EFTA01444982.pdf

Deutsche Bank Private Wealth Management Option Agreement and Approval Form Please Complete All Sections Account No. N4G0238q4 Account Type: Cash n Managed Account ^ AccountName Southern Financial, LLC Entity • Discretionary Account Accqunt Registration D Other Name(s) of person(s) other than account ov\/ner(s) authorized to place orders for the account:' Jeffrey Epstein, Jeanne Brennan, Harry Beller Account and Owner Information (Provide requested information for each account owner ("Client"). Attach supplement to this Agreement if necessary;) Name Southern Financial, LLC Address """" ""'" Hook Quarter, B3, SL Thorrias, 00802 Phone 3407752625 Employer NA Business Address Type of BuS(nessfl Present Brokerage Accounts with: JPMorgan Position Years Held Does the individual or entity that controls this account have the power to control any other Option Account(s) with Deutsche Bank Securities Inc.? 0 Yes n No If yes, please provide the account number(s): Will Provide List Client(s) Financial Information Approximate Aggregate Annual Income of Account.0.wnei:(s) from.AlLSources...^ Less than $50,000 $50,000 -$99,999 $100,000-$249,999 $250,000-$499,999 $500,000-$999,999 $1,000,000-$2,499,999 $2,500,000 - $4,999,999 EFTA01444982 \7} $5,000,000 and over Investment Experience of Account Owner(s) Year First Traded Options Stocks Bonds • Commodities Listed Stock Index OTC Derivatives Structured Products Other (Specify) I 2013 2013 2013 2013 2013 2013 2013 Average* Trades Per Year to 10 10 10 10 10 10 Average Size of Trades In $ $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 Average Size in Shares/Contracts ; 1,000 1,000 11,000 1.000 1,000 J 1^000 11,000 Types of Previous Option Experience 0 , 0 \7 \ r X EFTA01444983 I7 i • Covered Call Writing Purchased Options Uncovered Put Wnting Option Spreads Uncovered Call Writing None i Sources of Income (Approximate) Salary/Bonus Interest/Dividends Other (specify): 50 50 Approximate Aggregate Net Worth Lrqmd Net Worth [ 3 Less than $50,000 13 $50,000 -$99,999 —$100.000-$249,999 •"$250,000-$499,999 • $500,000-$999,999 •'$1,000,000-$2,499,999 • ; $2,500,000 - $4,999,999 0 $5,000,000 and over Approximate Net Worth Excluding Principal Residenca • Less than $50,000 • $50,000 -$99,999 • $100,000-$249,999 • $250,000 - $499,999 • $500,000 - $999,999 • $1,000,000-$2,499,999 • $2,500,000 - $4,999,999 {7} $5,000,000 and over Country Virgin Islands Number of Dependents NA Marital Status NA Business Phone NA Birthdate 2/26/2013 Deutsche Banl< Securities Inc.. a subsidiary of Deutsche Bank AG, conducts Investment banking and securities activities in the United States. OPTl 09-PWM-0127 OM 14(05/11) 006404.052711 EFTA01444984 option Objectives (check ALL that apply): [71 Income (covered call writing) 0 Portfolio Protection (protective puts) I/ ] Speculation (spreads & uncovered writing) Client(s) Strategy Requests (Please check as many of the following strategies sought to be employed) [/] 1. Covered Call Writing Moderate Risk. Calls fully covered by underlying stock. Stock may be called at any time or at expiration, requiring owner to sell at strike price. 13 2. Purchasing Options iny.Olyes_SalbstantiaLHi^ Entire premium is at risk. Profit or loss usually determined by selling position. If position is not closed or exercised by . expiration date, options will expire worthless. 3. Option Spreads — Margin account required. l!M3lMes3j.lbsta.ntiaLEisi<i In addition to risk of purchasing puts or calls, if long side is closed out, leaving only a short position, the financial risk becomes unlimited. .Option assignments require purchase of the underlying stock in the open market to effect delivery to purchaser of option. I/] 4. Uncovered Put Writing — IVlargin account and special statement for uncovered option writers required. Involves Substantial Risk. If assigned, the client must purchase the underlying stock at the strike price, which may be substantially higher than the then-current market price. 13 5. Uncovered Call Writing — Margin account and special statement for uncovered option writers required. Involves Substantial Risk. Writing uncovered calls involves unlimited financial risk, Option assignments require purchase of the underlying stock in open market to effect delivery to purchaser of option. 1 have read and understand all of the conditions and stipulations on the reverse side of this form in regard to trading in options and represent that trading in options is suitable in light of my investment objectives, financial situation, risk tolerance and knowledge. I hereby confirm that I am the source of and attest to the accuracy of the above information and authorize Deutsche Bank Securities Inc. (also referred to herein as "Deutsche Bank Alex. Brown") to verify any representation contained therein, at its discretion. I will promptly notify Deutsche Bank Alex. Brown, in writing, of any material change in the above-stated information. 1 acknowledge that I may obtain an options clearing corporation prospectus upon request. 1 have received and read the Options Clearing Corporation Disclosure Document entitled "Characteristics and Risks of Standardized Options." Signed Signed, Date Date EFTA01444985 I," Print Client Advisor Name Client Advisor Signature_ ROP Approval CA# Date Date OPTION DEPT. APPROVAL: SROP Covered Call Writing Purchasing Options Option Spreads 0 ^ Uncovered Put Writing Uncovered Call Writing 3^ 09-PWM-0127 OM 14 (05/11) 006404,051011 DATE Comments; EFTA01444986 Risks, Prohibitions and General Information Concerning Option Trading I understand that options transactions involve a high degree of risk and offer no guarantee of gain or assurance against loss. Accordingly, I understand that prior to engaging in any option transaction, I should review my present financial situation and determine whether it is advisable to incur the risk of loss associated with that particular Investment. 1. 1 understand that when 1 engage in option trading I expose myself to certain, potentially substantial financial risks in addition to those idemified on the front side of this form under the heading "Clientis) Strategy Requests," Including but not limited to the following; — I understand that I should not buy an option unless I am able to sustain a total loss of the premium and transaction costs. — If I sell (write) covered options, 1 understand that 1 may forfeit participation in capital gains but retain risk of participation in capital losses in the underlying security. I understand that if an exercise Is assigned to me, I may be forced to liquidate my position In the underlying security at a time which may be unfavorable to me. 1 aiso understand that I should not sell (write) a covered call option unless I am prepared to deliver the underlying security (or a security convertible, exchangeable, or exercisable into such underlying security) upon the exercise of the option. — If I sell (write) uncovered (naked) options, I risk substantial capital loss if, and to the extent that, the market price of the undertying securrty Increases above the strike price of a call or decreases below the sirike price of a put. If an exercise is assigned to me, it will, in all likelihood, be at a time which will force me to assume such a capital loss. I understand that I should not sell (write) a put option or an uncovered call option, especially an Index option, unless I am able to sustain potentially unlimited losses. — 1 am aware that various factors may affect the price of an option contract, such as the relationship between the exercise price and market price of the underiying security, the tinne period remaining until the option expires, and the price fluctuation or other characteristics of the underlying security. — I am aware that the respective option exchanges ("Exchanges") may, in their discretion and from time to time, restrict transactions in particular options or the exercise of option contracts in the intorest of nnaintaining a fair and orderiy market In option contracts or in the underiying security, for the protection of investors. I understand that I may not be able to close a position in the event that a secondary market in the option ceases to exist or the listing exchange restricts or suspends trading in the option. — I am aware that the Exchanges have established restrictions on certain opening purchase and sale transactions on the Exchanges which are considered to be restricted options. EFTA01444987 2. 1 understand and agree that my accounKs) with Deutsche Bank Securities Inc. (also referred to herein as "Deutsche Bank Alex. Brown") will be handled in accordance with the Rules of the Financial Industry Regulatory Authority ("FINRA") and the Exchanges on which listed options are traded and of the Options Clearing Corporation ("OCC"), as expressed in its prospectus. I am aware of and agree to be bound by such rules. In accordance with such rules; — 1 will not attempt to acquire at any time, either by myself or in concert with others, a position in excess of the linnits prescribed from time to time by the Exchanges. For the purpose of computing such limits, I understand that total long call options and short put options of the same underlying stock must be added to compute the position limit. Similarly, total long put options and short call options of the same underiying stock must be added to compute the position limit. — I will not attempt to exercise, either by myself or in concert with others, during any period of five consecutive business days, a quantity in excess of the limit prescribed by the Exchanges. — 1 understand that if found in violation of either the position limit or the exercise limit I may be subject to sanctions imposed by the Exchange involved and that these sanctions may Include liquidation of the positions in violation. 3. 1 understand that Deutsche Bank Alex. Brown has policies which may be nnore restrictive than or impose requirements in addition to those of the Exchanges, FINRA or the New York Stock Exchange. I agree to abide by such policies as a condition of doing business with Deutsche Bank Alex. Brown. I understand that these policies include but are not limited to the following; — Settlement date for all option trades is the business day following trade date. Notwithstanding this provision, Deutsche Bank Alex. Brown may, in its discretion, elect not to accept purchase orders in options unless cash equal to the purchase price has first been deposited in my account, and may elect not to accept opening sale orders in options unless 1 hays first deposited In my account either the required margin or unrestricted negotiable shares of the underlying stock in an amount specified by Deutsche Bank Alex. Brown^ — Deutsche Bank Alex. Brown may refuse orders to trade options in my account if there are restrictions against my account, including restrictions regarding trading in the underlying security, or for any other reason, at its discretion. — Deutsche Bank Alex. Brown has set trading and exercise deadlines which correspond to deadlines established by the OCC and will accept no responsibility for completion of orders entered by clients after such deadline. — IVlargin, either in cash or securities, posted by me against short option positions, may not be included in my nnargin account equity or Interest EFTA01444988 computations. Deutsche Bank Alex. Brown may, In turn, use these deposits to secure said short positions with the OCC. — Option exercise notices assigned to Deutsche Bank Alex. Brown in respect of a short position in option contracts in customer accounts shall be allocated to customers of Deutsche Bank Alex. Brown on an automated random basis. 1 understand that if I am assigned, the assignment will be processed as a sale (in the case of a call) or a purchase (in the case of a put), settling two business days from the date of assignment (except for non-equity options, which settle for cash on the day of assignment) and tfiat I am obligated to deliver the underlying stock or required cash to Deutsche Bank Alex. Brown no later than settlement date. 4 I understand that margin requirements exist in connection with certain options and I agree to meet all margin calls as made by Deutsche Bank Alex, Brown. 1 understand that Deutsche Bank Alex. Brown, in computing the margin requirements for option positions, may impose a higher margin requirement for Individual option positions than other investment firms, and that Deutsche Bank Alex. Brown will inform me of its existing margin requirements for option positions upon request. In the event I do not meet margin calls promptly, Deutsche Bank Alex, Brown is authorized, in its sole discretion and without notification to me, to take any and all steps necessary to protect Itself in connection with put and/or call transactions made for my account, including the right to buy and/or sell short, or short exempt, for my accoum and risk any part or all of the shares represented by options endorsed by Deutsche Bank Alex. Brown for my account, or to buy for my account and risk any puts and/or calls as Deutsche Bank Alex „Brown may deem necessary for its protection. I further agree that any and all expenses Incurred by Deutsche Bank Alex. Brown in this connection will be reimbursed by me. 5. This agreement shall apply to all option orders for my/our account, whether or not such orders are executed. 6 I understand that options may be listed on one or more Exchanges and that if no Exchange is specified by me, Deutsche Bank Alex. Brown will use its discretion in routing my , order(s)„ 7. I hereby authorfee you in your sole discretion and with notification to me (or in the event of my death, without notification to representatives of my estate or lo my heirs) whenever you deem it necessary for your protection, to take such action, including, wilhout limitation, to buy, sell or sell short for my account(s) and my risk, puts, calls, or other forms of options and/or to buy, sell, or sell short any part or all of the underlying securities represented by options endorsed by you for my EFTA01444989 account(s). Any and all expenses, including, without limitation attorneys' fees and their reasonable disbursements, incurred by you in connection with such transactions will be reimbursed by me or by my estate. 8., Vou are under no obligation to convey to me any information relating to the underiying securities covered by an option or any securities related thereto, or any mformation relating to options whether such information is then or thereafter known or available. Any Information, advice or notification in respect to any option or any underlying securities or securities relating thereto which you may give me and which you are not required to give by the terms of this agreement or any other agreement, expressed or implied, shall not be construed as creating an implied agreement or course of dealing between us and shall not Impair the provisions of this or any other agreement between us. 9 This agreement and its enforcement shall be governed by the laws of the State of New York and its provisions shall be continuous; shall cover all options transacfions hereunder, whether you are acting as broker or principal, and all accounts, individually and collectively, which I may open or re-open with you; shall inure to the benefit of your present organization, its successors and assigns; and shall be binding upon me and my estate, executors, administrators and assigns, but no assignment shall release me from any of my obligations hereunder. Written notice of revocations of this agreement shall not release either of us from any obligations hereunder arising prior to the actual receipt of such notice by the other, 10. Whenever any law or reguiatlon is adopted which affects or is Inconsistent with any provision hereof, such provision shall be deemed modified or superseded, as the case may be. by such law or regulation, and buch provision!, as so modified or supGriseded and all other provisions hereof shall in all respects continue in full force and effect. All other agreements exisiing between us or'heroafier mado which, by their provisions apply to any of my transactions and accounts with you, shall be applicablo lo any of my options transactions and accounts where Ihey are not in conllict wilh this agreement. Should such a conllict exist it .shall lm resolved In favor of thi."! agreemeni. Olherwiso, lho provisions of each agreomont shall bo'applicablo: 11. /\s used harain, "I " and "me" rotors to all account owners. "You" and "Your" refers to Deutscho Bank Alex. Brown. iRlease Initial! Here;. 08-RVVM-01Z7 0M<V4 (05/11) 008404:051011 )11‘.. 1 . EFTA01444990 II iiiiiipiimiaiiBroiwwww6wawiwwaiwwwwwwwwwwii'w EFTA01444991 Special Statement for Uncovered Option Writers , I ^ .0# Account No. N4G023804 Account Name Deutsche Bank Alex.Brown A Division of Deutsche Bank Securities Inc. TjT So uthero Financial LLC There are special risks 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 writer 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 writer's account. 2. The potential loss from writing uncovered put options is also substantial. The writer of an uncovered put option bears a risk of loss if the value of the underiying 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 underiying instrument 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 exceed the equity in the option writer's account. 4. Uncovered option writing is thus suitable only for the knowledgeable investor who understands 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 writer would remain obligated until expiration or assignment. EFTA01444992 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. By contrast, the writer of a European-style option is subject to exercise assignment only during fhe exercise period. NCDTE: It is expected that the person(s) signing below will read the booklet entitled Characteristics 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 abovo 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 know/edge. I understand that you will rely on the representations I have made herein and in the Option Agreement and Approval Form ! provided to you in determining whether to approve my account for the options strategics I have elpcted and I hereby certify the truth and accuracy of such statements: '. Signed SignedSigned: Signed Signed Approved for: 7 .^ifricovered Calls / F^OP/IVIanager Approval: ( 3^^incovered Puts Date: 08-DBAB-01260M 14 A (2/08).' 1/ EFTA01444993 - r- -Ulati^ .c. Date,^ Date._ .. Date _ Date EFTA01444994