Lottery Call Risk Assessment

The lottery process for a partial call, pre-refund or defeasement is a random process designed to allocate funds on a called security in a fair and equitable manner. The lottery process is based on a mathematical formula that randomly selects accounts holding a called security for allocation. For favorable calls, firm-owned accounts, as well as accounts of associated persons of LPL are excluded until all client positions have been allocated.  A favorable call occurs when the call price exceeds the current market price reflected in the random process application. If a price is not available for the called security, the call is presumed favorable and processed as such. If a call is not deemed favorable to the security-holder, firm and associated persons' accounts are included in the lottery. Additional details concerning the actual lottery process will be provided upon request.  If you would like such information in paper format, please contact your LPL financial advisor.