LPL Dividend Reinvestment Program Disclosure

Following are important disclosures about the LPL Financial LLC and LPL Enterprise LLC (collectively, “LPL”) Dividend Reinvestment Program ( “DRP”). Throughout this disclosure, some key terms are defined as follows:

“Business Day” means Monday through Friday, excluding New York Stock Exchange holidays.

“Eligible Securities” means equity stocks that are: worth over $5.00 per share; pay dividends consistently and on time; have an average daily trading volume of 10,000 or above; are not foreign securities.  LPL may exclude individual stocks or change the definition of Eligible Securities at any time without notice to me.  Short positions are not Eligible securities.

“Eligible cash distributions” means most cash distributions, including regular and capital gains distributions. Special dividends, late ex-date, liquidation, and miscellaneous payments may not be eligible distributions. Optional dividends are not considered eligible distributions under the DRP.

1. Enrollment

Certain eligible securities are automatically enrolled in DRP. If you wish to opt out of DRP enrollment for these securities, you may do so by providing notice to your financial professional or to LPL.

You may modify your account’s enrollment in DRP through consultation with your financial professional. In order to be eligible for dividend reinvestment, the securities must be held in an LPL account and the securities must be custodied at LPL Financial.  Activation will become effective three Business Days after enrollment.  All types of accounts are eligible.

There is no requirement that you participate in DRP.   

You may specify individual securities or have all eligible securities in your LPL account enrolled for dividend reinvestment. If your account is coded to reinvest all eligible securities, removal of any security from DRP may result in removal of all securities from DRP.

Once you have enrolled in DRP, all eligible cash distributions will be reinvested in all securities you have selected in DRP, provided that you owned the securities on the record date for determining shareholders eligible to receive dividends and continue to hold the securities through the payable date.

LPL does not charge a fee for transactions executed pursuant to DRP. Any transaction fee imposed in the future, if any, will not exceed the customary brokerage commission charge and will be disclosed to you prior to being implemented, providing you with the opportunity to opt out of DRP without incurring such fee.

LPL will notify you in advance of any material changes to DRP.

You understand that your participation in DRP is voluntary, and that LPL is not recommending or offering any advice regarding the purchase of any security included as an eligible security in DRP. You further understand that dividend reinvestment does not assure profits on your investments, nor does it protect against losses in declining markets

2. Termination of Participation

You may terminate your participation in DRP, or the enrollment of individual securities in DRP, at any time by giving notice to your financial professional either by telephone or in writing. Termination will take effect with the next eligible distribution provided your notice to terminate was received at least three business days prior to the record date of that distribution. You understand that your notice to terminate will not affect any obligations that may result from transactions initiated prior to LPL’s receipt of your notice.

3. Dividend Reinvestment Transactions

LPL will combine eligible cash distributions from your account with those from other LPL clients requesting dividend reinvestment in the same security and use these combined funds to purchase securities on your behalf and on behalf of these other clients.

Subject to LPL's discretion, dividends will be reinvested on the dividend payable date or a Business Day shortly thereafter.  On that same day, LPL will credit your account with the number of shares, including fractional shares, equal to your eligible cash distribution divided by the purchase price per share. If the combined funds from all accounts requesting dividend reinvestment do not total the purchase price of at least one share, the distribution will not be reinvested. If more than one purchase transaction is necessary to satisfy dividend reinvestment for all participating accounts, the per-share purchase price will be the weighted average price per share for all such shares purchased. All dividend reinvestment transactions will be executed on an agency basis.

Prior to reinvestment, dividends received will be held in a separate identified account and LPL will include balances in that account as a credit when computing the Reserve Formula under Securities Exchange Act Rule 15c3-3a.  You will not have use of the funds prior to reinvestment. LPL may utilize DTC’s Dividend Reinvestment Service for certain distributions where it is advantageous to do so. Dividend reinvestment prices on such transactions will be obtained from DTC and will be distributed to clients when shares have been received from DTC, in most cases 7-10 Business Days following the payable date. 

4. Confirmation of Reinvestment Transactions

All of your dividend reinvestment activity will be confirmed on your regular LPL account statement; you will not receive separate confirmation notices of these transactions. The account statements will include all the information required by Exchange Act Rule 10b-10(a) that would be included in a separate trade-by-trade confirmation.  All non-DRP related transactions will continue to be confirmed as normal. You may obtain immediate information regarding your reinvested dividends from your financial professional, or from LPL Client Services Team.  Account statements may be provided on a quarterly or monthly basis.  Information about individual transactions is available from your financial professional, the Account View system, or the LPL Client Services Team at the number shown below. 

5. Treatment of Fractional Shares

Dividend reinvestment may result in your owning interests in fractional shares of a security.  LPL will calculate your fractional share position to three decimal places. You will be entitled to receive future dividend payments on your fractional shares, although other corporate actions may result in allocation of only whole shares and cash in lieu of fractions as determined by the issuer. You will also be entitled to receive proxy materials and voting rights proportionate to your partial interest, except in the event of certain types of corporate reorganizations. In mandatory corporate reorganizations, your partial interest will be handled according to the specific terms of the reorganization. In voluntary corporate reorganizations, LPL will act on your instructions with respect only to your whole shares.

Because fractional share positions cannot be transferred, reorganized, or issued in certificate form, your partial interest will be liquidated, without commission charges, at prevailing market prices in the event your account is transferred, the stock is reorganized, or sold, or stock certificates are ordered out of your account. The timing of such liquidations will be at the discretion of LPL. Any partial position will also be liquidated automatically should you sell all whole shares owned in a particular security.

6. Existing Brokerage and Advisory Agreements

You understand that you continue to be bound by the terms and conditions of the client account agreement(s) that govern your brokerage or advisory account as well as any other agreements between LPL and you that apply to your account(s).

7. No Recommendation and No Assurance Against Loss

Participation in DRP does not assure profits or protect against losses in declining market.  Inclusion or exclusion of a security from the list of Eligible Security in DRP is not a recommendation to buy or sell a particular security.

Need more information on LPL’s Dividend Reinvestment Program? Please contact your financial professional.