EFTA Document EFTA01283126

...J i .... Deutsche Bank Private Wealth Management ./7 Option Agreement and Approval Form Please Com ' Account No Account Name Southern Trust Company Inc _______. Account Type Cub Account Regrstration ENTITY O Managed Account • Discretionary Account O Other Name(S) of person(s) other than account owners) authorized to place orders for the account: Jeffrey Epstein, Jeanne Brennan Account and Owner Information (Provide requested information for each account owner (.Client"). Attach supplement to this Agreement if necessary I Name Southern Trust Company Inc Address 6100 Red Hook Quarter, 83, St. Thomas, 00802 Country Virgin islands Phone Number of Dependents WA Marital Status WA Blithelat Employer Business Phone . Business Address Type of Business Position Years Held Present Brokerage Accouels with: JPfifolialli Does the individual or entity that contras this account have the power to control any other Option Accounts) with Deutsche Bank Securities Inc.? 0 Yes II No If yet Please PrOvid13 the account number(s). WIN Provide List Client(s) Financial Information Approximate Aggregate Annual InOome of Account Owner(s) from All Sources Sources of Income )Approximate) Approximate Aggregate Net Worth Less than 550.000 Salary/Bonus so moormen• Mr Wore Ise rem waive ied Tered Prey*, Reaseeee• % 550.000 -599. 999 5100.000 5249.999 Interest/Dividends 50 % O Less than 550,000 O Less than $1/450.060 O swop() - 599.999 O 5 50 000 - 399.999 - A $25e000 - S499.999 w &s oop- 4999.999 Other (specify). % . O 5100,000 - S249.999 • 5100.030 - S249.999 O 5250,000 - 5499.999 N 5250.000 - 5499.999 S 31.000.000_ 12.499.999 % • 5500.000 - 5999.999 O S503.000 - 3999,999 52.500.000 - $4,999,999 0 55,000,000 % O $1,000.000 -52.499.999 O 51.000.000 - 52.499,999 • 52.500,000 - 54,999.999 MI 52,500,000 - 34,999.999 and over 0 55.000,000 end over 0 55.000.000 and over Investment Experience of Account Owner(s) Year Fen Traded Average I Trades Per Veer Average Snot Trades in S Average Size in Shire,! COreraetS TYPOS of PrtiCUS Option Experience Options 2011 10 $1,000,000.00 1,000 Covered Call Writing Stocks 2011 10 $1,000,00000 1,000 ff Purchased Options Bonds 2011 10 61,000,000.00 1000 Option Spreads Commodities 2011 10 51,000,000.00 1,000 ff Uncovered Put Writing Listed Stock Index 2011 10 31,000,81000 11000 IZ) Uncovered Call Writing OTC Derivatives 2011 10 61,000,000.00 1,000 O None Strummed Products 2011 to si000,o0o.00 too Other (Specify) Deutsche Sank Seventies Inc.. a subsidiary of Deutsche Bank AG. conducts investment banking end securities activities in the tinned States Ill IIII IIII a 09-PMS-Dt27 CY 14 (05/11) 006401 052711 CONFIDENTIAL CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0001648 EFTA_00149433 EFTA01283126 . , • Opticin Objectives (check ALL that apply): Income (covered call writing) IZI Portfolio Protection (protective puts) ❑r Speculation (spreads 8 uncovered writing) ClientIs) Strategy Requests (Please check as many of the following =elegies sought to be employed) 1 Covered.Call Writing Moderatefirsk. Calls fully covered by underlying stock. Stock may be called at any time or at expiration. requiring owner to soil at stake price. El 2. Purchasing Options Invobies utistantiril Risk_ Enure premium ts at risk. Profit or loss usually determined by selling position. If position is not closed or exercised by expiration date. options will expire worthless. 0 3. Option Spreads - Margin account required. !Vita", Sohettantial Rick. In addition to risk of purchasing puts or calls, if long side is closed out, leaving only a shod position, the firmness' 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 — Margin account end special statement for uncovered option writers required. ItudalicaS.Subslantiat Rigs. It assigned, the client must purchase the underlying stock at the smite prark, which may be substantially higher than the then current market price. 0 5. Uncovered Cal Writing - Margin account end special statement for uncovered option writers required. loyobses_Substangathisk. Writing ono:waled calls involves unlimited financial risk Option assignments require purchase of the underlying stock in open market to cocci delivery to Pbrehaser of option 1 have reed and understand all of the conditions arid stipulations on the reverse side of this form in regard to trading in options and represent that trading in options is suitable in light or ray investment obtectlyes. Maness' situation. risk tolerance and knowledge thereby confirm that I am the source of and attest to the accuracy of the above information and authorise Deutsche Bank Securities Inc. (also referred to herein as "Deutsche Bank Alex Brown") to verify any representation contained therein. et its discretion. I will promptly notify Deutsche Bank Alex. Brown, in writing, of any material change in the above-stated information. I acknowledge that I may obtain on options cleanog corporation prospectus upon request. I have received and Standardized 0 apinta; Signed ons." the Options Clearing Coyontion Disclosure Document entitled "Characteristics and Risks of rams; loin `f 113 Date Print Client Advisor Name Client Advisor Signature ROP Approval cA # TD47 Date Date I OPTION DEPT. APPROVAL: g i Covered Call Writing Purchasing Options K Option Spreads K Uncovered Put Writing K Uncovered Call Wnting DM 0e-PW84-0121 OM t4 (05.1i t) 006404 051011 SDNY_GM_00038825 CONFIDENTIAL CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0001649 EFTA_00 149434 EFTA01283127 t. Risks. Prohibitions end General Information Concerning Option Trading I understand that options transactions invoke a high degree of risk and offer no guarantee of gain or assurance against ioss Accordingly. d understand that prior to engaging in and 0001 transaction. I Mould review my present financial situation and determine whether it is advisable to noir the risk of loss associated with that particular investment 1. I understand that when I engage in Option trading I expose myself to certain, potentially substantial thuincial risks in addition to those identified on the front side of this form under the hearing -Cliental Sanwa Requetift." inducting but not km4cd to the following. — I understand that I should not buy an When unless I am able to sustain a total Ices of the premium and transaction costs. — g I sea ante) tavern =bons. I widersterio that I may forfeit participation in capita gene out retain risk of pantipstion in motel lases in oho undersea; serallitY Sand that it an exercise is assigned to me. I may be forced to liquidate my POSitioi in the undertying security ate time whoa) may be unfavorable to me. I eso understand that 1 shodd rot see ante) a covered tall option unless I am prepared to deliver the underlying security (erase:terry convertible. exchangeable, or exercisable into sat, unclothing security) upon the exercise of the option. — ff I sell (ante) uncovered (naked) OptiOrd. I risk substantial capital loss if. end to the extent that, to minket price of the underlying Securthl increases abaft the sinks ace of aal or decreao below the seas price Meat If an exercise is assigned to me. it wit in s likelihood, be at a time Mild, wit force me to arm such a capital loss. I understand that I should not self (wile) a put option or an uncovered tell anion, especially an index option, unless I am able to sustain potentially unlimited losses. — lam aware that varlets factors may affect the price of an OptiOn coneal. such as the relationship between the exercise price and market price of the underlying security. the time period remaining until the option expires, and the price fluctuation 04 other characteristics of me undelying 'aunty. — tam aware that thezespective option exchanges I-Exchanges") may, in their discretion and from time to time. restrict IttehliCtiena in particular opines or the exercise of optical contracts in the inane" of maintaining a fair and orderly market In opal contracts or in the undolving security, for the protectionel investors. I understand that I may no be able to close a position in the event that a smoothy market in the Option oases to axial or Be Hating caching* restricts or *noon& trading in die option — lain aware that the Exchanges have established restrictions on certain opening pssichase red sale transactions on the Exchanges which are considered to be restricted °Pans 2. I understand and agree that my eccountal with Oeutikbe Bank Secunties Inc (also referred to herein as "Deutache Bank Alex. Brown') vorn he handled in at °prance with the Rules of the Financial Industry Regulatory Authority rthePE0, end the Exchanges on Mich listed options are traded and ce the Options Gearing Corporation l'OCC1. as expressed in its PrOSPeetus I am aware of and agree to be bound by such rules. In accordance with such rules - I will not attend to anent al any time. Niter by meter Or Canted with others a position in excess of the limn presaibect from time to time or the Exchanges Fa the purpose of computing such limits, I oftleistand that total lava al ward and short put Options of the same yodellers() stock must be Windt* Cemlnite the position limit Saliba, total long put Options and short call options of the an overlying stet must be added to compute the position — I will not atsenun to exercise, either by casell p in Mend with others. during any mood of five consecutive businitte days, a quantity n neon of tie limit preuriond by the Exchanges. -- I understand that if found in violation ol either the position lime or the exercise limit I may be suoject to sanctions imposed by the Exchange involved and that these sanctions may Mande liquidation of It e Preteens in la0 atlon. 3. I understand that Deutsche Bank Alex Brown hes males which may be more rennin Iran or impose requirements in addition to those Mine Eachanges. FIMIA Ur the New York Stock Exchange. I agree to abide by such policies as a condition of dong business with Deutsche Bank Alen Brown I understand that these policies include but are not &riled tO the following: — SetVernenl dale 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 purduise orders in options unless cash equal to the purchase price has first been deposited in my secant and may sect not to accept opening sole orders in options unless I have first deposited in my account either the repaired Marian or unrestricted negotiable shares of the underlying stock n en amount specified by Deutsche Bank Alex Brown — Deutsche Bare Alex. Brown may refuse Orders to Made ootsons in my account if there are restrictions against my ottare. Inducing mina:ions regal:bp trading in the underlying security. or for any other reason, at its discretion. — Deutsche Bank Alex. Brown has set Paling and exercise deaMmes which correspond to descents established by the OCC and vie accept no responsibility for completion of orders entered by clients after such deadline. — Margin. either in cash Or wasfdes, posted by me against short option positions. rney not be included in my margin account equity or interest computation. Deutsche Bank Ala Brawn may. io turn we these deposits to secure said Shin positions with the OCC. — Option exercise adios assigned to Deutsche Bank Alex Brown in respect Walton position in option contracts in customer aCCOuntS shall be allocated to customers of Deutsche Bank Alex. Brown to an automated random bias I understand that diem assigned. to asspornent wilt be processed as lin obi case el a tee) or a pachase fin the case °lapel). seeding two business days from the date of assignment (except fa noneguity options, which settle for cash on the day of assignment/ and that 1 am obligated to deliver the underlying stock or required ash to Deutsche Bank Alex. Brawn MIDI& than settlement date. 4 1 understand that margin requirements exist en cantata with certain options and I agree to meth all margin calls as made by Deutsche Bank Nes. Brown. 1 understand that Deutsche Bank Net Brown, in computing the margin teceirentents for option Pashons. may imPOSe a holm margin lequinnent for rinedual option paeans than other investment land, arid 1St Deutsche Set Abe Brawn wit info. in rte a its existing nuncio rewirernerat for Opion positions upon request. Si the eventide not most margin Calls Vera*. Deutsche Bank Alex. Srowneauthonzed. in Os sole discretion and withal noblicaton to me. to take and and all steps necessary to protect itself in connection with put andfor cell traneaccitins mark, for my account, including the tient to buy and/o' sell son, a then exempt, for my &ening and Ask airy ail or am of the shares represented by OPtiens endorsed by Deutsche an Alex. Brown fOr my swarm. or to buy for my account and risk any puts and/or calls as Othrtsche Bank Alex. Brown may aeon necessary for As protection. I lanai agree that any and all expenses Wanted by Deutsche Bank Alex. BMWs in the connection wall be reenburSed by Me S. Ms agreement shalt apply to all option owlets ler 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 Net green will use As &suchen in routing my orderfs) 7. thereby authorize you in sour sole discreet', and with notrficatien to me (or in the event of my dash, without notification to representatives of my estate or to my heirs) whenever you deem it necessary for your protection, to take such Osten including. wettest artitatien. to ow. PP er sell shun foe my accountls) sea my risk, len CaS. Of oche, fours Of options ardor to buy. sell, or set shaft any pan or a4 d the underlYing Securities represented by anions endorsed by You foe my aa0Unfl5)- Any and all expenses, including, without limitation attorneys' fees and their feasonabte disbursements, alcoved by you n connection 'nth dual transactions will be reimbursed by mania my estate. B. You sty under no obligator to Convey to me any inforathon relating lathe underlying securities covered by en open Or any securities related thane...Many information Mating to °Pans whether such information it then or thereafter known or available. One infermann. Idea or stains. lei inn& to any option or any undertysig securities a SeCunlieS Sating thereto which you trey give Me and which you are not required to give by the terms Of this agreement a any other agreement expressed or impli o. sham not be on:trued as creating an MOMS agreement or Coursed mating beneath us sea sea nor mean the prorisens a this Or any other agreoromet Langan us 9. This agreement and its enthrone& mall be gemmed by the laws Of the State of New York and its proirisions shall be continuant; shall con all options transaction hereunder. whether you are acting as broker or potion end an &commis, individually and collectively. Which I may open or reopen with sou, shall inure to the benefit of your present organization, its successes and assigns: are shell be binding uoon me and my estate. executors, sdesorstrators and swans, hut no assigneent shag release we from any of my obligates heietininr. Written notice of revocations of this agreement shall not release tithe of us from any obagations hereunder arising prier to the actual receipt of sad, notice by the °the, . 10. Whenever any low or regulation is adopted which affects or s inconsistent with any provision hereof, such provision than be deemed modified or superseded, as the case may be. by such law of nnjulatiOn, and such provisions as so modified or Superseded and al other provisions hereof shall in all respects continue in full roma and effect All other agreements thong between as Cr boat* made wady by their provisions apply to any of my transactions and accounts with imp shall be applicable to any ol my aeons transactions and accounts where they are not in tantrum wen this agreement Should such a conflict exist it she te reserved in frier d this agreement. Onenraile. the provisions Of each agreement shall be aPthitable. 11. As used hereon. -r and "me" refers to all account owners. "You" and "Your elan to Deutsche Bank Alex Brown Please Initial Here' 0127 O.4 14 (0911) 008404 051011 SONNIGNI_0003882) CONFIDENTIAL CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0001650 EFTA_00139335 EFTA01283128 Special Statement for Uncovered Option Writers Account No. Deutsche Sank Alex. Brown A Owi 04 Ot pµtt BOI ceno;tias lie Account Name South€m Trustrompanyinc. a There are special ns vered option writing which•expose theinvestor to potentially significant loss. t 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 underlying instrument declines below the exercise price. However, since stock prices cannot be lower than zero, the maximum loss is equal to the stnke 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 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. bas the firancial 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. 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 the exercise period. NOTE: It is expected that the person(s) signing below will road 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 above etatement 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 to nd knowledge. I understand that you will rely on the representations I have made herein and in the Option A ment and Approval Form I provided to you in determining whether to approve my account fer the options strategic: ave elected nd I hereby ruth and accuracy of such statements. Signed Date Ida - # 1 / 3 Signed Date Signed Date Signed Date Oate Signed Approved for: Illy‘overed Calls ROP/Manager Appnwat /......_ acovered Puts Date 08 O8A130126 OM le A WON SDNY_GM_00038827 CONFIDENTIAL CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0001651 EFTA_OOI 49436 EFTA01283129 Joint Account Supplement to Option Account Agreement and Approval Form Account No. /4400260" Deutsche Bank Alex. Brown Account Name Slone" TM' owfwe'm Serail k< a Second Account Owner Personal Information: Name ki" Home Address me RsNab" Si Mass VI. WOOS SI Home Phone__ Employer Swiss FirosseaISO dorm Woad Number 01 Dependents Marital Status Outdate Business Piton Business Address snorts leww.. at Nora fl C0102.134S Type of Business Ft's" Position la••••••• Years Held Present Brokerage ACCOunts with Does trio owner hove thc power to conked any other Option AD:ovens) With Deutsche Bank Securities Inc 2 9Yes O No If yes. Please Provide the account nut-liberal. PI."' Sows ton Third Account Owner Personal Information: Name Pau Home Address Home Phone Number of Dependent, Mantel Status einndale Employer Business Phone " 1443-6612 Business Address Typo of Busnoss Position Years Held Present Brokmage Accounts with Does the. owner have the power to Control any other Option Account%) with Deutsch' Bank Securities MC 2 el Yes O No If yes. please provide the account rumber(sl. Fourth Account Owner Personal Information: Marne Ian Home Address F Homo Phone Number ol Dependents Marital Status antidote Employer Business Address Business Phone Type of Business Present Brokerage Accounts with Dees this owner have the paver to control any other Option Accounts) with Deutsche Bank Securities Inc IZIYos If yes please provide the account number%) Position Years Held RIM Account Owner Personal Information: Name Home Address Malalabas Home Prone Number ol Dependents Marital Status Birdidate Employer Business Phone Business Address Type of Business Positron Years Held Present Brokerage Accounts with: Does this owner have the power to control any other Option Accounts) with Deutsche Bank Swamies Inc t OYes ONO II yes please provide the riosount number(p. 06 Due Mal OM la a 0 :till SONY_GM_000388-2 CONFIDENTIAL CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P 6(e) DB-SDNY-0001652 EFTA_00 I 49437 EFTA01283130