AOS DISCLOSURE

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.