Automatic Cash Investment Service Sweep Choices


Stifel Insured Bank Deposit Program:

Through the Stifel Insured Bank Deposit Program (the “Program”), available cash in a securities account (“Securities Account”) at Stifel, Nicolaus & Company, Incorporated (“Stifel,” “we,” or “us”) will be deposited into interest-bearing deposit accounts (the “Deposit Accounts”) at up to 10 or more banks insured by the Federal Deposit Insurance Corporation (“FDIC”) as set forth in the Priority List (each a “Bank”). The Program seeks to make available up to $2.5 million (or $5 million for Joint Accounts) as defined in the Program’s Disclosure Statement. One or more of the Banks on the Priority Lists will be affiliated with Stifel (the “Affiliated Banks”), and may include Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, N.A., and such other Affiliated Banks as may be added to the Priority Lists from time to time.

Stifel will act as your agent and custodian in establishing and maintaining the Deposit Accounts at each Bank. Although the Deposit Accounts are obligations of the Banks and not Stifel, you will not have a direct relationship with the Banks. All deposits and withdrawals will be made by Stifel on your behalf. Information about your Deposit Accounts may be obtained from Stifel, not the Banks.

The deposit insurance limit for most insurable capacities (e.g., individual, joint, etc.) is $250,000 per owner, including principal and accrued interest per depositor when aggregated with all other deposits held in the same insurable capacity at a Bank. For example, funds in the Deposit Accounts at a Bank held by an individual are insured up to $250,000, and funds in the Deposit Accounts at a Bank held jointly by two or more individuals are insured up to $250,000 per joint owner.

Stifel will place up to $246,500 ($493,000 for Joint Accounts of two or more individuals) (the “Deposit Limit”) of your available cash in each Bank on the Priority Lists, irrespective of the number of Securities Accounts that you hold in the same insurable capacity subject to linking, as described below. Once funds equal to the Deposit Limit have been deposited for you through the Program in each Bank on the Priority Lists, any additional funds will be deposited in Deposit Accounts at a designated “Excess Bank,” which will accept funds without limitation and without regard to the FDIC insurance limit.

Any deposits (including certificates of deposit) that you maintain in the same insurable capacity directly with a Bank or through an intermediary (such as Stifel or another broker), regardless of the number of Securities Accounts, will be aggregated with funds in your Deposit Accounts at the Bank for purposes of the FDIC insurance limit. You are responsible for monitoring the total amount of deposits that you have with each Bank, including an Excess Bank, in order to determine the extent of FDIC insurance coverage available to you

Funds maintained in the Deposit Accounts at the Banks are not eligible for coverage by the Securities Investor Protection Corporation (“SIPC”). More information regarding the SIPC can be found in the Program’s Disclosure Statement.

To assist you in attempting to avoid having more than the FDIC insurance limit in the Deposit Accounts at any one Bank in one insurable capacity, at your request, we will link Securities Accounts held by you in the same insurable capacity for purposes of the Deposit Limit at each Bank on the Priority Lists. As a result, if you have Securities Accounts that have been linked for purposes of the Program, the aggregate funds from those linked Securities Accounts deposited at one Bank through the Program will not exceed the Deposit Limit. You may at any time ask your Financial Advisor to identify the Securities Accounts that we have linked, and you may direct us to link Securities Accounts that have not been linked. In any event, it remains at all times your obligation to monitor the total amount of your deposits at any one Bank for purposes of ensuring FDIC coverage for your funds, particularly since you may have other deposits at a particular Bank of which we are unaware.

Interest rates on the Deposit Accounts will be tiered based on the balances in the Deposit Accounts in the Program held through a single Securities Account (“Interest Rate Tiers”). This means that the greater your balances in the Deposit Accounts in the Program held through a single Securities Account, the higher the rate of interest you may receive on your funds. Current interest rates are as follows:

As described above, you will not have a direct account relationship with the Banks. However, each Deposit Account constitutes an obligation of a Bank and is not directly or indirectly an obligation of Stifel. You can obtain publicly available financial information concerning each Bank at www.ffiec.gov/nic or by contacting the FDIC Public Information Center by mail at L. William Seidman Center, Virginia Square, 3501 North Fairfax Drive, Arlington, Virginia 22226 or by phone at (703) 562-2200. Stifel does not guarantee in any way the financial condition of the Banks or the accuracy of any publicly available financial information concerning such Banks.

How Compensation Is Paid to Stifel and Your Financial Advisor

All Banks, except the Affiliated Banks, will pay Stifel a fee equal to a percentage of the average daily deposit balance in your Deposit Accounts at the Bank. The fee paid to Stifel by these Banks may be as much as 3.50 percent annually on some of the Deposit Accounts. In its discretion, Stifel may reduce its fee and may vary the amount of the reductions between clients. The fee may vary from Bank to Bank. The amount of fee received by Stifel will affect the interest rate paid by the Bank on your Deposit Accounts.

Stifel receives an aggregate, annual fee of up to $100 from the Affiliated Banks on a per-Securities Account basis in connection with Securities Accounts that participate in the Program.

Your Financial Advisor is currently not receiving a fee in connection with the Program. Stifel reserves the right to pay a fee to your Financial Advisor in connection with the Program at any time without prior notice. Upon request, Stifel will provide you with information about Stifel’s compensation arrangements with respect to its sweep investments.

In addition to Stifel, other service providers will receive fees from each Bank.

Other than applicable fees imposed by Stifel on your Securities Account, there will be no charges, fees, or commissions imposed on your Securities Account with respect to the Program.

Stifel Insured Bank Deposit Program for Retirement Accounts:

Through the Stifel Insured Bank Deposit Program for Retirement Accounts (the “Program”), available cash in a securities account (“Securities Account”) of a Retirement Account (as defined in the Program’s Disclosure Statement) at Stifel, Nicolaus & Company, Incorporated (“Stifel,” “we,” or “us”) will be deposited into interest-bearing deposit accounts (the “Deposit Accounts”) at one or more banks insured by the Federal Deposit Insurance Corporation (“FDIC”) as set forth in the Priority List (each a “Bank”). Each of the Banks on the Priority Lists will be affiliated with Stifel and may include Stifel Bank & Trust, Stifel Bank, Stifel Trust Company, N.A., and such other Stifel-affiliated Banks as may be added to the Priority Lists from time to time. Please refer to the Program’s Disclosure Statement for more information.

Stifel will act as your agent and custodian in establishing and maintaining the Deposit Accounts at each Bank. Although the Deposit Accounts are obligations of the Banks and not Stifel, you will not have a direct relationship with the Banks. All deposits and withdrawals will be made by Stifel on your behalf. Information about your Deposit Accounts may be obtained from Stifel, not the Banks.

Funds on deposit at each Bank are eligible for deposit insurance from the FDIC up to $250,000 (including principal and accrued interest) per depositor in each insurable capacity (e.g., HSA, IRA, etc.) in which you hold your Securities Account in accordance with applicable FDIC rules.

Stifel will place up to $246,500 (the “Deposit Limit”) of your available cash in each Bank on the Priority Lists, irrespective of the number of Securities Accounts that you hold in the same insurable capacity subject to linking, as described below. You should note that certain types of Retirement Accounts, such as IRAs, Keogh plans, and self-directed 401(k) plans, will be aggregated for insurance purposes. Once funds equal to the Deposit Limit have been deposited for you through the Program in each Bank on the Priority Lists, any additional funds will be deposited in Deposit Accounts at a designated “Excess Bank,” which will accept funds without limitation and without regard to the FDIC insurance limit.

Any deposits (including certificates of deposit) that you maintain in the same insurable capacity directly with a Bank or through an intermediary (such as Stifel or another broker), regardless of the number of Securities Accounts, will be aggregated with funds in your Deposit Accounts at the Bank for purposes of the FDIC insurance limit. You are responsible for monitoring the total amount of deposits that you have with each Bank, including an Excess Bank, in order to determine the extent of FDIC insurance coverage available to you.

Neither Stifel nor the Banks, monitor the amount of your deposited funds to determine whether those amounts exceed the FDIC insurance limits applicable to your deposits at the Banks, and they are not responsible for any insured or uninsured portion of the Deposit Accounts at the Banks.

Funds maintained in the Deposit Accounts at the Banks are not eligible for coverage by the Securities Investor Protection Corporation (“SIPC”). More information regarding the SIPC can be found in the Program’s Disclosure Statement.

To assist you in attempting to avoid having more than the FDIC insurance limit in the Deposit Accounts at any one Bank in one insurable capacity, at your request, we will link Securities Accounts held by you in the same insurable capacity for purposes of the Deposit Limit at each Bank on the Priority Lists. As a result, if you have Securities Accounts that have been linked for purposes of the Program, the aggregate funds from those linked Securities Accounts deposited at one Bank through the Program will not exceed the Deposit Limit. You may at any time ask your Financial Advisor to identify the Securities Accounts that we have linked, and you may direct us to link Securities Accounts that have not been linked. In any event, it remains at all times your obligation to monitor the total amount of your deposits at any one Bank for purposes of ensuring FDIC coverage for your funds, particularly since you may have other deposits at a particular Bank of which we are unaware.

Interest rates on the Deposit Accounts will be tiered based on the balances in your Deposit Accounts in the Program held through a single Securities Account. This means that the greater your balances in the Deposit Accounts in the Program held through a single Securities Account, the higher the rate of interest you may receive on your funds. Current interest rates are as follows:

As described above, you will not have a direct account relationship with the Banks. However, each Deposit Account constitutes an obligation of a Bank and is not directly or indirectly an obligation of Stifel. You can obtain publicly available financial information concerning each Bank at www. ffiec.gov/nic or by contacting the FDIC Public Information Center by mail at L. William Seidman Center, Virginia Square, 3501 North Fairfax Drive, Arlington, Virginia 22226 or by phone at (703) 562-2200. Stifel does not guarantee in any way the financial condition of the Banks or the accuracy of any publicly available financial information concerning such Banks.

How Compensation Is Paid to Stifel and Your Financial Advisor

Stifel receives an aggregate, annual fee of up to $100 from the Banks on a per-Securities Account basis in connection with Securities Accounts that participate in the Program, including Retirement Accounts. Other than the fees that generally apply to your Retirement Account pursuant to your Client Agreements, your Retirement Account will not directly pay any additional charges, fees or commissions with respect to the Program.

Your Financial Advisor is currently not receiving a fee in connection with the Program. Stifel reserves the right to pay a fee to your Financial Advisor in connection with the Program at any time without prior notice. Upon request, Stifel will provide you with information about Stifel’s compensation arrangements with respect to its sweep investments.

Other than applicable fees imposed by Stifel on your Securities Account, there will be no charges, fees, or commissions imposed on your Securities Account with respect to the Program.