Notes subject to early redemption. Each of the Issuers has the option, if so provided in the applicable Final Terms, to redeem the Notes issued by it, under a call option, a make-whole call option or a clean-up call option, as provided in Condition 6. With respect to the Clean-Up Call Option, there is no obligation under the Terms and Conditions for the relevant Issuer to inform investors if and when not less than 75 per cent. of the Notes of the same Series (including any further Notes issued pursuant to Condition 17) have been redeemed or purchased by, or on behalf of, the relevant Issuer and cancelled, and the relevant Issuer's right to redeem will exist notwithstanding that immediately prior to the serving of a notice in respect of the exercise of the Clean-Up Call Option, the relevant Notes may have been trading significantly above par, thus potentially resulting in a loss of capital invested. In addition, each of the Issuers may redeem the Notes issued by it in whole but not in part, further to the occurrence of certain withholding tax events described in Condition 7. Any optional redemption feature where the relevant Issuer is given the right to redeem the Notes early might negatively affect the market value of such Notes. During any period when the relevant Issuer may elect to redeem Notes, the market value of those Notes generally will not rise substantially above the price at which they can be redeemed. This also may be true prior to any redemption period. Furthermore, since the relevant Issuer may be expected to redeem the Notes when prevailing interest rates are relatively low, an investor might not be able to reinvest the redemption proceeds at an effective interest rate as high as the return that would have been received on such Notes had they not been redeemed. As a consequence, the yield received upon redemption may be lower than expected, and the redeemed face amount of the Notes may be lower than the purchase price for the Notes paid by the Noteholder. As a consequence, part of the capital invested by the Noteholder may be lost, so that the Noteholder in such case would not receive the total amount of the capital invested. In addition, investors that choose to reinvest monies they receive through an early redemption may be able to do so only in securities with a lower yield than the redeemed Notes. All of the above may reduce the profits potential investors in the Notes may have expected in subscribing the Notes and could have significant impact on the Noteholders.
