exhibits 1

United States SenatePERMANENT SUBCOMMITTEE ON INVESTIGATIONSCommittee on Homeland Security and Governmental Affairs

Carl Levin, ChairmanNorm Coleman, Ranking Minority Member

E X H I B I T L I S THearing On

DIVIDEND TAX ABUSE: HOW OFFSHORE ENTITIES DODGE TAXES

September 11, 2008

1. How Offshore Entities Dodge Taxes on U.S. Stock Dividends: Swaps.

DOCUMENTS RELATING TO MAVERICK CAPITAL, LTD.2. UBS email, dated November 2004, re: Dividend Enhancement Flow. (Attaching Dividend

Enhancement.doc).3. Dividend Enhancement Transactions, DRAFT - AS OF 4/26/99, prepared by Maverick Capital.4. Description of Dividend Enhancement Transactions, dated December 12, 2006, prepared by

Maverick Capital. 5. Maverick Capital, Dividend Enhancement Transactions Memo, dated June 2005. 6. Maverick Capital emails, dated November 2004, re: Microsoft strategy on capturing the $3.00

dividend for non-US holders only. (Jim has been working on this for the last 2 months and hegot UBS to match the more aggressive offers we were getting from the Street. For LDC only -we lent the stock out and will get 97% of the dividend.).

7. Maverick Capital emails, dated June 2007, re: FIN 48 Tax Positions - DRAFT memos.8. Maverick Capital/Ernst & Young emails, dated February 2007, re: AMTD Dividend. 9. Domestic Dividend Enhancements, undated document prepared by Maverick Capital. 10. Excerpts from UBS Documents, regarding UBS Cayman Ltd. (UBSCL).

DOCUMENTS RELATING TO HIGHBRIDGE CAPITAL MANAGEMENT, LLC11. Lehman email, dated November 2004, re: Highbridge Utility Fund - Electronic Execution into

CFD. (...also in discussions with them around yield enhancement on their long positions byusing a CFD. This service involves tax risk for the firm which would be reduced if we canroute their electronic trades direct to CFD instead of their PB account.).

12. Lehman email, dated November 2004, re: Highbridge LPS Basket. (...I would like to move thepositions back to their PB account.... Would hate to do this and find out down the road thatHB owe withholding tax on the dividends.).

DOCUMENTS RELATING TO ANGELO, GORDON & CO.13. Angelo Gordon email, dated August 2004, re: CFDs. (a cfd is used to circumvent the tax.).14. Angelo Gordon email, dated July 2006, re: Notes from last meeting with Anthony Harpel.

(Contracts for Difference – used mostly in offshore fund – so we don’t have dividendwithholding CFD is probably about 20% of portfolio).

15. Lehman email, dated December 2004, re: Bloomberg internal message sent from PATRICKRYAN. (...it turns out the majority have partial withholding so need to stay in CFD.TYPICAL!).

-2-

16. Lehman emails, dated May 2002, re: SWAPS FOR ANGELO GORDON. (rich, I agree.....if thepositions are for longer term we can pay 100%. * * * I think we have to do this to keep AG’sbusiness).

DOCUMENTS RELATING TO LEHMAN BROTHERS INC.17. Equity Finance Yield Enhancement, presentation document prepared by Lehman Brothers Inc.18. Lehman Brothers/Highbridge Capital email, dated July 2004, re: CFD Presentation. (The CFD

is usually used for yield enhancement purposes....). 19. EFG US Dividend Exposures, February 2005, Lehman Brothers presentation. 20. Lehman Brothers email, dated September 2005, re: MCIP. (HB looking for Yield Enhancement

on a large position.).21. Lehman Brothers emails, dated October 2004, re: Trade Confirm. (fyi, the only reason for HB

to SWap is for yield enhancement.).22. Lehman Brothers letter to Maverick Capital, dated April 24, 2001, (Dividend Enhancement

Solutions - We have a variety of solutions using swap and securities lending vehicles forachieving yield enhancement.).

23. Lehman Brothers emails, dated January/February 2004, re: Long Transfers. (...tell them aboutdoing long swap/cfd business around record date items so that they get enhanced div treatmenton us stocks....).

24. Lehman Brothers emails, dated June 2003, re: US Cayman 70% trade.25. Lehman Brothers emails, dated January 2005, re: Conclusions of US div meeting. (Are all the

major competitors in the yield enhancement game? * * * Borrow via Cayman is consideredby Tax dept to be lower risk than CFD in LBIE.).

DOCUMENTS RELATING TO MORGAN STANLEY & CO.26. Morgan Stanley email, dated July 2004, re: MSFT Total Return Swaps. (Here are the main

points regarding total return equity swaps on MSFT: (...Morgan Stanley can enhance thedividend payout from 70% or 100% through a total return equity swap.).

27. Morgan Stanley email, dated August 2004, re: CRM (MOORE CAPITAL) - Microsoft totalreturn equity swap/Moore Capital.

28. Morgan Stanley email, dated July 2004, re: MSFT div timing. 29. MSDW Equity Finance Services (Cayman) Limited (“Cayco”), Outline operating procedures,

undated Morgan Stanley document.

DOCUMENTS RELATING TO DEUTSCHE BANK AG30. Deutsche Bank email, dated October 2004, (...looking for a way to maintain exposure to MSFT

but avoid the dividend payment.). 31. Deutsche Bank emails, dated September 2004, re: Extraordinary Dividend Rules and Microsoft

One-Time Dividend. 32. PROJECT: DBIL Rehypothecation, February 2007 Deutsche Bank document. 33. New Product Application, dated January 2005, Deutsche Bank International Limited (“DBIL”)

Equity Finance alternative structure. 34. New Product Application, dated December 2003, Deutsche Bank International Limited, Jersey

(“DBIL”) Securities Borrowing and Lending - NPA Support document.

h h h

'"a.ru3=

V)00'""'c:CV"'Os:

0-C~uo..V)

vio

:)c:o'"CV)(l!CVbO"'oC'"CV0-..0-..c:LICV~o..'"::o3=o~

c:'S:QJ..i:coUL-o+-COc:QJ

VI

,"

........

Permanent Subcommittee on Investieations

EXHIBIT #1

,~,~~

From:~ Sent:

To:Subjec:

veronic.wilthew~ubs.comMonday, Novembe 01, 2004 12:41 PMMichael.Madaio~ubs.co; Mark.Niesen~ubs.comFW: Dividend Enhancement Flow

Importnce: High

Attchments: Dividend Enhancment.doc

IIDien

'lnæLdo (26 I


EXHIBIT #2UBS 000509

Dividend EDbancemeDtFor US seties paying divide. th IR reuir a 30% widdlding la be levied agaiii offhore entities.11 means th a Caym entity su as Maveck Fun LOC would only receive 70% value on thr USdivide UBS offer a prouct knwn as "Dividend Enhceen", wheby Maverck LOC is able to reaize agrte poon of thir divide. an pay an amt les th lOOk of a dividen, if th ar short a seurty. Itwork on th bais th UBS ca get more favorable tr th an offshore enty an thus ca put thfollowin argement in plac, wby UBS passe an en amDt back to th clienl Th OSLA exeçtedbeee Maverck LD an UBS Cayma Ud gover th leng an bonowing of seurties betee the 2Cayma entities, an allows the lcoer to be free frm paying aditiona withlding. The sts ar as follows:

P,oci)2)3)4)

UBS Caymn bonows ii US stk &o Maverck Fun LO.UBS Caym execute a tota rc swa with UB AG, whcby Caym are 'long' the rern.UBS Caym sel the stk to UBS AG Londn in ord for UBS AG London to hege the swa.UBS AG Londn create a lo baet tce (in swa fonu), inuding the seurty tht it reved frmUBSCa~ .

S) UBS AG London sell th physica sto to th swa cowwar as th other side of th swa tronUBS AG Londn th reve re on th sw, iDcludng 100 of th dividend vaue (as a pa ofth swa trcton), on th st reved &om UBS Caym

6) UBS AG Londn retrn 90% of th value of the divide to UBS Caym ths is doe by way of acommssion, to reflect 90"k vaue of such divide

7) UBS Caym pas th 9Ok dividen paym onto Maverck fun LOC.

NOT: Th rationae for a Caym regis entity to lend th applicale seurties to UBS Cayman is due to IRSNote 97-6. which stte th whe lenng is conducted betw two entities in th sa jursdiction, th(foreign to foreign) payment of th 'sub divind will not be subject to US widdlding la. If a Caym entisimly lent th stok to UBS Londn, for insce. tht sub dividen, due back t th Caym entity, would be

sujec to US withldig ta Th sub divi in tts inta is th dividen tht get pa to th len, as

opse to th tre divien tht is pad to th holder of re Ths note wa is by the IRS in 1997, anPai Weber receive an opilÚon from exltl COI. Call Gordn, tht no US witholding would be

aplie, hence th intruction of th Paine Webbe Caym brach, an Divid Encmt as a prodct

At the "pirtion of th trtion UB AG Loudn purhaes the stok, in th mact in th oae of UBSCaym Th stock is then re to Maveck Fun LOC, an the lrtion is clo

Th tr is execute ex-dvidend da. an th loa stys open for a minium of 30 days, an a maimum of 45

days. Genally however these trons have 30-åy matuties. Th stck bonow is done at i OOk. i.Co ther isno nwging or hacuttng of th cah or seties. an UBS Caymn gives 100% of the cas vaue to Maverck

as collate on th tres.

Mark to Market & ThrholdTh Client Integrtion Tea molÚto th vaue of the seurties bon-owed aganst th loan an may ca or pay

collat on the basis of a $5.5 milion coll thhold. Tls limt was approved at th inction of iJs

bune, by CRC widd UBS Finaial Sc, formy PaillWcbbe. All stk loan expsur ar rerted onan intored within the Credit Enne sym.

Th UBS Swas both beee UBS AG Londn an UBS Caym as well as dd one betwee UBS AG Londonan th street coun are boke in WISDOM, whch fee GERONIMO. It should be note tht the swapa of ths trtion ar not expsue to Maveck, an thus ar not se withn th credit syste. Rath tharc UBS inte an exter tntion enlin us to facilta Maverck's requireents.

UB Group - Apprww11 prct wa approved by th UBSW Executive Conuittce in Marh 2002 an Grup Tax in May 2002.

. AD Ov Seurities Leng Agrent ('OSLA') nee to be exec for tts pruc betwee MaverckLOC an UBS Caym Ud. Als. ta apova is reui for th prouct whn it is rllt apprved for any givenclient However al tres tt ar subjec to a blanet approval

Th majority of divien cn troDS ar done with Maverck LO, whle ocooay a tre willbe done with Maverck IL Limits an exposure.ar monitore in th PaiiiWcbbe Cayn: moule of th Credit

Enne. For LOC, Volume exsue amunts to CHF 758 mio whle risk exsur is CHF 95 nn as of Apr 22,20. Th trODS tae plac ove divide paymt peod, whch is quay in the US. an tyicaly lastfor one moth an a few days. Th ter of dd tres is sbort an exposure usualy drps siggricy af the

first mont Beow se lenng ri an volum liiis ar recmm to cove the dividen enceenttr.

Confidential TreatmentRequested

UBS 000510

Leal Opinion

Alæmaiive TranactiIt could be ared th a swap ppvides che sa beefit in th th re, 10 a client, will inlude th divide

vaue; thfore wh would dd ranae be for enteng in the aforemtine convolulc stClle? A TotaRet Swa ca oft be us, an indee is. However if a fu ba underying inveslors tht may suffer caitalga ('0 consuc, if th undyig stk is sold, a Tota Retu Swa aat be used. To execute ddSwa, the stk Dee 10 be sold as a hege, thus th sale may attt OO, possibly iigag the dividenwithldin gan. For ths rean, may Caymn ba fu us th Divide Enement tr, versu Swap,to aclleve thes befits.

Confidential TreatmentRequested

UBS 000511

Ap22, .1999 DRAFT- AS OF 4/26/99

TO.¡ ~erickFund, Loo FileMavnckFund11,Ltd.Fíle

Ftoxn¡ Keith :Hent-Qrt

Diyi44 Enh88cement r~saoO!s

MaVe1ok i$ theadvinr w¡: ~v~()fis1ore fUds tba aa. having ttßß withheld otJdivid~nd$ receíved t' United .State&cop~~. Morgan Staey há$ àpproached uS

about entering into :stQck lølUag~i:entSthtwould nni.ninizß the adverse efects of

D.S.witholding.

StQCk LQan

Ou Gaynan 1$1and$ fuds wQUldente into a $1Qçk-loan01.ea..U.S, sect1itythtis

sc:hù1ed to. pay.j divided.W e would. lQa tbesetttý to a. Oaynan Mbrg¡. Staneyentîty. They 'would pay us: an àtounteq)1 ta7ooA) oftnëdivroend. paid on tht Seeu:ty(dívidenentitlement). They would also

pay. us a :stck loan f-ee equa to l3%ofthdiViend. Thisst$k loan fee is negotiable. The end result would be that we wouidreceive 83% of the dividend: i~ad 9ftle.n()mm~ 7Q%. Mocgan wì1then ente into àswa with a 'Q.8.coumetää. They are 'ta ttep(siton tht aU paynøntS. under the

swap are not subject to withoIdin, .1bsremoves the dividend fio:t the U.s, withoutI$ubjectig ittpi,ywítIo:ldig. .

U.S. withöldîn~ taes on dividendeetitIemen.t

Morgan is relyi on Nottcc" 97-66 to avoid withholdìngon the 4ivid.endentit1ei:eetThe premse of this Notice is tnt withòlding is req,uiredcm substÎtutedividend

paymentt betWee foreentItes ,only if the foreign payor's U.S. withholdig tax rate isIQwertha:thc Payee's U.s~ wittoldi ta. ra.$inccbo't the payoI andpayee in OUt

tfatåC1iøn ~ Cayr enttie$ šubject'to thee ~e. r~e,there is presumably nowitholding ro. the. payment. Th¡¡.notiG,e is desgnd to enSl,e tha the. appropriate U.S,

ta iswithêldbgt ttit is only withhd once;

Notice 914;6ad:dsea siwati~ w~te ¡¡l1iina ahaînofi;sÇictions are Setiesloo$. It does hØt addr äšìtutìoi1. wher one of the li is 'a swap. . As mentioned

aòove.. ths Notièeases the iswitbolding. at. $Qnn poiit Ìnth chai11 It specWqa11y

stteS that~'to the extet a t~Q- foreiBI sëëWWties'lc,àll or sale-repurchae. tta1sation

would reduce U.s. witboldig ta. an iwrementaJ amOun øf U.s. witholdin .GG js

imposedon the supstinnte payment" When compared 10 à direct IOa1 tQ a U.S. entity,tbstrs3ètìoiircducestheU.s.witbolding ta. Howe'!ër~ weëöu1d argue that the SWàp

Permanent Subcommttee on Investieations

EXHIBIT #3 MAV0001082 .CONFIDENTIAL

, ~,

does llOt tedttthe Us. Witlöld1IlS because there wptid bø no Withho1dtg if we had

donç the $\ direëtlywitha U$, ooUJterpary. AssUing the swap is not $ubject to

wittoldi.g, the Serjce .1:. notben hared by the 'addtional step of a. foreign"'to""fotigp securtisloäThe Notioea:tod1gar.1h forëign~to-foreigilöan whendellgif U:S, wjbblding baa bee rriued becaa~ejt at4es that'1\o withholèiIpg

ta is requd in $itUQi1$ Whe tt~aCUQJm arimtøred imp betWéee residênts of the

same coutr.;' Ris.the swap an Dot the loatlatrøuu th~ U.S. wìthholding $0 the

exposureHesWi that transø£ti~notthföreìgg to foteigu loan..

,i,.~

Unùert1$.ana1y$is~ tteforeignllc: oftheseçtjesa.pees toJiaveverlitte U.s. tax

exposure. Even if~e were e'X$ur,tteSetVî~wöuld i~k tò the u.s. wit;lc)g

agen for the payment otthewitboldig inttad :offb fOfeign leIder.Tbc Wítbol4ig

sttc.tw waa $Ctup to provide, a means ofëqlléÛÏg U.S.. taa without ll:ivolvig theforeìgnentity ultimately . liable .Ior the tax. lam. more worned about limitig Morgan~s.abilty to Come t01J fQrJejnnpUJement pf'the ~JC if 1he Service later rules thatWifuQldig should haveUïkèn .pi,ac at some point ifthe chain; Their right toreiburment is parof :our contrtuarangenent witb .th. .aa should. be. clearlyadesed in anywrttn. àgreemt With thént i.th the ¡tttorreysShould reve.w äny"

. a.greeents. we entèr into .on ths 'tacti01l I doubt the standard loan. dociuentatioowil1 addres the ~ iss~ J~~to ttis4r.uactioo$ide letters may berequîred.

U.S. witbolllrt- on stock )oa Î~

The stock loan fee wiiI be paid frm one foreignentitytoanotet. this ..eeshould.not beU~S. SPUIQe "ít)CQe \1es lt is SQiuê11ow clasified as a snbsttute dividêndpaynnent.

()6e ågai~. if the .a1;~sis âbo7Veis oorrt, the stk loan should not. createsubstItUte

dividends

Source of income

fie dividend entitlemt will :he U.s. soutesinCê the seurty is a U.s.SecUijjy~ The

atock loan fee $hol,idbb a !ortign ßPurce income sInce both the payor and payee are

fotèigg.

Tota Retrn Swaps

I wìil get seVérål q\:otes on the CQst of enferg intO swa.ps.. I ha.ve tåIed tö Paine

Webber and .Deutsche Ban. Theyar:e .:estatig .th. we would reeive spri.1(iIIate~y

93% .0fdividendsaJr çxpOOiies of the swap. ''y are scudirtg U;SnnØfe (lëtailedinonnatn. It "Sounded líke.th swap& wouldbe1UuehrooI' diffcult .tQ .managøaad We

wöuld loseSQ11cotttfle;;Wlity wewould hhve with the stock loan trålSáètioti I plan

tò.rocús on the stockloattractîon uness we: feel there is too much ta exposure. Thea,ditio11al 10%- enba,nnent is proba~lyIIot won1 the.wditionaladnnistrativeburdenat thÌ$ point.

MAV0001083CONFIDENTIAL

Deember 12, :2006

Descrivtion of Dividend Enhcement Transactions

Maverick is the advisor for sever~ ofts4ore ftds t1at ci¡entty pai;cípate in ~took lending

transactions, Om: of tbe benefits :of these tnnsactiOns is that U.S. and 'Foreign tax wihhoidingmay be reduced. The detals of atyical U.S. dividend enhancement transaction are descrbed

below.

(1) Cayma Islands hedge fund ("Fund;') lends u.s. secunty to a Cayman Tslandsprim.ebroker r'PB'JPui:iit toa ooventiQnal securities lending agreement, The loan OCcurs

prior to the dividend record date.(2) PH posts equityconateral in exchage for the security. The tenn of the loan is

flexible

but historically has beengreatet than 3'0 days for domestic enhancements. Be$inning in2006, Fund began using adifferrnt PB for domestic enhancements and, consequently, themajority of its new securities loa.s have llad a iern less tllan 30 days. The securty maybe recaled at any tiine for regular seteinent. Eatly recall may result in a fee paya.bie by

Fud.(3) PH typically enterS

into an equity swap with a US. counterpa.rt, but hasrio contractu. obligation with Fund to do so.PB takes the position that aU payments received in

connection with. theswapaTe not sUbject to US, tax wItllolding,

(4) At the end ,øfthe termi PB pays a fee. to Fund equal to a percentage ,of the diviQend. Thefee ts negotiable and has JristPrlcaUy been in the neighborhood :of 85% to 97% of thedividend.

Maverck began using the dividend enhancement transaction in 1999. Dqring that time,M(lverick has done this trasacton with Morgan Stanley, UBS~ Lehman, Merrill Lynch, and lNG.

U.S. Tax Implications of Enhancement Transactions

Maverick and .its PB'.s currently rely on IRS Notice 97-66 to avoid withholding on .its dividendenhançement tra,n~actiQns. The premise of the notice

is that withholding is required on substitutedividend paynneIitsbetween foreign entities only iftlle foreign payor's U.S. withhóldin.g tcP rate

islower than the payee's U.S. withholding t~ rate. Sinceb:th tlepayor ~d the payee in. oiirtra.Sáction are Cayman entities subject to the same witholding ra.te, there is presumably nowitholding on th payment from PB to Fund. Ths notice is designed to ensure that theappr()priateU.S. tax is withhel4 Qut th1it it is only withheld once,

It shoiild be noted that Notice 97.66 addresses a sitJauon where all links in. a chain oftransactions are securities loans. nd~snotaddress a situation where one, of the lìnks is a swap.As. mentioned above, Notice .97-66 assumes there is withholding at some point in -the chain. Itspecifically states tha '"to the extent a foreign-to-foreign securties loan or sale-repurchase

trsaction wOttld redce US, wltho14ing tax; an incrrmentt amount of U.s. withholqing ta isinnpQsednn the subS:titute paYIJent." When c01pared to a d.irect loan to a U.S. entity, tbÜ¡trAnsaction JeduceS the U.S. witholding~, However, fund øiild chpose to enter into a .$wap

with â U.S. countërar and .avoid U.S. tax withholding. Under Regulation section§1.863-

7(bH11. "the source of notional principal contract income shall be determined by reference to the


EXHIBIT #4 MAV0001071CONFIDENTIAL

December 12, 2006

residence of the tapayer" who is the direct recipient of the income. Therefore, periodic or non-periodic payments received by a foreign person are not subject to US. withholding ta as long asthe foreign person is not otherwise engaged in a US. trade or business. Consequently, Fund'suse of a securities loan transaction does not reduce the US. ta withholding in this situationbecause there would have been no withholding if Maverick had entered into the swap directlywith a US. counterpar. Assuming the swap income is not subject to US. withholding tax, theService has not been ha11ed by the additional step of a foreign-to-foreign securities loan.

Notice 97-66 appears to disregard the foreign-to-foreign loan when dete11ining if US.withholding has been reduced because it states that "no withholding tax is required in situationswhere transactions are entered into between residents of the same countr." It is the swap

transaction and not the loan that reduces the US. withholding ta so the exposure lies with thattransaction, not the foreign-to-foreign loan. In fact, Maverick's research indicates that the

Service has considered whether the scope of the proposed regulations should apply to dividendequivalent payments made in connection with notional principal contracts, such as an equityindex swap strctured to replicate the cash flows that would arse from an instalment purchaseof one or more equity securities. Perhaps one reason the Service has not acted on this matter isbecause notional principal contracts typically settle on a net basis and, consequently, there wouldbe a possibility that any applicable witholding tax (calculated on a gross income basis) couldexceed the net economic benefit that the transaction would ultimately yield.

Since PB is a foreign par, the stock loan fee received from PB wil not be US. source income.If the analysis above is correct, the stock loan should not create substitute dividends.

Foreign Tax Implications of Enhancement Transactions

Maverick has also entered into transactions similar to that described above to enhance foreigndividends. Foreign enhancements have not historically been as large as those on the domesticside. Tax laws in each applicable foreign jurisdiction can warrant slight adjustments to thetransaction described above but the same general strcture is utilized. The obvious difference

between a US. and Foreign enhancement is that the PB would not need to be a Cayman entity.Also, depending on the jurisdiction, the PB could opt to use a back-to-back stock loan rather thanthe swap transaction to achieve the desired ta result in that jurisdiction.

Maverick has worked with outside counsel to dete11ine that its dividend enhancement

procedures would more likely than not be upheld in the various foreign jurisdictions in whichMaverick held securities.

Conclusion

Maverick has concluded that the position described above has a greater than 50% chance ofbeing sustained were it to be reviewed by the Service. There could be some business riskassociated with the transaction if it is ever dete11ined that there should have been US. taxwithholding on the swap transaction presumably entered into by PB. If that were to occur, thePB might be able to seek reimbursement from the funds pursuant to the contractual agreement inplace with them at that time.


Maverick CapitalDividend Enhancement Trasactions Memo6/30/05

Domestic Securities - Lon!!Ths memo is being wrtten to document our undertanding of the dividendencement transacons tha Maverick Fund II, Ltd. and Maverick Fund LDC (thefuds) parcipate in with Paine Webber-London (PW).

Purpose

Dividend enancement on long securties is designed to gross up the fuds' dividendsreceived from U.S. based companes by transferrg the shares owned in the fuds to

PW, a u.s. based entity, therefore causing there to be no dividen witholding taxes.

Transaction

When a U.S. based company, in which the fuds own shares, declares a dividend thefuds lend their shares to PW m exchange for collateral, which is defined by theageement to be cash. U.S. treasuries, or a letter of credit in an amount equal to atleat 100% of the maket value of the securties lent.

A loan is mitiated approximately 3 days before the ex-dividend date, allowing timefor the tranaction to settle and the shares to be registered to PW before th dividendex-date, and is termnated approximately 30 days afer the payment of the dividend.Upon termnation of the loan ageement, the shaes and the dividend are retued to

the fuds and the fuds retur the collateral to PW.

It is also noted that at anytme durng ths loan period Maverick may stil sell theposition that is on loan, the only consequence of ths sell would be that PW wouldcharge a larger percentage of the dividend for the facilitation of ths transaction.

Exale of a dividnd enhancement tranaction and applicable entries:

Januar 1,2005 the fuds purchae 10,000 shares offfM at $100/share with 50% of

the purchae on magi at 5% mterest. Januar 6, 2005 ffM declares a $1/share cashdividend with an ex-dividend date of Januar 15, 2005.

Purchase date entry:DR. Investment in IBM

CR. CashCR. Margin Debt

$1,000,000$500,000$500,000

Transfer Date, January 10, 2005:

. Client does not mae an entr on their books to account for the transfer ofshares to PW; however the client surrenders the 10,000 shares to PW andPW remits to the client $1,000,000.


EXHIBIT #5MA V0002059

CONFIDENTIAL

. Note that Maverick stil has a $500,000 margin loan from PW at this timeand therefore is stil accruing interest expense.

. Note that Maverick stil has control of the investment and can sell the

investment before the return of the shares but would incur a larger chargefrom PW

Date of return of share, Februar 15,2005:

. Client does not make an entry on their books for the retu of the shares,

but makes the following entry for revenues from dividend:

DR. Cash

CR. Dividend revenueCR. lnt. Income - Stock loan

$9,000$7,000$2,000

. Note that this entry is to achieve the recognition of income from both the

dividend declared by the US company and the interest income on thestock loan netted against an approximate 10% transaction charge by PW

Accountig Treatment

Curently, Maverick is including the shaes exchanged with PW related to thesetransactions in their share register causing the applicable cash held to be classified assecurties.

Securties Owned(3 days before ex-dividend

date)

Maverick(Offshore)

PW(U.S. Based)Collateral (Cash, LOC)

IBM

Dividend (less fee)

Domestic Securities - ShortDividend enhancement on short securties held in Fund II and LDC is designed todecrease the amount of dividends paid on short domestic securities from 100% to97%. Maverick tranfers cash to PW, a U.S. based entity, to cover its short position,which results in a dividend enhancement recivable balance durg the encementperiod. As is the case for long securties enhced, Maverick makes no changes to itscash or position balances durng the enhancement period. Rather, a receivable isbooked at month end.

MA V0002060CONFIDENTIAL

Upon completion of the enhanement period (generally 2 -4 weeks), PW ret thecash collateral to Maverick and the short position to Maverick's brokerage account.

Foreign SecuritiesDividend enhcements on foreign securties are hadled by Lehm Brothers (LB).When a foreign securty is enhced, Maverick lends the security to LB and receivescash collateral equal to the maket value of the security. Upon completion of theencement period, the % of dividend paid to Maverick depends upon thecircumstances surounding the tranaction such as demand for the securty. LBretu the securties to Maverick and Maverck pays the cah collateral to LB. LB

then pays Maverick the dividend less fees.


CN=Keith Hennington/O=Maverick

From: CN=Keith Hennington/O=MaverickSent: 11/11/200411:37:00 AMTo: CN=Shari RObertn/O=Maverick(gmaverickcapSubject: Re: Fw: Microft stratey on capturing the $3.00 dividend for non-US holders only.

agree - Joe, Jim, and I looked at alternatives on this a couple of weeks ago.Joe and Jim found the be deal through stk loan. We also thought anyspeial transactons on large dividends might stnd out and the IRS might strt

looking at any transactions in MSFT. Stock loan semed like the moreconseivative approach.

Shari Roberton/Maverick11/11/2004 10:01 AM

ToKeith Hen ni ngton/Maverick(g maverickcapcc

SubjecFw: Microsoft strategy on capturing the $3.00 dividend for non-US holders only.

***************************************************************************************************************************************************The information contained in this e-mail message is intended only for thepersonal and confidential use of the recipient(s) name above. This mesagemay be an attrney-client communication and as such is privileged andconfidentiaL. If the reader of this message is not the intended recipient oran agent responsible for delivering it to the intended recipient, you arehereby notified that you have reæived this document in error and that anyreview, dissemination, distribution, or copying if this mesge is strictlyprohibite, If you have received this communication in error, please notif usimmediately bye-mail, and delete the original message.***************************************************************************************************************************************************

--- Forwarded by Shari Roberton/Maverick on 11/11/200410:01 AM ----

Joseph Manogue/Maverick11/11/2004 10:00 AM

ToSha ri Robertn/Maverick((maverickca pccJim Chen/Maverick(gmaverickcapSubjecFw: Microsoft strategy on capturing the $3.00 dividend for non-US holders only.



CONFIDENTL

The strategy forwarded to you requires we sell our stock and buy cali optionsand get 93% of the dividend.

Jim has ben working on this for the last 2 months and he got UBS to match themore aggresive offers we were getting from the Street. For LDC only - we lentthe stk out and wil get 97% of the dividend.

--- Forarded by Joseph Manogue/Mavenck on 11/11/2004 09:56 AM ----

Shari Roberton/Maverick11/11/2004 09:49 AM

ToJosph Manogue/Maverick(Qmaverickcap

cc

SubjecFw: Microsoft strategy on capturing the $3,00 dividend for non-US holders only.

--- Forwarded by Shari Roberton/Maverick on 11/11/2004 09:49 AM ----

mboucher(QCandW, ky11/11/2004 09: 11 AM

Toshari.roberton(Qmavenckcap,comcc

SubjecFw: Microsoft strategy on capturing the $3.00 dividend for non-US holders only.

just passing this along.....let me know ¡fthe attchments make it, if notI'll resend it later when I get back in the offce

"Blair Gauld" ..bgauld(Qqueensgate.com,ky~ wrote:

~ Hi Michelle,~~ Nick Walker contacted me this morning after he had not that Maverick holds

a~ significant amount of Microsoft shares and that Microsoft had just declareda~ large dividend. He has a strategy that he has used in the past to avoid a~ large part of the withholding tax associated with US dividends. He asked meto


;: forward the attched memo to you which desribe the strategy and hope that;: you can forward it to the appropriate persn at Maverick. Below is ane-mail;: from Albert Muro, from York Stockbrokers, and attched is a short memo from;: Nick describing the stratey. Albert's e-mail address is below if anyoneis;: interesed in discussing the stratey with him or Nick.

;:;: Regards,;:;: Blair

;:;:;: ---Original Message---;: From: Albert Muro (mailto:muro(§lotusconsult.com);: Sent: 04/11/2004 11:59 AM;: To: Blair Gauld;: Subjec: Microoft strategy on capturing the $3.00 dividend for non-US

holders;: only.;:;:;: Hi Blair,

;:;: Please find attched a strategy develope by us for non-US clients to avoid

;: withholding on the big dividend payout that Microso is paying soon.;: If you have any Ofhore Fund that you know, please show to them and ifthey;: can do the trade thru us wil be appreciated.;: Be Rcgs,;: Alberto.;:

This mail sent using CandW.ky Webmail - http://webmail.candw.kyo:MSFT .doc was removed;:


CN=Chad Chisolm/O=Maverick

From: CN=Chad Chisolm/O=MavenckSent: 6/1/20074:31:59 PMTo: CN=Jeffrey Liggitt/O=Maverick(Qmaverickcap

Subjec Fw: FIN 48 Tax Positions - DRAFT memos

fyi

--- Forwarded by Chad Chisolm/Maverick on 06/01/200703:31 PM ---

debra. taylor(Qey .com06/01/200703:27 PM

ToChad.Chisolm(Qmaverickcp.comccjosph .bianco(Qey .com

SubjecRe: Fw: FIN 48 Tax Positions - DRAFT memos

Chad,

We'll look into this and get back to you at th beinning of the week,

Debra F, TaylorIntenational Tax Consulting

NY Financial Services Ofce212-773-2978 Phone

866-244-5265 Fax

debra. taylor(Qey .com

Chad.Chisolm(Qmavenckcap.com06/01/2007 03:57 PM

Tojosph .bianco(Qey,com

ccdebra. taylor(Qey .comSubjecRe: Fw: FIN 48 Tax Positions - DRAFT memos

Permanent Subcommttee on Investieations

EXHIBIT #7MAVOOOll15

CONFIDENTIAL

Joe,

Now that 6/15 is approching i we are considering whether we need to go aheadand remit the 2006 income tax withholding that we accrued for FIN 48 purpoin conneion with the stck loan fee income earned during 2006. Recall that

Goldman withholds U.s. taxes on thes transactions but our other brokerstypically do not. We determined in December that we should probably accruethes taxes even though nothing is actually withheld by our other brokers. Wewill nee to address whether or not to pay these taxes for pre-2006 yearswhenever we file protecive retums for those years. As for the 2006 tax yeariwe will likely be filing a return for each of our foreign funds (exnsion due6/15) that is treated as a corporation for U.S. tax purpo. My quesion toyou is how/if we should remit thes taxes given that the brokers did not deemthes as subject to withholding and thus did not provide a 10425 to these

entities.

We need to know what to do very soon as the 6/15 deadline is approaching.

Thanks. .-

joseph.bianco(gey.com

joseph .bianco(gey ,com12/22/2006 01 :35 PM

To

keith .hennington(gmaverickcap.com

cc

Chad_Chisolm(gmaverickcap.coml keith_hennington(§maverickcap,comimichelle.perrin(gmaverickcap.com, steven .menna(gey .comi

Suza n ne.Guthrie(gmaverickca p.com, Vaha n ,Zerounian(gey .com

Subjec

Re: Fw: FIN 48 Tax Positions - DRAFT memos

I think that with that we should be good for 2006 - no need to talk further ifinterest, penalties, foreign issue turn out immaterial as you believe. Canfollow up re 2007 after New Year. If we need to discss nex week - try me onf

Redacted by the PennanentSubcommttee on Investi ations I


Happy holidays to everyone.

Regards,Joe

Josph Bianco

212-773-3807 - direc212-773-7142 - fax866-241-8999 - efaxjosph.bianco(§ey,com - emailkeith .hennington(§maverickcap.com12/22/2006 02:21 PM

Tojoseph.bianco(§ey.comccChad_Chisolm(§maverickcap.com, keith_hennington(Qmaverickcap.com,steven.menna(§ey.com, Vahan .Zerounian(§ey.com, michelle.perrin(Qmaverickcap.com,Suzanne,Guthrie(Qmaverickcap.comSubjecRe: Fw: FIN 48 Tax Positions - DRAFT memos

Joe,

My main conærn is that we have a firm agreement by the end of nex week on howto treat these transactions in the 2006 financials. As Steve wil tell you welike to have thes things nailed down before the actual audit takes place. Tothe exnt that we need to have a call to discuss I am available at any timenex week, Here is where I think we are at this point.

Borrow fee - I agree with Matt's points and wil do the following:

For 2006 - We will also compute interest and penalties on the amount we haveaccrued. I doubt it wil be material but if it is then we should add to theliabilty. We will compute this by Wednesday of nex week.

For 2007 - We should analyze the possibilty of paying the liabilit that wehave already accrued and withholding on future payments.

Stock loan transaction

For 2006 - It appers that we are in agreement that we have met the 50%threshold (at least for US seurities). I don't want to assume too much so canyou confirm that EY is in agreement with that conclusion.

I believe that the foreign transactions are immaterial but we can quantify theamount nex week as well.

For 2007 - I would be interesed to hear how Matts analysis differs from ours.

MA VOOOll17CONFIDENTIAL

We might also incorporate his views into our documentaon. We wil also fileprotecive returns so that the sttute begins,

Thanks,

Keithjosph.bianco(Qey.com

josph.bianco(Qey ,com

12/22/2006 08:31 AM

To

stven .men na (Qey.com, keith_henn i ngton(Qmaverickca p.com,

Chad_Chisolm(Qmaverickcap.com

cc

Vahan .Zerounian(Qey .com

Subjec

Fw: FIN 48 Tax Positions - DRAFT memos

Please see below for comments - let me know if you would like to discussfurther.Regards,Joe

Josph Bianco212-773-3807 - direc212-773-7142 - fax866-241-8999 - efaxjosph.bianco(Qey,com - email--- Forwarded by Joseph Bianco/NewYork/AX/EYLLP/US on 12/22/200609:34 AM

Matthew Blum/NATL/AXEYLLP/US

12/22/2006 07:10 AM

ToJoseph Bianco/NewYork/ AX/EYLLP /US(QEY -NAmerica

cc

MAV0001118CONFDENTIAL

Debra F. TaylorfNewYork/AXfEYLLfUS~EY-NAmerica, HowardLeenthalfConsfT AXEYLLP /US~EY -NAmerica, David A.GoldenfNationalfTAXEYLLP jUS~EY -NAmericaSubjecRe: Fw: FIN 48 Tax Positions - DRAFT memosLink

Joe,

As to the borrow fee issue, keep in mind that there are two sets ofliabilties: (a) prime broker has to withhold tax (Seion 1442), and (b) .Maverick has to pay tax (secion 881). Maverick can credit withholding done bythe prime broker against Maverick's own tax liabilty. If the prime brokerdoen't withhold, and the IRS catches the prime broker, then PERHAPS the prime

broker can go after Maverick for contribution or indemnifcation -- complexpoint if the contract is silent. But if the IRS figures out what is going on,the IRS can bypass the prime broker and go straight after Maverick for failureto pay tax imposed under Section 881. The only limit is that the IRS may notcollec the tax twice,

Has Mavenck considered filing for the back years to enhance chances of gettingany penalties abated and put the issue to re? Also, don't we have to think

about interespenalty accruals for amounts that were not withheld upon, since

if the prime broker didn't withhold, Maverick should have paid?In oter words, Maverick has duly noted the feroity of the dog, but has not

acknowledged the nee to beware of the owner as well.As to the dividend planning issue, my analysis doesn't work quite the same way,but I think I come out to the same place on the U.S. side -- I can accept theclient's assertion that:; 50% chance of succeeing if transaction properlystctred, We defnitely should talk about what we want to see; not being an

auditor, this is rather novel terntory to me. As to transactons like thisusing foreign securities, I would think, in my naive, non-auditor mindset, thatthe first order of busines is to determine whether amounts at stke arematerial, and, if so, consult foreign colleagues.Glad to discuss further, although I wil leave on vacation tomorrow and notreturn until Wednesay, January 10.Be regards.

Matt BlumErnst & YoungjIntemational Tax ServicesBotonPhone: (617) 859-6040Cell: (617) 642-7955Fax: (866) 211-4729 (U.S. only), (516) 213-8845 (worldwide)EYCONN: 2636040Email: matt.blum~ey.comAdministrative assistnt: Roslyn Guy (617) 570-8485Joseph BiancofNewYork/ AXEYLLP fUS

12/21/2006 07:08 PM

ToDebra F. Taylor/NewYork/AX/EYLLP/US~EY-NAmericaccHoward LeventhalfConsfTAX/EYLLP jUS~EY -NAmerica, Matthew

MAVOOOl119CONFIDENTIL

Blum/NATLfAXEYLLP/US~EY -NAmericaSubjecFw: AN 48 Tax Positions - DRA memo

Deb:

This is what I have discussed with Maverick re FIN 48 - see attched for their

write-ups. Would love to get your quick toughts - they are looking for generalagreement as soon as possible. I think generally we should be ok geting tomore likely than not on these - please let me know asap if you have any strongconcerns.Thanks,Joe

Howard/Matt - curious your general comments as well and wanted to share oneclients documentation around FIN 48 for your thoughts as well.

Joe

Joseph Bianco

212-773-3807 - direc212-773-7142 - fax866-241-8999 - efaxjosph.bianco~ey,com - email--- Forwarded by Joseph Bianco/NewYorkfAXEYLL/US on 12/21/200606:55 PM

Chad .Chisolm~maverickcap.com

12/13/2006 12: 13 PM

Tojoseph.bianco~ey.com, stven.menna(gey.comccjoseph .tepfer(gey .com, Vaha n.Zerounia n ((ey .com, keith. henn ington ((maverickcap.com,michelle.perrin((maverickcap.com, Jefrey .Liggitt~Maverickcap.comSubjecFIN 48 Tax Positions - DRAFT memos

Hello.

We have completed draft FIN 48 memorandums summarizing our historical andprospective positions on the dividend enhancement transaction and the stokloan fee withholding issue for our offhore funds. Please review at yourearlies convenience as we would like to complete this analysis before the


holidays.

Thanks.

(Se attched file: Description of Dividend Enhancement Transactons - forEY.doc)(Se attched file: Stock Loan Fee - TEFRA Accrual (for FIN 48) - forEY.doc)

C. Chad ChisolmMaverick Capitl

Tax Manager

E-mail: chad_chisolm(gmaverickcap.comPhone: 214-880-4064Fax: 214-880-4159

Any U.S. tax advice contained in the boy of this e-mail was not intended orwritten to be used, and cannot be used, by the recipient for the purpo ofavoiding penalties that may be imposed under the Internal Revenue Coe orapplicable stte or locl tax law provisions.

The information contained in this message may be privileged and confidentialand prteced from disclosure. If the reader of thiS message is not theintended recipient, or an employee or agent responsible for delivering thismege to the intended recipient, you are hereby notified that anydissemination, distribution or copying of this communication is strictlyprohibited, If you have received this communication in errr, please notify usimmediately by replying to the message and deleting it from your computer.

Notice required by law: This e-mail may constitute an advertisement orsolicitation under U.S. law, if it primary purpose is to advertse or promotea commercial product or service. You may chooe not to receive advertising andpromotional messages from Ernst & Young LLP (except for Ernst & Young Onlineand the ey.com website, which track e-mail preerences through a separateprocess) at this e-mail address by forwarding this mesge tono-more-mail(gy.com. If you do so, the sender of this mesae wil be notifiedpromptly. Our principal postal addres is 5 Times Square, New York, NY 10036.Thank you. Ernst & Young LLP

"Denption of Dividend Enhancement Transactions - for EY.doc was removed::"Stock Loan Fee - TEFRA Accrual (for FIN 48) - for EY.doc was removed::

Any U.S. tax advice contained in the boy of this e-mail was not intended orwritten to be used, and cannot be used, by the recipient for the purpose ofavoiding penalties that may be impod under the Internal Revenue Code orapplicable stte or locl tax law provisions.

The information contained in this message may be prvileged and confidentialand protected from disclosure. If the reder of this message is not theintended recipient, or an employee or agent responsible for delivering thismege to the intended recipient, you are hereby notified that anydissmination, distribution or copying of this communication is strictlyprohibited, If you have received this communication in error, please notify usimmediately by replying to the mesge and deleting it from your computer.

Notice required by law: This e-mail may constitute an advertisement orsolicitation under u.s. law, if it primary purpoe is to advertse or promotea commercial product or service. You may choose not to receive advertising andpromotional messages from Ernst & Young LLP (except for Ernst & Young Onlineand the ey,com website, which track e-mail preerences through a separate


proces) at this e-mail address by forwarding this mesge tono-more-mail(§ey.com. If you do so, the sender of this message wil be notifiedpromptly. Our principal pol addres is 5 Times Square, New York, NY 10036.

Thank you. Ernst & Young LLPAny U.S. tax advice contained in the boy of this e-mail was not intended orwrittn to be use, and cannot be used, by the recipient for the purpoe of

avoiding penalties that may be imposed under the Internal Revenue Code orapplicable stte or locl tax law provisions.

The information contained in this message may be privileged and confidentialand prteed from disclosure. If the reader of this message is not theintended reipient, or an employee or agent responsible for delivering thismege to the intended recipient, you are hereby notified that anydissemination, distribution or copying of this communication is strictlyprohibited, If you have received this communication in error, please notif usimmediately by replying to the meage and deleting it from your computer.

Notice required by law: This e-mail may constitute an advertisement orsolicitation under U,S. law, if it primary purpo is to advertse or promotea commercial product or service. You may choose not to receive advertising andpromotional messages from Ernst & Young LLP (except for Ernst & Young Onlineand the ey.com website, which track e-mail preferences through a separateprocess) at this e-mail address by forwarding this mesge tono-more-mail((ey.com. If you do so, the sender of this mesage wil be notifiedpromptly. Our principal postal address is 5 Times Square, New York, NY 10036.Thank you. Ernst & Young LLP


eN =Jeffrey Ligg itt/ 0 = Maverick

From: CN=Jefrey Liggitt/O=MaverickSent: 2/21/20075:01:49 PMTo: Steve. Bokiess(§ey.comCc: Chad.Chisolm(§maverickcap.com; "Shaheda Patel" .:Shaheda.Patel(§ey,com:;

Subjec: Re: AMTD Dividend

No, it is from an arrangement with a broker where they hold our shares in theirname when the dividend is paid so they do not have to withhold tax due toLeere's foreign ownership,

Steve. Bokies(§ey .com

02/21/200703:52 PM

ToJeffrey. Ligg it(§ Maverickcap.comccChad.Chisolm(§maverickcap,com, "Shaheca Patel" .:Shaheca.Patel(§ey,com:;,Steve. Bokiess(§ey .comSubjecRe: AMTD Dividend

Are you receiving the "dividend" as a swap payment?

Steven J 0 BokiesErnst & Young, LLPSers Tower

233 South Wacker DriveChicago, IL 60606-6301Phone: 312-879-6560Fax: 866-751-482E-Mail: stve.bokiess(§ey.com

Jeffrey. Ligg itt(§ Maverickcap,com02/21/2007 12:02 PM

To"Stee Bokiess" .:steve.bokiess(§ey.com:;

cc"Shaheca Patel" .:Shaheda.Patel(§ey.com:;, Chad.Chisolm(§maverickcap.comSubjecAMTD Dividend



CONFIDENTIAL

Hello -

We have an issue we wanted to run by you regarding a dividend received inMaverick Fund II, Ltd. (Levered).

In 2006, Levered received a $6 payment from AMT which was classified as 50%dividend and 50% return of capital based on AMTD's calculations. Leveredenhanæd this dividend so all it was treated as substitute dividend, We werewondering if you know of any way that we could treat some of the enhanceddividend as return of capital instd of ordinary income (since it was a sub

dividend), We have not found anyting that would sugges such treatment but itcould be quite beneficial from a tax perspectve if we could justify a returnof capital treatment.

Any thoughts?

Jeffrey LiggittMaverick Capitl, Ltd.

300 Cresent Court, 18th FloorDallas, TX 75201Phone: (214) 880-4025Fax: (214) 880-4159

Any U.S. tax advice contained in the body of this e-mail was not intended orwritten to be use, and cannot be use, by the recipient for the purpoe ofavoiding penalties that may be imposed under the Internal Revenue Coe orapplicable stte or locl tax law provisions.

The information contained in this message may be privileged and confidentialand prteced frm disclosure. If the reader of this mesage is not theintended recipient, or an employee or agent responsible for delivering thismege to the intended recipient, you are hereby notified that anydissemination, distribution or copying of this communication is strictlyprohibited, If you have received this communication in error, please notif usimmediately by replying to the message and deleting it from your computer.

Notice required by law: This e-mail may constitute an advertisement orsolicitation under U.S. law, if it primary purpos is to advertse or promotea commercial product or service, You may choose not to reeive advertising andpromotional messages from Ernst & Young LLP (except for Ernst & Young Onlineand the ey.com website, which track e-mail preferences through a separateprocess) at this e-mail address by forwarding this mesge tono-more-mail(§ey.com. If you do so, the sender of this mesage wil be notifiedpromptly. Our principal postal address is 5 Times Square, New York, NY 10036.Thank you. Ernst & Young LLP


Domestic Dividend Enhancements

1. General

Curent domestic dividend encement are done at UBS PaieWebber. Stocks are borrowed from our accunt afew days before the ex-dte of the dividend. UBS does a swap on their side with a thrd par to be held for 30 days.Maverick is able to frely sell the stock durg ths 30-dy period, but any sae mae reduces the stock loan interestfrom 90% of gross dividends to 85%. The 5% reducton is used to cover costs associated with UBS borrowing othershaes to coer our sale. Cost for sales are now the borrow costs of the securities sold (Maret value * 40bps *# of days until swap termination / 360).

2. Financing

When UBS borrows stocks set for enhcement, they replace them with cash collatera tht is equivalent to themaket value of the stocks. A separte spreadseet is prep by Leon Ga (212-713-7863) to trck the cacollatera per stock per fud. Ths spredseet is also used to caculte the magi interest expense associated with

the cash collatera loan

Leon wil nee instctions on where to send the collatera fuds. The funds must be sent to an offshore

primebroker account to keep this an offshore transaction. Curently, the options are UBS London (16USDl),Goldm London (l7USDl), Lehm Brother (18USDl), or Barclays Ban (20USDl - not the Ban of New Yorkinstrctons). Where to send the collatera depnds on act debit balces versus debit balance goals set on the

daily PB report. Some jugglg may be neeed to kee everyone in a debit balce.

Book the collater wires as cash traners from UBS PaineWebber New York even though no cash is sent fromthere (Ts creates a rec. item on the cash re.) The wies ar acally sent from UBS Cayman but since it's a short-tenn loa and not our money, we just treat it as a re. item.

The sae of an enhcement stock or a ma to maket on the vaue of the outsdig borrows are the two ways

cut collateral can chae. They ar booked on the UBS rert as either a paral retu (PT RTN COLL PHA)

or a mak to maet (Mk to MKT C) as shown below. Adjus cuent dividend re. items by addi the collateralretued for paal retu, addg the collatera retued for negative maks to maket, or by subtractg the

additiona collatera for positive mas to market. Mae su to adjust the specifc ree. lie th includes the stock.For instce: "PT RTN COLL PHA" would cree an adjustment of positive $55,955,964 to the lie ree. item whichincludes PHA. It would be titled "Dividend enhcements PHA, MO" or somethg simar. Make sure to adjustthe amount, not type over it.

.lI~~llc~edflWDL. .~ü.:':$ YPR !~$.~:'.~.i.Jr;.;1!41.'C.2 1J;(''.:o-- li~..¡'J: T(,) J;il\:'oQ

$100"' 0;"',R"t:- COLI. ?HA¿w..".!'pii"in'MLr.nA.".W$""

\"DL. _'(;(,":1 't1''R l.'~....9.~r)H!c.),¡..ç 1J;(oe.,'O! n,fX¡.(ì:: T(,) J;rl":-oQSlOO;. "'!st'l"\\I;AVMÅ.~fI)tA.h,'.-.Tltt:i'ß'KPRtlCHU3W$l\.

\\'!t.

: lU(:1:'1 (It t ~4C":f!~ti::= im~ A~è\\y(: '1~'t ~'\"yK '$ t J U*"'SSY-W;T3b03:Q,:""..11 11)8' ~K~04;~71.Jf)S AOK'YC 1'Ò n...X31~U~'5~,\'",\'~';'5¥~.H'fU4;'tJ.'

HiSrJ! --1).tKw,~.o r;~l.q),.q.2 lJ,;~t'I'O'; J 1...(J:': "','DL.

t i ..~:O2 11;)(.;:: i 1 'O~.-1 P\JDS t::.4Z(..~~()ì1)

: t) S *- GRS l~I.b:iiNî(H)bm:((ll.


EXHBIT #9MA V0000837

CONFIDENTIAL

~r.U~lA;',ïc..: I iffjj2O 1 (,.13.0$

.UBS Hedl!e Joimd Services

1 VfJti(J(J2 TrllllSf(:øll flr AcroUlt If jZ",1 MA YERICK FliND LDC

?':'iiCC'U 1"t'~i. ~

Soo CCJII..~~ ~ ~~~;rl.'~ul '-i!' .t ~ii S..:.C'""" f'.,.",~ ~~ ~ ::11.i£VCl 11.1*,:62 iiO~'!1 WDL ;ío.!I\(~IH(.&

~¡~43 ¡¡II;; At¡NY(: rr; "(y\"Kiiii(\;.5V~'fY.~$'I3::4; ~::

~E!"'I) 4. 76~.900,OI I)

: J.'(.K~~ J1ftl Ui('\11 N\r ACC., J""R J,~l;:~'?4:?OO L

11.'(&2 ¡¡f,ôil~ 11.'0.)2 ¡)I'

f'M H R-i:HJJ3Hie¡+ 'MARKTO MK';C'¡W~lF.J'MWQPB!!If)l.()w~t'\.

FMtJ8.'::I.;106 /11 ot.\4AJtKTO MKT wwi.rwvrR~11'lI'IOWIU.¡W\õJV

.\(.tC! 1"1\ 4.:Pi'.I:!.UJt)('

jJ,QWft2 !I()2 II/OM)': ¡¡¡¡r W. TO COVERMFMnl$Y."',\$M2

JN 61.1'7W~.'i4J,n c

11.''~:).ooi tl;C.Jt.:O': iV%.lì~ IJI, ,\C,,'11'lR '4i"¡S6.,i c

3. Month-end margn interest accruals.

At each month-end, there is an accru booked for the cwnulted ma inerest expens derived from the collatemlloan. Len will email the accrus upon reuest. Mae sue the fed funds open rates used are correct. Add thecumulated magi inerest for all outstadig dividend enhcements. Book the amounts in the following entr inTota retu: IM2.20 IMO

700042 Margin interest expns310110 Magi interest payable

xx xxRef: Magi interest -dd enhce

Put al the support in the month-end UBS folder.

4. Bookig dividends.

UBS books two entres when dividends are pad The first entr is the magi interest expnse laeled "IN

PWCA YM PHA" in the pritout above. TTs amount is the tota magi interest due for the collateral loan ofPHA durg the entie holdig period. Len will send an emal for the cacution support. Remember tht pa ofthe interest ha aleady been recrded, so only the porton of new interest should be booked agaist magi inerestexpnse. The en in Tota Retu includes thee pars...the additiona magi interest expnse, the reversal of theinterest payable, and the credit to UBS cah. The revers of inteest paable will be the amount accrued in theprevious month-end. The amount will be on the interest sheet in the prevous month-end UBS cash folder.

Example: IM.20 IMO - PHA is enhce an shs are borrowed on 10/15. From 10/15 to 10/31interest accred amounts to $30,000. On 10/31, $30,000 would be booked in Tota Retu as a credit to310110 (magi interest payable) and $30,000 would be booked as a debit to 700042 (magi interest

"""'-'


expnse). Then on 11/15, the shes and loan are retted an UBS chages us the total magin interestamooot of $50,000. $50,000 would be a credit to UBS ca $30,000 would be a debit to magi interestpayable, and $20,000 would be a debit to magi interest expens.

700042 Margi interest expnse310110 Magi interest payable

13USD UBS Cash

20,000 (addtiona interest expse not accr)30,000 (amooot accru previous month-end)

50,000 (tota interest expens)

Ref: PHA mr int exp

The second entr UBS books is labeled "SUB PMT PHA." Ths amount wi either be equa to 90% or 85% of thetota gross dividend. 70% of the gross dividend will be booked as a reguar dividend ("gross" with zero witholding- no ta was actuly witheld) in Tota Retu The other trsacton in Tota Retur will be interest on stock loan(600021). The amount booked will either be 15% or 20% of the gross dividend depending if there was a stock saleor not. The two Tota Retur trsactions should add up to the amooot UBS pays.

Example: On 10/15, PHA is enhce with 1,000,000 shar with a gross dividend rate of .10. No shaeswere sold durg the enhcement period. On 11/15, shes ar retted and UBS credits our accooot with$90,000. $70,000 (70% of gross $100,000) would be booked as a reguar dividend with no witholdingta. $20,000 (20% of gross $100,000) would be booked as inerest on stock loan

Sometimes not all the shes we hold get enhce, so there could be a dividend pad outside the enhancement along

with the dividend enhcement In these cass, interest on stok loa is not afected, but the reguar dividend entris modified.

Example: On 10/15, PHA is enhce with 1,000,000 shes with a gross dividend rate of. 10. 100,000shas were outside of the enceent on the night beore ex-dte. On the pay date of the dividend, UBScredts our accoot $10,000 for the gross dividend an debits our account $3,000 for the ta witholdig(assumg LDC, Fun II wil have a witholdig rate of about 22%.) On 11/15, shaes ar retted andUBS credts our account with $90,000 (no shs were sold). Ths time, the reguar dividend entr will bedierent. $80,000 (70% of gross $100,000 plus 100% of gross $10,(00) would be booked as a regudividend with $3,000 witholdig ta. The interest on stock loan entr would stay the sae. ..no additionashaes were enhce.

MA V0000839

CONFIDENTIAL

"\ ft ., ~ = ft =tt ~

~ ~

)o a

==

æ.

)o ::

~ g

:: g

~ ..

Q ~ ft '" ~ '" - ::ï = '"

EX

CE

RPT

S FR

OM

UB

S D

OC

UM

EN

TS

"UB

S C

aym

an L

td. W

as f

orm

ed in

199

9 to

fac

ilita

te lo

ng d

ivid

end

enha

ncem

ent f

or th

e fir

m's

hed

ge fu

nd c

lient

s, a

nd in

200

1 ad

ded

shor

tdi

vide

nd e

nhan

cem

ent s

ervi

ces.

"U

BS

Cay

man

Ltd

Cap

ital R

eque

st -

Req

uest

for

Circ

ular

GE

B A

ppro

val

1/23

1200

4, U

BS

0005

21

"In

part

cula

r, U

BSC

L is

not

lice

nsed

, reg

iste

red

or r

egul

ated

(e.

g., b

yre

ason

of c

apita

l ade

quac

y re

quire

men

ts)

as a

bro

ker/

deal

er o

r si

mila

ren

tity

in a

ny ju

risdi

ctio

n, c

anno

t acc

ess

the

capi

tal m

arke

ts e

xcep

t tho

ugh

abr

oker

/dea

ler,

and

doe

s no

t hol

d its

elf o

ut a

s a

brok

er/d

eale

r. U

BS

CL

is n

ot,

and

does

not

hol

d its

elf

out a

s be

ing,

cap

able

of

serv

icin

g cu

stom

ers

(e.g

., it

does

not

pos

sess

ade

quat

e sy

stem

s or

per

sonn

el),

UB

SC

L's

coun

terp

artie

sdo

not

vie

w th

emse

lves

as

UB

SC

L's

cust

omer

s, a

nd U

BS

CL

does

not

hav

ean

y fi

duci

ary

dutie

s to

its

coun

terp

artie

s. U

BSC

L d

oes

not m

ake

mar

kets

,po

sses

s in

vent

ory,

or

have

an

esta

blis

hed

plac

e of

bus

ines

s. U

BS

CL

does

not h

old

itsel

f out

as

a m

erch

ant o

r as

will

ing

to e

nter

into

eith

er s

ide

ofse

curit

ies

or d

eriv

ativ

e tr

ades

."

Foo

tnot

e 4

at p

age

4 of

"te

chni

cal a

naly

sis"

pre

pare

d, a

t UB

S's

req

uest

, by

Sul

livan

& C

rom

wel

l LLP

and

pro

vide

d to

the

Inte

rnal

Rev

enue

Ser

vice

(No

Dat

e P

rovi

ded)

UB

S 0

0047

4

~

~ .

r

*-*-*-*-*-*-*-*-*-*

Thought it would be useful to get us in a room for 20 mins to discuss the following;


EXHIBIT #11 LBHIPSI00035461

",:,:,:,:",:,;,:,:,:,:,:,:,:,:,:,:,:,:,:.;,:::,:,:::.:':::':::::::::::::;;::~:;:::::::::::::::::::::::; ",::;::::;;:.:::::::,

",:~:~:~:~:~:~:~:~:~:~:~;~:~:~:~:~:~:~:~;~:~t:~:~:~:~:~:~t:~:~:~:~:~:r:;:j:~:~::::" ',''''''

, " '..':,:',',',',',',','.','.',',','.',','.',"',',',',',',',',',','.',','.',',',','.',',

::::tt~:t~:~:~:;:!:i;~:~:;:tt~trrflilIDllr~~latltrm~¡¡

.::! Hi Ian:: ¡ According to the email below, the 4 US securities below pay cash divs: ¡ but are not subject to withholding since they are classified as hybrid: ¡ securities (for tax purposes). That would mean a Cayman holder would not: ¡ suffer 30% withholding and would have no incentive to hold the positions:: i in a synthetic structure. Right now we are holding all of these, i securities in an LPS for Highbridge (and they are on Net B/S). Based on: ¡ this information i would like to move the positions back to their PB:: i account but wanted to run it by you to see if I am missing something.,: ¡ Would hate to do this and find out down the road that HB owe withholding:. i tax on the dividends.¡: ¡ Would appreciate your thoughts on whether to proceed.::: i Thx

wa~y¡: ¡ ~ -----Original Message-----:¡ ! ~ From: Murray, Karen:: ¡ ~ Sent: Friday, November 26,20049:48 AM¡:! ~ To: Black, Elizabeth; Baldassano, Matt; Ryan, Patrick D; Taxops:: ! ~ Subject: RE: Highbridge LPS Basket;'1 ~¡ ¡ ~ Anthony,: ¡ ~

.:! ~ The two remainÎng securities are tax exempt also::1 ~¡: ¡ ~ Thanks

i I ~ Karen

:: ! ~ ----Origi nal Message----.¡.. ¡ ~ From: Murray, Karen: ¡ ~ Sent: Thursday, November 25,20045:56 PM:! ~ To: Black, Elizabeth; Baldassano, Matt; Ryan, Patrick D; Taxops::! ~ Subject: RE: Highbridge LPS Basketn ~:: ¡ ~ Anthony,

n~i i ~ 816851208 SEMPRA ENERGY-8.5% PFD this¡ ¡ ~ pays a cash dividend, but is gross paying so the client will receive:¡ ~ 100%: i ~ 156700403 CENTURYTEL INC-6.875% PFD¡¡ ! ~ this pays a cash dividend, we don't see this as gross paying, but I::¡. ! ~ wil check:! ~ 302571203 FPL GROUP INC FPL GROUP INC CORP UNITS this: i ~ pays a cash dividend, but is gross paying so the client will receive

:¡I:J:,::;. ,1, .~~,o/~.. ...... . ...... ..... .. ,::',:':;\:',::::::::,i':;',':,':',i,:,:::::",:,:,':'t(::::.,::::::.::::::::::::.?:.?:::::t('::,':'::,::?:::t(:':,::,::::::::::::=::::",::?::::::::::::::::.:::::::':::i:?::::::::=::::::,::i:?::::i:::i ....... . .....,.....,.......,.,


EXIDBIT #12 LBHIPSI00036060

:; 370442717 GENERAL MOTORS CORP-6.25%) PF this:; pays a cash dividend, we don't see this as gross paying, but I will:; check:;156700AH9 CENTURYTEL INC CTL 43/408/01/32:; this is a bond - it pays interest. The client wil receive 100%:;:; I'll advise on the two outstanding tomorrow as I need to check this:; with someone in NY:;:; Thanks:; Karen:;:; -----Original Message----:; From: Black, Elizabeth:; Sent: Thursday, November 25,20043:35 PM:; To: Baldassano, Matt; Ryan, Patrick D; Taxops:; Subject: FW: Highbridge LPS Basket:;:;:; Antony:;:; i have sent this mail to London who wil check the cusips and tell you:; if they are seen as interest payments or dividend payments:;:; If dividend payments then their USWT rate on real dividend income:; received is 30%:; If interest paymentes then their USWT rate on real interest income:; received is 0%:;:; Thanks:;:; Liz:;:; -----Origi nal Message----:; From: Demonte, Anthony V:; Sent: Monday, November 22,20048:30 AM:; To: Black, Elizabeth:; Cc: Ryan, Patrick D; Baldassano, Matt:; Subject: Highbridge LPS Basket:;:; c:c: File: Book1 .xls :;:;:;:; Liz-:; The spreadsheet contains long positions for HB, which we currently buy:; into a swap to enhance their yield for dividends. Can you have a look:; at the top 5 to see if there is any withholding for a Cayman domiciled:; account. We are trying to identify trades where it makes sense to:; leave long positions in their LBIE PB account. Without reducing their:;yield.:; Thanks,:;AD

LBH I PSI00036061

of 1

Verna Ramirez

From: Donna Howe (DHowe~angelogordon.comJ

Sent: Wednesday, August 11, 2004 8:34 AM

To: George Fink

Cc: Joseph Wekselblatt

Subject: Re: CFDs

Hi George

I understand that they settle in cash. However it does not appear that they are bookedcorrectly, nor are they documented correctly, I've got a call into Lehman. We may need tochange the way we deal with them.

I'll keep you posted.

Donna

~~~ George Fink 8/11/2004 6:33:42 AM ~~~donna;all cfds' settle in cash. a cfd is used to circumvent the tax.

,.,.,. Donna Howe 08/10/04 04:53PM ,.,.,.All,

I see a sycode SLRPRS CFD with Lehman that is booked in TPM as "PS" preferred stock.Obviously this gets booked as a cash instrument. How does it get confirmed? How do we-notify Lehman in the trade upload process that this is a CFD rather than a security. I don'tsee any legal agreements for this. Do they margin us?

Two examples of SLRPRS CFD trades are TRXNUM A4063713 on April 1,2004 and A4069046on April 13, 2004 in CVPF

Thanks

Donna


Proprietary & Confidential Information ExmBIT #13 ANG-PSI-0001088

From:Sent:To:Subject:

Sarah Robertson -:SRoberton~angelogordon.com)oTuesday, July 18,20068:12 PM (GMT)Michael Swotes o:Swotes~angelogordon.com)oNotes from last meetig with Anthony Hael.

Meeting - Febrar 28, 2006

upate mtg with Swotes and Harl- team - workig well together - can cover more groun - - ability to go deepe and cover more names ---event drven/special situtions -

less positions -more conviction - ev.olving more into a stock pickers model

Can look overseas -- UK, Genany , Hong Kong --

-Contrcts for Difernce - used most in offshore fud - so we don't have dividend witholding

CFD is probably about 20% of portolio

Redactedby

Permanent Subcommittee

on Investil!ations

Permanent Subcommittee on InvestieationsProprietary & Confidential Information

EXHIBIT #14ANG-PSI-0000003


EXHBIT #15 LBHIPSI0003673B

...n "'........

....... .".,......... .....' ...............................""""''''''-.............."'"''''''"""P"'-""'" .............................',",',',',',' ',',',',',',',',',',',",',',",'.,",.......,.. ....

.... ........

~- ~ .... -~........_.. .. .... ........ ......~......_................_............ .... ..

¡ I ,,-----Original Message----:: ¡ ~ From: Okay, Bevin J:: ¡ ~ Sent: Wednesday, May 08,2002 1 :37 PMr ¡ ~ To: Ryan, Patrick D; Story, Richard GJ ¡ ~ Cc: Trommer, Steve; Pace, Alan; Dorman, Jeffrey S:: ¡ ~ Subject: RE: SWAPS FOR ANGELO GORDON:¡ ~.:.. i ~ rich, I agree.....if the positions are for longer term we can pay:' ¡ ~ 100%.1 i ~ I'd also like to take the short in CFD (if possible) to keep a hedged:i ¡ ~ synthetic strategy.

di ¡ ~ Going forward, please keep me in the dialog up front as it doesn't., ¡ ~ look good that we offered 92.5% and thend: ¡ ~ changed pricing. We wil generally pay 100% on synthetics if there is:: ¡ ~ a term financing element. Multiple: ¡ ~ dividend % for US stocks confuses the picture as swaps/CFD's are not,: ¡ ~ subject to withholding unless the sale purpose of the trade:: ¡ ~ is for dividend.i i ~ thanks.: ¡ ~ -----Origi nal Message-----'¡ ~ From: Pace, Alan:. ¡ ~ Sent: Wednesday, May 08, 2002 7:18 AMi: ¡ ~ To: Okay, Bevin J; Trammer, Steve.: ¡ ~ Subject: FW: SWAPS FOR ANGELO GORDONn~

¡:I ~ fyit i ~ -----Original Message-----:: ¡ ~ From: Story, Richard G.. i ~ Sent: Tuesday, May 07, 200210:14 AM:: ¡ ~ To: Pace, Alan; Dorman, Jeffrey S

.il ~ Subject: RE: SWAPS FOR ANGELO GORDONiii; ~::: ¡ ~ I think we have to do this to keep AG's business:: ¡ ~ (if the prefs are long-term posns to be held ~ 3mths , but not for.: ¡ ~ short-term trades over RD),n~r ¡ ~ Db have given cas 100% divs + 55bp financing sprd (so we know that AG: ¡ ~ could get this price also).:: ¡ ~ Since AG is today 60bp sprd (L+40, 20bp GC s.loan), its just a case of,.: ¡ ~ structuring the swaps/CFD'si! ~

i: i ~ ----Original Message-----

oj! ~ From: Pace, Alan:::.);':';.:.:..,:.:.:.:.:.:.:.:.:.:.::..:

..

'..n... ........ .,........... . . . . :':.~:~:~:~:::~:~:~:~:~:~;~:~:~:~:~¡:::~:::~:¡:~r:~:~:~:::::::::::~:~:~:::¡:::;:¡:::¡:~:::::::¡:~:¡:~:::r::~:::~:::~:::~f:~:::~:~:::::::~:~:~::t:~t:~:::~:¡:~:::~:~:::j:::~¡:~:::::~:", ',:.:,:, :.:. :.:':.:.:':.:':':.:':.:.:':. ::: ' ':, . , .. .:'::':':':':'.':':':-:':':':' ...,...,''''',','.'.'.'.',',',,',',''.'. .....,............,.....",...,..,..............,.......,.,..............'.,.,.,.,.....,.."..

",''',..



':'::: "':'. ,:::'. ',',:,. ,. .. .. . ::"::""": ::'::::::.:'.:.,::,:.:.:.:..:..'::. .:,::.::'::::::,:.:.:,::/.':..:'.':: ::,:.::. ":::,:': '.::::'. :.::::.::::".:':'::...::"': ::'.'

.: i ;: Sent: 07 May 2002 13 :51;., j ;: To: Story, Richard G; Dorman, Jeffrey S

:, I ;: Subject: FW: SWAPS FOR ANGELO GORDON.: i ;:

':! ;: what do you want to do?.: i ;::,'! ;: -----Original Message-----,: ¡ ;: From: Trommer, Stevel;: Sent: Monday, May 06,20023:06 PM

... ¡ ;: To: Pace, Alan; Ryan, Patrick D

., ! ;: Subject: SWAPS FOR ANGELO GORDON. i;:.. i ;: Gary Wolf called regarding the swaps that was discussed on his.' i ;: pref's.,¡ ;:

i ;: He said he is being quoted by other brokers on the street 100%¡ ;: dividend doing it via a total return swap as opposed to the 92.5% we

, ¡ ;: offered

, ! ;: via CFD..: i;:. ¡ ;: He said he would be looking to do this on his more long term'. i ;: positions as opposed to one's that he knows they will be getting out,! ;: of.'.¡ ;:: j ;: He wants a call back tomorrow either way so he knows how and

:. i ;: with who to proceed..¡ ;:

:;. i ;: Steve

. '.

."..".''''...1::l"l,:=:

=,:

:;¡

š..I:.:

~',~ .

1(:

,.

s':

l-

t;

I:::

LBHIPSI00020696

-c-Q). - ..)- c:Q) Q)u Ec: Q)co uc: c:.- coLL ..

~ c:...- W:J0-W

Q)..co"'o..::CO..



+-c:CD

ECDuc:CO..c:W-c-Q)--)-

CD..+-e:--L-CD..+---CD

CDL-eo

- -

en en1: en:: ~"' C)e 0c. C.

C) e:e: ---- L-;: 0 - -g CDe: 8 8o ~ x~ == co ::CD ~ Ü --.. -- I II- c..

c:o--..uco(fc:coL.....

- CDo ~Ü (f~ coo (CI I

-

~o-CD.c'"CD.c.¡:u(fCD'"(f.-ECD...-..ucow

'ë+-co"0o+-::co..

LBHIPSI00174964

.

ou~CO

Ü

I+-c:Q)

ECDuc:CO..c:W-c-CD--)-

~ enen en Q) Q)-- -r: en Q) ro.cl=uj c: ~3: - ~Q) - 0 _x en ~ en .9uj -r: +- = ~ Q) E "C "C"' +-.. == a. 0'- - Q) Q)c: §-O' E "' c:~ ~ 16co o.. LO Q) CO en e c.en (. ~ N +- .. -- i- -(3-~0EE ~~~ .8 ~c: 0 "' CO - (. CO Q) c: roCO LO 0 L. - - L. en roECXen~ c.aco o-õB~"' L. c: (. Q) - en c.OCO c: 0 ('0 - 2 ö ó -ê -co - ~+-c: u.. ro0.)- 0 en -- ~C::J~ ~ ~ Ll.. )- "' 0' (3 5 2+- 0;: ~ Ll Q) c: u c:c: '" en c: êê ~ Q) 0-- '+ - -r: a. -~ Q) c: ~ ~ ~"' 0 ~ ~ '+ c: 0' co .. L( enQ) en "' 0 0 O'+- ex -¡:N ~ "' c: -- ~ en .9 0 0- - ll - "' .. ..c: Q) 0 Q)_O == en:! ~ 0. c:CO"' en ~= E O'~ en ~ ro 0~en -ë -(1 -Ë g -~ 0 ~ ~ ~ Q)O~Q) ~NEECC: c: en~t:Q) E c: L. T" 0 Q) L. - en :E en ::(. co "' f: +- E Q) ~ .. ~ Q):.eo c:o"'Q)3:m"CQ) ~Q)'+ c: COc Q) 0.0 - ~ en ~~ en Q) +- -- en Eo -- i-Q) ~.. .. "' co -- _en 0 ~ 0 ~L. co +- ~Q) ~ o~ ~ Q) en 0.,.. ~ 0 ro (. +- - en co .: -ê 1:en en co en en _c: Q) -= 0 ~ C ro ¿~ ~ enQ) ~ æ ~8-- co e O:J ~_o

;: \U L. \U L. +- c. ro -c: e ro 3: +- 3: . Q) c: 0. u ~-Eco L... en +- c: ~ Q) ro ~i 0 co -- -- 0 0 E 0 Q) 0-.c en ~.. E= roO en~o Q) 01- ==== ~ Q) c:f' ~LLO~en L. . ~ E Q) a.iL 0 l-(ß~:. Q) a.:! en LO - - a. ..

t3 æl= ~_E Q:~~ ~ I I'ë+-co"0o+-::co... . . .

LBHIPSI00174965

.. ....... .. . . ...,',',..','.,', ..,"',",',',','... .. . ........ .... .... ..... ..... .." ....o ."""'''''' .......... .......... ........." . .."'" "", .. '....'" ,....._--

: ¡ James: i Here is the CFD (Contract for Difference) presentation I was speaking

;.: I about.; ¡ The Lehman CFD is a unique and simplified version of a Total Return:. i Equity Swap that gives you all the economic upside/downside (price;. ¡ movement, dividends and corporate actions) of a security without you: i having a physical position in that security. What happens is that Lehman. i will buy or short the security on its own books and pass the economics. i to you through the CFD, which is booked into your Prime Broker account

: I along with your physical positions.: i The CFD is usually used for yield enhancement purposes (in this case we: i hold the physical in a US entity and receive 100% of the dividend which: ¡ we pass to you through the CFD, whereas you would only receive 70% if. ¡ you physically owned the stock in the Highbridge offshore fund). The CFD.: i is also used to enable clients to trade UK securities without incurring:: i the 50bp stamp tax charge (Lehman London does not pay stamp tax since we: ¡ are market makers and therefore exempt).

: ¡ Hope the presentation helps. Let me know if you have any further

:.1 questions... i Best regards

:.1 Patrick

r ¡ ....CFD's presentation June 2003.ppt~~.: ¡ Patrick Ryan.: ¡ Executive Director.: ¡ Hedge Fund Services¡. i ~ LEHMAN BROTHERSi * 212 526 7142

.. i Mob: 917 856 0503

.;: i * pryan(§lehman.com

I.::r(§ .

~¡

I::

.1:1

Ii:

¡::

I::§.:~ .

~;§.:

rl:

I:!

I:¡~:

Permanent Subcommittee on Investi!!ations

EXfBIT #18 LBHIPSI00033324

EXHIBIT #19

~~.~

6~(.

~æ~

--iI-

I

. .I

¡

¡

11'l IZ". ~-:...11......_....... .11.11....~ . .v. S2"~ . '"!'... V ""II..U CD.. .ü'l o: . -'-.. .U......II.. .s:. ....................... ... ~iI.....I!..!""".....t: I.II.. :t: ~ ,. C_~ lit:. ..Q.......II.. .... ... =11. 16..C\ .r,~ Q ("r' ..~..C:. ro ..CO. .H..aJ. . .....Iì~.....ÇQ.....Hf/~ II..EE. lict. fAd d"' .~.. ...... ..... ):.. ...~. .. .................-.~.

CD-I.ö Ca.. b..... ...5...1..~. -..CO...--.."".I1~...:-'ip-....CO.". t......~....~

..~~ ..l6. II.~ ...~. .~ ~--," .G:.~.51...q:.. 12.......8--.

t lit/ i t/ ~. ~ .+"-",.... t/ï i""lii...i..... ....tt-.I. t/CC..~ (11. g............. . ......1.. ..c ...gl- I~.. 8 ~:... ..8g!!Q ..Ii==-IS.... .~II.:..... .~_H................i...... ..~......ii..~....... II=-;.!!. ..II.~Ii. i~;t. ...i. ..~gi_~ ..'"-IQ_.'t...._ill.~............I..... ..'~f..~ :'"5-~;. ...1.

.~ 01 (I!l.....i: wI... c..(ll. i: ~.....i:iioil.~ ... 0. 0. o.l-. II... 0. :~... .0'IIii.. II Ii I

c1 .;- ..11 ~.- iilt"I1....-.

E-. _Is. .

.. å.l~

I

I

i

I

i..

il...

. r.-.....==s..o00f/

t:I"!:otA-W

t:E

ICi:..

.. II

... I01ii. -

.cn'jlli: liP. . '"- i

$' 1I..£d!l..........I.::..1-

l.'..........IE~.I.......~..~III

...... ..II.

Ell. . !I---._.

;201.fA --~.. .i F'.~ IIg Õ.t+. II. W -_..CC 13

tj .~_...-.II. tj....�e......... t. ,. 0.rf ¡-'" _V". .W V" _I Q .1aJco ;g _i_CO ..I.~SWil.. ~,.... E- .~., t i

-- ....:-1

I

v - 0o .Of) .bI)u.- .ÄjIIlVJI""ii(. -.:!:: iiQ ... .:fil -I. Ii ..I .1-. ..I II..¡;!I u.;; .-u. u.i. ...u.

-I. VJIJ -,.- ..Øl øCO _CCI- eeíi. .:0. :0..I .. .. l.. ..11:. A II~ .. æ-.c..=: 0- .. ~ ::..-,.2 r- . -~.. u."I.. ,.:rQ '-0 . 0 "0'1. 4:.,. ii.. r; . r. -,. f\it 11,.::.(/~ (J II. ÖÖ..¡ \.jl ~~ "'" ç. '" "'ii_1, t:t¡:¡. ::o~. ~ Q- C ~

,.

1"...~-I"t:7..ro

~.'..I ..

i

!I--

. . .f. .. ..r;II. CC - l!~!I..;r~Q t. (( .. -;;:!bfJ . ¡;...2 tJ "..c!l Ç) gj - ç: ..(/(;i'..~ .~o: (/- Üj ~CFIi. .s- l(/i..io. .U"81. 11.911.- 1.:J.... liD..- iI ~

--~ ..--..II.

~

§~tQ

~

Š

LBHIPSI00002535

~~

§~tQ

~.~

!:

LBHIPSI00002536

øI

iit

I. I~ I

--

¡illiI ..

...

..

. ....- ..~ ~'' ~ r''' cili. t:..c.a...Eii. .tñ-- E 1.-$. ã Sill.., E... E.. ...~......¡¡

~..... ;;..~. -d=:~i. ~_. 11.-:1 ~.... ~".-.i.i..~..,...... ....~II, JI...~.... ....=1 ~ - fF .~ ~...C"'. ... -. .. ....0.". _. - .... ... '...'". - ø- ... -. .. V i86- 10 1.81 .. - .s.....~....i, .11 0IIrÌ'~. .. Ø1!. ~iI. .ii . . - 10 tUv II "". Oll':" . _...,0... i.t:.. 11.,"0.. . C. Ki ... ro... II~. -.r",. ~. (,'1 .... VII (7:1' . V-Æ-0 . ..:1 ~II. l'1' .... r\ . ... .-Of.) -bbl ~..- .:3.'" 00. .'V.ii.., NI'. V.. .............

II ~'f ,~_11.... ~ '--;;f ...p-..,:". i ~iii. :: ~ ..0..

-. ~ - Ii .- .II. . ..:-.-. ....1 --- .

....I..~II. ..~II"f..1-

_..

_.. =.....

. -.. ... :.. _I.....~.õl.,........ ii

_i.,...~i........,

III.. . ii..~q.i.... II

~~I N-I.. ....~:I. - '''.I..~O.Y"_I.. f/ ::Y" fA.iI, BfA._. .. II fA i

(' eN .,.ii.. ... .~..

.111.. II.1-

~ - -p:_1 i: . .i~.. ~ii,..... .

="f.s".. t~.I._I. ~.~'. II ii..~.......... .......~.ìí.,.

~ .~IL. ~.i' ,,~.II.. ~II. ...

~-('~Y"

... ~..p:.-a

-('~fA

..

....---M. ..-A.. -- ('.. ---. -H .00. . -9.

- .. -""'.1I.,.8 BY''- - . .-,..1.°..... .-

('. ('HI Ht-" r-r-.. r--. ..-'D ~--.. ii. .('"" eNf.

.. II.- .11i- .-

.8tn.

.. . I -,.. ...--- - ~:I.. .~H i -. H!!... l£iu. ..00 ~"'ii' . \0. . .,. 00f; €1 €1-f; - -. -.. -

-- ..-.. i-

::: :¡. ~IIII II

~~~6~~

~~~

~~~6&&

~æ~

~.~.~8~tQ

~.~JJ~

~.~.~8a~tQ

~tr!:

Anthony V. DeMonteEquity Finance, VP212-526-9025ademonte(Qleh man. com

r

1.1

I:,

I"~:

~.

fI.~.

I.:~:

~.

l~.;

~.

~:t~.

t~':

~.,

~

rr~:.

r~.~.~.

J.

Special Div coming up...There is a shareholder vote on Oct 6th, thespecial div record date is not announced at the moment.HB looking for Yield Enhancement on a large position. We would need todo VS a Swap..We can add to a existing LPS. They understand the way wewould unwind the Swap. We need to be as competitive as possible.They are 98 bid away from Lehman, at the very least we need to match.The Counterpart offering 98 is UBS. Please keep there bid with UBS toyourself as J had to squeeze that information out of HB, they reallyweren't too comfortable with sharing that information.

HB looking for a answer ASAP

ThanksAD



...

..

:! Got it, thanks again.'1;i ~

: !: i

\! Jim~\r ~'::.¡::-1

:\: \ ----Original Message----: ¡ From: Demonte, Anthony V:: i

i ¡ Sent: Monday, October 25,20044:49 PMf! To: Metaxas, James

....! Subject: RE: Trade Confirm

¡:¡::: I fyi, the only reason for HB to SWap is for yield enhancement.t ¡

r! thx

IIr! ---Original Message----i! From: Metaxas, James::! Sent: Monday, October 25, 2004 4 :48 PM.::.! To: ~emonte, Anthony V

.! Subject: RE: Trade Confirm: i Thanks, Anthony.

II Jrn

idl

d: \ ----Original Message----d! From: Demonte, Anthony V:: Sent: Monday, October 25, 20044:46 PM::. ¡ To: Metaxas, James

(! Subject: RE: Trade Confirm

i.1

: ì we wil trade today, settle on the 28th Record is the 29th ...They are

t! absolutely looking for the div

...1 thx~;j j:;: ì

:1

.: I ----Original Message----...! From: Metaxas, James:.! Sent: Monday, October 25, 20044:38 PM

: I To: Demonte, Anthony Vt..L... :;:;::?:::;:;::::=::::; "0"'" ....... ...... ;:;::::;;:::;:;:;:::::;:;:::::;:;:::;:::::::::::;:::;:;=:=;:::::;:::::;:;=:=;;::;::::::::;:::::;::::::::;:::::;::::::;:;::::::::::;:;:::;:::::::::::;:::::::::;:;:::::;:::.....

::.:.:.:.:.:.'.;.' ;';':';':':':'.':';.:.:.:.:.:.:.:.:.:.' ....... .......,....



Subject: RE: Trade Confirm

Anthony -

Are they due the dividends on this as is, or does it have to be a shortsettle?

Jim

-m-Original Message-----From: Demonte, Anthony VSent: Monday, October 25, 20044:19 PMTo: NY EO Swap MO; Prime HighbridgeSubject: FW: Trade ConfirmImportance: High

all-

I wil book a new LPS Smart TIcket to represent HI4

thx

-----Original Message----From: Demonte, Anthony VSent: Monday, October 25, 20044:16 PMTo: Anthony Demonte; Daniel Kryzanowski; Erazo, Christina; 'Jordan,James'; Matthew Bowen; Michael Meys; NY EO Swap MO; Prime Highbridge;Thomas RegazziSubject: Trade ConfirmImportance: High

Trade Confirm

LBHIPSI00110754

Leh Code

Counter-part

Buy/Sell

Account

Desc

Ticker

Cusip

Ont

Price

Proceeds

T/D

SID

Basket

Lehman Swap

Buy from

PB High Bridge UTIL (193)

Allant energy Corp

LNT

018802108

178,209

$ 25.90

$ 4,615,613.10

LBHIPSI00110755

l

. . .. ,',","',',".","'",',""'",,,'',':'",',','."'::'.',",',',"':":',",',','.', ' .."", ,'",' ,,",',,' ",',.':.",'" ',.",', '" ", '. '. "., .."..

1

!

! 1 0/25/2004l

.1, ¡. i 10/28/2004: ì

: I'.¡ HI4

i

i,1

'j

¡

. !

..ii

.1¡

¡

1,

. iì,1

!¡

, ~'I

¡

.!¡

.1i

, I!

.i1

l,1

!

LBHIPSI00110756

¥";;, "'' t,/ì,;'"

" ,. ..,',' B., .. '" d dLEJi,.',;~RSlJl~

,A","1',24th200,l, ""pn d .', '

Maverck CapitalKtt~ Sb.~l:M,Rqbeesøn,- Paree~OO Creent Court

Suitø tOOO

Dal1åS, TX752U1d" " ',' ,','

DeaSharyl!

Ít wa a,pleasure'nneetÜig '\ithyou, MJche11øand JQI;. As. foUQW up to out mc~tiø,gweare

ptaviding thefQI1nWing:

.:~ çre~Ut,tlEÍFia1u.;iRg , ' ..OVer. tpe next tWòWeek~ YYêptgp'sé a.~iØw-wíth ~9tLeh$a.riBrQthe~ctëdítexecútves to provid~ ,~, fulèr t1erstaadin()fMåV:Ørii:k~sfuå1cíastengt.. 'Ibiirm~g\'tIllb.elp f~tl4ùe eKp~ding ôf ct~~t1ii\e$; i;ettrigct)llatetalPatëteìS. Qí'ôss--ïïetting;

secttd and unecured finañcing!aci1ties, anû cortittd nöticèptovisionn.

In additioii tòtRe~bövêtteetittg,wtitosUggest Joe Manog\J$fiêtfólITTteasttgrçgp togain roorei:ghth:io Lebman'$ iÙding ,process áádfh~EqtiityFhiace ttndin~

ftewQlk~

(.. .ins1Ïr;uice Wrapperf()t~rime 1Jrøk~r.ge. "Ençlø$eQ atêQfficial co1inmmäti()llotfT;mVèleë Casuatypaidp$Uìty (AARated) stating.tf itbaatunyÍIulQ ,tQ~.netequity for LSlllp;rline brokerage cHenIs,The coverrge

,ex~4stØ~e~ ne:ld wibè.~lf()t aU:abjUaa BrotbkkPaaeBrökerige çlièin~l,tallLehmanc.u.dianann ssustoians. Th

poIìçyis available for roll legal'review t\tÎtl our

Lonepn,cGúUset

,~), rdme XXID$

OUrPriqielb..s'prod;i;if p,ròYi4è.$ lIS,', b$e ñ~ge fi¡nd$ri$,b~ed~tgi11le-ti4iñgWith~irthe. bèneflts of', ttìtt()fi~l:prltne:b.røkere 'ìnelü.il' the,Ìí$utnce~Täp:per for addedppotttion. Gowpettiye ptOCuçtt're-cl11s sh.QJ.:,$e;u.û~.4.o apiiìcipaa siqk lo~ V¡mth:resUlt intecäUëXO$ttrè .âid hOf~ìnst btôk~rtleatrcredt,Addèd berefltsQf PriniePlusindude, '~oneaCCQUlt~ pi;açesshig :and. erh..n.,iniignan4 interestn:Qrting.

i;~~~1N,.)~~~~~w.ç.~ N:BW~:Nï~...~ ~'~,~,



CONFIDENTIAL

.;.niVide.dJtnnan.ce$ntSobi.tigJJk , ',', ,','We-have ä varetyof:sôlutítnišuSìngsWáijàndsecurtieš leïidiri vehídes föTacblevmgyieldercerent;, We. prop9seMa,yepckprtwid,e ,ii. an lntere.stList 'øø ,;; 'weëk1y baals forpps~wle~e:t"tr~' ~11itb.wødl4 reet~inq1Jótea'Hid.i¿~tiyt:p--çiAg:JeYellt

(., '$leêtroniêiÇQ~ij~tivJ "Wèwould like t6:demohsrâte our ,n~v clieetWe1:bpörta.ILehmanlit,~e 'for

'both Maverick

otñ~sinPaUaa: andN~ Ypr1ç,E,eluanvç,caa proyidf MAYeekperronreldÍJ~ctACt~$$,tø. alllEuity, ptodiitG ~tnddD:gtes~çh. 'eØbrrïns.'pnthê ntOkcrage,.atd. ,POiifQ1io

aaýtcs.

t~aa Brothéals.proV'ÌdeselooiìóhkttdecöttootivitývíaFIprotocöLMaverickëan

e.leçtfpub;aUY t~t,ídrøeÍ've~e 'ihQrá;iqtlûirtÇtly, U'øniitsordtt ,mana$ementsYStt. 'WeWttùa 1iket:q (i~"tistte tllt~~nneçti\'tyÌIconj11ttiQnwith "'ttäbveLell--tive ~nnonstraton, ' " ',Ç)SecuritiesLen(ting Desk can

receive and t.mit stock Íoan Ii1es via stau.dard

tr~j$~ia1'm~944. A wEßssllitìaais t.~erdd~elapme-t ~d wín.Hb~ ,ayaUable ii Jnly20¥)1:, We. wø~dJike' tø.distti)s, the cUUcøttra1$ijlssiøáffetricmd sèlect ~. béstwlútion,tørMavedck,

..:~ Portfhtio'Mànagemént.Syïtems, &frie.Bróker--eReporting:

,Ombe~ofpdmebrqk:enngetthPQlqgyG~t1 QQnnl wmbetpntaQÎjl1g yourëgatdingttec¡¡eetpottfoliq mAA~gtJerttIU::kêtpl~e.G''~tli h: yeatsçf ,experience with most

verdörs, andwiUdemønsttatefuii' ~eau.;:~irrp$of;'r~a.t;:P"tNioh$ly discU5sct, vvle, wííl a.lso#tååèå.vatiaale teGt.. exeiii¡;ewiti the (ìEN1Y,A$oß;arèPtPdûçt

Wehhye,reçentJyøeyel()~~ .),e\v$Ji~ Qfptímep.r()ktr~e repol'sforJ'lpe ~tldiéhtdeliv~. A.litiøn~,rep.örts ,h1öludigä.lmtìng .añd P&:L Will, bètêleaëdlátet, tmßyear

viiiGE1"J\.A. .WewillSfdYPl1a, s~fJlto.ftt~tnew ,r~ii ,~uìteMa¥l~t. '

~~, LebmanBrott'rFlnandaiS ",=~==~~~AIII F~R.""..oW 2O.AJ.. 'fotàIStokhlder'Equ.ityor.$$;6biL.

.. 1'pt~icapítat Qt$43,Rf)il,

'. T.ota.As$et$atSi2.,$bi,1.

. l=~..~i~d:%rftç Çt (¡y 14~ôf.¡¡ ddtQ~~

. Shot''4eqdebttPnetii$eJ3.tio ø::nnIy 4%

.' a:i$h~ ~qv~ge 9f "ies¡¡4iqui4;~$ett in ind'utryo( 427% (OS ~,249%aadM:$DW($'~4i$J d' " ,.",', ' '" , . '.". '. . . "', '

. LöwcctOTCcr.ditexposueinÌÌdustr,of iÓOO/ö(GS~330%~dMSP\V,~UJo/ô) ," , '" ' ,,,,:. ' '"

MA V0000795

CONFIDENTIAL

.:. Lehmft BrothefSPrime Brökêrage"TeamNIitverick"

Ad'ched i$oUUdeæ~te44eIu ~rQtber QßIQl)al Pn.e BrQkerage~~eam Maverck'"C()h~t li~t, The, téa' 18iH ciutøínzø'tteir CÖyerae ,Spi;ciRcaJlY tQ n1~t Mavedcll's

leUÎements,:.l

W'eaxe very pleaed to llavét1e'Qpprfitytoøpand the:Mveri¿kCapitdllLehmân Brothers

ba$i1)~sp,ttn~~ip~d witUoitå.lly p.wseîtàëÕmPtë11en$~ye ,s.eeit~ååd pncapropó,ssl

imediately after the,äbvëtoUów~upíteeare, cómpleiëd to Màv~rick' ssatisfactton. i wiUcallyaulp,å .f,eQ.$tØi:$$W3~ ~e titNeišsn,tsatt4 UUtläte tnein;~atene)(tsteps.

Z''''~''.'..''''h'

,', n ' rar~",."'",.,".',1.,'.,,,..,..,"..'...,.","',',..t,"',"','...'".",...,,:,':,.. A'.'."'...~,'.'..',,".".¿,.,'',...~

. :., "''y'"'-''' .~.. . " ' "',, "..'öward ,8l~blla11, ManaggD1rectof ' 'qlabii1. Heád"'OlQba.l;pritn~,~t()keta.ge Grøiip

t." ~ .

cç: Ji1~epti M.lvanagleM:1lVe.tk C~ital '767 Fift,,Avenue 111b Fioor.' ."." ,C" : ,""":: . .."~.,. ." ,":.;"

NewYøtk;NY 10153,

ENCr.USù11ES

MA V0000796

CONFIDENTIAL

Ljl.itii,.Brötliers

Tetft Mttverick

Gif)ba.l~e,Bt()ket~geQl1l-P

i,$øniøt Atçønnt Ç9'CCt;~ I

HówardBlkhDan

GGobal J:ee -GGabttPre 1J1'kttrag:e GrlJtlp(2J2)S26~8ii5hl)l~c~lehni;CC

. .~

J(llln;s~ydd, ,Qlii¡"t/1!e..trnnrítge$ate$

(212)52~715jSßyaal91ehm8J.com

AùÛ l!åceGl"'btiPriJfé.Broké1'ßSìí, .,,:w "" ",.""',, ,a-, ' '"(44)207-2~Ø~3()30a:~te((i~luan.co

r "ssarltl~sten4iJg :çl)vttg~ ' I

JnnPagg()P#tnryl)$;Cn!ø,.øge.(4i2)$2R..71GtF~ (2iir$i~n182,jj)~gaø~J~ñmaa,Ç(p:

Steve ''IVIIßl,r

flS.CtiVèfage(2ii) $i9~?ø~5IEa.x: (1.J2) $26~6l8.isttt1~ëht;Cøm,:f.ttKJ~ya "PrtuEüript((1Í CC11er4ge.

.(441io.7~~ì4$. ,pran~iëhmat~ë.öm .

Cráig-MørtøneÜI'ff~tJe(iiiiNlê

(44)Z()7~Z60,;iQ2S, ctnørtn~1êlitnán,Cótt

, '

David Motns'l.rg~~n,'t:((Yer"gl!'(813) 5511~7I334.nn9tts(§leh$ai1.~onn

MA V0000797

CONFIDENTIAL

QlØ~~~.B~ke~e"'..ëliéntSetV.~r:Çf)yer.gè ,

Jacke~nDa~C/$,.."tøøi.'ü.'(2121526~9234

jåÇy~lç~anót:m

EliStathatost).$.-pyiniiryt;w'tage(212) $26~7943~~th~1~~~ff

'W.rrln,R~dEu.,øpe--T(Y1n l.eadf'

(AA),207-ZS64242'wteç~ltllaì-tøm

ç.rue. CO-xButg.pt,. Prlttfai,Cøuttge'(¥)~07~+6Q~134$ ,:oøJ(aaebtcQ1'

..~..,Gl~b~i~.r~Jierage",Çlelt1:~~~J99Cøvenge

. Ga.tetbQliJ1JJ

G!~¡'I ~t! 1J1t)kttr((ge tJent Teç.ll ..JJø#dø(44)201~260-1503 '~q~e~.C9i:N6ttDEscoèr;,GJolJ Pr",-- Br(J~t4ge CKiTeç1Jøøt!gy-' NØ"f;onc(212)S2~6 ,,'n~óff~J.~$$~cQn

.. '

I ",Gl-ålEEiity',. Cås~Këe¡¡ç1$àl~' i

Lou Sdiiifèle

((S~ $aJ~- ¡jaJÎÎ(214) 72~9.47í

J)ävid UeLøçaChriValn, chr MathewsU~Potf(JliôS.iJte$-New ,ynfk(Z12) S.~6~ 7()3.L

¡J9JJS.ý4er,P~ter'Jätck

(/o$~ Tradúg.--L.i$d".QT(;(2 12) 526~7610, 528~7055,


Andy G:t9SSiRØbI- Lt)w~JJntt l.iJ~er:

11ûttønØl $$le~ Tr.tubig(212)S2g;630S~ ()lQ(~: (44)iø7~26ö~31l3

AigllGonZ~áifeliu,nnier~gM.arkld(¡l'i!~P$al "(Z12j.52S,,8600

¡'.y End~Jamb~ Axo..Heåge..piiiÚt Siiñ(LlZ)$i6~9 13'Ö,

l" -;


--..._-¡ By the way, you should call jim chen in dallas to discuss swaps. We¡ were going back and forth last week, but never connected. Since I'm¡ here, I think you'd be the best person to follow up with him. I think¡ they'd be open to putting some back on once they become comfortable with¡ the fact that we're not going to push them to sign a new isda. Also,¡ tell them about doing long swap/cfd business around record date items so¡ that they get enhanced div treatment on us stacks and so they don't have¡ to move them out to UBS as they have been doing.

¡ His number is:: Redacted by the Perment

Subcommttee on Investi ations

Talk to you later.

-----Original Message-----From: ji m. chen(Q maverickcap .com (mailo :ji m .chen(Q maverickcap. com JSent: Saturday, January 31,20042:07 AMTo: Antonell, Christopher GSubject: Re: Long Transfers

Do you have a dividend enhancement product for long or short US equitiesin the offshore accounts? For the long US equities we only do it forour LDC account. For short domestic equities we try to save on ourdividend expense in our LDC and Fund II accounts. Let me know.

"Antonell,

Christopher G" To: "'Jim Chen'"c:ji m- chen(Q maverickcap. co m~c:CAntonel(Qlehman. cc:

com~ Subject: Long Transfers

Permanent Subcommittee on InvestieationsLBHIPSI00134533EXHIBIT #23

01/30/2004 1 0 :51

AM

Jim,I notice that you transfer some of your long position out around theirupcoming record dates to UBS. I imagine that is because of the dividendpayment. Is there something we can do for you that they are? I'd loveto discuss if so.

Thank you.Chris

Christopher AntonelliLehman BrothersEquity Finance~ * 212-528-0700~ * 646-758-4540~

-- -- --- --- -------- - -- --- --- --------- ----- - -- --------- ----- --- -----------

This message is intended only for the personal and confidential use ofthe designated recipient(s) named above. If you are not the intendedrecipient of this message you are hereby notified that any review,dissemination, distribution or copying of this message is strictlyprohibited. This communication is for information purposes only andshould not be regarded as an offer to sell or as a solicitation of anoffer to buy any financial product, an official confirmation of anytransaction, or as an official statement of Lehman Brothers. Emailtransmission cannot be guaranteed to be secure or error-free.Therefore, we do not represent that this information is complete oraccurate and it should not be relied upon as such. All information issubject to change without notice.

LBHIPSI00134534

:; -----Original Message-----:; From: Story, Richard G:; Sent: Monday, June 16, 2003 5:02 AM:; To: Brier, Bruce:; Cc: Maynard, Ian; Harrison, Kevin A; Bacanovic, Paul:; Subject: US Cayman 70% trade:;:; so for questions 1 and 2, it seems like you're saying there is no:; alternative other than moving a person to HK ?:; As you know, EFG doesnt have any employees in HK today so there is a:; fairly large admin cost of moving somebody:; from say Tokyo (but its obviously feasible considering the PL we are:; talking about).:;:; Lets expiore if a hybrid situation could work between HK/okyo ::; 1. can the person travel to HK to execute the trades, but still

live

:; mainly in Tokyo?:; 2. If not, what is the minimum time required to be spent in HK per:; annum?:; 3. can you clarify exactly what that person will have to physically do:; for each trade (in order to minimise US Tax risk) ?:;:; -----Original Message-----:; From: Brier, Bruce:; Sent: 13 June 200318:57:; To: Story, Richard G:; Cc: Maynard, Ian; Harrison, Kevin A; Bacanovic, Paul:; Subject: RE: US Cayman 70% trade:;:; Richard:;:; Let me try again with some comments. Please read italics see below.:;:; Bruce:;:; -----Original Message-----:; From: Story, Richard G:; Sent: Friday, June 13, 2003 3:42 AM:; To: Brier, Bruce:; Cc: Maynard, Ian; Harrison, Kevin A; Bacanovic, Paul:; Subject: RE: US Cayman 70% trade:;:; thanks Bruce - this all makes sense. Three questions::;


EXHIBIT #24 LBH I PSIOO 149673

..."'" .."..,..... '.'.','.'.','.'.','..... ,..:: :...,.;.;.:.:.:.:.:,:.:::::;;::::;;::::::::~::;::;::;;:::;:;;:;;;;::;::::;;::::::;;:::::;:;::::;:;;:::::::::;:::::;:::;:;::::::;;:;:;,..."".....,. ;:;;:;:::::::;;:::;;:::::::::::;::;::::::;;:::;:;;:;:::;::;:;::::;;:::;::.:.:............

: ¡ ~ 1. Is it critical to have the person in HK (because its a 70%. ¡ ~ jurisdiction) as opposed to Luxembourg (a 70 or 85% jurisdiction,¡ ~ dependent on whether SICA V or FCP)?. ¡ ~ We have an EFG salesperson in Lux as of last week for EUR div.:: ¡ ~ trades, but nobody in HK today, so could do Lux tomorrow but HK would\ \ ~ take a bit of work. The reason for the bodies is to thwart any

..' \ ~ argument that these entities are non-substantive shells. If a taxi \ ~ authority successfully argued this withholding and other taxes could. \ ~ be due. Luxco is a separate entity which needs its own staff. Cayco is: ¡ ~ a division of Hong Kong for US tax (check the box) which is why the

... ! ~ body can work in Hong Kong or Cayman.\1 ~: \ ~ 2. If it has to be HK, do they need to be resident in HK or just; ¡ ~ employed by a HK company? EFG employees resident in Tokyo arer ¡ ~ employed by LBJ but:... \ ~ 1m pretty confident we can arrange fairly easily to switch their: \ ~ legal employer to an LB HK co. Maximum reduction in US tax risk if.... ¡ ~ resident in Hong Kong. Moreover, if person stayed in Japan HK entity

'..'1 ~ could be considered to have a Japanese branch.n~t \ ~ 3. Can you explain the LBSF safeguard point you raise - not heard. \ ~ about that one? The safeguard issue is as follows: IRS is could: \ ~ argue US withholding tax is due either on the in lieu made by Cayco or:: ¡ ~ the swap payment made by LBSF. This safeguard applies to the swap¡ ¡ ~ payment. While the general rule is no withholding on swaps the IRS; ¡ ~ could argue that LBSF is a agent for Cayco and the dividends collected..,' \ ~ by LBSF are really for Cayco's.(Le., the swap payment was in fact a:; \ ~ dividend payment). One existing safeguard is the use of baskets.... ¡ ~ instead of swaps. In addition to the basket safeguard i proposed,¡ ~ having LBSF sell and swap back so that LBSF receives swap payments,... ¡ ~ instead of actual dividends. If the IRS used the agent argument there:... \ ~ would be no withholding since Cayco could receive swap payments....! ~ directly. Unfortunately we have some regulatory issues here I am!, 1 ~ analyzing.n ~:, ¡ ~ I hope this helps clarify the issues,

\: \ : Bruce:;¡ ~:. ¡ ~ -----Original Message-----.'! ~ From: Brier, Bruce\ ¡ ~ Sent: 12 June 2003 22:09.: ¡ ~ To: Story, Richard G. ¡ ~ Cc: Maynard, Ian; Harrison, Kevin A; Bacanovic, Paul:; ¡ ~ Subject: RE: US Cayman 70% trade

i:l: Rich

.¡ ~

I:

\J~ttomeY Client ~~i~ilege........ .......,.. ..... ..

..,

....... :f~;¡:~:~:~:~:~;~:~:¡;:;~:¡:~;~:i:¡;~:i:~:¡;~:);:~:i:~:~:~:~:~:¡:i:¡;¡:~:~:~~;¡:~:;:~:~:i:¡:~:¡:~:~:¡:::::~:t¡;~:¡;¡:~:¡:::~:i::::::::;:';:::;::::::::.:.:.:.;...:.:.:,:.:.:.;.:.:.:...:.:.:.:.:.:.;.:.:.:.;':.::.:.;.:.::.:.:.:.:.;,:-:,:-:-:.:,:-;-;-:-:.:,;-;.:-:-:.:- "....,........................._..-

......... -,."-.,,.,,-,-,.-.--,---,.,--,-.._----,','-'.-,-,','.--'.'.',',........

............. ........ ..........

LBHIPSI00149674

ttomey Client Privilege

;:;: Regards,;:;: Bruce;:;: -----Origi nal Message-----;: From: Story, Richard G;: Sent: Thursday, June 12, 2003 12:40 PM;: To: Brier, Bruce; Maynard, Ian;: Subject: US Cayman 70% trade;:;: Bruce~ttomey Client Privilege

;: Reason I ask is that we are getting very close to having large;: new supply available which would take us;: above our current approved Risk limit of $25m (per Tax dept;: definition of Risk Limit of the 15/30% WHT) :;:;: 1) currently utilising $12m of Risk Limit (Q Jun03 split:;: BGI - $700m (Q 2.5% yield of 70% Dublin stock = $5m;: BGI - $500m (Q 2.5% yield of 85% Tokyo stock = $2m;: San Paolo - $700m (Q 2.5% yield of 70% Lux stock = $5m;:

LBHIPSI00149675

" ,.. ,',','..",:'. '," , , l~ '

I:

I~

I

.','",', ','

i ~ 2) potential utilisation within next 4 weeks of $37m of 'Risk'i :: split:j :: JPM - $3bn of 2.5% yielding 70% Lux stock = $22m

, j :: Citi - $2bn of 2.5% yiedling 70% Lux stock = $14m

i :: SS - $200m 2.5% yielding 70% Dublin stock = $1 m¡ ::

i ~ Having just spoken to Jeff on the topic, we think its probably! ~ an appropriate time to present a 1-pager to! :: Joe Monico & Ian Lowitt on the trade to get their formali :: approval to raise the limit. What are your thoughts

,j ~ on this and what do you see as the obstacles in getting $50-100mj :: limit approved?

,¡:: Rich

LBHIPSI00149676

..

\'1 Rich,.t ¡ I read the note that you recently sent regarding div pricing at.' j competitors. Are all the major competitors in the yield enhancement:, j game? If not, who really competes for this business. Who are the

¡ I biggest in the hedge fund client space?

'I Jeffd ¡ ~ -----Origi nal Message-----:t ¡ ~ From: Story, Richard G'\: j ~ Sent: Tuesday, January 25, 20057:11 AM,¡ ~ To: Okay, Bevin J; Harrison, Kevin A; Maynard, Ian; Wecker, Jeff

.(1 ~ Subject: RE: Conclusions of US div meeting

...,¡ ~

. ¡ ;: Borrow via Cayman is considered by Tax dept to be lower risk than CFD

::! ~ in LBIE, so this is nO.1 preference if

(,I ~ Its operationally possible for Fortress to lend us their long posns ?/! ~.,.1 ~ Either way, suggest you show them 90% as a div. price on longs

U;:d ¡ ~ -----Original Message----: ¡ ~ From: Okay, Bevrn J::t ¡ ~ Sent: Monday, January 24,20053:58 PM..' ¡ ~ To: Story, Richard G; Harrison, Kevin A; Maynard, Ian; Wecker, Jeff

II ~ Subject: RE: Conclusions of US div meeting.,¡ ~,: ! ~ Kevin brought me up to speed on Fortress discussion..,,1 ~ Please let me know what i can do.n ~., j ~ My thoughts:;; ¡ ~ - We have CFD's docs in place with Drawbridge Quantitative Strategies,:: ¡ ~ so should be easy to rep.: j ~ - If we go down the road of CFD, Fortress would need to understand: ¡ ~ that they relinquish control of the underlying (ie no votes, execution;' ¡ ~ discretion, reporting etc) and can only give Lehman unwind levels for.:.' ! ~ the CFD, that's it.;:! ~ - Not sure of the term of the trade but longer the better.... ¡ ~ - Better fact pattern that Fortress business is very broad across.. ¡ ~ capital markets and not just this type of trading. Prime brokerage

:, 1 ~ relationship includes div, non div names, US, UK, Asia, futures, etc

Ii;. ¡ ~ -----Origi nal Message----

¡ I ~ From: Harrison, Kevin A:~:::::\)~:t~:~:~:~:t~:)~:~:~:::~:~:I~:::~::. .:.: . . """.".... . ~:::~:~:::~.~:::~:~:~:~:I~;t~:::~:~:~~:f?~:~:~:~:~:~:¡;i:¡:~:i:¡:j:ti::;i:¡:i:it:¡:~:¡;;:::i;¡:::i:¡~:;:i:i:i:j:i:i:~:¡:i:i:it:i:i:i:i:¡:¡:;:i:;:i:i:~:i:i:i:;:i:i:;:i:i:t¡:i:i:;:;:~:i:i;i;¡:i:i:i:i:i:::i:i:i:i:i:i:i:j:it=j:j=;:j:j::=j:j;j;j:;.:....... ::;:::;:::::::::::;:::::::::::::'::'::::;:

I

..

,"::'.:':':':'. ........ ................ ..........,",...-"...................,"......':':':'.':':":':':':':':':':':':':':':':':'............ .. .",.:I!!



, ~ ' ",', , " ",' ,, ,. " , . ., ,. ~ '.'::":,:':.,,:.,:'.:::::,:':: ::,,::::",,::::':":.::.,,:',',::': :,":".:::::"::"::::,.,,::,:',::','.::,'.,,::..,,' '.

"f1

~'

LBH I PSI00029337

From:Sent:To:

Cc::

, Subject:, Attach:

ThomaS, Alan (lED) ~Alan.''om~rgaaey .com~ '

Wednesday, Júly 21, 2004 1 :~9 PM 'epm c:pm(gorganstaney :com~; Boak~ Kaleen (lD)" , '~Kathleen.Bo~órganey .corP; ssgn qsgna~organcy .com~;mmotwre ~hòtW~organey .com~; glbstrders, , '~glbstrders~orgtaey .coin; nyiededge ~nyiededge(gorganley ~com::;

nycbdesk ~nycbdesk~orgataey .~m~. 'fpgswaptrdllg .cfpswaptrding~orgaDstey .com~MSFT Tota RetU Swaps - FOR INTERNAL DISTR1fON ,MeSsge Text.xt

Here are the mai points regang tota re equity swaps 00 MSFf:WHY .,' '-- Offshore fuds ar subject to Witholding~ta of

up to '30010 on ca divid~nds fr~in US stocks ,

-- Morgan Staey ca enhce the dividend payout 1Tm 700/0 to 100% though a total re equity swap,-- This is a great opportty to highlight an application tbtis"rrlevåt to all' dividend-paying seurities (notjust MSFf ,', " " , 'WHN. ",,' '- The record date for the Speial Ca is 1 1/17/04. We ca enter into the trsaction at any tie, but shouldai to do SO DO later than 11/12104, for reguår way settemenl in

other words, ther is tie. but often the fitcal gtis the trade 'COSTS .-- Fees on the sWap ar'the sae as commssioos on th underlying secunties

, - If client iidy, own' MSFT, Morgan Siaey will purcha the stock and enter into a swap trtion with '

, no commissions up-front '- Finacing is the sae as PB's "debit" rate' .- If client is not ,PB'ed at Morgan Staley, the Fiiucing rate win be cOmpetitive with the debit rate at the .client's PB ' ' '- If the client does not use leverage, the client has the option to fully col1aterize to reduce the fmancing cost- BOTTOM LINE'- The,incrementil cost 0/ having a swap versus owning MSFT is eilher zero or minimaldepe~ding on the client's siJuation '

CONTACTS,E. Product MarketingKevi Nowlin (PB) x2-5319

Jeff Penny xl-8670Veok La! xl-5974Ada L8gsa (Chicago)

3+726-4342Bil Miler (Boston) 3+856-8781

Paul Zabaleta :xl-8603.Tiff~y Smith xl -5478 '

NY~Equity Sales. Kathy Boak (Resech Sales) xl.9035

M5-PSI 00079ã-


EXHIBIT #26_...--------

Equitv Swaps Desk-212-761~8805Alan, Sctt, Matt Lar, and Oleg, 'For those interested, pleas se "Ot'SWap Q&A" section bëlow.

Ths,Alan

----------------------:------

Other Swap Q&A (priari rar Hedge Funds that are PBled with MS) , , 'o How ar marin reuiments differnt beeen PB and To~ Retur Equity Swap Tractions?

-- As long as the "Bridge Agreement" is executed, there wil be no dierce in'the reuiements

o How is marn I collatera reportg different beeen US equities in PB and Tota Retu Equity'SwaP ,T~~~ ' , "- As long'~ the "Bridge Agrme~t" is execute; the swap positions wil be included in the PB mar ~po

along with the equity positions. The coUatel that is systematicaly moved to a sepate collater account willbe rei1ected on a sepate interest report which is very simila to the PB int~rest report.

o What additiona cost are there with Tota Retu Equity Swap Traactions?- There ar no costs beyond those incured wQen trding and holdig in PB the underlying securties-- Fees on the swap ar the sae as comoissions on the underlying secuuties '

.: Financing is the sae as PB's "debit" rate

o What pecetage of the dividend will the Tota Rctu Equity Swap Traction pay?-In contr to the 70% (30% witbolding)

of the dividend th is reeived on1be underlying seuuties, the

swap wil pay 95-100% of the dividends. ' ,

o Wht credit exposur is assciated with Tota Retu Equity Swap Tractions?-: Perfonnance under the equity swap trCton agreement 15 ,the obligation of the pares to that agreemenL

Therefore, the pares ar subject to creit nsk to eah other. ' '-- Monthy resets ar the stdard, and go a long; ~ay to reucing the credit exposur.

o How ar Tota Retur 'Equity Swap Trasations reportc;? ' '-- Trasacti~p, position, dividend, fmacing, an corprate action data is avalable though ClientLink, and ina ronnat that is very similar to the PB reports. ' '

o Who will cover my client service nees for Tota Retu Equity Swap Tractions? '.. The sae PB representatives that cover 'your nes to4 ar well-vers 'in equity swaps and ca handlerelated issucs~' . , " ,, '

o How do I termnate a Tota Re~ Eq1;ty ~wap T~cûon an us a differentbroker to MS for execution?, '- The client may short sha though another BID. MS will then sell to the. client the'uuderlying seties to, cover the short and terminate the swap. .,'

o What documentation is needed pnor'to entenng into Tota. Retur Equity Swap Tractions?'

Strctly Confidential

Not for CirculationSubcmmittee Members and Staff Only

MS-PSI 000799

. - Maser ISDA AgrlJent - COD~ genera term ~f sw trtions" ,- Crt SUpport Anex ~ cota collate relate tes ..."- A TS Ane~ - allows for Trade Activity RepOrt to be deliver an intr~ces tte concept of deemed

confirs,(oiùy initial confrmation needs to ,be executed), and therefore substtially simplifies the

'doeumentatioII'proces around equity swaps (Optiona) "-- Bndge Agreer~i - allows PB to set colhiteral requiments on the combined ecuity and swp pQsitions(Optional) , '

, Th~ is not an offer (or ~liçi,tation of aD offer) to buy/sel the sçtiessmsents ~eritioned or an offcialconfinntion. Morgan Staley may dea ås pnncipal in or own or act as maaet maker for seUrtieSSiieDtsmentioned or may advise the issers. Ths may refer to a reseh analyst/reeah report UDleSs indicat.

thes views ar the autbts and may !iiffedrom those of Morgan Staley reh or other in the" Fir. We do

not represet ths is accurte or complete and we'may not update ths. Past performce is not indicative of '

, fue retus. For additioíí inonntion, reh reports and importt disclosueS. còntact me or

'se

https://secur.ms.com. Yau should not us einai to request authorize' or effect the' purcha or sae of.anyseurity odnstreDt, to sed ~sfer instrctionS. or to effect 8.Y other trsactions. W ~ caot guteetht any such reuests reived via emai.wi~lbeprocinatimelYtnaner..Ths communication is solely

for,th addrS),ån may contain confdentiål information. We do not waive confdentiality

bY

mistrsion. Contact me if you do not wish to reive these' cammuncations. In the UK, tt

communcation is diretted in the UK to, those pens who ar maret counterpes or'intemmediate cusomers" '

(as'defined in the UK FiiucialScrvices Autority's,rues). . . '

Sttctly ConfidentialNot for Circulation

Subcmmittee Members and Staff Only

MS-PSI 000800

CR (MOORE CAPITAL) - Micrsoft total re equity swap I Moore CapitalPage 1 of2

Cox, Byron

From: Brennan, Danil (lED) (DanneI.BrennarOganslanley.com)Sent: Mony, August 09, 2041:59 PM

To: Thmas, Alan (lED)

Subjec: CRM (MOORE CAIT At) - Microsoft total retum equity swp I Mooe Capita

MORGAN STANLE CiS Call Reprt

FOR.INAL DISTBlIION ONLY

SUBJECT: Micft Lo retu equity swap I Moo Caiial

DATE: Aug 9200 TI: 8:00AM

AlIOR.: Daniel Bre

LOTION:

TYPE: Client Mareting (phone Out) CLASS: Fun Not

CLIEN: MOORE CAITALMOORE CAPITAL

CLEN A TIDEES---Michl Melnick, C101uii MOORE CAPITALWilia Scazo MOORE CAPITAL

. +12127827503+1 2127827356

MS ATTEES----Kathle Bo Mangin Di lEDael Bre Execuûve lEDShaun Fallon, Execuve Di lEDDavid Frost Vice Pn:idcn lERoy Mars, Exective Dir lEDSctt Ragovi Extive D PBRKAlan Thom, Execttve Dir lE

+1212761-9035+1212761-5578++ 212761-5700+1212761-5259-- 20 7425-68

+1 212762-5105+I 212 761-880S

CONFIDENL SECTON-----(A TrON: Confidenti inoraton should on be cote in accordnce with

the ncc-to1a priiple. On th MSDW employ (i) wh have a

legitile buines justification in c:ion with hi or he duto know th confdeiial inormtion an (ii) have no rens orduties thi an likel to g.ve ri to a con1ict of inte (or apihClf) or th mis of the inoration shod ha ii to iL

Matenal non-pblic informtion may not be counicate to sa, tring.

re and invetmt mangi:ent pennel with Cotrl Grup

1/181008

MS-IN 004375

MS-PS1001408


EXHBIT #27

CRM (MooRE CAPJT AL) - Micrsoft tota re eqty swap 1 Moore Capita

pæ-clea.)

Page 2 of2

Spoke wiih DiU Scazero who work on Moore's train de to iinain

usfulnes of the MSFT total retU equity swap for Moore Capita. Bilinformed me tht Morga Siaely an Moo Capital frcctly uat such

swap to øøimiie rClrn give offhoe stann and divvde wruldingis and that th isue are mostly taun ca of ou Prme Brokere

gr and Moore's bak offce Sctt Ragovin refer me 10 Roy Mar from

our Londn ficmg tem. who indicted tht he spoe v rently with TonyGallagr (Moore Dir or Opti~) and his BSsistat Sal Belcn on,amongs oth ite. the MSFT total retu sw. Since the st 10 enexection or th MSFT sw wil be difTert frm other divi tol

retu swaps we do with Moore. ilS a bit more complex As well give Moo, Capita trdes in an out v fruc:t1y, it miy Dot be beci for th

tr 10 be entc inlo. Give soe spl st auhe 10 th MSFrtr, Ala Thoma thought it may mak sens to pitc th MSFT trde

detals 10 some at th PM or trding side VB relyi on the oponsgr. I hive let Mik Melnick and Bil Scao awan of

the bac isses

and offer up i coveron with ou finacing team to clU in theisues Wil lok to se up a call with ou fincing te pedig IDterefrom Moore.

DISTRlIION----. Jon Blum (jblum)Kathcc Boa (b)Danel Bre (dbre)Mattew Devo (mdslvo)Shaim FaUan (falions)- ---~l1gan)David Frot (frtd)

Rob Karfsk (kaf)Ro Marns (rmart)Scot Ragovin (srag)Mar Ro (ma)Alan Thom (atomas)Raymond Tier (ry)

Call Report E-mail Subcñbc

MS-INT 004376

1/18/2008

Strct Confidential

Not for CirclationSubcommittee Members and Staff Only

MS-PSI 001409

Subject:

Penney, D. Jeffrey (l) C:Jeff.Penney~morganstanley.com;:

Thursday, July 22, 2004 8:34 AMepm c(pm~ms.com;:; dmds ~ds~ms.com;:; Boak, Kathleen (l) c(oak~ms.com;:

Portogalo, Richard (lD) "rport~ms.com;:; Lall, Steve (EFS) "lall~ms.com;:; fpgny

"fpgny~ms.com;:; fpgln "fpgln~ms.com;:; Kermisch, Jamie (mD) ".amiek~ms.com;:MSFT div timing

From:Sent:To:Cc:

Please note:This trade is more urgent than people are assuming. It should be traded NOW. Here's why:Altough the special is slated for November, we do NOT want to put on trades close to record date. Tax nsk increases dramatically.The trade should be put on well in advance ofthe record date.There is also a regular dividend in August, which presents a perfect opportunity to get positioned in adance ofthe speciaL.Furtermre, we don't want to trde on top of that record date, eiter. 'Bottom line, this is CURRENT BUSINESS, over the next 2-3 weeks. Please do not let clients become complacent.Finally, feedback from Goldman Sachs PB clients is that they have NOT heard from Goldman on this. We have first moveradantage and need to close.Regards,Jeff

Permanent Subcommittee on Investieations MS-PSI* 020727EXHIBIT #28

.. ---------_....- .....-_..._-- ..- - --_.__..- -.-.._._.._.__._-_. n'_' ---

. '._..n.'" ,.

,."",,,,"'."'-'-'--".' 'P." .....'...-_.'.'- . . ,....', . .'.' ,." ,'-. . '-~. : . .- '..'.

.-..,.."..-......._,..-,_..-:~_.._.._,--~_..':, ., . .'....:1 . ':.','... . \. ,"1. '-';.. ,', ."',,-,--,"'-'-'--'--- ...- .__. ..-..,_._.. -_... .-- --'_."-- ----------_..

_:"_~:_",_,__,:",',:"..""""'" ......-.t-,_......

I.

','

.; .

... ..'.' - .,'-". . . '. .._._~. ..

MSDW Eault Finance Servces I (Cavm) Umlted ("Caco")

CuBin. oorana Droure

It is the prï rensiIJi of any busine looking to enter transa on behalfof Cayc to ensre tht thes Oprag Proure are copleted with. Anytrnsacton that dos not coly with any of th temms of these OperatingProure represe a 'new stcbre' and requires a sign off from the supportareas liste in 5. below (or, where Indaaed, th spcic support are mentined).

General Resctons

1. Genraly, Cayco Is a thnly calis cony and canno absorb los.

Any transaon pro for Cayco mu tae this Into accnt, Includingwhere any profi or los on th trct will reside. The busines unitcollers and th le enti cotrllerr shuld be Invo In any suchprosas. 'Cayco should never hod lo stoc poitons. All series should be sold,loed or delivere out of Cayo Intra day.

2.

3. CaycmustnotentJntosteng .ariaemedlrecLwi,MSILJLstoc -nee to be let to MSIL, any stk should be lent to MSKG and MSKG should

onlen th stoc to MSIL An expton may be granted to this rue for, deliberte monetion trdes; In suc case, a sign off should be sought on a

case by ca ba.

Surlus ca in Cayc must not be lent to any affliate or enti in the USwit th approval of the Tax Deprt (becuse of s.956 (deemed'dividnd) prblems). Any suc cash may be le to MSIL, but only, for amaxmum of 36 days (otrwse thre are Interest withholding ta problems).

4.

If Cayc (i) is to ener In deritiv trnscton (Incuding options and

sws): or (Ii) is to have equit expre (i.e. thy are not delt flat),disptio should alys be obtaned from Law & Copliance, TaxDeprtent, Regulato Caitl oontroDers and the legl Enit controller.

Specic US Rebictions

5.

6. Cayc may sell stock positons to US Insttuonal invers, using MS&CO asagent and follo rule 158-6 procre.. .

7. Cayc may no ente Int stock lening tranions wi any US conterprtsunless tht coerprt is a regisred US broer-daler or bank lendng for its

ow accnt and as agent for its customrs.

8. Cayc may not purchase seriies from any persn In the US oter than a USbroker-dea or bak.

9. Cayc may no enter Into deritive tractions with any US persn.

10. Cayc ma,y not carr out any rao actvi with any US pers.


EXHIBIT #29

ï~

t

!;

_._-_.._~.._,,--_.~~_....."....._.__._..-_.",--,-_.._--'

I,

i

lI,i'"ti-,.l~if

ti,

ft

~

MS-PSI 020270

..~,---"-----,,-="_.'" ,....~..._,_._,:,,,,....,,.-:,,,,,,.~,,--""'" - i , ..~.."." . '..'.. .,,'.' .. , , .'..'.' - '.' . ;,"

:... .. ... ..-. "." ,-- . .. .. ....., ... ~.....-. .. ......- ...~...~_. ...., p'. ..' ...~~, .' _......,... .,.......... .._.'''' '.' .' ......_"_." #. . ...'.... ",.u ". .

,t

11. Ca may no sourc cotera from MSCO or fro any customer whoseacunt is ca at MSCO (dire or indire through MSIL).

12. Cayc may no lend US equis ag cash coter unles th cah Isequal to at le 200 of the vaue of the US equites or the borr providesCayc wit a "prmited purp" represtati.

13. Cayc may not ca ou any adry buiness.

14. Cayc may no inves in futres.

15. Cayc mu mantan it boks and recrds in acrd wit the US GAAPan in a fair an cot maner.

..

, '

. I,

L

I

¡

I

~_._-----,--_._----------_.__._,--~._-_._.~_._~----~_.,,-- - _._--,--~--_._---_.."'_.,'_._._--_._------_._-.-._~---_. ._---~-,--,~---

Strictly ConfidentialNot for Circulation

Subcommittee Members and Staff Only

5. :~~

lr~ii~.

t'i. ~

..¡:

t::~

..

MS-PSI 020271

- = Redacted by the Perment

Subcommittee on Investj¡rations

. "SANJAY MADAN,DEUTSCHE BANKSECURI"~MADAN(gbloomberg.net=-

To: Andrea LeunglNewYorkDBNAIDeuBatWDBNAcc:

Subject: SARAH WAS GOING TO LEAVE YOU A MESSAGE FROM ME.DETAILS ON

10/15100 04:12 PM

SARAH WAS GOING TO LEAVE YOU A MESSAGE FROM ME. DETAILS ON THEQUESTION IF IT HELPS-.. AT PHOENIX INVESTMENT PARTNERS OWNS 400,000 SHARES~E SPECIAL DIVIDEND PAYABLE IN MID NOV WILL CAUSE HIMACCOUNTING ISSUES. HE SAYS THEY WILL HAVE TO TREAT THE $3 DIV

AS A 'RETURN OF CAPITAL' WHICH WILL CAUSE THEM TO HAVE TO 'AMEND1099'S'. HE IS LOOKING FOR A WAY TO MAINTAIN EXPOSURE TO MSFT

BUT AVOID THE DIVIDEND PAYMENT. ARE YOU THE RIGHT GUY TO ASK ABOUT POSSIBLE DERIVATIVE SOLUTIONS? THANKS. KEITH

- -- -- - - -- -- ---- -- ----- --- - - ------- --- - -- - ------ -- -- ----- - ---- - ---- -------- - ---

This has been prepared s.olely f.or inf.ormati.onal purp.oses. It is not an .offer,recommendati.on or s.olicitatio~ t.o buy .or sell, n.or is it an official

-_____c.nf_i.ma,LioJL.o~_t.e.rms_~_l.-i._b.a.sß.cLo.f..rma-ti.oJl-gene.r.a,ll-y--"'.a..labi-e--.t-O-t--.e,----~~-public fr.om s.ources believed t.o be reliable. No representati.on is made that itis accurate or complete or that any returns indicated will be achieved.Changes t.o assumptions may have a material impact on any returns detailed.Past perf.ormance is n.ot indicative .of future returns. Price and availabilityare subject t.o change without n.otice. Additi.onal inf.ormati.on is available up.onrequest.


EXHIBIT #30DB-PSI 00000095

Strctly ConfidenUal-ol for Circulatin/Comitt Meb

Paul Busby~DBNA

09/16/2004 08:49 AM

To: JP MuirlNewYorkIBNAlDeuBa~DBNA~DEUBAINTcc: Andrea LeungIewYorkIBNAlDeuBa(§)DBNA. EPS-NA. Richard

Kennedy/NewYorkDBNAlDeuBa(gDBNA. Adam'YorklNewYorkIBNAleuBa~DBNA. Edwin '

Subject: Re: Extraordinaiy Dividend Rules and Microsoft One-Time Dividend~

FYI'-

We are in the process of determining hedge fund demand for "All In" enhancement to clients and our ownproprietary trades with Simon Pearson. We'll be hopefully sitting down as a group in the next week tooutlne our plan of action on 70% dividend liabilty underlying.

Paul BusbyDirector 'Global Equity Prime ServicesSecurities LendingTel 2122505766

JP Muir(gDBNA

JP Muir~DBNA

----097l672Ultll8:3TA"M

'ro: EPS-NA, Richard Kennedy/NewYorkDBNAlDeuBa(§DBNA.paul.busby(gdb.com...ndr.eungLwY-D.kBI'AlileuBa(gDBNA-

cc:Subject: Extraordinaiy Dividend Rules and -- - One-Time.Dividend

perhaps useful info....- Forwrded by JP Muir/NewYorkDBNAlDeuBa on 09/16/2004 08:33 AM-

. .:EmstYoung.NYFSO~ey.com=-

09/1412004 05:21 PMPlease respond toErnstYoung.NYFSO

To: JP MuirlNewYorkBNAlDeuBa(gDBNAcc:

Subject Exlraordinaiy Dividend Rules and - ~ One-Time Dividend

As expected, the "qualified dividendn rules enacted last year have affected more than just the taxrate applicable to many dividends. The reduced tax rate on qualified dividends also hasencouraged corporations to maintain or increase their dividend payments to investors.

Please click here to read more about Howard Leventhal's and Joe Bianco's comments.

Please click here to update your personal profile.

Please click here to refer a colleague to receive the Ernst & Young Hedge Fund Tax Aler

Important commercial &-mail notice:

. This e-mail may constitute an advertisement or solicitation under US. law, if its primary purpose is toadvertise or promnte Ernt & Young LLPs products or services. Our pricipal postal address is 5 TimesSquare, New York. NY IOO36~

. Please click here to remove this ~mail addres úom the subscription list for this alert


ariclly Confidential-Not for CirculatiCommittee MenEXHIBIT #31 OB-PSI 0000008

. Use the link below to opt-out if you would prefer not to receive any advertising or promotional !)mail fromErnt & Young LLP (except for Erst & Young Online and the ey.com website, which trck ~mailpreference though a separate proces). Your e-mail address wil be immediately removed from our centralmailing list for newsletters and aler and all e-maiJs from Ernst & Young LLP designated as advertising orpromotional wil be automatically blocked as soon as necessry modifications to our email system arecomplete.

Click here to remove yourself from all Ernst & Young commercial emaIls'. 'The information contained in this message may be privileged and confidential and protected fromdisclosure. If the reader of this message is n'ot the intended recipient, or an employee or agentresponsible for delivering ths message to the intended recipient, you are hereby notified that anydissemination, distribution or copying of ths communication is strictlý prohibited If you have

received this communication in err, please notify us immediately by replying to the message

and deleting it from your computer. Thari you.

trcUy Confidential-Not for Circulation/Comiltee Members and Start OnlyDB-PSI 00000085

Piepaaed by Andy Pettit, Global Pioduct Development

PROJECT: DBIL Rehypothecation: U.S. Record Date Availabilty Projection

Conference CallTuesday, Februar 6,2007Attendees:Laurence Pilon (London)

Simon Pearson (London)Don Copans (N)

SuiMin Zhang (NAndy Pettit (N

Background: DBIL (Jersey) executes "blind" rehypothecation trades with U.S. PBclients for dividend capture puroses that run over record dates.

lssue: PBC1ients recallUS-:wviôe-- stocK pnor to record âãte:--------'---------'--------'-_u

Goal: To identify clients that are likely to reduce their eligible U.S. stock positions priorto record date.

Current Process: SuiMin sends file 10 days prior to record date of holdings of the

identified U.S. equities by client alias (client is not disclosed).

Working Solution: Utilizing CPort data, SuiMin wil retrieve the 10 days prior to thelast two record dates, going back 6 months, of the U.S. dividend stocks identified, of the

positions held by PB client aliases. Priority order will be those U.S. stocks going recordin the next thirty days. This data wil be sent to Simon Pearson for analysis.

Next Steps:1) Deliver historical U.S. dividend stock holdings report to Simon Pearson,2) Simon wil analyze and determine if the data is meaningfuL.3) PHASE I - If data has value, SuiMin wil construct process to deliver historical

U.S. dividend stock holdings history report by client alias 10 days prior to currentrecord date for each applicable issue.

4) PHASE II - Develop correlation analysis by client alias by issue oftradingloldings trends.

Next Follow-up Meeting: Tuesday, Februar 13, 2007


Strictly Confidential--Not for Circulation/Committee MerrEXHIBIT #32

DB-PSI 00004272

ii.)gc i iir-Appli¡:lion ID:

l)rCtducl Area:c- Aßio4293-1~

Prime Scr\'ie,c,!;

New l'n,duct Applicaiion

Rcqllesl Dale:

Proouc! :;amc:

Status:: Approved Requestor:

:'7 J::ii 2005

DDIL See Lendiiic ' SHStructure .'Nai¡¡:;ha M~uuniJ\g

Application Fom) fiir em

SECTION I. ßASICDETAILS

ücllÚ'ãl

---~-_._._~--"'''--~------- " --,--~.,-~~- ~-----"--'- - "--~_.,----_.- _.- --~-----------_.._----~-------------_......"","'------ --,---_._..,._----~..__.,,_.._..._-"-

Reque;;tM Kame: Nntashn Manning

lkkgiitt:. Requesior Name: Natasho M:uining

-- Requestor Location: Channel Islands

Business Sponsor:

fÜ'quircd Start U:¡te:

Simoii-Gd Pc arson

27 .Ian 20(\5

Origmil Requil'edSlari Dale:

Bii~in.:s" Line

Group Division: CIB

Hlliiincs" Divv!iion: Global Markets

BuslIess Area: OM Equily

I'rodud An:¡i: Prime Services

nc~k/Dert: Off5hor~ CirNJp BankingDivision-

I....


EXHIBIT #33 DB-PSI 00007472'ictly Confidential - Not for Circulation/CommittE

Page ~ ùr-NP:\ C¡¡c:gory

NPA Categury: Enliancemenl Eiih:mccmcnllo: :\ B I (l21)J-~C,Llril ic~Lending/Bon-owing in DBJL

Suppurt Groups Contacied

DU Ldo Global Equities;DB Ldn Prime )Brokemgr:;'rax:C()iitn)lIng;Op~r:llioJ1;;:Crcdit;Legal:Trc':H¡lI' . ::lri::ldysigned off by mail in 01:12004

SECTION 2. PRODUCT DA T:\

P 11),IIICt NàI~ an.d DescriptioiiProduct Name; DBTi Søc Lending ¡ SEF

StruciureT1lis is ¡¡n 'ahv~tíve, strucliire 10 ihe SeC1rit:e~ Lending tnulsnctiolls appr.ovcd loi'DBIL. Tlus request tor approval wil e;;enti~lJy be for only one 1i.11f of the: prcHOII51 y

signed offsiruture iiltho\igb we reqi~( that everyone fe-sign tbis NP A ,iiist Ii)formalise matters. DBIL wil borrow US semritics from an institutional in\'C5Ior aswell liS enteng into the following Inu\Sndions - sale of equity 10 (hc market, urc

- .,'---_._,-_.--~' - ._,.-..~_.- - --deii\~rì~\"'eí1JtOln)rf()rWa1'd;-Thi:$tcutitîclci\ingraiisacllolll:ills undcTIIK:---._._-_..'

existing 1\rr'A. The Ddditional approvnl i¡) sought for the derivativc componi.l or !h~tr3JiSiiction ollJy. The iniroductioii urnBIL to ihe Securities Lending and OTederiv1Iii"c ciwirt'nl1CIII will enhance cxisti/1~ DB Group acihiiy in (his markcr¡¡b::liistitutiun::l Clle(llr.çol1nterp..y cre-dit approval will be driven by rhL SeciilÌries.Looding Marketing Team. Global Equilic5. but will also require approval by theOffsliore Group Creit Committee wJthin DUJL. Jersey 'froni offc.e actÍ\'itics wil beundertakim by th Whi;lesnle Desk witlln,lhc Jersey Banking Division. DBlL Jerseywil opl:lU a Prme Brokerage account wiih DB London to faciliiale the transactjun.The oper:)tion ofthis, aocount wiI be covered by PB documentaiion b~twccrr DBILJer.s)' ûnd DB Londn. BAck Offce functions wil be faciliimeu vi" ihe PrimeBrokerage OCCOUIl. Trade support Dud nliddl.c offce fiinctions wHl be perfbnncd by

DB London under an iigreed Sf-A. Plell$e see attadimcnt ror detailed pi'MllclSTructurè .

Product Description:

-

Proi1uc:1 (hs¡,;fication

Producl Typc: STRiX.-::UREDTRA NSAcrroNS

A..~ct Cbs;;: Equity

b~change DeliiilsExchange/OTC: OTC E'\chaiigc Name:

)\'1 uluiityMaximum MatUrity: I Y c;ir

Undedyiiig InclexUnóerlying ImJe.'\:

CommoditiesCnminodiiies:

ClJt1"Cl1cie,g

C'ul'iiIlcies: USD

SECTION 3. LOCATION DATA

- Legal Eutity loç;;\Íolls

Pnnmry Lega. Entity Locat;on:Chanoel J$lands Secuiid¡¡y Le,eiìiioii:

,..~..........'r..._- _:_l.. :...... .. ...... .... . _.-' .

icUy Confidential - Not for Circulation/Committee Members and Staff Only DB-PSI 00007473

Page '~ ol-,Trading Location:;

/'i;mar¡ Proposed Locatiun: Channel Island::

:\dtlilJonal Proposed Locations:Lol\clon Existing Location,: London. Fmnkful1. ~i.\\'York, Sydney, Tnkyi-, nSl

Client Target GroupCus;;umer Type: Finniicinl I11Siitut iotls Customer Loc,aaions: V;Hiou.~

SiileSfOrigina1 ion L()cation~S.ilc.Origination Loclltiotls:London

1m Legal EntityOHering ProductDeutsche Dank Intenniition::l Umited;Dciitadil: B¡¡k AG LI)))ÙOn Prime ßrokcrag.e;Dculsche ß;;iik AG London

SECTION 4. MOOEL & OPERA TlONAL 'DA TA

1.1odd & Pricing lnfonnatiön

Model Name: Not applicable Piicing. Sources:

Systems Infonnaiion" n----.'-FronCOttlcc Systems: -îT5cira"'uvIS--- _.

----,-----Sc~iilcment Systems: Globnl Tesp;;-r -

,.-~,--,--,--,~,,,---,,,-,-,,-,--"-'---'--"--""-"'-~

SECTION :5. BUSINESS CASE- Rl1!: mess: C3!;Trrmsacùòrr Volume: i 00 per month Re\'eiiuc: Eur i Om

SEcrrON 6. ATTACHMENTS

:'\ I is.chnncl1ts

(§ PBIL See Li:nding i)il~::tive slnncrurc (/'P,A \) (j d- '"d,::o.dDt: \~e ~ i?~ )

-l""","'~'I""."'''''#o'.~_a-__.....JL .......ni",..i. " ..~_... .

;trictly Confidential - Not for Circulation/Committee Members and Staff Only DB-PSI 00007474

-neustche Bank lllterna,tJon¡¡l LimitM ("DBIL") IIQuity Fiimnce iiltern:ttlvcstructurE:

R..tinnBl~The: reuiremeni lroOl Stf to bDrDCS$ the U~ of one of the ott"£bore group has bcen pnwini: (iI'"' III IC.\$I .'fi.1I yealSand GEPS or e\"tJI eqLiilics 8~ a dh'iiiøøi hac a di$iinc~ di~¡'i\iy trom illis.

Bii,idly speiidris. ihen:::: ~iibsiaitial US equities be1d OflOrln\'hidl arc cùiisj!l~nll)" iiicludcd in "ii,.l"1pric:ng,(baskcts thaI would be boowed on an ~i:lusive basis fDr ii Witbii ûûe oi'cr.li "'uiiÎ"$ bu,n'''&I.We rice currntly 1101 tDiiipeÙlh'c iii tJia pricing iii InY boiro\\ of thost LIS equities reqiiires; a di:duciiunii Jia~'iiicni of wid,lliilding w. 01) ~\ib~ijluic pa)'inents eqinlllO I ~% of any dividend, Oiir crnnpdiii)i" donOl hiyc In accollil fur ils W: (gi.en Some oriljeir oßßrc "'Inii~s) wwd caii tllcrCfNG arrer e 1),,,.:

IIg¡.'fCsivc pri~ It) Icndi..r, A, ~on.OS tr~al)' cntily,i~ ullrocti,.cll Ibe Dlioiinl of\\hhbaldini¡ Uix reqiiirei1.t' be deddcied is redn.:ed 10 0% (pfo..ding.çertåin 'aUerla::n: ii~ii iberelb~ 3l1o\\ing I)S t~ bi in')!'.:cOln¡Yiili\'o: wlù) our pricing,

.\ IIr.rI1Bth'L' SITueillr~

Ofihore1r.".t.1I1ti..

--I-"----~DBt

--".~- _._~--,..".'''-'--'---'''-'-- --~._-_._-,.,,~_.~.---,--,"-_."'--~'-"'._'-'--""---~ -------_u ---,----

2

.'--Marl;

2

¡\ ßDn-lIS Ueaiy rtdi:iil enti,y' f'th lender") bold US cciuiûe,;, Pari of it: nummJ eoii,~~ lIrbusiræss is 10 ie ¡hese ssocks 10 ilie marei, JJ lend" DBIL . bos).ei ("ibe bask!:/") 01" )ii.:h

rqlli!Îèó.

In lieu offl", buei DBIL, pledges conøtÇr1 ttjuDllCI rhe \"¡hie of ~ic siock .3 smaJI "irr~,ill ilÀ1~prcmiuøi oreollalC ii .,lalld3il iii the ieeer: securitis lending nt:ei). The cOIIM~rol \\could

be, ehba- cah (USD or aiioier liijoT ciiini:y.l or 01 debt '(auld lit G Ii) l.$ímull::ßetlLl9Iy to I end J abo~'e DßlL wold sell tlle baskct,io iJ)e makei fpw!J,ibiy ore UKbroker marel) in ¡iOl ofUSD c/lsh lDVI).As a hccge to 3 ~boe citller:

D:BIL bu~ a çall,oppJo £roni DDL And selù ø I'ul ui1tiøn 10 DBL (wiih Ii maTurityøiiywhm: bb"'Ci:l 7 days and-4 days). Tbb opliOlj would be physicnll)' ~eiil~ii ~j\'ingJ)~IL tbe righuo bu)', ihc sbu~s wiih a 5tríJ sligbl1)' 10We-f ¡boo'tl,.. n:fcrencC' prico:,DPPh stlc w.ould be equa.1,lhe rc:llltÌDg f'mium ah,"11)1I payable by DJJIL (\I DBI.,

DBlLellii:/' ¡,litO:! fiirw!lnl (oCnin ph~'sk"liiy ~l1led)::i:rteing: 10 bu~ ili~ 511~m b~o: at::fiinnird pDce. aga,íii t/er~ would (111). be a p:)'n~ni úOOIDBJL i., DBl

;\

4

OR

Th.. rC11 IS 1101 part oftll~ NPA bu. cUIlpletiog tlpiclLIfOrwhal we miiy dci (0 =11 A i)l)~itiYe IÏnnntlngreium

6

,i .-tM~rkell ~- 1",1itulbn

ictly Confidential - Not for Circulation/Committee Members and Staff Only DB-PSI 00007475

-

50 Iiidepidonlly. 05 Lodon BTaiicb("i)Bi;')bn)'S n~"\-ap 011 hiiii!;¡r b:~kclin ierrn~ o¡"iiiiniiiiiy!too .~nsiitii¡jt)n from oiie i.f ¡IS huiiiiiiioiial Cli~nls (Iniiiik relmionships). Th" ICrnl of rheswap would inirr tlwl urihe oplÌ(l1\ òr forward lloo\'c £rnnging:rr(lm 1 wttk IQ 40 d::rsi:'u iimption we could nnk~, would bb ¡hai t'lui ii"liluMn.iI clitnl bur'S Sh~TC~ from ihe nmrk~!to hedge Ihis ~W;¡II

6

Moi'to delnll..iJ C::11 IIiid rrll;Hend i-,OIYS

'(11 \risiiciiim is lairl~' sìmpieìn,IIJlU~ :aiid all.:mpliculil\DS urise froni siandiiid ~'IIMMcDl, ¡;~hno\\sand nni.ini; ..Ilultml. IXscrlbc b~lo\V ¡a some of the v::riatioi's and prJllims th~t cc pccur iiml how \\'c

propos~ 10 ~eal wJJh thm:

Oil lrade .tate palL wou\d IIIT~ni;e for'lb IOU .)fa llskcl ofiis r.""úks,nllc, b3~ef") In 3 chys iinte (rhi~

coillCkks wiib the sl;andii US ~ulcnl çyele) rtO th IcndC. C'olbiennJ wil he required as 1101'" I iii

~cp liibrwt mmd ihi: i:.¡uld be, in diirelCllt rorm~,

- -----_.._.- ----,-_.__._,_.,~._-----C4Ju;I)l/lør"I.--Il~.piiÐU -,------------ ,----,--

SI:.ndllld c::h Ir2lsaclil) ~i: DVI' (rlell\'c-r \'er~iis, )I)omem) inaiiin:¡ ,I,aiihe c;,d, CI,il:,I"",! "nrlih~biikel should muve::l the- Sle iime. The flcc\\ \Io'iilrlbe li fl'lI()w,:

--",---",-'-"..""'-----"'."-'- .. _..- -_...._~_.,-_.-_.._..- -

- &ep.f I .,iid 2i, Tr.i: dalt ("ID"), agreeial ó1lbi: Io:w lakes pIiie.:

ii. Seiilem.enn date,("SD")¡ DBIL n:..ir'~ irrir..-day funding 10 pled¡;c,croh conine,,,' :" ifie ~nJt:f, imii,borro1\' tllis ciuh ißtjß.day ffClni D.lL

¡ii. The cash I1nd stock: movc Qiiht same, tinic le,ning DBJL lung stoi: :ud the lconder \OIg rosh

SUps ;I Qiid lIV. -Siniulli.ncollsly (to (i) above) (10 TD DBU. e7.CXUle.S' ssiI It I ihe inarkcl~,¡ broker) ti a T .¡ ) ha~l",

D81L also enier inlo'1 PUL't¡¡n or rwd- wiih DBL usjDg,lhe ul,C: pnc~ M th rcrcr~i:e price

,'. On $D (oner stes I .i,d 2 Ji/ppen). nBIL r-ivc Biock fr\i: (ìi,! D!:'C and 11~e Ihi, ii) ~t!1I J~ ih. .

DVl siiie Iri:ciion. DBBi, Nle1\'c U&D ciih.

,.j, DI~il.1. iJlis long ca t( renim ih" iaira.;ay fuiidins.frrllt DBL

$eell'!/lCm Jüils . SII? J 10 .s J"teFtiOlSteps I ¡nd 2 mut hoppeD IDgccr as ihe ~oIiiig point occur with ihe iilrii-dy liinding from DRI.movinii 10 DBIl. irtbc mir..dny ,Ioli sdtles tnd 1Ie. DVl $Clllennl wiih lender is not pm$1ò!e on i'ani)l-(he ba.~kii (e.i:. some stocb li not available) ihen any e¡e~i: ca.h should lie retm.t.d 10 DßL. If it is Il10latc 10 rclnrr e""sh 10 DIlL. 'lhttllOO31r0i' ,will be .w~i. In 1111: CIl'I iir~ioel IIQI settling iiito Df.HL froßJ ibekndcr. 111~',ule $IIld be, partially CIDce11e iid tbc opiion:fwd amende 10 1he ncw q\lantiij~. I rihis "iin1101 be done fdue 10 liining iii ihe IIy) iJen :: fijlio the nmki-.r will Otcur, T..øhnÍCl1y DBIL arc now in;~POSilioll 10 c!nim iDtcree (reom tbe Iorokcr Cao ltçç"iiroalC t!c inlcn~sl accruul Innbbded in iJe opiin.ii:; ir\vd),

Ifbolh sleps 1 uod 2 llappm ii pehaps t!c)' iake place 100 !aloe during the SD for 3 ro seiik. DBII. w¡U beloiig sloek and 5lwrt the,intra-dy casb fundine 10 DeL. .As pan o(DBIL.',rgenorøJ biilnc.t-t ii h~sconsisi,:i\! "III.\l11..1in8 loall 10 P81.. Wt ~ rclYÚlg OD legal fiShl or offse for 1I)' shon ca~h to '''''Ir:,:ig::imll'xisiinii loans. If this bappcns I:ie ai nigh I, OVMlighl JUndlo!: ¡u'ihis instance sttoiiklllc l"s:iblcunder the: amll¡¡i:mrJii Dai hil ",;111 NY. Agaiii, ¡rpolaibJo the, sole rllid ('¡¡lion~/fwd $!lOulrl be ~'ßriiil I)i:::.;elled. if nol the $Ile will ffll le~viiig DBIl iii Lhe: same poiiioii (1111S IS quile nó::l in ill:: equiiiesiiartel). Any coSt of f~ilure will be bou~ &,.IhClreeevvl parlÍ¡ 10 the fail. ThÏ! wil be inler~sl .:om

p",nar iJ~' :IS ¡k~'Cribe¡/ aboe

--

r¡cUy Confidential - Not for Circulation/Committee Members and Staff Only DB-PSI 00007476

-~t.p J i~ LH'P an.! ihe: siock :ud cii,ll mDt"i)li)IU; OOcur::r 1111 ~Uß1C un.::, As th~~c rei)' m !he nmr!:\"~",k~r iß\'olvci! an)" fail wouldpui us back in 1110' posilinß ::bovc.

Cash 1",lIlllt!rlll- "n".intlThe unwind in ¡"verse should 00'" as lollows:

.\H,/'f l (lml:Ji, On SD oftllc icrnn uMe ofiJiepiiliG111 minus 3 biL~ines~ da)t~ (noully tlie Valn::!;on dalc "VO" fnr

me swaps iii steps 5 ii) b or indeed IIc VD roi tbe Ofonslf\,'ii¡ OBI/. ""mid buy ;h::rc (rom DBL alibe eien:i,c pike of iic optiODSii'd, DVP IIbiaslllSD CAsh,

ii. D811. l"QIIC.st iiiirn-oy fuiidiug flDrn DBLln,orc 10 Genic the 1JVP purçb.i.c:m. The shares ~nd ca.th 010\'e DVP k:,'int DalL long stix:l; aiid shorl imra.d;;y funding tD DI:tL

Smx J amI 2it:, On SD ot"111 lèf date ITnu.3 days DBII. wiU ngree \,:jih tlii lencler 10 rcun1 shiiro~ in lieu ,)ril,,'

i:lhii.nl (to coincide wilh (ii) abo\'e)

\" SD, tbe ..Iiire¡: :mdcooh 1I11)\'a DVl' uil\"inding ihe; 10311 li::iisa~liQn, This leavcs I)Bll ¡"iig cash !lndshan inira-day iiJldine La OaL

vi. DBll rctunis ih~ ¡nt~-~ay funding !o DBL

__,~I!iiltmcr. jj1iI.v "_SlllpS J,mß L11J''ÏJ --- ----_.._----'--

,-- SI,'I'.s 3 (1I,(j "1\$ the,se steps rely Qn till: DB1. pllchn1e Iti:iiinl. if this fnii~ nBIL Mil N left \Viill tl inlrn.da)' futlint.froin Dßl. Depending on ihe ti~ 0.£ day QriJle fail \hi/( m:iy Iic ("'umcd lU DBL before the ffniil dc/idE,,\,foi doily funding or ¡""cpt by ircii~ury i7UI or the llusir03 (lI '(kso:nbed abcvc) ,

-~._---_....__..__.,....- - -- -_. - -_.._.._~_._- --_._-------------_.._----_..._--_...._----_._.._.......-

- ~I.:p.¡ J iJlUl !.If xlcps) .0011,4 (.illI~J7 ihe,abov.e wil hiiJl. If ih)' seiilc ilieu D81L will be loiig.stnck and ;:oii iiiirJ-doy casl Iv DBL. In ihls eiise; DÐl1 wil rely 01 Icgal riibi'ofoffscl against exsting loans, This ..;11 also b~ilie C:I"ö if SlCI'S I and 2 rail (as ihcy are DVP),

IVon-c.r../r ""/IU/drll( - ;n(:i!plilJnWii.,it l\oD.c::~h ~oUail"f::1 is icq'1= b)' ,h~ lender scti!colienl of rbc e(tiia!~",i lIormlly ml:..~ plsce onehuSIi1CSS ci)' befor scttlcrot of Ihe.loc:c I"prry~), In ihls C3W iJle flow would be AS foll(!'n:

SI(:jJ.f 110 "j, Tn,l\.lrC\-mcnl of the IOU1lak~ plac (again SO is TD + ,1 m)òs)

ii, SD ni¡nus WSD - J" or TD + 2). DDIL reqtiiie nOD-~~sh e&il.knii ("CI ì)") \Vh¡cli (bey '!Ie! lìom aTepo with .!mL

iii. DBIL ¡nepa)' Ihe (i10 10 tbe Ii:iid~r on SD - I

iv, SD tÌle kim.-r gives Slok.IO DBrt (against the pie~)"mcm orGIO)t', 01JJ, u~c the slock'lO $êiiie DVP with ihe iniir)¡cl bro~er, TJ1 ...~II i¡ûcd IS used In saiis!y the, rqXl

wiih DBl

In i.is .vrtcxi the repo G 10 is del¡ve Me w.y befor the cash SCltlç which implies 111\ tlffsei ot cxpnSllrcor agaiiist exiuiiii; loans ITdc by DBIL to DBi-. The repo ,cXpOSIl: Wil1l'~vcr exceed the ln8n~¡)\lIs~ndinii.

Si!i:lemenilnl/,ç - sleps J 10,'; 11lc~pli(¡nIftllç DBL rcpo fai!: IIndDBU. i!'noticoive Illc,OIO (SD - I) then ibe w!iolc trlUls;L"tion wil fnil asDBIL QJ 1)01 prepay and get the $IOcl on SD. .'11 p¡¡tjes 5bDuJd be lI~i althoug DBn. may need 10 cidlC:i:.~le;;d ~cltlef\ienn or ihe $iile 10 the market brol: an !b plll!Ç¡1! racliig bilL (10 ~cromodnie lIic exltaday SCllcnn~nl cycle), If ihì. is nilt possible b Dlrrkct rnil wil OCQ.i and we are biick 10 the silUaíiondcse4"ik¡i ¡,hove or slUlldad n'lrkel interer cl::in15,

.-

tnctly Confidential - Not for Circulation/Committee Members and Staff Only DB-PSI 00007477

-llDßJt receive th~ GW (1011 OllL an DBll lie nOC able Ii) pn~i il 011 10 the Iccocr then tb: whok1T1::~.etion \Vii fail DBL in iJis !1I5tance wil have pTtpid ihe: i: io:: day earier iìi:a rc.quirtd li)l' :CIlia!~iicnnt;;i of die sl¡¡~:. ,,'hid1 ",m us~ the GlTs::! d(¡¡il-ed ;:in'(, The pùsiiiuH ",¡¡ii t:Xtl'ndiiig Icrm~ nf rh.:snh: :u:d "ptioni; is ihe same OR 111 iiiaiicc fail aoo inltr~l cI~il)s is t~ snme.

Ifilt" GIO nukes ii 10 i~ lender ,1)1) - i, rbe firsi leg il;lleolll.. f~ili. iii,: sloe" (Comiflg h1 Daii un SO. Iiiih,s r"se tho situarion is i.x¡,cily :: describe "bø\'~,

If (he G 1 () .cnles wiib ttx: IcndCT SD - J. ihe Sh.cL is ¡;:IS.~i: 10 DI~IL by ihe Icndu but can nol be ociikilivthe l1arht broker 11,,:11 the po~iii,in is .\iso 39 aoovc.

Nll: where prepy lake' pl&.c~ a cly t¡)O i:vly the consequence is;ii,i an d1r- cI"~,,s worth of crroil risk iinihe 1'"'Pai.1 col131ennl (::iid prob:bly::n c:xtension of UIC rcpl ll)' n d.y).

:liO/l-fIJ.th cOIIDll!rul-llnl#l"d1l~ iig~in is l~irJy sin\pll ;¡ followr l::hhoii¡¡h ih..re m3)' be a n:quireinl.:nllo ~P')Slp.y" ie, pro\'idc.:llalcrJI II! the lender for 3n c,~tn cby - tbi~ i5 iwt D In:i¡ui:nl K-qllirennt.'1i), hi rc\'ersi~ N~cr:

---- ----"--------'----"'-----"---- - -

S''1)$ j ,'.vil .¡ ,l. On Vi) of ihe optiuni..r",'d DOIJ. huy f:bll liom t~c ((ei~ ~I th e;;c!£l;; P!ll-()(!IIi:_()P--!.!is~"=_._--

-----'--------(5,\fJi agln5t (fSb "S(1¡i DBll miui!1 ¡iura-day fundiiig from DBJllo sciill: t.he D\'P purch;;~riii, The i;::i.s nnd cash move DVP I~\'ing DBIL loj,~ slOk ""d sl;or~ imra-do¡- nmó;lIg 10 DBL

-_..",-,.~._..,_._.,.,~-_._- - --~ _._------------,...._--

".SIi.11S / nllil 2iv', On rhe ssmc V1) DBIL wil ::¡¡n: ,,'iih ¡he.. lendc.r die rCI1Im Qi tiie ~II!!= in liiii Gr coUole",1 (10

cj)¡ncíde wiih !i) "llo\.e';\" On SD ih'c si.:.ro. ,.ill IJ\VC Fop (i~ ibe lerrdi:r h::s G I U iilr,;oody.l. eiÙlcr thc'lendcr will "~,turn ih~ G!!)

$anne ¡Jay \Lr ibbre will be A poSIp3)' for oiie d,I),"I, If the 010 is retlrm:d i;3)~,;tay then iJlt l'Cpo .nds::t I1li, poìnt :I\d ihe GICi i. rC'lIlI~d rO! l.SI)

c..tj. the c;h s:ii¡rying the intra (undinglflhe-(lIO i~ returned tile following dny' ihen tb~ r~po wi1

cnd d3)' niiçr æ;wdl.

St1/ClltlfljÎii/:r- Slt! I In 4 ih,willI f the purdl3SC liom DBL tòils ihen DßIL ..'ill Iiavc 11 skHk 10 rc:rn ànd'tlle 'Wool. 10311 and'repo wwllI1co:l io'~ extttidi: by one more doy, OBIL wil be tcf \yith.jnlr.day funding fl'm DBL aiid ¡J.pennlini;upon ille tunc nr (L1) either ihíl ..ii be rc:rum.i: ni swcplli'Ónn ihe iiusiros by tr(0101)'.

II ihe p'irehac ,;Ulcd Ulcn OBll wil be InngsIDk and shpi1 iiiiii.øur c~sh. If notbin¡¡,ehc ~en1e~ '~nthe!ò cash will olf.o; ¡¡g~insr ex,;iiin¡¡ loans ~ dc.crik ..bmi.,

If the $ic..k seiiles back to the lender nml DBIL da"m rereive ihi! (i 10 tnen die pcsiiji:JIIS the s:~ ii~nhove iillhousli iu Uii. C3SO: iite)'II:we 1111 stock.

,-

3trictly Conffdential - Not for Circulation/Committee Members and Staff Only DB-PSI 00007478

,t'

¡":',';- .,. ''''i.' '. ." :,ë:- ~'g~j~òf:3

::"', ;;..f:1 ,.,'::,:.i. '..0 ,; ~. , "

~ ~ ~,

'-"~~'~~:,:,,".... .~,.:""'. ',- '.~~~;; , ~", '14;~~1

";,,, ¿'., ,:,. ", ""~,~;;f~i,";;;.:~,~,:,J_'",,':,:,,',:,,~,'.,,~,'J:':,;¡:"~:"'",..."i~""",.,."""

,:,~~t~j~~';;;~~~ 'd : - .,

"';::;':~:~ir~l~¡~r.J'". .. ! . ,,_1"-

,., '..

I':. ' ..

q '~~ 1 ,;,' : ,i.~

~PPltC¡Ù:iÐ~~: ~:'PIdiic À,~~";,d

.,

~,~ . . '" , - . ', :. . -;, ..~',~. . ., "",,,".'

$:tatus:'-..',

:,'

, , ,''''T' i "e,":, . , . '.'

';0, ':' ;" ~\,~! ' II

¡,~., ; ,i,:,:

..,:',.''',

:: '" ",'::,.::.'..:'\:

,!,¡, : 1'1-&'"

GCI1crdJ:Ä~:i::'

. ~, " '..""

ii':";:¡ . ';, . i~

'~ ,.¡, l ~

,I., , , " !: ~, :i;:..tl': ,;',;:'~ftt;~ ~

" ''; \'r.~', j':, I ~; , 'i,!-:.'" '

,'" .. ' i ~l " ~.I" 'I --: '.'~..'. ' t,,' ""

'. ' ., 1"""

..,'':f: ;;~~; '::

:;:~:;/:. ~.;"

,'i;- ..

::1,f ,~.'!' ,I.,., I' '- """" "-' I' ",;'! -' ": ;:,'.

, ,::r

,:.::J!...," ".

,~--.' ,....,.,-' t"" - _.__._..._". .-.: ,:"' -: ':,!~: " J

--- -_._..-.-_._~_..__..'-

, ,

; ",' l\)'..,;

'.,: :.\ ¡~~~, "'''¡: " .,

, ~ ~': "

i"" . :,,"". ;" """ "

Bus'ii:~ss $11011.,*;; ;.";

" , ,:"!

:=::~,:,:i::~,~~:i",~;!~'"., '. , . , I ' ~ ,~

, ' ~.;~.;~~'(~/::'~b~~:;(~;¡:f:"/2,f:L;¡; mit~;,, ':: i, ' , '-' .:', ~, ' .: ,.,"' J1'!"¡¡"".o:,", ~':'~,';i~,','~,.~,:~.'7:',"l.,',_:l-~.~'¡;.~'

, : '~~ f:I~:: ..;.. : "',. ' ... ,- ~ -,.. i:.,:" .' ''"

!¡"j.." .. " " ""

" ;~

.."":,7;,',';=

,'. ',j ¡.~. '. . . . "~/~::~::t':; ..

'.

,.; '~', ,.-.'E, :.- ¡

g~hiIiè5.5, Line""" .. , ~ lt :.,'.';,"", i';'" ,~, , ,,"". , ~. ,. , , ., . ,:,',.~,:. ~ :' ~: ~ '", :

~ ' I'..'~" '!Ii ¡ ':.';'. .' . ',,"..'. !'

~ 1;_"':,' i ',' ~ , ;1'1. ,1"..; '....ii ..'".'r.

"\.:".'.1" ".,-

,1.111'.' l ~ " ,:., ;":~! ; ~~'

, ! ~ .. :'., ..

:.':,:-:', . ~ '" .' :,'"

'.'-.,.'-..'

,,; 'W

::~r:f~tG"'2'~'~~.i!~r,,: ,".. '" ",~:?':::' '::,:,",,~,~',:.G'~"~l;:.t,'~sst,~,:n~,~.~,t.~,-'~,:t,¡.'~:'~"!F,'; , . , ','it., "~j.::~"" ,;'

~Ii' .'-'J V' ,,',I: ,~,;;' ~".i~.~,~: ; l :,~,. , ,'t' '. :':17~ ":..,::;i,:, '::~"1~,':!:;;,~: :',' '.:,;:,i:'~:i..::.,i-;' "i;~i:.,,:,~, ~,.' "',

, . , ,;r-~:jj;~:;:':~j;"~d~)~".,,,.:.,~:, '", ,.j ~ .,':~,

h"P'CI.PA;~¡2,~t¡~2~J~~~~¡¡t~~~ "');~:i~~:ö~'" ""~h""

.'''..

;trictly Confidential~ot for Circulation/Committee /I Permanent Subcommittee on Investieations DB-PSI 00000047

EXHIBIT #34

¡ .. ~

"?g~e 2 of 3, ~ :

;',... ,

': ;:: ~'~'l '.~ ;;~'.' . t;:, ~. J'.

" ", , ,.:

'."

.~I'"

'. I.. . ~..' :':~.'J:~.~.~è~~"'.. :.1. ; '1" il'~ : ., , Ð'f,,;'N P A Gaii:gory

,,"L '.J i','

.. ¡. . ~ '.I!'.'"''

'.,'1 F.i..

. . ..i,:: .'.. .. ',':':.".:

NP-A Ca~gUI)¡~" .,. ":"-.... .

.-!.' .:' ':~:

~ : ~ 'i i:" , '; f '..,,1" i" ~ '. J'i,

.,i

',,,..,':; ¡' ~;. oj . ..

,.PaldllCI Ntim.: a~D;senptii)i)'"

P-U~N,a,e; . '"''''~;.~~l':é''

PrpÚ~ct~~~q~iøøi;', .

". .

õ."",

.1,' ': ;~:: " 1 '

'~C~::!::~.

, ~ 11,.: ,,' .

';1"'

'.'1 . i" .'~

; 1 ~'..~:";"/~:~~;~'. ,;

.':' ~::l

...:. :i,, . -~

~~,~.;t'; :!,..:r

Mamrity ,Ma:-d~um l.t~t1~':

U L,d~I'Ii'II)g Ind~o( "

U l'4erlyii\g, lndex:~!" j . . I .

:,.'.,!. .,.!:, ,'¡I' ::. ,",'1 ,I!: ". ?!"i:' . ~ "!

. ". ii~~~'-.f .

.',.. '."',i-:

,., ~ . : ,.,....' :.. of.c.

'.1 . ,...'~' :i.,.,1

.:! '. f'~ ~ ~ .. . '. ,,,-.'. . . ..

Ctti:en\:teS; , ,.,; ,

. çll~ii..e$~ .

gÊCT;bt;t~:'£ÒCÅi1l?~i~~~~~:~':¡:" ','.

'~;;~g~CC'~;f~\~((~~¡;:

. '.~i'_i.. '! . ~.. ". . '~.;""", 'I',' ,

¡l.;;:;'r",.-!;¡t'=",'i:,'

:.,: . .

'I', ..:,:

j .:1 ~.:'

. ,;. ;',1,.,";':,'t 1: ,

..

... ,'..:- t ;.~_.. . ~,~. . ".

.:~ ,,: .

Strictty Confidential-Nol for Circulation/Commillee Members and Staff Only DB-PSI 00000048

;.¡:.:1:,', .

'~. ;:~ ~~~' i.'

::!" .

, ¡".,:.1V'j'i":~ ~ ,

; ~" '~~\~. ~ ~:~'.:~~~:':~t... \~i:'; ~;,~), I:. ."'.

, :', ~ag-e.i' (.~t~~,i":,f': ::0 ~,:' -.. .:'j~! ::¡~t. ,, " "

... , ';1. .,Pdm::ry Proposed i,o~at.õri: ~~iit;~ l~l,ands '~~;;~~d~:i', ':':"':_~k;~~~~~d

:!:~i~::::' :i"."::¡¡¡!ii;"~' '';';::;1,:'"'' '" '"Dèutsclle B.ari~fftem~I1M',L~~n~t~eijç t$~ik-A(j"L~iinN~e,:Rj.~!#~i~ '

"'. . .. " ' ., .:; ¡. " ' '.' '. .. ~ :. 'ii ., ' ,:'.,: '. ~ ' !:,., ,;"., . ". I ~, .' ~'J

;,~~' :' ":

:; ': ; . ~ .. '.~

"

. ..,. . ,

~EC'l()N4,JAOP~,~¡Pf~~r~~~ WAt~!:, ':':~"

......, : .1 1 "i~ i~ ~"

'I" ..'

,, ,.;':'.

. .' II . ~ :.. ,;:' ~ ~ ::-;:. , d:':;~ft:~~lb:¡:,j ,,"

":' ::.~::,;i'~:'/:::.~~~~~~.~#~~~~~~f ~~;;'lFff;,l:':'!"- " .' ~ ,

, ,

~::'r;::~~;'j i :

, '..~; 01 .' ~;

Mode.I ~ lricing 1_~;:3"1,c~:~, '..." ;,:,!.f\,I(~dèiNanie: ,', ':"'"'''' "¡:fl~OOltÇ'~~i"

i ' .. ' - .!' " " ;'~:. , , '," ,I :.., ,~'~. ~... ,; ;" t ,:~.¡ 4 '" 0, ~~.,

-.... .'i~'.

;1:;:

. ,':;t-::.. '

, I ~ L ::

System h)röimäti~ii~~Fl:Of\t O.fc~ sy~ï~..it'',;

"n."r--..'

, ';il¿\J;,:,',., - , -', i '.":,:' ~ ;':" . _:,

; "".':'';, '.'''''Î':

d¡SECnON 5aUSTh$S$~ASË,-,~-.'"

--~-_..- - - . -. -. ;,:, ~:-"..¡",. '.,.:: ::;.."' '.;:~~:";:"::i." "

.,,-' ti,"

i'i:a;: I",,---.-~~ -;-:--;'--'--~---:-'!" ;.. - _.._-:i-.._..': '- ....- --- - .'~':"''''~'--'-'--'.--~ -

; i.: .:. '.----.'--- .,,~ oJ--", , _. -----,-" ------~_..----'"

:~ .~;... , ,.. , i::

~~:~;:;~~~~~. ";u:~~., ,:; CO- ::,:,,: '1,"~:¡,li~t,'~'.;¡"ttç ':':. .

:ti~~¡:~:t~)':'\:\!t:H"'" .. ..

,!!,~:;=~~~, :~,t, ';¡:l':¡;l ;,: . ..':,., . ", ~:. ;,,'.,:X/ ",' "'. :. ~'~'.:"~~:, :;.:;~::,(;~;~~~;~~~:,,;.:, ,'r:~; ;; :'?:' :::~ ;'; ,:.¡J~l;.~:¿,t::~~:W ;-rij¡:WL

. '. ., i~" ~~:¡.~;';':;~f~~':" ;;. ~r,..' " "...,

~;~~~:'~:';,!:n,:,:, . :~' ,~~f~,:'.i; :-,:

, ,. '.,"" , i ;:', '-',:.: ! :' ..; . ;'~~' , '.~ , .1:..,. d.

,.':' ,,".,

" ,

..

.(;, "

, .', "

/1 l-:,r. ~ L '

...

''',..

,.

, '.. ¡. ~: ~, ~. t' , I~"/': : ~' , ~' i' ",~.: '1:'~". ,

..

., ,F ... 1 i.,' 't : I ~~ ~,. d - ,... . '. . " , '".. .~ ¡ :

" ;r."'~~~~¡~¡r~~~:;;;;;~,., !" ,, " :.. ,. ,.~ .

. :,~,. .

~ f

~. :.' p.t;:: ~ .',:,;,

'..',:

; ~'¿~','::I"¡i'.,.,.~. ; ~. ~;..~

dT"'''",''o;'

J ~.."

,- ' I~,. .. ~ '" -_.

'... ,',: ..'.' '''. :".. ",¡: t:'J~.¡~(:'J'~" ~,,' . ,

~'..-! j',._:..., ;: :..; : ~¡ :: ~ .'... ;"

,. . " '

Strictly Confidential-Not for Circulation/Committee Members and Staff Only DB-PSI DDDDDD49

'~~,' , '; ~~~;::¡:::' . ,r ,"'K.,',~:'..~ l:: . !!:~'

~,j

, .~ ;".'

. .. , ,.,::ri~!-~';.

:::,:¡

: ":¡' . ..

, , , ',; ¡ ~ ':.

..'.,' ,::i, '.,:. ""'

"

- .

... . . ::. .. .-! ,i, ~ '" ..' ,""'-\ '~l:ã:~' .:'i.~;~':': 'i~~¡ti.'~;-"~='.

:;. -,y~ ; .I ~:u :;.:.;~,:.~',~~~,.~:~:, :-,::, ~: ..c¡':- ''',,~. . ''''':':: -:.":. " ,,~i;¡

..¡t- ,:" ~.';' ',.::: ~/', f; b /.. ~~

..

. '. .., \ --.'.':~: . , ,,' ., ".;," ~ .., ." . . .,: .i"~~

:"".

., :; ,

:',-:õf '. ,':. : OJ ,~'i i '~ :

¡. .:~ ".:

".;".",~ ',~

'-'Ir-'-." - --,':-~ : " !----~--'- _._.._~.

., n '~I;, .

:.:; :. , ' ::.-~""

":;"

i.''..I"J:'-.::i . ~ :u: ,;,'.i:.. . ..

, ' ,

" '¡".,r ,., .

':",

. . :,r.;

: 1 ~ ! .', .

,. 1':,.-1 ~ '.'

'¡i.:i'',- ..,

, :;

" , ; , : ',:' ~

,'"

.. ,"

.,

, .., ,:'

..

'~' "';;¡~:,ii¡~¡¡~:';,' ... .'--:i,: " ,. ¡1 ~ -,;/ ~: rr' ..:~. ..':~~ ;~~r!~"~'~~:

.,q'j I , :,' ,,"i ~;;: ~' .

,¡ 'i ' ~ 'i:. :

. ~ i . '

. ' ...

, ' , . ; . ;,",;:,;;;:/:~§¡:~~atG¡N?:"~', . '1.~:¡.~':~:;; . ~ I:

',.!,i., ' , .

" ',,- ' ,. .. , '.

Strictly Confidenlial~ot for Circulation/Commitlee Members and Staff Only DB-PSI DDDDDOSO

. "';-~., : ' ,:,' '!)::1'",

, ",' ". II,. -;- "~ :

"

: ",..''-,J

. . 1 ~ '! . "

',-..'T'

',; '¡ .. ~' .. ; ~";,.. i "t:'. . '..'r¡' .

'I ~

" ~ :"'i( ,- .. ',:' :.

,~ .j.:' = .' !' ¿,¡"": .

'-1 !.

c. ....,

, . ~ . . .:,1'

c., .

'.'

..

; ,

-~¡, .!

;'..~' '", , .-~.,.- _.~._--~_.."~~"..,-'"_._-, "

!~,

",

,i'"..,

"'.- '''"

:-: ~..:..,i.'

,.. . i,"...

':: '~~ !I',;'

~'.

"'..'

,',,,

, ,''" '1"', .. ,...

.. . ,..', ..

.,:' r.,y;.~ .~:, , or " " :.~;! ::.,;,~'\~~; i~f::, i:'"

,,'.' " .. . ,'."i'

, :~ /:, :i.¡:~~ (.? ;:'",;,; .1,:.,',.';.

" ". ~

, .: , '~. i¡ ~'",

.' r' ~,':;;:f,. 4-::~:~--~ ~~';

,'-,,'ii:¡ : ¿ ~ .': I:,:ri tõ''ï" .

,J,,:': " ."--.,"' ,:..,-,~;':.~~':,,' :/( ~::.'!~'

.. ..

, "~~\;::~'::;:~~ ~,~~~,

1::d~ej~~M;:~r.::'';'

,'.. "" ;!.;' ,

. ...::,~,j¡~'~".~'èl;;~~f: !l:-Jt,ir~ii;";: i :;~.,,~_! '-. -'-.,.. ,..

"" .,¡,! "

!~.' "

Strictly Confidential-Not for Circulation/Committee Members and Staff OnlyDB-PSIDDDDD051

-

,.. ,'5,

, .. 'i? ;;,

, , .' ,., ~. ~. :

." ~ ~! :. '~ ~ t_:~ :tg~~f~~~i:'" ':' -' ,:,~';~,; ::~- .. ~: ¿~:~

" ,t~~~;,~';¡t;:~l.;-: :\~ : ;d::,

'~::::':';'.-:j.'.i. ~:~a~., ..,.'

';:H ~;,;~~~ Si:."..:,~, ",;'

'~~j~nG,~~iir:~~~~ ä'::, ; :y

, ', . ~~. "~i~;;:--~,'.,:,

,, ;, ~

.,; ;, sÚ'tttûr'e,: '.';7: ~ i

r,~' "~~',!

.

"~~;;~.'~ : ;.",

-~---~---- , ,..._.._-_._-_.._-~._- -,~--~.'

.."

:,4:'

2 ~ :. ' i i~~', :.

::.i~.i"

'.

'3

,~..

..

..;:. ,,". "J

ií

7 '-: 'f.') ; ":'¡" ,

'. .,.

..', ,.

. . .1,.. ,

,.., 'n',

',i.:,' ' '.,..

~ :;:. '. :. i ';,..;'::;.. : '", .. ..11 t "

';,,":..::~ j,,~. ;":~ ¡"t~'~'';' , ,- ;,:, '- .,..' .-,: ;'~: :,j;~,:~;:,;:~f r~ i,~.' ~,,'~~ "" ~¿;

., ~.., . ~ :'.~;~~~' .'..' ;,~'~~'.~~,~~~i: ¡

--,.. ~ ' ,

¡.. :..,' .,. ~.. : ",'. '.. ', .

;,,. ,It...:,;;"i'~' ~,,;:' !::.:~.;: " ::~~("',,\ ,

..

"" . .. ',' '.'." 'R "' ~'..4.' .' "',..,: .'" ,.or:-; . .~' It:t',',',., . , .',. '

, " .,~ ... 11..--'

Strictly Confidential-Not for Circulation/Committee Membrs and Staff OnlyDB-PSI 0000052

!:!.'.

.. ,

. . ::'¡¡.'!", L.' ..

, ,':

; ..~== .

i :~; .,. ,.:.... ': -:;. ..'

,j'" , ,-, ; t~',~~; ~, '-." .'88¡~ ~~~~t~~,:

;;:~ ":;:;'~~~!~~,'~ .1

, i. ~ 'L''., ., ~-., ..

vi,'\ii.

:~', , , ,

, ---------_._._--- --~-,-___~~elDe'lll~," ,;"". gi~,L,~

rt')viiltt:tif. rhO it~'

,;.",jlf~,':~.~"~.L,~,~!:C,:,i':.".,:.;;:1:');. . 'r"!!?.""~1.,

,.,,~~,~,~..P"r"'J- t¡~tf~a,. .~.; ~~~\1i,;rl1~~~tt .l,t" )¡,JL 'r,'"

, "~íf~t~~;: ,:'.' "'~.~~;)~f:~~J~:¡r)~ft~;,;d;:r, ,.'"~.',:,, .,,' ,',':. J .,~" ., , :' ,'" , "

".,": ',.",' 'i:~:t~;;¡;;;",7;:I~,:":, ',."". "!. . , . ' ',~' '~:.J', 1.,';", . :. ~ .. ,..;, "" , :,.-:.:7. . .;~ ;;",' ¡:,..:Ttr~:.;,r::'::~":;';,,::, ::' '.

,,' ',':;,ij¡~:~r" ':, :"i:k,\!!~:Î\~l~::(~!~¡i¡,:;

----,,"'----,--, '

" ,

i;;;:

::,"/!'

,~f! "

."

.,

"

. ;. ,~,:Y,

Strictly Confidential-Not for Circulation/Committee Members and Staff Only DB-PSI OOOODD53

.:~ "', . ." ", " ~':', .~ :~:~\,:~~~, ::

'::':;~f: ~~:t~i:~: i:~;\~'~~:t~Ù~?¡"- ,,,.,

.. ; il- :: -f' ij .¡' ., , .~:' '! '.. .",,¡, i

. '. ~,.... ~ ',".11,'.

, ~ ';, '.' : ': .i...'

... ','~; ; , , I..;.,,;

.. . ' ,.' . .. , '"

:"'~';L,~'¡ ,~~. :,:,~,~~"~M'~;'"

," " ,~.;; ", ¡i.f' ~ ':, -..'t ~ \ '.. :IJ;~ ' , ~. -= , ~-.. ' ; ~ .

. , ", ~

....;.: '

,..':

dc1'MJqr~iilV¡'fLUi.dí--. ,,'., ", .:' :. --,' i": '

¡r~~~::;~\;;.~ ...

, ,-. . \'i.~ .;',

! ~,.., , .. .

'-", .

ri"",',, '\ ~.

. . :'~:~~ll~~~;~~À~1oir '...; .

.! ~, , ' ~':

'.'

." , .

,,;; ..~.' -'

.._--_.~.....,--

,"

iii."

iv..'V:

~,' E +

:, !,'i ,¡:¡.. ~

','

.., ..'. ;..~. T ,:

..

. '.,

.'. '-,1-: ~ .

" ,

..

,., .. .; , '~I ~ ..,

'. .

, . , ,.~

,,',

,'...

..,', ¡.

,j :1, :r,~. i :-. ,~¡ ,-," .: . ~.~, ~~~:F~:;;;;,:"

i..~, . : "':r'

,. ., : '~., .- , ",. :,~ :.. :!.~: :,.-r :':

-;!' '; ~~:;,~ ;1, , .." " :"

, .. _.

Strictly Confidential-Not for Circulation/Committee Members and Staff Only DB-PSI OODDOD54

1" ". :,,:~Y ~dr~);~~:l~:;'~~\ .: .,' "',

'~I', 'u", '..-4 ' i.~:,~ " ... ','..,':'.._~ ~,,".,:~::-~:ì;' i:~(¡l~~~ii(" . .

.¡ : ~

. ',"" .. ~. , .' .'

.';.',. , "

.',

'.'

,.:'~~.~~;; :; ~ '.

:1:,.,'

;~;,",., '-

" . ,. - ~:..".'1''

,-.-~--- --~._----,-- ----_.._~..._--_.~- -

.,'

....

.,"

'.., ". ~ 'r~i

.. ' , ,, .

.. i-'

.." -. ~',: ',: :

:~,'-".!,¡;,. .~~:...', ~¡~. :~:'

- ?i- ". ,, ,,' L;~~b;';~~~;:

~;... .::. ¡ -; ~, "

¡-.', '

.,

'¡" .:,i,..

'r _:,",,,:F.'~,'" . II ¡; '.' ",,', ::,~ .:'~ ,', '. ~ '~..i'. ,~' ;,:1":'' '..'" -,' :. ,"; ::t~. i:'~ '..'

h" /:-" ", : ,,:..~,;;ii-;,::!~~'è~~:'"' co"~"~ '~',:~''':~:" ,'~, ,", ~'.' ::' -;~:,", :;:~X;lfJrf~~':~¡:~;:~;~:' :',; :~d:~;;~¡~:::"

, ".' ~"'.'~: ""':~';'-"'.'.:.;.',',:':~", ;::.':,.¡'.i":,',,,'..i.,,¡:;,.,.~,:...:,:...'.;-",','::~.""'~"~':""':";"'~'~:',i::,;;,~,.,:..:,~,:.,.L,'.l,:.;,~'~.'I;~;.¡~~,'.,.i . -.' ""._,

, .. . . '., '.,:-' , .,',' . ,.,~.;~::,;,:,f;..,:;:~!î..,¡.;,:,;.:,',',',':;.',',:,:,",:,i,',t,'..,~,'.,',:,'.'.',:,:,~,:,:,.:,.i,':~,:.',¡.':,,;.~,r,:,.,',;,!¡~',,','";'~:~r;¡"\"'-;"",:::~'.'t:.,,:.':,'i..::.r . ,~,L.: . ~" ',' ,:"1'"

ï. : - . .~i7:!:: ~~' ',~'~:~: .~~6~V~~~~\:.

'". o,! ,;,L'¡"

..çj:'.~: ~:,:.j~~:~ ',:'; i.". , !i.'

. ;04!! ;.'

.,. .

, 'i."

.:1';'~!."'''~'' .., - :.."

",,.:'11::-;":,' t.,

:' .... ""

..

.:~~~~,r;':.r"

p,,,!:Il:! .

.,,:,' " ~

Striclly Confidential-Not for Circulation/Committee Members and Staff OnlyDB-PSI OOOODD55

.",'" .f! " ',..''''''.,',',;' .

pi ,:'

'¡:.I.~';; ~

I, ~',¡"...: ,,,~ ,: , ~ " .-:: ,.

N;: OJ ~.' ,.. '"" '", ~., " .

P~~~~~":iI;:'" ''! :.' !

.. !" ;1:' "

..' .'~ ..,

,.'~~~tt.~~:~~,~.:~rr,.._::~.:~~;~+~:: '..;¡(,.',

, "

, "~" .,' II.. . , ","~

: ':':õ ,:,. ~ ¡ . " . 0,''..- ,. , , . ', ~'J~'~,~.~ ~'.~'

". ._'. ~ I. .,..

'"1'"",'. ., ~,: ¡ . ..

'"

".;'.'.o. .'" ..

"~:':~:"~.,--v.

" ,,~ 'i ";¡.: ~~,!i~ !~; , ",, ,

,:,~:ç:. "

.- ~,.

.... " '~l;: ", ' :. " ,:;~ "

, ~":'.~ ', "

'..., . ~ '; ,: ": .

~,:. l. r' .I' '! .¡¡5.:~ ~.

..;,--'.,;; ;.',.:. , ",' .,

: ~

" ....l:

. ,,', ~ , , .

,. ' " ' ,~' .

!~ ":":';'

; ;.. ".:,:..,':.' ';,.'+':"

.....'. .:,., ~~ ,

,'.. ",

; :'. ~,; ,',' . ," ~."

": ,r;iwl :i,

" ,i- .'.,'.. . ,.; " '; ,! ~ ' . , ...., -';' '~¡."!'

" ":'¡.:,' ,;,,; :.','~ : ..'

'."

~, L~l.',

. I.;," "~ r.

i. ' "',. ,.. ~,':::.,. !" 1

': ~ii~~~':ii.':~~';:r-': "t;,

,'"'' :.. , .. . ~~ ~ ' .:,~:,+-'. .~- ,r ~'~, " .' '. ,..,. ~ ' ,. . .,-,- .,. ..',-'~ ~~a..-?, ';, ~.."h.~) ,:'

"or,', '.

, ,'" ,""I ""'-J.

',IJ .' i :.~:: ','..,""\ , ::-:;':',i .;' , , ,

" -,

..

i' .r ~, 1.(

, ': , :. ,; ~:' , ':

. ';;;\\~SJiHtiH;' '

, ,'~ , ~,

, ' ..;;~. ~r...r: 7); ,. ;: ",": . , .., ,

" .: ,,"ii I.:

- ,;.,i." . ., ,!!': ~ '~. ',' i .' ,! " ': r , ;:'. ~, ... ,.

, "'. . .. =:',: :.,' ¡, ~ . . L ," ¡ , ~ :.' ,.: . ,,'i~i' -:' :. n,' ' ",.',' ..,'';.,. " .

"., ' "';,~i:;,W~~:~!i)~f'~~;:" "", :')~;~~)~;t,;t,Jl~~,~,"::.~.; ':~,:" '\';'\:1:"::"" "" "

.." ' .' , ~,.":: !'~ ' "' ..', :';~II.: ~o~":~,.i :i/"'J~'~ ~ '.) ,F=::,:i. ;,1.", . ,~.,

, ", " ""',~/";~::~.h.'~,:,:.~,'.;.,.'~'~~"")';':";'~"~;:""~':"'~,"'~':':;;'.."'¡i:,: I,;,",;'::;:'.,:,¡i'~,'~,:!:":' ' t

,::"~:3;L: ~ ';,. - '~,:;;;:~"" ," ; ,~~ ;$;t,~;;,~,~,j.ï.¡.'"t,\,'.~,;,;',J,i,';.0:::f" .':, ',: ' :..

.;~i~¡:;~~,,:'i~::'r)t:-'0:.;:' ::~ i;::'~:;~~,'!,:',(:': ';;,'''rl~;if~a~~~,:,~.i' :., ',': . .:':' M' ,.::~'::':~~rr~J'~_¡'j'ii::.. :~J';:,;~.I:.~ ." -: ~" ~ ,¡ ~. II ,. ''"r:: ¡ 10... 1"' " .:'- -, 'i,. 'i" ": ~ -"~i~"~' ;;'.' , ':,

, .

,.,,.r. "-"':';~:, i: ~ :/a'¡ ¡ '.;:

..,.¡',;-!,

" :';.,.i.r~i~ '!:.' ~ (-i:.:,: :".. , '.,. :'; ~~.FI:.~':";¡~:~~1ti',: i', ". r" .

'.1 ,..'-! "

"~.; ~ '~~~i:~'~::" r-~.~;...::1' .' l

...~' ;., , , ~:.'..'

,.,

~.. .. ~ .'.,' "

.."'~; :: ~', ~ '

-'

"'r'.' ,

"

. ':~.':j;;~~:~;~:~:;:." .

-' ,:,.,~, ~ ~; . '" ..:

,!',' :.:';:,1

:' ,;..;: ,...

, :on.'., ," , '" ' ~, '-' ',1::1;"';

" '" ,::,',:';';:'.::~~~ ,:. ::,~:~:,;:~,~' ~ ,'Yr

...,:_, ',',:' "",'.

~~:¡ \~ .~~;:

.. i~.j: ~ .-, :...

.¡-,:-:,,';':''" :' ~ .'.,r. i , , ; i;;~

~" ,~r ,;''; !

::' ..';' ': :: :¡~ " ~ "':;,4;'

Striclly Confidential-Not for Circulatlon'Commiltee Members and Staff Only DB-PSI OOOOOOSS

~ , ~,.,,' "

.,. ,

. ,,~

~~~~.i ~,

',.';'

..

':, ~ .

:,':'.,. '~:: 7",.- .~',

ii".', ,

, '

Strictly Confidential-Not for Circulation/Committee Members and Staff Only

'.,"

,;., !!'I

:~. ,~: '~~,,:, ~

,:,. ..

, ~ "

, '.,~

"

. .',,;,

,:;.~ '

'i-;

',,'.''',.'. ::'

;!"i ~ .

f:': . ,~ ,

I::

:,¡,., ...;

~, ~..

....

i'':

DB-PSI 00000057

,¡,.i: 'I:J-

, : ..'.0::

,. '

~' i"

.. ; i ':'~)' .:,.

,t'0'

E.!,',~ ,,~;:..;i,' ' !, ~ '" .

..'I!:':-;''." ; ~, , :. ,"';-,'"i:=-,¡::.:"'~':: '1:!,~,,';~,~i~:~~'.

:, ',' "'~;: ¡ . ,~'; ~~~.; ,~- .: rI' :' .'" .~ '. , ' ... - , ';,~. ': ..'

.,"

:i'

:'''.'

. .

.,..,

." 10,& tí~¡¡~~,.i=,...,).._"...,_..__.".....-...,....i'''''''''''''''';'';'-..-.~"....".,-,-..,.i::,

"~;p~;3;~~;,~~l¥~~~~~#~~~sil~J;:'~~~,;~~i~~~~~:',,:,;/.::.;,;~;~.....,:;~J ', , :¡';' .!' , ~ -- 1- ::' i , , --'" .;' ! . ¡," ,,.,' "',''.'.j,.' "

, ~. ,,j, '!:..~! '; .;:~::~ :~~,: .;..,:", ~'..,1,1:.

, ..,:~i.:' : '"~ ~~~'t..~.._~~-~~,~,~!:~: ti;"~ :'~! :~~~~.~t.:.~'~ ~!~:;~,.~:: ; ¡ ",,"

, ¡ .,.' ::'" ~,..;. ~. t .

, ,J~:~;~~; r ::'i I~' ,~:...., i ...~~ :.. I:

,';M

" , ::1.,1, ~ .:, ': . i "~,::,::,¡ ~ ~ :j ,

"','",." . ..,, , 10;''',

.-: ,..', '" -". . ~..,II .,.,,':¡ ":, . ,.' . '- I I ~, .

.'1,,1".' 1

'. ..': , -. ,. ..,

- '

, . . i.:,.~~,: ',:~ " , ,

, ," '~;~';" N¡j'~;~'~"a~,t~J~\,;':," " ",i;,' . ".,

~ .,.-,,:,',"1,',

'.

""":":1: ..~: 1,¡ ::',. . ..!:,',i:..

~.';;.. ~';~~,!'tt,!~ ~ 1'~~:~',~..:;;;. ;\~tf-,;.~'~ ,..~'J, -

,! ... : ¡i~.",~':'~...I\"~~::::';"

,~' I . ':~': ',' ,..,: '

~.., , ' . ' ". ,', , '

,.,:'.::: :;'~:.',~;:t~:~:~:.¡,~:Ùt,t,; ~:,~,',,:~'~::;.,:(:,ri,' ',' "..~!. ; i

:!.' "~. :',~:; ...'t-. P-:"!:'''4.~:; ~~!,;;'..,:\~'i.'. ~"'~ ': ,

'.,I ,~ ..'

..

-::, ....~ . ,", . ,,,'

, --' ,'"''"

.;:!~ ,: ~~; .. ,.::":".' ';;:i~". ;:'.¡; , ':~~i .: .;,' ~::. .., ., '

., : "~t~~~:~~:'k::,' ¡¡.;~~; ~)~- :~,i¡':L~~',~ : : ,~ ., ~:.

, "

, ,

, " " : . , r'.'''~ , -:' i,: ' , ..,

, ,~., '~~::',~t.'~~~':'~;'~~,';'~'~~.t~,;1~"i:¡ ,

, . ,; 'i' ...i,J:',t.. u" :r.; ¡ ",) .7;,~,~" 'n";'" ".;' ,:..~~,.,=r,:'¡. i, ~. ':., ., ,""': . .

',"!.....:: .",,.. ~

':;'l::',+.

Strictly Confidential-Not for Circulation/Committee Members and Staff Only

,.-

,,'.

" ,

.'

i",

-,,;:J:

',_.~---..--.:"~_.~.._-,_._--~ _.

,.'.' . '

".,

..

" ~ '

.: ,

... ..,' ,.d'

,i, ", ':'..

:;,1,,..

.,. ., .

....

,',

;',' ,,~..i '

.i:I,,,.,I,' ,

i',"

; "''''

, :",.., ,-:

..

, "I

, ,

,V_'i, :.~..:', ,.

,.,"~:Ï:l; ,..

':",

DB-SI OOOODD58

~: "

:-.i .."'i.".I

, ,.,."r.

QelrsGQ.~,~~!~..a

. '.: :': .,' r' :*iiwie/fii~~~~,~~~a-~sM.4NiJ.li,1.O -lntt.'OliitibÍ;. '., . ..' . , ' . ,

,,.: :!¡ ¡. " "14"':

:: ,:~'¡ ,

, .. :.¡,.

.,~:,: ..

I: ~.,,: ~.,,'"

, ': '" n: ,,~.., ~~ ! .:t: ,I ~.~ ~ .',

"--::,:r.

, ..

. . :;~ ! :t

, .1: ~ ; ~ ,

" " -~,'. ' '..

.0,,'

,i:"

..

, .. ' '..:~-'''_..~:_:,---_.--'-'-'--'-'~''~-'-------- ,,. . .

, ,

.. .

.. ,'::, . .

" ,'I,~ .':, .. , ",'"t!. ,.'; tl..:..'

;. .,"

..'

:.,'1','.'''f

.: .,;-? , .:,'",',

'.,',

~:t .~~~'r ''..:

'.: ~,, '

'-,¡: , ~ '

....

:.",'

-,1'! ii .:1" ~ : j~ ' ", of :.: ,'- ,, ;,~ ':'. ' ,: :" ,.\.:.!' .~IJ ' " "

i . i ~ :;,1;,': ~::,~, ~,'" " L..,',

;~ ~ttm.,7;,~~f?' ¡~\i ''11~¡~,;.:, 'of ....: ",. T'

.'..w'

::::

'.. ' F. ~:; ',!~ . .(

j::,:

, :~;.

. ,', ~ \ i.i:~ ~~' .,': ',;, "; i "'" ".i::~~~ '~4'.:\ :~;~:t.7 ~.,i

"

..' .

.., '

Strictly Confidential-Nol for Circulation/Committee Membrs and Staff Only DB-PSI DDOOOD59

...' ":: .,", ',~ , ~ ~ ! ,¡',..¡ :,. '."t '" '.1

~--_.__...._._-,.,,-~~

. ,¡!..

D~m~~Ë'!~", ,,";~9~. '~;:1,";' _'~~~"~':"~JI"I! ;:.-"~~!:': ,!...t,¡ ..' '", 1'-

.~~~~""'~:~~.¿¡¡#~

. , " ~

"

,,;.¡

,...... . ""., , "" !"! ":'ft;

11,','

'" , ', ,

"-'.j;

.,

~_.".._-_.- _....._.-

..';t;

,,",'

"'"

, ":: ¡! ~,

, ", , . '.' .'~ìp'~Ii~.s~' , .;¡¡';~,ri¡;:" ,

'.';:': ":_":'t,:':':i;~?;~':~~i ,;~'~'!,i~;; r.' ;, ';d:,\.:\.,'

" :~;Th¥¡ ¡~:;K¡~d~~:~i~l:i,i,;' 'i' '"', " "~. h:

",i

-

iJ~. ,'.4

F, ¡

,I .. ~,. .,...,.:,',~'i;; ,. '

"

,:,'",~, i::,j;;-':¡:.,'~ ,~1, "l

'", 'C"!":.'! ,;. i',~

, :! ~ ~~., ,

, ,,,'" 1 !!"

'.- .. ,.. " ~, ,,:.; 1,

".. ,

,.. ,~ " _..ii, "~ ,:~;¡,,':,~, J- ::,lF~.::,"i i ',~ a:: ~~; 1- '.,), ./~:~'t~ ~'¡.:::~",

. ':; i.::~~t:,:':¡!;à''';~¡ :)::~~~F,~';':':: :!~'~!'\;);~l'!~~~':;L;'~' .

:-./:, " ~;

o;.'=

. . :l:.''. "

'..'"

Strictly Confidential-Nol for Circulation/Committee Members and Staff Only DB.pSI 00000060

. ..;..--' ,'.r ~ ..',-.. !, E .. ~ 1. 1.l :: -: ~ ,:,.; , -'. ',;' í-,: ,

"óe",..~,.','~,J~:.:';,æm.'~,','~.~,~',.,~.'.:;'.':~.;_m,.".'~:~..'..,:"',,,,',,',,":;":""..:,"','. . .". "',' ' ,:,.'.U' . ".lf . . ;',\\~,~,~¡:, ..,::;:.~.~.~~i, ~L,1,:~_~.¡:,d

,......,-.,¡'" '

'h! ,., "'ik' ,..:.i;.:, '; :~,~.:,~ ;'0' ~. "'.~:~,~¡I~~; '- '

;~~~~,~""'~,~.,:f,'~::.-,:"":,.,,""J!"':f',~"r,'~,::;.'~';:,','...:';,..~;:;:.;:; "':,.' . "''-: ,.'~2¡~': ..'~ - , ,YO, ,

:;~~.:~i ""~r~~~~A~;:' ')"", ';;~~;~:;~J:,~edir. " , . . , ,.,' . :. "".

:~: ",.;,

--~.__....._-_._~-_.__.._-

. , " ':-: ~ ;.. .,.,j- ~. n, .. 11;'- ,

" .',,.11

'":, ,'.

'''.'=, .' ~:' 1 ''-..":1

~~J. ,J .-., .

- ~-,---,----'~---"'-'-'---'-"'-'''-----''-''--''I::,,:,

~-' 'n.' , ,

, ~' ,

: Y';:~'~' ~,

~ ~r~ "",; ~ T ~,:-~~:., r ,'".:;; ','"d,:, ;¡.,' II i .p''! ,:' !~¡~,',,-,': ;': ._,-';- ,,., ~ .., ll

,. ~..,. :'" i! :" :,', !. '~". ¡ '... ¡"="

l;;~rl ; :.'1' \ :~., ,,'.,'.,:,1'..'. ,:,,".¡

..

--, .

,. ~, I ':""1';,1

..

" '~",~~~~ttik~" '.. .'~~:T t,; .' ; i,

:'-:.

,;

.. '1';",'I' :;p

..,, : ,~

'n.

,.:

, ;; ~ ,

. '..1

, ~~¡:1;~:; i"t;,'.i.~j§~~l::,t~'~,-~ ,. ,

~::\~i:¡'t.t;¡. ._.' . :;;:: ' . , , l',',ii'~~~'~~~~~:;:',,:\

': f:'~::;,':", "

., ';

" , .'0;' -:,; .:

, ,..

.. , ,: ' ~

. ::",..;,:,i~'!"!:r"

1'!'

!;' ~' l' ~ ¡, ;ï ¡ "c',"

'II,. , ., ,,' ..:1.'"tt¡ ¡' ::'!-'¡:"

", :.. . ~ ".~ ;;.;

", .

',"

i~". ,:.\+~:':,~tj'¡æÚMÙ~

.; .: :. ~ ' I' ". -..,'~ ~ .

of',~

-":

':, :'~,~:~'~; ~ :..' it,~""';:' ,"ij ,

, '. ':r' :fTI ;:!':'~i' : ,:

:,1,:'.";,, t ¡.~:.;, ':,

""¡""~,' .. '

, . , ~, . .!' '::;. l"';; "::; " ~'

" '

Strictly Confidential-Not for Circulation/Committee Members and Staff Only DB-PSIOOODD061

. "",';)lik'.~I.!:!:" . !',r:'~~:~"'~'~

., ~~~

, ,. :-j~

", ",'3:'t'"

, ~',"' ' ~ .:. : ,~' ,',~.; . ". ~.;. ;, ;. ..

..

~" ,"

" j

.. '

.,

, "

'1.0,

..~ ,~~;, ..t.~ ,..

, ~Li"" ~ ':'. .- i.',',c'., ~~~¥~:'~~ç,."

, ,.~t~~.:'¥~ 4"'1.: .

" ~ ''..,

':,1''¡'.': ~;., '.

,...

:; - "

,.,

I" i'~__,~~,;.~J: ;'-- - -'-~:-'.-

i . ~ ;; ':,n.--m-__m.'-----

----__,,_~m_._~_.~~...._' _'m - --- '~'.~- .~-

.,: ! "': ,.~ ': ~i. .

. .: ,,:"'!:

, ~.;.

..

'i ;:,.

. .

t. ~

..'

:::' '.. '~i:

'f;':

'" ,.'

~ ,i , ~.' E" .. , ~ -

, .,'" "':.! '!. . ~,

~, ,..., '~,~;-¡,;":''

¡'.',''-í

,. ";" ,,;1"

" ~' :

';'"

, ";' ., ~, i I,"

:':~

,'i'';1 ,

" -,,; ,'/~:;ìi'( ""7

- ..." :;: ::;' :,':

strictly Confidential-Not for Circulation/Commitlee Members and Starr Only DB-PSI OOOODD62

~ ~': ~ ;,

,-;

"

:..:, ':,'~,

,;::£:..;~~',:~~:':'""";; ";',

, ""

"".'~~;;l'~~Bt~ , .,. ",~:Ù1~i~\~~~4'~)f~~~~~4.;:::: !,'.::

.. !, ' .. ' ' , '" ¡¡ ~..;i ~.. ;.:', 'j '.'- ; .~'i'i.~,_;;,','.~.' ~, :' ~ .~.: ,-- ':.. ß :: '~:;¡ , . :i:'.-';~, ~II

, .' ; ij ~ ~

'. r'~~,,,' ~ : .!:~:":,:;-~~.;': . :,,!,.

. ' ~ )/..~.;"~' ,))¡';'i~t:''''', ¡

" "'::¡',".:1;;;.

.'¡¡',.. ,;-~_~~~~i~(~~~.:

, ~..;; 'i.. ;:. ' . ' .. - ~.",:- ' ,--- ~~.. ~ ,,:I:' '1 : .,

..',

. -,'!t!'

" . ~;.

.,.'

.. , ' . ' :;~ ,,': ~-!.¡~'

. ,

. ,-'

,',

-r-'-'-'"-"'---;'-'-':----"----'-'.---O"-'----,__.__.M'._--_--'~-I:, .~' ,

, .,'

"

, , ..

..

,~¡ I

',. , ,"..:' II

"r'., . ~,.

, ',. '.: ~'~.,; ;:,! 1

, '~~";: , ,'~'

, ','" .""ji"'~'~' :'", ,,f.¡;'.. .

"

,~ "" i :t:":; .~:':. .: ;~~;"~.. :", .:.

'. ,;:ÙJ;!1\~:W j~~~?:3.~~\~~i¡;:tfl~:l~?~k;;~::t'" .:..

'¡ "~ii ¡

, "'.

"

Strictly Conridential-Not for Circulation/Committee Member5 and Staff Only DB-PSI OODDD063

.1;: 'r~~~~~t~~~ ;:'t:.,i:i.'"..

.'f:~''''':''!~',: .'

'"

;~:~ltt¥,;~~~~¡tI~~~~~..,:;:, ,'~ !' '.

. .. . ,;,

.'

.. ': ".'ó~~~~~:k~~;Z:

.' .. . '"" '.~ 'dC:~~,;~.~:: '::'. , ',¡1:,?¡M~Fkeq,¡k '~,.,

,.i II','"

~. Prc~ly , ., :',~¡~ó.iå~#~l-_l?" ; , i:~w~J'Y::~J~ii~~..

, i ,~ "

'i:,, ~¡ l

.,,::." '.':;

'i"

:'..."

.. '

"n",:'.:1 ;

"

------,----_..._- -_...._._- -,-----

.' ,

, .,'¡. :

'",

, ,

. ' ,

:' i-: ~,. I,:. ~,;~.t!. .

.j;

,.,"

"

,.. , ' ,; .~,,,; ,~~.~.:,'~.

:_' ,:'..1, .~ l ).';,: ~;,:.;~ , ,

1", .....,-,..

,;,;,:',,:,:;:~¡,:'\,j; \.t~t

.~ ..

. ~! .:' ..

,1,1.,. ,': -I:"

'.

,',

." ,

.'1'

.¡: '..

..... -' ,..

,,'. tl,ll:

, :k

.'-~'"~;;':~""':

,:.::~' 1.:1: ~:, ii

'I" .,-; i:: i ": ;:~,,; f. .. '. ".. " ;::,J , .."

Strictly Confidential-Not for Circulation/Committe Member~ and Staff Only DB-PSI 00000064

:.,, ,~'.;', ~;:. '" .'

~,,'

:,..t.: I .;::~,'. ~ ;:,','; i '.\\~, : :

1-.::':":'" i:'.~',,:,.:-),.

" ... .. " _. ~ '.' '

.i.'i ;:.¡s:¡,:. ,1' :" , -: '~~ ',. ,

.. ',I'

..., ~:-.:.:;

..,'1'.: :,:,Jr.'

',;1.. ....

..'

, .

',, ,. "

"

-....., 1-.;,.'

.... ;.:' ~..' ',

--..,,~--~--_._~----_. ,-----_..~"-"''''--''---

, ., ... , " ,

':fj~,~¡;~~~I~~\~::,z,:~~~,"~- --

:,', '. :~" '¡:!l' ~ J '.'" ~!;;~' '.

, .., :orJf;

, 'jj: i ~:!,,~:,;,"." .

,,-...flj.,,1, "

j:; :'.,,':,, .,:~., ,

-: S;iý

. . i .~,

,:,,'

".. ~' :'

,::',',1'

",..

10 ~', :. ',=

, , " ,. ~ .,':". ,~.,. ~ ,'.. I ,

..

'.: ~..

", .'-

,.r!.' ,t= ~,

, . \.. ~',:,:"..'¡"" . ",' '!" .. , :r::

'''-., ,

.~. ~" ,:,!;;;:" ~,',~!; ;::' .

;, ~ " ',1 ,. :....i~: . .' : ~ i .;.

:~!;; '~i~,",;,,';~.:'.~,'c,:~,,',t~';,i,t,.;,,'~~~~.;:,',d.:.,LI,:' y;., ',,' ';,r. , J ',," - ;.,1;.- ¡ ~...ï .1.:' : ,

.i '" ", ~r i ~ i i. ". ,"",.~'

. .' ,.: " , ~ . ~., !,;-:, r ~'. ;-' Y'''.'. . "

~:i: ": ,i ~,. ,

. '~. :': '\., (Hf.;',..i::;.;i.,'.."'",~.._,,,r,',~::'~,;,,~,,:"

;//~S;,'Ó:::i:':.~,"::~; " .. - :. ~ ¡¡."f'--,:. ':¡., ;".,(; '~',

'-'!'?,:¡,-: ~

~.. ,

, '.

. ...,

,!":

Stric:tly Confidential-Not for Circ:ulation/Committee Members and Staff OnlyDB-PSI 00000065

.." " .. ...'.. i;'':'¡''', .;\1 ~.i';'~~.''?~~'~~~.:.t:", ::i: ~ ~'~'..~ L' p: ,..E'. ::i~ ,.;: ~:.,:' ,;~

'. 1I~~ t'f~'.: :.:~ ,:'4S'~-".; ,':

," :.I' :, r:i ' .. ..' ,',

~ :,'" .",..

~£!~ ¡i. i¡ ~~ 't:5" ;'~ f~r::: .., ' ',~ ; j ~, ; '., :.1.

, ; ': : ' "f':'.'" i.. ~ ;' i f: ~:~ .-

d, i. ~

. ;'.

~:';'¡'\ '

,',~~~~!#~~~lrR.f.~:~~I~,"..

, ,..,

,; I'H," .... 'J," '

..C,.. :;, ;r"~r'':'~":~~~Q¥~~i~,~"ie-#,:~: :,:;~ ,.

. .'

"

.. ' ,'~ .,

..''~:~;';:~~:~ '~,.

-; ,.~ !"::,i~!'I.:, ".C'

" t,"1''",1

~,~~,t- ,..

.. '.'--,-'

i;;",..,.

..~~. :-";.'.:' - ~

:;t=r,;..,

----"---~- - _..._-,._- -

'ii:,:

;,~.'~'

, I

, .

,'J'," 1'''''-'.: . ~. ;.;"..,'

- "

. -: ï ': . ,,,... '",

.,

!¡¡t., . ..,

., .1,',: .-,. .; .. .

, ,

"+,,'.j,

,

,:' i..~.., ~" ...

,~ .:' I

, ,

, ,.. ",:"

,.":':: ~',:..:!'¡~;i:,:~,:~~.::"., ',. ',,')i':;1r~'-,.d: ;::f~~:l~~',~~:"" "

.~:¡ ,~\d::?l;;t

,':, ,:;t'" ,

, .

~ ¡. '1:'.

~~.i, ¥;. ;-, r', .

~.! ,~ ." ~,.j ~'" ,..

Strictly Confidential-Not for Circulation/Committee Membrs and Staff Only DB-PSI OODDDD66

"':'1"~l:~~~¡.::~: ~'..:~; "

. . ~.,.. ' .~. , . ; ;'. ;. !,~ \.,,:

:~:'~ ,;,~~!::' .~. : ...;-- ..'~

':': .:: ~",_.., :'

~iW;irr. .' . r t' ..:: :-_...' ~

" Ii ' .;. ~~." ,1~-:',: ' :, r. ¡ '.

.T',' '., :;: ;~~,r~'t~;:./:,; .:. ,,'

- '"

..

:- ;,r '.:" ,...,:¿. ;!... -;~ :.6:'.: c. !,- ',~. ,1' ,+ '

, 7, 1~.~~~~~~~,f!~~:,'

'F'

, i:::,,;~.....!,~, ,

"'.8'

,,"-.'

;, ~, !~.

~ ¡

/:¡~~ ,-,, '~i::~\,

-..,-

.. , '

,,~: :'. . ~,

.. , ",I ~

~"".. ". , ..

. ., ~.,..i ~

.,'

, '

, , ,. " ',.' -'~::' '. ~~. ~r::.

""-)t.6,Ótë'LhL' "~;;:.,;" ." ,¡

, i ~~~~~~;':~~l~i¡~;~j,;:i~j~~i::~:.;,iit:.tH:; :~r.:::':" :',';,,~,d,;:, '::,'::"'"i'b::''''S1,r~,'ii..,.,.,w.''''''' ':~ ,~~~",,"Wi",~l~)fJ~,~~Ki":nI,,y, ',~,

, I " ~'1 ,:!: ,':

:¡,' . ".;, , ".,"" ~i~;:~:;:'\~~'( '::,: p ;; H'

- ' ." . .." . ::~ l~: ; ,T"

""~" '.'

.,'

:." ", ~.'

, '..

..

:,: ,., ;. i, .'.'

""'."'-õ

~.. , ,;i

'''''!,'

.,

, ::: ,~.ii::', .-",

.. : ',,:-;!f ~;.~ .¡:'1: '... . " : ,:;,!;.".:::!" :' ~

.., ,-. ' .'.

,'"

Strictly Confidentlal-Not for Circulation/Committee Membrs and Staff OnlyDB-PI 00000067

,/ pi, , , 't"

, :,¡~r;i~~:~~~~'~H ,,',';;r~:~';: ":::':::,~~\G,'.~,;":,~t,:"~,,'~~!~,.,,, ..

"1 ." ~ ~, ,~.:jt.'! " " . ':'r'i":..~ ~,'.' -" ~ :-.~;.: J ¡

;.: ,~, , ,- ,", 'PeU~:!~~iJ .

.,,"

. ..

.:-: ,o,,'

,': .'2"',

-----~--~.-..----- -~----,~. ~;, ;,

'~::~ '¡f~~~';:! ~.:, ~~'. .. '- ,

i,:~i~:;.';~~!¡"~~; ~:

: g t: ~:

,!-,,, "

,.

A . . bit ' ,.', " èiiû.

: ~~:~1i i.~ .:':J., ,t'.1 ~: ~ .!' : ~,:; :', ~ ; I '

#;'.i¡

.., ,':-: ":~',:!,:.. ,. "..':1 ~,.;' '

";', .':: ,'..,'. :;-, """

'OJ''''.' , ,. .;".~':':'

'" ~ ,

, .'

¡".

, ..,

,.1'.. ,:0";;",1'

.'

- ,I' .. 1 1.' '.. '1 i ~ . i: .

. ~,.= ~.,~ :" (';1 ;' ~ !3:,~,;:,: ¡"~!-, ~~ .'

" ~ ;.. ,'. .~:~,Y' , ':.. ,'.

Strictly Conridentlal-Not for Circulation/Committee Members an Staff Only

:,.¡.t .,,' .'. ',,~' ~ :~..:.;,:~: .~', .. .'"," ,

, ,..:..

, "," ,i,.;" ., .~' ".

,;,~ 1/ .t: ~: :.,.,

';1 Ii::' E"

",. ,.. , :;.~:'~ "i ': ¡~':.. ...;.

. . ,:': ,; /..::.~ . :~~:. .~ ,.1,',l-- Pi :

;', ,'. ~"

..!~ ~,

, .., ,

j:lE,,1ll :"¡:-~~."~ "~'.:' ,r'.'~ ;:: .

, .

..::0

,',~, ~ \~W~.:;:

..

'.

-~--,-,-",-_._--'-----~------~ i! 'r ,.... .. . ,

Ii :: ~ .

:., ~,

,"," -

", .i' i- ~i ,';;:'\

'11:', . ',:. ; "

: ;: :;,~~.;. , .h':,.f_I'

... , ,

,...,.,......

! ti '¡,:i J ~'~.',~ '

..

.,'

,,: . ': : : ~: . ~ ;' 1 ~ .',! ;; f '

'=", ',:'.",¡ ~\- 'i ':¡:'¡ 1."11;'

",g.,.', ::~." J'"

::: i;" .: ¡, ' ?-~ '1, ::,!d!::"'

':'.. ~ .~.::,, _.o¡ , ~

"'t, ,L:::,,~::..' !::, ,,: '." ..

'I . ;;04' "n ,,;".' ':i''.'" ,;.

:,\:;;-,,;,:-;'õ.

"; ',~ ,;:

~ :" ii.. ,.. '~2";'~të~!:. '

DB-PSI 00008

. . ".', ,J', '

. ;.~ r" '~,;.,'.-

.";..'! ,. ,.' , ; .. ',.,

'"

, ;" .~ (: .,,,':.-, '" . '.: . " n.,~. ,,,,..,'" , ",'";Öê~~e"~~:~~,, ,: ;;, ,,;,Ù,tf~:~ " ~d:~~:: ,;~: .d::':"~ :':f'," ':; " . ';,!,:~;: .

l';:;:£ìL",:,t~¡',T'~" ,:~.;Ü,~.,~,:~,~,d_..'-;;,~~:::,~_."'i.~,..,, ~ .. "':;.i.:~~:: ~ '""''' -,:;~:"..!~ .,, ; "..-. t ... ., j'i:"'! " '¡,'. ., ,-.,_-,;- ,Lò 'd !o ':,1', ,;, ',: ~,~r~:;;:I,~':;:-. :",~;¿;,.~:;,":?,Qlt,',;:~'~:~,,:~J;;':,"::,,';"'~,'; ;,~:'_:' " "..:.~;,\.. " ,,'

kanP~l~~c...¡-;~\" "fji~\1~~b1f~~il1l,i.ídÌ;"-

ßÓIl~1)~~,,~~ ' ~ ,

..

.',~jj; "

~

" .,~~~:i:/,

, .,.,'"1" "'i', ~.;:~': ."..;. ...::..~::! :"'!~ ~ . ;~'I.", ::'¡ ,.. .~ ~..;- ,: ".',:1' ~,:', .",:;,¡,.i,~,'.,:,~,;-',~;, ,~~~,-.,.:,.:,..-.~,:..,~ ,~.~ :~ ~'ii-" ..'~i...;'i::',!,~::i, ~-, L

,; ~t~'d,:' :; ~'~i;, ~ ~ ~: '. , ...;,

" :'; ~:¡, -:" ¡ 'iu~i ~. ~ ,;"¡,, .h. . "i.",.....~~ ,. ~

., i':' if-':':,::it! .. ,~Ö~'':_'' , ;

;~~~; 'I.;~ ' ,"

..

.i~, " ~. . .' i , '

:: Jo'~'"

.:'~.,I . ,:-,.,'", ' , ~ ' .:,1-:'..

'...'t

',!:

,( " 5 " " ; "! ~

;~ :~t:~; J.;:~ ,;,

.",',;'

", ,",

,. '; ~~..

, , ;' ~ . j i.. i,' ,... -

, - ,,:l;:,:'

',.' , .

,. _. ': ~.

.' .".","

~j¿~Arld:d:,~ ': \' , " --' :~ :. - 'i: '

'. ."!~ !: " '..

.. t ~ .., -,, , ...,'

!:~:~;:.,:,!,

'; ,¡:.,:~, ;, .~

. .:: ..¡..,

:,;l' ,, .:,-,'if' ii,

:'~,?.....:.... ;,":'

: ~ ,MM)f~r~': i.; . " ~ ¡;::"

f''!. " .; ~ .1,, -_,-,...1 . ,,,.'..

::, ," ,'~ ';~'~.: .. ...'¡., ~ ~i'i'

, .

,~ . .'r' .,:; r.~~,: '

n ~\1~ij~~~\~l

:';~~: ;.::,,~,d(c,~:;

. ~ ' ' ''' . .-

,.~: -,~"'~:' "':':., ;:~,;r)~;L:~::~~¡!;.:~,Ù~:f';~;'::.~:":' ,"

! :d,:~:~;"

,:..! .~,,p..

,;,':' ','i,

i-',L','¡':01':\',

, , ..'

.

..

.,' ,,,".".,1,:1 ',.

.. :'f::;:~~ ~ ii?:J; .,, i;'

, ,,i¡ ~ ':, l i

.' .,:;.f'i:-

".,..r, ..

,.',:!" , ~'.~ ::

"....',,"

~ ' , ' i. r:" ¡:!.' i. ' ~ .. ., ,,,':~¡,--/,~: ,.~~'~'''' ~ r,.. "."" l ',., ~; :,:;¡;:~':~,~!:,!~';L.:'"i~~:::.~~:: ~~ ~ ~

;. ¡, -. I'' :'~~;~i~'~?~.~;:~,~:,.".;.,Lr.~.,:.,,~.:"~~,~:,,,~ ':"~:i~...::" " I" ....':;; ~'~JII " ' ï..,

, "J .. "~.".'~!,:~;,.:,,':,:~,' :~~ ;~,:':d",~ "'.,~,'~,'i;,tid;,~ur;~;'~:" - :::r~; !;;:.;~¡: 1.::,.,:~r~~,; . .1;.'1 ;, i """ -. ií' . :..-"¡r..j! i

" .,:::\1?;,~.,f'" ),f~:A"f:: "'! :;.:::::~:)~;:;~:~~ri~ê! ';. ". .~" ,....:.d. ..

',: ..~, ;~=i:i \ :, ir ' "...t"'; -I'li. ' ;"..-! ..~. , .: ':'~~ .; ~ ~ ;i,.l,' ,r;: ' ¡-o '.' '" ¡, ¡ ::': . ' r:~., . ".'

, .

..

.: . ~, ...

", ,:

..' ~- '!,:-' ~ '.., ~. Ji' ,. , .. :",-j :,1 ' ' .. .. " i:. , .f":' ,..

.:",'I~-"~ì~,:i:;~0~~;fM:,.!Il~ii,:~:'~,t~.î1~lJ~~i~~~~;:~"

:"~?,¡;.

Slrictly Confidential-Not for Circulation/Committee Member~ and Staff Only

'.. ,-..

'..

..

~

, ,

,."

'.:'

:. " . 'i..."

"

I: ~

" '

DB-PSI 00000069

'.".r .¡- ,. ;:~:~ . ~ : ,'.' :~¡~;~;~:?,;; :r..~~~~~. ~~'," p, ., '.~_: ~ , ':'!-.. ~ :; ~ ,.

. , ~I:i"" ,

T"

, ? ~ -, ..' ,,;.~ Î.'. "., .'.......::. ~ ~ : :':.;~?''':A'

I. ,. '.'. 7:- ~

::~:::-~:.~.

~ .' : i .,',-:, ...

. ,

-_._,,--

;. ; ,.'¡' ; ;:. " ,'':', ". "". il;"I;;., ~, - -,"'i~"~',t':",..".!f~~,:i':'~':"'-

umi;on Ja~::.;gi'~W '~eSil GV'J~,U~,~,,'~::":;;~~,!::," .' 'c,; :,,:i¡~; '. ~:"':;i,,::m:,~:;~,~~U~~~,~,~;L~~;~d:.~;~?,

.,.,

, . ¡, ~ ~ ,':.'¡ ~

.. 't'

" P:'

;,

"

~:,"-';','; ,

..

:.:~ ,".

~ ." , .

"¡, ;.'.'

'o::~ '.' ,L"'i: :-!

'".', '","..' .'J: .,

, ,i ' " ~ II

,: ,: ',\i,';.' ';:'i:

',,'"

"i ' ,.: ~: ,; i ..,' I ¡.. ; , to' ~ ~. .:;: l .,j , " .

,.., , . :,"~i"~::c\h :t;),:::,.,~¡".' !',: : ,t;::.

"," -" ",,',,. ~ .. '~ , '.

, ,.. ,

't!.:,. t .:;,'

" ~:,::,.,1,

.,..,. , ..

,,',_..

.. !?::',!:. ,

. .,,;:" '

Strictly Confidential-Not for Circulation/Committee Members and Staff Only DB-PI DDOOOD7D

,,"'._,. " (" :,~'~'~~.:;".'r;,-): '~;~H~~JÎ-.~,t...', ,:,', '.-;'.,1'!' ~ !'..:', ' , I ' ,~".,:'\ :'. j, ", ,." , ~i.;.' ,;: :'/~~\j~;;';: ;,';.;:~:!l';

:1, ~ . ''':' :.~':;. - ;. .~:~,?(~,,¡~¡:'\,,¡,:,i:,,,' . d "~::':¡.\ t.t~ :' , ~'; ,~;" ,'Tr"-'

'.";¡''';'.:' En.

.,., ..

'.-:'~.\:.~t;::."',:

.~:::~ \ ':,l""!'

'.. :".'" ,,- i . .

. . ;". , J ~ ~

:t~ i.;

;-~,,-.: - ."

)¡,'.~~~:f .

''¡., :!:: ; :. ~ ':' ,; " ;

.: ;' ;, ?=; ~. i,: : -t~' :i~ ~.". ','

. ;"-.:!;....':.,1':,t,~;,'

, .

'." t",';

: i

'--"..::~;~!: ;,i,7:'C~:;'1:'?'~'~::.:~_: t~:..,.,~

, .~':h~~,~", -i;:~':: ~ :,:, :';'J,.. ,..,

~ ' ", .::':,

.,r, ':1' ".,-,, . I ,"':: ~:: /,:'.. , , ' ,I I i.,", '." , ~ ".';:~;'\. ~~~:,;'~~:.~ ~:f,:;..;..,' ,""~;: '." ,,:,~"' ,;. ".

"', . .." :"!,;.L't;,, ~,.",., ",,".., ,

':'~,::~;)t,~:':' ',.' ""; :'~. :'~:~';F:~,;r:;'~':)): :;: ,";::r~i. '!t!~;~.;~.i:~ ."'"' '." "1.'" ::,,~~.

: ::'#,~,:;.'. "':',;'" ",',;"" :"~Y):"'..'~.~;,;';d~:".. ,;' :'::"~l~.':.~;:~iHr~:~i;';;:;:,~/t.'

.,' ", );,ir': ':::~~,;~ : i.' ~,. ' c,; 'r\,?~ i:~~~r;~i~~j~~~;, .,~ .., ,',.. . ".==:"l ;':~~,:.." .,.' ", '::: ': 1~6'""¿, ' . ~ T-'~,i' ::,:~~'" r ",' =,:;f.;,', ,"" . ,';.',

. :I.' " '.:.:4 ',! ~r ' : ; ¡; , "!' .

,,::'t';:t,~; , ~".:,;:,¡;'.:r".¡,

. ,,",;. ., ::;L:!~~;:~tt~j~~J~rl:T~1;:~1\;~t~;.'~, : .'.". ~~l:I""'1 'I ~'~~:~,1)~h~'~., :.~~!':~~,;t.~~.::'~.'I'!:"')"'!

. ",,: ;:';; ~~(";::' ,::.,' ..' , "..'1"," 'I, ,~ ." : - ,:-' ~, :':

,/'; :;";

. "

. ',:. '2:~ ~ ;; ï',., '"

"

",..

:."1 ',:f.','-".,.;,.,"::'1- ,~ ', :~~? ,:¡:

',' -', ,:~ ¡:. 'r' _.,-

~

,."J: ~.:,,~,1,::~¡;:,;,.)~;"': \~~~ .'! , ,

:"- .;.'.~';':¡",

,.",'; ','.

, ,'. , ., ~ "

i:', :'~ .,

..-

'-",'i.

, -

,; ;:' ';!': . C..': ~11'. ",,;,~~'~; ,':::,:;,~~~,

,,' .i'r.. !:~:i.. " Ô¡,:;,- ,:;,.i'~.::,.",;: .' ;~', :,', .,,', ; \~;~',,: :~'. ,.,

" ;'~ i :~. ,: ':1:1:

-.'1' 't ~', ,:, , ..

.' :' ~."

.. '; " ,. '. ~;,~ , '.." :,

'I, ,'1-'.' .'.

, '; I¡ ~. '

...,', .,", I '" .".'~~,,~~,:~"':

. ~ .,':!~f~~~;¡t"'.~,.~.'" ,..;1';_' ',,:!~i

:"";J~J,.'",',":";',I'''".''1'1'''''' ""i!- ~, ". .: ':~~"\~,~

.._,, ,

, '..,~i r !,~ ,;~.; " ,. .í;.

-~~';": ¡ Itï-~~,Ï' ';~'

.,;,

..,: : ¡.

, ~.

Striclly Confidenlial-Not for Circulation/Committee Members and Staff OnlyDB-PSI OOOODD71