EFTA01355673.pdf

Risks,'Prohibitions and General Information Concerning Option Trading I understand that opttns transactions involve a high degree of risk and offer no guarantee of gain or assured* against loss. Accordingly, I understand Mai end to engaging in any option thinsaction. I should review my present financial situation and deteriane whether it is achisable to &noir the risk allies associated with that particular invesunrot. 1 1 understand that when 1 engage in option Decant, leanest freer% to certain Pelentially Substant id financial risks In addition to three identified on the front Sde of this form wider the heading tomb) Stuelegy Requests; includeg but not lease to tie following. — I understand that I should not buy an option unless I am able to sustain a total toes of the premium and transaction oasts. — II I sell lwrite) covered apt ors. I understand that I may forfeit participation in capital galas but retain ma of parttripation in capital losses in the u.xlerlying security. I undecatamf that if an exercise is assigned to ma I may be forced to liquidate my position in the underlying seonty al a time which may be unfavorable 10 me. I also urrkratand that I should not sell (write) a cowered can optiOn unit-salmi prepaid to deliver the underlying security in done convertible, exchangeable, or exerbSabic into such underlying security) upon the extrose of the option — It I stet (write) uncovered (naked) options. I risk substantial capital loss if. and to that extent that, the market pea et the endure/Mg security increases above the stake price Macy or deueases below the strike price depict II art exercise is assigned to me, it will. in all delihood. be at when we tome me to assume such a capital loss. I understand that I should not sell handl a put Option Or an uncovered cat Option, Opecially an index option, wiled I arra able to sustain potentially unlimited losses. — lam swam that vanous factors may affect the price of an option connect, such as the relatershp between the exercise price and market price of the undetlying security. the time period remaining until the option expires, and the prim fluctuation or mher characteristics of the underlying security. — I am aware that the respective option Orden/OS (-Exchanges-I may. in their discretion and from time to time. restrict transactions in particular options or the exercise of option contracts in the interest or maintaining a lair and orderly Markst in option contracts or in the unCkelying Wearily. Int the PrOleCten Of Weeded- turd/stand that may not be able te dose a position in the event that a sroodary market Ono 'whew Mean to axial or the *rano exchange restricts or so ends treeina in the option. — lam aware that the Exchanges have established restnainns on cenan coming purchase and sale transactions on the Exchanges which we considered to be restricted options. 2. seldeestand and agree that my accounge with Deolsche Bank Beanies Inc. lasso referred to herein as ^Deutsche Bank Apra Brown- ) will be was in accordance with the flies of the Financial industry Regulatory Authority f-F1NRA-I and the Exchanges on which Feted options are traded and of the Options Deanne Corporation ("00C- ). as evOrteeed h its prosperaus. I are aware ot and agree to ho bound by such mks. In acoteddie with such nen: — I not attempt 10 acquire al any lane. either by rensell or in concert with ethos, a deaden kn mcess d the limits prescribed from time to timo by the Exchanges. For the purpose of computing such limes, I understand that total Imo call options and short put options of the same underlying stock must be added to compute the ensition limit. Similarly, total lOng Put options and Short all options of the same underlying stock nest be added to compute the position limit — twill not attempt to exercise, either by myself or in concert with others, during any period of five consecutive bathed days. a quantity in excess of the limit poscriood by the Exchanges understand that If found in deletion of ether the pardon emit fir the exorcise knit I may be subtext to sanctions imposed by the Exchange involved and that these sanctions may include liquidatiOn of the positions in violation. 3. I understand get Deutsche Bank Nee Brown has policies which may tic mare restrictive than of impose catuinenents i edition to the:seethe Exchaopes, Mid a the New York Stock Exchange. I agree to abide by IWO policies as d doing business with Deutsche Bank Alex. Brown. I understand that these policies Include but are not kneed to the following: — on, elect not Settlement date for all option trades is the butanes: day follening trade date. Notwithstanding this provision, Deutsche Bank Alex. Brown may, In its discretion, di Wept peened Orders Options unless cash equal to the purchase price has first been di -so:led in my account and may elect not to accept coming sale orders et Orions unless I have first deposited in my account either the required margin or unrestridee/ negotiable shares of the underlying stock in en mourn speeded by Deutsche Bank Alex. Brown. - Deutsche Rank Alex. Breen may refuse orders to trade Options in my account if there ere restrictions agaiett my account, including MISSOCbCan regarding leading in tho underlying security, or for arty other remora at its decreed* — Deutsche Bank Apex. Brown has set trading and exercise deacenes which correspond to deadlines established by the 00C and vial accept nO responsiblitY for derdelien of Orders entered by dime alter such deadline. — Margin, either in oath or sucenties, domed by me against short option positions, ray nu be incitided in my magn account equity ce interest oomixatations Deutsthe Bark Mee Brown may, in tuna use these deposits to scare said short positions with the OCC. — optico dercise notices assigned to Wunsch, Bank Alex. Brown in respect dashers position in option contracts n coanomer accounts shall be aerated to customers of Deullethe Bate Nex. Brown on an *Unmated ratelorn tee. I uoderstand that diem a:signet the assignment will bu processed &same tin the 036.3 of Punthase fin the cage dada), settling two business days from the date of us.Sorpirnent (except for non-eq./ha OPtionts. whim settle le cash an Mc day of oddment) and that I am obligated to deliver the underlying stock or required cash In Edited* Sank Alex. Brown no later than settlement date. 4. I undostand that margin requirements mat in connection with detain options and I agree to mete all margin calk as made by Deutsche But Mex. Brown. I understand that Deutsche Bank Ake. &Own, in computing the margin requirenents fee option positions, may impose a higher margin requeement for rdratiel Option positions than other investment ferns and thaf Cieutsthe Bank Alex. Brown w inform me of Its existing margin requirements for option codions upon request, In the eventide not meet Mar* tat promptly. Dortsche Hank Alex grown i9 authorked, in its sole discretion and without notification to me, to take any and y steps natoessary to protect heel in connection with put and/of call transaction made far my account, elduding the right to buy andor see soon. or short exempt. for my eocelan sort disk any part or all el Ins shares reramosted try options endorsed by Deutsche Bank Alex. Brown for my account, or to buy to my account and oak any puts andror calls as Deutsche Bank A/ex. Brown may deem necessary for its protection. I further agree Mai any and a expends iduriciaby Deutsche Bank Alex. Brown in this umneotion wit lio reimbeded by me t This agreement shall apply to all option orders for my/nu account. Mother or not steel orders are executed 8 I understand that options may be keen on one or more Exchanges a nn that if no Exchange is specirsed by me, Deutsche Bank Alex Blown we use as discretion in routing my adds/ 7 I hereby authorize you in your sole discretion and with notification to me tor in the event of my death, without notification to representatives of my estate or to my heirs) whenever you deem it necessary for your prOleCtiOn. to take such action, inducting, without limitation, to buy. sea or sell short for my aecountfsl and My risk. puts. calls, or Other fOrms d optiOnS andax to buy, sell, or sdl short any part or all or the unclulyiew) sea-Meet id/resented by options endorsed by you for my academe./ Any ancl ale expenses, Including, without Iknitae'on attorneys' fees and then reasonable dsbuisements innared by you in connection with such transactions vin be reimbursed by me or by my estate. 8. You are under no obligation to coney to me arty info motion relating to the underlying moods coveted by an option or any securities related therein. or any infornotion relating to options whether such information is then or thereafter known or available. Any information. acted or notification in respect to any option or any underten9 wounds or acuities relating thereto which you may give me and which you are not required to eiva by the terms of this agreement or any oho agreement. expressed or indite. Imo not be constmed as efei;thig an implied agreement or course of dealing botween us an* t nal not impel the provisions or this or ally other agreement between us. 9. The agreement and Its eolerCenvere any be gOvensed be the laws of the State of New York and its prehedatts shill be continuous; shalt diver as options transactions hereunder whether you we acting as broker or prirriper, and all accounts, individually and collectively. which I may open or re-open with you; shell inure to the benefit of you Present pronto/shun, its suoarstsors and deems: and shell be binding coon me said my eStatu. auroras, ariminiatrators and assigns, his no assignment ehea taff‘xl me from any of my obligations hereunder. Written robot of rev ratios d this agreement shall not release either of us from my abigattens Wood , made fther to the actual receipt of such node by the other. 10 Whenever arty law or regulatko is adopted which affects et is inconsistent with any provision hoed. such prempon shall be deemed modified or superseded. as the case may to, by such law or reguetion and such provisions as so modified or superseded and all other provisions heed sae in al respects continue in full force and effect. Al other agreements existing between to or hereafter made which, by their provisions apply to any of my transactions and accounts with you. shall be applicable to any at my options transactions and accounts whoo they are not in corned with this agreement Should Sudi a Conflict exist it that be resolved in favor of this agreement. Otherwise. the PeMsions of each agreement shall be applicable. 11. As used herein. 'I' and -me refers to all Xenon' Wenn& "You- and 'Your refers to Deutsche Bank Alex. Brown. 7:40ase Initial Harp' 2? OM 14 Wan 5) 003404 051071 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0040924 CONFIDENTIAL SDNY_GM_00187108 EFTA01355673