EFTA01583215.pdf

J.P.Morgan Exchange Traded Options Agreement A. Options Agreement 1. I understand that any option transaction made for my account Is subject to the rules, regulations, customs and usages of the Options Clearing Corporation and of the registered national securities exchange, national securities association, clearing organization or market applicable to such transaction. I agree to abide by such rules, regulations, customs and usages. I understand that my account at ).P. Morgan SeCuritieS (';PMS") Is subject to position and exercise limits established by Option any other firm. regulatory organizations or markets, and that such limits apply in the aggregate to all of my accounts at JPMS and I agree that, acting alone or in concert with others, I will not exceed any applicable position or exercise limits. by 2. I understand that JPMS Is under no obligation to convey any information to me relating to the underlying securities covered then or the option or any securities related thereto, or any Information relating to the options whether such Information Is thereafter (mown or available. any put option, 3. It shall be my sole responsibility to exercise, in a proper and timely manner, any right, privilege or obligation of call option, or other option which ;PMS may purchase, handle, endorse or carry for my account(s). respect to any options 4. I understand that, In case of my Insolvency or death, or the attachment of my property, )PMS may, with loss. contract position, take such steps as it considers necessary or appropriate to protect WhIS against Options," 5. I have received from JPMS the options disclosure document entitled, 'Characteristics and Risks of Standardized specifically the following: dated February 1994, and I understand the information contained therein and aMrrn of risk, are not suitable for a. That both the purchase and the writing of uncovered options contract involve a high degree nature and extent of their many investors and, accordingly, should be entered Into only by investors who understand the rights and obligations, and who are fully aware of the inherent risks Involved. the premium and transaction costs, and b. That I should not purchase any option unless I am able to sustain a total loss of (I) I should not write a call option unless I either own the underlying security (or a security convertible, *changeable or and (ii) I should not write a exercisable into such underlying security) or am able to sustain substantial financial losses;, unless I am able to sustain the loss resulting from purchasing my security at the exercise price, which may be put option substantially above the market price at the time of assignment of the put option to me. options or the exercise of options c. That the exchanges or other regulatory bodies may restrict transactions in particular contracts In their discretion from time to time. document which summarize the risk factors Involved d. That I have noted particularly those sections of the options disclosure and investment ehlectives, options trading In options trading, and I have determined that, in view of my financial situation is not unsuitable for me. document entitled, 'Exercise and Assignment.' I am aware 6. I have read and I understand the section of the options disclosure value of one cent ($0.01) or more at expiration will that any equity or index option I may hold wIth an sin-the-money' be exercised by the Options Clearing Corporation If I fall to gate instructions to the contrary by expiration date. I automatically exercise or assignment until the we* following the expiration date. am also aware that I may not receive actual notice of an when an option Ii my account Is nearing expiration, and I will 7. I understand that JPMS shall have no responsibility to notify me have no dein, for damage or loss arising out of the fact that an option in my account was not exercised, unless I have Instructed )PMS to exercise such option at or before the time established by )PMS. options, and I agree to meet all margin calls as made by 8. I understand that margin requirement exist in connection with certain JPMS. Further, I understand that certain options accounts are considered to be margin accounts, and I represent that I am duly authorized to open and carry such margin account(s). sole discretion and without notification to me, to 9. Where I am a seller of an option, I understand that JPMS Is authorized, In )PMS's take any and all steps necessary to protect )PMS from loss or damage arising out of any put option, call option or other option do not meet JPMS's margin cans promptly. These steps include, but are not transaction made for my account in the event that I or all of the shares represented by limited to, buying or selling short (or short exempt) for my account, and at my risk, any options endorsed by NMS and for my account, or buying for my account, and at my risk, any put option, call option or other option as JPMS may deem necessary to protect JPMS fully from loss or damage. financial obligations, and also that I understand 10. I warrant mat options are suitable for my account after considering the potential the trading of options and the functioning of the options markets. I realize and understand that any form of options trading has a number of Inherent risks connected therewith, and I am fully prepared finandatly to undertake such risks and to withstand any for New Account and losses created thereby. I acknowledge that I have received a copy of the ).P. Morgan Account Derivatives )PMS has relied. I hereby verify Investment Suitability forms, or similar forms containing information provided by me, upon which the accuracy of that information and agree to inform JPMS promptly of any material change in the information. 1. ARBITRATION; CONSENT TO JURISDICTION; SERVICE OF PROCESS. N AGREEMENT, THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE. BY SIGNING AN ARBITRATIO THE PARTIES AGREE AS FOLLOWS: INCLUDING THE • AU. PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, RIGHT TO A TRIAL BY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATIO N FORUM IN WHICH A CLAIM IS FILED. 3.P. Morgan Use Only Title SPY CAS Page 1 of 3 Banker/Investor 3/13 US1622 Confidential Treatment Requested by JPMorgan Chase JPM-SDNY-00062846 EFTA01583215