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Investment Bank

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Equities Trading Analyst Single Stock and Options Disclosure

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This communication has been prepared by Barclays Capital Inc. (together with its affiliates, "Barclays"). Any views and commentary in this communication (together, “Views”) are short-term views of the Barclays Trading and/or Distribution desk from which it originates (the “Authors”). This communication has not been produced, reviewed or approved by Barclays’s Research Department and is not Investment Research or a Research Recommendation.

The Views are not objective or independent of the interests of the Authors or other Barclays Trading and/or Distribution desks, who are active participants in the markets, investments or strategies referred to herein. Barclays and its associated personnel may at any time acquire, hold or dispose of positions (including hedging and trading positions and performing or soliciting investment banking or other services) which may impact the performance of a product described in the Views.

The Views are not a personal recommendation and do not take into account whether any product or transaction is suitable for any particular investor. You should obtain independent professional advice before investing or transacting. Barclays is not an advisor and will not provide any advice relating to a product. Before making an investment decision, investors should ensure they have sufficient information to ascertain the legal, financial, tax and regulatory consequences of an investment to enable them to make an informed investment decision.

This communication is provided for information purposes only, is subject to change and is not binding. Any pricing included in this communication is indicative only. Barclays is not offering to sell or seeking offers to buy any product or enter into any transaction. Any transaction requires our subsequent formal agreement which will be subject to internal approvals and binding transaction documents.

Barclays is not responsible for the use made of this communication other than the purpose for which it is intended, except to the extent this would be prohibited by law or regulation. Barclays is not responsible for information stated to be obtained or derived from third party sources or statistical services.

Any past or simulated past performance (including back-testing) contained herein is no indication as to future performance. Barclays makes no representation as to the accuracy, completeness or reasonableness of any performance data, modeling, back-testing or scenario analysis in these materials. This communication is being directed at persons who are professionals and is not intended for retail customer use.

Barclays Capital Inc. is a U.S. registered broker/dealer affiliate of Barclays Bank PLC and a member of SIPC, NYSE, FINRA and NFA. Barclays Capital Inc. operates out of 745 Seventh Avenue, New York, NY 10019. Where required pursuant to applicable U.S. laws, rules and/or regulations, Barclays Capital Inc. accepts responsibility for the distribution of this document in the United States to U.S. Persons.

IRS Circular 230 Disclosure

Barclays does not provide tax advice. Please note that (i) any discussion of US tax matters contained in this communication (including any attachments) cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the Views addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

Options Disclosures

Prior to buying or selling an option, please read the Characteristics & Risks of Standardized Options available at:

OOC websitehttp://www.optionsclearing.com/about/publications/character-risks.jsp

Options, structured derivative products and futures are not suitable for all investors as the inherent risk may expose investors to rapid and substantial losses. Trading in these instruments is risky and may be appropriate only for sophisticated investors. Various theoretical explanations of the risks associated with these instruments have been published.

Risks associated with specific Option Strategies include:

• Call or put purchasing: If you buy options, the maximum loss is the premium

• Uncovered call writing: If you sell call options, the risk is unlimited

• Uncovered Put Writing: If you sell put options, the risk is the entire notional below the strike

• Call or put vertical spread purchasing (same expiration month for both options): Risk is limited to the premium paid when the position is established

• Call or put vertical spread writing (same expiration month for both options): Risk is limited to the difference between the strike prices less the amount received in premiums

• Call or put calendar spread purchasing (different expiration months & short must expire prior to the long): Risk is limited to the premium paid when the position is established

• Risk Reversals (buy 1 put, sell 1 call at a higher strike) – if you are long the put and short the higher priced call, risk is unlimited, if you are short the put and long the higher priced call, the risk is the entire notional below the strike

• 1x2 call spread (buy 1 call, sell 2 calls at higher strike) – if you are long the lower strike and short the two higher strikes, risk is unlimited, if you are short the lower strike and long the two higher strikes, risk is limited

• Butterflies/Condors (sell 2 calls, buy one call at a higher strike, buy one call at a lower strike) – risk is limited for both buyers and sellers

• Straddles/Strangles (buy a call and a put) – if you are long the call and put, risk is limited, if you are short the call and put, risk is unlimited

• Call Ladders (buy an ITM call, sell an ATM call, sell an OTM call) - If you are long the ITM call and short the ATM and OTM calls , risk is unlimited, if you are short the ITM call and long the ATM and OTM calls, risk is limited

• Put Ladders (buy an ITM put, sell an ATM put, sell an OTM put) – If you are long the ITM put and short the ATM and OTM puts, the risk is equal to the entire notional below the lower strike plus any premium paid, if you are short the ITM put and long the ATM and OTM puts, the risk is limited

Additional strategies can be constructed using combinations of the strategies described above. A combination is at least as risky as its most risky, uncovered component. For example, the risk of selling a combination containing an uncovered call option is unlimited and may result in losses significantly greater than the premium received. Before buying or selling a combination, the investor must make certain to understand each component of the combination and which, if any, components are uncovered.

The actual profit or loss from any trade will depend on the price at which the trades are executed. Because of the importance of tax considerations to many options transactions, the investor considering options should consult with his/her tax advisor as to how taxes affect the outcome of contemplated options transactions.

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