HVB DIP 2006-Title Summaryv13.DOC - UniCredit

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Share Linked Instruments
Share Linked Instruments are debt securities which do not provide for predetermined redemption amounts and/or
interest payments. Such amounts will depend on the market value of certain reference asset(s). Therefore, redemption
amounts might be substantially less than the issue price or, as the case may be, the purchase price invested
by the Instrumentholder. If the relevant reference asset is to be delivered instead of cash redemption, the
value of such securities may also be substantially less than the issue price or, as the case may be, the purchase
price invested by the Instrumentholder and may even be zero in which case the Instrumentholder may lose his
entire investment. In case of Pfandbriefe the redemption amount may not be linked to the market value of a share
or another reference asset. However, interest may be linked to a share. To such extent this paragraph also applies
to Pfandbriefe.
Share Linked Instruments are not in any way sponsored, endorsed, sold or promoted by the issuer of the reference
asset and such issuer makes no warranty or representation whatsoever, express or implied, as to the future
performance of the reference asset. Furthermore, the issuer of the reference asset does not assume any obligations
to take the interests of the Issuer or those of the Instrumentholders into consideration for any reason. The
issuer of the reference asset will not receive any of the proceeds of the offering of the Instruments made hereby
and is responsible for, and has participated in, the determination of the timing of, prices for or quantities of, the
Instruments. The investment in the Instruments does not result in any right to receive information from the issuer
of the reference asset, to exercise voting rights or to receive distributions on the reference asset.
Credit Linked Notes
In the case of an early redemption of Credit Linked Notes due to the occurrence of a credit event, the price of the
obligations of the Reference Entity may be significantly lower than the initial prices of the obligations of the
Reference Entity.
In purchasing Credit Linked Notes investors will have credit exposures to both the Issuer and the Reference Entities
and their obligations. As will be set out more fully in the relevant Final Terms the Credit Linked Notes may
be linked to the performance and creditworthiness of one or more Reference Entities and their obligations. An
investment in such Credit Linked Notes is speculative and volatile and involves a high degree of risk. In certain
circumstances, the Credit Linked Notes may cease to bear interest and, on redemption, holders of the Credit
Linked Notes may be repaid none or only a proportion of their original investment.
For Credit Linked Notes that are physically settled, holders may receive in lieu of any payment of principal, certain
obligations of the Reference Entities which may have a market value substantially less than that of the initial
investment of such holder. Investors should note that they may be required to take delivery of these obligations
and should ensure that they have the legal capacity to receive such obligations on purchasing the Credit Linked
Notes. The obligations may be denominated in a currency other than the Credit Linked Notes and the redemption
amount with respect to a Credit Linked Note will be adversely affected by any reduction in the value of such
currency relative to the currency of the Credit Linked Notes. Any relevant tax costs of transfer payable in respect
of the delivery of such obligations will be for the account of the Noteholders.
Neither the Issuer, the Dealer or any of their respective affiliates make any representation or give any warranty
whatsoever with respect to the Reference Entities, including its creditworthiness, either at the time of issue of the
Credit Linked Notes or at any time thereafter. Each prospective investor should inform itself about and evaluate
the nature and financial condition of other parties involved in the issue, including each Reference Entity.
The Issuer and any member of the HVB Group may be involved in trading transactions with respect the obligations
of a Reference Entity in its normal course of business. In addition, the Issuer may hedge itself for protection
against the risks which arise in connection with issue of the Notes by entering into hedging transactions in
relation to the obligations of a Reference Entity. Both activities may have impact on the price of the obligations
of a Reference Entity. In particular, it cannot be excluded that the entering into or the termination of such hedging
transactions may have a negative effect on the price of the Notes or on the amount of the principal and/or the
interest payable with respect of the Notes.
None of the Issuer, the Dealer or any of their respective affiliates makes any representation as to the Reference
Entity. Any of such persons may have acquired, or during the term of the Notes may acquire, non public information
with respect to the Reference Entity that is or may be material in the context of the Credit Linked Notes.
The issue of Credit Linked Notes will not create any obligation on the part of any such persons to disclose to the
Noteholders or any other party such information (whether or not confidential).
Investors should appreciate that they cannot rely, and will not at any time in the future be able to rely, on the
Issuer, the Dealer or any of their respective affiliates to provide them with any information relating to, or to keep
under review on their behalf, the business, financial condition, prospects, creditworthiness, status or affairs of the
Reference Entities to conduct any investigation or due diligence with respect to the Reference Entities.