EFTA Document EFTA01417317

Subject: RE: Southern Financial - IA Request [I] From: Vahe Stepanian < M> Date: Wed, 29 -0400 To: Andrew Xu Roddy Moore Cc: Daniel Sabba Keith Buckholz Stewart Oldfield Classification: For internal use only The client would still go long multiple CUSIPs — in other words, he would still be diversified because he wouldn't be buying $20mm in just one or two names. Would you be more comfortable if we agreed upon a minimum number of CUSIPs as it relates to the $20mm notional? Best, Vahe From: Andrew Xu Sent: Wednesday, June 29, 2016 9:38 AM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only No that doesn't work. The basket creates diversity which helps your client. Individual TRS on each stock doesn't do that. Andrew Xu, CFA From: Vahe Stepanian Sent: Wednesday, June 29, 2016 8:34 AM To: Andrew Xu; Roddy Moore Cc: Daniel Sabba; Keith Buckholz EFTA01417317 Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Andrew — quick follow up question. Global Markets informed us this AM that it isn't operationally feasible to execute the basket of preferreds as one Total Return Swap. Instead, the client would need to trade an individual TRS on each CUSIP in the basket. With that said, would the IA remain 40% for each TRS? Best, Vahe From: Andrew Xu Sent: Tuesday, June 28, 2016 1:19 PM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Ok thanks. I'm satisfied on our end. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 1:17 PM To: Andrew Xu; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] EFTA01417318 Classification: For internal use only Andrew — just in the brokerage accts there are > $100mm in assets. Thank you, Vahe EPSTEIN SOUTHERN FINANCIAL LLC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 98,610,505.00 EPSTEIN THE HAZE TRUST UAD 02/09/99 JEFFREY EPSTEIN & DARREN K INDYKE TTEES 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 41,108,732.17 EPSTEIN SOUTHERN TRUST COMPANY INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 7,668,026.80 EPSTEIN JEEPERS INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 7,108,576.30 EFTA01417319 EPSTEIN J EPSTEIN VIRGIN ISLANDS FOUNDATION INC 6100 RED HOOK QUARTER B3 ST THOMAS VI 00802 1,367,641.87 EPSTEIN JEFFREY EPSTEIN 6100 RED HOOK QTRS STE B-3 ST THOMAS VI 00802-1348 667,218.67 From: Andrew Xu Sent: Tuesday, June 28, 2016 1:04 PM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only I'm ok with the 3/31. Do we have a bank / brokerage statement? How much assets they have with us? If they have a lot I don't need an updated one. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 11:21 AM To: Andrew Xu; Roddy Moore EFTA01417320 Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Thanks Andrew. For the caveat - we received updated financials which were sent over to your team as of 3/31/16 (01) - will forward under separate cover. Per the agreed ISDA amendment (attached), the client has 10 business days from the end of the relevant calendar quarter to deliver updated financials. Let us know if the caveat still applies? As of now the client has enough cash in house to meet the IA requirement — we can revisit if he wishes to post other assets. Best, Vahe From: Andrew Xu Sent: Tuesday, June 28, 2016 11:00 AM To: Vahe Stepanian; Roddy Moore Cc: Daniel Sabba; Keith Buckholz Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Hi Vahe, We can do 40% IM for this trade. Caveat, we need updated financials and brokerage statements. Additionally we need to discuss what type of collateral they are going to post. If non standard we should talk now, but if standard(cash, munis, treasuries) we have no issues. EFTA01417321 Thank you. Andrew Xu, CFA From: Vahe Stepanian Sent: Tuesday, June 28, 2016 8:24 AM To: Roddy Moore; Andrew Xu Cc: Daniel Sabba Subject: RE: Southern Financial - IA Request [I] Classification: For internal use only Roddy / Andrew — please let us know. Best, Vahe From: Vahe Stepanian Sent: Monday, June 27, 2016 11:44 AM To: Roddy Moore; Andrew Xu Cc: Daniel Sabba Subject: Southern Financial - IA Request [I] Classification: For internal use only Roddy/Andrew — Southern Financial has indicated that they would like to enter into a TRS on the attached basket of preferreds. The total notional size would be $20mm and assume ly tenor. What would be the required IA for the attached basket? EFTA01417322 Thank you, Vahe Vahe Stepanian Key Client Partners Deutsche Bank Securities Inc. Tel. Mobi e Email EFTA01417323