Common use of Backtesting simulation Clause in Contracts

Backtesting simulation. Hypothetical characteristics of the Certificates: - Fixing Date: 19.02.2005 - Share value at the Fixing Date: EUR 24.5 - Strike: EUR 24.5 - Barrier: EUR 14.7 - Leverage Factor Up%: 100% - Leverage Factor Down%: 100% - Parity: 4.081633 - Issue Price: EUR 100 - First Observation Date: 21.08.2005 - Second Observation Date: 19.02.2006 - Third Observation Date: 21.08.2006 - Fourth Observation Date: 19.02.2007 - Fifth Observation Date: 21.08.2007 - Maturity Date: 20.02.2008 At the First Observation Date the Share value was equal to EUR 27.09, higher than the Strike. The Certificates would be settled earlier and the holders would have received EUR 108.90 per certificates. A: Bayerische Hypo- und Vereinsbank AG Fax 02/8862.2666 Tel 02/8862.2746 - 02/8862.2736 Certificates su ………….. scad. ………… emessi da Bayerische Hypo- und Vereinsbank AG (i “Certificates”) L’intermediario che detiene in custodia i Certificates per conto della propria clientela, con la presente comunica, in nome proprio e per conto della suddetta propria clientela, la volontà di rinuncia all’esercizio dei diritti garantiti dal Certificates come da indicazione contenuta nei Terms & Conditions dei Certificates. Codice ISIN dei Certificates per i quali rinuncia, per conto della propria clientela, all’esercizio dei Certificates a scadenza: Numero di Certificates per i quali rinuncia, per conto della propria clientela, all’esercizio dei Certificates a scadenza: Il sottoscritto è consapevole che la presente dichiarazione di rinuncia all’esercizio a scadenza non è valida qualora non siano rispettati i requisiti indicati nei Terms & Conditions dei Certificates. Questo vale anche qualora la dichiarazione non dovesse essere consegnata in tempo utile a Bayerische Hypo- und Vereinsbank AG. Luogo Data Firma (firme) del legale rappresentante dell’intermediario

Backtesting simulation. Hypothetical characteristics of the Certificates: - Fixing Date: 19.02.2005 24.01.2005 - Share value at the Fixing Date: EUR 24.5 6.9646 - Strike: EUR 24.5 6.9646 - Barrier: EUR 14.7 4.17876 - Leverage Factor Up%: 100% - Leverage Factor Down%: 100% - Parity: 4.081633 14.3583264 - Issue Price: EUR 100 - First Observation Date: 21.08.2005 27.07.2005 - Second Observation Date: 19.02.2006 24.01.2006 - Third Observation Date: 21.08.2006 27.07.2006 - Fourth Observation Date: 19.02.2007 24.01.2007 - Fifth Observation Date: 21.08.2007 27.07.2007 - Maturity Date: 20.02.2008 25.01.2008 At the First Fourth Observation Date the Share value was equal to EUR 27.098.063, higher than the Strike. The Certificates would be settled earlier and the holders would have received EUR 108.90 132.40 per certificates. A: Bayerische Hypo- und Vereinsbank AG Fax 02/8862.2666 Tel 02/8862.2746 - 02/8862.2736 Certificates su ………….. scad. ………… emessi da Bayerische Hypo- und Vereinsbank AG (i “Certificates”) L’intermediario che detiene in custodia i Certificates per conto della propria clientela, con la presente comunica, in nome proprio e per conto della suddetta propria clientela, la volontà di rinuncia all’esercizio dei diritti garantiti dal Certificates come da indicazione contenuta nei Terms & Conditions dei Certificates. Codice ISIN dei Certificates per i quali rinuncia, per conto della propria clientela, all’esercizio dei Certificates a scadenza: Numero di Certificates per i quali rinuncia, per conto della propria clientela, all’esercizio dei Certificates a scadenza: Il sottoscritto è consapevole che la presente dichiarazione di rinuncia all’esercizio a scadenza non è valida qualora non siano rispettati i requisiti indicati nei Terms & Conditions dei Certificates. Questo vale anche qualora la dichiarazione non dovesse essere consegnata in tempo utile a Bayerische Hypo- und Vereinsbank AG. Luogo Data Firma (firme) del legale rappresentante dell’intermediariodell’intermediario In the near future, with the approval of the law proposal No. 1762 of 4 October 2006, currently under discussion in the Parliament, the Italian Government could be authorised to introduce a fixed withholding tax on any capital gains and financial incomes not exceeding 20 per cent, which may impact upon the tax regime of the Certificates. The information set out hereafter summarises tax treatment of the purchase, holding, sale and exercise of the Certificates by investors who are individuals resident in Italy, and do not run a commercial enterprise, in accordance with Italian tax legislation. Pursuant to Article 67 of Presidential Decree No. 917 of 22 December 1986 and Legislative Decree No. 461 of 21 November 1997, as subsequently amended, capital gains and other revenues not produced in the course of running commercial enterprises and received by individuals resident in Italy and by certain other subjects (entities, associations and simple non-commercial companies, including no profit entities) following the sale or the exercise of the Certificates are subject to a 12.5% substitute tax (imposta sostitutiva). The recipient may opt for three different taxation criteria: (1) the tax declaration regime (regime della dichiarazione): each capital gain or revenue earned during the year, net of any liabilities and capital losses of the same kind, is specified in the investor’s tax return. The 12.5% substitute tax will therefore be chargeable on net capital gains realised during any given tax period and paid within the deadline established for paying income taxes. Any surplus of capital losses over capital gains may be offset against capital gains realised in any of the four succeeding tax periods. The tax declaration regime is compulsory in cases where the subject fails to choose one of the two systems referred to hereafter in points (2) and (3); (2) the non-discretionary investment portfolio regime (regime del risparmio amministrato): if the investor opts for this regime, the substitute tax is determined and paid at the time of each sale or exercise of the Certificates by the authorised intermediary resident in Italy, with whom the Certificates have been deposited for safekeeping or for administration, on behalf of the Security holder for each capital gain effectively produced. Where a capital loss results from a sale or an exercise of the Certificates, such loss may be deducted from capital gains of the same kind, realised in the same tax period or in the following tax periods up to the fourth. If the safekeeping or administration relationship comes to an end, any capital losses may be deducted - but not beyond the fourth tax period after that in which they occurred - from capital gains produced with respect to the relationship with another intermediary for managing of portfolio. Under non-discretionary investment portfolio regime, the Security holder is not required to declare the capital gains in the annual tax return. (3) the discretionary investment portfolio regime (regime del risparmio gestito): the prerequisite to adopting this system is that an assets management assignment has been conferred on an authorised intermediary resident in Italy. Under this regime the tax is applied by the authorised intermediary, on behalf of the Security holder, at the end of any given tax period on the increase in value of the managed assets, even if it has not been realised, net of certain financial incomes. Any depreciation of the managed assets accrued at year end may be carried forward against increase in value of the managed assets accrued in any of the four succeeding tax periods. Under the discretionary investment portfolio regime, the Security holder is not required to declare the capital gains in the annual tax return. Where an Italian resident Security holder is a company or similar commercial entity, or a permanent establishment in the Republic of Italy of foreign commercial entities to which the Certificates are effectively connected, capital gains and other revenues arising from the Certificates will not be subject to imposta sostitutiva, but must be included in the relevant Security holder's income tax return and are therefore subject to Italian corporate tax.

Backtesting simulation. Hypothetical characteristics of the Certificates: - Fixing Date: 19.02.2005 - Share value at the Fixing Date: EUR 24.5 7.2622 - Strike: EUR 24.5 7.2622 - Barrier: EUR 14.7 4.35732 - Leverage Factor Up%: 100% - Leverage Factor Down%: 100% - Parity: 4.081633 13.769932 - Issue Price: EUR 100 - First Observation Date: 21.08.2005 - Second Observation Date: 19.02.2006 - Third Observation Date: 21.08.2006 - Fourth Observation Date: 19.02.2007 - - Fifth Observation Date: 21.08.2007 - Maturity Date: 20.02.2008 At the First Fourth Observation Date the Share value was equal to EUR 27.098.34, higher than the Strike. The Certificates would be settled earlier and the holders would have received EUR 108.90 133.60 per certificates. A: Bayerische Hypo- und Vereinsbank AG Fax 02/8862.2666 Tel 02/8862.2746 - 02/8862.2736 Certificates su ………….. scad. ………… emessi da Bayerische Hypo- und Vereinsbank AG (i “Certificates”) L’intermediario che detiene in custodia i Certificates per conto della propria clientela, con la presente comunica, in nome proprio e per conto della suddetta propria clientela, la volontà di rinuncia all’esercizio dei diritti garantiti dal Certificates come da indicazione contenuta nei Terms & Conditions dei Certificates. Codice ISIN dei Certificates per i quali rinuncia, per conto della propria clientela, all’esercizio dei Certificates a scadenza: Numero di Certificates per i quali rinuncia, per conto della propria clientela, all’esercizio dei Certificates a scadenza: Il sottoscritto è consapevole che la presente dichiarazione di rinuncia all’esercizio a scadenza non è valida qualora non siano rispettati i requisiti indicati nei Terms & Conditions dei Certificates. Questo vale anche qualora la dichiarazione non dovesse essere consegnata in tempo utile a Bayerische Hypo- und Vereinsbank AG. Luogo Data Firma (firme) del legale rappresentante dell’intermediario