INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 12:19 – eprint6 – 4247 Section 08
Additional Terms and Conditions for Commodity Linked Notes
Fallback)) calculate the Commodity Reference Price using in lieu of the published level for that
Commodity Index, the level for that Commodity Index as at the relevant determination date as determined
by the Calculation Agent in accordance with the formula for and method of calculating that Commodity
Index last in effect prior to the relevant Index Adjustment Event, but using only those futures contracts that
comprised that Commodity Index immediately prior to the relevant Index Adjustment Event (other than
those futures contracts that have ceased to be listed on any relevant exchange).
5. Consequences of an Additional Disruption Event in respect of a Commodity Index
(a)
Following the determination by the Calculation Agent that an Additional Disruption Event
has occurred in respect of a Commodity Index, the Issuer in its sole and absolute discretion
may take the action described in (i) or (ii) below:
(i)
(ii)
require the Calculation Agent to determine in its sole and absolute discretion the
appropriate adjustment, if any, to be made to any of the other terms of the Terms and
Conditions and/or the applicable Final Terms to account for the Additional Disruption
Event and determine the effective date of that adjustment; or
give notice to Noteholders in accordance with Condition 14 and redeem all, but not
less than all, of the Notes, each nominal amount of Notes equal to the Specified
Denomination being redeemed at the Early Redemption Amount.
(b)
(c)
Upon the occurrence of an Additional Disruption Event, the Issuer shall give notice as soon
as practicable to the Noteholders in accordance with Condition 14 stating the occurrence of
the Additional Disruption Event giving details thereof and the action proposed to be taken in
relation thereto provided that any failure to give, or non-receipt of, such notice will not affect
the validity of the Additional Disruption Event.
The following terms and expressions shall have the following meanings:
“Additional Disruption Event” means any of a Change in Law, a Hedging Disruption, and/or an
Increased Cost of Hedging (together the “Additional Disruption Events”).
“Change in Law” means that, on or after the Trade Date (i) due to the adoption of or any change in
any applicable law or regulation (including, without limitation, any tax law), or (ii) due to the
promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with
competent jurisdiction of any applicable law or regulation (including any action taken by a taxing
authority), the Calculation Agent determines in good faith that (A) it has become illegal to hold, acquire or
dispose of any relevant currency or asset, or (B) the Issuer or any affiliate(s) of the Issuer or any entity (or
entities) acting on behalf of the Issuer engaged in any underlying or hedging transactions in respect of the
Issuer’s obligations under the Notes will incur a materially increased cost in performing its obligations in
relation to the Notes (including, without limitation, due to any increase in tax liability, decrease in tax
benefit, or other adverse effect on its tax position).
“Hedging Disruption” means that the Issuer or any entity (or entities) acting on behalf of the Issuer
engaged in any underlying or hedging transactions in respect of the Issuer’s obligations in relation to the
Notes is unable, after using commercially reasonable efforts, to (i) acquire, establish, re-establish,
substitute, maintain, unwind, or dispose of any transaction(s) or asset(s) it deems necessary to hedge the
commodity or other price risk of the Issuer issuing and performing its obligations with respect to or in
connection with the relevant Notes, or (ii) realize, recover, or remit the proceeds of any such transaction(s)
or asset(s).
“Increased Cost of Hedging” means that the Issuer and/or any of its Affiliates or agents acting on
its behalf would incur a materially increased (as compared with circumstances existing on the Trade Date)
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