EFTA01353515.pdf

there is no assurance that the exercise settlement date for an accelerated index•linked security option will coincide with the date on which the cash payment to the holders of the underlying security becomes available from the issuer. Covered writers of an accelerated option may therefore be required to pay the cash amount in respect of the option before they receive the cash payment on the underlying security. In contrast to a situation in which the issuer calls an entire issue of index-linked securities, as a general rule no adjustment will be made to the terms of options on index-linked securities in the event of a call of less than an entire issue of the securities. In addition, as a general rule, no adjustment will be made to the terms of options on index-linked securities for any interest payment on the securities. As is the case with equity options, an adjustment panel with respect to options on index•linked securities has discretion to make exceptions to the general rules described above. 5. The following paragraph is inserted new the top of page 58 of the Booklet, after the paragraph inserted by the June 2008 Supplement and immediately before the caption "Risks of Option Holders": The value of an option is affected by the value of the underlying interest. It is beyond the scope of this booklet to discuss the characteristics or risks of underlying interests. If a description or risk factor is mentioned in this booklet with respect to a particular class of underlying interest. you should not assume that the same statements will be made with respect to all underlying interests discussed herein to which they may be applicable. You should look to disclosures made by issuers of underlying securities or information provided by publishers of underlying indexes and to information available from your broker or other sources to determine the nature and risks of the interests underlying the options that you trade. Some underlying interests may themselves involve a high degree of risk. Where the value of an underlying security is based in whole or in pail on the performance of an index, information provided by the publisher of the referenced index, as well as financial and other disclosures made by the issuer of the underlying security regarding the issuers ability to perform its obligations. may be relevant. 165 CONFIDENTIAL - PURSUANT TODEESERL1O508/Y.926 P. 6(e) CONFIDENTIAL SDNY_GM_00184110 EFTA01353515