EFTA01353483

The first paragraph under the caption "FEATURES OF STOCK OPTIONS" on page 18 of the Booklet is amended to read: As a general rule, a single stock option covers 100 shares of the underlying security, although in the case of options covering fund shares, options covering 100 or 1000 shares may be available. Other stock options departing from the general rule may be intro- duced in the future. The number of underlying shares covered by any stock option may be adjusted after the option is issued if certain events occur, as described below. The foutth paragraph on page 19 of the Booklet is amended as set forth in Part I of this Supplement. Part IV. Special Exercise Settlement Procedures/Restrictions. Three new paragraphs are added on page 78 of the Booklet at the end of the section headed "8." The new paragraphs read: It OCC determines that the primary market(s) for one or more component securities of an underlying index did not open or remain open for trading, or that the com- ponent security or securities did not open or remain open for trading on the primary market(s), on a trading day at or before the time when the exercise settlement value for that trading day would ordinarily be determined, or that a current index value or other price or value needed to calculate the exercise settlement value for an index option is otherwise unreported, inaccurate, unreliable. unavailable or inappropriate for purposes of calculating the cash settlement amount, then OCC may suspend settlement obligations for exercised and assigned con- tracts of the affected series. In the event of such a sus- pension, OCC will fix a new settlement date after OCC determines that the exercise settlement value is available or after OCC fixes the exercise settlement value. II OCC determines to fix the exercise settlement value, it will act through an adjustment panel that will use its judgment as to what is appropriate for the protection of investors and the public interest. For a description of adjustment panels, see "Adjustment and Adjustment Panels" in Chapter II. The panel may fix the exercise settlement value using the reported price or value of the relevant security or securities or index (i) at the close of regular trading hours (as determined by OCC) on the last preceding trading day for which a price or value was reported by the reporting authority, or (ii) at the opening of regular trading hours (as determined by OCC) on the next trading day for which a price or value was reported by the reporting authority. Alternatively, the panel may fix the exercise settlement value using a price or value for the relevant security or securities or index, or using a combination or average of such prices or values, at or during such time or times that the panel sees fit. 109 CONFIDENTIAL - PURSUANT TODWBCIQI1OSO&f'870 P. 6(e) CONFIDENTIAL SDNY_GM_00184054 EFTA01353483