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EFTA01353499

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a merger or consolidation, binary stock options may be adjusted so that the cash. securities or other property received by stockholders with respect to a single share of that underlying security becomes the underlying interest. Alternatively. an adjustment panel may determine to fix a value for some or all of the non-cash property received. Where holders of an underlying security receive only cash or an adjustment panel determines to fix a cash value for all non-cash property received, the aggregate per share value received, as determined by the adjust- ment panel, will become the exercise settlement value. trading in the options will ordinarily cease. options that are out of the money will become worthless, the expira- tion date will ordinarily be accelerated, and options that are in the money will be automatically exercised. No adjustment in the fixed settlement amount will be made to reflect the accelerated expiration date. As in the case of other stock options, any adjust- ment decision with respect to binary stock options will be made by an adjustment panel as described above. The adjustment panel has discretion to make exceptions to the general rules described above. The first paragraph on page 23 of the Booldet under the caption 'About indexes" is replaced with the follow- ing paragraph: As referred to in this booklet, an index is a measure of the prices or other attributes of a group of securities* or other interests. Although indexes have been devel- oped to cover a variety of interests, such as stocks and other equity securities, debt securities and foreign cur- rencies, a-id even to measure the cost of living, the fol- lowing discussion relates only to indexes on equity secu- rities (which are called stock indexes in this booklet) and indexes that are intended to measure the predicted vola- tility of specified stock Indexes (which are called volatility indexes in this booklet) and options on such indexes (Including binary index o

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