DS9 Document EFTA01097635

From: Zwim2, Dan ‹ > Sent: Monday, January 29, 2007 7:07 AM To: Cutler, Lawrence D. ‹ > Subject: Re: URGENT - HCMZ TRADING ALERT We still have every right to hold the assets. We will simply let them know that we will not be responsible for any economic harm they cause by their withdrawal. They have no right to the assets. If they want to gamble on how the abets do without our being able to trade them, then they will have to accept economic consequences. Further, this account as it was structured was consideration for their interest in the firm's earnings. It is unclear they are owed further distributions until they recognize that. ---- Original Message ----From: Cutler, Lawrence D. To: Zwim2, Dan Sent: Mon Jan 29 07:03:28 2007 Subject: Re: URGENT - HCMZ TRADING ALERT Let's discuss, need to provide u with additional info. We have been terminated as investment adviser and they and withdrawn trading authority at the pb level ---- Original Message ----From: Zwim2, Dan To: Cutler, Lawrence D. Sent: Mon Jan 29 06:58:11 2007 Subject: Re: URGENT - HCMZ TRADING ALERT This is no different than jcff cpstcin saying he wants his $80mm. He simply has no right per our contract. Original Message --- From: Cutler, Lawrence D. To: Zwim2, Dan Sent: Mon Jan 29 06:48:01 2007 Subject: Re: URGENT - HCMZ TRADING ALERT This is correct based on letter we received friday Original Message ---- From: Zwim2, Dan To: Lee, David; Cutler, Lawrence D.; Wilk, Jim Cc: Sindell, Stuart; Suan, Chris Sent: Mon Jan 29 06:42:08 2007 Subject: Fw: URGENT - HCMZ TRADING ALERT CONFIDENTIAL DBZCO_FTC0004127 EFTA01097635 What on earth is he doing? Pis handle asap as this is totally 100% incorrect. ---- Original Message ----From: Ramzan, Shahid To: Zwim2, Dan Sent: Mon Jan 29 06:39:44 2007 Subject: Fw: URGENT - HCMZ TRADING ALERT Sent from my BlackBerry Wireless Device Original Message ---- From: Racusin, Robert To: Fong, Herman: La Hausse de Lalouviere, Dominic; Ramzan, Shahid; Song, Ken; tradingops; cdssupport; asiaops Cc: Lau, Jacky: Wilk, Jim: Butchkowski, Alisa; Sandler, David; Lynaugh, Donald; Zia, Khalid; Jacoby, Edward; Cutler, Lawrence D.; Lee, David; request Sent: Sun Jan 28 17:24:57 2007 Subject: URGENT - HCMZ TRADING ALERT All, Effective immediately, we are no longer trading for HCMZ's managed account. This includes all closing trades - Cover Shorts, Long sells, etc. Essentially, we need to proceed as if IICMZ did not exist. That means that if you hold 3,000,000 shares of IBM and 500k was HCMZ, then as of now you own 2,500,000. Obviously this change opens us up to potentially huge operational risk. To combat this the best we can on short notice, David Sandler and I will be sending around amended PNLs and position reports in both PDF and excel. These reports will reflect your net position X-HCMZ. PLEASE TRADE OFF THESE NUMBERS!!! We are going to run these for the DBZ as well as ZS portfolios. I urge all trading assistants to double check these numbers when they arrive for reasonability, so we do not create over-long or over-short positions. The new fund groups we need to use in both VPM and MACGREGOR (khalid and Ed, pls make sure these changes are effected immediately in Macgreg if possible), arc: Zwimxhcmz Zwirncdsxhcmz I realize this is a big change and im certain we will have to make other adjustments tomorrow, but I urge all traders and trading assistants to be diligent in minding your positions. Again, no trades should be done on the derivative or cash side that will have an FICMZ allocation or take into account HCMZ's share of an existing position. if you have any questions, pls contact myself, jim wilk or lawrence. Reports should follow in the next few hours. CONFIDENTIAL DBZCO_FTC0004128 EFTA01097636 Th.' Rac CONFIDENTIAL DBZCO_FTC00041 29 EFTA01097637