MARGIN ACCOUNTS

Customer hereby represents warrants and agrees that, with respect to trading on margin in its Account(s) (its "Margin Accounts"):

43. Initial Margin and Margin Maintenance Requirements. Customer shall at all times maintain such securities and other property in its Account(s) for margin purposes as required from time to time by Clearing Broker in its sole discretion and/or pursuant to applicable laws, rules or regulations, whichever is greater. Customer agrees to promptly satisfy all margin and maintenance calls. Customer acknowledges that Clearing Broker is not obligated to (i) request additional securities or other property for margin purposes in the event the Account(s) falls below minimum margin requirements, (ii) notify Customer of any such deficiency or (iii) allow Customer time to deposit additional securities or other property. Clearing Broker reserves the right to increase margin maintenance requirements at any time in its sole discretion.

44. Interest Charges on Debit Balances. Customer agrees to pay interest on all debit balances on a non-aggregated basis in any Account(s). Interest shall be computed and charged in accordance with AOS and Clearing Broker’s standard methods and procedures in effect from time to time. In no event, however, shall such interest rate exceed the maximum rate permitted by applicable law. Customer understands that the interest charge made to its Account(s) at the close of a charge period will be added to the opening balance for the next charge period unless paid.

45. Pledge of Securities, Options and Other Property. All securities and other property now or hereafter held, carried or maintained by Clearing Broker in or for any Account(s) may, from time to time and without notice to Customer, be pledged, repledged, hypothecated or re-hypothecated by Clearing Broker, either separately or in common with other securities and other property, for any amount due in any Account(s), and Clearing Broker may do so without retaining in its possession or under its control for delivery a like amount of similar securities or other property.

46. Short Sales. Customer agrees that any "short" sale by Customer shall be so designated to AOS at the time such order is placed and Customer hereby authorizes Clearing Broker to mark any such order as being "short." Customer agrees that all short sale transactions shall be executed in a Margin Account. Customer understands that to facilitate a short sale, Clearing Broker must borrow the securities that Customer sells short. Customer agrees that if (i) market conditions change, (ii) Clearing Broker is unable to borrow the securities, (iii) the lender recalls the securities, or (iv) the provisions of NASD Rule 11830 (Mandatory Close Out for Short Sales) become applicable, Clearing Broker may attempt to re-borrow the securities, but Customer understands that Clearing Broker may need to cover the short position in the Account on the open market at the then-current market price and market conditions. Customer understands that it will be responsible for any resulting loss or associated costs incurred by Clearing Broker in connection with "short" transactions.

47. Loan of Securities. Clearing Broker is authorized to lend to itself, as principal or otherwise, or to others any securities held by Clearing Broker in any Account(s), and Clearing Broker shall have no obligation to retain in its possession and control a like amount of such securities. In connection with such loans, Clearing Broker may receive and retain certain benefits (including interest on collateral posted for such loans) to which Customer shall not be entitled. In certain circumstances, such loans may limit, in whole or in part, Customer’s ability to exercise voting rights of the securities lent.

48. Margin Loans. From time to time Clearing Broker may, at its sole discretion, make loans to Customer for the purpose of purchasing, carrying or trading in securities, options or other property ("Margin Loans"). Margin Loans will be made in a Margin Account. The minimum and maximum amount of any particular Margin Loan may be established by Clearing Broker in its sole discretion regardless of the amount of Collateral (as hereinafter defined) delivered to Clearing Broker, and Clearing Broker may change such minimum and maximum amounts from time to time without notice to Customer.

49. Ownership of Certain Securities. With respect to securities against which margin credit is extended to Customer: (i) Customer is not, and will not be, the beneficial owner of greater than three percent (3%) of the number of outstanding shares of any class of equity securities, and (ii) Customer does not and will not control, is not and will not be controlled by and is not and will not be under common control with, the issuer of any such securities. Customer will notify AOS and Clearing Broker immediately if the foregoing representation is or becomes inaccurate.

50. Credit Statement Policy. Customer acknowledges that Customer has received, read and understood the disclosure statement explaining the conditions under which interest will be charged to the Account(s), how rates of interest are determined, how debit balances are determined, and the methods of computing interest.

THIS AGREEMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE IN SECTION 15. CUSTOMER HAS READ AND UNDERSTOOD, AND AGREES TO BE BOUND BY, SUCH PREDISPUTE ARBITRATION CLAUSE.

Customer understands that any alteration to this Customer Agreement shall be ineffective to relieve Customer of Customer’s Obligations hereunder. This Agreement and the opening of any Account(s) including, without limitation, any Options Account(s) or Margin Account(s), shall not be effective until received and approved by AOS.



CLEARING BROKER DISCLOSURE STATEMENTS


MARGIN DISCLOSURE STATEMENT

 This disclosure is being provided to you by Clearing Broker in order to provide you with some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a Margin Account. Before trading stocks in a Margin Account, you should carefully review the section entitled "Margin Accounts" in the Customer Agreement provided to you. Please call AOS if you have any questions or concerns with your Margin Account.

When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Clearing Broker. If you choose to borrow funds from Clearing Broker, AOS will open a Margin Account for you with Clearing Broker. The securities purchased are the Clearing Broker’s collateral supporting your loan, and, as a result, Clearing Broker can take action, such as issue a margin call and/or sell securities in your Account(s), in order to maintain the required equity in your Account(s).

It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:

You can lose more funds than you deposit in the Margin Account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to Clearing Broker to avoid the forced sale of those securities or other securities in your Account(s).

Clearing Broker can force the sale of securities in your Account(s). If the equity in your Account(s) falls below the maintenance margin requirements under the law, or Clearing Broker’s higher "house" requirements, Clearing Broker can sell the securities in your Account(s) to cover the margin deficiency. You also will be responsible for any shortfall in your Account(s) after such a sale.

AOS or Clearing Broker can sell your securities without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that a firm cannot liquidate securities in their Account(s) to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interest, including immediately selling the securities without notice to the customer.

You are not entitled to choose which security in your Margin Account is liquidated or sold to meet a margin call. Because the securities are collateral for the Margin Loan, AOS or Clearing Broker has the right to decide which security to sell in order to protect its interests.

Clearing Broker can increase its "house" maintenance margin requirements at any time and is not required to provide you with advance notice. These changes in Clearing Broker’s policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause Clearing Broker to liquidate or sell securities in your Account(s).

You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to the extension.