AOS DISCLOSURE

Customer hereby represents warrants and agrees that, with respect to trading options in its Account(s) (its "Options Accounts"):

33. Risk Factors. Options trading involves a high degree of risk and is not suitable for all investors. Customer is fully aware of the risk inherent in options trading, and has determined that options trading is suitable in light of its particular financial circumstances and investment objectives. Customer is prepared financially to undertake the risks associated with options trading, which may include a total loss of premium and transaction costs.

34. OCC Disclosure; Applicable Rules and Regulations. Customer shall not enter into any purchase or sale of any options contract without having received, read and fully understood the terms, conditions and risks of options trading set forth in the current disclosure document issued by the Options Clearing Corporation ("OCC") entitled the Characteristics and Risks of Standardized Options Brochure. This publication refers solely to options issued by OCC. Each options transaction is subject to the rules and regulations of the OCC, the exchange or market where such transaction is executed, the NASD and various other state and federal regulatory and self-regulatory entities (collectively, the "Rules and Regulations"). Customer shall comply with all such Rules and Regulations, as well as any of AOS and Clearing Broker’s policies, and AOS and Clearing Broker shall handle Customer’s options transactions and Options Account in accordance with the Rules and Regulations.

35. Limitations. Acting alone or in concert with others, Customer shall not exceed the lesser of the position and exercise limits imposed by (i) the OCC or other regulatory or self-regulatory entities having jurisdiction over the exchange or markets in which option transactions are executed, and (ii) AOS and Clearing Broker, in their sole discretion. AOS or Clearing Broker may modify or amend any house position or exercise limits at their sole discretion and without prior notice.

36. Cleared Funds; Customer Responsibilities. In order to process options orders, AOS and Clearing Broker require that Customer’s Options Account contain "cleared funds" equal to or greater than the purchase price of the options. Notwithstanding the foregoing, Customer is responsible for all of its orders, including, without limitation, any orders AOS or Clearing Broker executes to purchase options in Customer’s Options Account even if the Options Account does not contain cleared funds which exceed available funds.

37. Option Exercise and Expiration. Customer must give notice to exercise options pursuant to AOS and Clearing Broker’s current requirements and time limitations. If Customer exercises a "call" option, Customer must meet the Obligations of purchasing the underlying security. If Customer exercises a "put" option, Customer agrees to release the underlying security to AOS or Clearing Broker. The failure to follow these procedures may result in the option expiring worthless, even though it might have a monetary value on the expiration date. When Customer owns an option that is about to expire "in the money," AOS or Clearing Broker may, in its sole discretion or in accordance with the Rules and Regulations, and without notification to Customer, close out the option. AOS or Clearing Broker may take this action in order to prevent an exercise that would require the purchase or sale of the underlying security for which Customer does not have sufficient funds. This is in no way to be construed as an obligation on AOS or Clearing Broker’s part to sell or exercise such options on Customer’s behalf.

38. Prohibited Options Transactions. Unless Customer receives prior authorization from AOS, Customer shall not place trades that are not permissible under the option level for which Customer is approved.

39. Uncovered Options Positions. If any option position in Customer’s Options Account becomes uncovered, AOS or Clearing Broker may, without prior notice to Customer, take immediate action to cover Customer’s position, and Customer shall be responsible for any resulting losses.

40. Special Risks Associated With Uncovered Option Writing. In the event that Customer receives authorization from AOS for uncovered option writing, there are special risks associated with uncovered option writing that expose the investor to potentially significant losses, including, without limitation, the following. The writer of an uncovered call may incur large losses if the value of the underlying security exceeds the exercise price; and the writer of an uncovered put may incur large losses if the value of the underlying security declines below the exercise price. Uncovered option writing is not suitable for everyone. The strategy is only for the knowledgeable investor who understands the risks, has the financial capacity and willingness to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements. If the value of the underlying instrument moves against Customer as an uncovered options writer, AOS or Clearing Broker may request additional margin payments. If Customer does not make such margin payments, AOS or Clearing Broker may liquidate stock or options positions in any one of Customer’s accounts at AOS or Clearing Broker’s sole discretion and without prior notice.

41. SMA Calculations for Options Accounts. Each business day Clearing Broker will calculate the aggregate initial margin requirement for options positions held in the account. Clearing Broker will decrease SMA by the amount of any increase in margin required and will increase SMA by the amount of any decrease in margin required as a result of this daily calculation.

42. Random Automated Allocation Method. Exercise assignment notices for option contracts are allocated among short option positions in accordance with a random automated method of allocation. A more detailed description of Clearing Broker’s allocation method is available upon request.

SPECIAL STATEMENT
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In light of the financial and/or personal information provided by you on your account application, it may be interpreted that based on your 1) age, 2) financial resources, 3) investment experience, or lack thereof, that options trading may be more risky than investments you have made in the past. Therefore AOS, Inc. requests that you execute the following Additional Risk Disclosure:

I ACKNOWLEDGE THAT I HAVE RECEIVED, READ, AND UNDERSTOOD THE OPTIONS RISK DISCLOSURE DOCUMENTS, AND AGREE TO INDEMNIFY AND HOLD HARMLESS AOS, INC. AND ITS AGENTS FOR THE RESULTS OF TRADING IN MY ACCOUNT.

UNCOVERED OPTION WRITING:

There are special risks associated with uncovered option writing which expose the investor to potentially unlimited loss. Therefore, this type of strategy may not be suitable for all customers approved for other types of options transactions.

1. The potential for loss of uncovered call writing is unlimited. The writer of an uncovered call is in an extremely risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price.

2. As with writing uncovered calls, the risk of writing uncovered put options is substantial. The writer of an uncovered put option bears a risk of loss if the value of the underlying instrument declines below the exercise price. Such loss could be substantial if there is a significant decline in the value of the underlying instrument.

3. Uncovered option writing is thus suitable only for the knowledgeable investor who understands the risks, has the financial capacity and willingness to incur potentially substantial losses and has sufficient liquid assets to meet applicable margin requirements. In this regard, if the value of the underlying instrument moves against an uncovered writer’s option position, the investor’s broker may request additional margin payments. If an investor does not make such margin payments, the broker may liquidate stock or options positions in the investor’s account, with little or no prior notice in accordance with the investor’s margin agreement.

4. For combination writing, where the investor writes both a put and a call on the same underlying instrument, the potential risk is unlimited.

5. If a secondary market in options were to become unavailable, investors could not engage in closing transactions, and an option writer would remain obligated until expiration or assignment.

6. The writer of an American-style option is subject to being assigned an exercise at any time after he has written the option until the option expires. By contrast, the writer of a European-style option is subject to exercise assignment only during the exercise period.

NOTE: Upon opening your account you acknowledge that you have read the booklet entitled: CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS and related supplements. In particular, your attention is directed to the chapter entitled Risks of Buying and Writing Options. This statement is not intended to enumerate all of the risks entailed in writing uncovered options.

SPECIAL RISK DISCLOSURE
Options and/or security futures carry special risks and are not suitable for all investors. You should review the OPTIONS DISCLOSURE DOCUMENT and/or the SECURITY FUTURES CONTRACT DISCLOSURE DOCUMENT and endeavor to understand the contents before you fund your account and engage in any trading activity. All option and/or security future trading is based on speculation, whether it is the purchase of Call and Put options, or a security future outright or the naked selling of Call and Put options on a security future.

SPECULATION by definition is a strategy that takes greater than average risk to achieve the potential for greater than average growth, with greater than average volatility. Speculation means that you need to assume greater levels of risk than non-speculative investing. If you cannot assume this greater risk, or if you have a low risk tolerance, then you should not speculate in the options and or security/futures markets. Speculation is reserved for monies that should be classified as risk capital. If you cannot afford to lose such risk capital, then you should not speculate in the options and/or security futures markets.

Using an advisor and/or our services does not eliminate your obligation to understand the characteristics and special risks of options, security futures, and their respective markets. You acknowledge that you will read the relevant industry's disclosure documents, CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS and/or RISK DISCLOSURE STATEMENT FOR SECURITY FUTURE CONTRACTS before you invest any money.

AOS is not an advisory service and cannot recommend or suggest any particular advisor. We are strictly executing brokers specializing in options and futures.