080305_JPM Series Fix and Win ... - Börse Stuttgart

the value of the Notes or (iv) act as underwriter in connection with future offerings relating to the Index or may
act as financial adviser to the sponsor of the Index or in a commercial banking capacity for the sponsor. Such
activities could present certain conflicts of interest and may affect the value of Index and/or the value of the
Notes.
In the course of the various relationships described above, the Issuer, the Guarantor or any of the Guarantor’s
subsidiaries or affiliates may come into possession of material, non-public information in relation to the Index.
They are under no obligation to disclose such information or relationship to Noteholders.
No Capital Protection following an Early Redemption of the Notes
Other than the first instalment payment in 2009, the Notes may be redeemed prior to the Maturity Date under
other circumstances, in particular for taxation reasons, following an Event of Default or certain Additional
Termination Events. The Early Redemption Amount payable under such other circumstances shall be the fair
market value of the Notes immediately prior (and ignoring the circumstances leading) to such redemption as
calculated by the Calculation Agent in good faith and in a commercially reasonable manner, adjusted to account
fully for any reasonable expenses and costs of unwinding any underlying and/or related hedging and funding
arrangements (including, without limitation any options, swaps or other instruments of any type whatsoever
hedging the Issuer’s obligations under the Notes).
Investors should be aware that such fair market value may be less than 100 per cent. of the Specified
Denomination, and may be less than the Nominal Amount per Note.
No 100 per cent. Capital Protection with respect to the Specified Denomination in the case of an
investment in the Notes after the first instalment payment
If an investor purchases the Notes after the first instalment payment in 2009, there is only the right to receive the
last instalment payment at maturity which will only amount to at least 50 per cent. of the Specified
Denomination. Therefore, such investor will not receive capital protection of 100 per cent. of the Specified
Denomination, instead a capital protection at maturity is limited to 50 per cent. of the Specified Denomination.
Hedging
In the ordinary course of their business, whether or not there will be any secondary market making activities, the
Issuer, the Guarantor and/or the Group may effect transactions for their own account or for the account of their
customers and hold long or short positions in the Index or related derivatives. In addition, in connection with the
offering of the Notes, the Issuer, the Guarantor and/or the Group may enter into one or more hedging
transactions with respect to the Index or related derivatives. In connection with such hedging or market-making
activities or with respect to proprietary or other trading activities by the Issuer, the Guarantor and/or the Group,
the Issuer, the Guarantor and/or the Group may enter into transactions with respect to the Index or related
derivatives which may affect the market price, liquidity or value of the Notes and which could be deemed to be
adverse to the interests of the Noteholders.
Market Value of Notes
The market value of Notes will be affected by a number of factors independent of the creditworthiness of the
Issuer and the Guarantor, including, but not limited to:
(i) the value and volatility of the Index; The value of the Index may vary over time and may increase or
decrease by reference to a variety of factors which may include corporate actions, macro economic
factors and speculation.
Market volatility reflects the degree of instability and expected instability of the performance of the
Index. The level of market volatility is not purely a measurement of the actual volatility, but is largely
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