AccountNo.:
OPENING BALANCE $
ARegisteredInvestmentAdvisor
NCS MANAGED ACCOUNT
18872 MacArthur Blvd. First Floor
Irvine, CA 92612
800-992-5592
NCS Managed Account
ConfidentialClientProfileandAccountForm
NEWPORTCOASTSECURITES,INC. ConfidentialClientProfileandAccountForm
I.TYPEOFACCOUNT
Individual
JointTenantswithRightsofSurvivorship
JointTenantsinCommon
TenantsbyEntirety
Corporation
InvestmentClub
SoleProprietorship
Partnership
IRA(Traditional)
RolloverIRA
SEPIRA
RothIRA
Custodian
Guardian
401(k)
403(b)
TransferonDeath(TOD)
Estate
Trust
RevocableLivingTrust
U/W/AWill
LetterofConservatorship
CommunityProperty
Other
II.ACCOUNTINFORMATION
ClientName(Primary)
DateofBirth- - (Month-Day-Year)
AddressMailingAddress City State Zip
LegalAddress(If differentthan
mailingaddress)City State Zip
TelephoneNo.Daytime() Evening()
EmailAddress Driver’s LicenseNo. StateofIssuance ExpDate Tax Identification Soc.Sec.No.: - - TaxI.D.No.: - Citizenship U.S. ResidentAlien Non-ResidentAlien
IfNon-ResidentAlien,IndicateCountryPassportNo.
MaritalStatus NumberofDependent(s):
Employment Employer Type ofBusiness Position/ Title Address City State/Zip
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ClientName(Joint)
DateofBirth - - (Month-Day-Year)
Address MailingAddress City State Zip
LegalAddress (If differentthan
mailingaddress) City State Zip
TelephoneNo. Daytime( ) Evening( )
EmailAddress Driver’s LicenseNo. StateofIssuance ExpDate Tax Identification Soc.Sec.No.: - - TaxI.D.No.: - Citizenship U.S. ResidentAlien Non-ResidentAlien
2
ADVISORIandADVISORIICLIENTAGREEMENT04-04-07
IfNon-ResidentAlien,IndicateCountryPassportNo.
MaritalStatusNumberofDependent(s):
Employment Employer Type ofBusiness Position/ Title Address City State/Zip
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ANNUALINCOME–ApproximateAnnualIncomeFromAllSources:(ForJointAccountCheckYourCombinedIncome)
Under$25,000$25,000to$50,000$50,000to$100,000Over$100,000
Pleasestateamount$
NETWORTH:(ExclusiveofHomeandFarm)
Under$50,000 / $50,000to$100,000 / $100,000to$500,000$500,000to$1,000,000Over$1,000,000 / Over$5,000,000 / Pleasestateamount$
LIQUIDNETWORTH:(IncludingCashandSecurities)
Under$50,000 / $50,000to$100,000 / $100,000to$500,000$500,000to$1,000,000Over$1,000,000 / Over$5,000,000 / Pleasestateamount$
TAXBRACKET:15%orBelow16%to28%Over28%
HighestLevelofEducationofPrimaryClient:
III.CLIENTINVESTMENTINFORMATION
A.Do youanticipatesignificantchangeof incomeoverthenextthreeyears?
NoYes(IfYes,explain)
B.ForTrustAccount:
SpecifyTypeofTrust:(CheckAllThatApplies)
Revocable Irrevocable Annuity
StandardTrust NetIncomeUnitrust NetIncomeUnitrustwithMake-UpProvision
WhatistheanticipatedTrustPayoutRate: % TheTrustrequiresthattheincomedistributionscomefrom:
InterestDividends Corpus Either Both
C.Whichbestdescribesthecurrentassetallocationofyourtotalassets:
100% Equities / 0% Fixed IncomeOther Allocation - Please describe:
80% Equities / 20% Fixed Income
60% Equities / 40% Fixed IncomeCash%
40% Equities / 60% Fixed IncomeBonds%
20% Equities / 80% Fixed IncomeEquities%
0% Equities / 100% Fixed Income%
0% Equities / 100% Cash=100% D.Please enter the primaryclient’s level of knowledge in each of the following:
IV.INVESTMENTSTRATEGYINFORMATION
(Pleasecompletethefollowingquestionsastheyapplyspecificallytotheassetsbeingconsideredforthisinvestmentstrategy proposal)
A.Initialinvestmentamountforthisprogram: $
B.Pleasedescribeyourgoalsfortheseparticularassets:
C.NOTE:ACCOUNTSARENOTMANAGEDFORCASHFLOW:
Willyourequiredistributionsor withdrawalsfromtheseassets?
NoYes Ifyes:Amount$
Frequency
D.Do youintendtomakeadditionalcontributions/deposits?
NoYes Ifyes:Amount$
Frequency
V.INVESTMENTOBJECTIVESANDRISKTOLERANCE
(Pleasecompletethefollowingquestionsastheyapplyspecificallytotheassetsbeingconsideredforthisinvestmentstrategy proposal)
A.Yourrequirementforinvestmentincomeis:
ExtremelyImportant–I needincometomeetmydailylivingexpenses
Important–I requiremyinvestmentincometomaintainmylifestyle
SomewhatImportant–Investmentincomeallowsmetoaffordadditionaldiscretionaryitems
SomewhatUnimportant–Investmentincomeoffersmeadditionalliquidity,thoughI don’trequirethefunds
Unimportant–Myinvestmentstrategyisforlong-termgrowthandI havenoneedforadditionalincomeatthistime
B.Thegoalofmyinvestmentstrategyisto:
Maintainfullliquidity(cashorequivalents)withouthavingtokeeppacewithinflation
Tokeepmyassetssafe,butI wishtokeeppacewiththeinflationrate
Receiveamoderatereturnovertherateofinflation
Receiveagreaterthanaveragereturntocontinuouslygrowmyassets
Increasemywealthbyreceivingsignificantlygreaterthanaveragereturns
C.Pleasechooseoneofthefollowingwhichbestdescribesyourinvestmentobjective:
InCashorCashEquivalentassetsthatseekmaximumpreservationofvaluewithlittleorno objectiveofincomeorappreciation,nominalvolatilitycanbeexpected
InIncomeassetsthatseekahighlevelofincomewithlittleornoobjectiveofcapitalappreciation, moderatevolatilitycanbeexpected
InBalancedassetsthatseekbothcapitalappreciationandaninvestmentobjectiveofincome, moderatevolatilityisexpected
InGrowthassetsthatseekcapitalappreciationwithnocurrentincomeobjectiveandasubstantial allocationtoequitytypesecurities,highvolatilityisexpected
InAggressiveGrowthassetsthatseekaggressivegrowthwithnocurrentincomeobjectiveand afullallocationtoequitytypesecurities,substantialvolatilityisexpected
D.Pleaserateyourtolerancetoinvestmentrisk:(1)beingthelowestand(10)beingthehighest
E.Whenyoulearnthevalueofyourinvestmentsdropped30%,you:
SellImmediately
Sellifitdropsfurther
Waituntilthevaluereturnsandthensell
Continuetoholdforalongtime
Buymore
F.Allowingalongertimeperiodformeetingyourinvestmentgoalsmakesitmoreprobableyouwillachievethem.Further,thelongeryourtime horizon,themorethevolatilityofyourportfoliodecreases.Giventhis,whatinvestmenttimehorizonismostappropriatefortheseassets:
1-3 Years 3-5 Years 5-10Years 10 YearsorMore
G.Arethereanylegal,social,taxor otherconstraintsthatmayberelevanttothemanagementoftheportfolio:
H.Arethereanylimitationstoholdingspecificsecuritiesintheportfolio:
I.Isthereanyadditionalinformationaboutyourself,yourcurrentfinancialstatusorgoalsthatispertinenttothemanagementofyourportfolio:
VI.AFFILIATIONS
1.I amI amnot affiliatedwith,or workforastockexchangeoramemberfirmofanexchangeortheFINRA.
Pleaseindicatenameoffirm(ifApplicable):
(Notificationofyourintenttoopenanaccountwillbesenttoyouremployerinaccordancewithcurrentregulation.)
2.I amI amnot director, 10%shareholder, policymakingexecutiveofficerofapubliclytradedcompany.
Pleaseprovidenameofcompany(IfApplicable):
Ifyouhavecheckedanyoftheabove,pleasesupplyaccountnumber(s)of otheraccountsyouhavewithus:
PowerofHaveyougrantedtradingauthorizationtosomeoneotherthantheaccountowner(s)? Yes No
AttorneyIfso,pleaseattachthetradingauthorizationunlessyouhavepreviouslyprovidedittous.
NatureOfPleaseindicatetherelationshipbetweenyouandyouragent(e.g.,investmentadvisor,familymember,trustee,etc.):
Relationship
(SIGNATURE PAGE CONTINUED)
XX
Client (Primary) SignatureClient (Joint) Signature
Date:
Date:
Investment Advisor Representative SignatureRep No.Date
Branch Manager SignatureDate
NCS Managed Account Agreement
ThisClientAgreement("Agreement")isenteredinto byandbetweenNewportCoastSecurities,Inc.("NCS"),a Registered InvestmentAdviser,registeredwiththeStateofCaliforniaandbroker-dealer registered with the SEC andmemberFINRA/SIPC, ("NCSInvestmentAdvisorRepresentative” or “IAR”"), NCS's designated Investment Advisor Representative, and
("Client").
ClientdesirestoopenaNCSManagedAccount(the“Account”) with NCS. Through this managed account, Client becomes a participant in NCS's investment strategies and policies. The management of Client assets in a NCS ManagedAccountbytheIARistailoredtotheinvestmentgoalsandobjectivesoftheclient as determined in the ConfidentialClientProfile(the"Questionnaire"). NCS allocates Client's assets based on information prepared by Client with the assistance ofthe IAR.
A. DESCRIPTION OF SERVICE
1.ClientauthorizesNCSand/orIARtomakealldecisions to buy, sell, exchange or hold securities, cash otherinvestmentsandsharesofmutualfundsoffered through Cor Clearing (“Cor”)forClient’sAccountatthediscretionof NCSand/orIARinaccordancewithClient’s investmentpolicyandwithoutfirstconsultingClient.Mutual fund investments which provide for thepaymentof12b-1distributionfeesshallnotbepurchasedforanyclientwhichisapension orotheremployeebenefitplan(includinga401(k) plan) governed by the Employee Retirement IncomeSecurityActof1974,asamended(“ERISA”). ClientgivesNCSand/orIARfullpower andauthoritytocarryoutthesedecisionsbygiving instructions, on Client's behalf, to Cor Clearing ("Cor"), the ("Custodian") for Client's Account.
2.TheIARshallobtainthefinancialdatanecessarybycompleting,withClient,theQuestionnaire, securetheClient'ssignaturetothisAgreement andperiodicallyreviewtheClient'sAccountwith Client. ClientwillletNCSand/orIARknowifClient'sfinancialcircumstancesorinvestment objectiveschangeinawaythatshouldcauseNCSand/orIARtochangehowNCSand/orIAR manageClient'sAccount. NCSand/orIARareentitledtorelyontheaccuracyoftheinformation furnishedbyClientwithoutfurtherinvestigation. IAR shall communicate all changes in Client's financialcircumstancesandobjectivestoNCS.AmemberofNCS'sinvestmentmanagementteam shall personally review the Questionnaire as well as personally review all changes in circumstances.
3.TheindividualcircumstancesdisclosedbytheQuestionnaire,anyspecialinstructionsorlimitsthat Client wants NCS and/or IAR to follow in managing Client's Account, and personal interviews shall determineeachClient'sinvestmentpolicy. Furthermore,allsecuritiesshallbeheldintheClient's name and Client shall have the right to withdraw any individual security in kind as well as hypothecate or vote any specific security.
4.NCSshall,throughaseparateagreementwithCor,arrangeforthecustodyofClient'sAccountwith Cor. Client will not be charged for Cor's custodial services, except for usual and customary charges byCorforretirementandIRAaccounts. Corshall,inanymonthinwhichthereisactivityin Client'sAccount,provideClientwithamonthlystatementshowingsuchactivityalongwithalisting ofallpositionsheldintheAccountatmonth-end. Clientwillalsoreceiveaconfirmationofeach transaction that occurs in Client’s Account.
5.TheminimumsizeofaNCSManagedAccountshallbe$25,000. NCSshallhavethefurther discretiontowaivetheminimum accountsizeuponopeningoftheNCSaccountortoterminateany NCS account which falls below $25,000.
B.DISCRETIONARY AUTHORITY
1.ClientdelegatestoNCSand/orIARdiscretionarytradingauthorizationwithrespecttothepurchase andsaleofsecuritiesincludedintheAccount,the saleofpreviouslypurchasedsecurities,andthe purchaseandsaleofsharesofmutualfundsconsistentwiththeinvestmentpolicy,ifany,approved by Client.
AppointmentofTradingAuthorization:ClientmaydesignatetoNCSor IAR discretionarytrading authorizationforallsecuritiestransactionsif so indicated below. Such appointment must be completed when a TPA has been selected to manage clients’ NCS account:
(initials) Yes, I hereby designate discretionary trading authorization for all securities in the NCS Account to .
IfClientdoesnotchoosetodesignatetoNCSor IAR discretionary trading authorization. Client understandsthatNCSorIARwillmanageClient’saccountonanon-discretionarybasisandwill effect transactions only upon instruction fromClient.
ClientherebyappointsNCSand/orIARasattorney-in-facttopurchase,sellandtradesuchshares. NCSand/orIARwillnotvoteoradviseClientabouthow to vote proxies for securities held in Client's Account. The Custodian shall promptly send Client all proxies and related shareholder communicationsforthesecuritiesheldinClient'sAccount.(IfClientisinaplansubjecttoERISA, see Section M.5. below.) NCS and/or IAR will not advise Client or act for Client in any legal proceedings, including bankruptcies or class actions, involving securities held for Client's Account or the issuers ofthose securities.
2.NCSand/orIARisnotauthorizedtowithdrawortransferanymoney,securitiesorpropertyinthe name of the Client or otherwise, except asprovided above in paragraph B.1., and except as provided for the withdrawal of fees fromthe account in paragraph C.4. below.
3.ClientunderstandsthatNCSandIARmayperformadvisoryservicesforvariousotherclients,and thatthesepartiesmaygiveadviceortakeactionsfortheseotherclientsthatdiffersfrom theadvice, timing and action taken for Client's Account. The authority granted herein shall not be impaired or affected by the fact that NCS or IAR may bebuying or selling for its own account or under similar discretionaryauthorityforothers.Further,NCS and IAR are not obligated to purchase, sell or recommendforpurchaseanysecuritythatNCSor IAR may purchase, sell or recommend for any client or purchase or sell in their own account.
4.IfNCSand/orIARobtainmaterial,non-publicinformationaboutasecurityoritsissuerthatNCS and/orIARmaynotlawfullyuseordisclose,NCSand/orIARwillhavenoobligationtodisclose the information to Client or use it for Client's benefit.
5.InnoeventwillNCSorIARbeobligatedtoeffectanytransactionforClientwhichitbelieveswill violateanyapplicablestateorfederallaw,rule orregulation,ortherulesorregulationsofany regulatory or self-regulatory body.
C.MANAGEMENT FEES
1.Clientagreestopaytheannualizedmanagementfee("Fee")statedonScheduleAwhichisattached to and is part of this Agreement. The Fee is payable quarterly in arrears within 15 business days of afterendofthecalendarquarter. TheFeeiscalculatedonthelastbusinessdayofeachmonth basedupontheassetsundermanagementintheNCS Account during the month, as valued by independentpricingservices,wheneveravailable, or obtained in good faith through other customarily acceptable sources and reflected on the Client’s statement.
TheinitialFeepaymentisproratedbaseduponthenumberofdaysremaininginthequarterfrom thedatetheNCSAccountisopenedandispayablewithin15businessdaysaftertheendofthefirst
fullcalendarquarterinwhichtheNCSaccountisopen. TheFeesareautomaticallydeductedby
Cor fromClient’s Account and are shown on Client’s account statements.
Client’sAccountwillbeassessedaTransaction Charge (ticket charge) in the amount of $19.50 for securities transactionseffectedintheAccount. TransactionChargesareseparateanddistinctfrom Feesand arechargedwhenatransactionoccursinthe NCSaccount.TransactionChargesareautomatically deductedfrom Client'sNCSaccountandareshownonClient'stransactionconfirmations. The ManagedAccountadvisorplatformfeeshallalsobechargedtoClient’sAccountonaquarterly basis at the flat rate of $18.75 per quarter.
Certain mutual funds purchased in the NCSaccount may incur the standard and typical sales charge asdisclosedintheprospectusofthemutualfunduponinitialinvestmentinthemutualfund. The NCSaccountFeeisseparatefromanymanagementfeesorexpenseschargedtoallshareholdersof a mutual fund, which are described in the fund's prospectus.
Client, except an ERISA plan client, may also incur certain charges imposed by third parties in connectionwithinvestmentsmadethroughtheClient’sAccount,includingbutnotlimitedto mutualfund12b-1distributionfees,certaindeferred sales charges on previously purchased mutual funds and IRA and Qualified Plan fees.
AClientaccountheldonNCS’sadvisoryplatform inwhichNCSand/orIARmakeavailableto client investment strategy modeling, periodic account review and rebalancing, and quarterly performance reporting shall be charged a custodial platform fee of .15% of assets under management in the Client Account on a quarterly basis.
2.ClientmayelecttohavetheNCSAccountmanagedbyaindependentThirdPartyAdvisor(“TPA”) sodesignatedonScheduleA. TPAmanagementfeesshallbepayableinaccordancewiththe TPA’sclientagreementanddeductedfrom client’sNCSaccountpursuanttowritteninstructions delivered by the TPA.
3.ClientspecificallyauthorizesCortodeductallFeesfromClient'sAccountwhendueinaccordance withparagraphC.1.above,andallapplicablelaws. Clientwillreceivenotificationofthepayment of all Fees on the Client's periodic account statement.
D.DISCLOSURES
1.ClientacknowledgesthatNCSandIARshareallFeespaidbyClient.NCSreceivesaportionofthe fee for establishing and implementing the investment policy and providing monthly statements throughCor. IARreceivesthebalanceofthe Fee for assisting Client in completing the Questionnaire,developingtheinitialpolicy recommendation and managing the ongoing Client relationship. NCSmaypayaportionofthefeetoanyTPAdesignatedbyclienttomanagethe Client’s Account.
2.Clientacknowledgesthateachmutualfundincludesseparateinvestmentmanagementfeesand incurs other expenses such as custodian fees, distribution expenses and trading commissions. Client alsoacknowledgesthatClientcanpurchaseshares oftheselectedmutualfundsdirectlywithout incurring the investment advisory fees provided for in this Agreement.
3.Client acknowledges and directs that all securities transactions be effected through NCS and clearedthroughCor.Clientunderstandsthatbydirecting securities transactions to be effected through NCS, NCS will not seek to obtain potentially better overall executions, including more favorable prices and lower commission rates which might be available through other broker- dealers.
4.ClientacknowledgesthatNCSandIARareactingasbothinvestmentadviserandbroker-dealerfor theNCSaccountandisreceivingcompensationfor acting in both capacities. NCS and IAR have a fiduciarydutytoprovideClientwithunbiasedadvice, but also have a self-interest in receiving any Feesandchargetransactionseffected. Asaresult,aconflictofinterestexiststhatcouldaffectthe
objectivityofrecommendationsbyNCSandIAR.Client further acknowledges that NCS and IAR's recommendationsarelimitedtosecuritiesoffered throughNewportCoastSecuritiesandthatother suitable securities and investment products may be available through other broker-dealers.
5.TheClientacknowledgesreceiptofScheduleA,NCS’sprivacypolicyandacopyofNCS'sForm
ADV, Part II:
(Initial)
(a) at least 48 hours prior to signing this Agreement. (b) upon signing this Agreement.
E.LIMITATION OF LIABILITY
1.NCSandIARhaveseparateanddistinctdutiesunderthisAgreement. IARisresponsibletoClient for setting the investment policy, selecting securities to implement the policy, unless trading authorization has been granted to a TPA, and reporting to Client on the performance of the securitiesselected. IARisresponsiblefor assisting Client in completing the Questionnaire, managing the Client's Account and the ongoing Client relationship.
2.Exceptasmayotherwisebeprovidedbylaw,NCSand/orIARwillnotbeliabletoClientforany loss(i)thatClientmaysufferasaresultofgood faith decisions or actions where NCS and/or IAR exercisethedegreeof care,skill,prudenceanddiligencethataprudentpersonactinginalike capacitywoulduse;(ii)causedbyfollowingClient'sinstructions;or(iii)causedbyPFSorany other person. Federal and state securities laws impose liabilities under certain circumstances on personswhoactingoodfaith,andthisAgreementdoesnotwaiveorlimitClient'srightsunder those laws.
3.ClientacknowledgesthatneitherNCSnorIARshallbeliableforanyactoromissionoftheother or its agents or employees.
4.NCSand/orIARcannotguaranteethefutureperformanceofClient'sAccount,promiseanyspecific levelofperformanceorpromisethatinvestment decisions, strategies or overall management of Client'sAccountwillbesuccessful. TheinvestmentdecisionsNCSand/orIARwillmakefor Clientaresubjecttovariousmarket,currency, economic,politicalandbusinessrisks,andwillnot necessarily be profitable.
In managing the Account, NCS and/or IAR will not consider any other securities, cash, or other investmentsorassetsClientownfordiversificationorotherpurposes. NCSand/orIARwillhave noresponsibilitywhatsoeverforthemanagementofanyofClient'sassetsotherthantheAccount andshallincurnoliabilityforanylossordamagewhichmayresultfrom themanagementofsuch other assets.
5.NeitherNCSnorIARshallhaveanyliabilityforClient'sfailuretoinformNCSorIARinatimely manner of any material change in Client's financial circumstances which might affect the manner in whichClient'sassetsareinvested,ortoprovideNCSorIARwithanyinformationrelatingto Client's financial status as may reasonably be requested.
F.ASSIGNMENT/TERMINATION
1.ThisAgreementmaynotbeassigned(withinthemeaningoftheInvestmentAdvisersActof1940 (the“AdvisersAct”)ortransferredinanymanner by any party without the written consent of all parties hereto, and the powers conferred upon NCS hereunder shall not be affected by any subsequent disability or incompetence ofClient.
2ThegrantofdiscretionaryauthoritymadeinparagraphB.1.aboveiscontinuingandshallremainin fullforceandeffectandberelieduponuntilNCSreceivesawrittenterminationnotice.Upon receipt of a written termination notice, this Agreement is deemed terminated subject to the provisions of this Section F.
3.Client will have five business days after execution of this Agreement ("five-day period") to terminatetheAgreementwithoutpenaltyandreceiveafullrefundoffeespaid,ifany. IfClient terminatestheAgreementafterthefive-dayperiod during the initial quarter in which the NCS Accountwasopened,Client’sAccountwillbecharged a prorated quarterly Fee based upon the number of days assets were managed during the period up to and including the Termination Date.
Uponreceiptofwrittenterminationnotice,NCSwilladviseCortodeliversharesheldinthe account as instructed by Client unless Client requests that the account be liquidated. NCS will initiateinstructionstodeliverfundsand/orsecurities,orprocessaccounttransferinstructions, within two weeks of Client's written request. If a NCS account is to be liquidated as a result of a terminationnotice,NCSwillhaveaperiodof 72hourstobeginliquidations.Proceedswillbe payabletoClientuponsettlementofalltransactions intheaccountsubjecttotheprovisionsofthis Paragraph F.3.
IntheeventClient’sAccountfallsbelowtherequiredminimumaccountsizeof$25,000,Client understandsthatNCSandIARmayterminateAccountand this Agreement in accordance with the provisions of this Paragraph F.3.
Client acknowledges and understands that on liquidation of the NCS account, Client may experienceataxablegainorloss.Clientagrees toseekindependenttaxadviceandspecifically releasesNCSandIARfrom anyresponsibilityfortaxconsequencesonliquidationofClient’s Account.
4.ThisAgreementwillcontinueineffectuntilClientorNCSand/orIARterminateit. Terminationof thisAgreementwillnotaffect(i)thevalidityof anyactionNCSand/orIARhavepreviouslytaken; (ii)Client'sorNCS'sliabilitiesorobligationsfor transactionsstartedbeforetermination;or(iii) Client'sobligationtopaytheFeethroughthedateoftermination. Upontermination,NCSand/or IAR will have no obligation to recommend or take any action with regard to the securities, cash or other investments in Client's Account.
5.The provisions of section E,G,I and J shall be deemed to survive termination of this Agreement.
G.CONFIDENTIALITY
Noneof theinformationanddatathatClientprovidestoNCSandIARwillbedisclosedbyNCSor IARtoanyothernon-relatedfirm,personorentity withoutpriorconsentofClient,unlesssuch disclosure is required by law.
H.SEVERABILITY
IfanyprovisionofthisAgreementshallbeheld or made non-enforceable by a statute, rule, regulation,decisionofatribunalorotherwise,such provision shall be automatically reformed and construedsoastobevalid,operativeandenforceabletothemaximum extentpermittedbylawor equitywhilemostnearlypreservingitsoriginalintent. The invalidity of any part of this Agreement shallnotrenderinvalidtheremainderof thisAgreementandtothatextenttheProvisionof this Agreement shall be deemed to be severable. The captions in this Agreement are included for convenience of reference only and in no way define or limit any of the provisions hereof or otherwise affect their construction or effect.
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I.GOVERNING LAW
ThisAgreementshallbeconstruedunderthelawsoftheStateofCaliforniawithoutregardto choice of law provisions, in a manner consistentwith the Investment Advisers Act of 1940 ("AdvisersAct")andtherulesandregulationsof theSecuritiesandExchangeCommissionthere under, and, if applicable, ERISA and any rule ororder of the Department of Labor under ERISA.
J.ARBITRATION
THISAGREEMENTISSUBJECTTOAPRE-DISPUTEARBITRATIONCLAUSEONPAGE
10. In connection with the following agreement to arbitrate, Client understands that:
ALLPARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT,INCLUDING THERIGHTTOATRIALBYJURY,EXCEPTAS PROVIDEDBYTHERULES OF THEARBITRATIONFORUMIN WHICH A CLAIM IS FILED.
ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY’S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED;
THEABILITYOFTHEPARTIESTOOBTAINDOCUMENTS,WITNESSSTATEMENTSAND OTHERDISCOVERYIS GENERALLYMORELIMITEDINARBITRATIONTHANINCOURTPROCEEDINGS;
THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD.
THEPANELOF ARBITRATORS WILLTYPICALLYINCLUDEA MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATEDWITHTHESECURITIESINDUSTRY.
THERULESOFSOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. INSOMECASES,A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT.
THERULESOFTHEARBITRATIONFORUMINWHICHTHECLAIMISFILED,ANDANYAMENDMENTS THERETO, SHALLBEINCORPORATEDINTOTHIS AGREEMENT..
Subjecttotheabovedisclosures,Clientagreesthat any and all controversies that may arise between or amongClientandNCSand/orIAR concerning Client's Account, any transaction or construction, performanceorbreachofthisoranyotheragreement between Client and NCS and/or IAR, whether entered into prior, or subsequent to the date hereof, will be decided by arbitration. Any arbitration under thisAgreementwillbedecidedbeforetheFINRA in accordance with FINRA rules. Judgment on arbitration awards may be entered in any court, state or federal, having jurisdiction. Notwithstanding the foregoing, no person will bring a putative or certified class action to arbitration, nor seek to enforce any pre-disputearbitrationagreementagainstanyperson who has initiated in a court a putative class action, whoisamemberoftheputativeclass who has not opted out of the class with respect to any claims encompassed by the putative class action until (a) the class certification is denied; (b) the class is decertified;or(c)Clientisexcludedfrom theclassbythecourt. Suchforbearancetoenforcean agreementtoarbitratewillnotconstituteawaiverof anyrightunderthisAgreementexcepttotheextent stated in this Agreement.
K.NOTICES
All written notices to any party under this Agreement shall be sent to such party by first class mail or facsimile transmission at NCS's address set forth below, and the Client's address as set forth on the SignaturePagehereof,orsuchotheraddressassuchparty may designate in writing to the other: Newport Coast Securities, Inc., 18872 MacArthur Blvd. First Floor Irvine, CA 92612, Phone: (800) 992-5592.
L.AUTHORITY
BysigningthisAgreement,ClientrepresentstoNCS and IAR that Client has the legal authority and capacity to hire NCS and IAR to manage the assets in Client's Account.
M.RETIREMENT or EMPLOYEE BENEFIT PLAN ACCOUNTS
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Notwithstanding anything herein to the contrary, this Section VIII applies if the account is for (a) a pensionorotheremployeebenefitplan(including a 401(k) plan) governed by the Employee Retirement IncomeSecurityActof1974,asamended(“ERISA”);(b)atax-qualifiedretirementplan(includinga Keoghplan)undersection401(a)oftheInternalRevenue Code of 1986, as amended (the “Code”), and not covered by ERISA; or (c) an individual retirement account (“IRA”) under Section 408 of the Code.
1.AdvisoryservicesmaybeprovidedtoaClientsubjecttoERISAatthesolediscretionofNCSand the IAR must be specifically authorized to provide such services by NCS.
2. If the account is for a plan subject to ERISA:
a.ClientappointsNCSand/orIARwhoaccepttheirappointment,asan“investmentmanager” forpurposesofERISAandtheCode,andboth NCS and IAR acknowledge that they are a “fiduciary”withinthemeaningofSection3(21)ofERISAandSection4975(e)(3)ofthe Code. NCS represents that it is registered as an investment adviser under the Advisers Act.
b.Clientwillnotincurcertainchargeswhichmaybeimposedbythirdpartiesinconnection withinvestmentsmadethroughtheNCSaccount,includingbutnotlimitedtomutualfunds
12b-1 distribution fees.
3.Client represents that NCS and/or IAR has been furnished true and complete copies of all documentsestablishingandgoverningtheplanandevidencing Client’s authority to retain NCS and/orIAR. ClientwillfurnishpromptlytoNCSand/orIARanyamendmentstotheplan,and Clientagreesthat,ifanyamendmentaffectsthe rights or obligations of NCS and/or IAR, such amendments will be binding on NCS and/or IAR whenagreed to by NCS and IAR in writing. If the accountcontainsonlyapartoftheassetsofthe plan,ClientunderstandsthatNCSand/orIARwill havenoresponsibilityforthediversificationofall of the plan’s investments, and that NCS and IAR willhavenoduty,responsibilityorliabilityforclientassetsthatarenotintheaccount. IfERISA orotherapplicablelawrequiresbondingwithrespect totheassetsintheaccount,Clientwillobtain and maintain at its expense bonding that satisfies this requirement and covers NCS and IAR.
4.InaccordancewithPTE86-128,asadoptedbytheDepartmentofLabor,NCSandwill sendto Clientthefollowingreportsregardingalltrades:(i)aquarterlyreportdisclosingthetotalamount of transaction related charges that are retained by NCS and the total amount of transaction related chargespaidtootherpersons,ifany,(ii)anannual report disclosing the total amount of transaction relatedcharges,thetotalamountoftransactionrelated charges that are retained by NCS and paid to otherpersons,adescriptionofbrokerageplacementpracticesiftheyhavemateriallychanged duringtherelevantyear,andtheportfolioturnover ratio for the account computed in accordance withPTE86-128.Clientacknowledgesandrepresentsthat, not more than three months before the datehereof,Clienthasreceivedcopiesof(i)PTE86-128;(ii)theterminationform attached hereto asScheduleB;and(iii)anyotherinformationthat Clientreasonablybelievestobenecessaryto determine whether to authorize the securities transactions contemplated by Section I.
5.ProxyVoting. TheClientagreesthatNCSand/orIARwillnotvoteorgiveanyadviceabouthow tovoteproxiesforsecuritiesheldintheAccount. If the Account is for a pension or other employee benefit plan governed by ERISA, Client directs NCS and/or IAR not to vote proxies for securities heldintheAccountbecausetherighttovotesuchproxieshasbeenexpresslyreservedto(check one - ERISA accounts only):
The Plan’s trustees, or
The following fiduciary.