EFTA01393173

The paragraph numbered 3 on page 60 of the Book- let is replaced with the following paragraph: 3. Prior to the period when a European-style option (including a European•style delayed start option), a capped option, or an American-style delayed start option is exercisable. the only means through which the holder can realize value from the option (unless the capped option is automatically exercised) is to sell it at its then market price in an available secondary market. If a secondary market for such an option is not available during the time the option is not exercisable, it will not be possible for its holder to realize any value from the option at that time. The paragraph numbered 5 beginning at the bottom of page 60 of the Booklet is replaced with the following paragraph: 5. The cotrts, the SEC, another regulatory agency, OCC or the options markets may impose exer- cise restrictions. OCC and the options markets have authority to restrict the exercise of options at certain times in specified circumstances. The options markets often exercise such authority with respect to an option in which trading has been hafted. If a restriction on exercise is imposed at a time when trading in the option has also been halted, holders of that option will be locked into their positions until either the exercise restriction or the trading halt has been lifted. The following paragraphs are inserted immediately following the caption -Risks of Option Writers" on page 62 of the Booklet: The risks discussed in paragraphs 3, 4, 5 and 10 below apply to writers of non-binary and binary options, but the risks discussed in paragraphs 1, 2, 6. 7. 8, 9 and 11 are inapplicable to writers of binary options. Special risks of binary options are discussed below under the caption "Special Risks of Binary Options (Other Than Credit Default Options)." The risks discussed in paragraphs 5, 9 and 10 below apply to writers of range options, but the risks discussed in paragraphs 1, 2. 6, 7, 8 and 11 do not. Although some of the risks discussed in paragraphs 3 and 4 apply to writers of range options, these risks are separately discussed below under the caption "Special Risks of Range Options" because range options we of a single type (rather than consisting of a put class and a call class) and have a unique payout structure. 136 CONFIDENTIAL - PURSUANT TOCRESDR11O8096621 P. 6(e) CONFIDENTIAL SDNY_GM_00244805 EFTA01393173