EFTA Document EFTA01432606

Subject: does that work? should we add anything or take anything out? [I] From: Daniel Sabba < Date: Tue, 11 Nov 2014 09:57:33 -0500 To: Paul Morris Stewart Oldfield < Classification: For internal use only Per our agreement, we liaised with the desk head in our institutional sales and trading platform for equity derivatives and confirmed the points we discussed yesterday: - balance sheet charges are the primary driver of the price difference you observed between our quote and the one you received from competitors primarily funded in USD - lmL + 75bps for ly TRS is the financing charge DB would charge a hedge fund or other institutional client today - our trading heads were not surprised competitors primarily funded in USD were offering a financing spread 20 to 30bps lower than DB's - the trading desk can sometimes offer improvements on names they are axed - i.e. when the desk has counterparties interested in taking the other side of the TRS. AAPL is not one of these names We can still offer the following terms: Notional: 1,000,000 shares of AAPL Term: 1 year Southern Financial receives: Total return in AAPL Southern Financial pays: lmL + 75bps Commissions: 3 cents per share to enter and exit the trade. There is no additional break up fee. Execution: We would suggest best efforts VWAP for execution (Embedded image moved to file: pic10910.gif) Daniel Sabba Director I Key Client Partners Deutsche Deutsche 345 Park New York Tel. Mobile Email Bank Securities Inc Asset & Wealth Management Avenue, 26th Floor NY 10154 (Embedded image moved to file: pic17933.gif) EFTA01432606