INDEX OF DEFINED TERMS - Banca di Legnano

Level: 2 – From: 2 – Wednesday, July 21, 2010 – 11:55 – eprint6 – 4247 Section 02
Risk Factors
Factors affecting the performance of Shares may adversely affect the value of the Notes. The
performance of Shares is dependent upon macroeconomic factors, such as interest and price levels on the
capital markets, currency developments, political factors, and company-specific factors such as earnings
position, market position, risk situation, shareholder structure, and distribution policy. These factors are not
within the Issuer’s control and may result in a decline in the value of the Notes.
Noteholders have no claim against the issuer of the relevant Share(s) or recourse to the Shares.
Share Linked Notes do not represent a claim against or an investment in any issuer of the relevant Share(s)
and investors will not have any right of recourse under the Share Linked Notes to any such company or the
Shares. Share Linked Notes are not in any way sponsored, endorsed, or promoted by any issuer of the
relevant Share(s) and such companies have no obligation to take into account the consequences of their
actions for any Noteholders. Accordingly, the issuer of a Share may take any actions in respect of such
Share without regard to the interests of the investors in the Share Linked Notes, and any of these actions
could adversely affect the market value of the Share Linked Notes.
Determinations made by the Calculation Agent in respect of Potential Adjustment Events, Merger
Events, Tender Offers, De-listing, Nationalizations, Insolvencies, and Additional Disruption Events may
have an adverse effect on the value of the Notes. Upon determining that a Potential Adjustment Event,
Merger Event, Tender Offer, De-listing, Nationalization, Insolvency, or Additional Disruption Event has
occurred in relation to an underlying Share or Share Issuer, the Calculation Agent has broad discretion to
make certain determinations to account for such event including to (i) make adjustments to the terms of the
Notes and/or (ii) (in the case of a Merger Event, Tender Offer, De-listing, Nationalization, Insolvency, or
an Additional Disruption Event) cause early redemption of the Notes, any of which determinations may
have an adverse effect on the value of the Notes.
Potential Adjustment Events include (a) a sub-division, consolidation, or re-classification of the
Shares, (b) an extraordinary dividend, (c) a call of the Shares that are not fully paid, (d) a repurchase by
the issuer, or an affiliate thereof, of the Shares, (e) a separation of rights from the Shares, or (f) any event
having a dilutive or concentrative effect on the value of the Shares. Additional Disruption Events include
(a) a change in applicable law since the Issue Date that makes it illegal to hold, acquire or dispose of the
Shares or more expensive for the Issuer to hedge its obligations under the relevant Notes or (b) if specified
to be applicable in the applicable Final Terms, (i) an insolvency filing by or on behalf of any issuer of the
relevant Share(s) or (ii) Hedging Disruption.
Noteholders may receive physical delivery of Shares in lieu of payment of cash amounts. Where
the Share Linked Notes include the right of the Issuer, subject to the fulfillment of a particular condition,
to redeem the Share Linked Notes at their maturity by delivering Shares to the investor, the investors will
receive such Shares rather than a monetary amount upon maturity. Noteholders will, therefore, be exposed
to the issuer of such Shares and the risks associated with such Shares. The investor should not assume that
he or she will be able to sell such Shares for a specific price after the redemption of the Notes, and in
particular not for the purchase price of the Share Linked Notes. Under certain circumstances the Shares
may only have a very low value or may, in fact, be worthless, in which case see “Investors risk losing all
of their investment in the Notes” above. Noteholders may also be subject to certain documentary or stamp
taxes in relation to the delivery and/or disposal of such Shares.
Noteholders will have no voting rights or right to receive dividends or distributions in respect of
the relevant Shares. Except as provided in the relevant Conditions in relation to Physical Delivery Notes,
Noteholders of Share Linked Notes will not have voting rights or rights to receive dividends or
distributions or any other rights with respect to the relevant Shares to which such Notes relate. As a result,
the return on the Notes may not reflect the return an investor would realize if the investor actually owned
those relevant Shares and received the dividends paid or other distributions made in connection with them.
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