EFTA00169752.pdf

a] Deutsche Bank Private Wealth Management Option Agreement and Approval Form Please Complete All Sections Account No. Account Name Southern Trust Company Inc Account Type Cash Account Registration ENTITY O Managed Account O Discretionary Account O other Name(s) of persOn(sl other than account owner(s) authorized to place orders for the account: Jeffrey Epstein, Jeanne Brennen Account and Owrer information (Provide requested intormation for each account owner (- Client"). Attach supplement to this Agreement if necessary.) Name Southern Trust Company Inc Address 8100 Red Hook Quarter. B3, St mamas. 00802 Cct.ntry Virgin Islands Pima_ Number of Dependents WA Marital Status WA Birtmata 11/10/2011 Employer Business Phone Business Address Type of Bus.ness Position — — — — • Years Held `— — Present Brokerage Accounts with: Jnifirilin Does the individual or entity tnat controls this account have the power to control any other Option Accounts) with Deutsche Bank Securities Inc 7 yes O No If veS. Please provide the account number(a): Will Provide list Client(s) Financial Information Approximate Aggregate Annual Income Sources of Income (Approximate) Approximate Aggregate Net Worth of Account Owner(s) from All Sources Ammons Not Viva% ❑ Less than $60.000 Salary/Bonus 50 % awe Peet wen ksdkesttrer 'lee! 1.j550.000 -599.999 Interest/Dividends Op 96 O Less than 557,000 O Less than 550,000 o SI 00,000 - r249.999 Other (specify): os50.000 -599,999 $50,000 -$89.999 ❑ 5250.000 -5499.999 5100,000- $249,999 $100,000-$249.999 El $500.000 -$999.999 ❑ $250,000 -5419.999 $260,000-5499,999 ❑ 51,0000M -52.499.999 ❑ Sb00.000 - 5999,999 $500.000-$999,999 52,500.000 - 54.999.999 ❑ 51,000,000 - 1,2,499.999 51.000,000 -52,499.999 16 ▪ 57.000.000 end over ❑ $2,500.000 - 54.999.999 52.500,000 -54.999.999 $5,000.003 and over 55,000.000 and over Investment Experience of Account Owner(s) Year rust I Average *Trades Avvenoo Soo of 10S 090 Sue Twos of PferiouisCptiOn ExpOnenCo Traded Per Year Trade; In S Snares/ Connects I Options 2011 10 $1,000,00000 1,000 Covered Call Writing Stocks 2$11 0 $1,000,000.00 1,000 Purchased Options -4.1 Bonds 2011 10 I $1,000.000.00 1,000 121Option spreads Commodities Listed Stock Index 2011 2011 lto I st000poo.00 _Lsi,00kose.00 000 1,000 El Uncovered Put Writing ❑ Uncovered Call Writing 0 0 OTC Deovaiives 2011 10 I stook000.00 “Oo O None 2011 —II- i.. Structured Products ' to 51,000,000.00 1,000 i- Other (Specify) Noma. Bork Sec:mons Inc /I subsidiary of tuned,. Bank AG. conducts investment banning ano socunties savings in the tin tan States I!IIYIIp1IInMll OPT' 09-MAC-0127 0.41 14 (0.(111) 006404 052711 CONFIDENTIAL — PURSUANT TO FED R GRIM. P. 6(e) Walabitl15.5 EFFA_00020025 EFTA00169752  • Option Objectives (check ALL that apply): . ID Income (covered call writing) al Portfolio Protection (protective puts) ID Speculation (spreads & uncovered wnting) Ckont(s) Strategy Requests (Meese check as many of the following strategies sought to be employed) ID I. Covered Cell Writing Moderate Risk Calls fully covered by underlying stock. Stock may be called at any time or at expiration. requiring owner to sell at stoke price. a 2 Purchasing Options Involves SutstanuaLflisk. Entire proniorn is at risk. Profit or loss usually deumn.ned by selling position. If position is not closed or exorcised by exc ration date, options will expire worthless. a 3 Option SPrOOda - Margin account required. invotxes Substanbal Risk. In addition to risk of purchasing puts or calls if long side is closed out, leaving only a short Oosition, the financial risk becomes unlimited. Option assignments lemma purchase of the underlying stuck in the open market to effect delivery to purchaser of option. a 4 Uncovered Put Writing — Margin account and special statement for uncovered option writers required. latitixas Substantial R sc. If assigned. the client must purchase the underlying stock at the silk° price, which may be substantially higher than the thencurrent market price. E 5. Uncovered Cell Writing — Margin account and special statement for uncovered option writers required. Involves Subcctantscii Risk. Writing uncovered cells involwks unlimited financial risk. Option assignments require purchase of the undedyng stock in open rner<et to effect delivery to purchaser of option. I have read and understand all of the conditions arid stipulations on the reverse sole of this form in regard to tracing in options and represent that trading in options s suitable ill light of my investment obsectives, (Mamiel stunnon, risk tokvan and knowledge. I hereby confirm that I am the tattoo of end attest to the accost-lir of the above information and authorize Deutsche Bank Securities Inc. {also referred to herein as "Deutsche Bark Alex. Brown') to verily any representation contained therein, at ifs discretion. I will promptly notif tr Bank Alex. Brown. in writing, cf any material change in the abovostated information. I acknov lodge that I may obtain an options corporation prospectus upon request. I have resew d and read Options ring Corporation Disclosure Document entitled 'Characteristics and Risks of Standardiz Options." Tign:Tail; :Oats; I 012-g 1 i -3 Signed Oate Print Client Advisor Name _ CA I r-r5 Client Advisor Signature Dote to/2,11/4i ROP Approval Date A sue*77,2 OPTION DEPT. APPROVAL: On DATE Comments. g Covered Call Writing Purchasing Options 1 &Option Spreads _ 1 i'-fcrt) a Uncovered Put Writing Li Uncovered Call Writing 09-PV&I-0127 OM 14 (05f11) 001404.05 to1i CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) Iplat9A111156 EFTA_00020026 EFTA00169753  Risks, Prohibitions and General Information Concerning Option Trading I wierstand that options transactions involve a high degree of risk and offer no guarantee of gain or assurance against loss. Accordingly, I understand that frior to engaging in any option transaction, I should review my present financial situation and determine whether ing advisable to incur the risk of loss associated with that particular investment. 1. I understand that wren I engage in option meting I txvose myself to certain, potentially substantial financial asks in addition to those identified on the front side of this form under the heading tienes) Strategy Repots," Intl ding the nnt emitted to the figlowing: — I understand that I should net buy an option unless I am able to sustain A total lame/IN pre men and transaction cods. — If I sell (write) coveted °peeps. I eiederdrulo that I may Need Pertickunkin in capital gains but retain flak of parocipatiee in capital 'Oates in the onderlyisig security. I understand that if an exercese is assigned to me, I may to forced to 'Societe my position in the underhang seventy at which may be unfatable to metaled" understand that I should not sal twat.) a covered CM option unless I am pi pered to chewer the underlying security (or a security comenaile. exchangeable. or exercisolka into such uncleffene Seeurfee upon IN exercise or the Option. — If t sell (write) uncovered (mks* options. I risk aubstandel capital loss if, and to the extent that, tie market ono of the underlying security Increases above the strike price d atal or decreases below the Erase price damn.If an exercise is assigned to me. it will, in all likelihoof. be statist vitich vet force me to assume such e capital loss. I understand Mal I should not sea OSA $ PO OPUS a an uneereted cal option. OpeColly an index option. unless 1tarn able to sustain potentially urtignited losses. — I am :mere that mews factors may affect the prim of an option contract, such as the relationship between the Nesse price and market price of the undcrOlng mosey. the time period remaining until the option expires, and the price fluctuation or other characteristics of the underlying:, security. — I am aware that the respoethe option exchanges ("Exchanges") may, in their discretion and Iron time to time, restrict transaction.; in perdoear options or the exercise of option castrato in the interest el maintaining a fair and elderly market in option contracts or in the underlying seemly, for the protection of investors. I understand that I may not be Se to close a position in the soot Mat a secondary market In the option item sos to exist or toe listing exchzurlgc Nadas a wawa a the ophos — lam swore that the Exchanges have estattislied restrictions on certain opening purchase and sale transachens on the Exchanges which are elardelefed to be restricted options. P. I understand and agree Wet my lee0trillSI veth Dotes: Bank Socageties Inc (two referred to ow in ea "Deoisehn flank Alex. Brown) well be handled in scorer:mese with the Rules ol the Financial Industry Regulatory Authority ('RNRA'l and the Exchanges on which Med options are traded arid col the Options Casing Corporation MCC"). es expressed in its pr ospectus I arn aware of end see to be bound by such fetes In accordance with such See. — I will not attempt to acµire at any lime. either by myself or in concert wee others. a motion in excess of the limits prescribed from liras to time by dr EcchanOos Fee the purpose of computing sad) limits. I understand that total long call options and short put options of the same underlying stock must be added to compute the position Snit &meetly. total long put optons and short call options of tre same endears Stock must be added tb compute the position Omit. — I Mil not attempt to otercise, either by myscll or in canton with others. Wend any period of fire consecutive business days. a quantity in excess of the limit pieserleed by the Eichenges. — I unbent:end that if loud in violation of either the position limit or the exercise limit I may be subsea to sanctions imposed by the Exchange involved and that these sanctions may include liquidation of the positions in violation. 3. I understand that Deutsonc Back Alex. Brows has policies which may le mote reset:eve then or impose reqUiirinlentS in aceition Miles of to hirlaseges, SOMA or the New York Stock Exchange. I aorta to abide by such policies as a ondelon of doing business with Deutsche Bank Alex. Brown. I understand that these policies inchide but are not limited to the Noosing: — Settlement date for all option trades is the business day following trade date. Notwithstanding this prevision. DeutSche Hank Aker. Brown so, in its discretion. elect not to argoet purchase orders in options unites cash atria to the purchase Price has last been deposited in my account, and may Sect not to accept operiing sale otters In options uriieet I hen firm deposited in my account either the required merges or unrestricted negotiable shorts of the enderlying stock in an sincere specified by Deutsche Bank Alex. Brown - DeutsChe Bank No. Brown may refuse orders to trade option, in my account it there are restrictions against my account, meluting restrictions regarding tracing in the underlying security. or for any other resters at its diecretion. — Deutsche Bank Alex. Brown has set trading and exercise demesnes %each correspond to deadlines established by the OCC and will accept ne rffeeeeffibilitY for condole^ of orders entered by clients after such deadline. — Margin. eider in cash or SeOdiees. posted by me against short option positions. may not be Inciuded in my mercers amount equity or Interest cotputaborts. Deutsche hark Aka. Brawn eery, in tore use these deposits to secure said short positions with the OCC — Option expose notices assigned to Deutsche Bank Alex. Brown in respect of e short position in optical contracts in customer accounts shall be allocated to customers of Deutsche Bank Alex. Breen on an eutorenied rem loin basis. I Understand mut if am assIgned. the assignment will be geocasel es n see tin the ease of a call et a Purchase (in ewe ease of a put). settling two hotness days from the date of assignment emcee' for nn -equity options, weed, setts for cash on the day of assignment/ and that t ern obligate:Ito delis the underlying stock ter required cash to Deutsche Bank Alex. Brown no later than settlement date 4 I understand that margin requirements exist in convection with certain options and I ogre° to moot all margin calls as made by Deutsthe Bonk Ales. Brown. I understand that Deutsche Bank pies. Brown, in computing the margin requirements ler option positions. may impose a higher margin requirement fee IndMdel option Positions than other investment Irma, and that Deutsche Bark Ales Brawn will infirm no of Its existieg siege, requirernerts tot option positions upon request. In the event I do not meat margin calls promptly. Deutsche Bonk Alex. Brava, is outhoriaxl, in its solo dist:natio and without notification to me. to take any and all steps necessary to protect Itself In connection wah put arbor Cal tianiseenns made fo: my aceouM. including the tight to buy andor sell snot. dr short exempt, (or Rey account ono risk any pan or all of too shores represented by options endorsed by Deutsche Bark Alex. Brown for my mount, or 10 buy ter my account and mark any puts andlor OM as CleutSehe Bank Ales Brown may deem necessary for Its Onateetion I further agree that any end all expenses Incurred by Deutsche Bank Alex. Brown In this cannot-bon win be reimbursed by me. 5. This agreement shell apply to al option orders for my/our accrunl whether or not such orders ere executed. 6 I understand that options may be listed on one or more Exchanges and that If no Exchange es specified by me. Deutsche Bank Net Brown will use its discreeen in routing my onledul. 7. I hereby authorize you In year sole discretion and with notification to me to in the event of my death. without notification to representatives of my estate or to my heirs) whenever you deem V necessary fur your pcaection, to take such action. InckdIng. without Imitation, to buy. sell or sell short for my account(s) and my risk, puts, calls. or other forms of options ndfor to buy, sell, or oil short any pan or all of the underlying SeCurititS rePresentild by options endorsed by you for my at:wends). Any end MI expenses, including, vetheed limitation attorneys' fees and their reasonable distigisernentS. incurred by you in connection with such transactions will be reimbursed by roe or by my estate. 8. You are undo no obligate., to corway to me any information relating to the underlying sewitio cowed by an option or any sums Sated thereto. or any intonate:xi Sang to options whether such information h then or thereefto known or available. My information, advice or notillealinn in respect to any option or any underlying seamen or securities relating thereto vetch you may give me and which you are not required to give by the toms el this agreement or any other agreement. eapressed or irnphixt shall not be construe° as veining an holed agreement or come of dealing between in and shell net oMpint the piensionS of this 01 any °Mtn apeernont between us. 9. This agreement aria its unforoment shall ne governed by too laws of the State of New York and its pernsions shalt bo continuous: sloe over ell options transactions hereunder. whether you we acting as broker or princiPat and all amounts, indindusey and collectively. which I may open or reopen with you: tog inure to the benefit of your present organization. its successors and assigns: and Mara binding upon me add my estate, executory achniniterators and snobs. but no assignment shell release or from any el my obligations hereunder. Written notice d reNtatiens d this agreement shall not release ether of us from any obagetiens hereunder arising prior to the actual receipt of such notice by the other. 10. Vitienever any law or regutetien is adopted which affects or is inconsistent with any ocerislon hoed. such peoeison shat be deemed modified or superseded. as the case may be. by such key or mguaation, and such provisions as SO modlied or superseded and all other provisions hereof shad in all rest/OM continurfin lull force and effect. All other agreements existing between us or hereafter Made Mich by their precisions apply to any of my transactions and accounts with you, shill be applicable In arty of my options transactions and accounts velwe they are not in conflict with Ole agreement. Should soh a conflict exist it shall be resolved in favor of this agreement Cehenvise. the ProViSiOnS Of each agreement anal bo applicable 11. M used herein, and "We MOM to alt 'Coon? ownws. 'You' and 'your" relies to Deutsche Bank Noe grown. Please Initial pare: 0127 OM 14 (05/11) 006404 051011 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) Walabli 1 7 157 EFTA_00020027 EFTA00169754  Special Statement for Uncovered Option Writers Deutsche Bank Alex.Brown A Prix...no, Doomlne arum Senate. Inc 0 Account No. Account Name __S_outhernirmat_e_amPanx There are special nsks associated with uncovered option writing which expose the investor to potentially significant loss. I understand that this type Of strategy may not be suitable for all customers approved for options transactions. I also understand each of the following: 1. The potential loss of uncovered call writing is unlimited, since there is no upper limit on a stock's price and the loss to a wnter of an uncovered call equals the stock price minus the exercise price. The writer of an uncovered call is in an extremely risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price. Such a loss can exceed the equity in the call wntcr's account. 2. The potential loss horn writing uncovered put options is also substantial. The writer of an uncovered put option bears a risk of loss if the value of the underlying instrument declines below the exercise price. However, since stock prices cannot be lower than zero, the maximum loss is equal to the strike price of the put sold less the premium received for that put. Such loss could be substantial if there is a significant decline in the value of the underlying insuument and can exceed the equity in the put writer's account. 3. For combination writing, where the investor writes both a put and a call on the same underlying instrument, the potential risk is unlimited and can exerted the equity in the option writer's account. a. Uncovered option writing is thus suitable only for the knowledgeable investor who onderstands the risks, has the financial capacity and willingness to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements. In this regard, if the value of the underlying instrument moves against an uncovered writer's options position, the investor's broker may request significant additional margin payments. If an investor does not make such margin payments. the broker may liquidate stock or options positions in the investor's account, with little or no prior notice in accordance with the investor's margin agreement. 5. The option writer may not be able to rely on the secondary market. If a secondary market in options were to become unavailable, investors could not engage in closing transactions, and an option wnter would remain obligated until expiration or assignment. 6. The writer of an American-style option is subject to being assigned an exercise at any time after he has written the option until the option expires. fly contrast, the 'miter of a European-style option is subject to exercise assignment only during the exercise period. NOTE: It is expected that the person%) signing below will read the booklet entitled Charactenstics and Risks of Standardized Options available from your broker. Particular attention is directed to the chapter entitled - Risks of Buying and Writing Options: This statement is not intended to enumerate all of the risks entailed in writing uncovered options. I have read and understand the above statement regarding the special risks associated with uncovered option writing and represent that such trading is suitable in light of my investment objectives, which include speculation, as well as my financial situation, risk tolerance and knowledge. I understand that you will rely on the representations I have made herein and in the Option and Approval Form I provided to you in determining whether to approve my account for the options strat s I have elect d and I her 'hyaertIty- th-to truth and accuracy of such statements. Signed Date (r3 Signed Date Signed Date Signed Date Signed Date Approved for: Iiincovered Calls ROP/Manager Approval: 08 oeAsat OM 14 A (Mal CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) ViDt9Ablii158 EFTA_00020028 EFTA00169755  Joint Account Supplement to Option Deutsche Bank Alex. Brown Account Agreement and Approval Form å a tea votinia•• •••• tar • Accnur.t Nit. N400236,2 Account Ner„ 0 sewers run canon tar Second Account Owner Personal Information: Verne ef..." Jyatimn• Aet »AMY Illad lame Addiess 5100 Haai7Ont. 51 mows. vl. 0:032•1348 lento Nona — Number el Dependents Mental Status — Brthdatol~ - 1 &raler _ — Business Phon_ Business Address. (MO hea nor«ow. st Thom... w.aaoytsr Type el Business rwra Positron Years Hold Present Brakemen Accounts with: Do Va (Miter low the POWet to control any Itin Option Awount(s) with Deutsche Bank Socutines Inc t Dins Ott) If vet please provde tho occoun: nuninei;s: "ems" "Pm" 1" Third Account Owner Personal Information: Natos N% dome Address Home Phone Noreen, of Deponderts -- Marital Slane Ihticlare EmplOyor Ruin/us None nntl . 4152 Business Address Typo of Business Position Years Held °resent Brakemen Accounts with: Does Ot owner have the poWur to control any One Option Access-4N wish Deutsche Bank Securities Inc if øy15 []No If yes please provide tic tiCtOunl Fourth Account Owner Personal Information: Name ••••1 Home Acdfess Home Norm Number of Dependents _„.._ Marital Status Bindals Lot:sown Business Phone Bassnoss Address Woe of 8ustness Position Yews Held Present Braerreac Accounts w.th Does this owner have the Dower to COMM: any other Cpuon Acoaunest with DetitSCho Bank Sal:untie, Inc.? as pNo if yes. Please ofOØ the Jet:Curt number(*) RIO, Account Owner Personal Information: Name •••*1.11.1 Home Address Horne Phone Numbs. ol DitutedenIS Marital Status Birthdato Employer Business Phone BusincSS AddieSs Type cl Business NsitrOn Vows Ilel P1050111 Biokcsogs Accounts with: Does this owns luvo the power lo coned any clew Dutton Accoutsts) with Deutsche Bat* Socurties Inc ? Di ves Quo If res. please provide Inc account nurnboilsl' v. r enfilleani Mil la B ‘IMAI _J CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) W9y9W159 EFTA_00020029 EFTA00169756