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HomeMy WebLinkAbout99-06232 CHARLES SCHWAB & CO., INC. Plaintiff V. BRIAN SHEAFFER, Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION LAW :NO. 99- 4?1;,_.CIVIL TERM ORDER OF Q AND NOW, this day of 1999, upon consideration of Plaintiffs Petition to Confirm Arbitration Award, and it appearing that the application has been made more than thirty (30) days after the award is made by the Arbitrator in this case and pursuant to the Judicial Code 42 Pa.C.S.A. §7342 it is hereby ordered that the award of the Arbitrator is confirmed and the Prothonotary of Cumberland County shall enter a judgment in conformity with the Order upon Praecipe of the Plaintiff. BY THE COURT, OF ?- FILED-of ::ICE OTARY 99 OCT 18 AN 11: 42 PENNGMAj? Ili p r A. ,, CHARLES SCHWAB & CO., INC. Plaintiff V. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION LAW BRIAN SHEAFFER, : NO. 99- CIVIL TERM Defendant PETITION TO CONFIRM ARBITRATION AWARD TO THE HONORABLE JUDGES OF THE SAID COURT: NOW COMES the Plaintiff, Charles Schwab & Co., Inc., ("Plaintiff' or "Schwab"), by and through its attorneys, Turo Law Offices and pursuant to 42 Pa. Cons. Stat. Ann. §§7301 at. seq., respectfully applies to this Court for an Order confirming the arbitration award of a NASD Regulation, Inc., Office of Dispute Resolution ("NASD") arbitrator in the case of Charles Schwab & Co., Inc., and Brian Sheaffer (NASD Case No. 98-02728), and requests this Court to enter judgment in favor of Schwab and against the Defendant, Brian Sheaffer ("Defendant" or "Shaeffer"), for the principal sum of Nine Thousand Eight Hundred Sixteen Dollars and 25/100 ($9,816.25), plus interest and costs. In support thereof, Schwab states as follows: 1. Plaintiff, a California corporation, is a broker-dealer in securities with Its principal place of business located in San Francisco, California. Schwab maintains a registered office in Harrisburg, Pennsylvania. 2. Defendant is an individual resident of 91 Princess Boulevard, Mechanicsburg, Cumberland County, Pennsylvania 17055 or 10 Hines Drive, East Berlin, Adams County, Pennsylvania 17316. 3. On or about January 21, 1993, Shaeffer opened an account with Schwab, Account number HG 8074-5886 (the "Account"). 4. On or about July 28, 1998, Schwab initiated arbitration proceedings with the NASD against Sheaffer. In Its Statement of Claim filed with the NASD, Schwab alleged that: a. In connection with the opening of the Account with Schwab, Sheaffer executed a Schwab One Account Application and a Schwab Option Trading Application to trade on margin. Pursuant to the Schwab One Account Application, Sheaffer agreed to be bound by the Brokerage Account Agreement (the "Agreement"). Pursuant to the terms of the Agreement, Sheaffer agreed to settle by arbitration any controversy with Schwab relating to, among other things, the Agreement, or transactions in the Account. (Copies of the Schwab One Account Application, Schwab Option Trading Application and the Agreement are attached hereto and marked as Exhibit A). b. From January 1995 through October 1995, Sheaffer entered into various transactions in his margin Account, including the purchase and sale of various stocks. Throughout these months, Sheaffer borrowed funds from Schwab to pay for these trades. (Copies of the January 1995 through October 1995 Account statements are attached hereto as Exhibit B.) C. During November 1995, Sheaffer again entered into various transactions in his Account. As a result of the November 1995 transactions, at the end of that month, there was a net debit balance of $92,671.76 in the Account, and the value of the securities positions in the Account was $132,675.00. (A copy of the November 1995 Account Statement is attached hereto as Exhibit C.) d. During December 1995, Sheaffer again entered into various transactions in his Account. As a result of the November and December 1995 transactions, Shaeffer was required to deposit additional funds to cover margin maintenance requirements. Schwab notified Sheaffer that he needed to deposit additional funds into the Account by forwarding to him confirmations of his trades, listing the amounts due, as well as margin call(s) relating to the deficiency in his Account. Although Schwab was required to deposit additional funds into the 4%' , . ?) Account to meet margin maintenance requirements resulting from the November and December 1995 transactions, he failed to do so. Accordingly, Schwab was forced to liquidate the remaining positions in Shaeffer's Account, leaving an unsecured debit balance of $9,216.05 in the Account. (A copy of the December 1995 Account statement is attached hereto as Exhibit D.) 5. The NASD arbitrator, having considered the pleadings and the evidence submitted, and having determined that Sheaffer was properly served with notice of the Statement of Claim, entered an award in Schwab's favor on February 3, 1999 (the "Arbitration Award"). The Arbitration Award provides that Shaeffer shall pay Schwab $9,216.05, $575.00 as reimbursement of the filing fee and $25.20 in other costs. (A copy of the NASD arbitration award served upon the parties on 02/0811999 Is attached hereto and marked as Exhibit E.) 6. Pursuant to Rule 10330(h) of the NASD Code of Arbitration Procedure (the "Code"), all monetary awards shall be paid within thirty days of receipt unless a motion to vacate has been filed with a court of competent jurisdiction. (A copy of NASD Rule 10330(h) is attached hereto and marked as Exhibit F.) 7. Pursuant to Section 7313 of the Pennsylvania Uniform Arbitration Act ("Act"), the Court, upon application, shall confirm an arbitration award, unless within the time limits imposed by the Act, grounds are urged for vacating, modifying or correcting the award. 42 PA Cons. Stat. Ann. §7313. 8. Shaeffer has not sought to vacate, modify or correct the Arbitration Award pursuant to Rule 10330(h) of the NASD Code nor pursuant to the applicable provisions of the Pennsylvania Uniform Arbitration Act. 9. In accordance with Section 7313 of the Pennsylvania Uniform Arbitration Act, Schwab requests that the Court confirm the Arbitration Award and enter judgment in its favor and against Sheaffer in the amount prayed for below. A, ., WHEREFORE, Schwab, Charles Schwab & Co„ Inc., respectfully requests that this Court grant the following. A. Confirm the Arbitration Award previously entered in favor of Charles Schwab & Co., Inc. and against Shaeffer. B. Enter judgment for the principal sum of $9,816.25, Interest at the legal rate In Pennsylvania of 6% per annum ($1.61 per day) from February 3, 1999 until paid In full, plus reimbursement for costs Incurred by Schwab in bringing this action; and such other and further relief as this Court deems just and equitable. Respectfully Submitted TURO LAW OFFICES /o 114 99 Date Ron Turo, Esquire 32 South Bedford Street Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiff ATTORNEY FOR PLAINTIFF, CHARLES SCHWAB & CO., INC. A, ,, I hereby certify that I served a true and correct copy of the Petition to Confirm Arbitration Award upon Brian Shaeffer, by depositing same in the United States Mail, first class, postage pre-paid on the _/.L day of QC)- , 1999, from Carlisle, Pennsylvania, addressed as follows: Brian Shaeffer 91 Princess Boulevard Mechanicsburg, PA 17055 Brian Shaeffer 10 Hines Drive East Berlin, PA 17316 TU b LAW OFFICE k__? Ron Turo, Esquire 32 South Bedford Street Carlisle, PA 17013. (717)245.9688 Attorney for Plaintiff A6 t ;? 4 ' IA?" , _ ?-?;. ? .`,: Schwab One* Account .To M 1b To open your Schwab One account just complete and sign sections 1, 2. 3, 6 and 7 of this application. ALSO: II you would like checks and/or a VISA' debit card, fill out and sign Sections 4 and 5. The minimum Initial deposit required Is $5,000 In cash, marginable securities, or a combination at ash and marglnable securities. It 1 Y Jr V o u a -a Even if you currently have a Schwab Brokerage accoun(,7ve bled you to complete all sections of this application. 00 you currently have a Schwab Brokerage account? ? Yet No II yet, we will convert your Schwab Brokerage account to a Schwab One iccourd, What Is your Schwab Brokerage account number? I I (Please note, IRA and Keogh accounts annot be convened to a Schwab One account.) Indicate the type of registration you want on your Schwab One account: Individual ? Joint Tenants with Right of Survivorship ? Adding a Joint Party tle?k ? Community Property' ? Tenants in Common ? Other' ftw? 'Contact your local Schwab branch orrice to obtain adaiLOnal documems that must aceomp" mla application. Certain rntricmom R" aDDrr. Please tell us how your name and address should an your account ......- _I H-{ s r _ I . Where would you like us to send your mall? ?V?"' Home n '.J Builness ? P.O. Box K&.0%"uwmom Lent,?r6.r??4L??zrr Cath Account Handling Instructions. Schwab will automatically hold for your account - tree of charge - an of your securities purchased, sales proceeds. dividend and interest. 0 Schwab One taxable interest Schwab Tax-Exempt Fund ? Schwab California Tu•Free Monty Fund rw crwx "Idm wvi Unless otherwise mdlaled you will earn Schwab One U1130111 Interest. If you select a Schwab Money FuncLa prosoeavs will be sMittdyctl promptly. Please read It carefully. If you wish to change your investment Instructions, please ap your Schwab branci t office. Pleete turn page and toedese... FUR CHAT ES SCHWAB USE ONLY 0 NYSE 407 ? SEC 144 C3 NNRA = AKA :: CRS EMPL Char6Schwab 11 X152-n iHIGI-?8Io?'11-4 - 5 8 8 7 ?•••• ? I L r'11?1 'G I YFJ ?? ?? I 2? •111 O?.n aG.MaM MYA. a'a raw onN MI ?Accoent Holder .. .- -, ti;ii.rt?41!11 Mea1wM?Oar1Mr Olsrn ?- I ? f e n ? tRf/r111wr m o 11 ? -'( Tp?la?apa PA a.Irrrlq ?lw+-/?^` fa'/Ir1 7>,41 7701 3 I awwrW V7 / _f t acfil .. rrgarum. or OS-4 -USA o3 I?,r,e.r. M /w aw err /1ti 0wr arrr rlaa wr t.r -1 , • Joint Account Holder IP4WA fa NIMAwl fu llvM?9Mr arlr/r1 ? 4w1.w rn rwlwwr lnww INn IM..111 d r. W 1Mf 1 tw TM a owr/r(MAIO ._-. 1++. r1Y h.Ya. N.Ow MlA alrrl h M Clew .r1111rY . Check H you firs: O ftem r :. ` O ddanawnlt IY : A : O safwsalnrtara a O Ibrrllau: Check It you are: O e1lka0 ¦ ? 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Indicate the names that should appear on the card. "°a""°""-I- Ililllliilll!II?III •?„_,ofN_;deDaurC1C.. •hirAti?outtiHoldrri ?1 '.(]2 '? I? ?.??.? 1 1 1 1 1 1 r ?r r>i WfA>k?DeliwidmdaCktA?Oo prr Pitta of tun to sign for that services on tat 1 1 t?}, Y pill.., PMne hart1tth t!'s following ullormltmn to nelo us Identity your Investment noeos. For joint accounts, oleate provme housienold Information. tA4Me4abrM1Yl14 Ie4Ky Ilte4l 41 vKm 4 melar141il" I"If' t04Mla r'+r.'?r '? 1St ? IIOr. Msr 710 SI% lr+wa Cana U O9et __? I lrtl"Itn Aegwts at soot erostrsge thins: l own neCT , u 1 c ? 'M10r1411te.tllll 41111 Mt/41K lillN 111eM04' 0 'UM ? UMOp IIS 000 ? lMlr {Il OC9 `..y U^x00 ? 11SWO&OS71999 ": SISOOOlona999 r>rCxa C trend" ?:I? 1'7s OXIOU4971 O0O1011a 979 SO 171.000 10 H99" ?2' 150 OOp to 111999 . . ? {7s 000ro1M.971' S1 motos"m 13 SIOOOOOve"ll .. 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IRA account transfer %arm (IRT) ? : e bnai?u'e?Muiiq'enieMllxouni ?'Imesling through personal computers (EOI) ? h{irtliat I have an: ? Catttlleatei of D posn (CDS) ? IBM ? j Tntst Bto)Arje Sehicek (TST) ? Apple ? Estate Distribution (EST) E Other ? Designated Beneficiary Plan (OBP) Are you curtenuy using a modem unr?......ca.uwroeea . ? Y ? ? . es No U.S. TreasurySeturitle! (TRE) ? Telell oker- - touch-tone trading (TELI ? Corporate Bonds (COR) b 6 SCHWAB OPTION TRADING APPLICATION .:..:....: y, MR CWLES S "As USE DULY FEharE= iesSC}Tr b U Oh yl ..-w81Fl i'/.?a.r.?.rr....rr...: c?gS?'•'KT1YM12vv/Jl.,??. ..i•'. ?. ..rn??.uww1 ?; •w--vi..:il'!?•t`I.17'HI? NQ In yw.taYltwglyAwl '1 Cbsmlft40110 Olt fee I' Moaomen m Vl:•OVJrn gtoR nr Yon1r;„yt!WSWZp WV OrWNvG e; Ya'r !•raW roYIOrlt V Inn r1 o nand WO.4ors a Aa um. .. .., aIOr You( 1tteu4n6•?t. unLNL•aWntore 0VIf11M1 and CaJ1GOnf Lr. 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'`: ._.• .:;.'.ry G:f.r. ^CY.hq;iC i CharlesSchwab Brokerage fi Account Agreement Fffeave Nmmber 1,1990 ?FEB 2 0 1992 Va. RR DA„nsll . r ?J. /.? 7..7,'{ r• _ .0'1797 1"41um'fJM?MM1fl?lWr?YtO W ft MC. NfalOl?q q"Ma q„t{NIIWa ?M? Information About Your . Schwab Brokerage Account . Schwab Money Fund Agreement Chade,l""Jb CONTENTS Introduction ...................... 1 Definitions ....................... 1 Questions ........................ 2 Cash Account Agreement ........... 2 1. Ptoviaioc of Serric s ............ 2 2. Commis dom and Fees ........... 2 3. Rules and Regulations ........... 3 4. Payment. 5. Paymentof Indebtedness......... 4 6.Seatftyfortndebtednesi ........ 4 ................... 7 Remittance 4 &Your RespoMIXT yConceming the Sale of C &da Restricted Securities ............ 4 9. Your Responsibiity for UnderstandiogThmsofSecurities . 5 10. Aoamacy of Acoount Information • .. 5 1LJointAcmunts ................. 6 12.1btminatlmt ................... 6 13. Approval of Application, Credit Vetifiation, and Account Information ......... 7 14. Governing Law ................ 7 15. Assignment ................... 7 16. Arbitration .................... 7 17. Losses Due to Extraordinary Events............ 8 1& Provision of Market Data ........ . 8 19. Order Entry Services ........... . 9 20. Notification .................. .10 21. Telephone Monitoring .......... .10 22. Separability .................. .10 23. Entire Agreement. Amendment, and Waiver ........ .10 24. Release of Name .............. . 11 Margin and Short Account Agreement ......... .11 1. Provision of Services ........... .11 2. Disclosure of CreditTerms and Policies .................. .11 3. Maintenance of Ulatrnl ........11 4. Uquidation .................. .12 w: -i :hanve.•ei 5. Short Sales .................... 12 6. Interest on Debit Balances ........ 13 7. Pledgeof Securities and Other Property ............. 13 8. Loan Consent .................. 13 9. Account Agreement ............. 13 Disclosure of Credit Terms and Polices ...................... 14 L Interest Charges ..... .......... 14 2. Daily Margin Interest Rate ....... 14 3. Compounding of Interest Charges .. 15 4. Initial Margin Requirements ...... 15 5. Margin Maintenance Requirements. 16 6. ShatOption Positions ........... 17 7. Short Sales .................... 17 8.Uensand Uquidation ........... 18 Schwab Money Fund Agreement ..... 19 1. Minimurn Requited Investment .... 20 2. Automatic Investment ........... 20 3. Nature of Investment and SIPC Protection ................ 21 4. Redemption ................... 21 5. Confirmations and Statements ..... 22 6. Limitation of Liability ........... 22 7. Fund Features ................. 22 8. Continuing Effect of Authorization; Termination....... 23 9. Account Agreement ............. 23 SCHWAB BROKERAGE ACCOUNT AGREEMENT INTRODUCTION This publication contains important terms and conditions that apply to Schwab brokerage amounts and services Please read this pub8- cation carefully and retain itforfuttuerefecmce, Definitions As used in the AmountAg these tens ate defined as follows: • a submit t OOppenpB tokeratt Aaao mmL ym • "Account Agreement"-The agreement you snake with Us when you open a Brokerage coadsting of theAomunt?°?' the Cash A mount Money ?? ? Matgtn and Shat Account Agreenotsit; th the Disdc sure of Credit Tema and Polices; the Option Agreement; and any other written agreements between you and us concerting the Brokerage Account. all as amended from time to time. • "Brokerage Account"-The Cash Acmunt and Margin and Short Account feature if any, opened in your name • "Business day"-Monday through Friday, excluding stock exchange holidays. (Although our offices may be open on certain bank hoG• days, these days aren't conddered business days for Purposes relating to the transfer of funds) • "Cash Account."-The basic brokerage account we offer. • "Debit balance"-An amount balance repre- senting money owed us. • "Good delivery"-The delivery to us of freely transferable seauities (that is, properly reg. istered, endorsed, and fully negotiable stock certificates). • "Long sale"-The sale of a security that you own. • "Margin and Short Account feature"-Adding this feature to your Brokerage Account allows you to borrow funds from Schwab using accept. able securities or cash as collateral for the loan. You must have this feature to snake short sale transactions or to trade options. • "Other Property"-Moncy, instruments (including certificates of deposit and other financial instruments). and any other property or rights • "SeveUtiee-Severities of any kind and nature, including those you may deposit or redeposit with us for any reason (including safekeeping). aS well as unmtificated securities, such as money market fund shares. • "Short sale"-The sale of a security you don't own at the time the order is placed. • M dose any or all torwumction"-1b complete or liquidate any or all unsettled b madions; to cancel open orders; to sell any or all long Securities and Other Property, including options; to buy any or all securities and Other property that are short in the Brokerage Account or required for delivery against any sale orderor other obligation; and to purchase option contracts to dose any outstanding short com Iositions- • -You'r" yote/waocount holder'-Each person who sign the Account Application. • "We /.us7roUr"/-SC hwaV_Charles Schwab & Co., Inc Questions If you have question about the information contained in this publication or any of our products and services, please contact your branch office. CASH ACCOUNT AGREEMENT :C:MrX,.y:ii{ 1. Provision or Services To open a Cash Account, You Complete an Account Application. When we approve your Account Application. we'll open a Cash Account for you and act as your broker to purchase and sell seventies for your account and on your instructions. With our approval, you may elect to add a Margin and Short Account feature and trade options in your Brokerage Account. It is our policy not to give legal or tax advice or advise you about the nature or potential value of any particular security, transaction. or invest- ment strategy. 2. Commissions aad Fees You agree to pay our brokerage commissions and fees, as they exist from time to time and apply to your u mactiom and services you receive. You also agree to pay all applicable state and local excise taxes. 3. Rules and Regulations Your Brokerage Account and any transactions you make are sub- ject to our house trading rules and policies and the following rules, regulations, and policies, all as modified or amended from time to time: • Applicable rules, regulations, autams and usages of any exchanm trozooket. clewing self-regtdatoryommimRioa. bouse. • Applicable federal and state laws, rules, and regulatiorm 4. Payment. Equity Deposit, settlement. and Liquidation When you purchaseseamities on a cash basis, you agree to pay for the secur, ities by settlement day. Unless you make Other arrangements with your branch, we may use avaailable funds in your Brokerage Aooountto settle a transaction. We tray require an equity deposit or full pay- ment before we accept your order. When you sell long securities, you must own the securities when you place the order. You also agree to make good delivery of the securities ycere selling by settlement day. For our protection or to satisfy your obligation to us, we may, at our discretion and with- out prior demand or notice, sell or otherwise liquidate all or any part of the Securities and Other Property securing your obligations or close any or all tramaetion in your Brokerage Aooount. For intanm it you don't make good delivery of your securities when making a sale. or if you don't tender the total purchase price when mak- ing a purchase, we may take appropriate steps to complete, cancel, or liquidate the transaction. This may include purchasing or borrowing the securities necessary to make the delivery. You are responsible for costs. commissions. and losses arising from any anions we must take to liquidate or dose transaction in your Brokerage Account or from your failure to make timely good delivery of securities. We may transfer Securities and Other Property from any one of your brokerage accounts to any other of your brokerage amounts in order to satisfy deficiencies in any such account, or if we :,nnen?cii think your obligations in any such account aren't adequately secured. For our protection against credit risks and other conditioru, we may, without prior notice, decline your orders or instructions, or we may Place trading restrictions on your aooounL If we hold for you bonds or preferred stock in street name or bearer form that am cailable in part You agree to parddpate in an impartial sttery alioation system of the celled seauidm tie rules of the New York Stock S. Payment of Indebtedness We may elect at any time, with or without notice, to make any debit balance or other obligation related to Your Brokerage Account immediately due and payable. We also may charge interest on debit balances in your Cash Account as described in the D'usclosum of Credit Terms and Policies (see pages 14.19). 6. Security for Indebtedness As security for the repayment of ail present or future Indebtedness owed to us by any account holder under the Account Agreement or otherwise. each account holder grants us a continuing security interest and lien in, and a right of set-off with respect to, all Securities and Other Property that are, now or in the future, held, carried, or main. tained for any purpose in or through the Brokerage Account and, to the extent of such account holderk interest, any present or future brokerage account with us in which such an account holder has an interest. 7. Remittance If a check or other item you remit to us is returned unpaid, we'll charge a fee to your Brokerage Account. For our protection, we may restrict your ability to withdraw funds represented by a check or other item or to apply such funds to settle a securities transaction. For more detailed information about our cheek hold policy, please contact you branch office. 8. Your Responsibility Concerning the Sale of Control or Restricted Securities Before instructing us to sell securities that are: • "Restricted securities" or securities of an issuer of which you're an "affiliate" (as those terms are defined in Rule 144 under the Securities Act of 1933); or • Securities that are being sold in reliance on Rule 145(d) under such Act; you agree to tell us the status of such securities and promptly furnish whatever Wormatton and documents (includingopWons of your legal counsel, if requested) that we need to comply with our rgM&tory duties. You agree not to tender any such securities as collateral for an obligation you owe us, unless you fast obtain our written consent '9. Your Responsibility for Understanding 7brms of Securities Certain secuities may impart valuable rights that expire unless you take some action. For example: • Warrants and stock purchase rights typically may be exedsed only on or before a specified expiration date; • Some convertible redeemable securities will be redeemed automatically unless you exendse your conversion rights before a specified redemption date; • Some bonds may be redeemed, at the holder's option, only during specified periods; or • Some securities may become the subject of tender or exchange offers, which are limited in time. You're responsible for knowing the rights and terms of your securities and for taking action to realize the value of your securities. However; if. • Any such security is about to expire worthless ore be redeemed for significantly less than its fair market value; and • We haven't received instructions from you; we may, at our discretion, sell the security and credit your account with the proceeds. You91 be charged a brokerage commission for any such transaction. Note: Although we may take the actions described above, we aren't obligated to do so or to notify you of impending expiration or redemption dates. 10. Accuracy of Account Information You represent and warrant that: .:bftN!wnsu • You have attained the age of majority. • You have supplied accurate information in your Account Application. • No one, except the account holders listed on the Account Application (and, if community M petty is held, the account holders' spouses). an interestin the Brokerage Account. In addition, you agree to notify us in writing of any important change in the information you supply us on the Amount Application. In partic- ular, you agree to notify us if you are or you became: • A diream 10% beneficial shareholder. policy- malting offroer, or otherwise an "affiliate" (as defined in Rule 144 under the Securities Act of 1933) of a publidy-traded company. or • Affiliated with or employed by a securities exchange or corporation controlled by a securi- ties exchange or a member of a securities exchange, securities firm bank, trust company, or insurance company. 11. Joint Accounts If there is more than one account holder, each account holder is jointly and severally liable for obligations arising under the Account Agreement or relating to the Brokerage Account Each joint account holder has authority, acting individually and without notice to any other account holder, to deal with us as fully and com• Pletely as if the account holder is the sole amount kidder. We're authorized to follow the instructions of any joint account holder and to deliver funds. securities, or other assets in the Brokerage Account to any account holder or on any account holders instructions. Were not responsible for detetminingthe purpose or propriety of an irutruc• lion we receive from any account holder or for the disposition of payments or deliveries among joint account holders. Any notice we send to one account holder will be notice to all account holders. 12. Termination You may dose your Brokerage Account at any time by giving us notice. We may terminate any or all services rendered under the Account Agreement at any time and for any reason. Closing an account or terminating services won't affect rights and obligations incurred prior to closure or termination. 13. Approval of Application, Credit Verifl. cation, andAcmunt information TheAoeount Agreement is effective only after we approve your Account Application. We may decline your Account Appl ication for any reason. When you submit your Account Application, you authorize us to: • Vaifyyouraeditworthiness(and yourapouse's if you five in a cotmuunity ptopesty state). To obtain verification. we may contact your employer (and your spouse's, If applicable), obtain credit reports, and make other inquiries. • Provide aomtmtinformation toothers, including credit repotting agencies. 14. Governing Law The Amount Agreement is governed by California law and applicable federal law, as applied to contracts entered into and completely performed within California. 15. Assignment We may assign our rights and obligations under the Amount Agreement to any subsidiary, affiliate. or suoctssor by merger or consolidation without notice to you, or to any other entity after 30 days' written notice to you. The Amount Agreement is binding on your and our heirs, executors, administrators, sumes• sors, and assigns, and it will benefit your and our successors and assigns, if any. 16. Arbitration Regulatory authorities require that any brokerage agreement con- taining a pre-dispute arbitration agreement must disclose the following: (1) Arbitration is final and binding on the parties. (2) The parties are waiving their right to seek remedies in court, including the right to jury trial. (3) Prtarbitration discovery is generally more limited than and different from court proceedings. (4) The arbitrators' award is not requited to include factual findings or legal ma- soning and any party's right to appeal or to seek modification of rulings by the arbitrators is strictly limited. (5) The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the sccuri- ties industry. You agree to settle by.arbitration any controversy between you and us andlorany of our officers, directors, employees, or agents relating to the Account Agreement, your Brokerage Aceount oraceount trans- actions,orin way arising from your relationship wi%us. Such arbitration will be conducted according to the securities arbitration rules then is effect of the American Arbitration Association, the National Association of Securities Dealers, or any registered national securities exchange. Either of us may initiate arbitm- tion by serving ormailfag a written notice. The notice must specify which rules will apply to the arbitration. This apecificatioa will be binding on both of uL Any award the arbitrator makes will he final, and judg- meat on it may be entered In any court having jurisdiction. This arbitration provision shall be enforced and interpreted exclusively in accordance with applicable federal law, including the Federal Arbitration Act. 17. Losses Due to Extraordinary Events We aren't responsible for losses caused directly or indirectly by conditions beyond our control, indud• ing, but not limited to, war, natural disasters, government restrictions, exchange or market nil. ings, strrilms, interruptions of communications or data processing services, or disruptions in orderly trading on any exchange or market. 18. Provision of Market Data We may convey to you through telephone, electronic, or other means last sale transaction data, bid and asked quotations, and other information relating to securities and the scauities markets (collectively referred to in this section as "market data"). We may charge a fee for providing this market data. We obtain market data from securities exchanges and markets and from parties that transmit mar. ket data (collectively referred to in this section as "the market data providers"). All market data is protected by copyright laws. We provide market data for your personal non-commercial use: you may not sell, market, or redistribute it in any way, unless you've entered into written agreements with the appropriate market data providers. We receive the market data from industry sources that are believed to be reliable. However, the aayracy, completeness, timeliness, or correct sequencing of the market data can't be guaran. teed either by us or the market data pproviders. Neither we nor the maric et data providers will be liable for interruptions in the availability of rnarket data or pots access to market data. The market data is provided "as is" and on an "as available" baais.There is no warranty of any triad, express or implied, regarding the anrioet data. 19. Order Entry Services From time to time, we may make available services (retested to in this section as "the services") thatallow you to use telephone, elerlronir, or other means to place orders and obtain market data and otherinfosma• tion. The services may require you to use a number or passwad to access your Brokerage Account. You're responsible for the confidentiality and use of yotratness numben password, and account number, and for all securities and other trans. actions initiated through these means. Any orders communicated to us through these means will be considered to have been sent by you. You also agree to notify us immediately it you: • Become aware of any loss, theft, or unauthorized use of your so= number, password, or account number, or any unauthorized use of the services or the market data. • Fail to receive a message that an order you initiated through the services has been received or executed. • Fail to receive an accurate written confirmation of an order or its execution. • Receive confirmation of an order that you didn't place. You agree to pay all subscription. service. and use fees, if any, that we charge for the services. We may treat such fees as a debit to your Bro- kerage Account and deduct the amount of these fees from any credit balance in your account. ::ens Altematively you authorize us to charge such fees to a credit card account number that you've provided to us for this purpose. We won't be liable for lost profits, trading losses, or other damages resulting from the delay or loss of use of theaervices or from defective or unavailable market data. In any case, our liability arising from any legal clalm(whether incontract, tort,orotherwise) relating to the services or market data won't exceed the amount you've paid for use of the services ormarket data 20. Notification Well send communications to you at the mailing address shown on your Account Application or to another address you specify. Any ox mtuttiotion we send to such an address, whether by mail, telegraph, messenger, or otherwise, is considered delivered to you personally, whetheror not you actually receive it. 2L Telephone Monitoring We may record telephone calls to monitor the quality of service you receive and to verify securities transaction information. 22. Separability If any term of this agreement is found to be invalid or unenforceable, all other provisions will retrain in full force. 23. Entire Agreement, Amendment, and Waiver The Account Agreement, as amended from time to time, is the complete statement of your agreement with us. The Account Agreement may be amended only in the following manner. On prior written notice to you, we may modify or rescind existing provi• sions or add new provisions. Amendments won't affect rights or obligations eitherof us incur before the effective date of the amendment. Waivers of rights under the Account Agreement must be expressed in writing and signed by the party waiving the rights. A waiver will apply only to the particilarcinvmstance giving rise to the waiv. er. and won't be considered a continuing waiver in other similarciramtstances, unless the intention to grant a continuing waiver is expressed in writing. Our failure to insist on strict compliance with the Account Agreement or any other course of conduct on our part is not considered a waiver of our rights under the Account Agreement. 10 24. Release of Name According to the provi• sions of Rule 14b•1 under the Securities and Exchange Act of 1934, unless we receive your written objection, we may release your name, address. and security positions on request to companies whose setutides you hold. MARGIN AND SHORT ACCOUNT AGREEMENT Mat& borrowing, short sale transactions, and short option positions are types of leveraged transactions in which yourobligationsare seta ed by long securities or other collateral held in your account. (For more detailed information on short option positions and short sale transactions, see pages 17.18). In a leveraged transaction, you have greater opportunity for pmfit and loss. For this reason, leveraged transactions are riskier than non• leveraged transactions. Furthermore, if the value of securities held as collateral falls or if the price of securities sold short increases, you may be subject to a margin call and/or your securities may be liquidated. Therefore, before you apply for the Margin and Short Account feature, you must carefully consider market conditions and your financial position and investment objectives. 1. Provision of Services We may extend credit to you according to applicable laws and regu• lations and our Disclosure of Credit Terms and Policies (see pages 14.19). You agree to use this credit primarily for business and investment purposes. 2. Disclosure of Credit Terms and Policies All transactions in the Margin and Short Account are subject to our Disclosure of Credit Terms and Policies (see pages 14.19). You agree not to enter an order in your Margin and Short Account until you've read and understood the Disclosure of Credit Terms and Policies. 3. Maintenance of Collateral You agree to maintain in your Margin and Short Account collateral of the type and amount required by: • Applicable exchange rules and federal regulations; • Our Disclosure of Credit Terms and Policies: or urn. • As required by us at our discretion. 4. Liquidation Whenever it is necessary for our protection or to satisfy a margin deficiency, debit, or other obligation owed us, we may (but aren't required to) sell, assign, and deliver all or any put of the Securities and Other Property securing your obligations, or dose any or all transactions in your Brokerage Account. It Is our policy to attempt to contact you. when e, before talang any action described in this section However; we reserve the right to take anyrich actionwithoutpriordemand for additional collateral, notice. or advettise rent, and free of any right of redemption. Any prior demand, call, or notice won't be considered a waiver of our right to sell or buy without demand. all, or notice. We may choose which Securities or Other Property to buy or sell, which transactions to dose, and the sequence of liquidation. We may take sudt adicru on whatever exchange or market and in whatever manner (including public auction or private sale) that we choose in the exercise of our business judgment. We may transfer Securities and Other Property from any one of your brokerage accounts to airy other of your brokerage accounts, if we deter mine thatyour obligations azcn't adequately scatted or to satisfy a mazgin deficiency or other obligation. You agree to pay on demand any account deficiencies after liquidation, whether liquidation is complete or partial. We're entitled to exercise the rights described in this section if any of the following occurs: • A petition for bankruptcy or for the appoint- ment of a receiver is filed by or against you: • An attachment is levied against any of your brokerage accounts with us: • You die or become incapacitated or incompe• tent, or • Your Brokerage Account is closed. S. Short Sales You agree to designate a sell order as a short sale if, at the time you place the order, you either don't own the security being sold or are unable to deliver the security in a timely manner. 12 You agree that we may, at our discretion and without nutice, "buy in" securities to cover any short security position in your account. We may take this action either on a regular settlement. rash, or next-day settlement basis. If you're unable to cover a short security position (either through delivery of the security or through "buying-in" the security) in enough time so we can deliver the security to the lender (to whom we're obligated), you agree to reimburse us for the losses we sustain as a result of your failure to deliver the security. 6. Interest on Debit Balances Well charge interest on your debit balance according to our Disclosure of Credit 71:rms and Pol'tdes. We post accrued but unpaid interest charges to your account each month. We compound the interest as described in our Disclosure of Credit Tetras and Policies (see pages 14.19). 7. Pledge of Securities and Other Property We may pledge, repledge, hypothecate, or rehy potheate, either separately or together with Securities of other customers, all Securities and Other Property that you, now or in the future, carry, hold, or maintain in your Margin and Short Account The value of the Securities and Other Property we pledge or repledge may be greater than the amount you owe us, and were not obli• gated to retain in our possession and control for delivery the same amount of similar Securities and Other Property. 8. Loan Consent You agree that Securities and Other Property held on margin, now or in the future, may be borrowed (either separately or together with the property of others) by us (acting as principal) or by others. No eompen- sation will be payable to you in connection with such borrowings, and any losses or other det- rimems or gains or other benefits arising from such borrowings will not accrue to your Brokerage Account. 9. Account Agreement All transactions in your Margin and Short Account are subject to the Account Agreement. "Account Agreement" means: this Margin and Short Account Agree- ment and the Brokerage Account Application and Cash Account Agreement: the Disclosure of Credit Terms and Policies; the Option Agreement. 11 if any; the Schwab Money Fund Agreement it any; and any other written agreements between you and us, all as amended from time to time. DISCLOSURE OF CREDIT TERMS AND POLICIES The following Disclosure of Credit Tt= and Pblidesisrequired bytheSecurities andExchange Commission and is part of your Brokerage Account Agreement. It describes the terms under which we extend credit and charge interest and how your obligations are segued by property in Your Brokerage Account. 1. Interest Charges Well charge interest on a dily inbasis terest the credit we extend to you. The dally charges areeiladatedbymultiply- ing your "daily adjusted debit balance" by the "daily margin interest rata" Generally speaking, your "daily adjusted debit balance" is the actual settled debit balance in your Margin and Short Account. Increased by the value of securities held short and reduced by the amount of any settled credit balance tarried in your Cash Account. We calculate your daily adjusted debit balance each day by adjusting your previous day's balance by any debits and credits to your account and by flanges in the value of short positions. If your daily adjusted debit balance is reduced bemuse you deposit a check or other item that is later returned to us unpaid, we may adjust youracoount to renal interest charges you've incurred. We reserve the right to dharge interest on debit balances in the Cash Account. Each month, we'll send you a comprehensive statement showing the activity in your account, including applicable interest charges, interest rates, and adjusted daily debit balances. 2. Daily Margin Interest Rate The "daily margin interest rate" is based on a 360-day year. It is calculated for each day by dividing the applicable margin interest rate shown in the table below by 360. Please note that use of a 360-day year results in a higher effective rate of interest than it a year of 365 days were used. The applicable margin interest rate is set at a percentage above Schwab's Base Rate according to the following schedule: If your daily adjusted The applicablemirgin debit balance is: interest rate is: $0.00$24,999.99 Base Rateplus IiA% $25.000.00-$49.999.99 Base Rate plus 1Y: $50,000.00 and over Base Rate plus %% We set the Base Rate at ourdisaedw with refer- ence to commercially recognized interest rates, industry otirAtions relating to the extension of rtarghn credit, and general credit market eon. ditioas. The current Base Rate is available from your branch. Your margin interest rate will be adjusted automatically and without notice torenettany change in the Base Rata if your interest rate increases for any reason other than a change in the Base Rate, we'B give You written notice at least 30 days prior to that change. 3. Compounding of Interest Charges We compound Interest on a daily basis. Interest charges will accrue to your account each day. Well Include the charges in the nextdrAopening debit balance and charge interest accordingly. The interest rates described above don't reflect compounding of unpaid interest diarges; the effective interest rate, taking into effect such compounding, will be higher. 4. Initial Margin Requirements The Federal Reserve Board and various stock exchanges determine margin loan rules and regulations. We won't extend credit unless your equity in the Securities and Other Property in your Margin and Short Account is at least $2,000, or such greater amount astray be required by applim• ble rules or regulations or our house policies. The maximum amount we currently may loan is 50% of the value of marginable securities pur• chased or held in your Margin and Short Account. If the market value of stock held as collateral increases after you've met the initial margin requirements, your available credit may increase proportionately. Initial margin requirements may change without prior notice. We may impose more stringent requirements on positions that involve higher levels of risk; for example, higher limits may is nankrva apply for thinly-traded or volatile securities. 'tau may purchase only certain securities on margin or use them as collateral in your Margin and Short Account. Most storks traded on national securities exchanges and some over- the-counter securities are marginable. Equity securities with a market value of less than $5 per sham may not be purchased on margin or deposited as margin collateral. If the market value of a security drops below $3 per sham, the security won't be assigned any value as collateral to searm your margin obligations. Different requirements apply to non-equity seauities, such as bonds. 5. Margin Maintenance Requirements You must maintain a minimum amount of equity in your account to collateralize your outstanding loans and other obligations. Margin maintenance requirements are set: • By the rules and regulations of the New York Stock Exchange, the American Stock Exchange, and other regulatory agencies to whose juris- diction we are subject; and • According to our discretion and judgment. Margin maintenance requirements may change without prior notice. We may issue a "margin call" (that is, a notifia• tion to deposit additional collateral) if your account equity falls below the margin mainte- nance requirement. This an happen for various reasons.The mostcommon reasons area decrease in the value of long securities held as collateral or an increase in the value of securities held short As a general guideline and when it's practica- ble to do so, we may (but aren't required to) issue a margin all when the equity in your Margin and Short Account falls below 30%of the market value of assets at risk (that is, the sum of the market values of the long and short equity security positions) in your Margin and Short Account. The amountof additional collateral we require usually is an amount sufficient to raise your equity to 35%. Weretainabsolutediscretiontodeterininewhether, when, and in what amounts we'll require addi- tional collateral. In some situations, we may find it necessary to require a higher level of equity 16 in your account. For example, we may require additional collateral if an account contains: • Only one security or a large concentration of one or more securities; or • Low•prioed,thinly-traded,orvolatilesecurities. or if • Some of your collateral is or becomes restricted or non-negotiable or non•marginable. We also may consider market conditions and your financial resou ces. 6. Short Option Positions If you write uncov: ered put or call option contracts, your aooamt is subject to both initial margin and margin mainte. ==requirements. For more detailedintormation on how we calculate these equity requirements. contact your local branch. 7. Short Sales A short sale is a margin trans. action subject to initial margin and margin maintenance requirements. In most cases, the initial nargin equity requirement [or the short sale of an equity seauity is 150% of the sales price of the seauity. Plus commissions Egtdty seauities selling for S5 or less and odd lots usually may not be sold short Different requirements apply to non-equity securities, such as bonds. Generally, current margin maintenance rules require you to maintain equity in your account equal to 135% of the market value of each stock "short" in your account. The value of sea. rides held short in your account is "marked to the market" each day. Increases in the market value will increase your daily adjusted debit balance (on which interest is charged) by the same amount while dec rasm in the market value will decrease your daily adjusted debit balance by the same amount. As a result of increases in your daily adjusted debit balance, the collateral held in your account may become insufficient (see "Margin Mainte• nance Requirements pages 16.17, "Liens and Liquidation; pages 18.19). Short sale proceeds are part of the collateral searing our loan of the security to you, and you may not withdraw these proceeds from your account. You're liable for all dividends paid on securities you've borrowed for the purpose of short sales. 17 ,,... I::Mn1!?r'kil For our protection, we may, at our discretion and without notice, immediately cover your short security positions by purchasing for your account securities to replace those sold short. We may cover your position because: • The lender of the securities recalls them; • We anticipate an inability to borrow or rebormw these securities; or • For any other reason. If several accounts hold short positions in a secu. rity and not all of the positions are to be covered, we may select the positions to be covered on a random basis In coming a short position. we may at our discretion purchase securities for your account either on a normal settlement basis, next-day, ora ash settlement basis. The price of securities purchased on a next-day or ash settlement basis usually is higher than those purchased on a normal settlement basis. The price of covering the short position may be higher than the price at which you sold short; therefore, you may sustain a loss on that transaction. You're liable for commissions and other mss of short sale transactions and for any debit balance that remains after we cover or close out a short position. When we borrow securities for your account, were obligated to return the securities to the lender on demand. If you're unable to cover a short position (either through delivery or through our "buying-in" your position) in sufficient time for us to deliver the security to is lender, you agree to pay us for the losses we sustain as a result of the failure to deliver. For instance, if you have a short position in a security that is subject to a tender offerand you're unable to cover the position in time for us to deliver the security to its lender, we may hold you responsible for the economic value of the tender offer. 8. Liens and Liquidation At our election, all debit balances in your account, including those resulting from extensions of margin credit, will be immediately due and payable. In the Brokerage Account Agreement, you granted us a lien on all Securities and Other 18 Property held or maintained for any purpose, including safekeeping, in your Brokerage Account or in any other present or future Schwab brokerage account in which you have an interest. This lien secures the full performance of obligations owed to us by you or any joint account holder of your Brokerage Account, whether those obligations are incurred in connection with your Brokerage Account or any other brokerage account with us, and extends to property that may not be acceptable as margin collateral under Federal Reserve Board regulations. If your equity falls below the applicable mainte• nance requirement, we may (but aren't obligated to) notify you by mail, telegram, telephone or other means of a margin call for an amount suffi. cient to bring your account up to the equity level we require. Margin calls require prompt delivery according to our instructions of either additional funds or acceptable sectuities. Failure to make a required deposit may result in the liquidation of part or all of the Securities and Other Property in your account You71 continue to be held liable on demand of any debit balance remaining after liquidation of asses in your account. At times, it may not be possible to notify you of a margin all or allow any time to deposit addi- tional collateral. Therefore, we reserve the right to initiate immediate liquidation pro- cedures without notice. You're responsible for monitoring the status of your account, for ensuring that sufficient collateral is maintained in the account, and for liquidat• ing positions to minimize losses. Any action we take or don't take to issue a margin tall or liquidate collateral is undertaken solely to pro• tect our interest as a creditor; we disclaim any responsibility to issue a margin call or liquidate positions in your account to prevent or minimize losses to you. SCHWAB MONEY FUND AGREEMENT The Schwab Money Funds are several money market funds available through your Brokerage Account. You may invest in any or all of the several funds, which include: 19 a:hu,rxmn:? • Schwab Moncy Market Fund-invests primarily in high-grade commercial paper, certificates of deposit, bankers' acceptances and other corporate obligations that mature in less than 12 months. • Schwab Government Securities Fund- invests in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. • Schwab 7kx•Faempt Fund-primarily invests in high-quality, short term municipal securides; income from these securities is exempt from federal income tax. • Schwab US.Treasury Money Fund- invests in securities fully guaranteed by the U.S. Government • Schwab California 'Pru Free Money Fund- invests primarily in high-quality; short-term securities in California. If you choose to take advantage of the Schwab Money Funds, the following temps and conditions apply, in addition to the other terms and condi• tions of the Account Agreement I. Minimum Required Investment The mini. mum opening investment in each of the funds is $1,000. You may make additional investments of $100 or more at any time. If your investment in a fund fails below 5100, the investment remaining in your fund will be redeemed auto. matically. Well either deposit the proceeds in your Schwab aaountor mail them to you. To rein. vest in the fund, you're required again to make the minimum opening investment of $1,000. For Custodial Accounts, the minimum opening investment and the minimum additional invest. ment is $1. 2. Automatic Investment You mustdesignate one of the funds as a primary fund. To change your primary fund, simply notify us. On the first business day of each week (usualiv a Monday), well automatically invest in the primary fund an amount equal to the Free Credit Balance in your Brokerage Account on the last business day of the preceding week (usually a Friday). 20 If your Free Credit Balance is less than $100 on the last business day of the week (or $1 in the rase of Custodial Accounts), we won't invest the cash in your primary fund, and the cash will remain as a credit balance in your Brokerage Account if securities purchasa are Scheduled to settle within the two business days following the first business day of the weer, we'll hold adequatecash in your Brokerage Aoooumttosetde the batuaction. Well also hold in your Brokerage Amount credit balattoes that are designated as coliateW for Your obligations, such as a cash balance multi ing from a short sale. These credit balances won't be available for investment in the Schwab Money Funds. If we've credited your Account for dividends resulting from theinvestment of fundsrepmented by a check or other item that is later returned unpaid, well debit the amount of these dividends from your Brokerage Account 0. Nature of Investment and SIPC Protection Although investment in the Schwab Money Funds provides a means of earning a return on cash, interests in the funds are investments in securities that may increase or decease in value. Sham of the funds and 211 other asses held in your Schwab account for investment purposes are Protected by the Securities Investor Protection Corporation (SIPC). SIPC protects your account for $500,000 (claims of cash are limited to $100,000). Additional private protection may be available for portfolios larger than 5500,000. Contact your local branch office for Wormadon. Schwab Money Fund shares are securities, not cash. so such shares are protected up to the full $500,000 limit SIPC will Protect more than one account in your name provided you're acting in a different capac• ity for each account (For instance, this would be the case if you had an individual account and another account as a custodian for a minor.) SIPC does not Protect against a decline or loss in value of securities in your Brokerage Account. 4. Redemption You may convert your Schwab Money Fund investment into cash in your Bra kerage Account by instructing us to redeem part 21 •4ata!n10: ,l or all of your investment. The proceeds of such a redempdon will be available to you on the first business day after the day we receive your instruction. However, if we receive your instruc- lion after market hours, well consider that the instruction was nude on the next business day. Well automatically redeem your Schwab Money Fund investment to satisfy a debit balance in Your Brokerage Account or to provide necessary cash aoilatecal in Your MUM and Short Account. Well also automatically redeem your Schwab Money Fund investment to the extent necessary to settle securities transactions, if your free credit balance on the day before settlement day is Insufficient to settle the transaction. If you intend to send cash to settle sectuities han actions, we must receive it on the business day before settlement date to prevent an auto- matie redemption. Unless you instruct us other. wise in each instance, well redeem fast from Your Primay fund and then from other funds. 5. Confirmations and Statements We will not send confirmations for Schwab Money Fund transactions in your Primary Portfolio account All fund transactions (including purchases, redemptions, dividends, and dividend reinvest. mehts) will appear on your monthly statement. Dividends are declared daily and will be paid and reinvested in the applicable fund on the 15th of each month if a business day or on the next business day that follows. However, the payment and reinvestment date for December of each year may be extended by appmximatdy is days. 6. Limitation of Liability If we fail to purchase shares of a fund according to this agreernent. our liability is limited to the actual amount of the dividends you would have earned had the shares been purchased. 7. Fund Features Investments in a fund are subject to restrictions described in the prospectus. For more complete information about the Schwab Money Funds, including charges and expenses. call your local branch office for a prospectus. Please read it carefully. An investment in the Fund is neither insured nor guaranteed by the U.S. Government There can be no assurance that the Fund will be able to maintain a stable net asset value of S1.00 per share. 22 8. Continuing Lffcct of Authorization Termination You authorize us to act as your agent to purchase and redeem for your account shares of the funds you've selected. This author. ization will remain effective until you give notice to us to the contrary. Such notice will not affect any obligations resulting from transactions Initiated prior to our receipt of the notice 9. Account Agreement Ail Schwab Money Fund transactions will be conducted through your Schwab Brokerage Account and are subject to the Account Agreement. "Account Agreement" means: this Schwab Money Fund Agreement and the Account Application and Cash Account Agreement; the Margin and Short Account Agreement, if any; the Disclosure of Credit Terms and Policies; the Option Agreement, if any; and any other written agreements between you and us, all as amended from time to time. 2J i ?'Y 3? t t? ti 'S yY 1 2----------------- y 54 .v': 3 ExhWftB l - l :"Ff Y F.§ J 23J Sz f 1 VG}. 3 4 t f. Y C Y 4 5. 9 t: k t i f \' 1 y f' 1. i t a 1 ..+-+wMw..n?GSe?.t zrnw. waw t.«NC?+w .. w..-+.w ""'°- t r 44 t Y w 5" ?` `Y " harles SSCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX-ID-NUMBER _PERIOD COVERED- LAST STATEMENT _PAGE HG 8074-5886 208-58-9350 JAN 1 - JAN 31 1995 DEC 1994 1 TITLE-OF-ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 17 SOUTH MARKET SQUARE STE lA HARRISBURG PA 17101 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH •*• %TUS OF KEY VALUES AS OF JAN 31 1995 ,restments owned $68,718.75 lestments Short ($17,162.50) let Portfolio Value $51,556.25 ling Cash Balance ($48,774.541 COTAL ACCOUNT VALUE $2,781.71 ange in Value from 12/94 ($2,848.63) r9icnAccount Equity $2,781.00 wr g or VISA Limit $.00 /ESTMENT_INCOME SUMMARY 7RCE OF INCOME ---------------------- ACCOUNT-TRANSACTION-SUMMARY OPENING CASH BALANCE Investment Salem Total Credits Investment Purchases Margin Interest Charged Total Debits ENDING CASH BALANCE CURRENT PERIOD TOTAL INVESTMENT INCOME $.00 YEAR TO DATE ($43,213.41) $7,057.26 97,057.26 ($12,280.00) (9338.39) (912,618.39) (948,774.54) RATE SUMMARY AS OF 01/31_ TEF Yield* 3.021 STF Yield* 5.041 Schwab 1 Yield 5.011 $.00 Margin Loan Rate 7.751 to 8.751 • 7 Day Annualized Yield. Please sse reverse for more information. IGIN INTEREST_CHARGED ($338.39) ($338.39) :FOLIO POSITION DETAIL S LONG/ QUOTE :GORY T SHORT SYMBOL QUANTITY INVESTMENT DESCRIPTION LATEST PRICE MARKET VALUE :KS M .DNS M Long Short COMS ZTHAL 1500 7 THREE COM CORP 45.8125 $68 718 75 CALL $60 THREE COM CORP 8.3750 , . ($5,862.50) M Short ZTHAI 8 CALL EXP THREE 01/18/97 r.OM CORP 14.1250 ($11 300 00) $45 EXP 01/18/97 , . Portfolio Value IUNT TRANSACTION DETAIL $51,556.25 TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 3 Short Sale 01/12 7_ 0 ening Cash Balance ($43,213.41) CALL THREE COM CORP 10.1250 $7,057.26 $60 EXF 01/18/97 • • • CONTINUED ON NEXT PAGE halos s&&" a Co.. Inc. SEE REVERSE SIDE FOR STATEMENT INFORMATION Manner. New York eldcl Exda-qk 2nd MW 04 10021 aleck 2nde ,m •r»2My Charles S SCHWAB GNE ACCOUNT Statement ACCOUNT NUMBER TAX ID NUMBER PERIOD COVERED__ LAST STATEMENT PAGE HG 8074-5686 206-58-9350 JAN 1 - JAN 31 1995 DEC 1994 2 .TE TRANSACTION QUANTITY DESCRIPTION PRICE /13 Cover Short 01/12 7 CALL AMOUNT /30 Margin interest THREE COM CORP 945 EXP 01/18/97 17.5000 ($12,280.00) ??• INTEREST 12/29THRU 01/29 Ending Cash Balance ($338.39 4 ($48,774.5 TEREST_CALCULATION DETAIL FROM DEC 29 1994 THROUGH JAN_29 1995 NBR PE DAYS MARGIN ACCOUNT COR FREE ASH ACCT DEBIT OMARSHORTABAULES PO BALANCE RATE INTEREST /29 32 (45,987.99) .00 .00 (46,141.00) 8.2501 :?in Interest Charged ($338.39) (5338.39) 11 balances are average daily balances hNM eww.b a co, Inc. kumber. Now Yak atom Edon". b _ Wd SEE REVERSE SIDE FOR STATEMENT INFnRMATInN ............. .. ......... . iarles ACCOUNT NUMBER TAX-ID-NUMBER _PERIOD COVERED-- LAST STATEMENT _ -PAGE HG 8074-5886 208-58-9350 FEB 1 - FEB 28 1995 JAN 1995 1 TITLE OF ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 17 SOUTH MARKET SQUARE STE 1A 10 HINES DRIVE HARRISBURG PA 17101 EAST BERLIN PA 17316-9229 717-233-1154 FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH '•• ___________________________ -_ OF KEY VALUES AS OF_FEB 28 1995 =ants owned $78,187.50 :Mentz Short Portfolio Value ($27,00000) . Cash Balance $51,187 .50 (545,644.25) .L ACCOUNT VALUE 35 543 25 in Value from 01/95 , . $2,761.54 Account Equity $5,543.00 +riting or VISA Limit $.00 9CHWA8 ONE ACCOUNT Statement ACCOUNT-TRANSACTION SUMMARY OPENING CASH BALANCE Investment Sales Total Credits Investment Purchases Margin Interest Charged Total Debits ENDING CASH BALANCE MENT_INCOME_SUMMARY OF INCOME CURRENT PERIOD YEAR TO DATE L INVESTMENT INCOME $.00 $.00 INTEREST CHARGED ($309.39) ($647.78) -_____- __-___- _-_________ -_---- ($48,774.54) $9,419.68 $9,419.68 ($5,980.00) ($309.39) ($6,289.39) ($45,644.25) RATE SUMMARY AS OF 02/28_ TEF Yield` 3.441 STF Yield* 5.261 Schwab 1 Yield 5.191 Margin Loan Rate 8.251 to 9.251 Day Annualized Yield. Pleaas see reverse for more information. --------------------'--+ O_POSITION DETAIL S LONG/ T SHORT QUOTE SYMBOL QUANTITY INVESTMENT DESCRIPTION LATEST PRICE MARKET VALUE M Long M Short COMS ZTHAI 1500 15 THREE COM CORP CALL THREE COM CORP $45 EXP 01/18/97 52.1250 $78,187.50 18.0000 ($27,000.00) :olio value $51,187.50 'RANSACTION DETAIL iNSACTION QUANTITY DESCRIPTION PRICE AMOUNT :er Short 02/01 7 CALning )rt Sale 02/01 7_ $60L $CALL Cash Balance THREE COM CORP EXP 01/18/97 THREE COM CORP EXP 01/18/97 ' ' • CONTINUED ON NEXT PAGE ' wm a Co.. Ina SEE REVERSE SIDE FOR STATEMENT INFORMATION 8.5000 13.5000 ($48,774.54) ($5,980.00) $9,419.68 WW tw. New Vat No* EttMme. W- am OUWOnndwl ?IMr •MI nr.w.. .......,. Charles S SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX ID NUMBER -PERIOD COVERED- LAST STATEMENT PAGE HG 8074-5886 208-58-9350 FEB 1 - FEB 28 1995 JAN 1995 2 WE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 1/27 Margin Interest INTEREST 01/30THRU 02/26 Ending Cash Balance (41309.39) (84 ,644.25) ITEREST_CALCULATION DETAIL FROM JAN 30 1995 THROUGH FEB 2619 95 ATE ET VALUE DAYS ?GIIN ACCOUNT ORSFREECCREDITT OOFF (SHORT SALES TBO INTTEREST?? RATE ( INTEREST / /30 03 24 (45,334.86) .00 00 (47.931.39) 8.2501 .00 : 00 (45,498.96) 8.7501 (243.94) rgin Interest Charged (5309.39) (412641.441) 11 balances are average daily balances MwrbW. owms Sdmb a Co., Inc. SEE REVERSE SIDE FOR STATEMENT INFORMATION .?n .N.,µ Vwk 8W* ............'.!^a es Schwab ---------------* ACCOUNT NUMBER TAX_ID NUMBER PERIOD COVERED HG _-pAGE_ HG 8074-5886 208-58-9350 MAR 1 - LAST _ MAR 31 1995 FEB 1995 1 TITLE-OF-ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 17 SOUTH MARKET SQUARE 10 PINES DRIVE HARRISBURG PA 1701STE LA EAST BERLIN PA 17316-9229 717-233-1154 '*• FOR QUESTIONS ABOUT THIS STATEMENT; CONTACT YOUR BRANCH •*• .TUS OF KEY VALUES AS OF_MAR_31 1995 eatments Owned 'eatments Short $84,937.50 et Portfolio value i ($29,925.00) $55 012 50 nqq Cash Balance OTAL ACCOUNT V , . (947,937.17) ALUE age in Value from 02/95 $7,075.33 $1,532.08 gin Account %ity $7,075.00 ckwriting or VISA Limit $.00 ACCOUNT TRANSACTION_SUMMARy OPENING CASH BALANCE Investment Sales Total Credits Investment Purchases Margin Interest Charged Total Debits ENDING CASH BALANCE :STMENT_INCOMESUMMARY ACE OF INCOME CURRENT PERIOD YEAR TO DATE DTAL INVESTMENT INCOME IN-INTEREST-CHARGED DLIO POS SCHWAB ONE ACCOUNT Statement $.00 $.00 ($357.53) ($1,005.31) SH DRY T ORT SYYMBOL QUANTITY M Long COMB 1500 M IS Short 2THAI 9 M Short ZTHAJ 6 )rtfolio Value TRANSACTION Cover Short 03/07 y su ab a Co.. Inc. INVESTMENT DESCRIPTION THREE COM CORP $CgALLL THREE COM CORP EXP 01/18/97 $C OL THREE COM CORP EXP 01/18/97 $55,012.50 ($45,644.25) $11,519.61 $11,519.61 ($13,455.00) ($357.53) ($13,812.53) ($47,937.17) RATE SUMMARY AS OF 03/31_ TEF Yield* 3.391 STF Yield* 5.351 Schwab 1 Yield 5.261 Margin Loan Rate 8.251 to 9.251 pleaseyseenreverse to= 1d. more information. LATEST PRICE MARKET VALUE 56.6250 $84,937.50 21.2500 (4119,125.00) 18.0000 ($10,800.00) QUANTITY DESCRIPTION PRICE AMOUNT 6 0M0p ning Cash Balance CALL THREE COM CORP 22.3750 ($45,644.25) $45 EXP 01/18/97 ($13,455.00) ' • • CONTINUED ON NEXT PAGE • • • SEE REVERSE SIDE FOR STATEMENT INFORMATION MWF6W N" ron, slag Exclu pp y4 one ano 00e081 no,f •M n ........... Charles SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX ID NUMBER _PERIOD COVERED__ LAST STATEMENT PAGE HG 8074-5886 208-58-9350 MAR 1 - MAR 31 1995 FEB 1995 - _ 2 ILCCOUNT TRANSACTION_DETAIL )ATE TRANSACTION QUANTITY DESCRIPTION PRICE 33/09 short sale 03/08 6- CAL AMOUNT 13130 Margin Interest L THREE COM CORP 19.2500 $30 EXP 01/18/97 $11,519.61 EndingsCash/Balance03/29 ($37.13) (947,937.17) :NTEREST CALCULATION DETAIL FROM FEB_27 1995 THROUGH_MAR 29 1995 )ATE NBR DAYS NET BBA tCOUNT MARGIN AC CASH DEBIREDITT OAF 30RVALUE -------- CERES?? ------- NTEREST g T RATE AM01JN1' X3%08 9 {45,644.25) 159 099 25) .00 .00 (45,684.95) 8 750\ %3/09 , . 21 (47,579.64) .00 00 .00 (59,199.19) . 8.250\ 599.94) $13 57) . .00 (47,804.27) 8.7501 . ($244.02) tar in l Interest charged ($357.53) Al b alances are-average dally balances cmrm ktmb a Co" M6' SEE REVERSE SIDE FOR STATEMENT INFORMATION rN "mal %Wo* *M P... I ACCOUNT NUMBER TAX-ID-NUMBER HG 8074-5886 208-58-9350 TITLE OF ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 OFFICE SERVING YOUR ACCOUNT 17 SOUTH MARKET SQUARE STE 1A HARRISBURG PA 17101 717-233-1154 FOR_QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH •+• ATUS OF KEY VALUES AS OF APR_30.1995 vestments Owned vestments Short $84,000.00 Net Portfolio Value ($29,087.50) dingq Cash Balance POTAL ACCOUNT $54,112.50 ($48,264 49) VALUE ange in Value from 03/95 . $5,848.01 ($1,227.32) rgin Account Equity eckwriting or VISA Limit $5,848,00 5.00 ACCOUNT TRANSACTION-SUMMARY OPENNIN G InCterea Charged -- (947 -BALANCE ENDING CASH Interest Ch,937.17) BALANCE ($48,264.49) VESTMENT-INCOME-SUMMARY URCE OF INCOME CURRENT PERIOD YEAR TO DATE 'OTAL INVESTMENT INCOME $.00 IGIN INTEREST CHARGED - ---?_(S327.32) ($1,332.63) ---- ------ ------------------ .'FOLIO POs :GORY :KS DNS S LONG/ QUOTE T SHORT SYMBOL QUANTITY M Long coma 1500 M Short ZTHAI 9 M Short ZTHAJ 6 Portfolio Value TRANSACTION 7 Margin interest + $.00 INVESTMENT DESCRIPTION RICET MARKET VALUE THREE COM CORP CALL THREE COM CORP 56.0000 $84,000.00 $45 EXP 01/18/97 21.3750 ($19,237.50) SC OL THREE EXP COM CORP 01/18/97 17.7500 (510,650.00) $54,112.50 QUANTITY DESCRIPTION Opening PRICE IERETC03130THRUc04/26 Ending Cash Balance CONTINUED ON NEXT PACE • + RATE SUMMARY AS OF 04/30_ TEF Yield* 3.681 STF Yield* 5.38% Schwab 1 Yield 5.281 Margin Loan Rate 8.251 to 9.251 7 Day Annualized Yield. Please see reverse for more infozmation. AMOUNT ($47,937.17) ($48,264.49) >?nw srm as Co.. Inc. SEE REVERSE SIDE FOR STATEMENT INFORMATION n MrN?. Nhv 1b,lt Bbtlc M ?wwnw•1 •InrY •M w-'w"Y•Illfi. W4 ?PERIOD COVERED? LRST-STATEMENT APR 1 ?PAGE? - APR 30 1995 MAR 1995 1 WINE ;harles Schwab SC HWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX_ID NUMBER -.PERIOD COVERED-- LAST STATEMENT PAGE HG 8074-5886 208-58-9350 APR 1 - APR 30 1995 MAR 1995 2 EREST_CALCULATION DETAIL_FROM MAR 30 1995 THROUGH APR 26_1995 HEIR NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT INTEREST E DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 30 28 (47,937.17) .00 .00 (48,088.54) 8.7501 ($327.32) yin gin Interest Charged ($327.32) are average daily balances .hem Sdmb 6 Co., Ina SEE REVERSE SIDE FOR STATEMENT INFORMATION othw. V eml sloe* and m"m 0..y, ? ? Charles' Schwab SCHWAB ONE ACCOUNT Statement ACCOUNT _NUMBER TAX_ID NUMBER _PERIOD COVERED- LAST-STATEMENT PAGE HG 8074-5886 208-58-9350 MAY 1 - MAY 31 1995 APR 1995 1 TITLE-OF-ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 717-233-1154 ••w FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH •ww STATUS-OF-KEY-VALUES-AS-OF-MAY-31-1995 Investments Owned $96,000.00 Investments Short ($30,375.00) Net Portfolio Value $65,625.00 Ending Cash Balance (558,866.06) TOTAL ACCOUNT VALUE $6,758.94 Change in Value from 04/95 $910.93 margin Account Equity F d $6,758.00 un s Available Margin Account $3,534.00 Checkwriting or VISA Limit $3,946.51 17 SOUTH MARKET SQUARE STE 1A HARRISBURG PA 17101 ACCOUNT-TRANSACTION SUMMARY OPENING CASH BALANCE ($48,264.49) Investment Sales $33,688.87 Total Credits $33,688.87 Investment Purchases ($43,897.50) Margin Interest Charged ($392.94) Total Debits ($44,290.44) ENDING CASH BALANCE ($58,866.06) INVESTMENT-INCOME-SUMMARY SOURCE OF INCOME CURRENT PERIOD YEAR TO DATE TOTAL INVESTMENT INCOME $.00 RATE SUMMARY AS OF 05/31_ TEF Yield* 3.4111 STF Yield* 5.3111 Schwab 1 Yield 5.2811 Margin Loan Rate 8.25% to 9.2511 $.00 w 7 Day Annualized Yield. Please see reverse for more information. MARGIN-INTEREST-CHARGED- ($392.94) ($1,725.57) -------°---°-------°-- -------- 1ORTFOLIO POSITION DETAIL S LONG/ QUOTE LATEST 'ATEGORY T SHORT SYMBOL QUANTITY INVESTMENT DESCRIPTION PRICE MARKET VALUE TOCKS M Long COMB PTIONS M Short WTHAM at Portfolio value .000UNT TRANSACTION DETAI ATE TRANSACTION wwww 5/25 Cover Short 05/24 64.0000 $96,000.00 20.2500 ($30,375.00) PRICE AMOUNT Opening cash Balance (548,264.49) 9 CALL THREE COM CORP 30.8750 ($27,817.50) $45 EXP 01/18/97 • • • CONTINUED ON NEXT PAGE • w • D C 4rM SdMOb A Co.. 10o. SEE REVERSE SIDE FOR STATEMENT INFORMATION 1500 THREE COM CORP 15 CALL THREE COM CORP $65 EXP 01/17/98 $65,625.00 QUANTITY DESCRIPTION Mwrber New Ywk 8104 Exdun". tat. and n1AM n.... .. ..... ...-. Charles Schwab SCHWAS ONE ACCOUNT Statement ACCOUNT NUMBER TAX_ID_NUMBER PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5806 208-58-9350 MAY 1 - MAY 31 1995 APR 1995 2 ACCOUNT TRANSACTION DETAIL 3AATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 05/25 Short Sale 05/24 9- CALL THREE COM CORP 23.5000 $21,119.29 $65 EXP 01/17/98 35/30 Margin Interest INTEREST 04/27THRU 05/29 ($392.94) 35/30 Short Sale 05/26 6- CALL THREE COM CORP 21.0000 $12,569.50 $65 EXP 01/17/98 35/30 Cover Short 05/26 6 CALL THREE COM CORP 26.7500 ($16,080.00) $50 EXP 01/18/97 Ending Cash Balance ($58,866.06) INTEREST CALCULATION DETAIL FROM APR 27 1995 THROUGH MAY 29 1995 NBR NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT INTEREST SATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 14/27 28 (48,264.49) .00 .00 (48,418.15) 8.7501 ($329.56) )5/25 5 (54,962.70) .00 .00 (551302.40) 6.2501 ($63.381 trgqin Interest charged ($392.94) A11 balances are average daily balances m CAI" Sdm2b A Co.. Ina a CE amFaee coma enn a*eTeun.. •. •?no 0....., AI~. New Yak glad Edwge. k,a wd Charles SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX-ID-NUMBER -.PERIOD COVERED- LAST STATEMENT PAGE HG 8074-5886 208-58-9350 JUN 1 - JUN 30 1995 MAY 1995 1 TITLE-OF-ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 17 SOUTH MARKET SQUARE STE IA HARRISBURG PA 17101 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT. CONTACT YOUR BRANCH ••• .-------------------------------------------------------------------- ---------- ----------- STATUS-OF-KEY-VALUES AS OF JUN 30 1995 Investments owned $100,500.00 Investments Short ($34,125.00) Net Portfolio Value $66,375.00 Ending Cash Balance ($60,278.32) TOTAL ACCOUNT VALUE $6,096.68 Change in Value from 05/95 ($662.26) Margin Account Equity $5,536.00 Checkwriting or VISA Limit $3,084.19 INVESTMENT-INCOME-SUMMARY, SOURCE OF INCOME TOTAL INVESTMENT INCOME $.00 MARGIN-INTEREST-CHARGED ($412.26) YEAR TO DATE $.00 ($2,137.831 ($58,866.06) $.00 ($1,000.00) ($412.26) ($1,412.26) ($60,278.32) RATE SUMMARY AS OF 06/30_ TEF Yield* 3.471 STF Yield* 5.221 Schwab 1 Yield 5.251 Margin Loan Rate 8.251 to 9.251 • 7 Day Annualized Yield. Please see reverse for more information. PORTFOLIO POSITION DETAIL S LONG/ CATEGORY T SHORT QUOTE SYMBOL QUANTITY INVESTMENT DESCRIPTION LATEST PRICE MARKET VALUE STOCKS M Long OPTIONS M Short COMS 1500 WTHAM 15 THREE COM CORP 67.0000 $100,500.00 CALL THREE COM CORP 22.7500 ($340125.00) $65 EXP 01/17/98 Vet Portfolio Value $66,375.00 ACCOUNT-TRANSACTION-DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 06/02 Funds Paid 06/29 Margin Interest opening Cash Balance COST REQ INTEREST 05/30THRU 06/28 Ending Cash Balance • • • CONTINUED ON NEXT PAGE C Charw 6thwe0a Co.. Inc. SEE REVERSE SIDE cnr, eTeTCUCUr umnoun*.?. ACCOUNT-TRANSACTION SUMMARY OPENING CASH BALANCE Total Credits Funds Withdrawn Margin Interest Charged Total Debits ENDING CASH BALANCE CURRENT PERIOD ($58,866.061 ($1,000.00) ($412.26) ($60,278.32) Mwnber. New York MOM Exchange. Ire. and TRADES PENDING SETTLEMENT TRADE DATE ACTION QUANTITY DESCRIPTION PRICE SETTLE DATE 06/30 Short Sale 8- CALL THREE COM CORP 17.0000 07/03 $80 EXP 01/17/98 06/30 Cover Short 8 CALL THREE COM CORP 23.8750 07/03 $65 EXP 01/17/98 INTEREST CALCULATION DETAIL FROM MAY 30 1995 THROUGH JUN_28 1995 HBR NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT INTEREST DATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 05/30 30 (59,766.06) .00 .00 (59,959.27) 8.250% (41412.26) Margqin Interest charged ($412.26) All balances are average daily balances a awrwsefttbaCo.Inc aceonn:occcrnccnnc-wcueo?.... n.u.•-. 1w!W.N"York SlothErlutp,Inc. ww ACCOUNT-NUMBER TAX-ID-NUMBER -PERIOD COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 JUN 1 - JUN 30 1995 MAY 1995 2 i Charles'Schwab SCHWAB ONE ACCOUNT Statement ACCOUNT-NUMBER TAX-ID-NUMBER -PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 JUL 1 - JUL 31 1995 JUN 1995 1 TITLE-OF-ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 ($66,496.08) $6,328.92 $232.24 $6,328.00 $373.00 $1,774.66 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH ••• STATUS_OF_KEY_VALUES_AS OF JUL 31 1995 Investments Owned $102,875.00 Investments Short ($30,050.00) Net Portfolio Value $72,825.00 Ending Cash Balance TOTAL ACCOUNT VALUE Change in Value from 06/95 Margin Account Equity Funds Available Margin Account Checkwritinq or VISA Limit , INVESTMENT-INCOME-SUMMARY SOURCE OF INCOME TOTAL INVESTMENT INCOME CURRENT PERIOD YEAR TO DATE $.00 MARGIN-INTEREST-CHARGED 0416.991 $.00 (52,554.82) RATE SUMMARY AS OF 07/31_ TEF Yield* 3.201 STF Yield* 5.141 Schwab 1 Yield 5.071 Margin Loan Rate 8.001 to 9.001 • 7 Day Annualized Yield. Please see reverse for more information. PORTFOLIO POSITION DETAIL S LONG/ QUOTE LATEST CATEGORY T SHORT SYMBOL QUANTITY INVESTMENT DESCRIPTION PRICE MARKET VALUE STOCKS M Long ALSC 200 ALLIANCE SEMICONDUCTOR 70.0000 $14,000.00 WITH STOCK SPLIT SHARES M Long COMS 1200 THREE COM CORP 74.0625 $88,875.00 WITH STOCK SPLIT SHARES IPTIONS M Short QASAN 2 CALL ALLIANCE SEMICOND 13.0000 ($2,600.00) $70 EXP 01/20/96 M Short WTHAP 12 CALL THREE COM CORP 22.8750 ($27,450.00) $80 EXP 01/17/98 Net Portfolio Value $72,825.00 • • • CONTINUED ON NEXT PAGE m CMM$ 6dmb A Co. Ina SEE REVERSE SIDE FOR STATFVENT INFnm/ATIna OFFICE-SERVING-YOUR-ACCOUNT 17 SOUTH MARKET SQUARE STE 1A HARRISBURG PA 17101 ACCOUNT TRANSACTION SUMMARY OPENING CASH BALANCE ($60,278.32) Investment Sales $43,634.23 Total Credits $43,634.23 Investment Purchases ($49,435.00) Margin Interest Charged ($416.99) Total Debits ($49,851.99) ENDING CASH BALANCE ($66,496.08) LAW6W.. NM York albrt EsdW V6. kr. WW .MM nn.....1 ....L .M M'.......... ® Charles'khwab j SCHWAB ONE ACCOUNT State*m,ent ACCOUNT _NUMBER TAX-ID-NUMBER -PERIOD COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 JUL 1 - JUL 31 1995 JUN 1995 2 ACCOUNT TRANSACTION DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT '"•' 07/03 Short Sale 06/30 8- ening Cash Balance CALL THREE COH CORP 17.0000 (160,278.32) $13,569.54 $80 EXP 01/17/98 07/03 Cover short 06/30 8 CALL THREE COM CORP 23.8750 ($19,130.00) $65 EXP 01/17/98 07/10 Short Sale 07/07 4- CALL THREE COH CORP 18.5000 $7,369.75 $80 EXP 01/17/98 07/10 Cover Short 07/07 7 CALL THREE COM CORP 25.5000 ($17,880.00) $65 EXP 01/17/98 07/12 Sold 07/07 300- THREE COH CORP 70.0000 $20,915.00 07/17 Short Sale. 07/14 2- CALL ALLIANCE SEHICOND 8.7500 $1,719.94 $70 EXP 01/20/96 07/19 Bought 07/14 200 ALLIANCE SEMICONDUCTOR 62.0000 ($12,425.00) 07/28 Margin Interest INTEREST 06/29THRU 07/27 ($416.99) '•••' Ending Cash Balance ($66,496.08) INTEREST CALCULATION DETAIL FROM JUN_29 1995 THROUGH JUL 27 1995 NBA NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT INTEREST DATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 06/29 19 (62,379.32) .00 .00 (62,503.22) 8.2501 ($272.17) 07/18 10 (64,836.59) .00 .00 (65,168.23) 8.0001 ($144.82) Margin Interest Charged 0416.991 A11 balances are average daily balances tZ 0414290n baco.InC -cc am Marc el..er.•nn...- AbmW,:NmYbrtalockExdan".W-am ® Charles'Schwah SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX-ID-NUMBERPERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 AUG 1 - AUG 31 1995 JUL 1995 1 TITLE-OF-ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH ••• STATUS OF KEY VALUES AS OF AUG 31 1995 Investments Owned $93,600.00 Investments short ($30,600.00) Net Portfolio Value $63,000.00 Ending Cash Balance ($56,618.20) TOTAL ACCOUNT VALUE $6,381.80 Change in Value from 07/95 $52.88 Margin Account Equity $6,216.00 Checkwriting or VISA Limit $4,206.72 17 SOUTH MARKET SQUARE STE lA HARRISBURG PA 17101 ACCOUNT-TRANSACTION SUMMARY OPENING CASH BALANCE Investment Sales Total Credits Investment Purchases Margin Interest Charged Total Debits ENDING CASH BALANCE INVESTMENT INCOMESUMMARY SOURCE OF INCOME CURRENT PERIOD YEAR TO DATE TOTAL INVESTMENT INCOME $.00 $.00 ($66,496.08) $12,125.00 $12,125.00 ($1,755.00) ($492.12) ($2,247.12) ($56,618.20) RATE SUMMARY AS OF_08/31- TEF Yield* 3.101 STF Yield* 5.011 Schwab 1 Yield 5.021 Margin Loan Rate 8.001 to 9.001 • 7 Day Annualized Yield. Please see reverse for more information. MARGIN INTEREST CHARGED - - ($492.12) ($3,046.94) I ---------- ----------------- ----------- ----------------------------------------°--------------+ PORTFOLIO POSITION DETAIL S LONG/ QUOTE LATEST CATEGORY T SHORT SYMBOL QUANTITY INVESTMENT DESCRIPTION PRICE MARKET VALUE STOCKS M Long COMB 2400 THREE COM CORP 39.0000 $93,600.00 OPTIONS M Short WTHAH 24 CALL THREE COM CORP 12.7500 ($30,600.00) $40.00 ADJ EXP 01/17/98 Net Portfolio Value $63,000.00 ACCOUNT TRANSACTION DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT '•"• Opening Cash Balance ($66,496.08) 08/01 08/2 Stock Split 100 ALLIANCE SEMICONDUCTOR 3 Cover Short 08/22 2 CALL ALLIANCE SEMICOND 5.7500 ($1,755.00) $46.625 ADJ EXP 01/20/96 08/28 Stock Split 1200 THREE COM CORP • • • CONTINUED ON NEXT PAGE • • (D then.e sch"b a co, Inc. SEE REVERSE SIOE Fnp CTATC'uc,dT MenoueTin., Member. New Yod ft* EmInenpo' Inc. um _..?............. -..... Charleslchwah SCHWAB ONE ACCOUNT State ent ACCOUNT NUMBER TAX-ID-NUMBERPERIOD COVERED- LAST STATEMENT PAGE HG 8074-5886 208-58-9350 AUG 1 - AUG 31 1995 JUL 1995 2 ACCOUNT-TRANSACTION-DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 08/28 Options Frwd Splt 12- CALL THREE COM CORP $40.00 ADJ EXP 01/17/98 08/30 Margin Interest INTEREST 07/28THRU 08/29 ($492.12) 08/31 Sold 08/28 300- ALLIANCE SEMICONDUCTOR 40.5000 $12,125.00 Ending Cash Balance ($56,618.20) TRADES PENDING SETTLEMENT TRADE DATE ACTION QUANTITY DESCRIPTION PRICE SETTLE DATE 08/31 Bought 450 THREE COM CORP 50 THREE COM CORP INTEREST CALCULATION DETAIL FROM JUL 28 1995 THROUGH AUG 29 1995 NBR NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT DATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST 07/28 33 (66,868.35) INTEREST RATE AMOUNT .00 .00 (67,098.811 8.0001 ($492.12) Margin Interest Charged ($492.12) All balances are average daily balances OPEN ORDERS AS OF AUG 31_1995 DATE LATEST ENTERED ACTION WILL EXPIRE QUANTITY DESCRIPTION LIMIT PRICE PRICE 08/31/95 Sell 10/30/95 5 CALL THREE COM CORP 13.1250 12.7500 $40.00 ADJ EXP 01/17/98 Orders expire as of close of business on expiration date listed above. 39.2500 09/06 39.2500 09/06 AIN"I.._ Nn, York ala# Ead mrI,m Ina am Q7 ti1a11M aCfIMCa Co.. Inc. SEE REVERSE SIDE Fn?p RTnrvi8F4T Iurnouenroi ..,._. _........... Charles'Schwab SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX-ID-NUMBERPERIOD-COVERED- LAST STATEMENT -PACE- HG 8074-5886 208-58-9350 SEP 1 - SEP 30 1995 AUG 1995 1 TITLE-OF-ACCOUNT OFFICE SERVING YOUR ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 17 SOUTH MARKET SQUARE STE IA HARRISBURG PA 17101 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT: STATUS OF KEY VALUES AS OF SEP 30 1995 CONTACT YOUR BRANCH •'• ACCOUNT TRANSACTION SUMMARY Investments Owned $155,762.50 OPENING CASH BALANCE ($56,618.20) Investments Short ($49,575.00) Investment Sales $41,279.11 Net Portfolio Value $106,187.50 Total Credits $41,279.11 Ending Cash Balance ($94,326.72) Investment Purchases ($77,287.001 TOTAL ACCOUNT VALUE $11,860.78 Checks Written ($1,183.94) Change in Value from 08/95 $5,478.98 Margin Interest Charged ($516.69) Total Debits ($78,987.63) Margin Account Equity $12,003.00 ENDING CASH BALANCE ($94,326.72) Checkwrlting or VISA Limit $3,649.04 INVESTMENT-INCOME-SUMMARY RATE SUMMARY AS OF 09/30_ SOURCE OF INCOME CURRENT PERIOD YEAR TO DATE TEF Yield* 3.431 STF Yield* 4.941 Schwab 1 Yie ld 4.971 TOTAL INVESTMENT INCOME $.00 $.00 Margin Loan Rate 8.001 to 9.001 ' 7 Day Annualized Yield. Please see reverse for more information. MARGIN_INTEREST CHARGED ($516.69) ($3,563.63) PORTFOLIO POSITION DETAIL S LONG/ QUOTE LATEST CATEGORY T SHORT SYMBOL QUANTITY INVESTMENT DESCRIPTION PRICE MARKET VALUE STOCKS M Long MU 300 MICRON TECHNOLOGY INC 79.3750 $23,812.50 M Long COMB 2900 THREE COM CORP 45.5000 $131,950.00 OPTIONS M Short WGYAD 3 CALL MICRON TECHNOLOGY 15.3750 ($4,612.50) $120 EXP 01/17/98 M Short WTHAJ 14 CALL THREE COM CORP 11.6250 ($16,275.00) $50 EXP 01/17/98 M Short WTHAH 15 CALL THREE COM CORP 19.1250 ($28,687.50) Net Portfolio Value $106,187.50 ACCOUNT-TRANSACTION- DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT •'••• Opening Cash Balance ($56,618.20) . • • CONTINUED ON NEXT PAGE MWr bu: NM York stock E=hW". W. W C tMrlw 6dw8bA Co.. Inc. SEE REVERSE SIDE FOR STATFraFNT INM014ATInN -•....................... ..... Charles* Schwab SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX_ID NUMBER PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-50-9350 SEP 1 - SEP 30 1995 AUG 1995 2 ACCOUNT-TRANSACTION-DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 09/06 09/06 Bought Bought 08/31 08/31 450 50 THREE COM CORP HR 39.2500 ($17,698.50) 09/07 Short Sale 09/06 5- T EE COM CORP CALL THREE COM CORP 39.2500 13.1250 ($1,966.50) $6,532.28 $40.00 ADJ EXP 01/17/98 09/12 09/15 Bought Short Sale 09/07 09/14 300 3- MICRON TECHNOLOGY INC 90.5000 ($27,175.00) CALL MICRON TECHNOLOGY 30.6250 $9,157.19 $90 EXP 01/17/98 09/18 Funds Paid SCHWAB ONE CHECK 0110 ($929 00) 09/20 Cover Short 09/19 14 CALL THREE COM CORP 15.7500 . ($22,092.00) $40.00 ADJ EXP 01/17/98 09/21 Short sale 09/20 14- CALL THREE COM CORP 14.5000 $20,257.32 $50 EXP 01/17/98 09/25 Cover Short 09/22 3 CALL MICRON TECHNOLOGY 27.7500 ($8,355.001 $90 EXP 01/17/98 09/25 Short Sale 09/22 3- CALL MICRON TECHNOLOGY 17.8750 $5,332.32 $120 EXP 01/17/98 09/28 Margin Interest INTEREST 08/30THRU 09/27 ($516 69) 09/28 Funds Paid SCHWAB ONE CHECK 0111 . ($254.94) Ending Cash Balance ($94,326.72) TRADES PENDING SETTLEMENT TRADE DATE ACTION 09/29 Cover short QUANTITY DESCRIPTION 15 CALL THREE COM CORP $40.00 ADJ EXP 01/17/98 PRICE SETTLE DATE 19.0000 10/02 INTEREST CALCULATION DETAIL FROM AUG_30 1995 THROUGH_SEP 27_1995 NBR NET BALANCE CASH ACCT DEBIT MARKET VALUE 9ALANCE SUBJECT INTEREST DATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 08/30 29 (79,950.15) .00 .00 (80,166.68) 8.0001 0516.69) Margin Interest Charged 1$516.69) All balances are average daily balances CHECKWRITING TRANSACTION DETAIL CHECK NBR AMOUNT ENTRY DATE CHECK NBR AMOUNT ENTRY DATE 0110 (929.00) 09/18 0111 (254.94) 09/26 Checks Written ($1,183.941 m cnw. scn«.e a co.. Inc k4mbor. N" York Monk EMrnge. M rm SEE REVERSE SIDE FOR STAT17MENT INrongfiATIn4 • e.,......a ....., ..w..... .._..... TITLE-OF-ACCOUNT OFFICE SERVING YOUR ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 11 SOUTH MARKET SQUARE STE IA HARRISBURG PA 17101 717-233-1154 see FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH ••• STATUS OF KEY VALUES AS OF OCT_31_1995 Investments owned $157,300.00 Investments Short ($44,225.00) Net Portfolio Value $113,075.00 Ending Cash Balance ($106,737.75) TOTAL ACCOUNT VALUE $6,337.25 Change in Value from 09/95 ($5,523,53) Margin Account Equity $6,337.00 Checkwriting or VISA Limit $139.28 ACCOUNT TRANSACTION SUMMARY OPENING CASH BALANCE Investment Sales Total Credits Investment Purchases Margin Interest Charged Total Debits ENDING CASH BALANCE ($94,326.72) $38,403.71 $38,403.71 ($50,110.501 ($704.24) 050,814.741 ($106,737.75) INVESTMENT-INCOME-SUMMARY RATE SUMMARY AS OF 10/31_ SOURCE OF INCOME CURRENT PERIOD YEAR TO DATE TEF Yield* 3.251 STF Yield* 4.911 Schwab 1 Yield 4.931 TOTAL INVESTMENT INCOME $.00 $.00 Margin Loan Rate 8.001 to 9.001 • 7 Day Annualized Yield. Please see reverse for more information. MARGIN INTEREST CHARGED 1$704.241 ($4,267.87) --------------* PORTFOLIO POSITION DETAIL S LONG/ QUOTE CATEGORY T SHORT SYMBOL QUANTITY STOCKS M Long KLIC 600 M Long COMB 2900 OPTIONS M Short WTHAJ 29 Net Portfolio Value INVESTMENT DESCRIPTION KULICKE i SOFFA IND INC THREE COM CORP CALL THREE COM CORP $50 EXP 01/17/98 $113,075.00 LATEST PRICE MARKET VALUE 35.0000 $21,000.00 47.0000 $136,300.00 15.2500 (344,225.00) ACCOUNT-TRANSACTION-DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT '•••• opening Cash Balance ($94,326.72) 10/02 Cover Short 09/29 15 CALL THREE COM CORP 19.0000 ($28,545.00) $40.00 ADJ EXP 01/17/98 • • CONTINUED ON NEXT PAGE (0 Clines sc"ba Co Inc rue Del more VWTA r New Yaot stock Exchance. Ine, am ACCOUNT NUMBER TAX-ID-NUMBER -PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 OCT 1 - OCT 31 1995 SEP 1995 1 ACCOUNT TRANSACTION DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT 10/03 Short sale 10/02 15- CALL THREE COM CORP 12.2500 $16,329.38 10/10 Cover Short 10/09 3 $50 EXP 01/17/98 CALL MICRON TECHNOLOGY 11.6250 ($3,517.50) 10/12 Sold 10/09 300- $120 EXP 01/17/98 MICRON TECHNOLOGY INC 67.0000 $20 074 33 10/23 10/30 Bought 10/16 Margin Interest 600 KULICXE i SOFFA IND INC INTEREST 09/28THRU 10/29 30.0000 , . ($18,048.00) Ending cash Balance $704,24) (510 ,737.75) INTEREST CALCULATION DETAIL FROM SEP_28 1995 THROUGH OCT 29 1995 NBR NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT INTEREST DATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 09/28 32 (98,692.81) .00 .00 (99,024.62) 8.0001 ($704.24) Margin Interest Charged ($704.24) All balances are average daily balances m CMtlnaefi baCa.Ina ece ommoec e.-. ren ....... ,.......... A1~. Nw Ynt a toll Eal A". kv-&M ACCOUNT NUMBER TAX-ID-NUMBER -PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 OCT 1 - OCT 31 1995 SEP 1995 2 OO a1 lll W JIrt. ? ixwelt c fi s ?" f of ;r 4` ??LX t6 v mue v ,TS ek kS 1V Y , ?t7 ,YS J 5 Y ? ?:,J; 3'.,{t ti } Y ?Jy Sf it PX >Z' 55 ? . t p x i +TtgJ1+ ? - Mk- n ?" ? t ?y ??.? F5*w" "?s'sx` dot a 4° "5 24 <1 rY 5a6 .... L*' n y F: i yf Y?. ? rt ? r t { f R .?1 K f L { ei ? Y.?. . 1 S . ^z: ? Y t t?R> J < ?w ? e JF . y tit <t a t s e't r a j=1 t ? to t a ¥ s e t? es S SCHWAB ONE ACCOUNT Statement ACCOUNT NUMBER TAX-ID-NUMBER _PERIOD _COVERED _ LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 NOV 1 - NOV 30 1995 OCT 1995 1 TITLE OF ACCOUNT OFFICE-SERVING-YOUR-ACCOUNT BRIAN J SHEAFFER 10 HINES DRIVE EAST BERLIN PA 17316-9229 17 SOUTH MARKET SQUARE STE IA HARRISBURG PA 17101 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH ••• STATUSOF KEY VALUES AS OF NOV 30 1995 Investments owned $132,675.00 Investments Short ($41,600.00) Net Portfolio value $91,075.00 Ending Cash Balance ($92,671.76) TOTAL ACCOUNT VALUE ($1,596.76) Change in Value from 10/95 ($7,934.01) Margin Account Equity $1,596.00 Checkwriting or VISA Limit S.00 INVESTMENT-INCOME-SUMMARY SOURCE OF INCOME ACCOUNT-TRANSACTION SUMMARY OPENING CASH BALANCE Investment Sales Total Credits Investment Purchases Funds Withdrawn Margin Interest Charged Total Debits ENDING CASH BALANCE CURRENT PERIOD YEAR TO DATE TOTAL INVESTMENT INCOME $.00 $.00 MARGIN-INTEREST-CHARGED ($650.52) ($4,918.39) PORTFOLIO POSITION DETAIL ($106,737.75) $32,121.51 $32,121.51 ($16,905.00) ($500.00) ($650.52) 018,055.521 ($92,671.76) RATE SUMMARY AS OF 11/30_ TEF Yield* 3.201 STF Yield* 4.931 Schwab 1 Yield 4.891 Margin Loan Rate 8.001 to 9.001 • 7 Day Annualized Yield. Please see reverse for more information. S LONG/ QUOTE LATEST CATEGORY T SHORT SYMBOL QUANTITY INVESTMENT DESCRIPTION PRICE MARKET VALUE STOCKS M Long COMS 2900 THREE COM CORP 45.1500 $132 675.00 OPTIONS M Short WTHAJ 19 CALL THREE COM CORP 15.2500 , ($28,975.00) S50 EXP 01/17/98 M Short WTI= 10 CALL THREE COM CORP 12.6250 ($12,625.00) $55 EXP 01/17/98 Net Portfolio Value $91,075.00 ACCOUNT TRANSACTION DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT " ••' Opening Cash Balance ($106,737.75) 11/06 Sold 11/01 600- KULICKE i SOFFA IND INC 29.5000 $17,652.00 • CONTINUED ON NEXT PAGE NN, Yak Sb* Euhwq ,kv- uq m CauW BUrnO a Co.. Ins SEE REVERSE SIDE FOR STATEMENT INFORMATION dAM0nnn081 uail and anion. I m0 SCHWAB ONE ACCOUNT Statement ACCOUNT-NUMBER TAX ZD NUMBER PERIOD COVERED _ _ _ LAST STATEMENT ? HG 8074-5886 208-58-9350 NOV 1 - PApE - NOV 30 1998 OCT 1995 2 ACCOUNT-TRANSACTION-DETAIL DATE TRANSACTION QUANTITY DESCRIPTION 11/06 Cover short 11/03 10 PRICE AM OUNT 11/10 Short sale 11/09 10_ CALL THREE COM CORP 16.8750 $50 EXP 01/17/98 ($16,905,00) 11/14 Funds Paid CALL THREE COM CORP 14.5000 EXP 01/17/98 $14,469.51 11/29 Margin Interest W/DRAWAL MARGIN FUNDS INTEREST 10/30THRU 11/28 4500.00) Ending Cash Balance 1 650,52) ($92,671.76) INTEREST CALCULATION DETAIL_FROM OCT_30 1 995 THROUGH NOV 28 DATE NET CASH D YS 14ARGZ000NT OR FREECCREDITDEBIT 1995 SH S O ?? 10/30 30 (97,251.03) ORT OF ALES T INTTEREST RATE UNNTTST Her in All b .00 Interest Charged ($650 52) 00 (97,567.11) 8.0001 ($650.52) . alances are average daily balances m ChrMe arJnwo a CO.. Inc SEE REVERSE SIDE FOR STATEMENT INFORMATION mwWw Now Vat 914 p.tm4K of w emnwt,tock ate ea-taliHet? ? -. y 4S, Yi t l MID Exhibft D , p f .?.,` Ina" :t g ` ` v ? .. ,. a .^. C " pfi ?3. j j a .e R SY s 1 a t .. 'k .. Charles'khwab BROKERAGE ACCOUNT Statement ACCOUNT-NUMBER TAX-ID-NUMBER -PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 DEC 1 - DEC 31 1995 NOV 1995 1 TITLE-OF-ACCOUNT OFFICE SERVING YOUR ACCOUNT BRIAN J SHEAFFER 17 SOUTH MARKET SQUARE STE IA 10 HINES DRIVE HARRISBURG PA 17101 EAST BERLIN PA 17316-9229 717-233-1154 ••• FOR QUESTIONS ABOUT THIS STATEMENT: CONTACT YOUR BRANCH ••• STATUS-OF-KEY-VALUES-AS-OF-DEC-31-1995 Net Portfolio Value $.00 Ending Cash Balance ($9,526.80) TOTAL ACCOUNT VALUE ($9,526.80) Change in Value from 11/95 ($7,930.04) Margin Account Equity $311.00 Total Funds Available $.00 ACCOUNT TRANSACTION SUMMARY OPENING CASH BALANCE Investment Sales Total Credits Investment Purchases Margin Interest Charged Total Debits ENDING CASH BALANCE INVESTMENT-INCOME-SUMMARY SOURCE OF INCOME CURRENT PERIOD YEAR TO DATE TOTAL INVESTMENT INCOME $.00 $.00 MARGIN-INTEREST-CHARGED ($310.75) ($5,229.14) ------------------------------- ACCOUNT TRANSACTION DETAIL ---------------- DATE TRANSACTION QUANTITY DESCRIPTION PRICE AMOUNT ••••• Opening Cash Balance ($92,671.76) 12/04 Short Sale 12/01 7- CALL THREE COM CORP 13.3750 $9,332.18 $50 EXP 01/17/98 12/04 Cover Short 12/01 10 CALL THREE COM CORP 12.6250 ($12,655.00) $55 EXP 01/17/90 12/06 Sold 12/01 300- THREE COM CORP 44.7500 $13,400.00 12/06 Short Sale 12/05 10- CALL THREE COM CORP 13.8750 $13,844.53 $45 EXP 01/17/98 12/06 Cover short 12/05 14 CALL THREE COM CORP 12.2500 ($17,192.00) $50 EXP 01/17/98 12/07 Cover Short 12/06 10 CALL THREE COM CORP 11.6250 ($11,655.00) $50 EXP 01/17/98 12/07 Cover short 12/06 2 CALL THREE COM CORP 11.6250 ($2,331.00) $50 EXP 01/17/98 12/08 Cover short 12/07 10 CALL THREE COM CORP 11.5000 ($11,530.00) $45 EXP 01/17/98 12/11 Sold 12/06 1200- THREE COM CORP 39.6250 $47,454.00 12/11 Sold 12/06 400- THREE COM CORP 41.0000 $16,368.00 • • • CONTINUED ON NEXT PAGE Mwbw. N" York fork EadunN•, Inc. Wb (D Chin" 6tlnnb a Co.. Inc. SEE REVERSE SIDE FOR STATEMENT INFORMATION ohm ork+dbW Work Wm eooon.+e anoerr 92671. 8,818.71) $13 $138,816.71 055,363.001 ($310.75) ($55,673.75) ($9,526.80) RATE SUMMARY AS OF_12/31_ MMF Yield* 5.10% TEF Yield* 3.921 GSF Yield* 5.011 STF Yield* 4.891 Schwab 1 Yield 4.891 Margin Loan Rate 7.751 to 8.751 • 7 Day Annualized Yield. Please see reverse for more information. Charles' BROKERAGE ACCOUNT Statement ACCOUNT-NUMBER TAX-ID-NUMBER -PERIOD-COVERED- LAST STATEMENT _PAGE_ HG 8074-5886 208-58-9350 DEC 1 - DEC 31 1995 NOV 1995 2 ACCOUNT-TRANSACTION-DETAIL DATE TRANSACTION QUANTITY DESCRIPTION PRICE )MOUNT 12/12 12/28 Sold 12/07 1000- Margin Interest THREE COM CORP INTEREST 11/29THRV 12/27 38.5000 $38.420.00 Ending Cash Balance ($310.75) ($9,526.80) INTEREST CALCULATION DETAIL FROM NOV 29 1995 THROUGH DEC 27 1995 NBR NET BALANCE CASH ACCT DEBIT MARKET VALUE BALANCE SUBJECT INTEREST DATE DAYS MARGIN ACCOUNT OR FREE CREDIT OF SHORT SALES TO INTEREST RATE AMOUNT 11/29 12/11 12 (95,662.01) 1 (2,304.01) .00 (98,069.62) 8.0001 ($261.55) 12/12 (38,420.00) 14 (9,216.05) 00 (47,897.55) 8.5001 ($11.31) 12/26 .00 2 (9,216.05) .00 (9,502.76) 9.0001 (333.27) ,00 (9,216.05) .00 (9,523.29) 8.7501 (414.62) Margin Interest Chargad ($310.75) All b alances are avarage daily balances mawwadwoACo..Im SEE REVERSE SIDE FOR STATEMENT INFORMATION gip! eoNi Yo* 8100 sbek WW avow I AMENDED AWARD NASD Regulation, Inc. CASE: 98-02728 Charles Schwab & Co., Inc., claimant vs. Brian J. Sheaffer, respondent. ATTORNEYS: For claimant appeared Linda A. Gallagher, Esq., - Chicago, IL. Respondent appeared Pro Se. - East Berlin, PA. DATE FILED: 7/29/98 CASE SUMMARY: Claimant alleged failure to meet margin maintenance requirements resulting in debit balance in customer's account. Claim Data Claim: $9,216.05 Interest: $.00 Filing Fee: $875.00 Costs: $25.20 Award Data Award: $9,216.05 Interest: $.00 Filing Fee: $575.00 Costs: $25.20 AWARD: The undersigned arbitrator has decided and determined in full and final resolution of the issues submitted for determination as follows: 1) Respondent is liable and shall pay to the claimant $9,216.05. 2) All other relief requests are denied. 3) The $575.00 filing fee previously deposited with the National Association of Securities Dealers Regulation. Inc. by the claimant, shall be retained by NASD Regulation, Inc. 4) Respondent is liable and shall pay to the claimant $575.00 as reimbursement of the filing fee. 5) Respondent is liable and shall pay to the claimant $25.20 as reimbursement of costs. OTHER FEES: Pursuant to Rule 10333 of the Code, claimant Charles Schwab & Company, Inc. has paid to NASD Regulation. Inc. the $300.00 Member Surcharge previously invoiced. ARBITRATOR'S REPORT: Claimant's pending motion to compel is rendered moot. Page Two Award 98.02728 AFFIRMATION I, Paul A. Yates, do hereby affirm, upon my oath as arbitrator that I am the individual described herein who executed this instrument. which is my oath and award. Paul A. Yates February 7, 1999 Date of award i s? . z frv ? Mi 44 f.? p ti{ sr r'?S ' rl ,,l E h(blt F x 5 M1 r a 1 i e ter,° ? a $ t f a? V r {y I (b) After a panel has been appointed no new or different pleading may be filed except for a responsive pleading as provided for in (a) above or with the panel's consent. /Amended eff. Oct. 1. 1984: Apr. 16. 1991.1 10329. Reopening of Hearings Where permitted by applicable law, the hear- ings may be reopened by the arbitrators on their own motion or at the discretion of the arbitrators upon application of a party at any time before the award is rendered 10330. Awards (a) All awards shall be in writing and signed by a majority of the arbitrators or in such manner as is required by applicable law. Such awards may be entered as a judgment in any coup of competent jurisdiction. (b) Unless the applicable law directs other- wise. all awards rendered pursuant to this Code shall be deemed final and not subject to review or appeal. (c) The Director of Arbitration shall endeav- or to serve a copy of the award: (1) by registered or certified mail upon all parties, or their counsel. at the address of record: or, (2) by personally serving the award upon the parties: or. (3) by fil- ing or delivering the award in such manner as may be authorized by law. (d)The arbitratons) shall endeavor to render an award within thim, 130) business days from the date the record is closed (e) The award shall contain the names of the parties, the name of counsel. if any. a summary of the issues, including the typeis) of any security or product. in controversy, the damages and other relief requested the damages and other relief awarded a statement of any other issues resolved. the names of the arbitrators. the dates the claim was filed and the award rendered. the ,lumber and dates of hearing sessions. the loca- tion of the hearings. and the signatures of the arbitrators concurring in the award (f) All awards and their contents shall be made publicly available. (g) Fees and assessments imposed by the arbitrators under Rules 10205 and 10332 shall be paid immediately upon the receipt of the award by the parties. Payment of such fees shall not be deemed ratification of the award by the parties. (h) All monetary awards shall be paid within thirty (30) days of receipt unless a motion to vacate has been filed with a court of competent jurisdiction. An award shall bear interest from the date of the award: (1) if not paid within thirty (30) days of receipt. (2) if the award is the sub- ject of a motion to vacate which is denied or (3) as specified by the arbitrator s) in the award Interest shall be assessed at the legal rate. if any. then prevailing in the state where the award was rendered. or at a rate set by the arbitrators). /Amended e(f. blay 10. 1989: amended b+• SR-NASD- 91.09 eff. Apr. 26.1991: amended by SR-NASD-90-62 eff. Afav 7.1991: amended by SR•NASD.91.49 eff. Ian 2, 1992: amended ejf. Oct. 1. 1993.1 10331. Incorporation by Reference This Code shall be deemed a pan of and incorporated by reference in every agreement to arbitrate under the Rules of the Association including a duly executed Submission Agreement. /Amended e ff 31av 7. 1991.1 10332. Schedule of Fees for Customer Disputes (a) At the time of filing a Claim. Counterclaim. Third-Pam Claim or Cross- 4 ?'- CkI w -.i CJ W l? d"r °.I i CHARLES SCHWAB & CO., INC. : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA V. : CIVIL ACTION LAW BRIAN SHEAFFER, : NO. 99-6232 CIVIL TERM Defendant TO THE PROTHONOTARY OF SAID COURT: Please enter judgment in favor of the Plaintiff and against the Defendant, Brian Shaeffer, In the above-captioned matter, pursuant to the Court Order of October 18, 1999 In the amount of $9,216.05 in principle, $600.20 in arbitration fees and costs and $434.75 In Interest from the date of the award on February 3, 1999 for a total judgment of $10,251.00. Date Respectfully Submitted TURO LAW OFFICES Ron Turo, Esquire 32 South Bedford Street Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiff Cv ?? t ti - r, [?`jf" ¦ CHARLES SCHWAB 8: CO., INC. Plaintiff, V. BRIAN SHEAFFER, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : NO. 04-4765 CIVIL TERM PRAECIPE FOR ENTRY OF JUDGMENT TO THE PROTHONOTARY: Please enter judgment in favor of Plaintiff, Charles Schwab & Co., Inc. and against Defendant, Brian Shaeffer in the amount of $13,039.17 ($10,251.00 In principal plus interest of $2788.17 from the date of judgment on November 3, 1999 to November 23, 2004). Defendants were served with Ten Day Notice on November 9, 2004. Answer has not been filed. Plus interest from November 23, 2004 until paid, costs and expenses of the suit and the costs of preserving the collateral and cost of this suit. Respectfully Submitted TURO LAW OFFICES , , 2z'? Date i and i ch, 'sq ire 28 South Pitt Street Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiff CHARLES SCHWAB & CO., INC. Plaintiff V. BRIAN SHEAFFER Defendant TO: Brian Shaeffer 10 Hines Drive East Berlin, PA 17316 DATE OF NOTICE: November 9, 2004 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION LAW NO. 044765 CIVIL TERM IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 Dale Re" spec tfully TUROLAW IA , Ron Pro, Esquire 28 South Pitt Street \Carlisle, PA 17013 (7L 245-9688 Attorney for Plaintiff ?d , .a N n N S ?y s tJ N U A '9M r ?}•??ayy7733: a,?M CHARLES SCHWAB Et CO., INC. Plaintiff, V. BRIAN SHEAFFER, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : NO. 04-4765 CIVIL TERM e - 603Z2 PRAECIPE FOR ENTRY OI= JUDGMENT TO THE PROTHONOTARY: Please enter judgment in favor of Plaintiff, Charles Schwab & Co., Inc. and against Defendant, Brian Sheaffer in the amount of $13,039.17 ($10,251.00 in'? principal plus interest of $2788.17 from the date of judgment on November 3, 1999 to November 23, 2004). Defendants were served with Ten Day Notice on November 9, 2004. Answer has not been filed. Plus interest from November 23, 2004 until paid, costs and expenses of the suit and the costs of preserving the collateral and cost of this suit. lvzr4' Z'# Date Respectfully Submitted TURO LAVV OFFICES 0 K00 i and ch, sgwre 28 South Pitt Street Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiff CHARLES SCHWAB & CO., INC. : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION LAW BRIAN SHEAFFER : NO. 04-476.5) CIVIL TERM Defendant TO: Brian Sheaffer 10 Hines Drive East Berlin, PA 17316 DATE OF NOTICE: November 9, 2004 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGME14T MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOST- YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 It q 0 ty R`esp ' `fUROrullySubm W OFFI Ron -o, Esquire 28 S h Pitt Street `kCarlisle, PA 17013 ?TJZ) -245-9688 Attorney for Plaintiff O 1A ' i a HIM ??/ C^ r yrJ m ..3. rn tU r r 1? Ilk