1.        You agree and understand that Sutton Bank will serve as legal custodian for you Brokerage Account within your HSA.  You further agree to the following terms:

a.        Contributions.  You agree to make all contributions to your HSA directly into your Sutton Bank Checking / Debit Account.  You understand and acknowledge that you cannot make contributions directly into your Brokerage Account.

b.        Distributions.  You agree to take all distributions from your HSA through your Sutton Bank Checking / Debit Account. You agree and acknowledge that you cannot take distributions directly from your Brokerage Account.  You agree and acknowledge that this limitation includes that you cannot access assets in your Brokerage Account via checking or debit card; you must first transfer the funds to your Sutton Bank Checking / Debit Account.   This further requires that you must first liquidate your assets from your Brokerage Account and then transfer the money into your Sutton Bank Checking / Debit Account prior to transferring your HSA assets to a new HSA custodian or trustee.

c.        Moving Money.  You agree that the only method of moving money into and out of your Brokerage Account is through ACH transfer between your Brokerage Account and your Sutton Bank Checking / Debit Account as provided for on both optionsXpress' and Bank Name's web sites.   You agree that you are only allowed to move dollars between the accounts and that you are not permitted to transfer securities in-kind.

d.        Online Access. You agree and understand that you will have separate online access to your Brokerage Account and that it will not be aggregated with your online access to your Sutton Bank Checking / Debit Account.  You acknowledge that your only method of executing trades is through your access to your optionsXpress online Brokerage Account.  The balances will be kept separate for most purposes with one exception being an annual Fair Market Value report that Bank Name will provide you early in the year showing your combined balance on December 31 of each year.  To the extent other statements are provided, you may receive separate statements for your Brokerage Account and your Sutton Bank Checking / Debit Account and the statements may reflect your balance in the respective accounts, not the aggregate balances.  

e.        Custodial Nature of Account. You understand that the assets held in your Brokerage Account will be titled and held in the name of the Custodian for your benefit; for example,  "Sutton Bank as Custodian for Customer Name."  You further understand that HSAs are required to have a custodian; however, the custodian's role is limited to administrative recordkeeping as required by the IRS due to the tax favored nature of HSAs and the Custodian does not provided any fiduciary services or investment advice.

2.        Trading Limitations for this Brokerage Account.  In addition to other applicable limitations pursuant to law, the optionsXpress Standard Terms and Conditions Agreement or your HSA Custodial Agreement, You agree that this Brokerage Account is subject to the following limitations.

a.        Margin Accounts.  You are not permitted to use a margin account for your HSA.

b.        Short Sales.  You are not permitted to engage in uncovered short sales for your HSA.

c.        Options.  While it is permissible to transact options in an HSA, you must be aware of the unique qualities of an HSA. Regulations prohibit margin transactions in an HSA. Therefore, holders of long options in an HSA Account MUST have a cash balance equal to or greater than the requirement to exercise the options in the Brokerage Account on the last day prior to expiration or we may close out the position in the open market on a "best" efforts basis prior to the market close.

d.        Pledging of Your HSA.  You are not permitted to pledge your HSA as security for a loan.

e.        No Joint Accounts.  HSAs are individual accounts and are not allowed to be held as joint accounts.

3.        Miscellaneous. 

a.        Communication.  With respect to your Brokerage Account, you agree to direct your communication and questions to optionsXpress. 

b.        Headers.   The titles, headings, or captions in the paragraphs or sections of this Addendum are inserted for the convenience of reference only and shall not constitute a part of this Addendum.

c.        Addendum Supersedes Standard Terms.   This Addendum modifies your optionsXpress Standard Terms and Conditions and you are subject to both this Addendum and the optionsXpress Standard Terms and Conditions.   To the extent any inconsistencies between the agreements exist, this Addendum shall control.

Fees and Balances: Sutton Bank will charge a monthly fee of $3 for the HSA investment account. Sutton Bank requires you retain a minimum balance of $1500 single/ $3000 family in your HSA before you opening and transfering funds to an investment account.  This is a one-time liquidity requirement to ensure you have adequate funds available for your medical needs, and you may spend those funds down without consequence.  When you make your next-year contribution, you are not required to bring the balance up to the minimums again before moving additional funds to the investment account.

Non-deposit investment products offered through optionsxpress Holding are:

Not a deposit or other obligation of, or guaranteed by the bank;

                Not insured by the Federal Deposit Insurance Corporation

                Subject to investment risk, including the possible loss of value.