EFTA01365779.pdf

MARGIN DISCLOSURE >A MARGIN ACCOUNT AND IMPORTANT: PLEASE.READ THIS MARGIN DISCLOSURE PRIOR TO OPENING RETAIN A COPY FOR YOUR RECORDS Client, to provide some basic facts about Deutsche Bank Securities Inc. (0851) is furnishing this document to you, the securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before purchasing this Margin Disclosure carefully (which is to be read in trading in securities in a margin account, please review Account Agreement). Please call your Client Advisor with any questions or concerns conjunction with the entire regarding the use of margin. the securities in full or you may borrow part of the purchase price from When you purchase securities, you may pay for DBSI (via a margin loan offered by Pershing). You may also borrow for purposes other than the purchase of securities • basod on the value of fully paid securities held in the Account. If you choose to borrow funds from DB51, you must open margin account and sign the attached Margin Agreement along with the Account Agreement. If the securities in your a account decline in value, so does the value of the collateral supporting your loan, and, as a result, DBSI can take action, and/or selling securities or other assets in any of your accounts (as provided in the Margin such as issuing a margin call Agreement) in order to maintain the required equity in the account. in on margin. These risks include the following: It is important to fully understand the risks involved trading securities Margin Account. A decline in the value of securities that are 1. You can lose more funds than you deposit in theadditional funds to DBSI to avoid the forced sale of those purchased on margin may require you to provide securities or other securities or assets in your account(s). in your account(s). If the equity in your account falls below 2. DBSI can force the sale of securities or other assets , DBSI can sell the securities or other the maintenance margin requirements, or ['BSI's higher "house" requirements also will be responsible for any assets in any of your accounts held at DBSI to cover the margin deficiency. You shortfall in the account after such a sale, including costs and interest accrued. 3. DBSI can sell your securities or other assets withoutand contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, that the firm cannot liquidate securities or other assets in does their accounts to meet the call unless the firm has contacted them first. This is not the case. Generally, DBSI notify its Clients of margin calls, but it is not required to do so. However, even if DBSI has contacted a attempt to take steps to date by which the Chant can meet a margin call, DBSI can still necessary Client and provided a specific Client. protect its financial interests, including immediately selling the securities without notice to the are liquidated or sold to meet a 4. You are not entitled to choose which securities or other assets in your accounts) margin call. Because the securities are collateral for the margin loan, OBSI has the right to decide which security to sell in order to protect its interests. 5. DBSI can increase its "houses maintenance margin requirements at any time and is not required to provide you immediately and may result in the issuance advance written notice. These changes in firm policy often take effect securities in of a maintenance margin call. Your failure to satisfy the call may cause DBSI to liquidate or sell your account(s). extension of time to moot margin 6. You are not entitled to en extension of time on a margin call. While an a to requirements may be available to clients under certain conditions, a client does not have right the extension. transactions and involve the risks described above. A short sale means any sale of 7. Short Sales are margin securities that you do not own or which are borrowed for your account ("Short Sales"). Because short sales are and conditions of margin transactions. margin transactions, such transactions are subject to the same risks and terms Pershing may loan any securities which collateralize your margin loan. Securities held in a margin B. 0951 and/or or account may bo lent, to DBSI, to Pershing or to others, and may be pledged. repledged, hypothecated retaining rehypothecated by DBSI and/or Pershing, without notice to you. 0851 and/or Pershing may do so without possession or control for delivery a like amount of similar Securities and Other Property and in doing so, are in Its authorized to retain certain benefits, including interest on your collateral posted for such loans. While your securities are loaned out, you will lose voting rights attendant to such securities. Pershing and/or DBSI may receive ion, please refer to compensation in connection with these transactions. For additional information on rehypothecat the Margin Addendum. 13-AWM.0106 11 012145.032613 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0056876 CONFIDENTIAL SDNY_GM_00203060 EFTA01365779