market factor or factors. The amount of the payment(s) will either be set at a
fixed amount or fluctuate as the value of the underlying market factor
fluctuates. The underlying market factors are items or variables which are
subject to market fluctuations; for example, interest rates, currency exchange
rates, assets, stock prices, stock index levels, commodities or a combination
of one or more of these factors. Derivatives are normally used either as a
hedging device or as an investment vehicle. Over•the•counter (OTC) derivative
transactions involve numerous risks including, among others, market,
counterparty default and illiquidity risk. In certain transactions, you could
lose your entire investment or incur unlimited loss.
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CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0042326
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