37 (New) The Sports Authority, Inc. ("TSA") Common Shares

DELAYED SETTLEMENT

OCC will delay settlement of DPT option exercise/assignment activity until the end of "when-issued" trading in TSA, if any, is determined by the New York Stock Exchange ("NYSE").

PRICING

The underlying price for DPT will be determined as follows:

DPT = .37(TSA)

For example, if New TSA closes at 29, the DPT price would be:

DPT = .37(29) = 10.73

In this example, a DPT 10 Call would be $73.00 in-the-money (difference of deliverable value of $1,073.00 and the strike price amount of 10 x 100 = $1,000.00.)

BACKGROUND

On August 4, 2003, Shareholders of The Sports Authority, Inc. ("TSA") voted on the proposed merger with Gart Sports Company ("GRTS"). The merger was approved and consummated. As a result, Gart Sports Company ("GRTS") will be renamed "The Sports Authority, Inc." ("TSA"), and each existing (Old) TSA Common Share will be converted into the right to receive .37 (New) TSA Common Shares. Cash will be paid in lieu of fractional TSA shares.

THE FOREGOING IS AN UNOFFICIAL SUMMARY OF THE TERMS OF THE MERGER, PREPARED BY OCC FOR THE CONVENIENCE OF CLEARING MEMBERS. OCC ACCEPTS NO RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF THE SUMMARY. CLEARING MEMBERS SHOULD REFER TO THE TSA/GRTS JOINT PROXY STATEMENT/ PROSPECTUS DATED JUNE 25, 2003, FOR THE AUTHORITATIVE DESCRIPTION OF THE MERGER AND ALL ITS TERMS AND CONDITIONS.

Pursuant to Article VI, Section 11, of OCC's By-Laws, a panel of OCC's Securities Committee has determined to adjust all TSA options as indicated above (the panel consists of two representatives from the Exchanges on which the affected option is traded (in this case, the American Stock Exchange ("AMEX")), and the Chairman of OCC or his delegee, who only votes in case of a tie).

CATEGORY: CONTRACT ADJUSTMENT
SUB-CATEGORY: ANTICIPATED ADJUSTMENT