AVVISO n.19643 07 Novembre 2007 SeDeX − INV. CERTIFICATES

AVVISO n.19643

07 Novembre 2007

SeDeX − INV. CERTIFICATES

Mittente del comunicato : Borsa Italiana

Societa' oggetto dell'Avviso

: SAL. XXXXXXXXX XX. & CIE.

Oggetto : Inizio negoziazione Investment certificates − classe B "Sal. Xxxxxxxxx xx. & Cie. KGaA" emessi nell'ambito di un Programma

Testo del comunicato

Si veda allegato.

Disposizioni della Borsa

Strumenti finanziari: “Butterfly Certificates on DJ EUROSTOXX 50”

(DE000SAL5B31)

Emittente: Sal. Xxxxxxxxx xx. & Cie. KGaA

Rating Emittente: Società Long Data di Rating Term Report

Fitch A 07/02/2007

Oggetto: INIZIO NEGOZIAZIONI IN BORSA

Data di inizio negoziazioni: 9 novembre 2007

Mercato di quotazione: Borsa - Comparto SEDEX “segmento investment certificates

– classe B”

Orari e modalità di negoziazione: Negoziazione continua e l’orario stabilito dall’art. IA.5.1.6

delle Istruzioni

Operatore incaricato ad

assolvere l’impegno di quotazione: Xxx. Xxxxxxxxx xx. & Cie. KGaA

Codice specialist: 1866

CARATTERISTICHE SALIENTI DEI TITOLI OGGETTO DI QUOTAZIONE

“Butterfly Certificates on DJ EUROSTOXX 50” (DE000SAL5B31)

Quantitativo minimo di

negoziazione di ciascuna serie: vedasi scheda riepilogativa delle caratteristiche dei

certificates (colonna “Lotto Neg.”)

Impegno giornaliero ad esporre prezzi denaro e lettera

per ciascuna serie: vedasi scheda riepilogativa delle caratteristiche dei

certificates (colonna “X.Xxxxx M.M.”)

Tipo di liquidazione: monetaria

Modalità di esercizio: europeo

DISPOSIZIONI DELLA BORSA ITALIANA

Dal giorno 9 novembre 2007, i “Butterfly Certificates on DJ EUROSTOXX 50” (DE000SAL5B31) verranno inseriti nel Listino Ufficiale, sezione Securitised Derivatives.

Allegati:

- Scheda riepilogativa delle caratteristiche dei certificates;

- Final Terms dei certificates;

- Traduzione della Nota di Sintesi.

Serie

Isin Sigla SIA Descrizione Sottostante

Strike Scadenza Val. Nom. Ammontare Lotto Neg. X. Xxxx. MM Barriera

2° Barriera

Part.Up Part.Down

1 DE000SAL5B31 T00537 392717 SO DJESBF4011,63LG12 Dow Xxxxx

EURO STOXX 50

4011,63 29/06/2012 1000 50000 1 3 2406,97

6017,45

190% 140%

mercoledì 7 novembre 2007 Pagina 1 di 1

FINAL TERM S

Full information on the issuer and the offer of the Certificates is only available on the basis of the combination of these Final Terms, the relevant Terms and Conditions of the Certificates, the Base Prospectus dated 20 December 2006 as amended by supplement dated 4 July 2007 and the Registration Form of the Issuer dated 19 June 2007. The Base Prospectus, the Registration Form and the relevant Final Terms and Terms and Conditions relating to an issue of Certificates may be obtained free of charge from: Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Trading & Derivatives, Xxxxxxxxxxxxxxx 0, X-00000 Xxxxxxxxx / Xxxx.

Butterfly Certificates based on DJ EURO STOXX 50 (Price Index)®

Issued by Xxx. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien ISIN Code: DE 000 SAL 5B3 1

WKN (German security ID): SAL 5B3

Final Terms for the Butterfly Certificates based on DJ EURO STOXX 50 (Price Index)®

Base Prospectus for Butterfly Certificates on Indices dated 20 December 2006 as amended by supplement dated 4 July 2007

Introduction to the Final Terms

The Object of the Final Terms (dated 05 March 2007 in the version of 30 October 2007 and referring to the Base Prospectus dated 20 December 2006 as amended by supplement dated 4 July 2007) are Butterfly Certificates issued by Xxx. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien in Cologne, Germany ("the Certificates"). The Certificates are divided into 10,000 Certificates and form together with the 40,000 Certificates of ISIN DE 000 SAL 5B3 1, which were introduced by the final terms dated on 19 January 2007 ("the first Final Terms") for the Base Prospectus dated 20 December 2006 one consistent issue of 50,000 Certificates, i.e. the Certificates have the similar ISIN and the similar terms and conditions (collectively, "the Issue").

These Final Terms replace the Final Terms dated 19 January 2007 ("the first Final Terms") for the Base Prospectus dated 20 December 2006. The Certificates belong to the Butterfly Certificate-product type. (See

D.1 of the Base Prospectus and C.1 of the Final Terms.)

The Final Terms of the Base Prospectus are set forth as per Article 26 Para. 5, second alternative of (EC) regulation No. 809/2004, and are thus incorporated into the Base Prospectus. In other words, all sections which have been changed due to the Final Terms are repeated. Any remaining gaps are filled in the process. Any alternative or optional details or conditions (marked with square brackets in the Base Prospectus) which are not explicitly mentioned in the Final Terms are deemed stricken from the Base Prospectus. The template for Section A may be found on pages 24 to 25 of the Base Prospectus. The templates for Sections B., C., D. and E. of the Final Terms can be found in the corresponding parts of the Base Prospectus. Section D corresponds to Section D. of the first Final Terms (except for the starting date of sales and the issued volume). The template for Section F may be found on page 43 of the Base Prospectus. Accordingly, the Final Terms are composed of the following:

A. Material Features .................................................................................................................................... 3

B. Risk Factors............................................................................................................................................. 6

C. Certificates Description........................................................................................................................... 11

D. Terms and Conditions ............................................................................................................................. 16

E. Taxation................................................................................................................................................... 26

F. Important Notice...................................................................................................................................... 31

It should be noted that comprehensive information about the Issuer and the offer can only be obtained from the Final Terms and the Base Prospectus taken together. Insofar as the Final Terms, and the Terms and Conditions which it contains, deviate from the Base Prospectus, the information in the Final Terms will take precedence over that in the Base Prospectus. The foregoing does not entitle the Issuer to deviate from the framework contained in the Base

Prospectus when presenting the Final Terms.

These Certificates entail the risk of a total loss. More detailed information on this point can be found in the description of the "Risk Factors." (See Section B. of the Final Terms.)

MATERIAL FEATURES

The following Features marked with a □ are shown in the table below.

Issuer: Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien a partnership limited by shares, based in Cologne, Germany

Issued volume: 50,000 Certificates. Number of Certificates per issue

Certificate Rights: See Section C.4.1.2. of the Final Terms

Index: DJ EURO STOXX 50 (ISIN Code: EU 000 965 814 5).

Currency of the Index: EUR.

Nominal Amount: EUR 1,000.00. Minimum Redemption Amount: 100%.

Additional Amount: 0.

Lower Barrier: 2,406.97.

Upper Barrier: 6,017.45.

Index Initial: 4,011.63.

Index Final: The official closing level of the Index on the Valuation Date.

Participation Up: 190%.

Participation Down: 140%. Relevant Trading Exchange: □.

Determination Agent

(for the Index) Stoxx Ltd.

Determination Agent: BNP Paribas Securities Services. Depositary Agent: Monte Titoli S.p.A..

Observation Period: 05.03.2007-29.06.2012.

Redemption Amount: An amount determined in accordance with Section 2 (3) of the Terms and

Conditions.

Issue Date: 05.03.2007.

Price Determination Date: 02.03.2007.

Valuation Date: 29.06.2012. Corresponds to the Maturity Date notwithstanding the provisions set out in Section 4 of the Terms and Conditions. If this date is not a Stock Exchange Trading Day, the Valuation Date shall be postponed to the next following Stock Exchange Trading Day, on which the Index Final is available.

Maturity Date: 29.06.2012 (subject to termination as per Section 3 or a postponement as per

Section 4 of the Terms and Conditions).

Last Exchange Trading Day: □. Redemption Date: 06.07.2012.

Trading Currency: EUR.

Initial Sales Date and/or start of the

subscription period: Initial issue: 22.01.2007

Increase Date (first tranche): 05.03.2007

Initial Sales Price: EUR 1,000.00.

Value Date: Initial issue: 08.03.2007

Increase Date (first tranche): 08.03.2007

Subscription Period: 22.01.2007 – 16.02.2007 (5 pm, early closing reserved). Initial Price Determination Date: N/A.

Exchange Listing: The Issuer will apply to list the Certificates at the SeDeX MarketTM, organized and managed by Borsa Italiana S.p.A.

Public Disclosures: All announcements regarding the Certificates will be published in at least one of the statutory notice journals for the Relevant Stock Exchange(s).

Smallest Tradable Unit: 1 Certificate.

WKN (German

security ID): SAL 5B3.

ISIN Code: DE 000 SAL 5B3 1.

Summary table of the most important Features:

WKN/ ISIN Code	Issued volume / Issued volume after increase (first tranche) / Total volume / Smallest Tradable Unit	Index / ISIN Code /	Nominal Amount / Minimum Redemption Amount / Additional Amount / Lower Barrier / Upper Barrier / Index Initial / Index Final / Participation Up / Participation Down / Redemption Amount	Determination Agent (for the Index) / Determination Agent / Depositary Agent / Relevant Trading Exchange	Issue Date / Price Determination Date / Maturity Date / Valuation Date / Observation Period / Redemption Date	Last Exchange Trading Day	Initial Sales Price / Initial Sales Date / Subscription Period	Issuer’s Right of Termination	Trading Currency
SAL 5B3 /	40,000 /	DJ EURO STOXX 50	EUR 1,000.00 /	STOXX Ltd. /	05.03.2007 /	Will be disclosed	EUR 1,000.00 /	See Section 3 of	EUR.
DE 000 SAL 5B3 1.	10,000 /	(Price Index)® /	100% /	BNP Paribas Securities	02.03.2007 /	upon Exchange	22.01.2007 /	the Terms and
	50,000 /	EU 000 965 814 5	0 /	Services /	29.06.2012 /	Listing	22.01.2007-16.02.2007	Conditions.
	1 Cert.		60% of Index Initial /	Monte Titoli S.p.A. /	29.06.2012 /		(5 pm, early closing
			150% of Index Initial /	EUREX Deutschland.	05.03.2007 – 29.06.2012		reserved).
			100% of the closing level of the		(in each case including) /
			underlying on 02.03.2007/		06.07.2012.
			official closing level of the Index
			on the Valuation Date/
			190% /
			140% /
			as determined in accordance with
			Section 2 (3) of the Terms and
			Conditions. See Section 2 (3) of
			the Terms and Conditions.

B. RISK F A CTORS

Potential buyers of the Certificates described in this Base Prospectus and/or Final Terms should carefully consider the risk factors described below when making their investment decision, and should base such a decision on a thorough review of the entire Base Prospectus, including all documents incorporated by reference herein, and the relevant Final Terms.

1. Risk Factors relating to the Issuer

1.1 General Risk Factors relating to the Issuer The Issuer is exposed to risks in the course of its business activity. Should these risks be realized, the

Issuer could, in a worst-case scenario, be delayed in, or prevented from, fulfilling its obligations in the context of an issue of securities.

The Issuer is exposed to market risks due to its buying and selling of financial products. These market risks, given the Sal. Xxxxxxxxx Group's focus on trading and its resulting classification as a customer- account business, play an important role with respect to the company's risk profile. They result from potential fluctuations in certain valuation parameters and from concomitant changes in portfolio values. The determining value parameters are interest rates, currency rates, securities prices and securities-index prices, as well as more complex factors, such as volatility and dividend expectations. These parameters also include credit spreads.

The Issuer also faces address risks (credit risks), due to possible losses of value with respect to lines of credit, securities, or derivatives. Such losses are triggered by the default or impaired creditworthiness of a borrower, a contractual counterparty, or an issuing company.

In addition, the Issuer is exposed to operating risks. As defined by the Basel Committee on Banking Supervision, these involve dangers of loss resulting from the inadequate performance or failure of internal procedures, people or systems in response to external events.

The Issuer's liquidity risk is the peril that it will be unable to meet its present and future payment

obligations, and/or be unable to meet them in a timely manner.

1.2. Specific Risk Factors relating to the Issuer

The Certificates create direct and unsecured obligations of the Issuer which rank pari passu in relation to one another with all other unsecured and unsubordinated obligations of the Issuer, excepted for obligations which have priority due to mandatory statutory provisions.

Thus, the investor bears the risk of insolvency on the part of the Issuer. The protection afforded by the Depositor's Guarantee Fund of the Federal Association of German Banks does not apply to these types of securities.

Nor will a special trust fund be set up for the assets which the Issuer acquires from issuing the Certificates. A Xxxxxx'x only claim will be to have the value of his/her Certificate repaid at maturity.

It is to be expected that the value of the Certificates will be influenced in part by the general creditworthiness which investors impute to the Issuer. Deterioration in the creditworthiness of the Issuer may lead to a depreciation of the Certificates.

The only obligations represented by the Certificates are those of the Issuer. In case of a loss, Holders have no claim of recourse against the company issuing an Index. Insofar as the Issuer of the Certificates and the company issuing the Index Components are not the same entity, the Holder is exposed to the risk of issuer insolvency with regard to the Issuer as well as with regard to the company issuing the Index Components. Thus, it cannot be excluded that losses may occur due to the financial collapse of an issuer.

2. Risk Factors relating to the Certificates Risks relating to Uncertain Settlement Profiles The future performance of a Certificate cannot be determined at the time of purchase. There is no guarantee that the Certificates will be redeemed

according to the redemption option most favourable to the investor, nor that a specific amount will be repaid.

The Certificates entail the risk of an unexpected and extensive loss in value. This is a risk borne by the

investor, with the outcome subject to the performance of a Certificate's individual Index Component, and possibly subject to the specific factors affecting the option(s) granted along with a Certificate. When a Certificate is redeemed by the Issuer, the realized profit/loss will be strictly determined by the difference between the total value of the redemption amount (the "Redemption Amount") paid – minus any charges or transaction fees. Depending on the performance of the Index the investor may suffer a severe loss of the invested capital which is limited by the difference between the purchase price and the minimum redemption amount if positive.

When a Certificate is sold before maturity, the investor's realized profit/loss will be strictly determined by the difference between the buying and selling price of the Certificate.

Drawing Credit

When the purchase of Certificates is financed through credit, the investor's risk of loss increases. In this context, if the market develops contrary to the investor's expectations, the investor will not only have to absorb any realized loss, but will have to repay principal and interest on the loan. The investor should therefore never assume that he/she will be able to repay interest and principal on a loan with proceeds from the Certificates. Xxxxxx, the investor should carefully review his/her financial situation before taking out the loan, so as to make certain that he/she would indeed still be able to make interest payments – and possibly an early repayment of the principal – even if he/she were to suffer losses.

Limited Participation

If the level of the Index is higher than the Index Initial the investor might partially participate in the performance of the Index. If the level of the Index is lower than the Index Initial, the investor might partially participate in the absolute performance of the Index.

Once the price reaches a certain level, at or above the Upper Barrier and/or at or below the Lower Barrier, the returns which the investor would have achieved by directly investing in the Index (rather than the Certificate) may be higher than the return from the Certificate.

Specific Risks Relating to Certificates Structure The specific structure of Certificates can increase the risks associated with the purchase of Certificates.

Basically, the determining factors for the performance of the option(s) granted by a Certificate specifically include – aside from the attainment of certain threshold values (the Lower Barrier and the Upper Barrier) by the Index – (i) volatility, i.e. the expected fluctuation in the Index (ii) the remaining term of the options granted by the Certificates (iii) money- market interest rates as well as – with certain exceptions

– (iv) expected dividend payments from the Index Components.

Even if an Index outperforms during the maturity of the Certificate, the price of the Certificate may still decline due to these other value-influencing factors.

Specific Risks Relating to Certificates with an Index

Certificates based on Indices

At redemption, the repayment amount received by the investor will depend exclusively on the price level of the Index, which in turn depends on the individual Index Components. During the Certificates term, however, their market value may deviate from the performance of the Index Components, since other factors – particularly interest rates and possible changes in dividend expectations – can influence the Certificates price. The investor, therefore, has no assurance that a Certificate will have or retain a certain value.

Information about the investment principles on which a given Index is based may be found in the Index description of the Final Terms.

The Issuer assumes no responsibility for the Holder's information about the Index Components, nor for the creditworthiness of the issuers of the Index Components, nor for the features or pricing of said Index Components. In those cases in which the Issuer also acts as issuer of the Index Components, the Issuer will assume the concomitant responsibility only within the scope of the sales and/or securities prospectus for the given Index Component.

It cannot be predicted whether or to what extent a secondary market for the Index Components may be available at any specific time, nor at what price the

Issuer could buy or sell the Index Components in such a secondary market, nor whether such a secondary market would be liquid or not.

General Correlation Risk for Certificates

If both the performance of a Certificate during its term and its redemption value at maturity depend on the performance of two or more Index Components, then the correlation of these Index Components (i.e. the degree to which their prices influence one another) will have an impact on the value of the Certificate. For example, one can assume that different Index Components from the same industry will have a high correlation. Correlation is measured by assigning a value from "-1" to "+1," with "+1" being a very high / perfect correlation, where the prices of the Index Components move in tandem. A correlation factor of "- 1," on the other hand, means there is a very low / perfectly negative correlation, so that the Index Components move in completely opposite directions. Finally, a correlation of "0" means there is no correlation at all, so that Index Components prices are completely independent of each other. Depending on the redemption structure, a high correlation among the individual Index Components will increase or decrease the investor’s risk, given that a diversified investment strategy is not being implemented / pursued.

Specific Correlation Risk for Certificates with Index Components which are denominated in different currencies

If an Index is based on Index Components denominated in different currencies (i.e. one Index Component is denominated in Euro, another Index Component in U.S. Dollar and a further Index Component in Pound Sterling), then, in addition to the general correlation risk described in the paragraph above, there will be a further correlation risk based on the different currencies of the Index Components. Fluctuations in the currencies may have a negative impact on the development of the Index Components. Thus, there will be a low correlation if the Index Components are denominated in different currencies since fluctuations in only one currency have a lower impact on the level of the Index. On the other hand, there will be a high correlation if the Index Components are denominated in the same, or predominantly in the same, currency since in such case fluctuations of such same, or predominantly same,

currency will have a disproportionate impact on the level of the Index.

No Compensation for Loss through other Returns As a rule, a Certificate does not grant any right to interest payments, other regular payouts, or dividend distributions. Thus, it warrants no guaranteed, ongoing returns. Potential falls in the value of the Certificate can therefore not be compensated through other returns.

Transaction Costs and Fees as Value-Decreasing Costs

The Certificates Redemption Amount at the end of the term can be affected by any transaction costs charged by the depositary bank, as well as by any managerial or performance fees charged by the Issuer for Certificates. Particularly in the case of Certificates on indices, the investor should consider that transaction costs can negatively impact the value of Certificates on two levels, since they affect not only the (exchange-based) purchase and sale of the Index Components by the Issuer (in the form of higher administration costs), but also the purchase and sale of the respective Certificates by the investor.

Taxation

Potential purchasers and sellers of the Certificates should be aware that they may be required to pay taxes or other documentary charges or duties in accordance with the laws and practices of the country where the Certificates are transferred or other jurisdiction.

Trade in the Certificates – Liquidity Risk

As a rule, Holders may sell their Certificates at any time, either on a financial exchange or over the counter. The Issuer intends to set purchase and selling prices for the Certificates on a regular basis and under normal market conditions. Furthermore, the Issuer assumes no legal obligation of any kind with respect to the level of such purchase and sales prices, or the manner of their determination. The investor should therefore not assume that he/she will be able to sell a Certificate at a specific time or for a specific price during its term.

The Certificates may experience temporary problems of liquidity, which might result in the price of these instruments being influenced by their limited liquidity. For this reason the market maker undertakes to make available and/or restore buy/sell prices

according to the instructions to the rules for the markets organised and managed by Borsa Italiana S.p.A. (Italian Stock Exchange) for at least the minimum trading lots set out by Borsa Italiana S.p.A. and with a spread between the bid/ask prices not higher than the maximum spread as set out in the above mentioned instructions.

Risk-Excluding Transactions

Investors should never rely on their ability to conclude, at any time before maturity, any transactions that would limit or eliminate their risk exposure resulting from the Certificates. The ability to conclude any such transactions depends on the development of the market and the conditions applicable to such transactions from time to time. Any such transactions that the investor may contemplate might be performed only at a disadvantageous market price and might thus result in a significant loss for the investor.

Cancellation of the Issuer's Counter-Trades

In order to cover its obligations arising from the Certificates, the Issuer initiates hedging transactions on an ongoing basis with respect to the Index. When Certificates are exercised at maturity and/or upon termination, this in turn leads to a cancellation of all corresponding hedging transactions. Depending on the number of Certificates to be exercised, the prevailing market conditions, and the liquidity in the given Index instrument, it cannot be excluded that cancelling the

hedging transactions may have an impact on the price level of the Index, and, therefore, also on the amount and/or type of redemption.

Market Disruptions and Adjustments

The Issuer will determine, according to the Terms and Conditions, whether a Market Disruption exists or has occurred, as well as what adjustments should be made. Market Disruptions can influence the value of Certificates and delay their redemption. In the context of adjustments involving the Index, it cannot be excluded that the assessment on which an adjustment is based may later prove to be incorrect, and that said adjustment could therefore turn out to be disadvantageous to the investor.

General Interest-Rate Risk

An investment in Certificates may entail interest-rate risk due to fluctuations in interest rates payable on the deposits made in the currency of the Certificates.

Interest rates depend on demand and supply in the international money markets, which is in turn influenced by economic factors, speculation, and interventions by central banks and government agencies, as well as by other political factors. If the Index Component is a security with a fixed rate of interest, it can be assumed that the value of the Certificate will be particularly sensitive to interest rate fluctuations.

The information relating to risk is not part of the Terms and Conditions.

The order and extent of the foregoing risk descriptions are not intended as an indication of the scope of the financial consequences of any given risk, should it be realized, nor as an indication of the likelihood that any of the risks described will be realized. It should be noted that various risks can occur in combination and can reinforce one another. Potential investors should only buy Certificates if they can financially afford the risk

of a total loss of their investment, including all transaction costs paid.

This general risk overview is not meant to replace the investor's individual consultation with his/her own bank or other financial advisor(s) prior to making an investment decision. If needed, your personal bank will be able to give you more information about transactions involving futures and options and the risks they

entail.

Certificates are based on complex mathematical structures, which may not be readily intelligible to the investor. In addition, there is the possibility that the investor may underestimate the true risk associated with a purchase of Certificates. Potential investors should therefore ensure that they have gained a thorough

understanding of the workings of the respective investment vehicles in question.

Before purchasing Certificates, potential investors should carefully review their financial situation to make certain that they can bear the risks of loss associated with Certificates.

C. CE RTI F ICATES DESCRIP T ION

The Certificates description outlines Certificate features which are legally and bindingly regulated in the Terms and Conditions. The Terms and Conditions specifically include the applicable definitions for the language terms used in the Certificates description. With regard to the certificate right (the "Certificate Right") of the Holders the Terms and Conditions shall prevail.

1. Object

The Certificates are based on an Index, the so called underlying. The Certificates are derivative securities, whose price behaviour depend on that of the Index.

2. Interests of Participating Individuals

2.1. Pricing by the Issuer

As a rule, the Issuer will set the buy and sell price for the Certificates (so-called "market making") by determining a spread between the ask and bid price based on demand and supply, as well as on profit considerations.

The Issuer undertakes to make available and/or restore buy/sell prices according to the instructions to the rules for the markets organised and managed by Borsa Italiana S.p.A. (Italian Stock Exchange) for at least the minimum trading lots set out by Borsa Italiana S.p.A. and with a spread between the bid/ask prices not higher than the maxim spread as set out in the above mentioned instructions.

2.2. Other Conflicts of Interest

Conflicts of Interest for the Issuer Regarding the Index

The Issuer may potentially transact business involving the Index or the Index Components for its own account or for a third party. Such transactions may have either a positive or a negative effect on the level of the Index, and thus on the value of the Certificate as well. Furthermore, the Issuer may own a significant interest in individual companies associated with the Index, so that issuance of corresponding Certificates could result in a conflict of interest.

The Issuer may also act in the capacity of issuing agent, accountant, Paying Agent, Determination Agent and administrator for the Index.

In this way, the Issuer may have direct or indirect influence over the price and (thus the value) of the Index Components.

The Issuer may also issue additional securities which have similar or identical features to these Certificates. An offer of Certificates which compete with existing products may impact the value of the Index, and, therefore, the value of the Certificate as well.

In connection with future offers of the Index Components, the Issuer may act as a consortium member, as a financial advisor, or as a merchant bank. These types of business activities may lead to conflicts of interest, and could influence the value of the Certificates.

If needed – particularly to hedge its own positions – the Issuer may participate in transactions (either for its own account or a third party) which involve securities on which the Index is based (the "Index Components"). Such transactions may have either a positive or negative effect on the performance of the Index Components, and thus on the value of the Index and of the Certificates as well. Furthermore, the Issuer may own a significant interest in Index Components, so that issuance of corresponding Certificates could result in a conflict of interest.

The Issuer may instruct external consultants and/or advisors for the composition and the adjustments of the Index. Such consultants and/or advisors may pursue their own interest vis-à-vis the issue of the Certificates and their related advise on such issue. A conflict of interests of the consultants and/or advisors could lead to an investment decision or suggestion not in the interest of the investors but in their own interest.

3. Reasons for the Offer and Use of Proceeds As a rule, the net proceeds earned from the sale of Certificates will be used, in whole or in part, to initiate hedging transactions which cover required

payments of Index Components associated with the Certificates.

4. Data about the Certificates to be Offered

4.1. Data about the Certificates

4.1.1. General Description of the Certificates The German Security ID Codes (WKN) and ISIN Code are described in Section A of the Final Terms ("Material Features").

The Certificates are bearer bonds. For the entire duration of their term, these bonds will be documented in a global bearer Certificate which will be kept at Monte Titoli S.p.A. The Certificates are transferable as co-ownership shares in the global bearer Certificate, in accordance with the terms and conditions of Monte Titoli S.p.A, and outside the Republic of Italy with the terms and conditions of Euroclear and Clearstream S.A.

The level of the Index (the "Currency of the Index") will be expressed and repaid in Euro (the "Trading Currency"). The Certificate in question is a "Quanto Certificate", i.e. one hedged against currency losses. This excludes any currency risk due to converting an underlying denominated in a currency other than Euro – both during its term (when setting the ask/bid price) as well as at the time of its redemption. A conversion at the prevailing exchange rate will no longer be necessary.

The Certificates establish the direct and indirect obligations of the Issuer, have an equal ranking both in relation to one another and also in relation to any other present and future unsecured and unsubordinated obligations of the Issuer. Excepted will be obligations which have priority due to binding legal stipulations. Also see Section 8 of the Terms and Conditions (Part E. of the Base Prospectus and/or Part D. of the Final Terms).

4.1.2. Description of Rights

According to the Terms and Conditions, the Issuer has the option to terminate the Certificates by following a due process.

A detailed description of the Certificate Rights connected with the Certificates, including any limitations thereto, are set out in the Terms and Conditions (in Part E of the Base Prospectus and Part D of the Final Terms).

4.1.3. Settlement Procedure

The settlement procedure for the Certificates is described in Section 1 of the Terms and Conditions.

The exact procedure whereby the Issuer is to perform the services which the Holder requires to redeem the Certificates on the "Redemption Date" is described in Section 6 of the Terms and Conditions.

4.1.4. Product Description

The Certificates shall be redeemed at its Redemption Amount determined according to the following options:

Option A: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the observation period (the "Observation Period") has never traded at or below the Lower Barrier AND at or above the Upper Barrier the Issuer shall pay:

(a) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is higher than, or equal to, Index Initial:

Nominal Amount

⎡MinimumRedemptionAmount + ⎤

* ⎢ ⎛ IndexFinal − IndexInitial ⎞⎥

The Issuer guarantees each Holder the right

⎢+ ParticipationUp* ⎜ ⎟⎥

⎣⎢ ⎝

IndexInitial

⎠⎥⎦

("Certificate Right" or "Certificate Rights") to redeem the Certificates in accordance with the Terms and Conditions and to receive a Redemption Amount in accordance with the Terms and Conditions.

The Certificates do not confirm any right to interest payments or dividend payments and/or any regular payouts from the Certificates.

whereby the Nominal Amount is expressed in EUR (the Trading Currency), or

(b) an amount which is calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is below Index Initial:

Nominal Amount

⎡MinimumRedemptionAmount + ⎤

* ⎢ ⎛ IndexInitial − IndexFinal ⎞⎥

Nominal Amount

*(Minimum Redemption Amount + Additional

⎢+ ParticipationDown* ⎜ ⎟⎥

⎣⎢ ⎝

IndexInitial

⎠⎥⎦

Amount)

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

Option B: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the Observation Period has traded at or below, the Lower Barrier AND at or above the Upper Barrier, the Issuer shall pay:

an amount calculated according the following formula:

Nominal Amount

*(Minimum Redemption Amount + 2 x Additional Amount)

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

Option C: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the Observation Period has traded at or below the Lower Barrier BUT never at or above the Upper Barrier, the Issuer shall pay:

(a) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is

higher than Index Initial:

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

Option D: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the Observation Period has traded at or above the Upper Barrier BUT never at or below the Lower Barrier, the Issuer shall pay:

(a) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is higher than Index Initial:

Nominal Amount

*(Minimum Redemption Amount + Additional Amount)

whereby the Nominal Amount is expressed in EUR (the Trading Currency), or

(b) an amount calculated according to the following formula:provided that on the Valuation Date Index Final officially determined by the Determination Agent is at or below Index Initial:

Nominal Amount

⎡ ⎤

⎢

⎥

⎢Minimum RedemptionAmount + ⎥

* ⎢+ AdditionalAmount + ParticipationDown⎥

⎡ ⎤ ⎢ ⎥

⎛ IndexInitial − IndexFinal ⎞

⎢

⎥

⎢Minimum RedemptionAmount + ⎥

⎢* ⎜

⎣ ⎝

⎟ ⎥

IndexInitial ⎠ ⎥⎦

* ⎢+ AdditionalAmount + ParticipationUp⎥

⎢ ⎥

⎢* ⎛ IndexFinal − IndexInitial ⎞ ⎥

⎢

⎥

⎜ ⎟

⎣ ⎝ IndexInitial ⎠ ⎦

whereby the Nominal Amount is expressed in EUR (the Trading Currency), or

(b) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is at or below Index Initial:

whereby the Nominal Amount is expressed in

EUR (the Trading Currency).

The Issuer shall determine the type of redemption on the Valuation Date.

Factors Determining Value

Holder is in a comparable financial position as someone who acquires Index Components and simultaneously purchases various forms of options on this Index.

The Certificate value is particularly dependent on the value changes of the Index and of the individual Index Components, as well as on the applicable factors influencing option value.

Other factors which also influence options include: the remaining term until maturity; the intensity of expected price fluctuations (volatility) of the Index; the money-market interest rate; and, for a price Index, the expected dividend payouts from the securities included in the Index. Even if an Index rises over the term of a Certificate, the overall price of a Certificate may still decline due to these other value-influencing factors.

4.2. Information about the Index

4.2.1. Description of the Index

The Index level relevant for redemption is closing Index level on the Valuation Date, as officially determined by the Determination Agent.

The underlying is the DJ EURO STOXX 50 (Price Index)® Index.

General Information relating to the Dow Xxxxx EUROSTOXX 50® Index

All information herein regarding the Dow Xxxxx EUROSTOXX 50® Index (the "Index") is derived from publicly available sources. The Index is currently sponsored by STOXX Ltd. (the "Sponsor"). The Certificates are not in any way sponsored, endorsed or promoted by the Index. The Sponsor has no obligation to take the needs of investors in the Certificates into consideration in composing, determining or calculating the Index (or causing the Index to be calculated).

The Index comprises 50 of the largest regional market-sector leaders in the Eurozone. Various financial information systems including Reuters provide for the value of the Index on a real-time basis.

The Index is weighted by free float market capitalisation, subject to a 10 per cent. cap. Share prices are taken from each of the Exchanges on

which the component shares are traded and the Index is currently updated each minute of the day, from 9.00am to 6.00pm (Central European time), in order to provide accurate information on a continuous real time basis. The level of the Index appears, inter alia, on Reuters page .STOXX50E.

Further information about this Index can be found at xxx.xxxxx.xxx. Data about the historical and future performance as well as historical volatilities of the Index may be obtained from the Issuer by dialling +49 (0)69 7134 - 2233.

4.2.2. Market Disruptions and Adjustments

The definition of Market Disruptions affecting the Index (i.e. the consequences of a Market Disruption, such as possible postponement of the Valuation Date), as well as a description of corrective actions, can be found in Section 4 of the Terms and Conditions.

Adjustments to the Index are provided for in Section 3 of the Terms and Conditions.

5. Terms of the Offer

5.1. Issued Volume

The number of Certificates per issue is stated in the Section A. ("Material Features") of the Final Terms.

5.2. Certificates Offer

Sales of the Certificates will begin on 22.01.2007. The initial offering will have a subscription deadline of 16.02.2007 (5 p.m. CET). The Issuer reserves the right to end the subscription period ahead of schedule. The Issuer has no obligation to accept a given subscription application. Partial allotments are possible (especially in case of oversubscription).

As a rule, Certificates may be acquired (off- exchange) until the last Trading Day stated in the Final Terms ("Material Features").

5.3. Initial Selling Price

The initial selling price of the Certificates (the so- called "Issue Price") will be fixed no later than the day of the first public offer of the Certificates, and will be stated in the relevant Final Terms ("Material Features"). The Issue Price of the Certificates may contain – in addition to the expressly stated expense

surcharges (so-called "Agios") or other charges – a surcharge added to the fair book value of the Certificates which is not apparent to the investor.

This surcharge, for the most part, serves to cover

risk-hedging and selling expenses for the Certificates.

Once the initial selling prices have been set, they will be continually adjusted to market conditions.

5.4. Paying Agent, Depositary Agent, Cooperation Partner

The Paying Agent is as follows: Xxx. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Xxxxx Xxxxxxxxxxxxx 0, 00000 Xxxxxxx, Xxxxxxx.

The Depository Agent is Monte Titoli S.p.A., Xxx Xxxxxxxx 0, 00000 Xxxxx, Xxxxx.

The Redemption Amount to be paid will be determined by the Issuer itself.

There is no Cooperation Partner at this time.

6. Exchange-Trading of the Certificates

The Issuer will apply to have the Certificates listed on the segment SeDeXTM of Borsa Italiana S.p.A.

7. Additional Information

7.1. External Consultants

There are currently no external consultants.

7.2. Public Disclosures

Insofar as they involve one of the situations provided for in the Terms and Conditions, announcements regarding the Certificates will be published in at least one of the statutory notice journals of the Relevant Stock Exchange(s) in accordance with Section 7 of the Terms and Conditions. These announcements will be for informational purposes only, and will not have binding effect, insofar as not otherwise provided in the Terms and Conditions and in mandatory provisions of law of the relevant EU member-state in which the Certificates may be listed.

D. TERMS AND CONDITIO N S

Where the text is marked with the □ symbol (the "Placeholders") the term or text to be inserted can be found in Part A of the Final Terms ("Material Features"), i.e. this information is an integral part of these Terms and Conditions.

Section 1 Form and Number of Certificates, Collective Custody, Fungibility

(1) Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien (partnership limited by shares), Cologne (the "Issuer") hereby issues

□ BUTTERFLY Index Certificates on □ per issue (in words: fortythousands)

ISIN Code: □

(the "BUTTERFLY Certificates" or the "Certificates").

(2) The BUTTERFLY Certificates are represented, for their entire term, by a permanent global bearer certificate deposited with Clearstream Banking AG Monte Titoli S.p.A. Certificate holders (the "Holders" or the "Holder") shall have no rights as

regards the production and delivery of definitive

(2) The term of the Certificates shall end on the "Maturity Date" and the Certificates shall be redeemed on the "Redemption Date". The Certificate Right will be deemed to be automatically exercised on the Maturity Date without the requirements of an exercise notice or the performance of other qualifications.

(3) The Certificates shall be redeemed at its "Redemption Amount" to be determined in accordance with the following options:

Option A: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the Observation Period has never traded at or below the Lower Barrier AND at or above the Upper Barrier the Issuer shall pay:

Nominal Amount

⎡MinimumRedemptionAmount + ⎤

* ⎢ ⎛ IndexFinal − IndexInitial ⎞⎥

securities. The Holders shall have a co-ownership

⎢+ ParticipationUp* ⎜ ⎟⎥

interest in the Global Bearer Certificate which may

⎣⎢ ⎝

IndexInitial

⎠⎥⎦

be transferred, after acquisition, in accordance with the terms and conditions of Monte Titoli S.p.A. and, outside of the Republic of Italy with the terms and conditions of Euroclear, Clearstream Banking société anonyme.

(3) In securities transactions the Certificates are transferable as units of one Certificate or as integral multiples thereof.

whereby the Nominal Amount is expressed in EUR (the Trading Currency), or

(b) an amount which is calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is below Index Initial:

Nominal Amount

⎡MinimumRedemptionAmount + ⎤

* ⎢ ⎛ IndexInitial − IndexFinal ⎞⎥

Section 2

⎢+ ParticipationDown* ⎜ ⎟⎥

Certificate Rights, Term, Definitions

⎣⎢ ⎝

IndexInitial

⎠⎥⎦

(1) The Issuer grants each Holder of a BUTTERFLY Certificate the right ("Certificate Right") to redemption of the Certificates in accordance with these Terms and Conditions.

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

Option B: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the Observation Period has traded at or below, the Lower Barrier

AND at or above the Upper Barrier, the Issuer shall pay:

an amount calculated according the following formula:

Nominal Amount

*(Minimum Redemption Amount + 2 x Additional Amount)

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

(a) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is

higher than Index Initial:

never at or below the Lower Barrier, the Issuer shall pay:

(a) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is higher than Index Initial:

Nominal Amount

*(Minimum Redemption Amount + Additional Amount)

whereby the Nominal Amount is expressed in EUR (the Trading Currency), or

(b) an amount calculated according to the following formula:provided that on the Valuation Date Index Final officially determined by the Determination Agent is at or below Index Initial:

Nominal Amount

⎡ ⎤

⎢

⎥

⎢Minimum RedemptionAmount + ⎥

⎡ ⎤ * ⎢+ AdditionalAmount + ParticipationDown⎥

⎢Minimum RedemptionAmount + ⎥

⎢ ⎥

⎟

⎢* ⎛ IndexInitial − IndexFinal ⎞ ⎥

⎢ ⎥ ⎢ ⎜

IndexInitial ⎥

* ⎢+ AdditionalAmount + ParticipationUp⎥

⎣ ⎝ ⎠ ⎦

⎢ ⎛ IndexFinal − IndexInitial ⎞ ⎥

⎢

⎢* ⎜

⎣ ⎝

⎟ ⎥

IndexInitial ⎠ ⎥⎦

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

whereby the Nominal Amount is expressed in EUR (the Trading Currency), or

(c) an amount calculated according to the following formula provided that on the Valuation Date Index Final officially determined by the Determination Agent is at or below Index Initial:

Nominal Amount

*(Minimum Redemption Amount + Additional Amount)

whereby the Nominal Amount is expressed in EUR (the Trading Currency).

Option D: If the level of the DJ EURO STOXX 50 (Preis Index) at any time during the Observation Period has traded at or above the Upper Barrier BUT

The Certificate in question has a currency hedging feature (Quanto Certificate). The Index is expressed and redeemed in the Trading Currency and is not converted from the Currency of the Index into the Trading Currency.

(4) The Certificates do not grant the Holders any right to interest payments, dividend payments or other (regular) distributions.

(5) Subject to modifications in accordance with the subsequent Sections, the following definitions apply to these Terms and Conditions:

Index: □ (ISIN Code □)

Currency of the

Index: □.

Nominal Amount: □.

Index Initial: The official closing level of the Index on the Price Determination Date.

Index Final: The official closing level of the Index on the Valuation Date.

Redemption

Amount: An amount determined in accordance with Section 2 (3).

Minimum Redemption Amount: □.

Additional Amount: □.

Lower Barrier: □.

Upper Barrier: □.

which the Index Final is available.

Redemption Date: □.

Maturity Date: □. Determination Agent: □. Depositary Agent: □.

Relevant

Derivatives Exchange: □.

Smallest Tradable

Unit: 1 identical Certificate or integral multiples thereof.

Bank Business Day: Every day on which the

banks in Frankfurt / Main, Germany, and Milan, Italy are opened for general business.

Observation

Period: □ (inclusive of both start and end date).

Participation Up: □. Participation Down: □. "Trading Currency": □. Start of Sale: □.

Price Determination Date: □.

Valuation Date: means the Maturity Date

notwithstanding the provisions set forth in Section 4. If this date is not a Stock Exchange Trading Day, the Valuation Date shall be postponed to the next following Stock Exchange Trading Day, on

Stock Exchange

Trading Day: for each equity index considered as Underlying, any Bank Business Day on which the trading systems of the relevant stock exchanges are in operation and on which the values of the equity indices considered as Underlying are duly published by the sponsor. Should a market disruption event occur on one of such days, the day in question shall not be considered a Stock Exchange Trading Day.

Issue Date: □.

Section 3 Adjustments, Redemption of the Certificates by the Issuer, Successor Index

(1) The key factor in determining the value of the Certificate and the Redemption Amount and redemption type in accordance with Section 2 (3) is the respective Index concept as determined and published by the Determination Agent (even if changes are made in the future to the calculation of the Index, to the composition or weighting of the prices and individual securities on the basis of which the Index is calculated, or to the publication method, or if any other changes or adjustments are made or other measures taken with a resulting impact on the calculation of the Index), provided that the following provisions do not result in another Index concept.

(2) As a general rule, no adjustments shall be made to the Index Initial, the Lower Barrier and the Upper Barrier (the "Features"), unless the Issuer is of the opinion that the relevant concept and Index calculation method on the Exercise Date is no longer comparable with the relevant concept and Index calculation method that applied on the issue date (the "Issue Date") as a result of changes, adjustments or other measures. In particular, the relevant concept and Index calculation method are deemed to no longer be comparable if there is a material change in the Index due to changes, adjustments or other measures, despite the fact that the prices and weightings of the individual securities contained in the Index have remained the same.

(3) If the Index is closed or replaced by another Index concept, or in the event that the licence agreement between the Determination Agent and the Issuer cannot be continued for reasons not depending on or caused by the Issuer, the Issuer shall determine, adjusting the Features accordingly where appropriate, whether or not another (and if so, which type of) Index concept shall be applied in the future, in order that the measure in question does not result in any fundamental economic disadvantage for the investor. This Index concept (the "Successor Index") shall then be considered the Index within the meaning of Section 2 (5).

(4) The Issuer shall, at its reasonable discretion and taking into account both the residual maturity and

the most recently determined prices of the Certificates, establish new Features which are as similar as possible, in terms of their economic result, as the previous regulations. The Issuer shall determine the date on which the adjusted Features are to be applied for the first time, taking into account the point in time at which the change, adjustment or other measure took place.

(5) If the Index is no longer calculated and published by the Determination Agent, but by another individual, company or institution deemed suitable by the Issuer (the "Successor Determination Agent"), the Redemption Amount and type shall be determined and calculated on the basis of the Index calculated and published by the Successor Determination Agent where appropriate. Any reference made to the Determination Agent in these Terms and Conditions shall be deemed a reference to the Successor Determination Agent insofar as the context permits.

(6) If, for whatever reason, the Issuer deems an adjustment of the Features or the determination of another relevant Index concept to be impossible, the Issuer shall have the right to early redemption of the Certificates by way of an announcement pursuant to Section 7. In such cases, the term of the Certificates shall end, irrespective of the Maturity Date specified in Section 2 (5), on the day on which the last Index value was published (the "Redemption Date"). In such cases, the Issuer shall determine an appropriate value for the Certificates - where appropriate consulting an expert – and pay the Redemption Amount to the Holders in accordance with Section 6.

(7) All adjustments and determinations made by the Issuer are binding for all parties (provided that no apparent mistakes have been made). The Issuer is only liable for adjustments and determinations it makes or does not make, or for other measures it takes or does not take in connection with these Certificates if, and to the extent that it has breached the duty of care of a prudent businessman.

(8) The Issuer shall publish the adjustments, as well as the date on which they shall be applied for the first time, in accordance with Section 7.

Section 4 Market Disruption

(1) If the Issuer deems that a "Market Disruption" pursuant to (5) has occurred on the Valuation Date and at the point in time at which the closing level of the Index which is relevant to the mode of redemption or the Redemption Amount is determined or one hour prior to this, the Valuation Date shall be the next Stock Exchange Trading Day in Frankfurt / Main, Germany and Milan, Italy on which the relevant stock exchange (the "Relevant Stock Exchange") is open for trading and no Market Disruption occurs. In this case, the Maturity Date shall be postponed accordingly.

(2) If the Valuation Date has been postponed, as a result of the provisions set out in (1), by 10 Bank Business Days and the Market Disruption continues on this day as well, a "Substitute Price" shall be set for the Index and shall replace the closing level of Index pursuant to Section 2 (3).

The "Substitute Price" shall be the closing Index level as determined by the Issuer at its reasonable discretion in accordance with section 315 of the German Civil Code (BGB) - where appropriate after consulting an independent expert - and taking into account the market conditions that apply on the day in question – where appropriate after consulting an independent expert; calculation of the Substitute Price by the Issuer shall be based, if available, on the substitute Index level set by the Relevant Derivatives Exchange (insofar as options on the Index are traded on the Relevant Derivatives Exchange).

(3) If the Issuer deems that a Market Disruption, within the meaning of (5), has occurred during the Observation Period, it shall suspend the determination of whether or not the level of the Index is below, or equal to, the Lower Barrier or higher than, or equal to, the Upper Barrier for the duration of the market disruption in question. The Issuer is entitled, but not obliged to use a substitute barrier determination price set at its reasonable discretion in order to determine whether or not the level of the Index is below, or equal to, the Lower Barrier or higher than, or equal to, the Upper Barrier.

(4) If the end of the Observation Period falls on the same day as the Valuation Date, and the Valuation Date is postponed in accordance with (2), the end of the Observation Period shall be postponed accordingly.

(5) A "Market Disruption" means the temporary suspension or material limitation in either the acquisition of the Index constituents or trading in

(i) an individual Index constituent or

(ii) several Index constituents or

(iii) a futures or option contract on the Index or Index constituents on the Relevant Derivatives Exchange.

provided that, in the reasonable discretion of the Issuer, this suspension or limitation is deemed material to the valuation of the Certificates. A limitation on the hours or number of days during which trading takes place shall not constitute a Market Disruption if it results from a previously announced change made by the Relevant Stock Exchange.

(6) In accordance with Section 7, the Issuer shall endeavour to immediately notify the parties that a Market Disruption has occurred. It is, however, under no obligation to issue a notification.

Section 5 Waiver of Exercise

The Holders are entitled to waive automatic exercise of the Certificates as set out in Section 2 (2) above. The Holders shall have the right to notify the Determination Agent by fax of their intention to waive exercise, using the form attached as "Appendix A" hereto. The Holder shall send the waiver of exercise declaration (i) for Certificates having an Italian Index, by 10.00 a.m (Milan time ) on the Maturity Date (ii) for Certificates having an Index other than an Italian Index, by 3.00

p.m. (Milan time) on the bank business day (the "Bank Business Day") following the Maturity Date or, in case of Market Disruptions, on the Bank Business Day immediately following the Valuation Date, if subsequent to the Maturity Date.

Section 6 Redemption

(1) The Issuer undertakes to provide for the necessary means for redemption on the Redemption Date with Depositary Agent, which will forward these to the respective depository banks, which shall, in turn, credit the appropriate amount to the Holders. The payments shall be made in the currency that is legal tender at the time of payment in the Federal Republic of Germany. Where appropriate, the amount per Certificate shall be rounded to two decimal places with the amount of 0.005 being rounded down.

(2) The Issuer is released from its payment or delivery obligations resulting from these Certificates upon providing the appropriate means to Depositary Agent.

(3) The settlement of the Certificates is subject to all laws, regulations, administrative provisions and procedures in effect on the Maturity Date. Neither in the event that, as a result of these rules and procedures, the Issuer, despite reasonable efforts, is not in a position to meet its obligations as described in (1) and (2), nor for actions or omissions of settlement agents resulting from, or in connection with the fulfilment of the obligations arising from these Certificates shall the Issuer be held liable.

(4) Any taxes or other charges that accrue in connection with redemption shall be borne by the Holder. The Issuer may withhold any taxes or charges payable by the Holder.

Section 7 Announcements

All announcements relating to the Certificates shall be published, insofar as this is required by law or on the basis of stock exchange provisions, in a business or daily newspaper widely circulated in the member states of the European Economic Area in which the public offer or admission to trading is planned. In all other cases, the announcement can be made on the Issuer’s website "xxx.xxxxxxxxx-xxxxxxxx.xx". All announcements relating to the Certificates shall be deemed as effectively given by sending the relative

announcement to Borsa Italiana S.p.A. (Italian Stock Exchange). Except as otherwise provided in these Terms and Conditions, these announcements are for informational purposes only and do not constitute a condition of validity.

Section 8 Status

The Certificates constitute direct and unsecured obligations of the Issuer, which rank pari passu with each other and with all other unsecured and unsubordinated obligations of the Issuer, with the exception of those obligations that have priority due to mandatory statutory provisions.

Section 9 Issuance of Further Certificates, Repurchase, Partial Reduction

(1) The Issuer reserves the right to issue further Certificates with the same Features from time to time without the consent of the Holders by consolidation all Certificates into a single issue, thus increasing total volume. In the case of such an increase, the terms "Certificate" and "BUTTERFLY Certificate" shall also refer to the additionally issued certificates.

(2) The Issuer may, but has no obligation to redeem the Certificates at any time during their term. The Issuer is under no obligation to inform the Holders of such a repurchase. The repurchased Certificates may be held as cancelled, resold or otherwise used by the Issuer.

(3) The Issuer may reduce the volume of the Certificates (partial reduction) at any time during their term, provided that the remaining balance covers the volume of Certificates sold at the point in time of the reduction.

Section 10 Selling restrictions

The distribution of the Base Prospectus and/or the Final Terms including the Terms and Conditions and the offer/purchase of the securities may be subject to statutory limitations in certain countries. Any offer or purchase of the Certificates in any other country is only

permissible if the conditions of sale prevailing in that country have been fulfilled and the regulations that apply to the purchase of the Certificates in that country have been adhered to.

Selling restrictions of this nature currently apply, in particular, in the United States of America: The Certificates are not registered pursuant to the United States Securities Act of 1933 (the "Securities Act") and may at no point in time be offered or sold within the United States or to, for the account of, or for the benefit of US-Persons. The term "United States" means the United States of America, its territories, states, the district of Columbia and any other enclave of the government of the United States, its authorities or agents. The term "US-Person" means (1) any natural person resident in the United States; (2) a partnership, corporation or other legal entity having its principal place of business in the United States; (3) any estate or trust subject to United States federal income taxation;

(4) any entity organised principally for passive investments, for example, a pool, an investment company or any other legal entity, in which US-Persons hold more than 10% of the beneficial interest or which was formed principally for the purpose of facilitating investments by US-Persons; (5) a pension plan for the employees, officers or principles of a legal entity organised in the United States or having its principal place of business there; or (6) a US-Person pursuant to the definition under Regulation S of the Securities Act.

Section 11 Replacement of the Issuer

(1) The Issuer may by sending to the Relevant Stock Exchange a prior thirty-day period notice in writing, without the prior consent of the Holders, replace the debtor with any other company as debtor (the "New Issuer") with respect to all obligations resulting from or in connection with the Certificates, provided that

(a) the New Issuer, pursuant to an agreement with the Issuer, assumes all obligations of the Issuer resulting from or in connection with the Certificates,

(b) a trustee, which may be a bank or an accounting firm in Frankfurt / Main, Germany, with international standing (the "Trustee"), which is appointed by the Issuer for this purpose, using its

own reasonable discretion (section 315 BGB), deems that the assumption of debt pursuant to (a) above is not fundamentally detrimental to the Holders and authorises it on their behalf,

(d) the New Issuer has obtained all of the necessary approvals from the authorities of the country in which it has its registered office.

Upon fulfilment of the conditions described above, the New Issuer shall replace the Issuer in every regard and the Issuer shall be released from all obligations arising from or in connection with the Certificates vis-à-vis the Holders as a result of its function as Issuer.

(2) In the case of such a debtor replacement, any reference made to the Issuer in these Terms and Conditions shall, from that point on, be deemed a reference to the New Issuer.

The replacement of the Issuer shall be announced immediately pursuant to Section 7.

Section 12 Final provisions

(1) The form and content of the Certificates, as well as all of the rights and obligations of the Issuer and of the Holders shall be governed in all respects by the law of the Federal Republic of Germany.

(2) The place of performance is Frankfurt / Main, Germany.

(3) The place of jurisdiction for all legal disputes in connection with the Certificates for merchants (Kaufleute), legal entities under public law, separate estates under public law and individuals with no general place of jurisdiction in the Federal Republic of Germany is Frankfurt / Main. In such cases, Frankfurt / Main is the exclusive place of jurisdiction for all actions brought against the Issuer.

(4) The Issuer may, without the consent of the Holders,

(i) correct obvious clerical or computational or other manifest errors in these Terms and Conditions as well as (ii) modify or supplement contradictions or

gaps in provisions; in cases falling under (ii), the only amendments or supplements that may be made are those which, with due consideration given to the interests of the Issuer, do not place an unreasonable burden on the Holders, i.e. those which do not have a material negative impact on the financial situation of Holders. The Issuer shall inform the Holders of such corrections or supplements immediately in accordance with in Section 7.

(5) If any provision of these Terms and Conditions is, or becomes invalid or proves to be incomplete or impracticable, this shall not affect the validity of the remaining provisions. The invalid or impracticable provision shall be replaced, and any gaps closed by an appropriate provision which corresponds to the meaning and purpose of these Terms and Conditions and the commercial interests of the parties. The same shall apply to any omissions that cannot be resolved in accordance with (4).

Frankfurt / Main, March 2007

Sal. Xxxxxxxxx xx. & Cie.

Kommanditgesellschaft auf Aktien (partnership limited by shares)

APPENDIX A

TO THE TERMS AND CONDITIONS OF THE SAL. XXXXXXXXX BUTTERFLY INDEX CERTIFICATES ON

WAIVER OF THE RIGHT TO EXERCISE

*To be completed by the Holder To/ A: *

To the attention of * Fax no.: * Tel. No.: *

Object: SAL. XXXXXXXXX BUTTERFLY INDEX CERTIFICATES

The Holder

Name and surname or companies name of the Holder

Street and no.

Town, province

Telephone

Hereby irrevocably waives the right to the exercise of the Certificates of which is the Holder in accordance with the rules set out in the Terms and Conditions of the Sal. Xxxxxxxxx BUTTERFLY Index Certificates on

Series of the Certificates:

ISIN Code:

Number of Certificates:

Place, Date

Signature (signatures) of the Holder

E. TAXAT ION

General Taxation Information

The information provided below does not purport to be a complete summary of German and Italian tax law and practice currently applicable to the Certificates. Transactions involving Certificates (including purchases, transfers or redemptions), the accrual or receipt of any interest or premium payable on the Certificates and the death of a Holder may have tax consequences for potential purchasers which may depend, amongst other things, upon the tax residence and/or status of the potential purchaser. Potential purchasers of Certificates are therefore advised to consult their own tax advisers as to the tax consequences of transactions involving Certificates and the effect of any tax laws in any jurisdiction in which they may be tax resident or

otherwise liable to tax.

The following summaries do not consider the tax treatment of payments in respect of the Index Components. The taxation provisions applicable thereto may be different (and in some cases significantly different) from those described in the summary below.

Purchasers and/or sellers of Certificates may be required to pay stamp taxes and other charges in addition to the issue price or purchase price (if different) of the Certificates.

Taxation in the Federal Republic of Germany

The following is a general discussion of certain German tax consequences of the acquisition and ownership of Certificates. It does not purport to be a comprehensive description of all tax considerations, which may be relevant to a decision to purchase Certificates, and, in particular, does not consider any specific facts or circumstances that may apply to a particular purchaser. This summary is based on the laws of Germany currently in force and as applied on the date of this Base Prospectus, which are subject to change, possibly with retroactive or retrospective effect.

Prospective purchasers of Certificates are advised to consult their own tax advisors as to the tax consequences of the purchase, ownership and disposition of Certificates, including the effect of any state or local taxes, under the tax laws of Germany and each country of which they are residents.

Tax Residents

Payments of interest on the Certificates, including interest having accrued up to the disposition of a Certificate and credited separately ("Accrued Interest"), if any, to persons who are tax residents of Germany (i.e., persons whose residence, habitual abode, statutory seat, or place of effective management and control is located in Germany) are subject to German personal or corporate income tax (plus solidarity surcharge (Solidaritätszuschlag) at a rate of 5.5 per cent. thereon). Such interest may also be subject to trade tax if the Certificates form part of the property of a German trade or business. Accrued Interest paid upon the acquisition of a Certificate may give rise to negative income if the Certificate is held as a non-business asset.

Upon the disposition, assignment or redemption of a Certificate a Holder as a non-business asset will have to include in his taxable income further amounts if the Certificate can be classified as a financial innovation (Finanzinnovation) under German tax law. In this case, generally the difference between the proceeds from the disposition, assignment or redemption and the issue or purchase price is deemed to constitute interest income subject to income tax (plus the solidarity surcharge) in the year of the disposition, assignment or maturity of the Certificate. Where Certificates are issued in a currency other than Euro the difference will be computed in the foreign currency and will then be converted into Euro. Alternatively, the Holder may show that such difference exceeds the difference between the Redemption Amount and the issue price of the Certificate to the extent attributable to the period over which he has held such instrument. In this case only the lower pro-rated initial yield to maturity, minus interest, including Accrued Interest already taken into account, is taxed as interest income. Where a Certificate forms part of the property of a German trade or business, each year the part of the difference between the issue price of the Certificate and its Redemption Amount attributable to such year as well as interest accrued must be taken into account as interest income and may also be subject to trade tax.

Capital gains from the disposition of Certificates, other than income described in the second paragraph above, are only taxable to a German tax-resident individual if the Certificates are disposed of within one

year after their acquisition or form part of the property of a German trade or business, in which case the capital gains may also be subject to trade tax. Capital gains derived by German-resident corporate Holders will be subject to corporate income tax (plus solidarity surcharge at a rate of 5.5 per cent. thereon) and trade tax.

If the Certificates are held in a custodial account which the Holder maintains with a German branch of a German or non-German bank or financial services institution (the "Disbursing Agent") a 30 per cent. withholding tax on interest payments (Zinsabschlag), plus 5.5 per cent. solidarity surcharge on such tax, will be levied, resulting in a total tax charge of 31.65 per cent. of the gross interest payment. Withholding tax on interest is also imposed on Accrued Interest. If the Certificates qualify as financial innovations, as explained above, and are kept in a custodial account which the Holder maintains with a Disbursing Agent such custodian will generally withhold tax at a rate of 30 per cent. (plus solidarity surcharge at a rate of 5.5 per cent. thereon) from the positive difference between the Redemption Amount or proceeds from the disposition or assignment and the issue or purchase price of the Certificates if the Certificate has been kept in a custodial account with such Disbursing Agent since the time of issuance or acquisition, respectively. Where Certificates are issued in a currency other than Euro the difference will be computed in the foreign currency and will then be converted into Euro. If the Certificates have not been kept in a custodial account with a Disbursing Agent, withholding tax of 30 per cent. is applied to 30 per cent. of the amounts paid in partial or final redemption or the proceeds from the disposition or assignment of the Certificates, respectively.

In computing the tax to be withheld the Disbursing Agent may deduct from the basis of the withholding tax any Accrued Interest paid by the Holder to the Disbursing Agent during the same calendar year. In general, no withholding tax will be levied if the Holder of an instrument is an individual (i) whose instrument does not form part of the property of a German trade or business nor gives rise to income from the letting and leasing of property; and (ii) who filed a withholding exemption certificate (Freistellungsauftrag) with the Disbursing Agent but only to the extent the interest income derived from the

Certificate together with other investment income does not exceed the maximum exemption amount shown on the withholding exemption certificate. Similarly, no withholding tax will be deducted if the Holder has submitted to the Disbursing Agent a certificate of non- assessment (Nichtveranlagungsbescheinigung) issued by the relevant local tax office.

If the Certificates are not kept in a custodial account with a Disbursing Agent, withholding tax will apply at a rate of 35 per cent. of the gross amount of interest paid by a Disbursing Agent upon presentation of a coupon (whether or not presented with the Certificate to which it appertains) to a Holder of such coupon (other than a non-German bank or financial services institution). In this case proceeds from the disposition, assignment or redemption of a Coupon, and if the Certificates qualify as financial innovations 30 per cent. of the proceeds from the disposition, assignment or redemption of a Certificate, will also be subject to withholding tax at a rate of 35 per cent. Where the 35 per cent. withholding tax applies Accrued Interest paid cannot be taken into account in determining the withholding tax base. Again a solidarity surcharge at a rate of 5.5 per cent. of the withholding tax applies so that the total tax burden to be withheld is 36.925 per cent.

Withholding tax and the solidarity surcharge thereon are credited as prepayments against the German personal or corporate income tax and the solidarity surcharge liability of the German resident. Amounts over-withheld will entitle the Holder to a refund, based on an assessment to tax.

Non-residents

Interest, including Accrued Interest, and capital gains are not subject to German taxation, unless (i) the Certificates form part of the business property of a permanent establishment, including a permanent representative, or a fixed base maintained in Germany by the Holder; or (ii) the interest income otherwise constitutes German-source income (such as income from the letting and leasing of certain German-situs property). In the latter case a tax regime similar to that explained above under "Tax Residents" applies. Capital gains from the disposition of Certificates other than proceeds from their sale or redemption re-characterized as interest income for German tax purposes (as

explained above under "Tax Residents") are, however, only taxable in the case of (i) above.

Non-residents of Germany are, in general, exempt from German withholding tax on interest and the solidarity surcharge thereon. However, where the interest is subject to German taxation as set forth in the preceding paragraph and Certificates are held in a custodial account with a Disbursing Agent, withholding tax is levied as explained above under "Tax Residents". Where Certificates are not kept in a custodial account with a Disbursing Agent and interest or proceeds from the disposition or redemption of a Certificate are paid by a Disbursing Agent to a non-resident, withholding tax of 35 per cent. will apply as explained above under "Tax Residents". The withholding tax may be refunded based upon an applicable tax treaty.

Inheritance and Gift Tax

No inheritance or gift taxes with respect to any Certificate will arise under the laws of Germany, if, in the case of inheritance tax, neither the decedent nor the beneficiary, or, in the case of gift tax, neither the donor nor the donee, is a resident of Germany and such Certificates is not attributable to a German trade or business for which a permanent establishment is maintained, or a permanent representative has been appointed, in Germany. Exceptions from this rule apply to certain German expatriates.

Other Taxes

No stamp, issue, registration or similar taxes or duties will be payable in Germany in connection with the issuance, delivery or execution of the Certificates.

Currently, net assets tax is not levied in Germany.

Potential German Tax Law Amendment

The German Federal Government has announced that in the context of the implementation of the EU savings Directive discussed below and the German tax amnesty legislation it would review the existing tax regime for interest payments and is considering to introduce a flat tax rate of 25 per cent. (plus the solidarity surcharge) on the gross interest received, which would be levied by way of withholding and would replace the existing 30 per cent. withholding tax. Non-residents whose Certificates do not form part of the business property of a permanent establishment, including a permanent representative, or fixed base maintained in Germany

would not be subject to the flat tax. However, it is currently uncertain whether and in what form the proposal will be ultimately adopted.

Taxation in Italy

The information set out below is a summary, pursuant to Italian tax legislation and market practice, of the tax regime for the purchase, holding, sale and exercise of Certificates on the part of individual investors resident in Italy, not engaged in entrepreneurial activity.

The following is not intended to be a complete analysis of all tax consequences of the purchase, holding, sale and exercise of Certificates.

The following is based on the tax legislation in force as of the date of this Base Prospectus, it being understood that such legislation is subject to possible changes which could have retrospective effects, and represents only an introduction to the subject.

Investors are advised to obtain professional advice with regard to the tax regime for the purchase, holding, sale and exercise of the Certificates.

Under the joint provisions of article 67 of the Consolidated Act on Income Taxes (Testo Unico delle Imposte sui Redditi) passed by Decree of the President of the Republic of 22 December 1986, no. 917, as modified by Legislative Decree of 12 December 2003, no. 344, Legislative Decree of 18 November 2005, no. 247, and article 5 of Legislative Decree of 21 November 1997, n. 461, and further amendments thereof, proceeds and capital gains, not obtained within the exercise of entrepreneurial activities, realized by persons resident in Italy and individuals equivalent to residents as defined in the Decree no. 461/1997, as amended, arising out of both the exercise and the sale for money consideration of Certificates are subject to substitutive tax of 12.5 per cent. Charges and capital losses arising out of the exercise and sale of Certificates are deductible in accordance with the modalities indicated below; premiums paid on Certificates contribute to create the income of the financial year in which the Certificates are exercised or alienated. The tax-payer may opt among three different alternative taxation regimes: the taxation based on the annual tax return, which constitutes the so called "base regime" applicable unless the exercise of an option by the tax payer; the

"risparmio amministrato" regime and the "risparmio gestito" regime:

a) Annual tax return regime: the application of such regime involves the separated indication by the taxpayer in his/her tax return of proceeds and capital gains, net of charges and capital losses (if any). The net capital gain taxable is determined in the declaration and it is subject to a 12.50 per cent. tax. The substitutive tax owed has to be paid within the terms which are provided for in relation to payments of income taxes. The annual tax return regime is compulsory in the case in which the taxpayer has not opted for one of the two regimes indicated in the following letters b) and c). Conversely, the obligation concerning the declaration does not subsist in relation to capital gains and other proceeds for which the taxpayer have exercised the options indicated letters b) and c). The taxpayer can carry forward the negative balances and offset them with income and other proceeds of the same nature realized in the tax period in which the loss has been suffered and in the following four tax periods.

b) "Risparmio amministrato" regime: in the case in which the individual opt for such regime, which implies the deposit of the assets with an intermediary resident in Italy, the 12.50 per cent. substitutive tax is determined and withdrawn by the Italian resident intermediary with whom the Certificates are deposited in custody and administration, on proceeds and capital gains effectively realised less the capital losses, if any, previously incurred. In case of negative differences intermediaries deduct up to the relevant amount of differences, from the positive differences realised with such negative subsequent transactions entered into within the same relationship, in the same tax period and in following four years.

c) "Risparmio gestito" regime: the pre-condition to opt for such regime is the appointment of an asset manager, resident in Italy and duly authorized. In such regime, the tax is applied at rate equal to 12.50 per cent. by the asset manager at the end of the tax period on the basis of the increase of value of the assets under

management, even if the relevant proceeds have not been yet collected, without taking into account income subject to withholding, non- taxable incomes and incomes for which the taxation occurs within annual tax return.

Nevertheless, it is to be pointed out that according to a different interpretation of the law currently in force, the Certificates could be considered as atypical securities and therefore subjected to taxation at a rate equal to 27 per cent.

EU Directive on the Taxation of Savings Income Under EC Council Directive 2003/48/EC on the taxation of savings income, each EU member-state is required, to provide to the tax authorities of another EU member-state details of payments of interest or other similar income paid by a person within its jurisdiction to, or collected by such a person for, an individual resident in that other EU Member State; however, for a transitional period, Austria, Belgium and Luxembourg may instead apply a withholding system in relation to such payments, deducting tax at rates rising over time to 35 per cent. The transitional period is to terminate at the end of the first full fiscal year following agreement by certain non-EU countries to the exchange of information relating to such payments.

Also, a number of non-EU countries including Switzerland, and certain dependent or associated territories of certain EU Member States, have adopted similar measures (either provision of information or transitional withholding) in relation to payments made by a person within its jurisdiction to, or collected by such a person for, an individual resident in an EU Member State. In addition, the EU Member States have entered into reciprocal provision of information or transitional withholding arrangements with certain of those dependent or associated territories in relation to payments made by a person in an EU Member State to, or collected by such a person for, an individual resident in one of those territories.

This general tax-related information is not a part of the Terms and Conditions, nor can it be used to derive the potential claims of a given Holder. The Issuer assumes no responsibility for withholding taxes. Moreover, a tax advisor should be consulted in order to ensure the minimal legal tax exposure in any

specific case.

F. IM PORTANT NO TICE

General information about the Certificates issued in accordance with the Base Prospectus dated 20 December 2006 can be found in Section H. of the Base Prospectus. The following are additional, important notice regarding the Certificates which are object of these Final Terms.

Representations by Third Parties

The Issuer gives no assurance that the information regarding the Index is correct and complete, since the Index is not created by the Issuer. The Issuer has obtained information from the authorized Determination Agent and incorporated it. Also see Section H.1.2. of the Base Prospectus with respect to representations by third parties.

Obligations arising from the Certificates The Issuer warrants that it alone bears the obligations arising from the Certificates. The

company issuing the Index Components and the licensor of the Index will have no obligation whatever. It is to be specifically noted that the issuance of the Certificates in no way constitutes a (public) sales offer for the Index Components. The companies issuing the Index Components and/or the respective licensors and/or the respective pricing or Determination Agents for the Index were not involved in the preparation of the Final Terms or Base Prospectus, nor do they have any influence on the structuring of the Certificates.

Responsibility for the Index

The Issuer assumes no responsibility for the Holder's information about the securities contained in the Index, nor for the creditworthiness of the companies issuing the securities in the Index, nor for the features or pricing of said securities. In those cases in which the Issuer also acts as the Issuer of the Index Components of an Index, the Issuer will assume the responsibility associated therewith only within the scope of the Base Prospectus and/or the Final Terms for the Index Component(s) in question. Information about special risks arising from the Index Components can be found in the applicable securities and/or sale prospectus for a given Index Component.

Legal Features of Indices

STOXX and Dow Xxxxx will not have any liability in connection with the Certificates.

Specifically,

• STOXX and Dow Xxxxx do not make any warranty, express or implied and disclaim any and all warranty about:

• The results to be obtained by the Discount

Certificates, the owner of the Discount Certificates or any other person in connection with the use of the Dow Xxxxx EUROSTOXX50 and the data included in the Dow Xxxxx EUROSTOXX50®;

• The accuracy or completeness of the Dow

Xxxxx EUROSTOXX50® and its data;

• The merchantability and the fitness for a particular purpose or use of the Dow Xxxxx EUROSTOXX50® and its data;

• STOXX and Xxx Xxxxx will have no liability

for any errors, omissions or interruptions in the Dow Xxxxx EUROSTOXX50® or its data;

• Under no circumstances will STOXX or Dow

Xxxxx be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or Xxx Xxxxx knows that they might occur.

The licensing agreement between Sal.

Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien and STOXX is solely for their benefit and not for the benefit of the owners of the Discount Certificates or any other third parties.

Selling Restrictions

Explicit reference is hereby made to the selling restrictions in Section H. of the Base Prospectus which apply to the Certificates. (See also the corresponding provision in the Terms and Conditions.)

Approval of the Base Prospectus and Notification

Approval of this Base Prospectus pursuant to § 13 of the German Securities Prospectus Act has only been sought from the Competent Authority and from no other competent authority in any other EU

Member State or any other State which has or will implement the Prospectus Directive.

The Issuer has applied for a notification of the Base Prospectus pursuant to § 17, 18 of the German Securities Prospectus Act into Italy.

Method of Publication

The Base Prospectus and the Final Terms can be accessed in electronic from on the Internet webpage of the Issuer ("xxx.xxxxxxxxx-xxxxxxxx.xx"). They can also be obtained, free of charge, from: Sal.

Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Trading & Derivatives, Xxxxxxxxxxxxxxx 0, X-00000 Xxxxxxxxx / Xxxx, Xxxxxxx.

Frankfurt am Main, March 2007

Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien (partnership limited by shares)

PROSPETTO DI BASE

Per BUTTERFLY CERTIFICATES

Su Indici

Emesso da Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien (società tedesca in accomandita per azioni)

Prospetto di Base datato 20 dicembre 2006

Ai sensi del § 6 della legge tedesca sui prospetti relativi a titoli mobiliari (Wertpapierprospektgesetz)

NOTA DI SINTESI ( V ersione italiana)

Il presente capo costituisce la sintesi delle principali caratteristiche e dei rischi dei certificati (i "Certificates") da emettersi sulla base del Programma dei Butterfly Certificates (il "Programma"). La presente sintesi consi- ste in un'introduzione al prospetto di base (il "Prospetto di Base"). L'investitore dovrà pertanto fondare ogni decisione di investimento nei relativi Certificates sulla base di tutte le ulteriori informazioni contenute nel Pro- spetto di Base, siano esse esposte o incluse per riferimento ovvero in supplementi e nelle condizioni definitive (le "Condizioni Definitive") del Prospetto di Base. L'Emittente che è responsabile per la presente nota di sintesi (la "Nota di Sintesi") nonché per la sua traduzione, può essere ritenuta responsabile qualora la Nota di Sintesi risulti fuorviante, erronea o incoerente se letta unitamente alle altre parti del Prospetto di Base. Qualora siano fatti valere diritti dinanzi ad un tribunale sulla base del presente Prospetto di Base, incluse le informazioni per riferimento ovvero i supplementi e le Condizioni Definitive, l'investitore quale ricorrente ai sensi delle leggi applicabili degli Stati Membri dell'EU, potrebbe essere tenuto a sostenere i costi della traduzione del presente Prospetto di Base, incluse le informazioni per riferimento ovvero i supplementi e le Condizioni Definitive prima

dell'inizio del procedimento.

La seguente Nota di Sintesi è parte integrante del Prospetto di Base e va letta unitamente al Prospetto di Base nonché alle Condizioni Definitive.

L'acquisto dei Certificati può implicare notevoli rischi ed è adatto solo a quegli investitori che abbiano la cono- scenza e l'esperienza di strumenti finanziari necessari a valutare i rischi e i benefici di un investimento nei Cer- tificates. Prima di decidere se effettuare o meno l'investimento, gli eventuali investitori dei Certificati devono esaminare attentamente, con i propri avvocati, consulenti commerciali, finanziari, o altri eventuali consulenti, alla luce della loro situazione finanziaria e dei loro obiettivi di investimento, se un investimento nei Certificati sia per loro adatto. Gli investitori devono pertanto accertarsi di prendere una decisione circa l'investimento nei Certificates sulla base dell'intero Prospetto di Base, incluse tutte le ulteriori informazioni contenute nel Pro-

spetto di Base, siano esse esposte o incluse per riferimento ovvero in supplementi e nelle Condizioni Definitive.

Nel presente Prospetto di Base ogni riferimento a €, EUR ovvero euro si intende come riferimento alla valuta introdotta il 1 gennaio 1999 con l'inizio del terzo stadio dell'Unione Economica e Monetaria Europea in cui l'euro è diventato la valuta legale in undici stati membri dell'Unione Europea partecipanti all'Unione Econo-

mica e Monetaria Europea.

1. Nota di Sintesi dei Fattori di Rischio

L'acquisto di Certificates può implicare notevoli rischi e ed è adatto solo a quegli investitori che abbiano la cono- scenza e l'esperienza di strumenti finanziari necessari a valutare i rischi e i benefici di un investimento nei Cer- tificates. Prima di decidere se effettuare o meno l'inve- stimento, gli eventuali investitori dei Certificates devo- no esaminare attentamente alla luce della loro situazione finanziaria e dei loro obiettivi d'investimento ogni in- formazione contenuta nel Prospetto di Base.

1.1. Rischi relativi all'Emittente Rischi Generali relativi all'Emittente

L'Emittente, in relazione alla propria attività, è esposto a rischi la cui realizzazione può eventualmente portare ad un'impossibilità totale o parziale, di adempiere pun- tualmente ai propri obblighi relativi all'emissione di titoli mobiliari.

L'Emittente è esposto a rischi di mercato poiché com- mercializza prodotti finanziari. Tali rischi di mercato, dato che il gruppo Sal. Xxxxxxxxx (il "Gruppo Sal. Xxxxxxxxx") si concentra su operazioni finanziarie e viene conseguentemente classificato quale "customer account business", portano i rischi di mercato ad avere un'importanza particolare nel contesto del profilo di rischio complessivo del Gruppo Sal .Xxxxxxxxx. Tali rischi risultano da potenziali fluttuazioni dei relativi parametri di valutazione e da conseguenti variazioni nel valore del portfolio. I parametri determinanti della valu- tazione sono i tassi d'interesse, i tassi di cambio, i prezzi dei titoli azionari, il livello dell'indice azionario, così come altri fattori più complessi quali l'implicita instabi- lità e le aspettative sui dividendi. Anche il frazionamen- to del credito costituisce un importante parametro.

I rischi di controparte (rischi relativi al credito) sono il risultato di potenziali perdite di valore sofferte da mutui, titoli o strumenti finanziari derivati. Tali rischi sono causati da un mutuatario, una controparte o un Emitten- te inadempiente o la cui valutazione del credito sia stata declassata.

L'Emittente è inoltre esposto a rischi operativi. Secondo il Comitato per la Supervisione Bancaria di Basilea (Basel Committee on Banking Supervision) i rischi ope- rativi sono quei rischi di perdita conseguenti alla man- canza o inadeguatezza di processi, soggetti e sistemi interni, o conseguenti ad eventi esterni.

Per l'Emittente, il rischio di liquidità è il rischio di tro- varsi nell'impossibilità di adempiere, in modo puntuale e completo, ad obbligazioni di pagamento, presenti o future.

L'Emittente ha individuato i rischi collegati allo svilup- po futuro nella continua pressione di margine dovuta ad una competizione sempre maggiore ad allo sviluppo nel mercato dei capitali. Relativamente ai costi dei rischi di credito, l'Emittente si attende variazioni marginali se comparati all'anno precedente.

Rischi Specifici relativi all'Emittente

I Certificates generano obblighi immediati, non garantiti e non subordinati da parte dell'Emittente di pari impor- tanza tra di loro nonché di pari importanza rispetto a tutti gli altri obblighi non garantiti e non secondari pre- senti e futuri dell'Emittente, ad eccezione di quei debiti cui disposizioni di legge cogenti attribuiscono carattere prioritario. Di conseguenza, l'investitore si assume il rischio di una possibile insolvenza da parte dell'Emitten- te. Un'assicurazione tramite il fondo di garanzia dei depositi (Einlagesicherungsfond) della confederazione delle banche tedesche non esiste per questo tipo di titoli. Conseguentemente, per l'investitore nella decisione del suo investimento, la solvibilità dell'Emittente è impor- tante.

I Certificates rappresentano esclusivamente obblighi dell'Emittente. In caso di perdita, i portatori dei Certifi- xxxxx (i "Portatori" o il "Portatore") non hanno alcun diritto di regresso nei confronti dell'Emittente dell'indice sottostante (l'"Indice"). Qualora l'Emittente dei Certifi- xxxxx e l'emittente dei titoli componenti l'Indice (le "Componenti dell'Indice") siano identici, il Portatore sarà esposto al rischio di perdita da parte dell'Emittente relativamente all'Emittente nonché relativamente all'e- mittente calcolante l'Indice e/o emittente le Componenti dell'Indice. Non può pertanto essere escluso che si veri- fichino perdite relative allo stato d'insolvenza di un emittente.

Conflitto d'Interessi

Qualora necessario, l'Emittente potrà porre in essere operazioni di hedging (per proprio conto o per conto di terzi) relative alle Componenti dell'Indice. Tali opera- zioni di hedging potrebbero avere effetti sul prezzo di mercato delle Componenti dell'Indice e ciò, a sua volta, sull'Indice e sui Certificates. Inoltre, l'Emittente può avere un interesse rilevante nelle Componenti dell'Indi-

ce, cosicché l'emissione dei Certificates potrebbe risul- tare in un conflitto d'interessi.

L'Emittente può inoltre emettere ulteriori titoli mobiliari aventi caratteristiche simili o identiche ai Certificates. Un'offerta dei Certificates in concorrenza con prodotti esistenti può avere un impatto sui Certificates.

In relazione ad offerte future di Componenti dell'Indice, l'Emittente può agire in qualità di consorzio, consulente finanziario, banca d'investimenti. Tali attività possono portare ad un conflitto d'interessi e possono influenzare il valore dei Certificates.

L'Emittente può istruire consulenti esterni e/o advisors per la composizione e le rettifiche dell'Indice. Tali con- sulenti possono perseguire i propri interessi relativa- mente ai Certificates ed al loro parere sull'emissione. Un conflitto d'interessi dei consulenti può portare ad una decisione d'investimento od un parere non nell'interesse dell'investitore ma nel proprio interesse.

In relazione ad attività di market making esiste un po- tenziale conflitto d'interesse in quanto l'Emittente agisce direttamente come market maker.

1.2. Rischi relativi ai Certificates

Rischio relativo all'Incertezza del Profilo di Rimborso

L'andamento del valore di un Certificate non è certo al momento del suo acquisto. Il rimborso dei Certificates alle condizioni di rimborso più favorevoli possibili per l'investitore e/o il rimborso di una determinata somma non è altresì garantito.

I Certificates implicano il rischio di una perdita di valo- re inaspettata e di ampia portata. Investendo in Certifi- xxxxx, l'investitore si espone al rischio di perdita dipen- dente sia dall'andamento delle Componenti dell'Indice, sia dagli eventuali fattori decisivi per l'andamento dell'/e opzione/i garantita/e con il Certificate. La perdita po- tenziale dipende sempre dal prezzo pagato per l'acquisto del Certificate. In relazione all'andamento dell'Indi- ce, l'investitore potrebbe subire una grave perdita del capitale investito limitata dalla differenza tra il prezzo d'acquisto e l'importo di liquidazione minimo (l'"Importo di Liquidazione Minimo"), se positivo.

L'investitore, inoltre, può finanziare l'acquisto dei Certi- ficates ricorrendo ad un finanziamento. In tal caso, se il

mercato non raggiunge le aspettative dell'investitore, l'investitore non solo subirà una perdita risultante dal- l'investimento ma dovrà peraltro rimborsare il credito richiesto ed i relativi interressi.

In caso di cessione anticipata, la perdita subita dall'inve- stitore è pari alla differenza tra il prezzo d'acquisto e il prezzo di vendita del Certificate.

Rischi relativi alla Struttura dei Certificates

La struttura specifica dei Certificates può comportare un aumento dei rischi legati all'acquisto di Certificates.

Fondamentalmente, oltre all'eventuale raggiungimento di determinate soglie di valore (le cosiddette "Barriers") da parte dell'Indice, i fattori decisivi per l'andamento delle opzioni garantite con il Certificate comprendono, in particolare, (i) la volatilità, ovvero le oscillazioni del corso dell'Indice previste, (ii) il periodo di validità re- stante delle opzioni garantite con i Certificates, (iii) i tassi di interesse sul mercato monetario, nonché, salvo eccezioni, (iv) i pagamenti dei dividendi previsti relati- vamente alle Componenti dell'Indice.

Persino quando, nel corso della durata del Certificate, il corso dell'Indice presenta un andamento favorevole, si può verificare una diminuzione del valore del Certifica- te a seguito di tali fattori aggiuntivi che incidono sul valore.

Qualora il livello dell'Indice sia superire al valore inizia- le dell'Indice ("Indice Iniziale"), l'investitore può parte- cipare parzialmente all'andamento dell'Indice. Qualora il livello dell'Indice sia inferiore all'Indice Iniziale, l'inve- stitore può partecipare all'andamento assoluto dell'Indi- ce. Qualora il prezzo raggiunga una determinata soglia, pari a o superiore la Barriera al ribasso (la "Barriera al Ribasso"), il ritorno economico che l'investitore avrebbe raggiunto con un investimento diretto nell'Indice (piut- tosto che nel Certificate), può essere superiore al ritorno economico del Certificate.

Rischi Particolari legati all'Indice

Al momento del rimborso di un Certificate, l'ammontare del valore di rimborso ottenuto dall'investitore dipende unicamente dal livello dell'Indice il quale dipende, a sua volta, dalle singole Componenti dell'Indice. Durante la vita dei Certificates, il valore di mercato dei Certificates può anche divergere dall'andamento delle Componenti dell'Indice in quanto, oltre ad altri fattori, il tasso di

interesse ed eventuali modifiche circa le aspettative dei dividendi possono in particolar modo influenzare l'an- damento dei prezzi dei Certificates. L'investitore non può quindi fare affidamento sulla stabilità di valore del Certificate.

Informazioni sui principi di investimento dell'Indice possono essere desunte dalla descrizione dell'Indice contenuta nelle Condizioni Definitive.

L'Emittente non assume alcuna responsabilità rela- tivamente alle informazioni possedute dal Portatore sull'Emittente delle Componenti dell'Indice, né rela- tivamente alla solvibilità dell'Emittente delle Com- ponenti dell'Indice né alle loro condizioni specifiche né al calcolo del prezzo di tali Componenti dell'Indi- ce Nel caso in cui l'Emittente sia anche l'Emittente dei titoli compresi nelle Componenti dell'Indice, l'Emittente si assume solo ed esclusivamente la responsabilità per ciò che concerne le Componenti dell'Indice comprese nell'Indice.

Non è possibile prevedere se e in che misura si svilup- perà in un qualsiasi momento un mercato secondario per le Componenti dell'Indice, né a quali prezzi l'Emittente può comprare e vendere le Componenti dell'Indice su tale mercato secondario o se detto mercato secondario presenterà un certo grado di liquidità o meno.

Se l'andamento del Certificate nel corso della durata del prodotto e il tipo di rimborso alla scadenza dipendono dall'andamento delle quotazioni di due Componenti dell'Indice, la correlazione tra tali titoli, ovvero il grado di dipendenza dell'andamento della quotazione dell'uno rispetto alla quotazione degli altri, risulta di notevole importanza per il valore del Certificate. Ad esempio, se si tratta di Componenti dell'Indice dello stesso settore, è presumibile che vi sia una forte correlazione. A tale correlazione viene assegnato un valore che varia da "–1" a "+1", in cui una correlazione pari a "+1", ovvero un'al- ta correlazione, significa che gli andamenti delle quota- zioni delle Componenti dell'Indice sono identici. Nel caso di una correlazione pari a "–1", ovvero di una bassa correlazione, invece, le Componenti dell'Indice si muo- vono in direzione esattamente opposta. Una correlazio- ne pari a "0" indica, infine, che gli andamenti delle quotazioni delle Componenti dell'Indice sono comple- tamente indipendenti l'uno dall'altro. A seconda della forma specifica della struttura di rimborso, un'alta corre- lazione tra le singole Componenti dell'Indice comporta

un aumento o una diminuzione del rischio per l'investi- tore in quanto non viene messa in pratica né perseguita alcuna diversificazione tra diverse strategie di investi- mento.

Se un Indice si basa su Componenti dell'Indice denomi- nate in valuta diversa (ad esempio una Componente dell'Indice è denominata in Euro, un'altra Componente dell'Indice è denominata in USD ed un'altra ancora è denominata in £), in tal caso, oltre al rischio generale di correlazione si verificherà un ulteriore rischio di corre- lazione basato su valute diverse delle Componenti del- l'Indice. Fluttuazioni delle valute possono avere un impatto negativo sull'andamento delle Componenti dell'Indice. Vi sarà pertanto una bassa correlazione qualora le Componenti dell'Indice sono denominate in valute diverse poiché fluttuazioni in una sola valuta hanno un impatto inferiore sul livello dell'Indice. D'altro canto, vi sarà un'alta correlazione qualora le Componen- ti dell'Indice sono denominate nella stessa, o in maniera preponderante nella stessa valuta, poiché, in tal caso, fluttuazioni nella stessa, o in maniera preponderante nella stessa valuta, avranno un impatto sproporzionato sul livello dell'Indice.

Nessuna Compensazione della Perdita mediante altri Rendimenti

In genere, un Certificate non garantisce alcun diritto al pagamento di interessi, dividendi o altre distribuzioni regolari, per cui, fondamentalmente, non frutta alcun rendimento costante garantito. I possibili ribassi del corso del Certificate non possono quindi essere com- pensati da alcun altro tipo di rendimento.

Canoni e Costi di Transazione quali Costi che Riducono il Valore

A ciò si aggiunge che gli eventuali costi di transazione imputati in conto dalla banca depositaria, nonché l'even- tuale canone di gestione aggiuntivo riscosso dall'Emit- tente nel caso dei Certificates e l'eventuale performance fee dell'Emittente possono ripercuotersi sull'entità del- l'importo di liquidazione (l'"Importo di Liquidazione") alla data di scadenza. Nel caso di Certificates, in parti- colare, bisogna considerare che, dal punto di vista del- l'investitore, i costi di transazione si possono ripercuote- re in maniera doppiamente negativa sul valore dei Certi- ficates, in quanto essi incidono sul rendimento derivante dai Certificates sia al momento della compravendita (in borsa) delle Componenti dell'Indice ad opera dell'Emit- tente sotto forma di canone di gestione da quest'ultima

richiesto sia al momento della compravendita dei Certi- ficates ad opera dell'investitore.

Regime Fiscale

Potenziali acquirenti e venditori dei Certificates devono tener presente che potrebbero essere tenuti a pagare delle imposte o spese amministrative ai sensi di leggi o prassi nello stato o giurisdizione in cui tali Certificates vengono ceduti.

Negoziazione dei Certificates - Liquidità

I Portatori possono, in linea di principio, cedere i loro Certificates in qualsiasi momento sia in borsa che fuori borsa.[L'Emittente si propone, in presenza di condizioni di mercato consuete, di fissare regolarmente i prezzi di compravendita dei Certificates. Al di là di ciò, l'Emit- tente non si assume tuttavia alcun tipo di obbligo giuri- dico relativamente all'entità o alla realizzazione dei prezzi di compravendita. L'investitore non dovrebbe quindi fare affidamento sul fatto di poter cedere il pro- prio Certificato ad un determinato prezzo o in determi- nato momento nel corso della durata del Certificate.]

[In caso di ammissione a quotazione presso Borsa Ita- liana S.p.A.: I Certificates potrebbero presentare tempo- ranei problemi di liquidità perciò può verificarsi l'even- tualità che il prezzo di tali strumenti possa essere in- fluenzato dalla limitata liquidità degli stessi. Per questo motivo il market maker assume l'impegno di esporre e ristabilire, le posizioni di prezzo acquisto/vendita indi- cate nelle Istruzioni al Regolamento dei mercati orga- nizzati e gestiti da Borsa Italiana S.p.A., per un quanti- tativo minimo di negoziazione stabilito dalla Borsa Italiana S.p.A. e con un differenziale tra prezzo di do- manda e di offerta non superiore al differenziale massi- mo previsto nelle istruzioni sopraccitate.]

Investimenti Finalizzati all'Eliminazione dei Rischi L'investitore non dovrebbe inoltre fare affidamento sul fatto di poter concludere in qualsiasi momento prima della scadenza del Certificate affari che gli consentano di eliminare completamente o ridurre i rischi a suo cari- co in quanto ciò dipende, di volta in volta, sia dalle condizioni di mercato che dalle condizioni contrattuali specifiche sottostanti. Tali affari potrebbero essere con- clusi ad un prezzo svantaggioso di mercato così da risul- tare in una perdita rilevante per l'investitore.

Risoluzione di Transazioni Contestuali dell'Emit- tente

Al fine di garantire il rispetto dei propri obblighi deri- vanti dai Certificates, l'Emittente conclude costantemen- te transazioni relative all'Indice aventi tale scopo. L'e- sercizio dei Certificates, a scadenza o al momento della disdetta, determina la risoluzione di tali transazioni. A seconda del numero di Certificates da esercitare, della situazione di mercato corrente e della liquidità nelle Componenti dell'Indice in quel momento, non è possibi- le escludere che la posizione dell'Indice e, di conse- guenza, l'entità del valore di rimborso o il tipo di rim- borso non risentano in qualche modo di tali fattori.

Sconvolgimenti di Mercato e Modifiche

L'Emittente determina l'insorgenza o l'esistenza di scon- volgimenti di mercato ("Sconvolgimento di Mercato") in conformità al regolamento dei Certificates e anche le eventuali modifiche vengono adottate in conformità a tale regolamento. Gli Sconvolgimenti di Mercato pos- sono ridurre il valore dei Certificates e ritardarne il rimborso. Qualora vengano applicate delle modifiche relativamente all'Indice, non è possibile escludere che le valutazioni sottostanti ad una determinata modifica si rivelino in seguito errate e che la modifica adottata risulti pertanto svantaggiosa per l'investitore.

Rischio Generale di Interessi

L'investimento in Certificates può comportare un ri- schio di interessi a causa delle oscillazioni dei tassi di interesse da pagarsi sui depositi nella valuta dei Certifi- xxxxx. I tassi di interesse dipendono dalla domanda e dall'offerta sui mercati monetari internazionali su cui incidono fattori politico-economici, speculazioni, inter- venti di banche centrali e organi governativi o altri fat- tori politici. Se la Componente dell'Indice è un titolo a tasso fisso, c'è da aspettarsi che il valore del Certificate venga fortemente influenzato dalle oscillazioni dei tassi di interesse.

2. Sintesi relativa all'Emittente Informazioni Generali sull'Emittente

L'Emittente è l'istituto bancario comunemente denomi- nato anche, nel gergo commerciale, "Istituto Bancario Sal. Xxxxxxxxx", cositutito nel 1989 a seguito della trasformazione da "Personenhandelsgesellschaft" (cor- rispondente, in linea di principio, a una società in nome collettivo italiana) a "Kommanditgesellschaft auf A- ktien" (corrispondente, in linea di principio, ad una società in accomandita per azioni italiana) dell'Istituto

Bancario Sal. Xxxxxxxxx xx. & Cie. fondato in Germa- nia nel 1789. L'Emittente è soggetto al diritto tedesco. La sua sede legale si trova a Colonia, con succursali, filiali o rappresentanze a Francoforte s. Meno, Berlino, Düsseldorf, Amburgo, Monaco, Stoccarda, Baden- Baden, Lussemburgo, Vienna, Salisburgo e Praga. La sede principale dell'Emittente si trova tuttavia a Colonia.

Attività Commerciale

L'attività dell'Emittente consiste nello svolgimento di operazioni bancarie di tutti i tipi ad eccezione delle operazioni di investimento. Oltre a quello dei servizi, gli altri due settori di attività principali dell'Emittente sono la gestione patrimoniale, che comprende, come campi d'attività, l'asset management e il private banking, e l'investment banking, che comprende, come campi d'at- tività, fusioni e incorporazioni, transazioni immobiliari, finanziamenti, transazioni di capitale proprio, consulen- za istituzionale in campo azionario, negoziazione titoli e derivati e gestione cambi.

Dati Riguardanti l'Attività

La tabella seguente fornisce alcuni dati finanziari (certi- ficati) relativi all'attività del gruppo Sal. Xxxxxxxxx nel corso degli ultimi due esercizi finanziari conclusi, ri- spettivamente, al 31 dicembre 2004 e al 31 dicembre

2005.

Fattori di Rilievo che hanno interessato l'Attività Recente dell'Emittente

Dalla fine dell'esercizio 2005, i seguenti tre eventi sono stati di rilievo: (i) l'acquisto di un ulteriore 10% delle azioni della società Fiancière Atlas, l'acquisto di circa il 10% delle azioni della Prader Bank AG e (iii) l'acquisto di Attica Alternative Investment Limited, Londra da trasferirsi nella Integrated Management plc tramite uno scambio di azioni.

Un ulteriore evento di rilievo riguarda l'aumento di azioni da parte della IVG Immobilien AG in Xxxxxxxxx Immobilien-Kapitalanlagegesellschaft mbH (OIK) dal 50,1% al 94%. A tal fine IVG ha acquistato 25% delle azioni dell'Emittente. L'aumento della partecipazione sino al 94% è previsto per gennaio 2007.

Struttura Organizzativa dell'Emittente

Al 31 dicembre 2005 il gruppo Sal. Xxxxxxxxx com- prendeva, oltre all'Emittente, 104 filiali tedesche e 52 filiali estere. Di queste, 40 filiali tedesche e 39 filiali estere sono state incluse ai fini del consolidamento.

Le partecipazioni fondamentali del gruppo sono riunite nell'ambito di una holding, la Sal. Xxxxxxxxx Interna- tional S.A.

Sede Sociale

La sede sociale dell'Emittente è la seguente: Sal. Op-

2004

mln di EURO

(certifi- cato)

2005

mln di EURO

(certifi- cato)

penheim, Xxxxx Xxxxxxxxxxxxx 0, 00000 Xxxxxxx, Xxx- mania, numero di telefono: x00 (0)000 000 00.

Sito Internet

Il sito Internet dell'Emittente è il seguente: xxx.xxxxxxxxx.xx.

Totale delle attività

Attività di ri- schio

11.898 32.029

6.957 13.658

3. Sintesi relativa ai Certificates

Oggetto del Prospetto di Base

I Certificates appartengono alla tipologia Butterfly

Certificates. L'Emittente garantisce ad ogni Portatore il

Capitale proprio 1.300 1.764

diritto a ricevere un Importo di Liquidazione dipendente dall'andamento dell'Indice.

Risultato attività

ordinaria

Coefficiente patrimoniale (%)

Indice costi- ricavi (%)

157 283

25,2 13,4

80,3 77,5

Conflitto d'Interesse

L'Emittente potrebbe essere coinvolta in operazioni di hedging che riguardano i titoli compresi nell'Indice. onto proprio o di terzi al fine di proteggere, in particolar Tali operazioni possono ripercuotersi sia positivamente che negativamente sull'andamento del valore del sotto- stante e, quindi, anche sul valore dei Certificates. L'E- mittente, inoltre, può detenere delle partecipazioni rile-

vanti in Componenti dell'Indice da cui possono derivare dei conflitti d'interesse relativamente all'emissione dei Certificates in questione.

L'Emittente può emettere ulteriori strumenti derivati aventi delle caratteristiche strutturali simili o identiche a quelle dei Certificati in questione. Il collocamento sul mercato di tali prodotti in diretta concorrenza con i Certificati può avere delle ripercussioni sul valore dei Certificates.

In relazione a offerte future di Componenti dell'Indice, l'Emittente può fungere da membro di un consorzio, consulente finanziario o banca d'affari. Operazioni di questo tipo possono determinare dei conflitti d'interesse e andare quindi ad incidere sul valore dei Certificates.

Informazioni sui Certificates

Descrizione Generale dei Certificates

Il codice ISIN e il codice identificativo del titolo (in tedesco, WKN) sono specificati nelle Condizioni Defi- nitive.

Descrizione dei Diritti inerenti ai Certificates

Con l'acquisto dei Certificates, l'investitore acquisisce il diritto al rimborso dei Certificates in conformità al Regolamento.

I Certificates hanno stile europeo e possono essere (au- tomaticamente) esercitati a scadenza.

Procedura di Rimborso

A scadenza, l'Emittente si impegna a mettere a disposi- zione presso l'agente di deposito (l'"Agente di Deposi- to"), come indicato nelle Condizioni Definitive, le somme necessarie al rimborso ai fini della loro trasmis- sione alle banche depositarie competenti per il loro successivo accreditamento a favore dei Portatori.

Descrizione del Prodotto

Con l'acquisto dei Certificates il Portatore ha il diritto di ricevere un Importo di Liquidazione secondo le varie opzioni come descritte nel Regolamento dei Certifica- tes. Ai sensi di tale Regolamento il Portatore riceverà almeno l'Importo di Liquidazione Minimo qualora la/le barriera/e, come specificato nelle varie opzioni di pa- gamento, non sia/siano stata/e raggiunta/e. Qualora la/le barriera/e sia/siano stata/e raggiunta/e, il Portatore rice- verà un Importo di Liquidazione pari all'Importo di Liquidazione Minimo. I Certificates si intendono quali

strumenti per generare profitto anche qualora i mercati presi in considerazione dall'Indice abbiano andamenti laterali finché certe barriere siano raggiunte.

Informazioni sull'Indice

Descrizione dell'Indice

Il sottostante dei Certificates è rappresentato da un indi- ce. La tipologia specifica dell'Indice è indicata nelle Condizioni Definitive.

Nelle Condizioni Definitive vengono altresì fornite delle indicazioni su alcune fonti dove è possibile trovare informazioni tanto sull'andamento passato e futuro del valore dell'Indice quanto sulle volatilità storiche.

Fattori Valore Fissazione Prezzo

I Certificates non rappresentano diritti azionari riguardo alle Componenti dell'Indice. Per tale ragione i Portatori non hanno alcun rischio in qualità di azionisti delle Componenti dell'Indice.

Durante la vita dei Certificates, il loro valore è note- volmente influenzato dall'andamento economico del- l'Indice. Qualora le aspettative circa i dividendi delle Componenti dell'Indice cambaino, il valore di mercato dei Certificates potrà pure salire o scendere.

Sconvolgimenti di Mercato e Modiche

Nel Regolamento dei Certificates viene fornita la defini- zione di Sconvolgimento di Mercato e vengono descritte le misure correttive prese in caso di Sconvolgimento di Mercato nonché le regole per l'adozione di rettifiche relative all'Indice.

Condizioni dell'Offerta

Il volume di emissione dei Certificates e la data di inizio della vendita sono specificati nelle Condizioni Definiti- ve.

I Certificates possono prevedere un periodo di sottoscri- zione fisso, dove l'Emittente si riserva però il diritto di chiudere anticipatamente tale periodo di sottoscrizione. In genere, i Certificates possono essere acquistati fino all'ultimo giorno di negoziazione.

Il prezzo di vendita iniziale dei Certificates è specificato nelle Condizioni Definitive.

Nelle Condizioni Definitive vengono inoltre fornite indicazioni sull'/sugli agente/i di determinazione ("A-

gente/i di Determinazione"), Agente/i di Deposito e su ogni partner di cooperazione ("Partner di Cooperazio- ne"), ove applicabile.

Contrattazione in Borsa dei Certificati

Nelle Condizioni Definitive vengono specificati termini di un'eventuale quotazione in borsa.

Ulteriori Informazioni

Nelle Condizioni Definitive vengono altresì forniti i dettagli sulle funzioni di eventuali terzi partecipanti all'emissione, nonché sulla pubblicazione di comunica- zioni relative ai Certificates.

In alcuni paesi, sia la divulgazione del Prospetto e/o delle Condizioni Definitive comprensive del Regola- mento dei Certificates che l'offerta o l'acquisto dei Cer- tificates potrebbero essere soggetti ad alcune limitazioni di legge. Un'offerta o l'acquisto di Certificates in un qualsiasi paese sono consentiti solo ed esclusivamente nel rispetto delle restrizioni alla vendita in vigore in quel paese, nonché in conformità alle norme sull'acqui- sto di Certificates ivi in essere e solo qualora ciò non determini degli obblighi in capo all'Emittente che vanno oltre quelli previsti nel presente Prospetto. Chiunque entri in possesso del presente Prospetto o di parti dello stesso è tenuto ad informarsi personalmente sull'esisten- za di eventuali restrizioni e a rispettarle. I potenziali acquirenti di Certificates dovrebbero accertarsi presso i propri consulenti legali se l'eventuale acquisto di Certi-

ficates è consentito nel loro caso specifico oppure se ciò è soggetto a restrizioni.

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Table of Contents

AVVISO n.19643 07 Novembre 2007 SeDeX − INV. CERTIFICATES

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