Message-ID: <9997094.1075857862454.JavaMail.evans@thyme> Date: Thu, 9 Nov 2000 07:01:00 -0800 (PST) From: support@datek.com Subject: Datek Online Margin Call (KMM4744530C0KM) Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: !support X-To: X-cc: X-bcc: X-Folder: \Larry_Campbell_Dec2000\Notes Folders\Discussion threads X-Origin: Campbell-L X-FileName: lcampbel.nsf Dear Datek Online Customer, The equity in your account has fallen below margin maintenance requirements, creating a Margin Maintenance Call (or "House Call") as of November 8, 2000. Amount Due: The house call is for $ 1836 Date Due: This call is due by the close of business on Monday, November 13, which will be Day 3 of the house call. Please be aware that Friday, November 10, 2000 is a bank holiday. Banks will not be open to wire transfer funds. If you plan on funding your account to meet your margin call, please wire funds to Datek Online prior to Friday. Once you have wired your funds remember to have your bank provide you with a wire receipt containing a federal reference number. Datek Online only accepts a faxed copy of the wire receipt including the federal reference number as proof of funds forthcoming. Please fax your wire receipt to 732-744-9143. If you choose to overnight a check to Datek Online, please confirm with the carrier that they will be delivering on Friday. U.S. Post Offices will not open and will not be delivering mail on Friday November 10, 2000. The call requirements can be satisfied by: 1. Depositing sufficient funds into your account to satisfy the entire amount of the call. 2. Selling sufficient securities in your account to satisfy the entire amount of the call. 3. The market value of your portfolio appreciating above equity requirements. What you should do: A margin call requires you keep a watchful eye on the value of your portfolio. Be mindful of market fluctuations in your portfolio and how they affect your account. A margin call is payable on demand, and rapidly depreciating market conditions may require immediate action involving liquidation of sufficient securities in your account to satisfy the call without further notice from us to you. Taking the necessary steps to satisfy the house call can avoid this. This margin call must be satisfied by the close of the market on Monday, November 13. You should immediately decide which call payment method is best for you. Do not delay in satisfying the call. Please take immediate action to satisfy this call prior to the close of the market on Monday, November 13, 2000-DAY 3. If your account does not meet margin equity requirements as of the market open on November 14-DAY 4 we will be forced to take action to satisfy the call by selling some or all of your portfolio. Sending Additional Funds to Meet Your Margin Call The amount stated above is the amount of the call that may be met by depositing additional funds (cash) into your account. The fastest way to deposit funds is to send a wire. If you choose to wire funds you must: 1. Fax a copy of the wire receipt 2. Include the federal reference number of the wire 3. Fax to 732-744-9143 Important Note Datek Online only accepts a faxed copy of the wire receipt including the federal reference number as proof of funds forthcoming. If you choose to send a check by overnight mail you must: 1. Include your UserName and account number on your check 2. Mail to: Datek Online Attn: Cashiering Department - Margin Call 100 Wood Avenue South Iselin, NJ 08830-2716 Important Notes: ? We do not accept an air bill number, a copy of a check or phone or email confirmations as proof of funds forthcoming. ? We must receive and credit funds sent by overnight check by the close of business on Day 3 for your margin call to be met. Click here for more information on account funding options Liquidating Positions to Meet Your Margin Call In order to liquidate enough stock to meet the initial amount of your margin call you must do the following: 1. Determine the margin requirement for the position you wish to liquidate. Stocks with special margin requirements can be found on our HelpDesk under "Your Portfolio" and "Margin Maintenance" or by using the following link: http://www.datek.com/helpdesk/margin.html 2. Divide the amount of the margin call by the margin requirement for the position you wish to liquidate. This is equal to the dollar amount of the security you must sell to meet the initial amount of the margin call. Example: The amount of the margin call is $1500. To determine the dollar amount of a security you must sell to meet this margin call divide $1500 by the margin requirement for the stock you wish to liquidate. If the margin requirement is 30% (.30) you must sell $5000 worth of the position. If the margin requirement is 40% (.40) you must sell $3750 worth of the stock. Your Call Could be Satisfied Through Market Fluctuation Margin calls are calculated after the close of business on a daily basis using the closing prices for each day. In order for you to meet your margin call through market fluctuation your account must close the traditional trading day above the minimum margin maintenance requirements. This must be done by the close of November 13-Day 3 in order for the call to end. Intra-day market fluctuation will not suffice in meeting your margin call. Please do not assume your call will be satisfied because stocks in your portfolio are "bound to go up". All stocks are subject to market volatility. There are no guarantees that a stock price will rise or assurances that a stock will not decline. Furthermore, your stocks could decline further, creating an even larger margin call. Once again, do not "bank" on market fluctuation. Consider all factors, including your risk tolerance, to take a realistic view of how to handle the margin call. Account Equity and Additional House Calls Depending on the securities you are holding in your portfolio and their market fluctuations, additional funds may be due or actions that are separate from this margin call may be required. This may result in a second house call. The key is to understand the equity requirements and ensure that your account is meeting them. We may request additional margin maintenance due to: ? A further decline in the market value of your positions. At that time you may meet a margin call only to be issued a second one because the equity in the account has declined below a point where the initial margin call no longer brings the account to the acceptable equity level. In these instances, meeting the initial call may give you additional time to meet the second call but the account must be returned to the required equity ratio. ? Any undue concentration of one security in your account. Needless to say, selling out an account is something we don't like to do at Datek Online. We want you to be aware of the status of your margin account at all times, and be prepared to take action as soon as conditions warrant. Be fully aware that if at any time your account value falls to approximately 10% equity, or if market conditions warrant, we reserve the right to close out some or all of your positions with or without notice, at our sole discretion. You should review our HelpDesk to check equity requirements. If you have any questions please send email to support@datek.com or call Customer Support 24 hours a day, 7 days a week at 1-800-U2DATEK. Please call 1-732-635-7500 if you are calling from outside of the United States. Sincerely, Customer Support Datek Online Brokerage Services LLC Member NASD/SIPC