash credit
balances held by you in my name, and I further confirm that this cash credit
balance is being maintained with you solely for the purpose of reinvestment.
I understand that cash balances of up to $100,000 are protected by the
Securities Investor Protection Corporation (SIPC), but that SIPC coverage is
not available for funds maintained solely for the purpose of earning
interest. BY SIGNING BELOW, THE UNDERSIGNED AGREES TO ALL TERMS OF
THE COMBINED CUSTOMER AGREEMENT PRINTED ON THIS DOCUMENT. THE UNDERSIGNED
ACKNOWLEDGES RECEIPT OF A COPY OF THIS AGREEMENT, THE INFORMATION BROCHURE
PREPARED BY PENSON FINANCIAL SERVICES, INC., ADBICO TRADING'S PRIVACY POLICY
AND PENSON'S PRIVACY POLICY. THE UNDERSIGNED CERTIFIES THAT THE UNDERSIGNED
HAS READ AND UNDERSTANDS ALL PROVISIONS OF THIS AGREEMENT. THIS
AGREEMENT BENEFITS PENSON FINANCIAL SERVICES, INC., INTRODUCING BROKERS
FOR WHICH IT CLEARS AND PERSONS RELATED TO EACH OF THE
FOREGOING. PARAGRAPH 8 ON THIS DOCUMENT CONTAINS A PRE-DISPUTE
ARBITRATION CLAUSE. Important information about procedures for opening a
new account: To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial institutions to
obtain, verify, and record information that identifies each person who opens
an account. What this means to you: when you open an account, we will ask for
your name, address, date of birth, and other information that will allow us
to identify you. We may also ask to see your driver's license or other
identifying documents. BY SIGNING BELOW, THE UNDERSIGNED AGREES TO ALL TERMS
OF THE MARGIN AND SHORT ACCOUNT AGREEMENT PRINTED ON THE FOLLOWING PAGES
OF THIS DOCUMENT. PARAGRAPH 8 CONTAINS A PRE-DISPUTE ARBITRATION
CLAUSE. The undersigned acknowledges that the undersigned's margin account
securities may be borrowed by you or loaned to others. The undersigned also
acknowledges receipt of a copy of this Agreement and a copy of the Margin
Risk Disclosure Statement. 1. Applicable Rules and Regulations. All
transactions shall be subject to the constitution, rules, regulations,
customs and usages of the exchange or market and its clearing house, if any,
upon which such transactions are executed, except as otherwise specifically
provided in this Agreement. 2. Definitions. "Introducing broker" means any
brokerage firm which introduces securities transactions on behalf of the
undersigned, which transactions are cleared through you, whether one or more.
"Obligations" means all indebtedness, debit balances, liabilities or
other obligations of any kind of the undersigned to you, whether now existing
or hereafter arising. "Securities and other property" shall include, but
shall not be limited to, money, securities, commodities or other property of
every kind and nature and all contracts and options relating thereto, whether
for present or future delivery. "You" or "your" refers to Penson
Financial Services, Inc. Page 4/14 3. Breach; Security Interest.
Whenever in your discretion you consider it necessary for your protection, or
for the protection of the undersigned's introducing firm or in the event of,
but not limited to; (i) any breach by the undersigned of this or any other
agreement with you or (ii) the undersigned's failure to pay for securities
and other property purchased or to deliver securities and other property
sold, you may sell any or all securities and other property held in any of
the undersigned's accounts (either individually or jointly with others), cancel
or complete any open orders for the purchase or sale of any securities and
other property, and/or borrow or buy-in any securities and other property
required to make delivery against any sale, including a short sale, effected
for the undersigned, all without demand for deposit of collateral, other
notice of sale or purchase, or other notice or advertisement, each of which is
expressly waived by the undersigned, and/or you may require the undersigned
to deposit cash or adequate collateral to the undersigned's account prior to
any settlement date in order to assure the performance or payment of any open
contractual commitments and/or unsettled transactions. Any and all securities
and other property belonging to the undersigned or in which the
undersigned may have an interest held by you or carried in any of the
undersigned's accounts with you (either individually or jointly with others)
shall be subject to a first and prior security interest and lien for the
discharge of the undersigned's obligations to you, wherever or however arising
and without regard to whether or not you have made advances with respect to
such securities and other property, and you are hereby authorized to sell
and/or purchase any and all securities and other property in any of the
undersigned's accounts, and/or to transfer any such securities and
other property among any of the undersigned's accounts to the fullest extent
of the law and without notice where allowed. The costs and expenses of
collection of the debit balance and any unpaid deficiency in the accounts of
the undersigned with you, including but not limited to reasonable attorneys'
fees and expenses, incurred and payable or paid by you shall be payable to you
by the undersigned. 4. Cancellation. You are authorized, in your
discretion, should you for any reason whatsoever deem it necessary for your
protection, without notice, to cancel any outstanding order, to close out the
accounts of the undersigned, in whole or in part, or to close out any commitment
made on template: behalf of the undersigned. 5. Payment of Indebtedness
Upon Demand. The undersigned shall at all times be liable for the payment
upon demand of any obligations owing from the undersigned to you, and
the undersigned shall be liable to you for any deficiency remaining in any
such accounts in the event of the liquidation thereof (as contemplated in
Paragraph 3 of this Agreement or otherwise), in whole or in part, by you or
by the undersigned; and the undersigned shall make payment of
such obligations upon demand. If Customer also holds a futures account with
Penson Financial Futures, Inc. ("PFFI"), Customer hereby authorizes Penson,
without prior notice, to transfer from any account held with Penson to any
account held with PFFI, any assets that PFFI represents to Penson are
reasonably required to avoid the calling of margins for such PFFI account or
the payment of any obligations owed Penson by Customer. Customer also
authorizes Penson to request from PFFI assets held by PFFI that in Penson's
judgment may be reasonably required to avoid the calling of margins for
a Penson account or the payment of any obligations owed Penson by
Customer. 6. Accounts Carried as Clearing Broker. The undersigned understands
that you are carrying the accounts of the undersigned as clearing broker by
arrangement with the undersigned's introducing broker through whose courtesy
the account of the undersigned has been introduced to you. Until receipt from
the undersigned of written notice to the contrary, you may accept from and rely
upon the undersigned's introducing broker for (a) orders for the purchase or
sale in said account of securities and other property, and (b) any other
instructions concerning the undersigned's accounts. The undersigned
represents that the undersigned understands that you act only to clear trades
introduced by the undersigned's introducing broker and to effect other back
office functions for the undersigned's introducing broker. The undersigned
confirms to you that the undersigned is relying for any advice
concerning the undersigned's accounts solely on the undersigned's introducing
broker. The undersigned understands that all representatives, employees and
other agents with whom the undersigned communicates concerning
the undersigned's account are agents of the introducing broker, and not your
representatives, employees or other agents. The undersigned understands that
you are not a principal of or partner with, and do not control in any way,
the introducing broker or its representatives, employees or other agents. The
undersigned understands that you will not review the undersigned's
accounts and will have no responsibility for trades made in the undersigned's
accounts. You shall not be responsible or liable for any acts or omissions of
the introducing broker or its representatives, employees or other agents.
Notwithstanding the foregoing, in the event that the undersigned initiates a
claim against you in your capacity as clearing broker and does not prevail,
the undersigned shall be responsible for the costs and expenses associated
with your defense of such claim. 6A. Accounts Carried as Custodian. In
some cases the undersigned's account is being carried by arrangement with the
undersigned's Investment Advisor or Investment Manager, who uses Penson as
their Broker-Dealer custodian. The undersigned acknowledges that Penson's role
as custodian is to hold or custody account assets, distribute or collect
funds on behalf of the undersigned's account, execute and clear trades under
instruction of the undersigned's Investment Advisor or Investment Manager,
generate account statements and provide other custodial services as may be
mandated by various regulatory standards and requirements. The
undersigned understands that in the capacity as custodian, you will not offer
investment advice, review the undersigned's accounts, and will have no
responsibility for trades made in the
undersigned's accounts. Additionally, in your capacity as custodian, you
will not verify the accuracy of management fees that the undersigned's pays
to Investment Advisors or Investment Managers pursuant to the terms of the
Investment Management Agreement executed between the undersigned and the
Investment Advisor or Investment Manager. Notwithstanding the foregoing, in
the event that the undersigned initiates a claim against you in your capacity
as custodial broker and does not prevail, the undersigned shall be
responsible for the costs and expenses associated with your defense of
such claim. 7. Communications. You may send communications to the
undersigned at the undersigned's address or at such other address as the
undersigned may hereafter give you in writing, and all communications so
sent, whether by mail, telegraph, or otherwise, shall be deemed given to
the undersigned personally, whether actually received or not. Reports of
execution of orders and statements of accounts of the undersigned shall be
conclusive if not objected to in writing to you, the former within five (5)
days and the latter within ten (10) days, after forwarding by you. THE
FOLLOWING ARBITRATION AGREEMENT SHOULD BE READ IN CONJUNCTION WITH THESE
DISCLOSURES: a. ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO
SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY EXCEPT AS
PROVIDED BY THE RULES OF THE ARBITRATION FORM IN WHICH A CLAIM IS
FILED; b. ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A
PARTY'S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS
VERY LIMITED. c. THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS,
WITNESS STATEMENTS AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN
ARBITRATION THAN IN COURT PROCEEDINGS; d. THE ARBITRATORS DO NOT HAVE TO
EXPLAIN THE REASON(S) FOR THEIR AWARD. THE PANEL OF
ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE
AFFILIATED WITH THE SECURITIES INDUSTRY. f. THE RULES OF SOME ARBITRATION
FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME
CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN
COURT. g. THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS
FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO
THIS AGREEMENT. 8. ARBITRATION AGREEMENT. ANY AND ALL CONTROVERSIES,
DISPUTES OR CLAIMS BETWEEN THE UNDERSIGNED AND YOU, OR THE INTRODUCING
BROKER, OR THE AGENTS, REPRESENTATIVES, EMPLOYEES, DIRECTORS, OFFICERS OR
CONTROL PERSONS OF YOU OR THE INTRODUCING BROKER, ARISING OUT OF, IN
CONNECTION WITH, FROM OR WITH RESPECT TO (a) ANY PROVISIONS OF OR
THE VALIDITY OF THIS AGREEMENT OR ANY RELATED AGREEMENTS, (b)
THE RELATIONSHIP OF THE PARTIES HERETO, OR (c) ANY CONTROVERSY ARISING OUT
OF YOUR BUSINESS, THE INTRODUCING BROKER'S BUSINESS OR THE UNDERSIGNED'S
ACCOUNTS, SHALL BE CONDUCTED PURSUANT TO THE CODE OF ARBITRATION PROCEDURE OF
THE NASD. ARBITRATION MUST BE COMMENCED BY SERVICE OF A WRITTEN DEMAND FOR
ARBITRATION OR A WRITTEN NOTICE OF INTENTION TO ARBITRATE. THE DECISION AND
AWARD OF THE ARBITRATOR(S) SHALL BE CONCLUSIVE AND BINDING UPON ALL
PARTIES, AND ANY JUDGMENT UPON ANY AWARD RENDERED MAY BE ENTERED IN A
COURT HAVING JURISDICTION THEREOF, AND NEITHER PARTY SHALL OPPOSE SUCH
ENTRY. No person shall bring a putative or certified class action to
arbitration, nor seek to enforce any pre-dispute arbitration agreement
against any person who has initiated in court a putative class action; or who
is a member of a putative class who has not opted out of the class with
respect to any claims encompassed by the putative class action until: (i) the
class certification is denied; or (ii) the class is de-certified; or (iii)
the customer is excluded from the class by the court. Such forbearance to
enforce an agreement to arbitrate shall not constitute a waiver of any rights
under this agreement except to the extent stated herein. 9. Representations.
The undersigned represents that the undersigned is of majority age, that
the undersigned is not an employee of any exchange, or of any corporation
of which any exchange owns a majority of the capital stock, or of a member of
any exchange, or of a member firm or member corporation registered on any
exchange or of a bank, trust company, insurance company or of any
corporation, firm or individual engaged in the business dealing either as
broker or as principal in securities, bills of exchange, acceptances or other
forms of commercial paper. If the undersigned is a corporation, partnership,
trust or other entity, the undersigned represents that its governing
instruments permit this Agreement, that this Agreement has been authorized by
all applicable persons and that the undersigned signatory is authorized
to bind the undersigned. The undersigned represents that the undersigned
shall comply with all applicable laws, rules and regulations in connection
with the undersigned's account. The undersigned further represents that no
one except the undersigned has an interest in the account or accounts of the
undersigned with you. 10. Joint Accounts. If the undersigned shall consist of
more than one person, the undersigned's obligations under this Agreement
shall be joint and several. References to the "undersigned" shall include
each of the undersigned. You may rely on transfer or other instructions from any
one of the undersigned in a joint account, and such instructions shall be
binding on each of the Page 7/14 undersigned. You may deliver securities
or other property to, and send confirmations; notices, statements and
communications of every kind, to any one of the undersigned, and such
action shall be binding on each of the undersigned. Notwithstanding the
foregoing, you are authorized in your discretion to require joint action
by the joint tenants with respect to any matter concerning the joint
account, including but not limited to the giving or cancellation of orders
and the withdrawal of money, securities, futures or commodities. 11. Other
Agreements. If the undersigned trades any options, the undersigned agrees to
be bound by the terms of your Customer Option Agreement. The undersigned
understands that copies of these agreements are available from you and, to
the extent applicable, are incorporated by reference herein. The terms of
these other agreements are in addition to the provisions of this Agreement
and any other written agreements between you and the undersigned. 12. Data
Not Guaranteed. The undersigned expressly agrees that any data or online reports
is provided to the undersigned without warranties of any kind, express or
implied, including but not limited to, the implied warranties of
merchantability, fitness of a particular purpose or noninfringement. The
undersigned acknowledges that the information contained in any
reports provided by you is obtained from sources believed to be reliable but
is not guaranteed as to its accuracy of completeness. Such information could
include technical or other inaccuracies, errors or omissions. In no event
shall you or any of your affiliates be liable to the undersigned or any third
party for the accuracy, timeliness, or completeness of any information made
available to the undersigned or for any decision made or taken by the
undersigned in reliance upon such information. In no event shall you or your
affiliated entities be liable for any special incidental, indirect or
consequential damages whatsoever, including, without limitation, those resulting
from loss of use, data or profits, whether or not advised of the possibility
of damages, and on any theory of liability, arising out of or in connection
with the use of any reports provided by you or with the delay or inability to
use such reports. 13. Order Flow Disclosure. Depending on the security traded
and absent specific direction from the undersigned, stock orders are routed
via an electronic system to a listed, NASDAQ or over the counter broker or
dealer. You or your correspondents may receive cash payments for routing
such orders to specific brokers or dealers. Because these agents are market
makers, they carry inventory in their specific securities, allowing for price
improvement to the undersigned by trading through their
inventories. Accordingly, the undersigned's orders will always be executed at
the "best bid" or "best offer", or at a price superior to either, by virtue
of the market maker's inventory positioning capabilities. 14, Credit Check
You are authorized, in your discretion, should you for any reason deem
it necessary for your protection to request and obtain a consumer credit
report for the undersigned. 15. Miscellaneous. If any provision of this
Agreement is held to be unenforceable, it shall not affect any other
provision of this Agreement. The headings of each section of this Agreement
are descriptive only and do not modify or qualify any provision of this
Agreement. This Agreement and its enforcement shall be governed by the laws
of the state of Texas and shall cover individually and collectively all
accounts which the undersigned has previously opened, now has open or may
open or reopen with you, or any introducing broker, and any and all
previous, current and future transactions in such accounts. Except as
provided in this Agreement, no provision of this Agreement may be altered,
modified or amended unless in writing signed by your authorized
representative. This Agreement and all provisions shall inure to the benefit
of you and your successors, whether by merger, consolidation or otherwise,
your assigns, the undersigned's introducing broker, and all other persons
specified in Paragraph 8. You shall not be liable for losses caused directly
or indirectly by any events beyond your reasonable control, including without
limitation, government restrictions, exchange or market rulings, suspension
of trading or unusually heavy trading in securities, a general change in
economic, political or financial conditions, war or strikes. You
may transfer the accounts of the undersigned to your successors and assigns.
This Agreement shall be binding upon the heirs, executors, administrators,
successors and assigns of the undersigned. Additionally, for margin and/or
short accounts, the following provisions are also applicable: 16.
Liquidation. In the event of the death of the undersigned, or in the event the
margin in any account in which the undersigned has an interest shall in
either your or the introducing broker's discretion become unsatisfactory to
either you or the introducing broker, or be deemed insufficient by either you
or the introducing broker, you are hereby authorized; (a) to sell any or all
securities or other property which you may hold for the undersigned (either
individually or jointly with others); (b) to buy any or all securities and
other property which may be short in such accounts; and/or (c) to cancel any
open orders and to close any or all outstanding contracts; all without demand
for margin or additional margin, notice of sale or purchase, or other notice
or advertisement, and that any prior demand or notice shall not be a waiver
of your rights provided herein. You may likewise accept and rely upon
instructions which you receive from the introducing broker to effect any of
the aforementioned transactions (as noted in (a); (b); and (c). You shall
have the discretion to determine which securities and other property are
to be sold and which contracts are to be closed. Any such sales or purchases
may be made at your discretion on any exchange, the over-the-counter market
or any other market where such business is usually transacted, or at public
auction or private sale, and you may be the purchaser for your own
account. 17. Hypothecation. Within the limitations imposed by applicable
laws, rules and regulations, all securities now or hereafter held by you, or
carried by you in any account for the undersigned (either individually or
jointly with others), or deposited to secure same, may from time to time,
without any notice, be carried in your general loans and may be
pledged, repledged, hypothecated or re-hypothecated, separately or in common
with other securities for the sum due to you thereon or for a greater sum and
without retaining in your possession or control for delivery a like amount of
similar securities. The IRS requires Broker Dealers to treat
dividend payments on loaned securities positions as in-lieu dividends for
1099 tax reporting purposes. Taxation of substitute dividend payments may be
greater than ordinary on qualified dividends. It is understood, however, that
you agree to deliver to the undersigned upon demand and upon payment of the
full amount due thereon, all securities in such accounts, but without obligation
to deliver the same certificates or securities deposited by the undersigned
originally. Any securities in the undersigned's margin or short account may
be borrowed by you, or lent to others. 18. Interest. Debit balances in all
the accounts of the undersigned shall be charged with interest in accordance
with your established custom, as disclosed to the undersigned in the
Customer Information Brochure pursuant to the provisions of Rule 10b-16 of
the Securities Exchange Act. 19. Margin. The undersigned agrees to maintain
in all accounts with you such positions and margins as required by all
applicable statutes, rules, regulations, procedures and custom, or as
you deem necessary or advisable. The undersigned agrees to promptly satisfy
all margin and maintenance calls. 20. Sales. The undersigned agrees to
specifically designate any order to sell a security which the undersigned
does not own as a short sale, and understands that you will mark such order as
a short sale. The undersigned agrees that any order which is not specifically
designated as a short sale is a sale of securities owned by the undersigned,
and that the undersigned will deliver the securities on or before settlement
date, if not already in the account. If the undersigned should fail to make
such delivery in the time required, you are authorized to borrow such securities
as necessary to make delivery for the undersigned's sale, and the undersigned
agrees to be responsible for any loss you may thereby sustain, or which you
may sustain as a result of your inability to borrow such securities. OPTIONS AGREEMENT BY SIGNING BELOW, THE UNDERSIGNED CERTIFIES THAT
THE INFORMATION CONTAINED HEREIN IS COMPLETE AND ACCURATE. THE
UNDERSIGNED AGREES TO ADVISE ITS BROKER OF ANY MATERIAL CHANGE IN
THE UNDERSIGNED'S FINANCIAL STATUS AND/OR INVESTMENT OBJECTIVES.
BY SIGNING ABOVE, THE UNDERSIGNED AGREES TO ALL TERMS OF THE CUSTOMER
OPTIONS AGREEMENT PRINTED ON THE FOLLOWING PAGES OF THIS DOCUMENT. PARAGRAPH
9 OF THIS DOCUMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE. THE UNDERSIGNED
ACKNOWLEDGES THAT HE/SHE HAS RECEIVED THE DISCLOSURE DOCUMENT,
"CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS" AND IS AWARE OF THE
SPECIAL RISKS INHERENT IN OPTIONS TRADING. In connection with any
transactions in options which have been or may be purchased, sold, exercised
or endorsed for the undersigned's account with an introducing broker(s) which
clears through Penson Financial Services, Inc., the undersigned agrees as
follows: 1. Definitions. Introducing broker? means any brokerage firm which
introduces security transactions on behalf of the undersigned, which
transactions are cleared through you, whether one or more . "Obligations"
means all indebtedness, debit balances, liabilities or other obligations of
any kind of the undersigned to you, whether now existing or hereafter
arising. "Options" means all types of options, including puts, calls, equity,
debt, index or otherwise. "Securities and other property" shall include, but
shall not be limited to money, securities, commodities or other property of
every kind and nature and all contracts and options relating thereto, whether
for present or future delivery. "You" or "your" refers to Penson
Financial Services, Inc. 2. Limits. The Undersigned shall not, acting
alone or in concert with others, exceed the position/exercise limits set
forth by any exchange or market or by any other regulatory authority having
jurisdiction. 3. Authority, Execution of Orders, Security Interest. The
undersigned hereby authorizes you in your discretion, should you deem it
necessary for your protection for any reason, or if the undersigned dies, to
buy, sell, or sell short for the undersigned's account and risk, puts, calls
or other forms of option and/or to buy, sell or sell short any part or all of
the underlying shares represented by options endorsed by you for the
undersigned's account. Any and all expenses incurred by you in connection
with such transactions shall be reimbursed by the undersigned to you. The
undersigned understands and acknowledges that when transactions on the
undersigned's behalf are to be executed and the options are traded in more
than one marketplace you may use your discretion in selecting the market in
which to enter the undersigned's order unless the undersigned specifically
instructs otherwise. All monies, securities, or other property which you may
hold in any account of the undersigned shall be held subject to a general lien
for the discharge of the undersigned's obligations to you under this
Agreement or otherwise. 4. Notice, Exercise, Random Allocation. The
undersigned is aware of your requirements and time limitations for accepting
an exercise notice and expiration date. The undersigned understands that the
undersigned may not receive actual notice of exercise until the
week following exercise. The undersigned bears full responsibility for taking
action to exercise or sell valuable options; however, in the absence of the
undersigned notifying the introducing broker to exercise a valuable options
contract by 3 p.m. Central Standard Time on the last business day prior to
the expiration date of the options contract, and the introducing broker
instructing you to sell valuable options on the undersigned's behalf within
such time, the undersigned agrees that you may exercise the options contract
on the undersigned's behalf. In the event of such exercise, the profit in
excess of commission costs created thereby will be credited to the
undersigned's account. In the event that the commissions to be
charged for such an expiration transaction exceeds the proceeds to be
realized, the undersigned agrees and hereby relinquishes the undersigned's
ownership in said option to you, and you may exercise such option for your
own account. If the undersigned does not instruct the introducing broker to
exercise the valuable option by the time stated above, and you for whatever
reason, do not exercise such option on the undersigned's behalf, the
undersigned hereby waives any and all claims for damage or loss which the
undersigned might at the time or any time thereafter have against you arising
out of the fact that the option was not exercised. The undersigned is aware
that you utilize a random method of allocation for all option(s) assignments
received from the Option Clearing Corporation. Exercise assignment notices
for options contracts are allocated among all customers' short positions
within that series. This is accomplished by a manual procedure, which
randomly selects from among all customer short positions, including positions
established on the day of assignment, those contracts which are subject to
exercise. All American short positions are liable for assignment at any time.
The undersigned understands that a more detailed description of this procedure
is available upon request by the undersigned. 5. Uncovered Options. The
undersigned agrees that in connection with any uncovered option(s) for the
undersigned's account, the undersigned will not sell, during the life of such
options, the underlying securities collateralizing such options, including
any cash or securities which may accrue on the underlying covered securities
until such options are closed, exercised or expired or the undersigned has
met the collateral requirements established by you and/or the
introducing broker for carrying uncovered options. The undersigned also
agrees that the introducing broker and/or you, in your respective sole
discretion, may refuse any order to sell such underlying securities received
from the undersigned or by means of a "give up" basis through another
firm unless, prior to such sale, the undersigned has met the collateral
requirements established by you and/or the introducing broker for carrying
uncovered options. You have the right, in your sole discretion, to permit the
undersigned to apply the proceeds of such sale to such
collateral requirements. 6. Risks. The undersigned is aware of the high
degree of risk involved in options transactions and has given the introducing
broker, in strict confidence, information to demonstrate that this account
and the trading anticipated in connection therewith is not unsuitable for the
undersigned in light of the undersigned's investment objectives, financial
situation and needs, experience and knowledge. The undersigned agrees to
advise the introducing broker of any changes in the undersigned's investment
objectives, financial situation or other circumstances that may be deemed to
materially affect the suitability of executing options transactions for the
undersigned's account. 7. Options Account Form, Disclosure Documents. The
undersigned has reviewed the contents of the options account form and
represents that they are accurate. Although certain types of transactions are
indicated as anticipated you and the introducing broker may execute any
other types of transactions for the undersigned's account upon the
undersigned's instructions. The undersigned has received an Options
Disclosure Document relating to options on the categories of underlying
securities which the undersigned has been approved for trading. 8. Accounts
Carried as Clearing Broker. The undersigned understands that you are carrying
the accounts of the undersigned as clearing broker by arrangement with the
undersigned's introducing broker through whose courtesy the account of the
undersigned has been introduced to you. Until receipt from the undersigned of
written notice to the contrary, you may accept and rely upon the introducing
broker for (a) orders for the purchase or sale in said account of
securities and other property, and (b) any other instructions concerning the
undersigned's accounts. The undersigned represents that the undersigned
understands that you act only to clear trades introduced by the undersigned's
introducing broker and to effect other back office functions for the
undersigned's introducing broker. The undersigned confirms to you that the
undersigned is relying for any advice concerning the undersigned's accounts
solely on the undersigned's introducing broker. The undersigned
understands that all representatives, employees and other agents with whom
the undersigned communicates concerning the undersigned's account are agents
of the introducing broker, and not your representatives, employees or other
agents. The undersigned understands that you will not review the
undersigned's accounts and will have no responsibility for trades made in the
undersigned's accounts. You shall not be responsible or liable for any acts
or omissions of the introducing broker or its representatives, employees
or other agents. THE FOLLOWING ARBITRATION AGREEMENT SHOULD BE READ
IN CONJUNCTION WITH THESE DISCLOSURES: a. ALL PARTIES TO THIS AGREEMENT
ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A
TRIAL BY JURY EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORM
IN WHICH A CLAIM IS FILED; b. ARBITRATION AWARDS ARE GENERALLY FINAL AND
BINDING; A PARTY'S ABILITY TO HAVE A COURT REVERSE OR MODIFY
AN ARBITRATION AWARD IS VERY LIMITED. c. THE ABILITY OF THE PARTIES TO
OBTAIN DOCUMENTS, WITNESS STATEMENTS AND OTHER DISCOVERY IS GENERALLY MORE
LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS; d. THE ARBITRATORS DO
NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD. e. THE PANEL OF
ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE
AFFILIATED WITH THE SECURITIES INDUSTRY. f. THE RULES OF SOME ARBITRATION
FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME
CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN
COURT. g. THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED,
AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED template: INTO THIS
AGREEMENT. 9. ARBITRATION AGREEMENT. ANY AND ALL CONTROVERSIES, DISPUTES
OR CLAIMS BETWEEN THE UNDERSIGNED AND YOU, OR THE INTRODUCING BROKER, OR
YOUR AGENTS, REPRESENTATIVES, EMPLOYEES, DIRECTORS, OFFICERS OR CONTROL
PERSONS, OR OF THE INTRODUCING BROKER, ARISING OUT OF, IN CONNECTION WITH,
FROM OR WITH RESPECT TO (a) ANY PROVISIONS OF OR THE VALIDITY OF THIS
AGREEMENT OR ANY RELATED AGREEMENTS, (b) THE RELATIONSHIP OF THE PARTIES
HERETO, OR (c) ANY CONTROVERSY ARISING OUT OF YOUR BUSINESS, THE
INTRODUCING BROKER'S BUSINESS OR THE UNDERSIGNED'S ACCOUNTS SHALL
BE CONDUCTED PURSUANT TO THE CODE OF ARBITRATION PROCEDURE OF THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS, INC. ARBITRATION MUST BE COMMENCED BY
SERVICE OF A WRITTEN DEMAND FOR ARBITRATION OR A WRITTEN NOTICE OF INTENTION
TO ARBITRATE YOU ARE A PARTY TO SUCH ARBITRATION, TO THE EXTENT PERMITTED BY
THE RULES OF THE APPLICABLE ARBITRATION TRIBUNAL, THE ARBITRATION SHALL
BE CONDUCTED IN DALLAS, TEXAS. THE DECISION AND AWARD OF
THE ARBITRATORS(S) SHALL BE CONCLUSIVE AND BINDING UPON ALL PARTIES, AND
ANY JUDGMENT UPON ANY AWARD RENDERED MAY BE ENTERED IN A COURT HAVING
JURISDICTION THEREOF, AND NEITHER PARTY SHALL OPPOSE SUCH ENTRY. No person shall bring a putative or certified class action to
arbitration, nor seek to enforce any pre-dispute arbitration agreement
against any person who has initiated in court a putative class action; or who
is a member of a putative class who has not opted out of the class with respect
to any claims encompassed by the putative class action until:(i) the class
certification is denied; or (ii) the class is de-certified; or (iii) the
customer is excluded from the class by the court. Such forbearance to enforce
an agreement to arbitrate shall not constitute a waiver of any rights
under this agreement except to the extent stated herein. 10. Other
Agreements. The undersigned agrees to be bounded by the terms of your
Customer Account Agreement. If the undersigned trade on margin or short
accounts, the undersigned agrees to be bound by the terms of your Customer
Margin and Short Account Agreement. The undersigned understands that copies
of these agreements are available from you and, to the extent applicable, are
incorporated by reference herein. The terms of these other agreements are
in addition to the provisions of this Agreement and any other written
agreements between you and the undersigned. 11. Data Not Guaranteed. The
undersigned expressly agrees that any data or online reports is provided to
the undersigned without warranties of any kind, express or implied, including
but not limited to, the implied warranties of merchantability, fitness of a
particular purpose or noninfringement. The undersigned acknowledges that the
information contained in any reports provided by you is obtained from sources
believed to be reliable but is not guaranteed as to its accuracy of
completeness. Such information could include technical or other inaccuracies,
errors or omissions. In no event shall you or any of your affiliates be
liable to the undersigned or any third party for the accuracy, timeliness, or
completeness of any information made available to the undersigned or for any
decision made or taken by the undersigned in reliance upon such information.
In no event shall you or your affiliated entities be liable for any special
incidental, indirect or consequential damages whatsoever, including, without
limitation, those resulting from loss of use, data or profits, whether or not
advised of the possibility of damages, and on any theory of liability,
arising out of or in connection with the use of any reports provided by you
or with the delay or inability to use such reports. 12. Credit Check. You
are authorized, in your discretion, should you for any reason deem
it necessary for your protection to request and obtain a consumer credit
report for the undersigned. 13. Miscellaneous. The undersigned agrees that
this Agreement and all transactions in the undersigned's accounts shall be
governed by the constitution, rules, regulations, customs, usages and bylaws
of the Options Clearing Corporation and all exchanges or other facilities upon
which options are traded for the account of the undersigned. If any
provisions of this Agreement is held to be unenforceable, it shall not affect
any other provisions of this Agreement. The headings of each sections of this
Agreement are descriptive only and do not modify or qualify any provision of
this Agreement. This Agreement and its enforcement shall be governed by the law
of the state of Texas and shall cover individually and collectively all
accounts which the undersigned has previously opened, now has open or may
open or reopen with you, or any introducing broker, and any and all previous,
current and future transactions in such accounts. Except as provided in
this Agreement, no provision of this Agreement may be altered, modified or
amended unless in writing signed by your authorized representative. This
Agreement and all provisions shall insure to the benefit of you and your
successors, whether by merger, consolidation or otherwise, your assigns, the
undersigned's introducing broker, and all other persons specified in Paragraph
9. You shall not be liable for losses caused directly or indirectly by any
events beyond your reasonable control, including without limitation,
government restrictions, exchange or market rulings, suspension of trading or
unusually heavy trading in securities, a general change in
economic, political or financial conditions, war or strikes. You may transfer
the accounts of the undersigned to your successors and assigns.This
Agreement shall be binding upon the heirs, executors, administrators,
successors and assigns of the undersigned.Adbico.com is not a
registered broker/dealer. All securities and investments are offered through Adbico, a division of Advanced Biological Computing Securities, Inc. Member NASD. Member of
SIPC, which protects securities customers of its members up to $500,000
(including $100,000 for claims of cash). Explanatory brochure available upon
request or at www,staff@adbico.com.This
coverage provides protection against brokerage insolvency and does not protect
against loss of market value of securities. Please click stock ageement