LOYAL3® offers a web and social media platform that enables you to buy stock directly from your favorite company's website or facebook page and pay no fees to buy or sell. Ever. It's called a Customer Stock Ownership Plan, or CSOP™ ("see-sop").

Also, companies engaged in an Initial Public Offering or IPO, which makes their stock publicly available for the first time, may use LOYAL3’s platform for the offering of an IPO CSOP™ product. And companies making a follow-on public offering may use LOYAL3 to offer a Follow-On CSOP™ product. Both IPO CSOP and Follow-On CSOP are offered alongside a traditional underwritten public offering.

The CSOP

The CSOP makes it easy for your favorite companies to offer you their stock directly, simply, and conveniently. LOYAL3's fully electronic platform makes stock buying more efficient. And whatever fees remain are paid by the companies offering CSOPs.

Moreover, CSOPs allow everyday Americans to invest directly in their favorite companies in increments as low as $10. Generally, investing in amounts as low as $10 doesn't make sense, since even low transaction fees can substantially eat into small purchase amounts. With CSOPs, you're not required to buy whole shares of stock, but rather fractional shares, so you can buy the amount of stock that fits your budget.

Using the CSOP to purchase shares from public companies, you can:

• Invest as little as $10 in just three clicks.
• Buy and sell with no fees whatsoever.
• Make one-time or automatic monthly investments.
• Buy in dollar amounts so that you know exactly how much your order will cost (note that your holdings will include fractional shares and you will only be able to vote your whole shares).
• Use your checking or bank account, or for CSOP pre-set monthly purchases, use your credit or debit card (if you use a credit card, you will want to avoid purchases that incur interest payments, which would cut into your potential profits).
• Purchase shares through a company's Facebook page.

Why Do Companies Pay Your Fees?

Companies that offer CSOPs pay the fees so that you don't have to. They do this because:

1. Companies believe that when you become an owner, you will be a more loyal customer and product user. People care more about things they own than things they don't.
2. Companies believe it's the right thing to do. They appreciate your business and are always looking for innovative ways to connect more deeply with you.

Nevertheless, you should invest wisely and not assume that a company is a worthwhile investment just because you like the company's products or service; and neither LOYAL3 nor its registered broker-dealer does not solicit, recommend, or offer advice with regard to any security.

The IPO CSOP™ and Follow-On CSOP™ Offerings

The CSOP is also designed to provide an easy and convenient way for companies to make public offerings of their stock directly from the company's website or Facebook page. Companies engaged in an Initial Public Offering or IPO, which makes their stock publicly available for the first time, may use LOYAL3's platform for the offering of an IPO CSOP. And companies making a secondary or follow-on public offering may use it to offer a Follow-On CSOP. Both the IPO CSOP and Follow-On CSOP are offered alongside a traditional underwritten public offering.

Now Everyday Americans Can be a Part of an IPO

Traditionally, there has been little or no access for everyday Americans to participate in Initial Public Offerings or "IPOs." The IPO CSOP and the Follow-On CSOP are designed not only to provide broad access to public offerings primarily to a company's customers, but also to open IPOs to the general public. With an IPO CSOP or Follow-On CSOP, you can:

• Place a reservation for as little as $200.
• Set a maximum for your reservation up to $400.
• Buy and sell with no fees whatsoever.
• Participate through a company's Facebook page or website.

You should be aware that IPOs are risky investments and often subject to rapid price movements up or down after the pricing of the IPO. To engage in an IPO CSOP or Follow-On CSOP, you are required to open a brokerage account with our registered broker-dealer with a minimum account balance of $350 (you may request the return of any funds that are not used in the share purchase). The shares you receive are subject to the company's allocation based on several factors. Consequently, you may receive less than your requested maximum amount, but you only pay for the shares you receive.

You may only sell your shares in daily batched orders placed with LOYAL3's broker-dealer. During the time between you place your sell order and the daily batching of your order with others selling their shares, the price may increase or decrease (sometimes significantly).

For each of the CSOP, IPO CSOP, and Follow-On CSOP, you should read the offering company's prospectus before you invest. You should carefully consider information contained in the prospectus, including any description of risks. Investment value will fluctuate, and shares, when sold, may be worth more or less than the purchase price.