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Important Information
Investment Management Division
Goldman Sachs

Options. Options involve risk and are not suitable for all investors. The purchase of options can result in the loss of an entire investment and the risk of uncovered options is potentially unlimited. Please ensure that you have read and understood the current options disclosure document before entering into any standardized options transactions. The booklet entitled Characteristic and Risk of Standardized Options can be obtained from our sales representatives or at http://www.theocc.com/components/docs/riskstoc.pdf. Transaction costs may be significant in option strategies that require multiple purchases and sales of options, such as spreads. Supporting documentation for any comparisons, recommendations, statistics, technical data, or other information will be supplied upon request.

• Buying Options - Investors who buy call (put) options risk loss of the entire premium paid if the underlying security finishes below (above) the strike price at expiration.
• Selling Options - Investors who sell puts risk loss of the strike price less the premium received for selling the put.

OTC Derivatives. To understand clearly the terms and conditions of any OTC derivative transaction you may enter into, you should carefully review the Master Agreement, including any related schedules, credit support documents, addenda and exhibits. You may be requested to post margin or collateral at levels consistent with the internal policies of Goldman Sachs to support written OTC derivatives.

Prior to entering into an OTC derivative transaction you should be aware of the below general risks associated with OTC derivative transactions:
– Liquidity Risk: There is no public market for OTC derivative transactions and, therefore, it may be difficult or impossible to liquidate an existing position on favorable terms.
– Risk of Inability to Assign: OTC derivative transactions entered into with one or more affiliates of Goldman Sachs cannot be assigned or otherwise transferred without Goldman Sachs’ prior written consent and, therefore, it may be impossible for you to transfer any OTC derivative transaction to a third party.
– Counterparty Credit Risk: Because Goldman Sachs may be obligated to make substantial payments to you as a condition of an OTC derivative transaction, you must evaluate the credit risk of doing business with Goldman Sachs. Depending on the type of transaction, your counterparty may be Goldman Sachs & Co. LLC, a registered U.S. broker-dealer, or other affiliate of The Goldman Sachs Group, Inc. As a broker dealer regulated by the Securities and Exchange Commission (“SEC”), Goldman Sachs & Co. LLC is subject to net capital, financial responsibility rules, and other regulatory requirements designed to protect customer assets. Other subsidiaries of The Goldman Sachs Group, Inc. may not be registered as a U.S. broker dealer and therefore are not be subject to similar SEC regulation.
– Pricing and Valuation: The price of each OTC derivative transaction is individually negotiated between Goldman Sachs and each counterparty and Goldman Sachs does not represent or warrant that the prices for which it offers OTC derivative transactions are the best prices available. You may therefore have trouble establishing whether the price you have been offered for a particular OTC derivative transaction is fair. OTC derivatives may trade at a value that is different from the level inferred from interest rates, dividends and the underlyer. The difference may be due to factors including, but not limited to, expectations of future levels of interest rates and dividends, and the volatility of the underlyer prior to maturity. The market price of the OTC derivative transaction may be influenced by many unpredictable factors, including economic conditions, the creditworthiness of Goldman Sachs, the value of any underlyers, and certain actions taken by Goldman Sachs.
– Early Termination Payments: The provisions of an OTC derivative transaction may allow for early termination and, in such cases, either you or Goldman Sachs may be required to make a potentially significant termination payment depending upon whether the OTC derivative transaction is in-the-money at the time of termination.
– Indexes: Goldman Sachs does not warrant, and takes no responsibility for, the structure, method of computation or publication of any currency exchange rates, interest rates, indexes of such rates, or credit, equity or other indexes, unless Goldman Sachs specifically advises you otherwise.

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