Please read this Options Agreement carefully before you sign the Brokerage Options Form.
To: American Century Investments® brokerage options customers:
The following Options Agreement (the “Agreement”) is being provided to you by American Century
Brokerage, Inc. (American Century), and Pershing LLC, a subsidiary of The Bank of New York Mellon
Corporation (“Pershing”). American Century and Pershing are referred to as “us,” “we” or “our.” This
Agreement sets forth the terms and conditions governing options transactions in your American Century
brokerage account. By signing the Brokerage Options Form, you have agreed to the following terms and
conditions. Your access to and use of your account(s) and services is subject to compliance with all the terms
and conditions set forth in the Customer Agreement and this Agreement. You understand and acknowledge
that American Century may modify or change the terms and conditions in this Agreement by notifying you
of such change(s).
In consideration of American Century and Pershing accepting and carrying your account, you hereby
consent and agree to the following terms and conditions.
1. You understand that American Century is not acting as the agent of Pershing and that Pershing merely
accepts from American Century orders for the purchase and sale of securities and instructions relating to
other property in your account and that Pershing is not in a position, nor undertakes any responsibility,
to give advice, make suitability determinations, supervise or oversee American Century’s handling of the
responsibilities undertaken by American Century.
2. You understand and acknowledge that options trading may be highly speculative in nature. You also
understand that on certain days, options trading may cease and could result in a financial loss, and you
agree to hold us harmless for such loss.
3. You recognize that by writing or selling an options contract (such as a call, put or straddle) without
depositing the underlying security, your risk of loss is potentially unlimited. You agree to honor all
assignments and deliver the underlying security or the required funds in the prescribed time to us and
upon your failure to do so in the proper time, you hereby authorize us to act as agent for you and to buy
in or sell out such securities at the current market price or otherwise act to properly margin or complete
your obligation. You agree to pay American Century a commission or fee for such service and to
reimburse us for any loss incurred in connection therewith, and you authorize us to debit your account
for all such amounts.
4. You understand and agree that you are responsible for making all decisions about transactions effected
in any of your accounts with us and that each order you enter (to buy or to sell) must be complete
information about security, quantity, price and duration of the order.
5. You are willing and able to assume the financial risks and hazards of options trading and agree that you
will in no way hold us responsible for any losses.
6. You understand that options transactions are subject to the rules, regulations, customs and usages of
the Options Clearing Corporation (“OCC”) and of the registered national securities exchange, national
securities association, clearing organization or market where such transaction was executed. You agree to
abide by such rules, regulations, customs and usages and that you will both, individually and in concert
with others, not exceed any applicable position exercise limits imposed by such exchange, association,
clearing organization or other market with respect to options trading.
7. If you do not satisfy, on a timely basis, your money or security calls, you authorize both or either of us,
in our sole discretion, and without notification, to take any and all steps we deem necessary to protect
ourselves (for any reason) in connection with options transactions in your account, including the right to
buy and/or sell (including short or short exempt) for your account and risk any part or all of the shares
represented by options handled, purchased, sold and/or endorsed by us for your account or to buy
for your account and risk any options as we may deem necessary or appropriate. You will reimburse
us for any and all expenses or losses incurred in this connection.
8. You bear full responsibility for taking action to exercise an options contract; provided, however, that with
respect to certain expiring options, we are authorized to permit exercise by exception to take place
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automatically pursuant to the rules of the OCC as in effect from time to time, unless you specifically
advise us to the contrary in writing. This procedure affects options which are in the money by a
predetermined amount as set forth in the rules of the OCC. Additional information regarding this
procedure is available to you upon your written request.
9. In addition to the terms and conditions hereof, your options account will be subject to all of the terms
and conditions of all other agreements which have at any time been (or will be) entered into with us
relating to the purchase and sale of securities except to the extent that such other agreements are contrary
to or inconsistent with this Agreement.
10. This Agreement shall apply to all puts or calls which we may have executed, purchased, sold or handled
for any of your accounts, and also shall apply to all puts or calls which we may hereafter purchase, sell,
handle or execute for any of your accounts.
11. You agree to advise American Century Brokerage, Inc. of any changes in your financial situation or
investment objective insofar as you deem such changes to be material to your options transactions.
12. You have received the most recent Options Risk Disclosure Document and have read and understand the
information contained in that document.
13. You understand that we assign exercise notices on a random basis. You understand that upon your
request, we will provide you with further information regarding the procedure used to assign
14. You are aware of the following:
• All Parties to this Agreement are giving up the right to sue each other in court, including the right to a
trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
• Arbitration awards are generally final and binding; a party’s ability to have a court reverse or modify an
arbitration award is very limited.
• The ability of the parties to obtain documents, witness statements and other discovery is generally more
limited in arbitration than in court proceedings.
• The arbitrators do not have to explain the reason(s) for their award.
• The panel of arbitrations will typically include a minority of arbitrators who were or are affiliated with
the securities industry.
• The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some
cases, a claim that is ineligible for arbitration may be brought in court.
• The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be
incorporated into this agreement.
Agreement to Arbitrate Controversies
Any controversy between you and us shall be submitted to arbitration before the New York Stock Exchange,
Inc., any other national securities exchange on which a transaction giving rise to the claim took place (and
only before such exchange), or the Financial Industry Regulatory Authority, Inc.
No person shall bring a putative or certified class action to arbitration, nor seek to enforce any predispute
arbitration agreement against any person who has initiated in court a putative class action; or who is a
member of a putative class who has not opted out of the class with respect to any claims encompassed by
the putative class action until:
• The class certification is denied
• The class is decertified
• The customer is excluded from the class by the court
Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this
agreement except to the extent stated herein.
The laws of the state of New York govern.
American Century Investments
P.O. Box 419146
Kansas City, MO 64141-6146
American Century Brokerage, Inc., Member SIPC
Brokerage Investment Specialist:
©2008 American Century Proprietary Holdings, Inc. All rights reserved. 1-888-345-2071
BK-FRM-61811 0809 americancentury.com/brokerage