Free Cross Motion - District Court of Federal Claims - federal

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 1 of 19

IN TH UNTED STATES COURT OF FEDERA CLAIS
ì

l

JZ Buckingham Investments LLC as Tax §

Matters Parer of JBZ Parters, a §

v. §

South Carolina general partership, §
§

Plaiti, §
§

CASE NO. 05-231 T Chief Judge Edward J. Damich

United States of America, §
§ Defendant. §

NOTICE OF DEPOSITION

PLEASE TAKE NOTICE that Plaintiffs JZ Buckingham Investments. LLC as Tax
Matters Parer of mJZ Parers. a South Carolina genera parership, will tae the deposition
of the United States Deparent of Justice, puruant to RCFC 30(b)(6) and 45. The deposition

wil be conducted on April 11, 2007 at 9:00 a.m.. at the offces of McKee. Nelson. LLP, 1919
Main Street NW, Suite 800. Washington. D.C. 20036. or at another location determined by the

pares.
The deposition will be recorded by stogrphic meas and will contiue from day to day

until completed, subject to such adjourents as may be ageed upon by counsel.
The witness is being commanded to testify to the maters set fort in and to produce the

materials listed on Exhbit A to the Subpoena attched hereto.

350828

~ GOVERNMENT

i _EXHIBIT D

I

091

Case 1:05-cv-00231-EJD

Document 137-8

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Page 2 of 19

!

Respeètfuly submitted,
"\ i

BY:Joe~i. ,6!
Texas State Bar No.05144220
M. Todd Welty

Texas State Bar No. 00788642 Michael E. McCue Texas State Bar No. 13494150 Anthony P. Daddino Texas State Bar No. 24036434
MEADOWS. OWENS. COLLIER, REED COUSINS & BLAU, L.L.P. 901 Main Street, Suite 3700 Dallas, TX 75202
(214) 744-3700 Telephone

(214) 747-3732 Facsimile jcrouch~meadowsowens.com twelty~meadowsowens.com

miccue~eadowsowens.com
adaddino~meadowsowens.com
A ITORNEYS FOR PLAINTIFFS

350828

2

092

Case 1:05-cv-00231-EJD

Document 137-8

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Page 3 of 19

'j
I

CERTIFICATE OF SERVICE
I hereby certify tht on Marh 30, 2007, I served the foregoing Notice of Deposition on
the below-listed counsel by certfied mail, retu receipt requested.

David M. Steiner. Esq.

United States Deparent of Justice
Tax Division P.O. Box 55 Ben Franlin Station
Washington, D.C. 2004
Joseph Pitznger, Esq.

Jonathan Blacker, Esq.

United States Deparent of Justice
Tax Division 717 North Harood Suite 400

Dallas, Texa 75201
Attorneys for the United States.

F. Anthony Paganell, Esq. Sommer Barard, P.C. One Indiana Square Suite 3500
Indianapolis, -Indiana 46204
Attorney for Carmel Partners

JOELN. CROUCH

;S,l ,,. ¿__

350828

3

093

Case 1:05-cv-00231-EJD

Document 137-8

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Page 4 of 19

OAOBB (Re. 11) SUBPOENA

Issued by the
')

UNITED STATES COURT OF FEDERA CLAIMS
JZ Buckingham Investments LLC as Tax Maters
Parer of JBJZ Parers, a South Carlina general

SUBPOENA

paership
V.
I
Case Number:

United States of America

05-231 T

TO: United States Department of Justice, aUn: Dennis M. Donohue, Trial Attorney, Tax Division 5554th Street, NW, WasbinØon D.C. 20001

o to testify in the a.bove cae. .
PLACE OF TESTIMONY

YOU ARE COMMANDED to appear in the United States District court at the place. date. and time specified below
COURTROOM

DATE AND TlME

YOU ARE COMMANDED to appear at the place. date. and time specified below to testify at the taking of a X deposition in the above referenced case.
DATE AND TlME
PLACE OF DEPOSITON

McKee Nelson LLP. J919 M Street NW, #800, Washington DC 20036

A l"ill1, 2007, 9:00 a.m.

YOU AR COMMNDED to produce and permit inspction and copying of the following documents or objects at X the place, date and time speified below.

See Attached.
PLACE

I DATE ANDTIME

o YOU ARE COMMANDED to perit inspection ofthe following premises at the date and ti:me specified below.
PREMISES

i DATE AND TIME

Any organization not a par to this suit that is subponaed for the taing of a deposition shall designate one or more offcers, directors. or managing agents. or other persons who consent to testify on its behalf. and may set fort. for each person designated. the person will testify. Federal Rules of Civil Procedure, 3O(X6). the maters on which
i

ISSUING OFFICEl'S SIGNA TUR~D TlT; (INDICATE IF ATTORNEY FOR PLAINTIFF OR DEFENDANn DATE

¿ J" ~ ( ~ Attorney for Plaintiffs 3 . ~ Go .0
ISSUING OFFICER'S NAME. ADDRESS AND PHONE NUMBER

, , i i

Joel N. Crouch, Esq.
901 Main Str Suite 3700, Dallas, TX 75248

(214) 744-3700
i If action is pending in distrct oiler i1an distrct of issuance, slae distict under cae number.

I ¡ I I

094

Case 1:05-cv-00231-EJD

Document 137-8

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Page 5 of 19

A088 (Rev. 1/94) SUBPOENA

"i
.!

PROOF OF SERVICE
DATE

PLACE

SERVED
SERVED ON (PRIN NAME)

MANNER OF SERVICE

Tln.
SERVED BY (PRIN NAME)

DECLARA nON OF SERVER
I declare under penalty of perjury under the laws of the United States of America that the foregoing information contained in the Proof of Service is true and correct.

Executed on

DATE

S1GNATUREOF SERVER

ADDRESS OF SERVER

pa LD ir fo a ii moe lh 100 mil fr !h pI whe t1 pe ..ai... Is
er or re in.c bu&s ii pe. exce \t IU 10 .. pric or
RCFC 45

clase (c) l3i (a) li) cilh. ru. su i pe may In on ID It lr11i Cl \0
in fro ll su pI wi !h slte in wh \h1r ia he. or

Iii) rei6 _sur ~ prvll or cl prolcl maBf and no
Ie) PROTECTION OF PERSONS SUaJECT TO SUBPOENAS.

expt or wa api. or
(w) subjec. a pers \0 un bi.den.

(I I A pa Of an aiiamy responsib lo \h isan ii se 01 a &W sh
!a rea ""ps \0 iioi ïiln i. bu or expns on e peon subjøc \0 '" sib, 1h co on beal ai wi lIe sulJa was issu shn enor lh ~ ii
impose up th pery or iiy in br of ths du an apope sencie whIC may

(B) . . IUbp
(Q requs cI". 01 . lrai se or clhl i: re

in. bUls no iiled 10. lo. earrs an reuon aIomsle.
IZl (A) A person coen LD pr an pen inpectio and co 01 deigale bO, pa. docu Df iaglb hi, Of inopc\ ri priss nn nol

_1Opm or c:lnorlo or
Ii) reul iI of en ii exprt1 opan or waBlID no

desc spIC evenl or oçi in diaiJ an muin li th ex 8\ ma
no alh rest of an pe. or

aw'" in per ii !h pl cl pr or inpe ..ss comand 10 lI far
døposio hBør aln

(ii1 requ i pe 'M is na e pary or an ol__ ci . pa 10 in subon ex to trvel mor lh 100 mIl 10 _nd ll, Ui co ma. to pr I

(B) SIJ \0 pø!l (eI (2) ai ths ru. e pe coandø to pr en
pem. inspectio an co may. wil '4 days afer se ii sub a beor Uie 1\m
speclie for coptiar 11 su ti is leas 11 14 days af serv. .. ~ \h par or

pelln suto .. ofcl by l- ..na. quth or mo lh ...na ... i .. pa ii

wh bell \h ~ is is ii a su i-io \h -i or iniolh
ca be olh.e mel wi un hahi and ..- lh \h pI 10 wh ..
sut Í5 ac-d wi be .... copensa \he coUl mil ardo ""-- Of

aDor døsigd in \h su wri objectio \0 inio or co ci an or el ci
Ui desi9ed mii or ii th prmÍl. 1I obee is m_, Ui pany se \h
su sh no be enle lD Inspct ii Cl mafol ar in th prin Øl
puUlni \0 an or 01 Ui co by 0I \h. su wes Issue, li ob has be mad.. lh pary seMng lhe sub8 may. "" no 10 \h peon cognd to pr.

pr~ on up ipeie coio,

(d) DUIES IN RESPONDING TO SUBPOENA

mo" at or lie far an or to coinl\h pr. Suc an or to coy piio
sh prolec an pen who is no a pr or an ø1_ of a pa frm siiric exp

I I I A pe respo 10 a su \0 pne doen ah pr twm as ih
are kepi in !h usu co ai buss or shn or en lab8thm \0 cies¡ wlh Uie categos in ih deme.
(2) Whn irOlition subect to a sub . wi1d on i clim th I II pr or

resulin from lhe ín an eo coand.
(3) (A) on timely motio. \h ai by whic . supoea wa issu shan qush or modi the supoona i k
Ii) fails tD alow reasable lime lo complince.

si \0 proac as trl prl1 m-iis lt cl shin be mide 8lsa .. stl

be su by . descñ ai ih naure of \h cInls, l:lD or th no

prodce lhel is sulcilo enabl !h demandin pa tD CO" th cI

(M) requires a peon who is no a party or an ofice of a

095

Case 1:05-cv-00231-EJD

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Page 6 of 19

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

.'1

i i J i

Exhbit A

THS SUBPOENA NAM TH UNTED STATES OF AMRlCA AS TH DEPONE.
the Rules of 1. Purua to Rule 3O()(6) of the Cour of

Feder Claims, the UND STATES

OF AMRICA is diected to designate a person or persns to test to Defendat's legal and

factu positions regarding the trsactions at issue in ths matter and that more generaly known
as COBRA Specificaly. the designate person or peons is dirte to testfy as to mattrs,
which include, but may not be limte to:

a. Defendat's legal and fatu position with regard to the issuace ofTreas. Reg. §1.752-6T

on June 23, 2003, and the promulgation of Treas. Reg. §1.752-6 on May 23, 200; the
Treas. Regs. §§1.752-6T and 1.752-6 to the specific application of

above-stled litigation;

whether prior to the issce of these reguation there was substtial autority for the

reportng position that a contigent obligation did not constute a liability within the

meang ofI.R.C. §752; and sepately. whether these reguations were issued to eIÙance
Defendat's litigation position with respet to trsactions described in Notice 2000;
b. Defendant's legal and factu position with regard to Treas. Reg. §1.701-2 and its specific

application to the abve-stled litigation;

c. Defendant's legal and factu position regardig whther each of the sold and purchasd
digita options contrts at issue in ths cae (Atthments i, 2, and 3) are a single option or

investent; and separately, whether for purses of determinig the .'aggrgate amount
invested" under I.R.C. §6707, Defendant is takg the position that each digita option

contrct, such as those involved in ths cae, ar sepaate optons or investments rater than a single option or investent;

349345v.2 (Z)

096

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 7 of 19

d. Th naes of ta advisors and fis th issued ta opinions regardig tractions tht ar
')

the same as, or substtially similar to. those set fort in I.R.S. Notice 2000-4, 2000-2 C.B.

255 (Augu 14.2000) and whose opinons concluded tht there Wa substatial authority.
for, or that tapayers would more-likely-th-not prevail on the merits if chalenged by the

Intern Revenue Servce on, the position tht contigent obligations are not liabilties
with the meang of I.R.C. § 752. Ths reues is limted to those ta advirs or fi

whose opinons Defendt ha rejecte as a basis for the reasonable cause defense to I.R.C.
§6662 penalties;
e. The determtion to impose I.R.C. §6662 penalties in th ca;

f. Defendat's discovery resPonss in the above-stled litigaon.
'Plaitiff

request that the UNIT STATES OF AMRICA provide to Plaitiff at lea seven
the deposition (1) the naes and titles of

(7) days before the dae of

the persons it will designate

to give testmony and (2) suares of the areas in which each designted person will give

testiony.
2. The depsition will be recorded stenogrphicaly and on audio tape. The deposition will be

taen before an offcer authori to admnistr oaths and tae tesony puruat to Rule 28 of
the Rules of the Cour of Federal Claims and will continue from day to day durng reguar
business hours until completed.

349345v.2 (Z)

097

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 8 of 19
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ATTACHMENT 1

098

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Ha-24-1999 18: 14 DETSCJ BA

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Page 9 of 19

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Case 1:05-cv-00231-EJD

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Page 10 of 19
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Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 12 of 19

ATTACHMENT 2

102

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 13 of 19

NOV-26-19' 11:28 JENS &. GILCJ.IST

P.1!16

Deutsche Sank AG New York Branch
Forai,n ~c:bania Dil" Opon Transacton
O& re ein1 li

24 No, 1t1SJ
JZ BUCKINGHA INVEsTENT LLC
Oar. of Davi~ Pars

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Not AIunt:
T iide Dite:

use "0,000,00

23 Movmt 119
In New Yor Par A

TerlnatiOft Date:

22 Diamb 1tH, sublC 10 rnificalÎon in acda Vi the
FoJ Buness Diy Convntion.
EURISD

Busness Days
CllCri Agent
Currency Pair

2. $.~Uo 1 - First DIgit Option T~nsd1on
(i) InItial Excten. Proisions:

par A in Eiane Amount

Part B Ini Eian. Amt
Inital Exçl Date:

Zer
USD 2O,DO,DO

26 No-i 1991, Ilbjec \D adjiMent in acrdan WI'" !ti
Follng B\es 01) Conve/'.

(i F'in Eictnga Proialons:

Part A Fin Exange Amnt par B Finl Exhange Amnt
Fìr& Ra_ Levl: .
Firi Rall o."rmnatin Datp:

USD 49,000,00

Zero

VS 1.0123 pe EUR 1.00

Me th Tana60 Dat

Final Exange Dat:

27 Diabt 1999. IUjeøt to IIctju5tnl in accordance wJl VIi

FoDo BiiineSl Da Colntn.

Ran;_ Lev.1 (au eV(nl bein a "Firs lJ Opln Trir fvnt"). iien upori the oGGnçl of .i.~ Fir$l ~ Opn Trier Ev.. (i Par A lhU par 10 Pa I the Pat A F'in Exane Amiit lId (il) Pai B shal pay to Par A \h Part
B F"inal Eicdiine Arounln dlJln whether a F'it DIl OplTri EVint 1i. OCrrll, . pa IPot ra ihall

(A) If 111 &pl Rate is, on th First Rite DeteintiDn Da.,

1 0:00 ..m. \o11i1N inll Yoi1 Ie. 'lan or equal \0 th Fir

be disregar if it Calclati Agent, ac in good føil codera l\at it wotid not be coly ralOnabl 10 LaU
accunt of it.

(8) Upon th ~Urre of the First Digil Optn Triger Even the Calculati Aga¡t shall no ii othr pa ora (.nd, ~

requ$'d. Ihal confirm su" notic: in wn1ig by tili or tel1) or th ClCCur8l or th FI ~.. Op" Trllir Event

and provide del ci lh otir i: suc Fiil D~R1 Opn Ttlpr EVint A failUre ID giV SU no~ .li no l1i:r. prejdic ... OCCrrt of the Fnt DiQlI OpGoTrlger Eve.
_1'1M ,.

00000233
Z000233
ZOO0233

JZBO03

103

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

t-26-1999 11:29 JENK & GILCHIST
3. $do' - Second Dliilta Opon Transdian

Page 14 of 19 P.B916

-I
!

(i) Il\ni.i Exchnge Prt
.',

Pari A inla' ei Amim Pa a bc:e Oat. Atunt Inil l,wal Ex"l
(ii Fina i:çnane Proisions

Zer

US ".000.0
28 Nceir '111. lUbj to acus in iird wf th

Fo Bu OIl Con
Ze
USD 37.60,00

Part A RNI ~g. AmUl
Fin !x. Di-e:

Pa B FI Euhe ~ Send Ring t.l: .
s.nd Rate DeinlOft Date

USD 1,0'21 ~orEUR 1.0

27 Der i.', st '0 adii in acan w1\ Ih

Mean. fhii Ter Da

l"oIlo 8uMI DI COiw .

(A lithe Spt Ra is, on th $eOQnd ~ia o.rmn D8 at 10: a.m.1o tie in New Yoit I.. \t or eq to the

Slnd Ra" Level (su ev bei a "Se Dlitl 0p TriggII EWn\ Itan upn th oo ti llI BIcI'

DII Oplin TriW_ I!vt (I Part A ch pay to P8/ B th Pa A Fin E~. Am an li Parl B _I PlY \0
eoll reasnab to ta acc of It

P- " lh Pa 8 Fl &cn;e Arln de-i wh a Seco Dll Opt Trlßer Eve hi oc. a

par &Øt ra sh be dIard If ". Calcn ,l~ ad In goo falt casl U'.l i woul not be
(a) UDO h oiinOl of . Se DIit 0p Trler eve the ca AgIl sh I' lb. oter pa ix (and, if reqi-. Sll cordrm su ll in ~ by 1~. or tIecW) of th iinc of ll Se Olgll 0p "raer
Eve tn pi' dl1aill of th, ocei: of 5Lch Secona Dl- Op Trioer Eve A. fae to give suc nolc .haft not

howve pric th ocrr qf ih Se Digital Opn Tri !Vlri
Secl01\ 2 . ~ Prvisions

(I For the purpse. of th Trerion only, the foDwi provisiol\ s,81 ap:

.SubplIraph (i of Sec:n 2 (c) of !h IS For shaD not apply to lie FIr5 Diit 0pl Tractn
and ""e Seciid Digit Opt Tral'a;ton
0",i:15:
(a' The Ofce of Pa A torb Tr.nS8 II New YDrI an

II

(b) The () Df Part B tor 1M Tras-i is Dêre

3. RnrIMntl\ions:

Each part represents fa the other par as of th dati that it ens in ths Tliiacon tht (abnt a wrn ilgf\8MQnt b.twen the iiaits Ihll5li!r impo..s affrmalive obrigatilO U\. comry for th T~niion~
(i) ~"I.ncL It Is icti for LIS ow act, an It ha rn il own Ind8i-det declons 10 antlr into. thli

Tranc:n an 8S to whetr til Tranncon it IDProrlat or prr fo it baiid upon ii ow ju.mc= an upOl

aeN fr", ,uo advise as II ti.. deemed necessar. It is \'ot relyng on any COnIli (wrl or oral) of ti o.ih pe Incud anv alfll or sudiar threo as iistllnt adV or ai a rlcmmencSio to en ii- \hI.

T raClc:tion. it bi:n; ,,"deni\Gd thll ir and clLPionalon *l to lhll ler and co 01 Uils
Transacn sh no ba ccld.- to II' in.nt 3dvÍC or I r.i:mmaatlan to lite into th Tradil\ NO

communition (wn'Un or ora received tr th other part shal be deemed to be an assrance or guau as \0

\li uplCeis 'lSult of th Tl'cton.

........,..

00000234

2000234
ZOO0234

JZB003í

104

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 15 of 19

-,

NDV26-1999 11 : 29 JENS &. G\ LC~) ST P. 10/ i 6
(ii) AsnsSMant anel UndetadIng. It Is caablt of ..g 1M merI Of an13 uiiilr.lniSg (on ii own Dena or

tllt iniipe prfessIOna acM), an uiiclatlal' and xc 1M \eml and cons and i- of II

Ti-dion. It ¡I also çapablt of asumi, and aume, th rlks øl the Tl3nsactn.

-,

(ñlJ St1 Df PartIes. Th otlr pll1 is not øcng as i fiducary for Of advise, to It in fQpeøl 01 th TraslOlotl

4.

ISDA Aiir..ment:

If yeu and we are parltl to alil ar ISOA Inres Rae afl CUflenc Exct8ne AgICDinem (f whic purp He
Tran sn corsli . 'Swp Trac.loni or in ISDA Mate -"ima (In eac ca an "Agre&mnr th Hs
Conl-lon suppl fo pa DI al' is iubl_ct tø such Ageeen If )' and we are no yet parai to ." ..

then ths Cøntin ev."~ . oornpll- and bindin q..m.nt ~n Pa A en Pa B .. to t1e ta øi the
T/'riKtn io whlçl' this ColOn reatS. 1ft 8(lUon Pa A and Par B agre to us aD I'I øtrt pr'1o

neg, _ecu iI de an agreen in th fo ot li ISOA Mu Ag (MullIcuren1D Bo (11l

"lS~ Form") wit sw:h mOlffiCltins liS yl)u iri we WI'" good faD a~ UpO eGCul ~ par A and PI 8 of sUch

al' ag thil COm3n wm wppnt fo pai of. an be sUbjelo th agnl Al ptli..io~ çoln or ini:rpte 'r rere In that agreemen upo It .icçU wi gover this Cot\n. Unti we excut an de tht
agreement, V\ Car1irn, \Ogeler wl al olher doculs rerring 10 th ISD Farm (ea a "Cnfrmni c:
tr leach a "Tliacon") Dntlred Into betl i. tritl aning to !he coiy In .. comø) shall
suppement form a pa ot, 1M be ~ to an agreemen i" thQ form rl th ISOA Form as If we had eø\8 an agret on th Trad Det 0' me first SlJ!\ Trasact betw us iii su form wm- th, Scle ilto 0) iipecity orl tilt (al

\h ge law ii Nt' York Ja ancl (I) Ihe Ten\n CUncy b U.s.. DoUara, (i In Iht add-to the
deUo af'nderMble lu. cOnta in (pe 048 at lJa ISDA "Ulll Gui to the 1992 ISOA Master AlItemen" 81'd

riii) inClraing 8ny oth ~ilicans to thtlSO torm ipelfiid be.

S. Definitio"': Tili dtfi an piovÏSll coed in "'I 1991 lS Defi (as amed by !h '907 Suppl' as puls ~ !h Intrn,onal Swps and Oeifu Asloca\i in nne'S-p Des") and 11 th 19" FX 8f Ci- OpiOn
Del\itons (ih .FX Def' as pullis!1 by the Intllnatlona swps and Derlvat Assoc\i. In, the Ei Mark T.... AsIOÎltin and", Foie Exi:angi Commlb (til -'9M ptfínlll', an loeUW wit ih SwP

De60ns. ite -oefinltions'. are incorporate Il'io th CoI1n- In th IIV.nt of any Îllsnc: betwMn "" Swap
Denilion an llii; Comatin. 'llii Canfirioii wiD ~oyer

DeIl an the 199 Deftins. th 1998 Denl wil gcem. In H e\enl of an incistnc betee ei se of

eric:Hd to \ht puipie and ret\in it to us or by ,enclng 10 us a Itlr or 1elp IUblllally similar lø this 18ne. wtiG let Dr tetec set fort the maæílal term of the Transclon to whiC tlil Conrlln rela and indtes JOur a9~emt to
thse terms.

Ple conllrm that the foregoing corry set fort th ,ar of Qur agrement by ex~ling th coPy cllhs COlon

8)':

=ci: ~ (I
Confirm .. of the date first abov~ wñtln; ,

By: ~ ~~
Tille: 1)~
By:

Narna: ~..'" 'P~

#i~~C
Na :

By:. ~ - -=
ria .

Name:

AUlorised Signato

For any query relating to ws eofirmitin please çonlac:; zi2-4IiQ-40Ji

.,,"t""'"

00000235
Z000235
ZOOO235

i i I i ¡

JZBO3' I
!

105

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 16 of 19

'\
)

ATTACHMENT 3

106

Case 1:05-cv-00231-EJD Document 137-8 NDU-26-199 11:3ß . JÐ-ENS &. GILCHIST

Filed 12/03/2007

Page 17 of 19
P.14/16

ueut~Clltl Dë:lll\~'" 1i.t#YV LULL\ cia.."..

24 Noll, '99

1£

Fetign Exctiiga D1gll8 Opon Tf~cton Our re lnT9A.
.JZ BUCKINGHAM INVESMENTS UO
Cara of DavId p..e

Dtl$ aa A.G .New Vci a,.ri
:n W-l li SlrMt

DB AI.ic Bi
22 West Ad.1M Suit 190 Chicago, IL &050&

Ne VOl NY 100"

312042406020

T.iI 2fl- 14.

FI 212-740

S" DEUT ua 3:1

Ladies and Gentlemiin:

The pul'ose or th leitr rireer (!hIs 'ConliinUQIi Is to conft this tl aid coitons of the FOre" Excng Digitl Option Transactn entered In bltw..n US rPa Ai and you (" B" on the Tf1 Da reBd 10 below (h
ï rensactn~~ Th& parlu ackledge and a; tht B. T. A1x Br has eçd II intrdung brke to Pw A wi

respeclo \hs Tract Th TfIc1n CO of a numbr of ilt/Mas de belO In Se 1. 20) and (i 3(i) and (ii) anQ Se~ 4. C8I øerinlins and pr WI ar ~iic* to more than Ol' elme of the Tranu ar
deted In Sel: 1. Thii trrm of th= Transcton to wh tI Coir re an as fo:

1. $e;ton 1 - General Tenn

NotiO.,ei Amt:
Trade Dat:

USD 50.00.00

23 Nov 1999
In Ne Vor

".rmaiO\' Daa:
9usinc DayS: calc"la~ Agent:

2Z Domb 1999. I\licl \0 mgfjcan in accan wi lte FOl Busne Day eoentln.
P8 A
USDJPY

Currçy Pa

i. Sactlon' - Fir-t Digit Optio" Tranaai;on
Ii) Inital Exrie Prosions:
?'art B Iniait Exclng. Amun
Part A IniUal EKnge Amoun

Ze
usa 25.0C.DO

Initial Exnge 0.,.:

26 Novein 1999. 5Ujec1 10 adjuent in acce wi !h
Folo BUilnR 0.)' Cove1in.

(íí) Final Exange Prvision:

Part A Final Exclnge NnOlrit:
Part 8 Anl Exi:hlng8 Amount Fir Range Level: FII Rat Determinatin Dtte;

USD ~O,OOD,OO

Zøiv JPV 108.19 par USD 1.00

FInal E.hang8 Date:

Means .. Temn Dat 27 Dec 199, .u~ to adustmet in lççonance wi ih
FoI Bi.. Da Contin.

Rrs! Range Levil (such evtn bllr . "F"im Di;il Opcr TriggBl event. it upon \h OCCrrDe or cun Am DigItal Option Tn98er even ti) Pai A ChIt pay 10 Part" 1M Part A. Fla' !xge AiL/ and (Ø) P1 B 5haU par to Pa A
tte Party 9 Final Exi:ngi Amunlll\ deting wti l F"iI Digil OpUol\Triger Even has oc. a pliit sp

(A) If th Spot Rate is. on th First Rate Detrm.,aIn Oate at 10:00 a.m. loøJ tim In New Vor~ gretei tha or ,qu to the

taU! i;hill bi disrlrec if the CauIn Agen ac in flood flil coid." tht it WQuld nCl be colI11 resonb1e 10 t1ke a~unl of it

(e) Upon the OCCiMnce of th FI D1gii Opli Trigg Event h CJlculin Agent ShaH noiil)1I oir pa olil) Cando If

rel!, shaD confirm suoh I1tiçe '" wr by .I8 or -l of the oinc olli ir Di"i Opt TtI Ev

31'd prvie details of th occ or suc Flt 0_ 0ø TrlDD Eve. A. falure to gie SUCh noti sl no nor.
p,.juisic thi DCCrrDnCl of \h Firt Diit OpnTrlgger Event

_Tl'l
00000236
Z000236
Z000236

JZB0037

107

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 18 of 19
P.1S/16

NDU-26-1999 11:31 JENKNS &. GILCHRIST

i. Sicton' - S.~nd Dig OpUon Trsacton
(I) tl\lial Exchan!ll Pro

Part A inl ~I\.nglt Am Panv B 1rû1 ~. Amnt
Inl"a! Exnge Date

usa 23,750,00

Z_

28 Novemr 1_. su to .d) In acrd wi th
Follg Busl Oay ConUoti

(iil Fina Exange Prons:
Pii A Flnal!' Amunt
s.nci Rang Lwe:

Zem
USD 4B,&7&OO JPV 108.1 pe US '.00

Pa B Flno Eilfe Aium
Send Ra l)lin Date:

Fina Exe D..

M8M 11. Tenin 08
27 o.mtr 18911. su.= to adjent in acan with th

FoR blnas Da Co

1h Secori Ra Leellsll eve be . -Sed Dl Opn Trlgg.r Even). 1l upon !h ocrrnc of su Be/1
Digitl Opn Tilii.. Evt. (I Plrl A _, pay 10 PaI1 B th i'rl A FI Ei. .l an (I) P-l B .. PlID

(A. If 1M Spot R: is on _ Seci Ra Detinn1l Date at 10:00 Ln' io lime in Nw Yor gittr tIri or IIUIID

Part A til Part 8 Fl Exi .lun In dein whtr a se Dll Op Tii !'n ha oc. · plrcu IP i- shag be diarid if OIL Calction AQIr Kl In go falh çanser th it wold no be eo rasnae to la GC of i1 . .
(8 Upon the oc or. Se Dilbi O.n Trlgiier Even tt Calcla Alen sñ no1l th O(r pa ~ (anii.
if I'QUesled. st conf ivch nom In wr by .. or teW) I)f V\ oc/len of Ui St DI Ol' Tri. e".nt and pi dels of th ocrrnc of su Sec Diit Opn Trlege Eve A fail to 9Jv su no -i net
hower l)reiudi it occe of ""e Secnd Digitl Op TrigSI Evtn

Sicton 2 ~ Othir Pro5Ïonl

(I) For the purp 01 t1is Transn only, th follng pnivi sh8lipp:.
.Subi:ngra (B of SaIo 2 (el of tie ISDA Form Shll not aøly io 1h F"ir Diita Op Tracton

and IIt Sec Dila aplcn Tl'cln.
Ofcei:

(ii)

(a) The 0f of Part A. fo th Trctn Is New Yor: and

(b) The or 01 Part B Tor th Tl'n is Oeware.
3. Rapruentaons:
Eaen ~art 18p'N-ani to th othr par as of thi da 1M II Ittars into ths T~ct., tI (a~ll a wrlin agenl
between the pa thaI exrely Impases aIrmllle obliatins 10 i¡ i:tr fo this Transactn):

(i) Non.Rell II ii aC fa li r: aint and II ha ma it ow ineplNdent dølons to ente in thiS

Tral\actlOl\ an . to wlet tie Transctn Is appiprl Dr prper b it ban up" lt$ ow judement in upon

adice frm su~ IdYri as it 1\" -li( MOIy. I ÏI no røly on any cona1in (w or ora or the

othir p~ IndU an atfJlaie or subsar th II Ilweslinll/ or 8. I recmmndllcn 10 ente Hø Uiis

Tra, It be IMder~d ihat Wolin end expliilina ral:te to lh ta anc coitns of th

Tra shaD not bi conJied ~ be inv,slmenl adv or a remmii1in to anter inlD thi TraslC. No
camrunat (wr or oral) reeiv fr th other pii .hi' bi deltmed to bt .11 accurl'e or gUlUmee aii \0

'hi IXJil m\ ofth$ Tranpcton.

_.."'~

00000237

2000237
Z000237

JZB00377

108

Case 1:05-cv-00231-EJD

Document 137-8

Filed 12/03/2007

Page 19 of 19

NO26-199 11:31 JENEN &. ûlLORIST P.1lY16
(Ü) Au..men an Vndersclng. . ii Clpa of aue !h meri of an unAtandili (on it ow behal Dr

thh Indeende pi-na .m). and untBs Md ~ lhi te and cond". IId rlb of lh~ Trtøft It l. al i-pa of aiiumin. and i- the rik$ oIlh TJ8ct

"\
J

(Pi) Sl.tus of Parae.. The Ollll pa it no '~ns as II Iduclll fo or ilcM$C 10 /I in i- of li Trac;.

4. ISDAAgemen:
Tl'fn ih c:li a -SW Tra&Il') 01 ar ISA Mar Agreemen (in eii cai. an '~tmnr li this

If yo and we at pa to eIlher an IS lni Rate and Cucy !inge Agement (f wh puses th~ Con Ilpp form pa of an ÎIIUbj10 au Agnt If you and we are not yet par to In .lnt "''' Ih CO flnc a OCmptt an bi .. b8n Pa A IC par B as to th te of Ihe Tran ID whiC ih Ccrm re.. In adn P.." A and P8 B agrei10 us aD resonale ~ IØII to
"IDA Form") wlU su moll as )'u and we wI/in gDOd f8~. Upo ixecin by Par A ia Pa S 01 su an agret. ti Confl wi SUPl8nl fonn p; of. and be lubecllD ih agrenL AI prlo i;ntlnei or

neti eu ar del aft lDen In "'I 10mi of it. isOA Mastr ADeemenl ~IUCr Bo (t

inrpia by re in !h agt llpo It euon wi gOlirm this Contdon. Unt WI exe ~ d*t tht
agrill th Cont. toea Wi al olhr dawm.nla rererrin 10 the 1SD Form (each . "Cnf~ coin;

ircls (ea a "Tracli end ii ~ UI (notw any tQ th coht In a Co) chaD
suøJe fo 8 pa of, and i) subct 10 an 8Dmenl in Ui 'orm of

!h ISDA For 8S if w. haci execute an agent

on 1b1 Tnld8 Dale Ð' til ii IU TraaQ" bltw..n US In au l' wi the Schedule Ilere (I ip or ai (a) th goveing Je i. New Yor law an (b) Ui Teron eußO Is U.s.. !;Rara, (i inflra th addin 10 1h

deflln of -Inemniiible Tax. cotained in ~e 48 01 the ISD -Viar G~cI. Ia thii '\98Z ISOA Mar AgØlln1 and
(Hi) inrprati. an olhr mDØna to !h ISDA lor søeci below.

5. DeftOl:
The dani'1on an pr coed In the ,¡g, ISDA Deiil (al amel\td by th. 1997 Sippimerit) Il publllld by

th Inletin81 SW and Deat\ Atsoclll, in (the "Sp Dlfl'i ,nd i" the 199 FX iinI C:lT~ Op
Oefnl (t "fX DøItir sa pu by th .lnrnl Swap and Deaties Asat. Inc. !h Emin
Mai\et Tradl,. Asat ii"d n. Forl\ Ex.ii eoiimie (th .,ee, CeIl". an tog""'" wi li Swp

~lW. th -Dafnllcis"). ire \not8lelnlD 1h Conl. In the went () an InCO$lV beeen th swp Olllion an II. 1ag8 Dens, th 199 Dall wil goøm. In thi evt of an incisnc beten e1thr ut of
o.nltoni .nd ttla ConfiMntion.1h Contatì wiQ IIltet.
Ple confirm that th fore coc1 sels fort ih term of wr agreement by .xc~Llng ihe copy of th Coliti

th te.

end ki lIal pii~. am reng it Ie i. 01 by Ieldi to us a leter or telX subitantlly similar to th ler. whah leer or le Hts fort the rntiilllerms of \i Transadi to which ths Connrmll rerateR and indïcs yo agrøtm '1

Nae: pUA'" Tille: \)UC.+Çonfrmd as 0' \he dale tlrs abae writ:
JZ auc SHA iNVSTENTS lLC

Bv: ç~
Nae:
By:

-.

AUried Signatory

For any query relaling to ths Confltlcm please etmtact 2'\-469-03J

TDTtl P.15

00000238 2000238
ZOO0238

JZBO037

.109