AVVISO n.18821 23 Ottobre 2007 SeDeX − INV. CERTIFICATES

AVVISO n.18821

23 Ottobre 2007

SeDeX − INV. CERTIFICATES

Mittente del comunicato : Borsa Italiana

Societa' oggetto dell'Avviso

: SAL. XXXXXXXXX XX. & CIE.

Oggetto : Inizio negoziazione investment Certificates − classe B "Xxx Xxxxxxxxx"

Testo del comunicato

Si veda allegato.

Disposizioni della Borsa

Strumenti finanziari: “Protect Cash Collect Certificates on Nikkei225”

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: 25 ottobre 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

Modalità di liquidazione

dei contratti: liquidazione a contante garantita il terzo giorno di borsa aperta successivo a quello di conclusione dei contratti.

CARATTERISTICHE SALIENTI DEI TITOLI OGGETTO DI QUOTAZIONE

“Protect Cash Collect Certificates on Nikkei225”

Quantitativo minimo di

negoziazione di ciascuna serie: vedasi scheda riepilogativa delle caratteristiche dei

certificates (colonna “Lotto Neg.”) Controvalore minimo dei blocchi: 150.000 Euro

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: periodico-annuale

DISPOSIZIONI DELLA BORSA ITALIANA

Dal giorno 25 ottobre 2007, i “Protect Cash Collect Certificates on Nikkei225” verranno inseriti nel Listino Ufficiale, sezione Securitised Derivatives.

Allegati:

- Scheda riepilogativa delle caratteristiche dei certificates;

- Final Terms;

- Traduzione della Nota di Sintesi.

Imp. Liquid.

Serie Isin Sigla SIA Descrizione Sottostante Pr. Eserciz. Scad. Val.Nom. Ammontare Lotto NLottiMM Barriera Periodico

1 DE000SAL5BW4 T00536 102869 SON225CC16127,42OT10 Nikkei 225 16127,42 29/10/2010 100 150000 1 50 11289,19 8,5

Secondo Strike

12901,94

FINAL TERMS

for PROTECT Cash Collect Certificates relating to Nikkei 225®

of Sal. Xxxxxxxxx xx. & Cie. KGaA

ISIN Code: DE 000 SAL 5BW 4

Final terms dated 7 August 2007 in the version as of 10 October 2007

Relating to the Base Prospectus dated 3 August 2007 as amended by the supplement dated 25 September 2007

Presentation of the Final Terms

The object of the Final Terms dated 7 August 2007 in the version as of 10 October 2007

and relating to the Base Prospectus dated 3 August 2007 as amended by the supplement dated 25 September 2007 are PROTECT Cash Collect Certificates issued by Sal. Xxxxxxxxx xx. & Cie. KGaA, Cologne (the 'Certificates'). The Certificates are divided into 150,000 Certificates (collectively referred to as the 'Issue').

The Final Terms relating to the Base Prospectus are presented in accordance with article 26 (5) subparagraph 1 alt. 2 of Commission Regulation (EC) No. 809/2004 through the inclusion of the Final Terms in the Base Prospectus, i.e. all sections containing amendments due to the Final Terms are reproduced. All blanks will then be filled. Alternative or elective information or provisions (indicated in the Base Prospectus by square brackets) which are not explicitly set out in the Final Terms are considered to have been deleted from the Base Prospectus. The template for Section A can be found on pages 3 to 7 of the Base Prospectus. The templates for Sections B, C, D and E of the Final Terms can be found in the sections of the Base Prospectus with corresponding content. The template for Section E can be found on pages 3029 to 3029 of the Base Prospectus. The Final Terms therefore comprise the following components:

A. Risk Factors ............................................................................................................................................ 3

B. Securities Note ........................................................................................................................................ 8

C. Tables and Certificate Terms and Conditions ......................................................................................... 14

D. Taxation .................................................................................................................................................. 25

E. Important Information ............................................................................................................................. 29

Please note that the full information on the Issuer and the offer can only be obtained by reading both the Base Prospectus and the Final Terms. In the event that information contained in the Final Terms and the Certificate Terms and Conditions contained therein differs from the information contained in the Base Prospectus, the information in the Final Terms has priority over the information in the Base Prospectus. This does not authorise the Issuer to deviate from the framework set out in the Base Prospectus when presenting the Final Terms.

Any investment in these Certificates is subject to the risk of total loss. More detailed information can be found in the description of risk factors (see Final Terms Section A).

A. RI SK FACTORS

Potential buyers of Certificates that form the object of the Base Prospectus or the Final Terms should consider the risk factors described below when making their investment decision and only make this decision on the basis of the entire Base Prospectus, including documents incorporated by reference, as well as the Final Terms.

1. Risk factors relating to the Issuer

1.1. General Issuer-related risk factors

The risk information does not form part of the Certificate Terms and Conditions.

Within the framework of its business activities, the Issuer is subject to risks, the realisation of which, in the most extreme case, could result in the Issuer not being able to meet the obligations under Issues of securities or not being able to do so in a timely manner.

This general risk information does not substitute individual consultation with the investor’s own bank or other financial advisors before the purchase decision is made. The information on financial forward transactions and their risks is – to the extent necessary – the responsibility of the respective advisor.

The order and the degree of detail of the information on risks do not provide any indication as to the extent of their potential financial impact, in each case, in the event that such risks materialise, or as to the probability of the risks presented materialising. It should also be noted that certain risks may have compounding effects with other risks. Potential investors should only buy the Certificates if they are able to bear the risk of a total loss of the amount invested, including the related transaction costs.

The Issuer is subject to market risks relating to trading in financial products. Due to the business focus on trading, as well as the resulting classification as a trading book institution, market risks are of particular importance in the Group’s risk profile. They result from potential fluctuations in relevant valuation parameters and the resulting change in portfolio value. Key valuation parameters are interest rates, exchange rates, share prices and index levels, as well as more complex factors such as implicit volatilities, implicit correlations and dividend expectations. The parameters also include credit spreads, i.e. the yield difference between a risk- free bond and bonds subject to a default risk.

Counterparty risks (credit risks) arise for the Issuer due to potential value losses with respect to loans, securities or derivatives. These can arise due to the default of, or deterioration in the credit rating of a borrower, counterparty or issuer.

Certificates are based on complex mathematical calculation structures which may not be comprehensible to the investor. This means that there is the possibility that the investor may underestimate the actual risk associated with the purchase of Certificates. Potential investors should thus ensure that, prior to any purchase, they fully understand how the respective investment instruments function.

Prior to purchasing the Certificates, potential investors should review whether or not they can bear the risks of loss associated with the Certificates, including that of a total loss of their investment, based on their financial situation.

Furthermore, the Issuer is exposed to operational risks. These are defined by the Basel Committee on Banking Supervision as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.

For the Issuer, the liquidity risk is the risk of not being able to meet its current and future payment obligations in full, or not being able to meet them on time.

In particular, the Issuer has identified future development risks in the continued margin pressure due to increasing competition and in the development of the capital market. The Issuer expects only marginal deviations in credit risk costs as against the previous year.

References to the term 'dividend' in this Base Prospectus, in the Final Terms and within the framework of the following risk factors are each to be understood as a reference to the proportion of the profit distribution of a German or foreign public limited company that is attributable to a share.

1.2. Special Issuer-related risk factors

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

As a result, the investor bears the Issuer’s risk of insolvency. Neither the Deposit Protection Fund of the Association of German Banks (Einlagensicherungsfonds des Bundesverbands deutscher Banken) nor any other deposit protection fund covers securities of this nature. As a result, the Issuer’s credit rating is an important factor for investors making an investment decision.

No segregated pool of assets will be created for the assets acquired by the Issuer using the proceeds from the issue of the Certificates either. The Certificate Holders are only entitled to payment of the redemption amount at maturity, where appropriate taking into account any applicable ratio.

The value of the Certificates is likely to be impacted in part by the investors’ general credit assessment of the Issuer. Any deterioration in the Issuer’s credit rating may result in a loss of value for the Certificates.

The Certificates only constitute obligations of the Issuer. In the event of loss, the Certificate Holder has no right of recourse against the issuer or the company of an underlying or against the issuer of index constituents. If the Issuer of the Certificates and the issuer of the underlying or of the components of the underlying are not identical, the Certificate Holder is subject to the issuer default risk on two levels. Losses can arise if one Issuer is in financial distress.

1.3. Risk of conflicts of interest

Furthermore, the Issuer can hold material interests in individual companies of one or more index constituents, whereby conflicts of interest can arise with respect to the issue of these Certificates.

Moreover, the Issuer can, where appropriate, exercise the function of issuing agent, calculation agent, paying agent, administrative agent in relation to the underlyings. This means that the Issuer may have a direct or indirect impact on any price of the underlying that is relevant for the redemption of the Certificates in accordance with the Certificate Terms and Conditions.

The Issuer can issue further derivative securities, which have the same or similar features as these Certificates. The introduction of such products, which are in competition with these Certificates or their underlyings may impact the value of the underlying and

the value of the index constituents and thus affect the value of the Certificates.

The Issuer can act as an underwriter, as a financial advisor or in a commercial banking capacity in connection with future offers of an index Constituent.

Such activities can present conflicts of interest and may affect the value of the Certificates.

As a rule, the Issuer enters into hedging transactions in order to hedge its own positions from the issue of Certificates ('Hedging Transactions'). A situation in which the hedge purchases or sales of an index constituent by the Issuer have a negative impact on the value of the Certificates for the investor cannot be ruled out in full.

2. Risk factors relating to the Certificates

2.1. Risk factors based on specific features of individual types of certificates

Risk due to unknown repayment profile

The Certificates do not represent any right to a redemption amount due at maturity that has already been fixed at the time of issue. The determining factor for the amount of redemption is a certain price of the underlying on the valuation date or at one or more other times more specifically defined in the Certificate Terms and Conditions.

The redemption amount may be limited by a maximum redemption amount set at the time of issue. If the relevant price of the underlying for the calculation of the redemption amount payable at maturity on the valuation date or at one or more other times more specifically defined in the Certificate Terms and Conditions exceeds a price threshold determined at the time of issue, the investor does not participate in any further increase in value of the underlying. In this case, the maximum return is therefore equal to the difference between the purchase price paid for the relevant Certificate, and the maximum redemption amount.

While the return for investors is capped by the maximum redemption amount, they are nevertheless subject in full to the risk of loss in the event of negative performance by the underlying.The amount of any redemption due from the Issuer at maturity may also be dependent on the occurrence or non-occurrence of certain events or conditions. This means that the issue, for instance, as to whether the price of the respective underlying reaches and/or exceeds or falls below certain price thresholds (e.g. any 'PROTECT level') at certain times or within certain periods (in each case as defined in the Certificate Terms and Conditions), may be relevant. Investors should be aware that the occurrence or non-occurrence of such events may affect the amount of redemption in accordance with the relevant Certificate Terms and Conditions.

Risk of total loss

The performance of a Certificate is not certain at the time of purchase. The acquisition of Certificates does not represent a right to the payment of a specific redemption amount determined at the time of issue or purchase.

The Certificates therefore carry the risk of an unexpected and extensive loss in value. When investing in Certificates, the investor bears this risk of loss, depending on the performance of the underlying on which the respective Certificate is based and, if applicable, on the respective special factors relevant to the option(s) embedded in the Certificate. Any possible profit or loss always depends on the purchase price paid for the Certificate. If the total value of any redemption amount due from the Issuer at maturity is below the purchase price, the investor sustains a loss.

If the price of the underlying is close to zero and the Certificates do not provide for any unconditional minimum redemption amount or under certain other circumstances, the investor may even sustain a total loss of the capital invested, as well as the transaction costs paid.

Key person risk

The successful performance of the index may depend on the expertise of individual persons or other employees of the determination and calculation agent or the advisor who are responsible for selecting the securities to be included in the index. Should one or more of these persons leave the company responsible for the determination and calculation or advisory services, this may have a material adverse effect on the ability of the determination and calculation agent or advisor to compose the index and thus also a material adverse effect on the value of the index.

2.2. Risks relating to particular underlyings Certificates relating to indices

In the case of Certificates based on indices, the level of the redemption amount depends solely on the settlement price of the index. The price of an index depends, in turn, on the individual index constituents which comprise the respective index. During their term, however, the market value of the Certificates can also deviate from the performance of the index or of the index constituents, because, in addition to further factors, the correlations, volatility, interest rate level and, where appropriate, the reinvestment of dividend payments with respect to the index constituents can influence the performance of the Certificates. As a result, investors cannot rely on the fact that the Certificate possesses any value.

The individual components of the index can also incur particular risks due to their specific features.

Information on particular risks resulting from the securities in the index or their structure, can be found in the respective prospectuses for the index constituents. Information on the investment principles for the index can be found, where appropriate, in the index description.

The Issuer assumes no responsibility whatsoever for the information provided to the Certificate Holders on the issuers of the securities contained in the index or other index constituents, with respect to the creditworthiness of the issuers of the securities contained in the index or for the features and the calculation of the price for these securities.

Correlation risks for Certificates relating to an index

In the case of Certificates based on indices, one particular feature is that the performance during the term and the amount of redemption at maturity are based on the performance of several underlyings. This means that the correlation between the index constituents, i.e. to simplify matters, the level of interdependence among the individual components with respect to their performance, has an impact on the value of the Certificate. If, for example, all of the components originate from the same sector and the same country, a high positive correlation can be assumed. Correlation has a value ranging from '-1' to '+1', whereby a correlation of '+1', i.e. a high positive correlation, means that the performance of the components always moves in the same direction. A correlation of '-1', i.e. a high negative correlation, means that the performance of one component is diametrically opposed to the other. A correlation of '0' states that it is not possible to make a statement on the relationship between the components with respect to their performance.

Liquidity and price determination for the index constituents

It is impossible to forecast whether or not, and to what extent a secondary market will develop for the index constituents at any time and at what prices the Issuer will be able to buy or sell the index constituents on this secondary market and whether or not this secondary market will be liquid. Since the Issuer may be the only designated sponsor for the respective index constituent (i.e. the party responsible for quoting bid and ask prices for the sponsored securities on an ongoing basis in order to boost the liquidity for these securities), the secondary market may be limited. In any case, the valuation of the index constituent and, as a result, the price of the constituent in question depends on the price determined by the respective issuer of the index constituent in its capacity as designated sponsor. This applies even if the

Issuer of the Certificates only purchases the index constituents in exchange trading.

2.3. Risk factors that apply to all products Particular risks relating to the Certificate structure

The specific structure of Certificates can intensify or increase the risks associated with the acquisition of Certificates.

In general, the key factors to the development of the Certificate include – where appropriate, in addition to one, several or all underlying(s) reaching, falling below or exceeding the price thresholds' described in more detail in the Certificate Terms and Conditions – in particular, (i) volatility, i.e. the expected price fluctuations in an underlying or, for Certificates without a quanto structure, fluctuations in the exchange rate, (ii) the correlation, and in this respect, particularly the level of interdependence among the index constituents with respect to their performance, (iii) the residual term of the Certificates, (iv) the money or capital market rates as well as – barring any exceptions – (v) expected or actual dividend payments in an underlying index constituent.

Even if the price of an underlying develops favourably for the investor during the term, these or other factors influencing the value can reduce the value of the Certificate.

Uncertain performance of Certificates / market price risk

The performance of the Certificate and the amount of redemption is not certain at the time of Certificate purchase. The investor’s personal return depends to a considerable degree on the purchase price paid for the Certificate. The risk of a loss in value exists even during the term of a Certificate. The value of a Certificate may also fall below the purchase price paid by the investor during the term of a Certificate. If the price of the underlying moves in an unfavourable direction for the investor, the investor should not assume in view of the limited term that the price of the underlying and, as a result, the value of the Certificates will recover by the valuation date.

If the Certificate is sold prior to maturity, the return or potential loss corresponds to the difference between the purchase and sale price of the Certificate. If the Issuer redeems the Certificates, the return or potential loss corresponds to the difference between the value of all redemption amounts and the purchase price paid for the Certificate – less any fees or transaction costs. If the total value of all redemption amounts is less than the purchase price, the investor suffers a loss.

No value loss compensation through other income

Insofar as no explicit provisions are contained in the Certificate Terms and Conditions, a Certificate does not represent the right to interest payments or to other distributions (e.g. dividend payments) and therefore does not generate any periodic income. This means that potential reductions in the value of the Certificate cannot be offset by any other income from the Certificate.

Value-decreasing costs

Any transaction costs invoiced by a custodian bank can have a negative impact on the value of the Certificate.

Risk of early termination

In particular circumstances, the term or residual term of Certificates can be unexpectedly reduced by means of termination for cause by the Issuer. In such cases, the investor bears the risk that his/her expectations of an increase in the value of the Certificate can no longer materialise due to early termination. In this case, the investor should not rely on the fact that the Certificate possesses any value at the point in time at which the termination takes effect. If, in such cases, the value of the Certificates is less than the purchase price paid by the investor, the value of an underlying can no longer develop in line with the investors’ expectations if the Certificate is terminated. Furthermore, it should be noted that, in the event of termination for cause, any termination amount payable to the Certificate Holders is determined by the Issuer at its reasonable discretion.

Payment of any (conditional or unconditional) minimum redemption amount specified in the Final Terms cannot be claimed in the event of termination for cause unless this has been expressly provided for in the Final Terms.

Reinvestment risk in the event that the Certificates are called by the Issuer prior to maturity

In the event that the Issuer calls the Certificates prior to maturity in accordance with the Certificate Terms and Conditions, the investor bears the reinvestment risk.

This means that investors may only be able to reinvest any termination amount paid out by the Issuer in the event of termination in line with market conditions that are less favourable than those that prevailed when they purchased the Certificate.

Delayed redemption following termination by the Issuer

In the event that the Issuer terminates the Certificates, the determination and payment of the redemption amount or termination amount may be delayed for an unlimited period contrary to the investor’s expectations. In this case, the value of the Certificates may develop in a manner that is disadvantageous for the investor in the period between the issue of the termination notice and

the determination and payment of the redemption amount by the Issuer.

No termination by Certificate Holder

A right to termination or exercise of the Certificates by the Certificate Holders is excluded.

Unwinding of hedging arrangements by the Issuer

The Issuer executes Hedging Transactions in the index constituents on an ongoing basis in order to hedge its obligations resulting from the Certificates. The Issuer unwinds these Hedging Transactions on the valuation date, or in the event that the Certificates are terminated. Depending on the number of Certificates held, the prevailing market situation and liquidity in the index constituents, it cannot be excluded that the price of the index and thus also the amount of redemption is impacted.

Market disruption events and adjustment measures

The Issuer shall determine the occurrence or existence of market disruption events in accordance with the Certificate Terms and Conditions; adjustment measures shall also be taken according to the Certificate Terms and Conditions. Market disruption events can impair the value of the Certificates and delay redemption. In the event of adjustment measures concerning the index, it cannot be excluded that the assessments on which an adjustment measure is based subsequently prove to be unfounded, and that the adjustment measure later proves to be disadvantageous for the investor and places the latter in a worse financial position than before the adjustment measure.

Transactions to offset or limit risk

The investor should not rely on being able to execute transactions to offset or limit his/her risks at any time during the term of the Certificates, as this depends largely on market conditions. Transactions designed to offset or limit risks might only be possible at an unfavourable market price that will entail a loss for the investor.

Trading in the Certificates

Under normal market conditions, Certificate Holders can sell their Certificates via the exchange or on an off- exchange basis at any time during their term. Under normal market conditions, it is the Issuer’s intention to regularly quote bid and ask prices for the Certificates. However, the Issuer assumes no legal obligation with respect to the level or quotation of such prices. As a result, investors should not rely on being able to sell the Certificates at a certain time or at a certain price during their term. Due to this special structure the spreads between the buy and sell prices of Certificates will be greater than those that apply to shares.

However, trading in certain Certificates may not be possible or only to a limited extent. This means that, in the event of a loss in the value of an underlying, investors may not be able to sell their Certificates or, if so, only with a delay.

General interest rate risk

An investment in the Certificates may be associated with an interest rate risk due to fluctuations in the interest to be paid on deposits in the currency of the Certificates. Interest rates are dependent on supply and demand on the international money markets, which are influenced by macroeconomic factors and speculation, as well as central bank and government interventions or other political factors.

Borrowing

The risk associated with the purchase of the Certificates increases if investors use borrowed funds to finance the purchase. In this case, the investor must not only bear the loss incurred should the market perform contrary to his/her expectations, but must also service and repay the loan. As a result, investors should never rely on being able to service and repay the loan out of profits made on Certificates. Instead, before purchasing the Certificates and taking out a loan, they should review their financial situation to see whether or not they would still be able to service and even to repay the loan at short notice if they were to sustain a loss instead of making the anticipated profit.

B. SE CURITI ES NOT E

The Securities Note contains a description of the features of the Certificates, which are set out in the Certificate Terms and Conditions in a legally binding manner. In particular, the Certificate Terms and Conditions contain the relevant definitions for the terms used in the Securities Note. With respect to the Certificate right conferred to the Certificate Holders, it should be noted that only the Certificate Terms and Conditions are effective.

1. Object and description

The Certificates of the Issuer to be issued under the Base Prospectus offer investors an opportunity to participate in the performance of a certain underlying without having to purchase this underlying. The underlyings for the Certificates issued under the Base Prospectus may include shares, securities representing shares, indices, precious metals, non-ferrous metals, commodities, futures contracts, fund units, Exchange Traded Funds (ETFs), exchange rates and interest rates, as well as baskets comprising one or more of these underlyings. In the case of Certificates relating to indices, the term 'index constituent' refers to a share or another security of which the respective index is composed. The underlyings are determined in these Final Terms.

The Certificates represent the right of the Certificate Holders to payment of a redemption amount when the Certificates reach maturity. In legal terms, when an investor purchases Certificates, he/she acquires a co-ownership interest in a global bearer certificate held at a central securities depository. According to the Certificate Terms and Conditions, however, individual certificates will not be issued.

For Certificates, the calculation of the level of the redemption amount is generally linked to the price performance of the respective underlying during the term of the Certificates. The performance of the underlying is calculated using one of two calculation methods. European performance calculation involves consideration of the performance of the underlying between an initial reference date and the future valuation date. Asian performance calculation, on the

other hand, forms an average of the performance values of the underlying determined on several regularly recurring valuation dates. In comparison with the European performance calculation method, the price level of the underlying at a certain time (valuation date) is only considered in the calculation of the performance of the underlying on a pro-rata basis in each case.

The redemption amount may be calculated in one of two ways, depending on the features of the Certificates. If the Certificates are issued at par (nominal value), the redemption amount is calculated on

the basis of this nominal amount, taking into account the performance of the underlying and any other relevant features of the Certificates. If the Certificates are no-par value certificates, the redemption amount is calculated on the basis of an initial reference price, the ratio, the performance of the underlying and any other relevant features of the Certificates. In this context, the ratio specifies the number of units of the underlying to which one Certificate refers. The ratio is expressed as a decimal, i.e. a ratio of 0.01 specifies that one Certificate refers to one hundredth of a unit of the underlying. If the ratio is expressed as a fraction, a ratio of 1/10 for example, specifies that one Certificate refers to one tenth of a unit of the underlying.

The term of the Certificates (closed end / open end)

The Certificates can be structured as both certificates with a limited term ('closed end Certificates') and certificates with an unlimited term ('open end Certificates' or 'perpetual Certificates').

Closed end Certificates have a term which is defined in the Certificate Terms and Conditions. The term of a Certificate begins on the date of issue and ends on the redemption date of the Certificates. The redemption amount of the Certificates is payable by the Issuer on the redemption date specified in the Certificate Terms and Conditions.

Open end Certificates have no limited term agreed in advance. The Certificates can, however, be terminated by the Issuer at certain predefined

termination date and declared due for payment. The determination date for the settlement price of the underlying is the same as the termination date or another more specific date set forth in the Certificate Terms and Conditions.

Additional features

The Certificates to be issued under the Base Prospectus may also include one or several of the additional features set out below, which modify the calculation of the redemption amount.

In the case of Certificates with a conditional or unconditional maximum redemption amount, the redemption amount is limited to a certain amount. For such Certificates, the redemption amount cannot exceed the maximum redemption amount specified in further detail in the Certificate Terms and Conditions or the calculation basis (nominal amount or strike price) multiplied by a maximum redemption factor specified in the Terms and Conditions.

In the case of Certificates with a conditional minimum redemption amount, the Certificates are redeemed, at the very least, at an amount corresponding to the minimum redemption amount specified in the Certificate Terms and Conditions or the calculation basis (nominal amount or strike price) multiplied by a minimum redemption factor specified in the Certificate Terms and Conditions provided that a condition specified in the Certificate Terms and Conditions with respect to the performance of the underlying is met.

Such condition may relate to the performance of the underlying during an observation period specified in the Certificate Terms and Conditions, or to the price level on the valuation date as compared with a price threshold set forth in the Certificate Terms and Conditions (a 'PROTECT level'). If the price reaches, falls below or exceeds such a price threshold during the specified period or at a defined point in time, the minimum redemption amount shall not be paid.

2. Interests of involved parties

2.1. Pricing by the Issuer

On both the exchange and off-exchange secondary market, the Issuer sets bid and offer prices for the certificates (known as 'Market Making') depending on the value of the security as calculated in accordance with financial mathematical methods, supply and demand with respect to the certificates, the costs for risk hedging and the assumption of risks, as well as on income considerations. The spread between the bid and offer prices is also influenced by the liquidity of the instruments used to hedge risk, among other things.

Other factors influencing pricing on the secondary market include any margin that may be

included in the issue price (see also section D.5.3 of Base Prospectus or section C.5.3 of the Final Terms), as well as other fees and costs such as management fees, redemption fees, transaction or other costs which, depending on the features of the certificates, are taken into account either for pricing during the term of the Certificates or for the calculation of the settlement amount at the end of the term.

Some factors may not be applied evenly over the term of the certificates for pricing purposes, but may be discounted at an early point in time at the discretion of the market maker. These factors may include, where appropriate, the margin included in the issue price, any management fees levied or income relating to the underlying or the components of the underlying that has either been paid or is expected, which – depending on the features of the certificates – revert to the Issuer.

Expected dividends on the underlying or the components of the underlying can be deducted even before the ex-dividend date of the underlying or the components of the underlying based on the income expected for the entire term or for a certain period of time, whereby the time of deduction may depend, among other things, on the number of certificates redeemed by the market maker in each case. Insofar as dividend estimates used by the market maker for valuation purposes, which may change during the term of the securities, deviate from the dividend expected on the market in general or actually paid, this can also have an impact on pricing on the secondary market.

As a result, the prices quoted by the market maker can deviate from the value of the certificates as calculated in accordance with financial mathematical methods or from the expected price that would have arisen at the respective point in time on a liquid market on which various market makers, each acting independently of each other, quote prices. Furthermore, the market maker can alter the methods that he/she uses in order to determine the prices quoted at his/her own discretion at any time, for example by changing his/her price determination models or applying other price determination models.

2.2. Other conflicts of interest

Conflicts of interest of the Issuer with respect to the underlying

Where appropriate, the Issuer can – particularly to hedge its own positions – participate in transactions with one or more index constituents on a principal or agency basis. Such transactions can have a positive or negative impact on the performance of the respective index and thus also affect the value of the Certificates. Furthermore, the Issuer can hold material interests in individual companies of one or more index constituents, whereby conflicts of interest can arise with respect to the issue of these Certificates.

Moreover, the Issuer can, where appropriate, exercise the function of issuing agent, calculation agent, paying agent, administrative agent in relation to the index constituents. This means that the Issuer may have a direct or indirect influence on a price that is relevant for the redemption of the Certificates in accordance with the Certificate Terms and Conditions.

The Issuer can act as an underwriter, as a financial advisor or in a commercial banking capacity in connection with future offers of an index constituent.

Such activities can present conflicts of interest and may affect the value of the Certificates.

3. Reasons for the offer and use of the proceeds

The Issuer intends to use the net proceeds from the sale of the Certificates in order to finance its general business activities.

4. Information concerning the securities to be offered

4.1. Information concerning the securities

4.1.1. General description of the securities

The WKN and ISIN code for the Certificates are specified in Table A of the Final Terms.

The Certificates are to be created based on the legislation of the Federal Republic of Germany and issued once the responsible bodies of the Issuer have given their consent.

The Certificates are bearer bonds. They are represented for their entire term by a global bearer certificate deposited with Monte Titoli S.p.A., Xxx Xxxxxxxx 0, X-00000 Xxxxx, Xxxxx. As co-ownership interests in the global bearer certificate, the Certificates may be transferred in accordance with the governing rules and regulations of Monte Titoli S.p.A., Milan, Italy.

The price of an underlying is expressed in YEN (the 'currency of the underlying') converted at an exchange rate of 1 unit of the currency of the underlying to EUR 1.00 (quanto structure). The trading currency of the Issue is the euro ('EUR'). The Certificates in question are Quanto Certificates, i.e. certificates with hedging against currency losses. This means that, both during the term with respect to the quoting of bid and ask prices and on redemption or with respect to other payments relating to the Certificates any currency risk arising from the conversion of the underlying, which is denominated in a currency other than EUR is excluded. The price of the underlying is expressed and redeemed in EUR. This means that the currency is no longer converted at the respective applicable exchange rate.

For all payments in relation to the Certificates, one

(1) EUR (trading currency) corresponds to one (1) YEN (currency of the underlying) – where appropriate taking into account the ratio.

The Certificates constitute direct and unsecured obligations of the Issuer, which rank pari passu with each other and all other current and future unsecured and unsubordinated obligations of the Issuer, with the exception of those that have priority due to mandatory statutory provisions. See also section 12 of the Certificate Terms and Conditions (section E of the Base Prospectus or section D of the Final Terms).

4.1.2. Description of the Certificate Holders' rights

The Issuer grants each Certificate Holder the right ('Certificate Right') to redemption of the Certificates in accordance with the Certificate Terms and Conditions.

The Certificates do not vest any right to interest payments or to regular distributions on the Certificates, unless this has been expressly provided for in the Certificate Terms and Conditions.

The Issuer can, in accordance with the Certificate Terms and Conditions, terminate the Certificates for cause by issuing a notice in certain cases described in further detail in the Terms and Conditions.

A detailed description of the rights relating to the Certificates – including any limitations of such rights – is contained in the Certificate Terms and Conditions (in section E of the Base Prospectus or section D of the Final Terms).

4.1.3. Settlement procedure

The settlement procedure for the Certificates is described in section 10 of the Certificate Terms and Conditions.

Details on the conversion of amounts from currencies other than EUR into EUR can be found in the

Certificate Terms and Conditions (see also section

D.4.1.1 of the Base Prospectus and section C.4.1.1 of the Final Terms).

4.1.4. Description of the payment profile

The following section provides examples of the payment profiles of selected Certificates. Further descriptions of payment profiles may be implemented in the respective Final Terms. The figures and redemption amounts used in these sample calculations are of a purely indicative nature and serve only to illustrate how the Certificates work. They provide no guarantee of the actual redemption amounts to be paid.

(a) Certificate without additional features

The initial issue price of a Certificate is the nominal amount of EUR 100.

Redemption scenario 1

The relevant price of the underlying is 75% of the strike price on the valuation date.

The Certificates are redeemed at EUR 75.

Redemption scenario 2

The relevant price of the underlying is 115% of the strike price on the valuation date.

The Certificates are redeemed at EUR 115.

(b) Certificate with maximum redemption amount

The initial issue price of a Certificate with a maximum redemption amount is the nominal amount of EUR 100. The cap is set at 125% of the strike price of the underlying.

If the price of the underlying that is relevant for the calculation of the redemption amount is equal to or higher than the cap on the valuation date, the investor will receive the maximum redemption amount expressed in or converted into euros. If the price of the underlying that is relevant for the calculation of the redemption amount is below the cap on the valuation date, the investor will receive a cash amount corresponding to the reference price of the underlying expressed in EUR or the converted amount for each Certificate.

Redemption scenario 1

The relevant price of the underlying is 75% of the strike price on the valuation date.

The Certificates are redeemed at EUR 75.

Redemption scenario 2

The relevant price of the underlying is 155% of the strike price on the valuation date.

The Certificates are redeemed at EUR 125 (maximum redemption amount).

The initial issue price of a Certificate is the nominal amount of EUR 100. The strike price is EUR 100. The minimum redemption amount is EUR 90.00.

Redemption scenario 1

The relevant price of the underlying is EUR 50 on the valuation date (corresponds to 50% of the strike price). The Certificates are redeemed at EUR 90 (minimum redemption amount).

Redemption scenario 2

The relevant price of the underlying is EUR 150 on the valuation date (corresponds to 150% of the strike price). The Certificates are redeemed at EUR 150.

(d) Certificate with an unconditional minimum redemption amount and participation rate

The initial issue price of a Certificate is the nominal amount of EUR 100. The strike price is EUR 100. The minimum redemption amount stands at 90% and the upside participation rate stands at 200%.

Redemption scenario 1

The relevant price of the underlying is 50% of the strike price on the valuation date.

The Certificates are redeemed at EUR 90 (minimum redemption amount).

Redemption scenario 2

The relevant price of the underlying is 120% of the strike price on the valuation date.

The Certificates are redeemed at EUR 140 (200% (upside) participation in the positive performance of the underlying: nominal amount * (100% + participation rate * (settlement price/strike price – 100%)) or, in figures, EUR 100.00 * (100% + 200% * (120 / 100 -

100%))).

(e) Certificate with a conditional minimum redemption amount

A Certificate has two different redemption options. If the relevant price (or, where applicable in accordance with the Certificate Terms and Conditions, an intraday price) of the underlying neither reaches nor falls below a price threshold given in Table A of the Terms and Conditions (e.g. a 'PROTECT level') at any time within a period specified in the Terms and Conditions, the condition for the minimum redemption amount has occurred and the Certificates will be redeemed in accordance with redemption option A. Insofar, however, as the relevant price of the underlying reaches or falls below the relevant price threshold at any time within a period specified in the Certificate Terms and Conditions, the condition for the minimum redemption

amount has not occurred and the Certificates will be redeemed in accordance with redemption option B.

The initial issue price of the Certificate is the nominal amount of EUR 100. The strike price is EUR 100. The conditional minimum redemption amount is 125% of the strike price.

Redemption option A:

The condition for the minimum redemption amount has occurred, i.e. the relevant price of the underlying has not reached or fallen below the price threshold at any time during a period specified in the Certificate Terms and Conditions.

Redemption scenario 1

The relevant price of the underlying is 95% of the strike price on the valuation date.

The Certificates are redeemed at EUR 125 (minimum redemption amount).

Redemption scenario 2

The relevant price of the underlying is 130% of the strike price on the valuation date.

The Certificates are redeemed at EUR 130.

Redemption option B:

The condition for the minimum redemption amount has not occurred, i.e. the relevant price of the underlying has reached or fallen below the price threshold at any time during a period specified in the Certificate Terms and Conditions.

Redemption scenario 1

The relevant price of the underlying is 70% of the strike price on the valuation date.

The Certificates are redeemed at EUR 70.

Redemption scenario 2

The relevant price of the underlying is 130% of the strike price on the valuation date.

The Certificates are redeemed at EUR 130.

4.2. Information about the underlying

4.2.1. Description of the underlying

The underlying is defined in section 6 of the Certificate Terms and Conditions

The price of the respective underlying that is relevant for redemption is defined in the Certificate Terms and Conditions.

Further information on the underlying can be found in Table B of the Final Terms.

Further information on the past and future performance of the underlying and the historical volatility can be obtained on the Website specified in

Table B for the respective underlying or by telephone from the Issuer by calling +49 (0) 69 7134 - 22 33.

4.2.2. Market disruption event and adjustments

The definition of a market disruption event, which impacts on an underlying, as well as adjustment rules, namely the consequences of a market disruption event ,

i.e. the possible postponement of the valuation date, the suspension of the determination of the relevant price of an underlying as well as the determination of the relevant price using a substitute price can be found in section 8 of the Certificate Terms and Conditions.

The rules for adjustments affecting the underlying are set out in section 7 of the Certificate Terms and Conditions.

5. Terms of the offer

5.1. Issue Volume

The number of Certificates per Issue is specified in section C of the Final Terms (Table A).

5.2. Certificates offering

The start of the offering period for the Certificates and, where appropriate, the Subscription Period are specified in Table A of the Final Terms. The Issuer retains the right to close the subscription period early. It is not obliged to accept subscription orders. Partial allocations are possible (in particular in the event of over- subscription).

As a general rule, the Certificates can be purchased until the valuation date (on the exchange and on an off-exchange basis). The valuation date is specified in Table A of the Final Terms, see section E of the Base Prospectus.

5.3. Initial issue price

The initial issue price comprises several components. These components are the value of the certificate as calculated in accordance with financial mathematical methods, the margin and any other fees or management fees. Where appropriate, it may also include a sales charge ('Front-end Load').

The value of a certificate is calculated on the basis of the pricing model used by the Issuer in each case, and depends not only on the value of the underlying, but also on other variable parameters. The other variable parameters can include, among other things, derivative components, expected income from the underlying (for example, dividends), interest rates, the volatility of the underlying and the supply and demand for hedging instruments. The pricing models

are selected by the Issuer at its own discretion and may vary from the pricing models applied by other issuers for the calculation of comparable securities.

When calculating its margin, the Issuer takes into account not only income considerations but, among other things, also the costs for risk hedging and the assumption of risks, the structuring and marketing of the certificates and, where appropriate, licence fees. The margin can also include costs and commission paid to third parties in relation to services for the placement of the securities. The margin is set by the Issuer at its own discretion and may vary from the margins received by other issuers for comparable securities.

Any other fees or management fees charged may be used not only to cover the Issuer’s own costs, but also to cover expenses incurred by the Issuer for third- party services. Furthermore, income considerations also play a role here.

5.4. Paying Agents and Depository Agents, Calculation Agent, cooperation partners

The paying agent in this case is Xxx. Xxxxxxxxx xx. & Cie. KGaA, Xxxxx Xxxxxxxxxxxxx 0, 00000 Xxxxxxx, Xxxxxxx.

The depository agent in this case is Monte Titoli S.p.A., Xxx Xxxxxxxx 0, X-00000 Xxxxx, Xxxxx.

The calculation agent is Xxx. Xxxxxxxxx xx. & Cie. KGaA, Xxxxx Xxxxxxxxxxxxx 0, 00000 Xxxxxxx, Xxxxxxx.

No cooperation partner has been assigned.

6. Exchange trading in the Certificates

The Issuer will apply to have the Certificates included in the regulated market of Borsa Italiana S.p.A. on the segment SeDeXTM. Further listing information is included above in Table A of the Final Terms.

7. Additional information

7.1. External advisors

External advisors were not assigned.

7.2. Publications

Notices relating to the Certificates will be published, in the cases set out in the Certificate Terms and Conditions, in accordance with section 11 of the Terms and Conditions 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. Nevertheless, these notices serve informational purposes only and do not provide any condition for validity, unless otherwise provided for in the Certificate Terms and Conditions.

C. T A BL ES AND CE RTI F I C AT E TER M S AND CONDITIONS

1. TABLES

Table A: Information relating to the Certificates

Start of the Subscription Period: 9.08.2007

Subscription Period: 9.08.2007 – 13.09.2007, 3 p.m. (early termination reserved)

Value Date: 19.09.2007

Listing: The Issuer will apply for inclusion of the Certificates in the SeDeX Market, organised and managed by Borsa Italiana S.p.A.

Initial Reference Date: 14.09.2007

Trading Currency: EUR

ISIN

Underlying Index

Type of Certificate Quanto

Nominal Amount

Price Threshold (n)

Unconditional Maximum Redemption Amount

Minimum Redemption Factor / Conditional Minimum Redemption

Amount

Initial Reference Date /

Valuation Dates (t) / Redemption Date

Price Threshold (k)

Distribution

Start of the Term / Term / Observation Period

Initial Selling Price in the Trading Currency

EUR

Issue Volume in no. of Certificates

DE 000 SAL 5BW 4

NIKKEI

Yes

EUR

11,289.19

EUR 100.00

1 /

14.09.2007 /

12,901.94

EUR 8.50

17.09.2007 /

EUR

150,000

225®

100.00

EUR 100.00

(0) 00.00.0000

EUR 8.50

4.11.2010 /

100.00

(0) 00.00.0000

EUR 8.50

17.09.2007 –

(0) 00.00.0000 /

29.10.2010

04.11.2010

Table B: Information relating to the Underlying

Underlying (Index / ISIN)

Currency of the Underlying

Relevant Futures Exchange /

Determination Agent

Reference Price

Website

NIKKEI 225® / (XC 000 000 000 0)

YEN

Osaka Securities Exchange /

Nihon Keizai Shimbun Inc.

Closing Level of the Index

xxxx://xxx.xxx.xxxxxx.xx.xx

2. CE RT IFICAT E TE RM S AND CONDITIONS

PROTECT Cash Collect CERTIFICA T ES re lating to indices (Quant o)

Section 1 Form and Number of Certificates, Collective Safe Custody, Transferability

(1) Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Cologne, (the 'Issuer') is issuing the PROTECT Cash Collect Certificates specified in Table A with their respective ISIN and WKN codes based on the Underlying (section 6 (1)) described in further detail in Table B (the 'Certificates').

(2) The Certificates are represented for their entire Term by a global bearer certificate deposited with Monte Titoli S.p.A., Xxx Xxxxxxxx 0, X-00000 Xxxxx, Xxxxx (the 'Depository Agent'). Certificate Holders shall have no rights as regards the production and delivery of definitive securities. The owners of the Certificates (the 'Certificate Holders') shall have a co-ownership interest in the global bearer certificate which may be transferred, after initial acquisition, in accordance with the governing rules and regulations of the Depository Agent Monte Titoli S.p.A., Milan, Italy.

Certificates will be accepted for clearing through one or more clearing systems as specified in the relevant Final Terms. These systems include systems operated by Clearstream Banking AG, Neue Xxxxxxxxxxxxx 0, X-00000 Xxxxxxxxx / Xxxx, Xxxxxxx, as well as systems operated by Monte Titoli S.p.A., Xxx Xxxxxxxx 0, X-00000 Xxxxx, Xxxxx. Clearing systems operated by Monte Titoli S.p.A. will be operated in

accordance with the regime of centralized custody and circulation of dematerialized securities, as provided by Legislative Decree no. 58 of 24 February 1998,

Legislative Decree no. 213 of 24 June, 1998 and CONSOB Resolution no. 11768 of 23 December 1998. According to such regime, the Certificates are transferred through accounts opened with Monte Titoli

S.p.A. by intermediaries qualified to participate in the Monte Titoli S.p.A. system.

(3) For clearing purposes, the Certificates may be transferred in units of one certificates or an integral multiple thereof.

(4) The Trading Currency of the Issue is the euro ('EUR').

Section 2 Certificate Right, Redemption Amount

(1) The Issuer grants each Certificate Holder the right ('Certificate Right') to redemption of the Certificates in accordance with these Certificate Terms and Conditions. Tables A and B above form part of these Certificate Terms and Conditions.

(2) The Term of the Certificates shall end, and the Certificates shall be redeemed on the Redemption Date, subject to termination by the Issuer pursuant to section 16. The Certificate Right will be deemed to be automatically exercised on the Redemption Date without the requirements of an Exercise Notice or the performance of other qualifications.

(3) The Certificates grant the right to payment of the Redemption Amount in accordance with the provisions of paragraph (4) to (10).

(4) The 'Redemption Amount' per Certificate is, subject to a conditional Minimum Redemption Amount in accordance with paragraph (5) and an unconditional Maximum Redemption Amount in accordance with paragraph (6), the Nominal Amount per Certificate (paragraph 8), multiplied by the Performance of the Underlying on the Valuation Date.

The 'Performance of the Underlying' is the Settlement Price (paragraph 9) divided by the Strike Price (paragraph 7).

The Redemption Amount is calculated on the basis of the following formula:

Nominal Amount * (Settlement Price/Strike Price).

(5 ) If the Price (section 6 (2) of the Underlying (section 6 (1)) at no time during the Observation Period specified in Table A reaches or falls below the Price Threshold (n) specified in Table A, the Redemption Amount per Certificate corresponds, at the very least, to the Nominal Amount (paragraph 8) per Certificate (the 'Minimum Redemption Amount').

The 'Price Thresholds (n)' are the Price Thresholds (n) specified in Table A.

(6)The 'Maximum Redemption Amount' is the Maximum Redemption Amount specified in Table A.

(7) The 'Strike Price' of an Underlying is the Reference Price of the Underlying (section 6 (2)) on the Initial Reference Date (section 5 (1)).

(8) The 'Nominal Amount' per Certificate is the nominal amount per Certificate specified in Table A.

(9) The 'Settlement Price' of an Underlying is the Reference Price of the Underlying (section 6 (2)) on the last Valuation Date (section 5 (2)).

(10) The certificates (quanto certificates specified in Table A) have a currency hedging feature ('Quanto Certificates'). The Underlying is expressed and redeemed in the Trading Currency and is converted from the Currency of the Underlying into the Trading Currency; one index point is equal to EUR 1.00.

(11) If the Price of the Underlying (section 6 (1)) reaches or exceeds the Price Threshold (k) specified in Table A on any of the Valuation Dates (t) specified in Table A, the investor receives a Distribution in the amount specified in Table A. The Distribution is payable, in each case, on the 5th Banking Day following the relevant Valuation Date (t). If this day is not a Banking Day, the Distribution will be paid on the first succeeding Banking Day.

Section 3 Interest, dividend payments

Subject to section 2 (11), there will be no interest, dividends or other (regular) distributions paid on the Certificates.

Section 4 Early Redemption

No provision is made for Early Redemption of the Certificates − subject to redemption due to termination in accordance with section 7.

Section 5 Initial Reference Date; Valuation Date;

Redemption Date; Term; Banking Day

(1) The 'Initial Reference Date' corresponds to the Initial Reference Date specified in Table A.

(2) The 'Valuation Date (t)' is the Valuation Date (t) specified in Table A.

(3) 'Redemption Date' is, subject to early termination in accordance with section 16, the Redemption Date specified in Table A. In the event of termination in accordance with section 16, the Redemption Date is the 5th Banking Day following the Valuation Date. The Certificates have the Term specified in Table A. The Term of the Certificates shall end, and the Certificates shall be redeemed on the Redemption Date, subject to termination in accordance with section 16.

(4) 'Banking Day' means – subject to the following rule – any day on which the banks in Frankfurt/Main and Milan are open for business. With respect to the payments made in accordance with section 11, a 'Banking Day' is any day (except Saturday or Sunday) on which the TARGET system (Trans-European Automated Real-time Gross Settlement Express Transfer payment system) and the Depository Agent settle payments.

Section 6 Underlying

(1) The 'Underlying' is the Index specified as the underlying in Tables A and B.

(2) The 'Reference Price' of the Underlying is the reference price of the Index specified in Table B, as calculated and published on Calculation Dates by the Determination Agent specified in Table B

(the 'Determination Agent'). The 'Price' of the Underlying corresponds to the prices continually calculated and published for the Index by the Determination Agent on Calculation Dates. 'Calculation Dates' are days on which the Index is usually calculated and published by the Determination Agent. 'Hours of Calculation' means the period within a Calculation Date during which the Underlying is calculated by the Determination Agent.

Section 7 New Determination Agent, Successor Index, Adjustments, Termination of the Certificates by the Issuer

(1) If the Index is no longer calculated and published by the Determination Agent, but instead by another person, company or institution which the Issuer, at its reasonable discretion (section 315 BGB), deems appropriate (the 'New Determination Agent'), the Redemption Amount shall be calculated on the basis of the Reference Price as calculated and published by the New Determination Agent. Moreover, under these circumstances, all references to the Determination Agent contained in these Certificate Terms and Conditions shall, insofar as the context allows, apply to the New Determination Agent.

(2) Any changes in the calculation of the Index (including adjustments) or to the composition or the weighting of the prices or securities which form the basis for the calculation of the Index, shall not lead to an adjustment of the Certificate Right, unless the Issuer, upon exercise of its reasonable discretion (section 315 BGB), determines that the new underlying concept and the calculation of the Index following the change (including any adjustment) is no longer comparable to the underlying concept or calculation of the Index applicable prior to such change. This applies especially if, due to any change, the index value changes considerably, although the prices and weightings of the securities included in the Index remain unchanged. An adjustment to the Certificate Right may also be made as a result of the cancellation of the Index or its substitution by another index. The Issuer makes adjustments to the Certificate Right at its reasonable discretion (section 315 BGB) with consideration for the remaining Term of the Certificates and the most recently determined price, in order to maintain the economic value of the Certificates, and, with consideration for the time of the change, determines the day on which the adjusted Certificate Right will be applied for the first time. The adjusted Certificate Right and

the initial date of its application shall be published without delay in accordance with section 11.

(3) If the Index is cancelled at any time or replaced by another index, the Issuer shall determine, at its reasonable discretion (section 315 BGB), making any appropriate adjustments to the Certificate Right in accordance with paragraph (2) where appropriate, the index on which the Certificate Right is to be based in the future (the 'Successor Index'). Notice of the Successor Index and its initial date of application shall be given without delay, in accordance with section 11. All references to the Index contained in these Certificate Terms and Conditions shall then, insofar as the context allows, apply to the Successor Index.

(4) If, at the reasonable discretion (section 315 BGB) of the Issuer, an adjustment to the Certificate Right or the determination of a Successor Index is not possible for any reason, the Issuer, or an expert commissioned by the Issuer, will arrange for the continued calculation and publication of the Index on the basis of the existing index concept and most recently determined index value, subject to termination of the Certificates in accordance with paragraph (6). Any such continuation is to be announced without delay in accordance with section 11.

(5)If, at the reasonable discretion (section 315 BGB) of the Issuer, it is not, for whatever reason, possible to adjust the Certificate Right or determine a Successor Index, the Issuer is entitled to terminate the Certificates early by issuing notice in accordance with section 11 specifying the Termination Amount defined below.

Termination must take place within one month of the occurrence of the event which, in accordance with these provisions, gave rise to the need to adjust the Certificate Right or to determine a Successor Index. In the event of termination, the Issuer shall pay to each Certificate Holder a sum with respect to each Certificate held by latter (the 'Termination Amount') which shall be determined by the Issuer, at its reasonable discretion according to section 315 BGB –where appropriate consulting an expert –, as the fair market price immediately prior to the event which, in accordance with these provisions, gave rise to the need to adjust the Certificate Right or determine a Successor Index, taking into account the remaining time value.

(6) The Issuer will arrange for the transfer of the Termination Amount to the Depository Agent, so that it can be credited to the accounts of the Certificate Holders who deposited their Certificates with the Depository Agent, by the 5th

Banking Day after notice of the termination has been issued.

(7) All adjustments and determinations pursuant to the paragraphs set out above will be made by the Issuer and are binding for all parties, except in the case of manifest error. The Issuer is only liable for adjustments and determinations it makes or fails to make, or for other measures it takes or fails to take in connection with these Certificates if, and to the extent that it has breached the diligence 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 11.

Section 8 Market Disruption

(1) If, in the opinion of the Issuer, a Market Disruption Event (section 8 (2)) prevails at the usual determination time of the Reference Price of the Index or assets underlying the Index or 30 minutes beforehand on the Valuation Date, the Valuation Date shall then be postponed to the next succeeding Calculation Date on which no Market Disruption Event prevails. In accordance with section 11, the Issuer shall endeavour to immediately notify the parties that a Market Disruption Event has occurred. It is, however, under no obligation to issue a notification. In the event that the Valuation Date has been postponed by 10 successive Calculation Dates due to the provisions of this paragraph and the Market Disruption Event persists on the day in question, this day shall be taken as the Valuation Date, and the Issuer shall determine the Reference Price at its own reasonable discretion (section 315 BGB)

– where appropriate consulting an expert – giving due consideration to market conditions prevailing on the Valuation Date. In cases as described in the preceding sentence, the Issuer is also entitled to terminate the Certificates in accordance with section 7.

(2) 'Market Disruption Event' means

(a) the suspension or limitation of trading on one or more exchanges or one or more markets on which one or more assets underlying the Index are listed or traded, in general,

(b) the suspension or limitation of trading (including the securities lending market

(i) in one or more assets underlying the Index on the exchanges or markets on which these assets are listed or traded, or

(ii) in a futures or options contract relating to the Index on a futures exchange on which futures or options contracts relating to the Index are traded (the 'Futures Exchange'),

(d) events other than those outlined above with economic effects similar to those outlined above,

provided that this suspension, limitation, non- calculation or other event is deemed to be material by the Issuer. A limitation on the hours or number of days of trading shall not constitute a Market Disruption Event if it results from a previously announced change made by the relevant exchange.

(3) If the Issuer deems that a Market Disruption Event, within the meaning of paragraph (2), has occurred during the Observation Period, it shall suspend the determination of whether the Price of the Underlying is at or below the Price Threshold (n) for the term of the disruption. The Issuer is entitled, but not obliged to use a substitute price for the Underlying set at its reasonable discretion in order to determine whether the Price of the Underlying is at or below the Price Threshold (n).

(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 paragraph (1), the end of the Observation Period shall be postponed accordingly.

Section 9 Termination by the Certificate Holder

A right to termination of the Certificates by the Certificate Holders is excluded.

The Certificate Holders are entitled to waive the automatic exercise of the Certificates as set out in Section 2 (2) of these Terms and Conditions pursuant to Article

2.2.20 b) 2. of the 'Rules of The Markets Organised and Managed by Borsa Italiana S.p.A.'. The Certificate Holders shall have the right to notify the Paying Agent by fax of their intention to waive the exercise, using the form attached as 'Appendix A' to these Terms and Conditions. The Certificate Holder shall send such form (i) for Certificates on an Underlying consisting of Italian shares traded on regulated markets organised and managed by Borsa Italiana S.p.A. or of indexes managed by Borsa Italiana S.p.A.(the 'Italian Underlying'), by 10.00 a.m. (Milan time) on the Valuation Date (ii) for Certificates on

an underlying other than an Italian Underlying, by 3.00

p.m. (Milan time) on the Banking Day in Frankfurt/Main and Milan following the Valuation Date or, in case of Market Disruptions, on the Bank Day in Frankfurt/Main and Milan immediately following the Market Disruption.

The declaration of a waiver of exercise by a Certificate Holder will be irrevocable. In such case the Certificates will not be redeemed.

Section 10 Redemption

(1) The Issuer undertakes to provide for the necessary means for redemption on the Redemption Date (the 'Redemption Date') with the Depository Agent, which will forward these to the respective custodian banks so that the appropriate amount can be credited to the Certificate Holders. The Redemption Amounts are calculated by the Issuer and are final and binding for all parties (except in the case of manifest error). The amounts to be paid to the Certificate Holder will be with 0.05, etc being rounded upward.

(2)The Issuer is released from all of its payment or delivery obligations under these Certificates upon providing the appropriate means to the Depository Agent.

(3) The settlement of the Certificates is subject to all laws, regulations, administrative provisions and procedures in effect on the Redemption Date. The Issuer is not liable for the event that, in spite of reasonable efforts, it is not in a position, due to these rules and procedures, to fulfil the obligations in accordance with the paragraphs above, nor for actions or omissions by settlement agents from or in connection with fulfilment of the obligations under these Certificates.

(4) Any taxes, fees or other charges that accrue in connection with redemption of the Certificates shall be borne by the Certificate Holder. The Issuer may withhold any taxes or charges payable by the Certificate Holder pursuant to the preceding sentence from the amounts payable.

Section 11 Notices

All notices relating to the Certificates shall be published, insofar as this is required by law or on the basis of exchange rules, 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 and / or in the electronic Federal Gazette of the Federal Republic of

Germany. In all other cases, the notice can be made on the Issuer’s website. All announcements relating to the Certificates shall be deemed effectively given by sending the relative announcement to Borsa Italiana S.p.A. (Italian Stock Exchange). Unless otherwise provided for in the Certificate Terms and Conditions, these notices serve informational purposes only and do not constitute any condition for validity.

Section 12 Status

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

Section 13 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 Certificate Holders by consolidating all Certificates into a single Issue, thus increasing their number. In the case of such an increase, the term 'Certificate' shall also refer to the additionally issued certificates.

(2) The Issuer is entitled, but not obliged, at any time during the Term of the Certificates to repurchase Certificates at any price. The Issuer is under no obligation to inform the Certificate Holders of such repurchases. The repurchased Certificates may be cancelled, held, sold on, or used in another way by the Issuer.

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

Section 14 Selling restrictions

The distribution of the Base Prospectus and/or the Final Terms including the Certificate 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 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.

Such selling restrictions 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 time be offered or sold within the United States or to, for the account of, or for the benefit of US Persons. 'United States' means the United States of America, its territories or possessions, states, the district of Columbia and any other enclave of the government of the United States, its authorities or agents. 'US Person' means (1) any natural person resident in the United States; (2) a partnership, corporation or other legal entity headquartered in the United States; (3) any estate or trust subject to United States federal income taxation; (4) any entity organised principally for passive investment, 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 principals 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 in Regulation S under the Securities Act.

Section 15 Replacement of the Issuer

A replacement of the Issuer will not take place.

Section 16 Termination without cause, Termination for cause in special cases

(1) Without prejudice to the right of termination of the Certificates in accordance with section 7, the Issuer is entitled, but not obliged, to terminate the Certificates for cause at any time, if (a) fulfilling its obligations under the Certificates is or has become illegal or impractical in whole or in part for any reason, or (b) it is or has become illegal or impractical for the Issuer to maintain its hedging arrangements with respect to the Certificates for any reason, particularly if those financial instruments which the Issuer uses for hedging purposes expire, are terminated or cease to apply for any other reason, or (c) in the opinion of the Issuer, there is a detrimental change to the overall tax framework applicable to the Certificates or to the Issuer’s tax position following the issue of the Certificates, and consequently the Certificate Holders or the Issuer itself are faced with a tax burden or the threat thereof, which did not exist at

the time the Certificates were issued, or was not foreseeable. In the event of the latter, the Issuer may exercise such a call right in particular, but not exclusively, if an order is issued or otherwise promulgated by the tax authorities, which results in a detrimental change to the Issuer’s position. Any such termination will be accompanied by a notice in accordance with section 11 and is irrevocable. The termination will become effective as of the time specified in the notice pursuant to section 11.

(2) In the event of termination for cause pursuant to the preceding paragraph (1), the Issuer shall pay to each Certificate Holder in derogation of section 2 (4) a sum with respect to each Certificate held by the latter (the 'Termination Amount'), which shall be determined by the Issuer at its reasonable discretion according to section 315 BGB – where appropriate consulting an independent expert –, as the fair market price for a Certificate immediately prior to the event giving rise to a right to termination for cause taking into account the remaining time value.

(3) The Issuer shall arrange for the transfer of the Termination Amount to the Depository Agent, so that it may in turn be credited to the accounts of the Certificate Holders who deposited their Certificates with the Depository Agent, by the 5th Banking Day after notice of the termination for cause has been issued.

Section 17 Final provisions

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

(2) The place of performance shall be Frankfurt/Main.

(3) With regard to merchants (Kaufleute), legal entities under public law, separate estates under public law and persons not subject to the general jurisdiction of the courts of the Federal Republic of Germany, Frankfurt / Main will be the place of jurisdiction for the settlement of all disputes under or in connection with the Certificates. 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 Certificate Holders, (i) correct obvious clerical or computational or other manifest errors in these

Certificate Terms and Conditions, as well as (ii) modify or supplement any conflicting or incomplete provisions, provided that in the cases referred to under (ii), only such amendments shall be permissible which, with due consideration given to the interests of the Issuer, do not place an unreasonable burden on the Certificate Holders,

i.e. those which do not have a material adverse effect on their financial situation. The Issuer will inform the Certificate Holders of such modifications and supplements immediately in accordance with section 11 of these Certificate Terms and Conditions.

(5) If any provision of these Certificate 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 loopholes closed by a provision consistent with the purpose of these Certificate Terms and Conditions and the commercial interests of the parties. The same shall apply to any gaps or omissions that cannot be resolved in accordance with (4).

APPENDIX A

To the Terms and Conditions of the PROTECT Cash Collect Index Certificates on indices

WAIVER OF THE RIGHT TO EXERCISE

To be completed by the Certificate Holder To: Sal. Xxxxxxxxx xx. & Cie. KGaA

To the attention of Trading & Derivatives - Documentation Fax no.: x00 (0)00 0000 0000 Tel. no.: x00 (0)00 0000 0

Object: PROTECT Cash Collect Index CERTIFICATES

The Certificate Holder

□

Name and surname or companies name of the Certificate Holder

□

Street and no.

□

Town, province

□

Telephone

□

Hereby irrevocably waives the right to the exercise of the Certificates of which it is the Certificate Holder in accordance with the rules set out in the Terms and Conditions of the PROTECT Cash Collect Index Certificates on Nikkei 225®.

Series of the Certificates:

□

ISIN Code:

□

Number of Certificates:

□

Place, Date

□

Signature of the Certificate Holder

□

D. TAXATION

The following tax-related information provides a summary of taxation policy in the European Union, as well as in the Federal Republic of Germany and Italy based on current known legislation. It cannot be ruled out that the tax treatment will change over the course of time due to changes in legislation, court decisions or decrees issued by the tax authorities. The Issuer is not obligated to inform investors of such changes.

Furthermore, the Issuer reserves the right to supplement, amend or replace this tax information with respect to individual Certificates to be issued under this Base Prospectus within the framework of the Final Terms.

The information refers to the payments on Certificates issued under the Base prospectus dated 3 August 2007 as amended by the supplement dated 25 September 2007 which are the object of the Final Terms. The information is not exhaustive and, in particular, does not deal with all of the tax-related consequences for the respective investors in the Federal Republic of Germany and Italy

Transactions with respect to the Certificates may

– depending on the law currently in force and as applied in the country in which the securities were purchased, transferred, exercised or terminated – incur a liability to pay stamp duty, stamp duty reserve tax, income tax, corporation tax, trade tax, withholding tax, solidarity surcharge or other charges.

1. EU Savings Directive

On 3 June 2003, the European Council adopted the final text of the directive on the taxation of savings income in the form of interest payments (EU Savings Directive). Under this Directive, all EU member states must subject the respective resident paying agents, within the meaning of the EU Savings Directive, to the requirement to provide the responsible authorities of the respective EU member state with details with respect to interest payments made to an natural person resident in another EU member state as the beneficial owner of the interest. The responsible authorities of the respective EU member state in which the paying agent, within the meaning of the Savings Directive, is located, is obliged to report this information to the responsible authorities

of the EU member state in which the beneficial owner of the interest is resident.

Austria, Belgium and Luxembourg have opted to xxxx withholding tax on interest payments within the meaning of the EU Savings Directive, as opposed to exchanging the information, during a transitional period. As such, for the first three years from the date on which the EU Savings Directive is applied for the first time, these states will xxxx withholding tax at a rate of 15%, increasing to 20% for the following three years and to 35% from the seventh year onwards. Similar regulations also apply in Switzerland and Liechtenstein, among others. The EU Savings Directive has been in force since 1 July 2005.

2. Taxation in the Federal Republic of Germany

The following is a general discussion of certain German tax consequences of the acquisition and ownership of the Certificates. It does not purport to be a comprehensive description of all tax considerations that may be relevant to a decision to purchase the Certificates offered. The information is based on the tax law in Germany applicable at the date of approval of this Base Prospectus, which is subject to change. The information relates solely to the relevant regulations governing the taxation of income from capital assets (section 20 (1) no. 7 and section 20 (2) no. 4 of the German Income Tax Act (Einkommensteuergesetz - EStG)) and from private sales transactions (section 23

(1) no. 2 and 4 EStG) for private investors. It does not examine all aspects of the taxation of such income. This information does not look at the individual tax circumstances of individual investors. It is imperative that a tax advisor be consulted in individual cases.

Since there are currently no supreme court rulings or explicit ordinances by the tax authorities on innovative investment instruments – such as the Certificates outlined here – it cannot be ruled out that the tax authorities will deem different tax implications to be appropriate.

Taxation of Certificates held as private assets in the Federal Republic of Germany

In accordance with section 20 (1) no. 7 EStG, all types of income from other financial claims (Erträge aus sonstigen Kapitalforderungen) are classed as income from capital assets (Einkünfte aus Kapitalvermögen) if the repayment of the capital or compensation for the right to use the capital has been agreed or granted. The formulation 'or has been granted' is designed to cover cases in which the repayment of the capital provided or the payment of compensation is guaranteed due to the structure of the investment, without the need for an express or implied agreement.

No compensation or capital repayment within the meaning of the last sentence is granted under these Certificates. Unfavourable circumstances can lead to substantial losses. In accordance with the Certificate Terms and Conditions, a total loss of the capital invested is possible. As a result, the regulations governing savings taxation are unlikely to apply here, as the instrument only allows for the generation of uncertain price differences.

According to a circular by the German Federal Ministry of Finance dated 27 November 2001 (IVC 3 – Pg. 2256 / 265/1), too, the Certificates are generally to be regarded as 'speculative securities'. From the Issuer’s point of view, other regulations can only apply if the repayment of the capital provided or the payment of compensation is guaranteed due to the structure of the respective Certificate. If such a guarantee exists, it cannot be ruled out that any gains from disposal will be subject to income tax as income from capital assets in accordance with section 20 (2) no. 4 EStG (financial innovations).

In such cases, any gains from disposal or exercise amounting to the difference between the proceeds from the disposal or exercise and the issue or purchase price are subject to personal income tax for private investors, as well as the solidarity charge on the income tax assessed, even outside of the one-year speculation period.

In case of sale or exercise, the sales charge ('Front-end Load') paid at the time of issue can be offset against the gains from disposal or exercise that are subject to taxation in accordance with section 20 (2)

no. 4 sentence 2 of the EStG, thus reducing the tax liability. Losses stemming from the disposal or exercise of Certificates with (partial) capital protection can, within the framework of the statutory provisions, be offset, as negative income from capital assets, against positive capital income or (where such income does not exist) against positive income from other types of income. In particular, investors should note the provisions on limiting the loss carryback or with respect to the minimum taxation for loss carryforwards.

From the Issuer’s point of view, the taxation of income from capital assets (section 20 (1) no. 7 and section 20 (2) no. 4 EStG) does not apply if a partial or total loss of the capital invested is possible. In such cases, taxation may be based on section 23 (1) no. 2 and no. 4 EStG (private sales transactions). In accordance with section 23 (1) no. 2 EStG, the sale of a Certificate within one year of purchase is subject to taxation. In accordance with section 23 (1) no. 4 EStG, forward transactions, by means of which the individual that is liable to tax receives differential compensation or a cash amount determined by the value of a variable reference asset, are also subject to taxation insofar as the period between purchase and termination of the right does not exceed one year. As a result, section 23 (1) no. 4 EStG should apply to the Certificates, provided that the period of time between purchase and expiry of the right does not exceed one year.

The maximum income tax rate currently stands at 45%; on a taxable income of up to EUR 250,000, or EUR 500,000 in the case of a joint assessment of a married couple in the calendar year concerned, the maximum tax rate is 42%. In addition, a solidarity surcharge of 5.5% is levied on the income tax liability in question.

Losses stemming from the disposal or exercise of Certificates can, within the framework of the statutory provisions, be offset, as negative other income, against positive other income or (where such income does not exist) against positive income from other types of income. In particular, investors should note the provisions on limiting the loss carryback or with respect to the minimum taxation for loss carryforwards.

Taxation on Certificates held as business assets in the Federal Republic of Germany

If the Certificate is held as business assets, any income or gains (or losses) are to be included for income, corporation or trade tax purposes. If one follows the – controversial – opinion that certificates are forward transactions within the meaning of section 15 (4) sentences 3 to 5 EStG, losses can only be offset against gains from forward transactions to a limited extent.

The half-income procedure/tax exemption does not apply to the Certificates.

2008 corporate tax reform

General information

The 2008 Corporate Tax Reform Act (Unternehmensteuerreformgesetz) dated 14 August 2007, leads, among other things, to fundamental changes to the taxation of capital income in private assets and private sale transactions within the meaning

of section 23 of the German Income Tax Act (EStG). These changes shall apply as of 1 January 2009 – subject to certain transitional regulations for existing cases.

In the opinion of the Issuer, the tax-related consequences of an investment in certificates, based on the 2008 Corporate Tax Reform Act, are as follows:

Taxation of certificates held as private assets

In the case of private investors, gains from the sale or redemption of the certificates (hereinafter referred to collectively as 'capital gains') are to be considered as capital income within the meaning of section 20 (2) sentence 1 no. 7 EStG in the version of the Corporate Tax Reform Act, and are subject to income tax at a (generally) uniform tax rate of 25 %, plus a solidarity surcharge of 5.5 %. Nevertheless, the Act sets out transitional provisions for certain existing cases, depending on the point in time at which the certificates were purchased. In accordance with these regulations, the final withholding tax (Abgeltungssteuer) shall apply, for the first time, without limitation to certificates purchased on or after 1 January 2009. Certificates known as 'full-risk certificates (Vollrisiko-Zertifikate)' (i.e. certificates that do not guarantee either capital repayment or regular considerations for the use of capital), which were purchased before 1 January 2009 and after 14 March 2007, are subject to final withholding tax if the certificate holder receives the capital gains after 30 June 2009 and the period of time between the purchase and sale/redemption of the certificates exceeds one year. If, however, the period of time between the purchase and sale/redemption of full- risk certificates acquired before 1 January 2009 and after 14 March 2007 equals exactly one year or less, the current legal situation shall continue to apply irrespective of the point in time at which the certificate holder receives the capital gains, meaning that these capital gains are to be taxed as a private sale transaction in line at the investor's individual rate of tax.

No transitional period shall apply for certificates other than full-risk certificates, known as financial innovation instruments (Finanzinnovationen), which are already subject to taxation on disposal irrespective of the holding period. Capital gains resulting from such financial innovation instruments shall be subject to final withholding tax from 1 January 2009 irrespective of the holding period.

The Corporate Tax Reform Act will also mean fundamental changes to the options available for offsetting losses. Losses from private sale transactions (or, in accordance with the new terminology 'losses from capital assets') can be offset against income from capital assets within the meaning of section 20 EStG in

the version of the Corporate Tax Reform Act as of 1 January 2009, i.e. against interest income and dividends, too. By contrast, investors will no longer be able to offset income from capital assets, i.e. in particular interest payments and dividends, against other types of income from the 2009 assessment period onwards. One exception in this case relates to losses from the disposal of equities. These can only be offset against gains from equity disposals. This means that losses from the disposal of equities cannot be offset against other capital income within the meaning of section 20 EStG, including gains and income from certificates. Losses from capital assets may not be carried back, but can only be carried forward to subsequent years.

Previous losses from private sale transactions within the meaning of section 23 EStG (current version) that arose in the period up to the end of 2008 can be offset against positive income from capital assets within the meaning of section 20 (2) EStG in the version of the Corporate Tax Reform Act, i.e. not against dividends and other income within the meaning of section 20 (1) EStG, for a transitional period that will run until

31 December 2013.

Withholding at source

If the certificates are held in custody at, or managed by a domestic credit institution, a domestic financial services institutions (including a domestic branch of a foreign institution), a domestic securities trading company or a domestic securities trading bank, capital yield tax will be withheld by the relevant institution/company at a rate of 25 % (plus 5.5 % solidarity surcharge) in the event of redemption or sale.

If the certificates have been held in custody at, or managed by the relevant institution/company since the time of acquisition, the tax withheld shall correspond to the difference between the sale or redemption amount following deductions for expenses that are directly related to the sale transaction and the acquisition costs for the certificates. If the custodian has changed since the acquisition of the certificates and no evidence can be furnished on the acquisition costs, capital yield tax shall be levied at a rate of 25 % (plus solidarity surcharge) on 30 % of the income from the sale or redemption of the certificates.

In accordance with German tax law, the issuer – insofar as it does not qualify as paying agent – is not obliged to xxxx withholding tax when the certificates are redeemed.

Possible opt-out

The amount of tax withheld shall, in principle, have a discharge effect, provided that the certificates are held as private assets. Nevertheless, the taxpayer can request

that the capital income be included, as a whole, in the assessment procedure and subjected to his or her personal income tax rate, if this results in a lower income tax burden. The taxpayer must disclose any capital income that has not already been subject to capital yield tax in his or her income tax return.

Taxation of certificates held as business assets

Insofar as certificates are held as business assets, the amount of tax withheld is offset against the investor's personal income or corporation tax liability (and the solidarity surcharge), i.e. the tax withheld does not have a discharge effect. Any remaining balance shall be refunded.

3. 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 the 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.

Italian tax law does not provide rules pertaining to any specific financial derivative instrument, but rather deals with them on a general basis; income arising under these instruments is generally treated as “other income” (“Redditi Diversi”), i.e., income which depends upon uncertain events, as opposed to “income from the investment in capital” (“Redditi di Capitale”) which includes only income that arises from the temporary availability of capital. Under the joint provisions of article 67(c-quater) 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, taxable income realized under the Certificates, not obtained within the exercise of entrepreneurial activities, by persons resident in Italy and individuals equivalent to residents

as defined in the Decree no. 461/1997, as amended, is determined as follows:

- in the case of Certificates which are physically settled, taxable income realized upon disposal of the physical settlement must be determined under the rules for determining capital gains; and

- in the case of Certificates which are cash settled, taxable income is equal to the algebraic sum of the positive and negative settlements, taking into account all the relevant proceeds and charges.

Pursuant to the Decree 461/1997, taxable income arising from the Certificates is ordinarily subject to Italian substitutive tax at a 12.50 per cent rate.

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 realized 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 realized 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.

The general information on taxation does not constitute part of the Certificate Terms and Conditions; the respective Certificate Holders cannot derive any claims from this information. The Issuer assumes no responsibility for the withholding of taxes at source. Moreover, a tax advisor should be consulted in each individual case to ensure optimal taxation.

E. IMPORTANT INFORMATION

General information on the Certificates issued under the Base Prospectus dated 3 August 2007 as amended by the supplement 25 September 2007 can be found in section H of the Base Prospectus. With respect to the Certificates, which form the object of these Final Terms, investors should also note the following information:

Information from third parties

The Issuer makes no assurance that the information on the underlying is correct and complete, as it is not responsible for creating or issuing the index. The Issuer has received and reproduced this information from the Determination Agent of the index. For third-party information, please also refer to section H.1.2 of the Base Prospectus.

Obligations under the Certificates

The Issuer points out that these Certificates only give rise to obligations for the Issuer, and not, in any way whatsoever, for the company of the underlyings, the licensers of indices and/or the companies of shares contained in an index. In particular, the issue of these Certificates does not constitute a (public) offer of the securities, which comprise the underlying. The companies whose shares form the basis of these Certificates or the respective licenser or the respective Determination or calculation agent of the index, were neither involved in preparing the Final Terms and the Base Prospectus, nor do they have any impact on the features of the Certificates. In particular, the Certificate Holders do not acquire any rights under or arising from the securities underlying the index, as the index only represents the hypothetical investments in the components based on their respective weighting.

Responsibility for the underlying

The Issuer assumes no responsibility whatsoever concerning the information provided to the Certificate Holders on the issuers of the securities contained in the index, concerning the credit rating of the issuers of the securities contained in the index, or for the features and the calculation of the price of the latter. Information on particular risks resulting from the securities in the index or their structure can be found in the respective prospectus for the index constituents.

Selling restrictions

Investors’ attention is expressly drawn to the selling restrictions concerning the Certificates contained in section H.2 of Base Prospectus (see also the respective provision in the Certificate Terms and Conditions).

Notification

The Issuer applied for notification of the Base Prospectus to the Republic of Italy in accordance with sections 17 and 18 of the German Securities Prospectus Act (Wertpapierprospektgesetz).

Method of publication

The Final Terms of the Certificates will be published in Italy no later than the day of the public offering and in the manner provided for in Section 14 of the Terms and Conditions. The Base Prospectus and the Final Terms are published in electronic form on the Issuer’s website ('xxx.xxxxxxxxx-xxxxxxxx.xxx') and are available at Sal. Xxxxxxxxx xx. & Cie. KGaA, Trading & Derivatives, Xxxxxxxxxxxxxxx 0, X-00000 Xxxxxxxxx / Xxxx, Xxxxxxx, free of charge.

F. GE NE RAL I N F O R M ATI O N ON THE BASE PROSPECTUS

1. Responsibility for the Base Prospectus

1.1. Responsible individuals

Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, which has its registered office in Xxxxx Xxxxxxxxxxxxx 0, 00000 Xxxxxxx is responsible for the information contained in this Base Prospectus. The Issuer declares that, to the best of its knowledge, the information contained in the Base Prospectus is accurate and that no material circumstances have been omitted.

Pursuant to section 6 (2) of the German Securities Prospectus Act, the information contained in this Base Prospectus is to be supplemented, as necessary, with updated information on the Issuer and on the securities to be offered to the public or to be admitted to trading on an organised market, in the form of a supplement in accordance with section 16 of the German Securities Prospectus Act.

1.2. Information from third parties

If information from third parties has been incorporated into this Prospectus, the Issuer warrants that this information has been correctly reproduced and that – to the best of the Issuer's knowledge and to the extent that can be deduced from the information provided by such third party – no facts have been omitted that could render the reproduced information incorrect or misleading. The sources of the information are cited in the respective locations.

2. Selling restrictions

The distribution of the Base Prospectus and/or the Final Terms including the Certificate Terms and Conditions and the offer/purchase of the Certificates may be subject to statutory restrictions in certain countries. Any offer or purchase of the Certificates in any other country is only permissible if the selling restrictions 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, and is only permitted if such offer or purchase does not give rise to any obligations for the Issuer that extend beyond the scope of those contained

in this prospectus. Anyone who comes into possession of this Prospectus or any parts thereof undertakes to obtain information on, and comply with any restrictions. Potential buyers of Certificates should consult their legal advisors as to whether or not the purchase of Certificates is permissible in their particular case or is subject to restrictions.

In member states of the European Economic Area which have implemented the Prospectus Directive, a public offer of the Certificates can only be made:

(a) after the day of publication of a Prospectus relating to the Certificates, which was approved by the responsible authorities of the member state in question or was approved in another member state, in which case the responsible authorities in this member state were informed, in each case in accordance with the Prospectus Directive, until the day that falls 12 months after the day of such publication;

(b) at any point in time under other circumstances that do not require the publication of a prospectus by the issuer in accordance with Article 3 of the Prospectus Directive;

(c) at any point in time to legal entities that are authorised or regulated to operate in the financial markets, or, to the extent that they are not authorised or regulated, whose corporate purpose is solely to invest in securities; or

(d) to legal entities which, according to their last annual or consolidated accounts, meet at least two of the following criteria: (1) an average number of employees during the last financial year of at least 250, (2) a balance sheet total exceeding EUR 43,000,000 and (3) annual net turnover exceeding EUR 50,000,000.

In this context, 'public offer' in relation to securities in a member state means a communication in any form and by any means, presenting sufficient information on the terms of the offer and the securities

to be offered, so as to enable an investor to decide to purchase or subscribe to these securities (taking into account modifications due to implementation in the respective member states). 'Prospectus Directive' refers to Directive 2003/71/EC and comprises the respective implementation measures in the member state in question.

Moreover, selling restrictions exist, in particular, in the United States of America, stating that these Certificates may not be offered, sold, attached, delivered, exchanged, exercised, redeemed or transferred in any other manner for or to US citizens or US residents.

3. Additional important information

The Base Prospectus and the Final Terms of the Base Prospectus do not constitute an offer (within the meaning of contract law) on the part of, or on behalf of the Issuer or other persons to purchase or to subscribe to the Certificates. As a result, a purchase or subscription agreement relating to the Certificate cannot be effectively concluded by means of a unilateral declaration on the part of, or on behalf of the buyer or subscriber.

No dealer, salesman or other person is authorised to give any information or to make any assurances other than those contained in this Prospectus in connection with the offering or sale of the securities. If given or made, such information or assurances must not be relied upon as having been authorised by the Issuer. None of this document or any further information supplied in connection with the securities is intended to provide the basis of any credit assessment or other evaluation and should not be considered as a recommendation by the Issuer that any recipient of this document or any further information supplied in connection with the securities should purchase any of the securities.

The Issuer does not intend to publish post- issuance information.

4. Method of publication

The Final Terms of the Certificates will be published in Italy no later than the day of the public offering and in the manner provided for in Section 14 of the Terms and Conditions.

The Base Prospectus and the Final Terms are published in electronic form and can be accessed on the Issuer’s website ('xxx.xxxxxxxxx-xxxxxxxx.xxx').

5. Documents available for inspection

This Base Prospectus, the Final Terms and any supplements are available at Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Trading & Derivatives, Xxxxxxxxxxxxxxx 0, 00000 Xxxxxxxxx / Xxxx, Xxxxxxx, free of charge.

All other documents referred to in this Base Prospectus are available for inspection at the same premises during normal business hours.

6. Documents incorporated by reference

In accordance with section 11 of the German Securities Prospectus Act, the Base Prospectus refers to the following document, which is considered part of the Base Prospectus:

Issuer’s registration form dated 19 June 2007 The registration form was deposited with the

Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) and can be accessed on the Issuer’s website at ('www.xxxxxxxxx- xxxxxxxx.xxx'). Approval of the registration form was granted in accordance with section 13 of the German Securities Prospectus Act following a review of the completeness of the information contained therein (including its consistency and comprehensibility).

The aforementioned document is available at Sal.

Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Trading & Derivatives, Xxxxxxxxxxxxxxx 0, 00000 Xxxxxxxxx / Xxxx, Xxxxxxx, free of charge.

Frankfurt / Main, August 2007 Sal. Xxxxxxxxx xx. & Cie.

Kommanditgesellschaft auf Aktien

NOTA DI SINTESI DEL PROSPETTO DI BASE

Per Certificati

Su azioni, certificati rappresentativi di azioni, indici, metalli preziosi,metalli pesanti, materie prime, contratti future, quote di fondi, Exchange Traded Funds (ETFs), tassi di cambio, tassi di interesse nonché su basket composti da singoli dai suddetti underlying della stessa specie o di specie diversa.

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

Prospetto di Base datato 2 agosto 2007

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

NOTA DI SINTESI ( V ersione italiana)

Il presente estratto costituisce la sintesi delle principali caratteristiche e dei rischi, relativi a Sal. Xxxxxxxxx xx. & Cie. Kommanditgesellschaft auf Aktien, Köln, (l'"Emittente") ed ai certificati (i "Certificati"), che saranno emessi sulla base del Prospetto di Base (il “Prospetto di Base”). La nota di sintesi (“Nota di Sintesi”) consiste in un’introduzione al Prospetto di Base. L'investitore dovrà pertanto, in ogni caso, porre a fondamento di ogni decisione di investimento nei Certificati tutte le ulteriori informazioni contenute nel Prospetto di Base, compre- si documenti richiamati per riferimento, eventuali supplementi e le rilevanti condizioni definitive (le “Condi- zioni Definitive”) del Prospetto di Base. L'Emittente, che assume la responsabilità per la presente Nota di Sin- tesi e per la sua traduzione, può essere chiamata a rispondere qualora la Nota di Sintesi sia fuorviante, erronea o incoerente, se letta unitamente alle altre parti del Prospetto di Base. Qualora siano fatti valere diritti dinanzi ad un Giudice sulla base del presente Prospetto di Base, delle informazioni richiamate per riferimento, di ogni documento esterno, di eventuali supplementi e delle informazioni contenute nelle rispettive Condizioni Defini- tive, l'investitore, in qualità di attore, ai sensi delle leggi applicabili degli Stati Membri dello Spazio Economico Europeo, potrebbe essere tenuto a sostenere, prima dell'inizio del procedimento, i costi della traduzione del presente Prospetto di Base, comprese le informazioni richiamate per riferimento, i supplementi e le Condizioni

Definitive.

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

L'acquisto o la vendita di Certificati richiede una precisa conoscenza della struttura e del funzionamento del Certificato di cui si tratta e dell’eventuale rischio di perdite. Ogni potenziale acquirente di Certificati deve valutare attentamente se un investimento nei Certificati sia adatto per lui, alla luce della propria situazione finanziaria e di tutte le circostanze del caso. Potenziali acquirenti di Certificati dovrebbero valutare con i pro- pri avvocati, consulenti commerciali, finanziari, o altri eventuali consulenti se, alla luce della loro situazione finanziaria e dei loro obiettivi di investimento, un investimento nei Certificati è adatto nel loro specifico caso.

1. Sintesi dei Fattori di Rischio

1.1. Rischi relativi all'Emittente Rischi generali relativi all'Emittente

L'Emittente, nell’ambito della propria attività, è esposta, in generale, a rischi, la cui realizzazione può eventual- mente portare all'impossibilità totale o parziale

di adempiere puntualmente ai propri obblighi relative all'emissione di titoli mobiliari.

L'Emittente è esposta a rischi di mercato deri- vanti da transazioni in prodotti finanziari. In considera- zione della concentrazione dell’attività dell’Emittente in un’attività commerciale e della conseguente classifica- zione dell’Emittente quale “trading book institution“, i rischi di mercato hanno un'importanza di notevole rilie- vo nel profilo di rischio complessivo del gruppo Sal.

Xxxxxxxxx (il "Gruppo" o "Sal. Xxxxxxxxx") . Tali rischi derivano da potenziali fluttuazioni dei parametri di valutazione rilevanti e da conseguenti variazioni nel valore del portfolio. I parametri di valutazione fonda- mentali sono: i tassi d'interesse, i tassi di cambio, quota- zione dei titoli azionari, il livello dell'indice nonché fattori più complessi quali la volatilità implicita, le cor- relazioni implicite e le aspettative sui dividendi. Inoltre, parametro rilevante è dato dallo spread (ovverosia la differenza di rendimento tra un credito privo di rischi e un’obbligazione con rischio di insolvenza del debitore).

I rischi relativi ai partner contrattuali (rischi del credito) derivano da potenziali perdite di valore sofferte dai crediti, titoli o strumenti finanziari derivati. La causa di ciò può essere l’insolvibilità o il peggioramento delle condizioni economiche di un debitore, di una contropar- te o di Emittenti.

L'Emittente è inoltre esposta a rischi operativi.

Secondo il Comitato per la Supervisione Bancaria di Basilea (Basel Committee on Banking Supervision), i rischi operativi sono quei rischi di perdita conseguenti all’inadeguatezza o al mancato funzionamento delle procedure interne, dei sistemi, all’errore umano o con- seguenti ad eventi esterni.

Il rischio di liquidità è il rischio per l’Emittente di trovarsi nell'impossibilità di adempiere, in modo puntuale e completo, alle proprie obbligazioni di paga- mento, presenti o future.

L'Emittente ha individuato i rischi futuri nella continua pressione sul margine di profitto dovuta alla crescente concorrenza ed allo sviluppo del mercato dei capitali. A proposito dei costi del rischio di credito, l'Emittente si attende variazioni marginali se comparate all'anno precedente.

Rischi specifici relativi all'Emittente

Per l’Emittente i Certificati sono fonte di obbligazioni ordinarie non garantite e non subordinate, di pari grado tra loro nonché rispetto a tutte le altre obbligazioni non subordinate, ad eccezione di quelle obbligazioni che hanno prelazione in forza disposizioni di legge impera- tive. Di conseguenza, l'investitore sopporta il rischio di insolvenza dell'Emittente. La tutela del fondo di garan- zia dei depositi della confederazione delle banche tede- sche (Einlagesicherungsfond des Bundesverbands deu- tscher Banken) non opera per i titoli in discorso. Conse- guentemente, nella scelta di investimento dell’investitore, la solvibilità dell'Emittente è importan- te.

I Certificati rappresentano esclusivamente ob- bligazioni dell'Emittente. I Portatori, nell’eventualità di perdita, non hanno alcun diritto di regresso nei confronti dell’emittente del sottostante o delle componenti dell’indice o del basket.

Conflitto di interessi

A tutela delle proprie posizioni, se opportuno, l'Emitten- te potrà partecipare a transazioni (per conto proprio o di terzi) sul sottostante (nel caso di Certificati su azioni), sulle componenti di un basket o una componente di un indice (in caso di Certificati su indice o su basket) o sul sottostante (in caso di altri Certificati) ed in tal modo influire negativamente sul valore dei Certificati.

L’Emittente può altresì essere titolare di partecipazioni rilevanti in singole imprese di una componente del ba- sket (nei Certificati su azioni) o di una componente dell'indice, da cui potrebbero sorgere conflitti di interes- se in relazione all’emissione dei Certificati.

L'Emittente può emettere ulteriori strumenti fi- nanziari derivati aventi caratteristiche simili o identiche ai Certificati o del loro sottostante. L'offerta di tali pro- dotti in concorrenza con i Certificati può influire sul valore delsottostante e quindi sul valore dei Certificati.

In relazione ad offerte future di azioni di un sottostante o di una componente di basket o di indice, l'Emittente può agire in qualità di membro di un consor- zio, di consulente finanziario, di banca d'investimento. Tali attività possono portare ad un conflitto d'interessi e pertanto possono influenzare il valore dei Certificati.

1.2. Sintesi dei fattori di rischio relativi ai Certificati Rischio di perdita totale

L'andamento di un Certificato non è stabilito al momen- to del suo acquisto. Il rimborso dei Certificati alle con- dizioni più favorevoli possibili per l'investitore e/o il pagamento di un determinato importo di liquidazione non è del pari garantito, a meno che non sia espressa- mente previsto nel Regolamento del Certificato.

I Certificati implicano il rischio di una perdita di valore inaspettata e di ampia portata. Investendo in Certificati, l'investitore si espone a tale rischio di perdita dipendente dall'andamento del sottostante nonché, even- tualmente, dagli specifici fattori determinanti per il valore delle opzioni cartolarizzate nel Certificato. Il profitto o la perdita dipende sempre dal prezzo pagato per l'acquisto del Certificato. Se, alla scadenza, il valore complessivo delle prestazioni dell’Emittente sarà infe- riore al prezzo d'acquisto, l'investitore subirà una perdi- ta.

L'investitore potrebbe addirittura subire la perdita totale del capitale investito.

Rischi specifici collegati alla struttura del Certificato

La specifica struttura dei Certificati può aumentare i rischi collegati all’acquisto di Certificati.

In generale, i fattori determinanti per il valore del Certificato comprendono - oltre al raggiungimento o mancato raggiungimento ovvero superamento di even- tuali soglie, definite più dettagliatamente nel Regola- mento, da parte della quotazione del/di tutti i sottostan- te/i, - in particolare, (i) la volatilità cioè le oscillazioni nell’andamento del sottostante e, nei Certificati non quanto, anche dei tassi di cambio, (ii) la correlazione e, in particolare, il grado di dipendenza reciproca dell’andamento delle componenti del basket o dell’indice, (iii) la durata residua del Certificato, (iv) i

tassi di interesse sul mercato monetario, nonché, salvo eccezioni, (v) il pagamento o le aspettative di pagamen- to di dividendi previsti per una componete del basket o dell’Indice.

Persino in ipotesi in cui il livello di un sotto- stante, nel corso della sua vita, abbia un andamento favorevole all’investitore, si può verificare una diminu- zione del valore del Certificato a causa di tali ulteriori fattori.

Certificati con un importo di liquidazione Massimo

Nei Certificati con un importo di liquidazione massimo, condizionato o incondizionato, l’importo di liquidazione è limitato ad un ammontare predeterminato.

Certificati con importo di liquidazione condizionato

Le modalità di calcolo di un’eventuale prestazione di pagamento dell’Emittente e delle sue modalità di calco- lo può dipendere dall’avveramento o mancato avvera- mento di determinate condizioni od eventi. Gli investi- tori devono essere consapevoli che l’avveramento ovve- ro mancato avveramento di tali eventi può influire sulle modalità e l’importo della prestazione di pagamento.

Certificati con rimborso anticipato

I Certificati con rimborso anticipato (c.d. “autocallable” o con struttura "express") sono strutture ibride in cui il raggiungimento o mancato raggiungimento di determi- nate soglie da parte della quotazione del sottostante prefissate al momento dell’emissione, ha come conse- guenza la scadenza anticipata del Certificato. In ipotesi di rimborso anticipato l’investitore non partecipa ad un eventuale andamento al rialzo al livello del sottostante.

Certificati con eventuale consegna fisica

I Certificati possono prevedere la facoltà dell’Emittente, eventualmente in caso di avveramento di una determina- ta condizione, di adempiere a mezzo consegna fisica del Sottostante ovvero, nel caso di sottostanti che non am- mettono consegna fisica (ad esempio indici), con conse- gna di titoli che si riferiscono al sottostante (quali i "Certificati open end su indice ") o gli Exchange Traded Funds ETFs). In caso di consegna fisica si deve conside- rare che i titoli di cui si tratta possono essere venduti, al più presto, una volta accreditati nel conto titoli dell’investitore.

Certificati con effetto leva o partecipazione pro rata In caso in cui i Certificati abbiano un effetto leva, ad esempio in forma di una quota di partecipazione, le variazioni nella livello del sottostante hanno un effetto

più che proporzionale sul valore dei Certificati. Nel caso dei Certificati con tale caratteristica il rischio dell’investitore è particolarmente alto, in quanto varia- zioni del livello del sottostante hanno per effetto una variazione “con leva” cioè più che proporzionale del valore dei Certificati.

Rischi specifici collegati al sottostante

Certificati su azioni

Nei Certificati su azioni emesse non in conformità del diritto tedesco ma del diritto di un altro stato, i diritti su tali azioni o derivanti dalle stesse possono essere disci- plinati esclusivamente o parzialmente dal diritto di tale stato. Laddove il sottostante sia costituito da azioni intestate al Portatore ovvero qualora le azioni contenute nel sottostante siano azioni nominative (in ogni caso “Azioni Nominative”) e qualora l’Emittente sia obbliga- ta, ai sensi del Regolamento del Certificato, i diritti collegati allo status di azionista (ad esempio partecipa- zione all’assemblea sociale ed esercizio del diritto di voto), possono essere esercitati solo se gli stessi azioni- sti sono iscritti nel libro dei soci o altro registro compa- rabile. L’obbligo dell’Emittente di consegna delle azio- ni, nel caso di azioni nominative, si limita alla messa a disposizione delle azioni in modo che siano idonee alla negoziazione in borsa, ma non comprende l’iscrizione nel libro dei soci. In tal caso è escluso il diritto al risar- cimento del danno o alla risoluzione per inadempimen- to.

Certificati su titoli rappresentativi di azioni

I Certificati possono essere emessi su titoli rappresenta- tivi di azioni (in particolare, in forma di American De- positary Receipts (ADRs) o Global Depositary Receipts (GDRs)). Tali titoli possono presentare un rischio ulte- riore in rapporto ad un investimento diretto in azioni.

Titolare, sotto il profilo giuridico, delle azioni sottostan- ti, in entrambe le tipologie di Depositary Receipts, è la banca depositaria, che è altresì preposta all’emissione dei Depositary Receipts. A seconda dell’ordinamento giuridico a cui sono soggetti l’emissione ed il contratto di deposito dei Depositary Receipts, non può essere escluso che l’ordinamento giuridico de quo non ricono- sca il titolare del Depositary Receipts quale effettivo titolare delle azioni sottostanti. In particolare, in ipotesi

di fallimento della banca depositaria o di procedura esecutiva nei confronti della medesima, può accadere che sia disposta una limitazione al potere di disposizio- ne sulle azioni sottostanti i Depositary Receipts o che le azioni vengano sottoposte a vendita forzata. In tal caso, il titolare dei Depositary Receipts perde i diritti sulle azioni incorporati nel certificato di deposito (Depositary Receipts) ed i Depositary Receipts, quale sottostante dei Certificati ed i Certificati stessi su tali Depositary Re- ceipts restano completamente privi di valore. In tale configurazione il Portatore sopporta il rischio di una perdita totale, nella misura in cui il valore dell’importo di liquidazione dei Certificati, al termine del periodo di validità dei Certificati o in caso di recesso anticipato da parte dell’Emittente, sia pari a zero e i Certificati siano privi di un (parziale) livello di protezione.

Certificati su indici e/o basket

Nei Certificati su indici o basket il quantum dell’im- porto di liquidazione dipende esclusivamente dal livello (di rimborso) del basket o dell’Indice. Il livello di un basket ovvero di un indice dipende, a sua volta, dalle singole componenti del basket o dell’indice. Durante la vita del Certificato il valore di mercato dello stesso può discostarsi dall’andamento del basket o dell’indice o dalle componenti degli stessi. L’investitore non può pertanto fare affidamento sul valore del Certificato.

Le stesse singole componenti del basket o dell’indice, in ragione della loro speciale struttura, possono presentare rischi particolari.

Nel caso di Certificati su basket le singole componenti del basket, a seconda della struttura del Certificato, possono avere la stessa rilievo o presentare diversi fattori di ponderazione. In linea di principio, minore è il fattore di ponderazione di una componente del basket, minore è l’influsso dell’andamento della rispettiva componente del basket sull’andamento del basket in toto. A seconda del Regolamento del Certifi- cato, una componente del basket o una tipologia di componenti con un andamento negativo possono essere determinanti per l’importo di liquidazione.

Nel caso di Certificati su indici o basket con ge- stione attiva la scelta delle Componenti dell’indice o del basket o della composizione dei medesimi non è costan- te durante l’intera la vita del Certificato. L’investitore pertanto acquista un Certificato su un indice o un basket con composizione variabile.

I Certificati su indici o basket hanno la particola- xxxx che l’andamento del Certificato durante la vita del Certificato stesso ed il tipo e l’ammontare dell’importo di liquidazione a scadenza dipendono dall’andamento di più componenti dell’indice o del basket. In determinati Certificati per il calcolo dell’importo di liquidazione può essere determinante anche la differenza tra due o più sottostanti (compresi in un basket). Pertanto, anche la correlazione tra le componenti del basket, i.e., sempli- ficando, il grado di dipendenza reciproco dell'andamen- to delle componenti, può avere rilevanza per il valore del Certificato.

Non è prevedibile se e in che misura si sviluppe- rà un mercato secondario per le componenti del basket e dell’Indice e a quali prezzi l’Emittente potrà vendere o acquistare le componenti di cui sopra sul mercato se- condario e nemmeno è prevedibile se tale mercato se- condario avrà liquidità o meno.

Qualora i Certificati siano emessi, in tutto o in parte, con valuta diversa da quella del sottostante, vi possono essere dei rischi ulteriori dipendenti dalla cor- relazione rispetto a quelli descritti precedentemente.

Tali rischi si riferiscono al grado di dipendenza dell’andamento della componente del basket (in valuta straniera) dall’andamento del rapporto di cambio da tale valuta nella valuta del sottostante.

Certificati su materie prime

Le materie prime sono suddivise, in generale, in tre principali categorie: minerali, metalli e altre sostanze fisiche (per esempio petrolio, gas, alluminio, rame), attività dell’agricoltura (ad esempio frumento e mais) e metalli preziosi (oro e argento). Gran parte delle materie prime è negoziata in borse specializzate, direttamente tra gli operatori del mercato, a livello mondiale, a mez- zo contratti standardizzati OTC c.d. over the counter (fuori borsa).

I rischi del prezzo delle materie prime sono spesso complessi. I prezzi sono esposti ad oscillazioni più marcate rispetto ad altre forme di investimento (ele- vata volatilità). In particolare, i mercati delle materie prime hanno minore liquidità rispetto al mercato obbli- gazionario a tasso fisso, azionario e valutario. Pertanto, variazioni nella domanda e nell’offerta incidono sui prezzi e la volatilità in modo piuttosto drastico, con la conseguenza che investimenti in materie prime presen- tano maggiori rischi e complessità. I fattori e le circo-

stanze che hanno effetti diretti o indiretti sul valore delle materie possono quindi riflettersi negativamente sul valore dei Certificati.

Certificati su contratti future

I contratti future sono contratti a termine su strumenti finanziari (azioni, indici, tassi di interesse, valute), c.d. contratti a termine su strumenti finanziari, o materie prime (metalli preziosi, frumento, zucchero), c.d. contratti a termine su merci.

Un contratto a termine rappresenta l’obbligazione cartolarizzata ad acquistare o vendere una determinata quantità dell’oggetto del contratto ad un prezzo predeterminato.

In principio, vi è una stretta correlazione tra l’andamento dei prezzi di un sottostante sul mercato spot ed il corrispondente mercato future. Peraltro, i contratti future, in principio, sono negoziati con un rialzo o uno sconto di prezzo sul prezzo spot. Tale diffe- renza tra il prezzo spot e il prezzo future, indicata come “basis” nella terminologia della borsa dei contratti a termine, risulta, da un lato, dal calcolo dei costi che di norma ricorrono nei contratti spot (di deposito, conse- gna, assicurazione) ovvero rendite (interessi, dividendi etc.), dall’altro, dalla differente valutazione dei fattori generali, sul mercato spot e sul mercato future. Inoltre, a seconda del sottostante, vi possono essere notevoli dif- ferenze di liquidità tra il mercato spot ed il corrispon- dente mercato opzionario.

Dato che i Certificati si basano sul prezzo di quotazione di borsa dei contratti future sottostanti speci- ficato nel rispettivo Regolamento, al fine di una valuta- zione adeguata dei rischi collegati all’acquisto di tali Certificati, oltre alle conoscenze del mercato dei rispet- tivi contratti sottostanti futures di cui si tratta, sono necessarie conoscenze sul funzionamento e sulla valuta- zione di operazioni di contratti a termine.

Dato che il sottostante contratto future ha una scadenza, nei certificati con durata più lunga il contratto future può essere sostituito (c.d. “roll-over”) nel corso della vita del Certificato.

Certificati su quote di fondi

Un fondo o fondo di investimento è un patrimonio auto- nomo amministrato da una società di capitali che viene

investito in varie forme dal rispettivo management a da singoli manager del fondo.

La scelta delle tipologie di investimento sono di competenza esclusiva del management o dei singoli manager. Pertanto, il successo e l’aumento di valore dei singoli fondi dipendono in misura rilevante dalle capaci- tà dei singoli individui che agiscono in qualità di manager del fondo.

L’investitore in quote di fondo, anche se non affronta direttamente i rischi collegati agli investimenti da parte del fondo, sopporta, pro quota, l’intero rischio degli investimenti rappresentati dalle quote del fondo pro rata temporis. I titolari di Certificati su fondi sopportano mediatamente tutti questi rischi.

Qualora i Certificati si riferiscano a hedge funds, vi sono rischi particolari che possono riflettersi negativamente sul valore delle quote di fondo che costituiscono il sot- tostante.

Gli hedge funds hanno sostanzialmente facoltà di avva- lersi di strategie di investimento ad alto rischio e di forme di investimento del capitale estremamente com- plesse. Il patrimonio amministrato da hedge funds è spesso investito, nelle borse internazionali dei derivati, in strumenti finanziari derivati quali opzioni e futures. La strategia di investimento di un hedge fund può com- prendere, quale sua componente, anche c.d. short sales ed il ricorso al credito. Dato che per gli hedge funds non vi sono standard imposti da autorità di vigilanza, non è possibile un’esposizione ampia o esaustiva di tutte le possibili strategie di investimento degli hedge funds.

Certificati su Exchange Traded Funds

Lo scopo di un Exchange Traded Funds (“ETF”) è la riproduzione il più esatta possibile di un indice. Il valore di un ETF dipende pertanto, in particolare, dall’andamento delle singole componenti dell’indice.

Peraltro, non si può escludere che vi siano divergenze tra l’andamento di un ETF e quello dell’indice corri- spondente (c.d. “tracking error”).

Certificati su tassi di cambio

I tassi di cambio esprimono il rapporto tra il valore di una valuta rispetto ad un’altra. In generale, i tassi di cambio sono determinati dalla domanda e dall’offerta sui mercati valutari che sono, a loro volta, esposti, tra l’altro, a fattori macroeconomici e speculazione nonché

provvedimenti dei governi e delle banche centrali (ad esempio, controlli o limitazioni valutari).

Certificati su tassi di interesse

I tassi di interesse dipendono dalla domanda e dall’offerta sui mercati dei capitali che, tra l’altro, sono influenzati da fattori macroeconomici e speculazione nonché e interventi dei governi e delle banche centrali.

Incertezza circa l’andamento dei Certificati

L’andamento del Certificato, e qualora applicabile, la struttura di rimborso nonché il suo importo non sono prestabiliti al momento dell’acquisto del Certificato. Il rendimento dell’investitore dipende significativamente dal prezzo pagato per l’acquisto del Certificato. Il ri- schio di perdita sussiste già durante il periodo di osser- vazione del Certificato. Il valore del Certificato può essere inferiore al prezzo pagato dall’investitore.

In caso di alienazione anticipata del Certificato, il rendimento o l’eventuale perdita è data dalla differen- za tra il prezzo per l’acquisto ed il prezzo di vendita del Certificato. In caso di rimborso dei Certificati da parte dell’Emittente, il profitto o l’eventuale perdita è data dalla differenza tra il valore di tutte gli importi di liqui- dazione ed il prezzo pagato dall’investitore, al netto di eventuali commissioni e costi di transazione.

L’investitore subisce una perdita se il valore di tutte le prestazioni dell’Emittente è inferiore al prezzo per l’acquisto del Certificato.

A meno che non sia espressamente previsto di- versamente nel Regolamento dei Certificati, il Certifica- to non garantisce alcun diritto al pagamento né di inte- ressi né altri emolumenti (ad esempio, dividendi) e pertanto non garantisce alcuna rendita corrente. Even- tuali perdite di valore del Certificato non possono quindi essere compensate da altri rendimenti derivanti dal Certificato.

Eventuali costi di transazione messi in conto dalla banca depositaria nonché eventuali commissione amministrativa o performance fees dell’Emittente o manager delle componenti del basket possono ripercuo- tersi negativamente sul valore del Certificato.

Rischio di disdetta anticipata

In casi particolari, la durata o la durata residua dei Certi- ficati può essere ridotta in modo imprevisto mediante disdetta straordinaria, ad opera dell'Emittente. In tal caso, l’investitore sopporta il rischio che le sue aspetta- tive di aumento di valore del Certificato, a causa della disdetta anticipata, non si realizzino.

Rischio di reinvestimento in caso di disdetta straordinaria del Certificato da parte dell'Emittente

In caso di disdetta del Certificato da parte dell'Emittente in conformità con il Regolamento, l'investitore è sogget- to al rischio di reinvestimento. Ciò significa che l’investitore, in caso di disdetta potrà reinvestire ogni eventuale 'importo di disdetta ricevuto dall'Emittente in caso di disdetta a condizioni di mercato più sfavorevoli rispetto a quelle in vigore al momento dell'acquisto del Certificato.

Rischio di ritardo nel pagamento in caso di disdetta anticipata da parte dell’Emittente

A seguito di disdetta anticipata da parte dell’Emittente, la determinazione ed il pagamento dell’importo di di- sdetta o di liquidazione può essere posticipata per un periodo di tempo indeterminato, contrariamente alle attese dell’investitore. In tal caso, il valore dei Certifica- ti o di eventuali titoli da consegnarsi possono diminuire, a sfavore dell’investitore, durante il periodo di tempo compreso tra la disdetta e la determinazione e rimborso dell’importo di liquidazione da parte dell’Emittente.

Limiti della facoltà di disdetta da parte del Portatore

La disdetta, i.e. l’esercizio dei Certificati da parte del Portatore, sensi del Regolamento del Certificato, può essere esclusa, limitata o essere consentita solo a sca- denze prefissate al momento dell’emissione.

Risoluzione di transazioni contestuali dell'Emittente

Al fine di garantire il rispetto dei propri obblighi deri- vanti dai Certificati, l'Emittente conclude regolarmente, a scopo di garanzia, transazioni sul sottostante, sulle componenti del basket o dell’indice. In particolare, l'esercizio dei Certificati, in un giorno di valutazione, a scadenza, o al momento della disdetta, determina la risoluzione delle transazioni. A seconda del numero di

Certificati da esercitarsi, della situazione di mercato corrente e della liquidità del sottostante ovvero delle componenti del basket o dell'indice, non è possibile escludere che ne vengano influenzati il prezzo del sotto- stante e quindi l’ammontare o la modalità dell’importo di liquidazione.

Sconvolgimenti di mercato e rettifiche

L'Emittente accerta l'insorgenza o l'esistenza di scon- volgimenti di mercato in conformità con il Regolamento dei Certificati; le eventuali rettifiche sono adottate esse pure in conformità con il Regolamento. Gli sconvolgi- menti di mercato possono ridurre il valore dei Certificati e ritardarne il rimborso. Qualora siano applicate rettifi- che, non si può escludere che le valutazioni a base di una determinata rettifica si rivelino in seguito errate e che la rettifica adottata risulti pertanto svantaggiosa per l'investitore.

Transazioni finalizzate all'eliminazione o riduzione dei rischi

L'investitore non dovrebbe inoltre fare affidamento sul fatto di poter concludere in qualsiasi momento prima della scadenza del Certificato transazioni che gli con- sentano di eliminare completamente o ridurre i rischi a suo carico in quanto ciò dipende dalle condizioni di mercato. Tali transazioni potrebbero essere possibili ad un prezzo di mercato svantaggioso che potrebbe risulta- re in una perdita per l’investitore.

Negoziazione dei Certificati

Nel corso della durata del prodotto, i Portatori possono, se del caso, cedere i loro Certificati in qualsiasi momen- to sia in borsa che fuori borsa. L'Emittente si propone, in presenza di condizioni di mercato consuete, di fissare regolarmente i prezzi ask e bid dei Certificati. Peraltro, l'Emittente non si assume alcun obbligo giuridico con riguardo all'entità o alla quotazione di tali prezzi. L'in- vestitore non dovrebbe quindi fare affidamento sul fatto di poter cedere il proprio Certificato ad un determinato prezzo o in un determinato momento nel corso della durata del Certificato.

Peraltro, può accadere che la negoziazione di determinati Certificati non sia possibile oppure sia pos- sibile ma solo in misura limitata. Ciò significa che, nel caso di ribassi della quotazione del sottostante ovvero

delle componenti del basket, l'investitore potrebbe non poter vendere o esercitare i diritti dei Certificati oppure lo potrebbe fare ma solo con un certo ritardo temporale.

Rischio generale collegato ai tassi d’interesse

L'investimento in Certificati può comportare un rischio connesso a tassi d’interesse a causa delle oscillazioni di interessi da pagarsi sui depositi nella valuta dei Certifi- cati. I tassi di interesse dipendono dalla domanda e dall'offerta sui mercati monetari internazionali su cui incidono fattori macroeconomici e di speculazione, interventi di banche centrali e organi governativi o altri fattori politici.

Ricorso al credito

Il rischio inerente all’acquisto dei Certificati aumenta se l’investitore deve fare ricorso al credito per finanziare l’acquisto dei Certificati. In tal caso, l’investitore, in ipotesi di andamento del mercato contrario alle sue aspettative, deve anche rimborsare il credito con gli interessi. L’investitore, pertanto, non dovrebbe mai fare affidamento sul fatto di poter rimborsare capitale e inte- ressi con la rendita ricavata dal Certificato, ma dovrebbe valutare, prima dell’acquisto del Certificato e della richiesta di finanziamento, se la sua situazione finanzia- ria gli consente di pagare gli interessi ed, eventualmen- te, di rimborsare a breve termine il capitale, laddove si verifichi una perdita in luogo del profitto sperato.

Rischio di cambio

Se l'investitore acquista Certificati che prevedono il pagamento, in tutto o in parte, degli importi dovuti dal- l'Emittente in una valuta diversa da quella di negozia-

costituita nel 1989 a seguito della trasformazione da "Personenhandelsgesellschaft" (corrispondente, in linea di principio, a una società in nome collettivo italiana) a "Kommanditgesellschaft auf Aktien" (corrispondente, in linea di principio, ad una società in accomandita per azioni italiana) della Banca Sal. Xxxxxxxxx xx. & Cie., fondata in Germania nel 1789. L'Emittente è una società di diritto tedesco. La sua sede legale è a Colonia, con succursali, filiali o rappresentanze a Francoforte s. Me- no, Berlino, Düsseldorf, Amburgo, Monaco, Stoccarda, Baden-Baden, Lussemburgo, Vienna, Salisburgo e Pra- ga. La sede principale dell'Emittente è essa pure a Colo- nia.

Attività commerciale

L'attività dell'Emittente consiste nello svolgimento di operazioni bancarie di tutti i tipi ad eccezione delle operazioni di investimento. Oltre al settore dei servizi, gli altri due settori di attività principali dell'Emittente sono l’amministrazione dei patrimoni che comprende l'asset management e il private banking, e l'investment banking, che comprende fusioni e incorporazioni, tran- sazioni immobiliari, finanziamenti, transazioni con capitale proprio, consulenza istituzionale in campo azionario, negoziazione titoli e derivati e gestione cam- bi.

Dati riguardanti lo sviluppo dell'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 2005 e al 31 dicembre

2006.

zione ed i Certificati non sono garantiti contro i rischi di perdite valutarie (certificati non-quanto), l'investitore sarà esposto ad un rischio di cambio, in quanto, alla data rilevante per il calcolo dell’importo di liquidazione, il rapporto di cambio potrebbe differire dal rapporto di cambio in vigore al momento dell'acquisto dei Certifica-

2005

mln di EURO

(certifi- cato)

2006

mln di EURO

(certifi- cato)

ti.

Totale delle attività

32.029 35.347

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

L'Emittente, la Banca Sal. Xxxxxxxxx xx. & Cie. KGaA, nel gergo commerciale anche Banca Sal. Xxxxxxxxx,

Crediti 13.658 15.807

Capitale pro- 1.764 1.935

prio

Risultato atti-

vità ordinaria

283

309

Coefficiente patrimoniale (%)

Indice costi-

13,4

77,5

12,3

80,2

ricavi (%)

Fattori di rilievo che hanno interessato l'attività recente dell'Emittente

Dalla fine dell’esercizio 2006, la costituzione della Joint Venture con la holding del gruppo Frère-Bourgeois- Gruppe NPM/CNP (Compagnie Nationale à Portefeuille

/ Nationale Portefeuille Maatschappij), l’acquisto della partecipazione del 10% della banca di investimento Xxxxxx Xxxxxxxx & Co., LLC nonché l’aumento della quota di partecipazione di Xxx. Xxxxxxxxx xx. & Cie. (Lussemburgo) International S.A., Lussemburgo, alla società Financière Atlas S.A dal 10% al 100% sono stati i tre eventi di notevole rilevanza per l’Emittente.

Un ulteriore evento significativo è stato l'au- mento della partecipazione detenuta dalla IVG Immobi- lien AG nella Xxxxxxxxx Immobilien- Kapitalanlagegesellschaft mbH (OIK) dal 50,1% al 94%. A tal riguardo, nell'ottobre 2006 IVG ha acquista- to il 25% della partecipazione dell'Emittente, incremen- tando così la sua partecipazione al 94% in gennaio 2007.

Struttura del gruppo

Con effetto dal 1 luglio 2007, a compimento della ri- strutturazione del Gruppo, la società capogruppo sarà Sal. Xxxxxxxxx xx. & Cie. S.C.A. (la “Società Capo- gruppo”), con sede in Lussemburgo. Nell’ambito della ristrutturazione, le società principali del gruppo Sal.

Xxxxxxxxx saranno integrate nella nuova Società Ca- pogruppo con vari passaggi secondo il diritto societario. La precedente holding, Sal. Xxxxxxxxx International S.A., controllata dall’Emittente, a cui fanno capo le partecipazioni delle principali società del Gruppo, è ceduta dalla stessa Emittente all’attuale Società Capo- gruppo di nuova costituzione con cui si fonderà. Nel passaggio successivo, l’Emittente sarà integrata nella Società Capogruppo di nuova costituzione. Nell’ultima fase, le attuali società controllate dall’Emittente, BHF- BANK AG, Bank Sal. Xxxxxxxxx xx. & Cie. (Öster-

reich) AG, nonché la quota di partecipazione del 50 % della società Xxxxxxxxx-Xxxx Holding GbR saranno cedute, entro il 31 dicembre 2007, alla Società Capo- gruppo di nuova costituzione.

Ai fini del bilancio consolidato, fanno parte del Gruppo, oltre alla capogruppo Xxx Xxxxxxxxx jr. & Cie. KGaA, 35 società controllate di diritto tedesco e 38 società controllate di diritto straniero, delle quali l'Emit- tente dispone, direttamente o indirettamente, della mag- gioranza del capitale sociale e dei voti in assemblea, ovvero in cui può esercitare un influsso dominante.

Inoltre, nel bilancio consolidato di gruppo, sono state incluse 6 special purpose entities e fondi speciali ai sensi del combinato disposto dell’IAS 27 con SIC 12. Infine, sono state considerate 11 società at equity.

Ulteriori 125 società controllate e associate, di minore importanza ai fini della visione di insieme della situazione patrimoniale e finanziaria e della profittabilità del Gruppo, non sono state considerate nel bilancio consolidato. Se rapportate al bilancio del gruppo tali imprese corrispondono a meno del 2%.

Sede sociale

La sede sociale dell'Emittente è la seguente: Sal. Op- penheim, Xxxxx Xxxxxxxxxxxxx 0, 00000 Xxxx. Numero di telefono: tel.: x00 (0)000 000 00.

Sito internet

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

3. Sintesi relativa ai Certificati Oggetto del Prospetto di Base

I Certificati che potranno essere emessi dall’Emittente possono appartenere a varie tipologie con caratteristiche differenti a seconda della tipologia stessa.

I Certificati sono strumenti finanziari derivati, la cui liquidazione dipende dall’andamento del sotto- stante.

Ai sensi del Regolamento può non esservi al- cuna garanzia del capitale.

I sottostanti dei Certificati da emettersi da parte dell'Emittente possono essere azioni, certificati rappre-

sentativi di azioni, indici, metalli preziosi,metalli pesan- ti, materie prime, contratti future, quote di fondi, E- xchange Traded Funds (ETFs), tassi di cambio, tassi di interesse nonché basket composti da singoli dei suddetti sottostanti.

Conflitto d'interesse

L'Emittente può emettere ulteriori strumenti derivati aventi delle caratteristiche simili o con gli stessi sotto- stanti. Il collocamento sul mercato di tali prodotti in diretta concorrenza con i Certificati può avere delle ripercussioni sul valore del sottostante e pertanto sui Certificati.

L'Emittente, a garanzia delle proprie posizioni, potrebbe essere coinvolta in operazioni che riguardano un sottostante, una componente del basket (nel caso di Certificati su azioni o altri titoli), una componente dell’indice (nel caso di Certificati su indici) nonché con emittenti di una componente del basket (nel caso di Certificati su azioni) ovvero di una componente dell’indice (nel caso di Certificati su indici), per conto proprio o di terzi.

Tali operazioni possono ripercuotersi sia posi- tivamente che negativamente sull'andamento del valore del sottostante e, quindi, anche sul valore dei Certificati. L'Emittente, inoltre, può detenere delle partecipazioni rilevanti, in società emittenti di un sottostante o della componente di un basket ovvero di un indice (nei Certi- ficati su indice), da cui possono derivare dei conflitti d'interesse relativamente all'emissione dei Certificati in questione.

In relazione a offerte future di azioni del sotto- stante o di altri strumenti finanziari (nel caso di Certifi- cati su azioni o altri strumenti finanziari), di una com- ponente dell'indice (nei Certificati su indice) ovvero con riguardo a società emittenti di una componente del ba- sket (nei Certificati su azioni) o di un indice (nei Certi- ficati su indice), l'Emittente può fungere da membro di un consorzio, consulente finanziario o banca d'affari.

Operazioni di questo tipo possono determinare dei con- flitti d'interesse e andare quindi ad incidere sul valore dei Certificati.

Informazioni sui Certificati

Descrizione Generale dei Certificati

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

Descrizione dei diritti inerenti ai Certificati

L'acquisto dei Certificati attribuisce all’'investitore il diritto alla liquidazione dei Certificati, ed eventualmente all’esercizio dei diritti del Certificato, in conformità con il Regolamento.

Il Certificato termina, a seconda della struttura del Certificato stesso e fatta salva l’ipotesi di disdetta ordinaria o straordinaria o di disdetta anticipata laddove prevista, alla data di scadenza o, salvo disdetta da parte dell'Emittente laddove prevista nel Regolamento dei Certificati, o, in alternativa, può essere a tempo inde- terminato.

Procedura di liquidazione

L’Emittente si obbliga, al termine del periodo di validità del Certificato, di regola alla data di liquidazione o all’esercizio dei diritti del Certificato ovvero alla disdet- ta, a procedere a tutti gli adempimenti necessari presso Clearstream Banking AG, Frankfurt o, in caso di offerte in altri Stati membri, presso Euroclear Bank S.A. Bru- xelles, Clearstream Banking S.A. Lussemburgo o Monte Titoli S.p.A. Milano o presso un altro agente di deposi- to, al fine del trasferimento degli ammontari inerenti alla liquidazione alle rispettive banche custodi, che a loro volta,procederanno ad accredito dell’importo, , ai Portatori.

Descrizione del prodotto

Le singole tipologie di prodotti presentano differenti descrizioni che si ricavano dalle rispettive Condizioni Definitive ovvero nel Regolamento dei Certificati.

Con i Certificati l’investitore acquista il diritto alla liquidazione dei Certificati (il "diritto del Certifica- to”), che si configura come descritto più compiutamente nel Regolamento. I Certificati possono essere emessi con un valore nominale o senza valore nominale.

Gli investitori traggono profitto, in principio, dal rialzo del livello del sottostante. A seconda del livel- lo del sottostante i tali quotazioni si applicano differenti alternative di liquidazione.

Alcune tipologie di Certificati comprendono una o più soglie di quotazione (per esempio in forma di un livello PROTECT). In principio, ciò significa un profilo di pagamento favorevole per l’investitore, nella misura in cui il livello rilevante del sottostante ad una data di valutazione o durante il periodo di osservazione rimanga al di sopra od eventualmente al livello della soglia de qua.

Nei Certificati con importo di liquidazione massimo l’importo di liquidazione è limitato ad un ammontare massimo prestabilito, nel senso che per tali Certificati viene liquidato, al più, l’importo di liquida- zione massimo stabilito nel Regolamento ovvero, qualo- ra applicabile, il cap, considerato il multiplo. In con- fronto ad un investimento diretto nel sottostante l’importo di liquidazione ha quindi un plafond verso l’alto.

Nei Certificati con importo minimo di liquida- zione condizionato, i Certificati sono liquidati con un importo definito più in dettaglio nel Regolamento, che può corrispondere al valore nominale o al prezzo base del sottostante moltiplicato per un determinato fattore di liquidazione minimo o per un importo di liquidazione minimo [a1] specificato nel Regolamento. La liquidazio- ne presuppone che si sia avverata una determinata con- dizione in riferimento all’andamento del sottostante o altra condizione, come specificato nel Regolamento.

Inoltre, il Regolamento può prevedere che, ad esempio in caso di raggiungimento di determinate soglie di quotazione alle date di valutazione, o anche in modo incondizionato, siano pagati ammontari definiti più dettagliatamente nel Regolamento.

Un rimborso anticipato dei Certificati può a- versi, ad esempio, qualora ad una delle date di valuta- zione fissate nel Regolamento il livello del sottostante raggiunga, od eventualmente superi, una determinata soglia.

Informazioni sul sottostante

Descrizione del sottostante

Il Sottostante dei Certificati che possono essere emessi in conformità con il presente Prospetto di Base può essere dato da; azioni, titoli rappresentativi di azioni, indici, metalli preziosi, metalli pesanti, materie prime, contratti future, Exchange Traded Funds (ETF), tassi di cambio, tassi di interesse nonché basket costituiti di una o più tipologie dei suddetti sottostanti. In caso di Certi- ficato su basket, "componente del basket" indica un'a- zione od un titolo o un'altra componente del basket; ogni componente del basket costituisce il sottostante. In caso di Certificati su indice “componente dell'indice” designa un’azione o un altro titolo, di cui si compone l’indice de quo. Il sottostante è indicato nelle Condizio- ni Definitive.

Indicazioni delle fonti di informazione circa la strategia di investimento, la composizione dei baskets e i principi dell’investimento (scelta delle componenti del basket, sostituzione e rettifiche) nonché l’andamento passato e futuro del sottostante e la volatilità storica si evincono dalle Condizioni Definitive.

Sconvolgimento di mercato e Rettifiche

La definizione di sconvolgimento di mercato,, rettifiche e provvedimenti correttivi in caso di sconvolgimento di mercato in relazione al sottostante sono contenute nel Regolamento.

Tasso di cambio

Nella misura in cui il sottostante, singole componenti del basket o eventuali importi da pagarsi dall'Emittente siano espressi in valuta diversa da quella della valuta di negoziazione, la conversione di tale valuta avviene secondo il procedimento, stabilito nel Regolamento, per la conversione della valuta del sottostante nella valuta di negoziazione.

Se i Certificati sono del tipo quanto, cioè un Certificato con garanzia contro perdite valutarie, il prez- zo del sottostante è espresso e liquidato nella valuta di negoziazione o in una valuta indicata nelle Condizioni Definitive. In tal caso, durante la vita del Certificato, il rischio di cambio del sottostante o della componente del basket aventi valuta diversa dalla valuta di negoziazione è escluso, sia per la fissazione di prezzi bid e ask sia per i pagamenti. In tale ipotesi, non vi sarà una conversione

entri in possesso del Prospetto di Base o di parti dello stesso è tenuto ad informarsi personalmente sull'esisten- za di eventuali restrizioni e a rispettarle. I potenziali acquirenti di Certificati dovrebbero accertarsi presso i propri consulenti legali se l'eventuale acquisto di Certi- ficati è consentito nel loro caso specifico oppure se ciò è soggetto a restrizioni.

al tasso di cambio in vigore. In alternativa, nel caso di Certificati quanto, la conversione del sottostante secon- do un certo rapporto (ad. es. 1 unità della valuta di ne- goziazione o della valuta del sottostante in EUR 1,00) può essere determinata nelle Condizioni Definitive.

Condizioni dell'Offerta

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

I Certificati possono prevedere un periodo di sottoscrizione fisso, laddove l'Emittente si riserva il diritto di chiusura anticipata. In principio, i Certificati possono essere acquistati sino alla data di valutazione ovvero in caso di Certificati open end fino alla disdetta dei Certificati da parte dell’Emittente.

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

Nelle Condizioni Definitive sono inoltre conte- nute le indicazioni sull'agente(i) di pagamento e di de- posito ed eventuali ulteriori collaboratori.

Contrattazione in borsa dei Certificati

Le Condizioni Definitive specificano se, e a quali con- dizioni, vi sarà una quotazione in borsa dei Certificati.

Ulteriori informazioni

Le Condizioni Definitive forniscono inoltre dettagli sulle funzioni di eventuali terzi partecipanti all'emissio- ne, nonché sulla pubblicazione di comunicazioni relati- ve ai Certificati.

In alcuni paesi, sia la divulgazione del Prospetto di Base che delle/o delle Condizioni Definitive (inclusi i Rego- lamenti dei Certificati) che l'offerta e/o l'acquisto dei Certificati potrebbero essere soggetti ad alcune limita- zioni di legge. L'offerta o l'acquisto di Certificati 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 Certificati ivi in essere e solo qualora ciò non determini degli obblighi in capo all'Emittente che vanno

oltre quelli previsti nel Prospetto di Base. Chiunque

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Table of Contents

AVVISO n.18821 23 Ottobre 2007 SeDeX − INV. CERTIFICATES

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